Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

The following tables summarize total revenues as presented in the Unaudited Consolidated Statements of Income and the related amounts that are from contracts with customers within the scope of Topic 606. As shown below, a substantial portion of our revenues are specifically excluded from the scope of Topic 606.


For the three months ended September 30,	2020		2019
(Dollars in thousands)	Revenue (1)	ASC 606 Revenue (2)	Revenue (1)	ASC 606 Revenue (2)
Net interest income	$31,654	$—	$32,978	$—
Noninterest income:
Asset-based wealth management revenues	8,786	8,786	9,013	9,013
Transaction-based wealth management revenues	168	168	140	140
Total wealth management revenues	8,954	8,954	9,153	9,153
Mortgage banking revenues	12,353	—	4,840	—
Card interchange fees	1,161	1,161	1,099	1,099
Service charges on deposit accounts	598	598	939	939
Loan related derivative income	1,264	—	1,407	—
Income from bank-owned life insurance	567	—	569	—
Net realized losses on securities	—	—	—	—
Other income	571	491	335	323
Total noninterest income	25,468	11,204	18,342	11,514
Total revenues	$57,122	$11,204	$51,320	$11,514

(1)As reported in the Consolidated Statements of Income.

(2)Revenue from contracts with customers in scope of ASC 606.



For the nine months ended September 30,	2020		2019
(Dollars in thousands)	Revenue (1)	ASC 606 Revenue (2)	Revenue (1)	ASC 606 Revenue (2)
Net interest income	$95,201	$—	$101,420	$—
Noninterest income:
Asset-based wealth management revenues	25,297	25,297	27,075	27,075
Transaction-based wealth management revenues	951	951	879	879
Total wealth management revenues	26,248	26,248	27,954	27,954
Mortgage banking revenues	33,300	—	11,126	—
Card interchange fees	3,139	3,139	3,114	3,114
Service charges on deposit accounts	1,975	1,975	2,743	2,743
Loan related derivative income	3,818	—	2,877	—
Income from bank-owned life insurance	1,922	—	1,784	—
Net realized losses on securities	—	—	(80)	—
Other income	1,313	1,026	944	917
Total noninterest income	71,715	32,388	50,462	34,728
Total revenues	$166,916	$32,388	$151,882	$34,728

(1)As reported in the Consolidated Statements of Income.

(2)Revenue from contracts with customers in scope of ASC 606.

The Corporation recognizes revenue that is transactional in nature and such revenue is earned at a point in time. Revenue that is recognized at a point in time includes card interchange fees (fee income related to debit card transactions), ATM fees, wire transfer fees, overdraft charge fees, and stop-payment and returned check fees. Such revenue is derived from transactional information and is recognized as revenue immediately as the transactions occur or upon providing the service to complete the customer’s transaction.

The Corporation recognizes revenue over a period of time, generally monthly, as services are performed and performance obligations are satisfied. Such revenue includes wealth management revenues and service charges on deposit accounts. Wealth management revenues are categorized as either asset-based revenues or transaction-based revenues. Asset-based revenues include trust and investment management fees that are earned based upon a percentage of asset values under administration. Transaction-based revenues include financial planning fees, tax preparation fees, commissions and other service fees. Fee revenue from service charges on deposit accounts represent service charges assessed to customers who hold deposit accounts at the Bank.

The following table presents revenue from contracts with customers based on the timing of revenue recognition:



(Dollars in thousands)	Three Months		Nine Months
Periods ended September 30,	2020	2019	2020	2019
Revenue recognized at a point in time:
Card interchange fees	$1,161	$1,099	$3,139	$3,114
Service charges on deposit accounts	447	728	1,488	2,109
Other income	441	268	895	771
Revenue recognized over time:
Wealth management revenues	8,954	9,153	26,248	27,954
Service charges on deposit accounts	151	211	487	634
Other income	50	55	131	146
Total revenues from contracts in scope of Topic 606	$11,204	$11,514	$32,388	$34,728

Receivables for revenue from contracts with customers primarily consist of amounts due for wealth management services performed for which the Corporation’s performance obligations have been fully satisfied. Receivables amounted to $4.3 million at September 30, 2020, compared to $4.5 million at December 31, 2019 and were included in other assets in the Unaudited Consolidated Balance Sheets.

Deferred revenues, which are considered contract liabilities under Topic 606, represent advance consideration received from customers for which the Corporation has a remaining performance obligation to fulfill. Contract liabilities are recognized as revenue over the life of the contract as the performance obligations are satisfied. The balances of contract liabilities were insignificant at both September 30, 2020 and December 31, 2019 and were included in other liabilities in the Unaudited Consolidated Balance Sheets.

For commissions and incentives that are in-scope of Topic 606, such as those paid to employees in our wealth management services and commercial banking segments in order to obtain customer contracts, contract cost assets are established. The contract cost assets are capitalized and amortized over the estimated useful life that the asset is expected to generate benefits. The carrying value of contract cost assets amounted to $1.2 million at September 30, 2020, compared to $905 thousand at December 31, 2019 and were included in other assets in the Unaudited Consolidated Balance Sheets.