REVENUE FROM CONTRACTS WITH CUSTOMERS

All of the Corporation's revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. The following tables present the Corporation's non-interest income by revenue stream and reportable segment for the three and nine months ended September 30, 2019 and 2018 (in thousands). Items outside the scope of ASC 606 are noted as such.



	Three Months Ended September 30, 2019
Revenue by Operating Segment:	Core Banking			WMG		Holding Company, CFS, and CRM^(b)			Total
Non-interest income
Service charges on deposit accounts
Overdraft fees	$	959		$	—	$	—		$	959
Other	182			—		—			182
Interchange revenue from debit card transactions	1,058			—		—			1,058
WMG fee income	—			2,315		—			2,315
CFS fee and commission income	—			—		145			145
Net gains (losses) on sales of OREO	(1		)	—		—			(1		)
Net gains on sales of loans^(a)	69			—		—			69
Loan servicing fees^(a)	25			—		—			25
Net gains on sales of securities^(a)	—			—		—			—
Changes in fair value of equity investments^(a)	3			—		(13		)	(10		)
Other^(a)	269			—		(55		)	214
Total non-interest income (loss)	$	2,564		$	2,315	$	77		$	4,956



	Three Months Ended September 30, 2018
Revenue by Operating Segment:	Core Banking		WMG		Holding Company, CFS, and CRM^(b)			Total
Non-interest income
Service charges on deposit accounts
Overdraft fees	$	1,035	$	—	$	—		$	1,035
Other	196		—		—			196
Interchange revenue from debit card transactions	982		—		—			982
WMG fee income	—		2,406		—			2,406
CFS fee and commission income	—		—		120			120
Net gains (losses) on sales of OREO	123		—		—			123
Net gains on sales of loans^(a)	79		—		—			79
Loan servicing fees^(a)	22		—		—			22
Net gains on sales of securities^(a)	—		—		—			—
Changes in fair value of equity investments^(a)	2,140		—		1			2,141
Other^(a)	410		—		(133		)	277
Total non-interest income	$	4,987	$	2,406	$	(12	)	$	7,381

(a) Not within scope of ASC 606.

(b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments.



	Nine Months Ended September 30, 2019
Revenue by Operating Segment:	Core Banking			WMG		Holding Company, CFS, and CRM^(b)			Total
Non-interest income
Service charges on deposit accounts
Overdraft fees	$	2,703		$	—	$	—		$	2,703
Other	627			—		—			627
Interchange revenue from debit card transactions	3,113			—		—			3,113
WMG fee income	—			7,115		—			7,115
CFS fee and commission income	—			—		502			502
Net gains (losses) on sales of OREO	(87		)	—		—			(87		)
Net gains on sales of loans^(a)	146			—		—			146
Loan servicing fees^(a)	76			—		—			76
Net gains on sales of securities^(a)	19			—		—			19
Changes in fair value of equity investments^(a)	103			—		3			106
Other^(a)	844			—		(197		)	647
Total non-interest income	$	7,544		$	7,115	$	308		$	14,967



	Nine Months Ended September 30, 2018
Revenue by Operating Segment:	Core Banking		WMG		Holding Company, CFS, and CRM^(b)			Total
Non-interest income
Service charges on deposit accounts
Overdraft fees	$	2,939	$	—	$	—		$	2,939
Other	600		—		—			600
Interchange revenue from debit card transactions	3,013		—		—			3,013
WMG fee income	—		7,095		—			7,095
CFS fee and commission income	—		—		365			365
Net gains on sales of OREO	119		—		—			119
Net gains on sales of loans^(a)	184		—		—			184
Loan servicing fees^(a)	67		—		—			67
Net gains on sales of securities^(a)	—		—		—			—
Change in fair value of equity securities^(a)	2,148		—		17			2,165
Other^(a)	1,922		—		(288		)	1,634
Total non-interest income	$	10,992	$	7,095	$	94		$	18,181

(a) Not within scope of ASC 606.

(b) The Holding Company, CFS, and CRM column above includes amounts to eliminate transactions between segments.

A description of the Corporation's revenue streams accounted for under ASC 606 follows:

Service Charges on Deposit Accounts: The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which included services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are recognized at the time the maintenance occurs. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance.

Interchange Income from Debit Card Transactions: The Corporation earns interchange fees from debit cardholder transactions conducted through the MasterCard payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to cardholder.

WMG Fee Income (Gross): The Corporation earns wealth management fees from its contracts with customers to manage assets for investment, and/or to conduct transactions on their accounts. These fees are primarily earned over time as the Corporation provides the contracted monthly or quarterly services and are generally assessed based on a tiered scale of the market value of assets under management (AUM) at quarter-end.

CFS Fee and Commission Income (Net): The Corporation earns fees from investment brokerage services provided to its customers by a third-party service provider. The Corporation receives commissions from the third-party service provider on a monthly basis based upon customer activity for the month. The Corporation (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers. Investment brokerage fees are presented net of related costs. The Corporation also earns fees from tax services provided to its customers.

Net Gains/Losses on Sales of OREO: The Corporation records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.