Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

All of Park's revenue from contracts with customers within the scope of ASC 606 is recognized within "Other income" in the Consolidated Condensed Statements of Income. The following table presents the Corporation's sources of other income by revenue stream and operating segment for the three-month periods ended March 31, 2019 and March 31, 2018.



	Three Months Ended March 31, 2019
Revenue by Operating Segment (in thousands)	PNB			GFSC		All Other			Total
Income from fiduciary activities
Personal trust and agency accounts	$	2,301		$	—	$	—		$	2,301
Employee benefit and retirement-related accounts	1,670			—		—			1,670
Investment management and investment advisory agency accounts	2,381			—		—			2,381
Other	371			—		—			371
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	1,616			—		—			1,616
Demand deposit account (DDA) charges	780			—		—			780
Other	163			—		—			163
Other service income ⁽¹⁾
Credit card	597			3		—			600
HELOC	95			—		4			99
Installment	74			—		(4		)	70
Real estate	1,757			—		—			1,757
Commercial	292			—		—			292
Debit card fee income	4,369			—		—			4,369
Bank owned life insurance income ⁽²⁾	898			—		108			1,006
ATM fees	440			—		—			440
OREO valuation adjustments ⁽²⁾	(27		)	—		—			(27		)
Loss on sale of OREO, net	(12		)	—		—			(12		)
Gain on equity securities, net ⁽²⁾	51			—		70			121
Other components of net periodic pension benefit income ⁽²⁾	1,147			13		23			1,183
Miscellaneous ⁽³⁾	1,745			16		1,084			2,845
Total other income	$	20,708		$	32	$	1,285		$	22,025

⁽¹⁾Of the $2.8 million of aggregate revenue included within "Other service income", approximately $1.2 million is within the scope of ASC 606, with the remaining $1.6 million consisting primarily of residential real estate loan fees which are out of scope.

⁽²⁾ Not within the scope of ASC 606.

⁽³⁾ "Miscellaneous" income includes brokerage income, safe deposit box rentals, partnership investment income, and miscellaneous bank fees totaling $2.8 million. Partnership investment income of $1.6 million is out of scope of ASC 606, while the remaining $1.2 million of "Miscellaneous" income is within the scope of ASC 606.



	Three Months Ended March 31, 2018
Revenue by Operating Segment (in thousands)	PNB			GFSC		All Other			Total
Income from fiduciary activities
Personal trust and agency accounts	$	2,126		$	—	$	—		$	2,126
Employee benefit and retirement-related accounts	1,643			—		—			1,643
Investment management and investment advisory agency accounts	2,244			—		—			2,244
Other	382			—		—			382
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	1,834			—		—			1,834
Demand deposit account (DDA) charges	926			—		—			926
Other	162			—		—			162
Other service income ⁽¹⁾
Credit card	504			7		—			511
HELOC	99			—		—			99
Installment	64			—		—			64
Real estate	2,246			—		—			2,246
Commercial	242			—		1,010			1,252
Debit card fee income	4,002			—		—			4,002
Bank owned life insurance income ⁽²⁾	922			—		87			1,009
ATM fees	524			—		—			524
OREO valuation adjustments ⁽²⁾	(30		)	—		(177		)	(207		)
Gain on sale of OREO, net	1,585			—		2,736			4,321
Net loss on the sale of investment securities ⁽²⁾	(2,271		)	—		—			(2,271		)
Gain on equity securities, net ⁽²⁾	27			—		3,462			3,489
Other components of net periodic pension benefit income ⁽²⁾	1,652			19		34			1,705
Miscellaneous ⁽³⁾	1,032			4		(194		)	842
Total other income	$	19,915		$	30	$	6,958		$	26,903

⁽¹⁾Of the $4.2 million of aggregate revenue included within "Other service income", approximately $1.4 million is within the scope of ASC 606, with the remaining $2.8 million consisting primarily of residential real estate loan fees which are out of scope.

⁽²⁾ Not within the scope of ASC 606.

⁽³⁾ "Miscellaneous" income includes brokerage income, safe deposit box rentals, partnership investment income and miscellaneous bank fees totaling $0.8 million. Partnership investment expense of $0.3 million is out of scope of ASC 606, while the remaining $1.1 million "Miscellaneous" income is within the scope of ASC 606.

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

Income from fiduciary activities (Gross): Park earns fiduciary fee income and investment brokerage fees from its contracts with trust customers for various fiduciary and investment-related services. These fees are earned over time as the Company provides the contracted monthly and quarterly services and are generally assessed based on the market value of the trust assets.

Service charges on deposit accounts and ATM fees: The Corporation earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include 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 generally recognized at the end of the month, representing the period over which the Corporation satisfies the performance obligation. 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.

Other service income: Other service income includes income from (1) the sale and servicing of loans sold to the secondary market, (2) incentive income from third-party credit card issuers, and (3) loan customers for various loan-related activities and

services. These fees are generally recognized at a point in time following the completion of a loan sale or related service activity.

Debit card fee income: Park earns interchange fees from debit cardholder transactions conducted primarily through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, net of card network fees, concurrently with the transaction processing services provided to the cardholder.

Gain or loss on sale of OREO, net: 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 delivery of an executed deed. When Park finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform the buyer's obligation 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.