Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 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 and six-month periods ended June 30, 2019 and June 30, 2018.



	Three Months Ended June 30, 2019
Revenue by Operating Segment (in thousands)	PNB			GFSC		All Other			Total
Income from fiduciary activities
Personal trust and agency accounts	$	2,305		$	—	$	—		$	2,305
Employee benefit and retirement-related accounts	1,762			—		—			1,762
Investment management and investment advisory agency accounts	2,493			—		—			2,493
Other	375			—		—			375
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	1,714			—		—			1,714
Demand deposit account (DDA) charges	772			—		—			772
Other	169			—		—			169
Other service income ⁽¹⁾
Credit card	602			1		—			603
HELOC	116			—		(1		)	115
Installment	67			—		9			76
Real estate	2,907			—		(9		)	2,898
Commercial	347			—		1			348
Debit card fee income	5,227			—		—			5,227
Bank owned life insurance income ⁽²⁾	1,197			—		89			1,286
ATM fees	460			—		—			460
OREO valuation adjustments ⁽²⁾	(55		)	—		—			(55		)
Loss on sale of OREO, net	(19		)	—		(140		)	(159		)
Net loss on sale of investment securities ⁽²⁾	(607		)	—		—			(607		)
Gain on equity securities, net ⁽²⁾	143			—		89			232
Other components of net periodic pension benefit income ⁽²⁾	1,146			14		23			1,183
Miscellaneous ⁽³⁾	1,553			36		22			1,611
Total other income	$	22,674		$	51	$	83		$	22,808

⁽¹⁾Of the $4.0 million of aggregate revenue included within "Other service income", approximately $1.6 million is within the scope of ASC 606, with the remaining $2.4 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, and miscellaneous bank fees totaling $1.6 million, all of which are within scope of ASC 606.



	Three Months Ended June 30, 2018
Revenue by Operating Segment (in thousands)	PNB			GFSC		All Other			Total
Income from fiduciary activities
Personal trust and agency accounts	$	2,263		$	—	$	—		$	2,263
Employee benefit and retirement-related accounts	1,657			—		—			1,657
Investment management and investment advisory agency accounts	2,339			—		—			2,339
Other	407			—		—			407
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	1,848			—		—			1,848
Demand deposit account (DDA) charges	813			—		—			813
Other	165			—		—			165
Other service income ⁽¹⁾
Credit card	556			7		—			563
HELOC	118			—		—			118
Installment	73			—		—			73
Real estate	2,357			—		—			2,357
Commercial	314			—		47			361
Debit card fee income	4,382			—		—			4,382
Bank owned life insurance income ⁽²⁾	940			—		91			1,031
ATM fees	510			—		—			510
OREO valuation adjustments ⁽²⁾	(71		)	—		(43		)	(114		)
Gain on sale of OREO, net	(179		)	—		32			(147		)
Net loss on the sale of investment securities ⁽²⁾	—			—		—			—
Gain on equity securities, net ⁽²⁾	380			—		968			1,348
Other components of net periodic pension benefit income ⁽²⁾	1,652			19		34			1,705
Miscellaneous ⁽³⁾	1,546			16		1			1,563
Total other income	$	22,070		$	42	$	1,130		$	23,242

⁽¹⁾Of the $3.5 million of aggregate revenue included within "Other service income", approximately $1.2 million is within the scope of ASC 606, with the remaining $2.3 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, and miscellaneous bank fees totaling $1.6 million, all of which are within scope of ASC 606.



	Six Months Ended June 30, 2019
Revenue by Operating Segment (in thousands)	PNB			GFSC		All Other			Total
Income from fiduciary activities
Personal trust and agency accounts	$	4,606		$	—	$	—		$	4,606
Employee benefit and retirement-related accounts	3,432			—		—			3,432
Investment management and investment advisory agency accounts	4,874			—		—			4,874
Other	746			—		—			746
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	3,330			—		—			3,330
Demand deposit account (DDA) charges	1,552			—		—			1,552
Other	332			—		—			332
Other service income ⁽¹⁾
Credit card	1,199			4		—			1,203
HELOC	211			—		3			214
Installment	141			—		5			146
Real estate	4,664			—		(9		)	4,655
Commercial	639			—		1			640
Debit card fee income	9,596			—		—			9,596
Bank owned life insurance income ⁽²⁾	2,095			—		197			2,292
ATM fees	900			—		—			900
OREO valuation adjustments ⁽²⁾	(82		)	—		—			(82		)
Loss on sale of OREO, net	(31		)	—		(140		)	(171		)
Net loss on sale of investment securities ⁽²⁾	(607		)	—		—			(607		)
Gain on equity securities, net ⁽²⁾	732			—		1,242			1,974
Other components of net periodic pension benefit income ⁽²⁾	2,293			27		46			2,366
Miscellaneous ⁽³⁾	2,760			52		23			2,835
Total other income	$	43,382		$	83	$	1,368		$	44,833

⁽¹⁾Of the $6.9 million of aggregate revenue included within "Other service income", approximately $2.8 million is within the scope of ASC 606, with the remaining $4.1 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, and miscellaneous bank fees totaling $2.8 million, all of which are within scope of ASC 606.



	Six Months Ended June 30, 2018
Revenue by Operating Segment (in thousands)	PNB			GFSC		All Other			Total
Income from fiduciary activities
Personal trust and agency accounts	$	4,389		$	—	$	—		$	4,389
Employee benefit and retirement-related accounts	3,300			—		—			3,300
Investment management and investment advisory agency accounts	4,583			—		—			4,583
Other	789			—		—			789
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	3,682			—		—			3,682
Demand deposit account (DDA) charges	1,739			—		—			1,739
Other	327			—		—			327
Other service income ⁽¹⁾
Credit card	1,060			14		—			1,074
HELOC	217			—		—			217
Installment	137			—		—			137
Real estate	4,603			—		—			4,603
Commercial	556			—		1,057			1,613
Debit card fee income	8,384			—		—			8,384
Bank owned life insurance income ⁽²⁾	1,862			—		178			2,040
ATM fees	1,034			—		—			1,034
OREO valuation adjustments ⁽²⁾	(101		)	—		(220		)	(321		)
Gain on sale of OREO, net	1,406			—		2,768			4,174
Net loss on sale of investment securities ⁽²⁾	(2,271		)	—		—			(2,271		)
Gain on equity securities, net ⁽²⁾	292			—		4,252			4,544
Other components of net periodic pension benefit income ⁽²⁾	3,304			38		68			3,410
Miscellaneous ⁽³⁾	2,693			20		(15		)	2,698
Total other income	$	41,985		$	72	$	8,088		$	50,145

⁽¹⁾Of the $7.6 million of aggregate revenue included within "Other service income", approximately $3.2 million is within the scope of ASC 606, with the remaining $4.4 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, and miscellaneous bank fees totaling $2.7 million, all of which are 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.