Revenue from Contracts with Customers

9 Months Ended

Sep. 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 nine-month periods ended September 30, 2019 and September 30, 2018.



	Three Months Ended September 30, 2019
Revenue by Operating Segment (in thousands)	PNB			GFSC		All Other			Total
Income from fiduciary activities
Personal trust and agency accounts	$	2,151		$	—	$	—		$	2,151
Employee benefit and retirement-related accounts	1,753			—		—			1,753
Investment management and investment advisory agency accounts	2,547			—		—			2,547
Other	391			—		—			391
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	1,911			—		—			1,911
Demand deposit account (DDA) charges	784			—		—			784
Other	169			—		—			169
Other service income ⁽¹⁾
Credit card	586			1		—			587
HELOC	71			—		1			72
Installment	62			—		(88		)	(26		)
Real estate	3,226			—		(1		)	3,225
Commercial	262			—		140			402
Debit card fee income	5,313			—		—			5,313
Bank owned life insurance income ⁽²⁾	1,021			—		86			1,107
ATM fees	482			—		—			482
OREO valuation adjustments ⁽²⁾	(41		)	—		—			(41		)
Loss on sale of OREO, net	(53		)	—		—			(53		)
Net gain on sale of investment securities ⁽²⁾	186			—		—			186
Gain on equity securities, net ⁽²⁾	240			—		3,095			3,335
Other components of net periodic pension benefit income ⁽²⁾	1,147			13		23			1,183
Miscellaneous ⁽³⁾	2,634			45		(21		)	2,658
Total other income	$	24,842		$	59	$	3,235		$	28,136

⁽¹⁾Of the $4.3 million of aggregate revenue included within "Other service income", approximately $1.3 million is within the scope of ASC 606, with the remaining $3.0 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 scope of ASC 606.



	Three Months Ended September 30, 2018
Revenue by Operating Segment (in thousands)	PNB			GFSC		All Other			Total
Income from fiduciary activities
Personal trust and agency accounts	$	1,994		$	—	$	—		$	1,994
Employee benefit and retirement-related accounts	1,703			—		—			1,703
Investment management and investment advisory agency accounts	2,353			—		—			2,353
Other	368			—		—			368
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	1,926			—		—			1,926
Demand deposit account (DDA) charges	764			—		—			764
Other	171			—		—			171
Other service income ⁽¹⁾
Credit card	592			6		—			598
HELOC	128			—		—			128
Installment	60			—		6			66
Real estate	2,145			—		—			2,145
Commercial	291			—		18			309
Debit card fee income	4,352			—		—			4,352
Bank owned life insurance income ⁽²⁾	960			—		1,625			2,585
ATM fees	500			—		—			500
OREO valuation adjustments ⁽²⁾	(78		)	—		1			(77		)
Gain (loss) on sale of OREO, net	36			—		(117		)	(81		)
Gain (loss) on equity securities, net ⁽²⁾	228			—		(139		)	89
Other components of net periodic pension benefit income ⁽²⁾	1,653			18		34			1,705
Miscellaneous ⁽³⁾	2,413			39		14			2,466
Total other income	$	22,559		$	63	$	1,442		$	24,064

⁽¹⁾Of the $3.2 million of aggregate revenue included within "Other service income", approximately $1.1 million is within the scope of ASC 606, with the remaining $2.1 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 $2.5 million, all of which are within scope of ASC 606.



	Nine Months Ended September 30, 2019
Revenue by Operating Segment (in thousands)	PNB			GFSC		All Other			Total
Income from fiduciary activities
Personal trust and agency accounts	$	6,757		$	—	$	—		$	6,757
Employee benefit and retirement-related accounts	5,185			—		—			5,185
Investment management and investment advisory agency accounts	7,421			—		—			7,421
Other	1,137			—		—			1,137
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	5,241			—		—			5,241
Demand deposit account (DDA) charges	2,336			—		—			2,336
Other	501			—		—			501
Other service income ⁽¹⁾
Credit card	1,785			5		—			1,790
HELOC	282			—		4			286
Installment	203			—		(83		)	120
Real estate	7,890			—		(10		)	7,880
Commercial	901			—		141			1,042
Debit card fee income	14,909			—		—			14,909
Bank owned life insurance income ⁽²⁾	3,116			—		283			3,399
ATM fees	1,382			—		—			1,382
OREO valuation adjustments ⁽²⁾	(123		)	—		—			(123		)
Loss on sale of OREO, net	(84		)	—		(140		)	(224		)
Net loss on sale of investment securities ⁽²⁾	(421		)	—		—			(421		)
Gain on equity securities, net ⁽²⁾	972			—		4,337			5,309
Other components of net periodic pension benefit income ⁽²⁾	3,440			40		69			3,549
Miscellaneous ⁽³⁾	5,394			97		2			5,493
Total other income	$	68,224		$	142	$	4,603		$	72,969

⁽¹⁾Of the $11.1 million of aggregate revenue included within "Other service income", approximately $4.0 million is within the scope of ASC 606, with the remaining $7.1 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 $5.5 million, all of which are within scope of ASC 606.



	Nine Months Ended September 30, 2018
Revenue by Operating Segment (in thousands)	PNB			GFSC		All Other			Total
Income from fiduciary activities
Personal trust and agency accounts	$	6,383		$	—	$	—		$	6,383
Employee benefit and retirement-related accounts	5,003			—		—			5,003
Investment management and investment advisory agency accounts	6,936			—		—			6,936
Other	1,157			—		—			1,157
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	5,608			—		—			5,608
Demand deposit account (DDA) charges	2,503			—		—			2,503
Other	498			—		—			498
Other service income ⁽¹⁾
Credit card	1,652			20		—			1,672
HELOC	345			—		—			345
Installment	197			—		6			203
Real estate	6,748			—		—			6,748
Commercial	847			—		1,075			1,922
Debit card fee income	12,736			—		—			12,736
Bank owned life insurance income ⁽²⁾	2,822			—		1,803			4,625
ATM fees	1,534			—		—			1,534
OREO valuation adjustments ⁽²⁾	(179		)	—		(219		)	(398		)
Gain on sale of OREO, net	1,442			—		2,651			4,093
Net loss on sale of investment securities ⁽²⁾	(2,271		)	—		—			(2,271		)
Gain on equity securities, net ⁽²⁾	520			—		4,113			4,633
Other components of net periodic pension benefit income ⁽²⁾	4,957			56		102			5,115
Miscellaneous ⁽³⁾	5,106			59		(1		)	5,164
Total other income	$	64,544		$	135	$	9,530		$	74,209

⁽¹⁾Of the $10.9 million of aggregate revenue included within "Other service income", approximately $4.4 million is within the scope of ASC 606, with the remaining $6.5 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 $5.2 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.