Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

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, 2020 and June 30, 2019.

	Three Months Ended June 30, 2020
Revenue by Operating Segment (in thousands)	PNB		GFSC		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	2,089	$	—	$	—	$	2,089
Employee benefit and retirement-related accounts	1,819		—		—		1,819
Investment management and investment advisory agency accounts	2,515		—		—		2,515
Other	370		—		—		370
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	828		—		—		828
Demand deposit account (DDA) charges	741		—		—		741
Other	107		—		—		107
Other service income (1)
Credit card	461		2		—		463
HELOC	113		—		—		113
Installment	48		—		—		48
Real estate	7,775		—		—		7,775
Commercial	307		—		52		359
Debit card fee income	5,560		—		—		5,560
Bank owned life insurance income (2)	1,177		—		2		1,179
ATM fees	438		—		—		438
Gain on sale of OREO, net	841		—		—		841
Net gain on the sale of investment securities (2)	3,313		—		—		3,313
Loss on equity securities, net (2)	(792)		—		(185)		(977)
Other components of net periodic pension benefit income (2)	1,940		23		25		1,988
Miscellaneous (3)	1,359		37		(1)		1,395
Total other income	$	31,009	$	62	$	(107)	$	30,964

⁽¹⁾ Of the $8.8 million of aggregate revenue included within "Other service income", approximately $1.1 million is within the scope of ASC 606, with the remaining $7.7 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 $1.4 million, all of which are within scope of ASC 606.

	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
Loss on sale of OREO, net	(19)		—		(140)		(159)
Net loss on the 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)	1,498		36		22		1,556
Total other income	$	22,674	$	51	$	83	$	22,808

⁽¹⁾ Of the $4.0 million of aggregate revenue included within "Other service income", approximately $1.2 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, and miscellaneous bank fees totaling $1.6 million, all of which are within scope of ASC 606.

	Six Months Ended June 30, 2020
Revenue by Operating Segment (in thousands)	PNB		GFSC		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	4,260	$	—	$	—	$	4,260
Employee benefit and retirement-related accounts	3,735		—		—		3,735
Investment management and investment advisory agency accounts	5,157		—		—		5,157
Other	754		—		—		754
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	2,443		—		—		2,443
Demand deposit account (DDA) charges	1,502		—		—		1,502
Other	259		—		—		259
Other service income (1)
Credit card	1,057		3		—		1,060
HELOC	211		—		—		211
Installment	101		—		—		101
Real estate	10,422		—		—		10,422
Commercial	678		—		52		730
Debit card fee income	10,520		—		—		10,520
Bank owned life insurance income (2)	2,343		—		84		2,427
ATM fees	850		—		—		850
Gain on sale of OREO, net	645		—		—		645
Net gain on the sale of investment securities (2)	3,313		—		—		3,313
Loss on equity securities, net (2)	(626)		—		(1,324)		(1,950)
Other components of net periodic pension benefit income (2)	3,880		47		49		3,976
Miscellaneous (3)	2,986		44		5		3,035
Total other income	$	54,490	$	94	$	(1,134)	$	53,450

⁽¹⁾ Of the $12.5 million of aggregate revenue included within "Other service income", approximately $2.3 million is within the scope of ASC 606, with the remaining $10.2 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 $3.0 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
Loss on sale of OREO, net	(31)		—		(140)		(171)
Net loss on the 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)	2,678		52		23		2,753
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 $2.4 million is within the scope of ASC 606, with the remaining $4.5 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 $2.8 million, all of which are within 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.