Revenue from Contracts with Customers

January 1, 2018,

the Company adopted ASU

2014

09,

Revenue from Contracts with Customers - Topic

606

and all subsequent ASUs that modified ASC

606,

Revenue from Contracts with Customers. The Company adopted ASC

606

using the modified retrospective method applied to those contracts that were

not

completed as of

January 1, 2018.

The new standard did

not

materially impact the timing or measurement of the Company’s revenue recognition as it is consistent with the Company’s existing accounting for contracts within the scope of the new standard. There was

cumulative effect adjustment to retained earnings as a result of adopting this new standard.

The following is a summary of revenue from contracts with customers that are in-scope and

not

in-scope under Topic

606:

	Three months Ended September 30,				Nine months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Non-interest income, in-scope (1) :
Fees and service charges on deposit accounts	$	2,027	$	2,286	$	6,421	$	7,043
Wealth management fees		1,528		353		4,252		1,906
Other service fees (2)		3,376		3,863		10,140		10,212
Total in-scope noninterest income		6,931		6,502		20,813		19,161

Noninterest income, not in-scope (3)		904		6,459		99		6,670
Total noninterest income	$	7,835	$	12,961	$	20,912	$	25,831

(

) There were

adjustments to the Company's financial statements recorded as a result of the adoption of ASC

606.

For comparability, the Company has adjusted prior period amounts to conform to the periods presentation.

(

) Other service fees comprise of fees related to letters of credit, wire fees, fees on foreign exchange transactions and other immaterial individual revenue streams.

(

) These amounts primarily represent revenue from contracts with customers that are out of the scope of ASC

606.

The major revenue streams by fee type that are within the scope of ASC

606

presented in the above tables are described in additional detail below:

Fees and Services Charges on Deposit Accounts

Fees and service charges on deposit accounts include charges for analysis, overdraft, cash checking, ATM, and safe deposit activities executed by our deposit clients, as well as interchange income earned through card payment networks for the acceptance of card based transactions. Fees earned from our deposit clients are governed by contracts that provide for overall custody and access to deposited funds and other related services, and can be terminated at will by either party. Fees received from deposit clients for the various deposit activities are recognized as revenue once the performance obligations are met. The adoption of ASU

2014

had

impact to the recognition of fees and service charges on deposit accounts.

Wealth Management Fees

The Company employs financial consultants to provide investment planning services for customers including wealth management services, asset allocation strategies, portfolio analysis and monitoring, investment strategies, and risk management strategies. The fees the Company earns are variable and are generally received monthly. The Company recognizes revenue for the services performed at quarter end based on actual transaction details received from the broker dealer the Company engages.

Practical Expedients and Exemptions

The Company applies the practical expedient in ASC

606

and does

not

disclose the value of unsatisfied performance obligations as the Company’s contracts with customers generally have a term that is less than

one

year, are open-ended with a cancellation period that is less than

one

year, or allow the Company to recognize revenue in the amount to which the Company has the right to invoice.

In addition, given the short term nature of the Company’s contracts, the Company also applies the practical expedient in ASC

606

and does

not

adjust the consideration from customers for the effects of a significant financing component, if at contract inception, the period between when the entity transfers the goods or services and when the customer pays for that good or service is

one

year or less.