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Fees and Commissions Revenue Fees and Commissions Revenue
 6 Months Ended
Jun. 30, 2019
Revenue from Contract with Customer [Abstract]  
Fees and Commissions Revenue [Text Block] Fees and Commissions Revenue

Fees and commissions revenue is generated through the sales of products, consisting primarily of financial instruments, and the performance of services for customers under contractual obligations. Revenue from providing services for customers is recognized at the time services are provided in an amount that reflects the consideration we expect to be entitled to for those services. Revenue is recognized based on the application of five steps:
•
Identify the contract with a customer
•
Identify the performance obligations in the contract
•
Determine the transaction price
•
Allocate the transaction price to the performance obligations in the contract
•
Recognize revenue when (or as) the Company satisfies a performance obligation

For contracts with multiple performance obligations, individual performance obligations are accounted for separately if the customer can benefit from the good or service on its own or with other resources readily available to the customer and the promise to transfer goods and services to the customer is separately identifiable in the contract. The transaction price is allocated to the performance obligations based on relative standalone selling prices.

Revenue is recognized on a gross basis whenever we have primary responsibility and risk in providing the services or products to our customers and have discretion in establishing the price for the services or products. Revenue is recognized on a net basis whenever we act as an agent for products or services of others. 
 
Brokerage and trading revenue includes revenues from trading, customer hedging, retail brokerage and investment banking. Trading revenue includes net realized and unrealized gains primarily related to sales of securities to institutional customers and related derivative contracts. Customer hedging revenue includes realized and unrealized changes in the fair value of derivative contracts held for customer risk management programs including credit valuation adjustments, as necessary. We offer commodity, interest rate, foreign exchange and equity derivatives to our customers. These customer contracts are offset with contracts with selected counterparties and exchanges to minimize changes in market risk from changes in commodity prices, interest rates or foreign exchange rates. Retail brokerage revenue represents fees and commissions earned on sales of fixed income securities, annuities, mutual funds and other financial instruments to retail customers. Investment banking revenue includes fees earned upon completion of underwriting and financial advisory services. Investment banking revenue also includes fees earned in conjunction with loan syndications. Insurance brokerage revenues represents fees and commissions earned on placement of insurance products with carriers for property and casualty and health coverage.
 
Transaction card revenue includes merchant discount fees and electronic funds transfer network fees, net of interchange fees paid to card issuers and assessments paid to card networks. Merchant discount fees represent fees paid by customers for account management and electronic processing of card transactions. Merchant discount fees are recognized at the time the customer’s transactions are processed or other services are performed. The Company also maintains the TransFund electronic funds transfer network for the benefit of its members, which includes the Bank. Electronic funds transfer fees are recognized as electronic transactions processed on behalf of its members. 
 
Fiduciary and asset management revenue includes fees from asset management, custody, recordkeeping, investment advisory and administration services. Revenue is recognized on an accrual basis at the time the services are performed and may be based on either the fair value of the account or the service provided.
 
Deposit service charges and fees include commercial account service charges, overdraft fees, check card fee revenue and automated service charge and other deposit service fees. Fees are recognized at least quarterly in accordance with published deposit account agreements and disclosure statements for retail accounts or contractual agreements for commercial accounts. Item charges for overdraft or non-sufficient funds items are recognized as items are presented for payment. Account balance charges and activity fees are accrued monthly and collected in arrears. Commercial account activity fees may be offset by an earnings credit based on account balances. Check card fees represent interchange fees paid by a merchant bank for transactions processed from cards issued by the Company. Check card fees are recognized when transactions are processed.  

Mortgage banking revenue includes revenues recognized in conjunction with the origination, marketing and servicing of conventional and government-sponsored residential mortgage loans. Mortgage production revenue includes net realized gains (losses) on sales of residential mortgage loans in the secondary market and the net change in unrealized gains (losses) on residential mortgage loans held for sale. Mortgage production revenue also includes changes in the fair value of derivative contracts not designated as hedging instruments related to residential mortgage loan commitments and forward sales contracts. Mortgage servicing revenue includes servicing fee income and late charges on loans serviced for others.

Fees and commissions revenue by reportable segment and primary service line is as follows for the three months ended June 30, 2019.
 
Commercial
 
Consumer
 
Wealth Management
 
Funds Management & Other3
 
Consolidated
 
Out of Scope1
 
In Scope2
Trading revenue
$
—

 
$
—

 
$
21,879

 
$
—

 
$
21,879

 
$
21,879

 
$
—

Customer hedging revenue
2,385

 
—

 
1,906

 
1,054

 
5,345

 
5,345

 
—

Retail brokerage revenue
—

 
—

 
3,914

 
(13
)
 
3,901

 
—

 
3,901

Insurance brokerage revenue
—

 
—

 
3,309

 
513

 
3,822

 
—

 
3,822

Investment banking revenue
2,548

 
—

 
3,032

 
(1
)
 
5,579

 
2,198

 
3,381

Brokerage and trading revenue
4,933

 
—

 
34,040

 
1,553

 
40,526

 
29,422

 
11,104

TransFund EFT network revenue
18,504

 
997

 
(20
)
 
—

 
19,481

 
—

 
19,481

Merchant services revenue
2,223

 
15

 
—

 
(1
)
 
2,237

 
—

 
2,237

Corporate card revenue
190

 
—

 
5

 
2

 
197

 
—

 
197

Transaction card revenue
20,917

 
1,012

 
(15
)
 
1

 
21,915

 
—

 
21,915

Personal trust revenue
—

 
—

 
21,215

 
1

 
21,216

 
—

 
21,216

Corporate trust revenue
—

 
—

 
6,331

 
(1
)
 
6,330

 
—

 
6,330

Institutional trust & retirement plan services revenue
—

 
—

 
11,072

 
—

 
11,072

 
—

 
11,072

Investment management services and other revenue
—

 
—

 
6,449

 
(42
)
 
6,407

 
—

 
6,407

Fiduciary and asset management revenue
—

 
—

 
45,067

 
(42
)
 
45,025

 
—

 
45,025

Commercial account service charge revenue
10,625

 
429

 
538

 
—

 
11,592

 
—

 
11,592

Overdraft fee revenue
93

 
8,973

 
36

 
2

 
9,104

 
—

 
9,104

Check card revenue
—

 
5,586

 
—

 
1

 
5,587

 
—

 
5,587

Automated service charge and other deposit fee revenue
214

 
1,578

 
(2
)
 
1

 
1,791

 
—

 
1,791

Deposit service charges and fees
10,932

 
16,566

 
572

 
4

 
28,074

 
—

 
28,074

Mortgage production revenue
—

 
11,871

 
—

 
(2
)
 
11,869

 
11,869

 
—

Mortgage servicing revenue
—

 
16,741

 
—

 
(479
)
 
16,262

 
16,262

 
—

Mortgage banking revenue
—

 
28,612

 
—

 
(481
)
 
28,131

 
28,131

 
—

Other revenue
4,323

 
2,640

 
6,261

 
(787
)
 
12,437

 
8,123

 
4,314

Total fees and commissions revenue
$
41,105

 
$
48,830

 
$
85,925

 
$
248

 
$
176,108

 
$
65,676

 
$
110,432

1  
Out of scope revenue generally relates to financial instruments or contractual rights and obligations within the scope of other applicable accounting guidance.
2 
In scope revenue represents revenue subject to FASB ASC Topic 606, Revenue from Contracts with Customers.
3  
CoBiz operations are included in Funds Management and Other for the first quarter of 2019.

Fees and commissions revenue by reportable segment and primary service line is as follows for the six months ended June 30, 2019.
 
Commercial
 
Consumer
 
Wealth Management
 
Funds Management & Other3
 
Consolidated
 
Out of Scope1
 
In Scope2
Trading revenue
$
—

 
$
—

 
$
34,799

 
$
—

 
$
34,799

 
$
34,799

 
$
—

Customer hedging revenue
3,960

 
—

 
7,634

 
428

 
12,022

 
12,022

 
—

Retail brokerage revenue
—

 
—

 
7,988

 
(65
)
 
7,923

 
—

 
7,923

Insurance brokerage revenue
—

 
—

 
3,688

 
4,242

 
7,930

 
—

 
7,930

Investment banking revenue
3,937

 
—

 
5,533

 
(1
)
 
9,469

 
3,427

 
6,042

Brokerage and trading revenue
7,897

 
—

 
59,642

 
4,604

 
72,143

 
50,248

 
21,895

TransFund EFT network revenue
36,158

 
1,955

 
(37
)
 
1

 
38,077

 
—

 
38,077

Merchant services revenue
4,148

 
29

 
—

 
122

 
4,299

 
—

 
4,299

Corporate card revenue
270

 
—

 
5

 
2

 
277

 
—

 
277

Transaction card revenue
40,576

 
1,984

 
(32
)
 
125

 
42,653

 
—

 
42,653

Personal trust revenue
—

 
—

 
40,789

 
1

 
40,790

 
—

 
40,790

Corporate trust revenue
—

 
—

 
12,532

 
(1
)
 
12,531

 
—

 
12,531

Institutional trust & retirement plan services revenue
—

 
—

 
22,179

 
—

 
22,179

 
—

 
22,179

Investment management services and other revenue
—

 
—

 
11,250

 
1,633

 
12,883

 
—

 
12,883

Fiduciary and asset management revenue
—

 
—

 
86,750

 
1,633

 
88,383

 
—

 
88,383

Commercial account service charge revenue
20,687

 
816

 
1,065

 
1,807

 
24,375

 
—

 
24,375

Overdraft fee revenue
167

 
17,368

 
63

 
(234
)
 
17,364

 
—

 
17,364

Check card revenue
—

 
10,578

 
—

 
165

 
10,743

 
—

 
10,743

Automated service charge and other deposit fee revenue
372

 
3,243

 
175

 
45

 
3,835

 
—

 
3,835

Deposit service charges and fees
21,226

 
32,005

 
1,303

 
1,783

 
56,317

 
—

 
56,317

Mortgage production revenue
—

 
19,739

 
—

 
(2
)
 
19,737

 
19,737

 
—

Mortgage servicing revenue
—

 
33,186

 
—

 
(958
)
 
32,228

 
32,228

 
—

Mortgage banking revenue
—

 
52,925

 
—

 
(960
)
 
51,965

 
51,965

 
—

Other revenue
9,452

 
4,737

 
11,518

 
(508
)
 
25,199

 
16,843

 
8,356

Total fees and commissions revenue
$
79,151

 
$
91,651

 
$
159,181

 
$
6,677

 
$
336,660

 
$
119,056

 
$
217,604

1  
Out of scope revenue generally relates to financial instruments or contractual rights and obligations within the scope of other applicable accounting guidance.
2 
In scope revenue represents revenue subject to FASB ASC Topic 606, Revenue from Contracts with Customers.
3  
CoBiz operations are included in Funds Management and Other for the first quarter of 2019.

Fees and commissions revenue by reportable segment and primary service line is as follows for the three months ended June 30, 2018.
 
Commercial
 
Consumer
 
Wealth Management
 
Funds Management & Other
 
Consolidated
 
Out of Scope1
 
In Scope2
Trading revenue
$
—

 
$
—

 
$
6,338

 
$
—

 
$
6,338

 
$
6,338

 
$
—

Customer hedging revenue
2,892

 
—

 
7,611

 
(708
)
 
9,795

 
9,795

 
—

Retail brokerage revenue
—

 
—

 
4,657

 
(75
)
 
4,582

 
—

 
4,582

Insurance brokerage revenue
—

 
—

 
229

 
—

 
229

 
—

 
229

Investment banking revenue
2,903

 
—

 
2,641

 
—

 
5,544

 
2,300

 
3,244

Brokerage and trading revenue
5,795

 
—

 
21,476

 
(783
)
 
26,488

 
18,433

 
8,055

TransFund EFT network revenue
18,048

 
1,009

 
(21
)
 
2

 
19,038

 
—

 
19,038

Merchant services revenue
1,921

 
16

 
—

 
—

 
1,937

 
—

 
1,937

Corporate card revenue
—

 
—

 
—

 
—

 
—

 
—

 
—

Transaction card revenue
19,969

 
1,025

 
(21
)
 
2

 
20,975

 
—

 
20,975

Personal trust revenue
—

 
—

 
20,558

 
—

 
20,558

 
—

 
20,558

Corporate trust revenue
—

 
—

 
4,935

 
—

 
4,935

 
—

 
4,935

Institutional trust & retirement plan services revenue
—

 
—

 
11,039

 
—

 
11,039

 
—

 
11,039

Investment management services and other revenue
—

 
—

 
5,217

 
(57
)
 
5,160

 
—

 
5,160

Fiduciary and asset management revenue
—

 
—

 
41,749

 
(57
)
 
41,692

 
—

 
41,692

Commercial account service charge revenue
10,912

 
362

 
610

 
—

 
11,884

 
—

 
11,884

Overdraft fee revenue
98

 
8,768

 
32

 
7

 
8,905

 
—

 
8,905

Check card revenue
—

 
5,343

 
—

 
—

 
5,343

 
—

 
5,343

Automated service charge and other deposit fee revenue
38

 
1,633

 
24

 
7

 
1,702

 
—

 
1,702

Deposit service charges and fees
11,048

 
16,106

 
666

 
14

 
27,834

 
—

 
27,834

Mortgage production revenue
—

 
9,915

 
—

 
—

 
9,915

 
9,915

 
—

Mortgage servicing revenue
—

 
16,902

 
—

 
(471
)
 
16,431

 
16,431

 
—

Mortgage banking revenue
—

 
26,817

 
—

 
(471
)
 
26,346

 
26,346

 
—

Other revenue
6,062

 
2,384

 
6,619

 
(1,142
)
 
13,923

 
9,766

 
4,157

Total fees and commissions revenue
$
42,874

 
$
46,332

 
$
70,489

 
$
(2,437
)
 
$
157,258

 
$
54,545

 
$
102,713


1  
Out of scope revenue generally relates to financial instruments or contractual rights and obligations within the scope of other applicable accounting guidance.
2 
In scope revenue represents revenue subject to FASB ASC Topic 606, Revenue from Contracts with Customers.

Fees and commissions revenue by reportable segment and primary service line is as follows for the six months ended June 30, 2018.
 
Commercial
 
Consumer
 
Wealth Management
 
Funds Management & Other
 
Consolidated
 
Out of Scope1
 
In Scope2
Trading revenue
$
—

 
$
—

 
$
16,732

 
$
—

 
$
16,732

 
$
16,732

 
$
—

Customer hedging revenue
4,914

 
—

 
14,576

 
1,212

 
20,702

 
20,702

 
—

Retail brokerage revenue
—

 
—

 
9,353

 
(173
)
 
9,180

 
—

 
9,180

Insurance brokerage revenue
—

 
—

 
385

 
—

 
385

 
—

 
385

Investment banking revenue
3,964

 
—

 
6,173

 
—

 
10,137

 
3,361

 
6,776

Brokerage and trading revenue
8,878

 
—

 
47,219

 
1,039

 
57,136

 
40,795

 
16,341

TransFund EFT network revenue
36,250

 
1,996

 
(40
)
 
3

 
38,209

 
—

 
38,209

Merchant services revenue
3,725

 
31

 
—

 
—

 
3,756

 
—

 
3,756

Corporate card revenue
—

 
—

 
—

 
—

 
—

 
—

 
—

Transaction card revenue
39,975

 
2,027

 
(40
)
 
3

 
41,965

 
—

 
41,965

Personal trust revenue
—

 
—

 
40,658

 
—

 
40,658

 
—

 
40,658

Corporate trust revenue
—

 
—

 
10,576

 
—

 
10,576

 
—

 
10,576

Institutional trust & retirement plan services revenue
—

 
—

 
22,489

 
—

 
22,489

 
—

 
22,489

Investment management services and other revenue
—

 
—

 
9,906

 
(105
)
 
9,801

 
—

 
9,801

Fiduciary and asset management revenue
—

 
—

 
83,629

 
(105
)
 
83,524

 
—

 
83,524

Commercial account service charge revenue
21,856

 
721

 
1,215

 
—

 
23,792

 
—

 
23,792

Overdraft fee revenue
188

 
17,252

 
66

 
10

 
17,516

 
—

 
17,516

Check card revenue
—

 
10,261

 
—

 
—

 
10,261

 
—

 
10,261

Automated service charge and other deposit fee revenue
75

 
3,292

 
50

 
8

 
3,425

 
—

 
3,425

Deposit service charges and fees
22,119

 
31,526

 
1,331

 
18

 
54,994

 
—

 
54,994

Mortgage production revenue
—

 
19,367

 
—

 
—

 
19,367

 
19,367

 
—

Mortgage servicing revenue
—

 
33,929

 
—

 
(925
)
 
33,004

 
33,004

 
—

Mortgage banking revenue
—

 
53,296

 
—

 
(925
)
 
52,371

 
52,371

 
—

Other revenue
11,919

 
4,447

 
13,157

 
(2,641
)
 
26,882

 
18,751

 
8,131

Total fees and commissions revenue
$
82,891

 
$
91,296

 
$
145,296

 
$
(2,611
)
 
$
316,872

 
$
111,917

 
$
204,955

1  
Out of scope revenue generally relates to financial instruments or contractual rights and obligations within the scope of other applicable accounting guidance.
2 
In scope revenue represents revenue subject to FASB ASC Topic 606, Revenue from Contracts with Customers.