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Fees and Commissions Revenue Fees and Commissions Revenue
 9 Months Ended
Sep. 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 September 30, 2019.
 
Commercial
 
Consumer
 
Wealth Management
 
Funds Management & Other3
 
Consolidated
 
Out of Scope1
 
In Scope2
Trading revenue
$
—

 
$
—

 
$
24,091

 
$
—

 
$
24,091

 
$
24,091

 
$
—

Customer hedging revenue
2,283

 
—

 
1,810

 
591

 
4,684

 
4,684

 
—

Retail brokerage revenue
—

 
—

 
4,204

 
—

 
4,204

 
—

 
4,204

Insurance brokerage revenue
—

 
—

 
3,375

 
(513
)
 
2,862

 
—

 
2,862

Investment banking revenue
4,408

 
—

 
3,590

 
1

 
7,999

 
3,762

 
4,237

Brokerage and trading revenue
6,691

 
—

 
37,070

 
79

 
43,840

 
32,537

 
11,303

TransFund EFT network revenue
18,465

 
1,020

 
(23
)
 
2

 
19,464

 
—

 
19,464

Merchant services revenue
2,203

 
14

 
—

 
—

 
2,217

 
—

 
2,217

Corporate card revenue
328

 
—

 
6

 
—

 
334

 
—

 
334

Transaction card revenue
20,996

 
1,034

 
(17
)
 
2

 
22,015

 
—

 
22,015

Personal trust revenue
—

 
—

 
20,239

 
(1
)
 
20,238

 
—

 
20,238

Corporate trust revenue
—

 
—

 
6,204

 
1

 
6,205

 
—

 
6,205

Institutional trust & retirement plan services revenue
—

 
—

 
10,740

 
—

 
10,740

 
—

 
10,740

Investment management services and other revenue
—

 
—

 
6,480

 
(42
)
 
6,438

 
—

 
6,438

Fiduciary and asset management revenue
—

 
—

 
43,663

 
(42
)
 
43,621

 
—

 
43,621

Commercial account service charge revenue
10,609

 
467

 
540

 
(3
)
 
11,613

 
—

 
11,613

Overdraft fee revenue
81

 
9,603

 
45

 
3

 
9,732

 
—

 
9,732

Check card revenue
—

 
5,721

 
—

 
—

 
5,721

 
—

 
5,721

Automated service charge and other deposit fee revenue
197

 
1,519

 
53

 
2

 
1,771

 
—

 
1,771

Deposit service charges and fees
10,887

 
17,310

 
638

 
2

 
28,837

 
—

 
28,837

Mortgage production revenue
—

 
13,815

 
—

 
(1
)
 
13,814

 
13,814

 
—

Mortgage servicing revenue
—

 
16,828

 
—

 
(462
)
 
16,366

 
16,366

 
—

Mortgage banking revenue
—

 
30,643

 
—

 
(463
)
 
30,180

 
30,180

 
—

Other revenue
7,585

 
2,474

 
8,068

 
(501
)
 
17,626

 
11,812

 
5,814

Total fees and commissions revenue
$
46,159

 
$
51,461

 
$
89,422

 
$
(923
)
 
$
186,119

 
$
74,529

 
$
111,590

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 nine months ended September 30, 2019.
 
Commercial
 
Consumer
 
Wealth Management
 
Funds Management & Other3
 
Consolidated
 
Out of Scope1
 
In Scope2
Trading revenue
$
—

 
$
—

 
$
58,890

 
$
—

 
$
58,890

 
$
58,890

 
$
—

Customer hedging revenue
6,243

 
—

 
9,444

 
1,019

 
16,706

 
16,706

 
—

Retail brokerage revenue
—

 
—

 
12,192

 
(65
)
 
12,127

 
—

 
12,127

Insurance brokerage revenue
—

 
—

 
7,063

 
3,729

 
10,792

 
—

 
10,792

Investment banking revenue
8,345

 
—

 
9,123

 
—

 
17,468

 
7,189

 
10,279

Brokerage and trading revenue
14,588

 
—

 
96,712

 
4,683

 
115,983

 
82,785

 
33,198

TransFund EFT network revenue
54,623

 
2,975

 
(60
)
 
3

 
57,541

 
—

 
57,541

Merchant services revenue
6,351

 
43

 
—

 
122

 
6,516

 
—

 
6,516

Corporate card revenue
598

 
—

 
11

 
2

 
611

 
—

 
611

Transaction card revenue
61,572

 
3,018

 
(49
)
 
127

 
64,668

 
—

 
64,668

Personal trust revenue
—

 
—

 
61,028

 
—

 
61,028

 
—

 
61,028

Corporate trust revenue
—

 
—

 
18,736

 
—

 
18,736

 
—

 
18,736

Institutional trust & retirement plan services revenue
—

 
—

 
32,919

 
—

 
32,919

 
—

 
32,919

Investment management services and other revenue
—

 
—

 
17,730

 
1,591

 
19,321

 
—

 
19,321

Fiduciary and asset management revenue
—

 
—

 
130,413

 
1,591

 
132,004

 
—

 
132,004

Commercial account service charge revenue
31,296

 
1,283

 
1,605

 
1,804

 
35,988

 
—

 
35,988

Overdraft fee revenue
248

 
26,971

 
108

 
(231
)
 
27,096

 
—

 
27,096

Check card revenue
—

 
16,299

 
—

 
165

 
16,464

 
—

 
16,464

Automated service charge and other deposit fee revenue
569

 
4,762

 
228

 
47

 
5,606

 
—

 
5,606

Deposit service charges and fees
32,113

 
49,315

 
1,941

 
1,785

 
85,154

 
—

 
85,154

Mortgage production revenue
—

 
33,554

 
—

 
(3
)
 
33,551

 
33,551

 
—

Mortgage servicing revenue
—

 
50,014

 
—

 
(1,420
)
 
48,594

 
48,594

 
—

Mortgage banking revenue
—

 
83,568

 
—

 
(1,423
)
 
82,145

 
82,145

 
—

Other revenue
17,037

 
7,211

 
19,586

 
(1,009
)
 
42,825

 
28,655

 
14,170

Total fees and commissions revenue
$
125,310

 
$
143,112

 
$
248,603

 
$
5,754

 
$
522,779

 
$
193,585

 
$
329,194

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 September 30, 2018.
 
Commercial
 
Consumer
 
Wealth Management
 
Funds Management & Other
 
Consolidated
 
Out of Scope1
 
In Scope2
Trading revenue
$
—

 
$
—

 
$
4,830

 
$
—

 
$
4,830

 
$
4,830

 
$
—

Customer hedging revenue
1,350

 
—

 
6,935

 
229

 
8,514

 
8,514

 
—

Retail brokerage revenue
—

 
—

 
4,398

 
(73
)
 
4,325

 
—

 
4,325

Insurance brokerage revenue
—

 
—

 
170

 
—

 
170

 
—

 
170

Investment banking revenue
1,765

 
—

 
3,482

 
—

 
5,247

 
1,410

 
3,837

Brokerage and trading revenue
3,115

 
—

 
19,815

 
156

 
23,086

 
14,754

 
8,332

TransFund EFT network revenue
18,397

 
1,009

 
(21
)
 
2

 
19,387

 
—

 
19,387

Merchant services revenue
1,995

 
14

 
—

 
—

 
2,009

 
—

 
2,009

Corporate card revenue
—

 
—

 
—

 
—

 
—

 
—

 
—

Transaction card revenue
20,392

 
1,023

 
(21
)
 
2

 
21,396

 
—

 
21,396

Personal trust revenue
—

 
—

 
35,822

 
1

 
35,823

 
—

 
35,823

Corporate trust revenue
—

 
—

 
5,741

 
—

 
5,741

 
—

 
5,741

Institutional trust & retirement plan services revenue
—

 
—

 
11,095

 
(1
)
 
11,094

 
—

 
11,094

Investment management services and other revenue
—

 
—

 
4,903

 
(47
)
 
4,856

 
—

 
4,856

Fiduciary and asset management revenue
—

 
—

 
57,561

 
(47
)
 
57,514

 
—

 
57,514

Commercial account service charge revenue
10,294

 
366

 
587

 
(3
)
 
11,244

 
—

 
11,244

Overdraft fee revenue
95

 
9,413

 
30

 
3

 
9,541

 
—

 
9,541

Check card revenue
—

 
5,254

 
—

 
—

 
5,254

 
—

 
5,254

Automated service charge and other deposit fee revenue
35

 
1,661

 
22

 
8

 
1,726

 
—

 
1,726

Deposit service charges and fees
10,424

 
16,694

 
639

 
8

 
27,765

 
—

 
27,765

Mortgage production revenue
—

 
7,250

 
—

 
—

 
7,250

 
7,250

 
—

Mortgage servicing revenue
—

 
16,748

 
—

 
(462
)
 
16,286

 
16,286

 
—

Mortgage banking revenue
—

 
23,998

 
—

 
(462
)
 
23,536

 
23,536

 
—

Other revenue
5,460

 
2,323

 
5,568

 
(451
)
 
12,900

 
8,799

 
4,101

Total fees and commissions revenue
$
39,391

 
$
44,038

 
$
83,562

 
$
(794
)
 
$
166,197

 
$
47,089

 
$
119,108


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 nine months ended September 30, 2018.
 
Commercial
 
Consumer
 
Wealth Management
 
Funds Management & Other
 
Consolidated
 
Out of Scope1
 
In Scope2
Trading revenue
$
—

 
$
—

 
$
21,562

 
$
—

 
$
21,562

 
$
21,562

 
$
—

Customer hedging revenue
6,264

 
—

 
21,511

 
1,441

 
29,216

 
29,216

 
—

Retail brokerage revenue
—

 
—

 
13,751

 
(246
)
 
13,505

 
—

 
13,505

Insurance brokerage revenue
—

 
—

 
555

 
—

 
555

 
—

 
555

Investment banking revenue
5,729

 
—

 
9,655

 
—

 
15,384

 
4,772

 
10,612

Brokerage and trading revenue
11,993

 
—

 
67,034

 
1,195

 
80,222

 
55,550

 
24,672

TransFund EFT network revenue
54,647

 
3,005

 
(61
)
 
5

 
57,596

 
—

 
57,596

Merchant services revenue
5,720

 
45

 
—

 
—

 
5,765

 
—

 
5,765

Corporate card revenue
—

 
—

 
—

 
—

 
—

 
—

 
—

Transaction card revenue
60,367

 
3,050

 
(61
)
 
5

 
63,361

 
—

 
63,361

Personal trust revenue
—

 
—

 
76,481

 
(2
)
 
76,479

 
—

 
76,479

Corporate trust revenue
—

 
—

 
16,317

 
—

 
16,317

 
—

 
16,317

Institutional trust & retirement plan services revenue
—

 
—

 
33,584

 
3

 
33,587

 
—

 
33,587

Investment management services and other revenue
—

 
—

 
14,808

 
(153
)
 
14,655

 
—

 
14,655

Fiduciary and asset management revenue
—

 
—

 
141,190

 
(152
)
 
141,038

 
—

 
141,038

Commercial account service charge revenue
32,150

 
1,087

 
1,802

 
(3
)
 
35,036

 
—

 
35,036

Overdraft fee revenue
283

 
26,665

 
96

 
13

 
27,057

 
—

 
27,057

Check card revenue
—

 
15,515

 
—

 
—

 
15,515

 
—

 
15,515

Automated service charge and other deposit fee revenue
110

 
4,953

 
72

 
17

 
5,152

 
—

 
5,152

Deposit service charges and fees
32,543

 
48,220

 
1,970

 
27

 
82,760

 
—

 
82,760

Mortgage production revenue
—

 
26,617

 
—

 
—

 
26,617

 
26,617

 
—

Mortgage servicing revenue
—

 
50,677

 
—

 
(1,387
)
 
49,290

 
49,290

 
—

Mortgage banking revenue
—

 
77,294

 
—

 
(1,387
)
 
75,907

 
75,907

 
—

Other revenue
17,379

 
6,770

 
18,725

 
(3,093
)
 
39,781

 
27,552

 
12,229

Total fees and commissions revenue
$
122,282

 
$
135,334

 
$
228,858

 
$
(3,405
)
 
$
483,069

 
$
159,009

 
$
324,060

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.