Fees and Commissions Revenue Fees and Commissions Revenue

6 Months Ended

Jun. 30, 2021

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, 2021.

	Commercial		Consumer		Wealth Management		Funds Management & Other		Consolidated		Out of Scope1		In Scope2
Trading revenue	$	—	$	—	$	13,002	$	(1)	$	13,001	$	13,001	$	—
Customer hedging revenue	5,693		—		55		(3,943)		1,805		1,805		—
Retail brokerage revenue	—		—		4,528		—		4,528		—		4,528
Insurance brokerage revenue	—		—		2,996		—		2,996		—		2,996
Investment banking revenue	3,935		—		3,626		(483)		7,078		2,721		4,357
Brokerage and trading revenue	9,628		—		24,207		(4,427)		29,408		17,527		11,881
TransFund EFT network revenue	19,374		924		(17)		1		20,282		—		20,282
Merchant services revenue	3,434		17		—		1		3,452		—		3,452
Corporate card revenue	1,063		—		37		89		1,189		—		1,189
Transaction card revenue	23,871		941		20		91		24,923		—		24,923
Personal trust revenue	—		—		25,156		—		25,156		—		25,156
Corporate trust revenue	—		—		3,435		—		3,435		—		3,435
Institutional trust & retirement plan services revenue	—		—		12,828		—		12,828		—		12,828
Investment management services and other revenue	—		—		3,543		(130)		3,413		—		3,413
Fiduciary and asset management revenue	—		—		44,962		(130)		44,832		—		44,832
Commercial account service charge revenue	12,710		469		607		(1)		13,785		—		13,785
Overdraft fee revenue	22		4,916		17		2		4,957		—		4,957
Check card revenue	—		6,030		—		(1)		6,029		—		6,029
Automated service charge and other deposit fee revenue	25		1,042		20		3		1,090		—		1,090
Deposit service charges and fees	12,757		12,457		644		3		25,861		—		25,861
Mortgage production revenue	—		10,004		—		—		10,004		10,004		—
Mortgage servicing revenue	—		11,668		—		(453)		11,215		11,215		—
Mortgage banking revenue	—		21,672		—		(453)		21,219		21,219		—
Other revenue	17,112		2,644		9,008		(5,592)		23,172		20,041		3,131
Total fees and commissions revenue	$	63,368	$	37,714	$	78,841	$	(10,508)	$	169,415	$	58,787	$	110,628

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, 2021.

	Commercial		Consumer		Wealth Management		Funds Management & Other		Consolidated		Out of Scope1		In Scope2
Trading revenue	$	—	$	—	$	16,718	$	(1)	$	16,717	$	16,717	$	—
Customer hedging revenue	9,900		—		146		(5,649)		4,397		4,397		—
Retail brokerage revenue	—		—		9,269		—		9,269		—		9,269
Insurance brokerage revenue	—		—		5,912		—		5,912		—		5,912
Investment banking revenue	6,193		—		8,394		(692)		13,895		4,770		9,125
Brokerage and trading revenue	16,093		—		40,439		(6,342)		50,190		25,884		24,306
TransFund EFT network revenue	37,817		1,758		(30)		3		39,548		—		39,548
Merchant services revenue	5,700		33		—		—		5,733		—		5,733
Corporate card revenue	1,867		—		65		140		2,072		—		2,072
Transaction card revenue	45,384		1,791		35		143		47,353		—		47,353
Personal trust revenue	—		—		47,133		—		47,133		—		47,133
Corporate trust revenue	—		—		7,224		—		7,224		—		7,224
Institutional trust & retirement plan services revenue	—		—		25,438		—		25,438		—		25,438
Investment management services and other revenue	—		—		6,446		(87)		6,359		—		6,359
Fiduciary and asset management revenue	—		—		86,241		(87)		86,154		—		86,154
Commercial account service charge revenue	24,698		903		1,188		—		26,789		—		26,789
Overdraft fee revenue	48		9,551		36		2		9,637		—		9,637
Check card revenue	—		11,357		—		(1)		11,356		—		11,356
Automated service charge and other deposit fee revenue	51		2,192		43		2		2,288		—		2,288
Deposit service charges and fees	24,797		24,003		1,267		3		50,070		—		50,070
Mortgage production revenue	—		35,291		—		—		35,291		35,291		—
Mortgage servicing revenue	—		23,945		—		(904)		23,041		23,041		—
Mortgage banking revenue	—		59,236		—		(904)		58,332		58,332		—
Other revenue	26,941		4,984		16,543		(9,000)		39,468		33,184		6,284
Total fees and commissions revenue	$	113,215	$	90,014	$	144,525	$	(16,187)	$	331,567	$	117,400	$	214,167

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 three months ended June 30, 2020.

	Commercial		Consumer		Wealth Management		Funds Management & Other		Consolidated		Out of Scope1		In Scope2
Trading revenue	$	—	$	—	$	43,915	$	—	$	43,915	$	43,915	$	—
Customer hedging revenue	6,893		—		63		(714)		6,242		6,242		—
Retail brokerage revenue	—		—		3,394		—		3,394		—		3,394
Insurance brokerage revenue	—		—		3,153		—		3,153		—		3,153
Investment banking revenue	1,131		—		4,187		—		5,318		851		4,467
Brokerage and trading revenue	8,024		—		54,712		(714)		62,022		51,008		11,014
TransFund EFT network revenue	19,647		556		(9)		—		20,194		—		20,194
Merchant services revenue	2,230		13		—		—		2,243		—		2,243
Corporate card revenue	485		—		18		—		503		—		503
Transaction card revenue	22,362		569		9		—		22,940		—		22,940
Personal trust revenue	—		—		21,681		—		21,681		—		21,681
Corporate trust revenue	—		—		4,604		—		4,604		—		4,604
Institutional trust & retirement plan services revenue	—		—		10,723		191		10,914		—		10,914
Investment management services and other revenue	—		—		4,291		(233)		4,058		—		4,058
Fiduciary and asset management revenue	—		—		41,299		(42)		41,257		—		41,257
Commercial account service charge revenue	11,069		389		598		—		12,056		—		12,056
Overdraft fee revenue	20		3,607		16		—		3,643		—		3,643
Check card revenue	—		5,122		—		—		5,122		—		5,122
Automated service charge and other deposit fee revenue	29		1,179		17		—		1,225		—		1,225
Deposit service charges and fees	11,118		10,297		631		—		22,046		—		22,046
Mortgage production revenue	—		39,186		—		—		39,186		39,186		—
Mortgage servicing revenue	—		15,164		—		(414)		14,750		14,750		—
Mortgage banking revenue	—		54,350		—		(414)		53,936		53,936		—
Other revenue	5,011		1,976		10,106		(5,614)		11,479		8,970		2,509
Total fees and commissions revenue	$	46,515	$	67,192	$	106,757	$	(6,784)	$	213,680	$	113,914	$	99,766

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, 2020.

	Commercial		Consumer		Wealth Management		Funds Management & Other3		Consolidated		Out of Scope1		In Scope2
Trading revenue	$	—	$	—	$	78,299	$	—	$	78,299	$	78,299	$	—
Customer hedging revenue	9,418		—		198		(151)		9,465		9,465		—
Retail brokerage revenue	—		—		7,737		—		7,737		—		7,737
Insurance brokerage revenue	—		—		6,942		—		6,942		—		6,942
Investment banking revenue	3,011		—		7,347		—		10,358		2,679		7,679
Brokerage and trading revenue	12,429		—		100,523		(151)		112,801		90,443		22,358
TransFund EFT network revenue	37,859		1,387		(28)		2		39,220		—		39,220
Merchant services revenue	4,535		27		—		—		4,562		—		4,562
Corporate card revenue	1,005		—		34		—		1,039		—		1,039
Transaction card revenue	43,399		1,414		6		2		44,821		—		44,821
Personal trust revenue	—		—		42,330		—		42,330		—		42,330
Corporate trust revenue	—		—		10,966		—		10,966		—		10,966
Institutional trust & retirement plan services revenue	—		—		22,480		330		22,810		—		22,810
Investment management services and other revenue	—		—		10,022		(413)		9,609		—		9,609
Fiduciary and asset management revenue	—		—		85,798		(83)		85,715		—		85,715
Commercial account service charge revenue	22,108		799		1,143		(1)		24,049		—		24,049
Overdraft fee revenue	69		10,812		38		2		10,921		—		10,921
Check card revenue	—		10,351		—		—		10,351		—		10,351
Automated service charge and other deposit fee revenue	258		2,565		30		2		2,855		—		2,855
Deposit service charges and fees	22,435		24,527		1,211		3		48,176		—		48,176
Mortgage production revenue	—		60,755		—		—		60,755		60,755		—
Mortgage servicing revenue	—		31,206		—		(858)		30,348		30,348		—
Mortgage banking revenue	—		91,961		—		(858)		91,103		91,103		—
Other revenue	9,711		4,352		17,100		(7,375)		23,788		17,378		6,410
Total fees and commissions revenue	$	87,974	$	122,254	$	204,638	$	(8,462)	$	406,404	$	198,924	$	207,480

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.