XML 26 R17.htm IDEA: XBRL DOCUMENT v3.22.1
Fees and Commissions Revenue Fees and Commissions Revenue
 3 Months Ended
Mar. 31, 2022
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 March 31, 2022.
CommercialConsumerWealth ManagementFunds Management & OtherConsolidated
Out of Scope1
In Scope2
Trading revenue$— $— $(54,048)$— $(54,048)$(54,048)$— 
Customer hedging revenue
12,979 — 817 (2,858)10,938 10,938 — 
Retail brokerage revenue
— — 4,610 — 4,610 — 4,610 
Insurance brokerage revenue
— — 3,738 — 3,738 — 3,738 
Investment banking revenue
3,358 — 4,325 — 7,683 3,099 4,584 
Brokerage and trading revenue
16,337 — (40,558)(2,858)(27,079)(40,011)12,932 
TransFund EFT network revenue18,153 886 (17)1 19,023 — 19,023 
Merchant services revenue3,641 10 — — 3,651 — 3,651 
Corporate card revenue1,376 — 76 90 1,542 — 1,542 
Transaction card revenue23,170 896 59 91 24,216 — 24,216 
Personal trust revenue— — 24,797 — 24,797 — 24,797 
Corporate trust revenue— — 3,958 — 3,958 — 3,958 
Institutional trust & retirement plan services revenue
— — 12,567 — 12,567 — 12,567 
Investment management services and other revenue
— — 5,121 (44)5,077 — 5,077 
Fiduciary and asset management revenue
— — 46,443 (44)46,399 — 46,399 
Commercial account service charge revenue
13,131 450 513 — 14,094 — 14,094 
Overdraft fee revenue31 6,193 23 — 6,247 — 6,247 
Check card revenue
— 5,545 — — 5,545 — 5,545 
Automated service charge and other deposit fee revenue
23 1,107 (14)2 1,118 — 1,118 
Deposit service charges and fees
13,185 13,295 522 2 27,004 — 27,004 
Mortgage production revenue— 5,055 — — 5,055 5,055 — 
Mortgage servicing revenue— 12,076 — (481)11,595 11,595 — 
Mortgage banking revenue— 17,131 — (481)16,650 16,650 — 
Other revenue4,272 2,655 18,557 (15,039)10,445 7,275 3,170 
Total fees and commissions revenue
$56,964 $33,977 $25,023 $(18,329)$97,635 $(16,086)$113,721 
1     Out of scope revenue generally relates to financial instruments or contractual rights and obligations within the scope of other applicable accounting guidance.
2    In scope revenue represents revenue subject to FASB ASC Topic 606, Revenue from Contracts with Customers.
Fees and commissions revenue by reportable segment and primary service line is as follows for the three months ended March 31, 2021.
CommercialConsumerWealth ManagementFunds Management & OtherConsolidated
Out of Scope1
In Scope2
Trading revenue$— $— $3,716 $— $3,716 $3,716 $— 
Customer hedging revenue
4,207 — 91 (1,706)2,592 2,592 — 
Retail brokerage revenue
— — 4,741 — 4,741 — 4,741 
Insurance brokerage revenue
— — 2,916 — 2,916 — 2,916 
Investment banking revenue
2,258 — 4,768 (209)6,817 2,049 4,768 
Brokerage and trading revenue
6,465 — 16,232 (1,915)20,782 8,357 12,425 
TransFund EFT network revenue18,443 834 (13)2 19,266 — 19,266 
Merchant services revenue2,266 16 — (1)2,281 — 2,281 
Corporate card revenue804 — 28 51 883 — 883 
Transaction card revenue21,513 850 15 52 22,430 — 22,430 
Personal trust revenue— — 21,977 — 21,977 — 21,977 
Corporate trust revenue— — 3,789 — 3,789 — 3,789 
Institutional trust & retirement plan services revenue
— — 12,610 — 12,610 — 12,610 
Investment management services and other revenue
— — 2,903 43 2,946 — 2,946 
Fiduciary and asset management revenue
— — 41,279 43 41,322 — 41,322 
Commercial account service charge revenue
11,988 434 581 1 13,004 — 13,004 
Overdraft fee revenue26 4,635 19 — 4,680 — 4,680 
Check card revenue
— 5,327 — — 5,327 — 5,327 
Automated service charge and other deposit fee revenue
26 1,150 23 (1)1,198 — 1,198 
Deposit service charges and fees
12,040 11,546 623 — 24,209 — 24,209 
Mortgage production revenue— 25,287 — — 25,287 25,287 — 
Mortgage servicing revenue— 12,277 — (451)11,826 11,826 — 
Mortgage banking revenue— 37,564 — (451)37,113 37,113 — 
Other revenue9,829 2,340 7,535 (3,408)16,296 13,143 3,153 
Total fees and commissions revenue
$49,847 $52,300 $65,684 $(5,679)$162,152 $58,613 $103,539 
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.