Fees and Commissions Revenue Fees and Commissions Revenue

9 Months Ended

Sep. 30, 2023

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, 2023 (in thousands):

	Commercial		Consumer		Wealth Management		Funds Management & Other		Consolidated		Out of Scope1		In Scope2
Trading revenue	$	—	$	—	$	34,461	$	(1)	$	34,460	$	34,460	$	—
Customer hedging revenue	7,403		—		(141)		(407)		6,855		6,855		—
Retail brokerage revenue	—		—		4,357		—		4,357		—		4,357
Insurance brokerage revenue	—		—		2,703		—		2,703		—		2,703
Investment banking revenue	4,508		—		9,428		1		13,937		3,823		10,114
Brokerage and trading revenue	11,911		—		50,808		(407)		62,312		45,138		17,174
TransFund EFT network revenue	21,038		875		(18)		1		21,896		—		21,896
Merchant services revenue	2,430		8		—		—		2,438		—		2,438
Corporate card revenue	1,768		—		179		106		2,053		—		2,053
Transaction card revenue	25,236		883		161		107		26,387		—		26,387
Personal trust revenue	—		—		22,890		(1)		22,889		—		22,889
Corporate trust revenue	—		—		8,713		—		8,713		—		8,713
Institutional trust & retirement plan services revenue	—		—		16,883		—		16,883		—		16,883
Investment management services and other revenue	—		—		3,769		2		3,771		—		3,771
Fiduciary and asset management revenue	—		—		52,255		1		52,256		—		52,256
Commercial account service charge revenue	13,687		524		496		2		14,709		—		14,709
Overdraft fee revenue	26		5,427		39		—		5,492		—		5,492
Check card revenue	—		5,926		—		2		5,928		—		5,928
Automated service charge and other deposit fee revenue	285		1,255		10		(3)		1,547		—		1,547
Deposit service charges and fees	13,998		13,132		545		1		27,676		—		27,676
Mortgage production revenue	—		(1,887)		—		—		(1,887)		(1,887)		—
Mortgage servicing revenue	—		15,861		—		(618)		15,243		15,243		—
Mortgage banking revenue	—		13,974		—		(618)		13,356		13,356		—
Other revenue	6,713		2,726		19,845		(13,419)		15,865		9,236		6,629
Total fees and commissions revenue	$	57,858	$	30,715	$	123,614	$	(14,335)	$	197,852	$	67,730	$	130,122

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, 2023 (in thousands):

	Commercial		Consumer		Wealth Management		Funds Management & Other		Consolidated		Out of Scope1		In Scope2
Trading revenue	$	—	$	—	$	98,980	$	(1)	$	98,979	$	98,979	$	—
Customer hedging revenue	26,729		—		(200)		2,322		28,851		28,851		—
Retail brokerage revenue	—		—		11,522		—		11,522		—		11,522
Insurance brokerage revenue	—		—		8,866		—		8,866		—		8,866
Investment banking revenue	11,720		—		19,775		1		31,496		10,873		20,623
Brokerage and trading revenue	38,449		—		138,943		2,322		179,714		138,703		41,011
TransFund EFT network revenue	62,020		2,690		(52)		5		64,663		—		64,663
Merchant services revenue	7,074		26		—		—		7,100		—		7,100
Corporate card revenue	5,387		—		540		321		6,248		—		6,248
Transaction card revenue	74,481		2,716		488		326		78,011		—		78,011
Personal trust revenue	—		—		71,732		(1)		71,731		—		71,731
Corporate trust revenue	—		—		23,574		—		23,574		—		23,574
Institutional trust & retirement plan services revenue	—		—		43,843		—		43,843		—		43,843
Investment management services and other revenue	—		—		16,782		(20)		16,762		—		16,762
Fiduciary and asset management revenue	—		—		155,931		(21)		155,910		—		155,910
Commercial account service charge revenue	39,922		1,553		1,461		—		42,936		—		42,936
Overdraft fee revenue	83		15,321		101		1		15,506		—		15,506
Check card revenue	—		17,540		—		2		17,542		—		17,542
Automated service charge and other deposit fee revenue	789		3,801		172		(2)		4,760		—		4,760
Deposit service charges and fees	40,794		38,215		1,734		1		80,744		—		80,744
Mortgage production revenue	—		(2,804)		—		—		(2,804)		(2,804)		—
Mortgage servicing revenue	—		47,412		—		(1,744)		45,668		45,668		—
Mortgage banking revenue	—		44,608		—		(1,744)		42,864		42,864		—
Other revenue	19,673		8,118		58,479		(39,185)		47,085		25,963		21,122
Total fees and commissions revenue	$	173,397	$	93,657	$	355,575	$	(38,301)	$	584,328	$	207,530	$	376,798

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 September 30, 2022 (in thousands):

	Commercial		Consumer		Wealth Management		Funds Management & Other		Consolidated		Out of Scope1		In Scope2
Trading revenue	$	—	$	—	$	26,463	$	—	$	26,463	$	26,463	$	—
Customer hedging revenue	8,169		—		257		4,753		13,179		13,179		—
Retail brokerage revenue	—		—		3,839		(1)		3,838		—		3,838
Insurance brokerage revenue	—		—		3,254		—		3,254		—		3,254
Investment banking revenue	6,348		—		7,924		—		14,272		5,990		8,282
Brokerage and trading revenue	14,517		—		41,737		4,752		61,006		45,632		15,374
TransFund EFT network revenue	21,243		910		(19)		2		22,136		—		22,136
Merchant services revenue	1,917		8		—		—		1,925		—		1,925
Corporate card revenue	1,711		—		99		103		1,913		—		1,913
Transaction card revenue	24,871		918		80		105		25,974		—		25,974
Personal trust revenue	—		—		23,927		—		23,927		—		23,927
Corporate trust revenue	—		—		6,513		—		6,513		—		6,513
Institutional trust & retirement plan services revenue	—		—		13,019		(1)		13,018		—		13,018
Investment management services and other revenue	—		—		6,817		(85)		6,732		—		6,732
Fiduciary and asset management revenue	—		—		50,276		(86)		50,190		—		50,190
Commercial account service charge revenue	13,361		473		480		—		14,314		—		14,314
Overdraft fee revenue	29		6,936		19		3		6,987		—		6,987
Check card revenue	—		5,944		—		(2)		5,942		—		5,942
Automated service charge and other deposit fee revenue	201		1,205		54		—		1,460		—		1,460
Deposit service charges and fees	13,591		14,558		553		1		28,703		—		28,703
Mortgage production revenue	—		(2,406)		—		—		(2,406)		(2,406)		—
Mortgage servicing revenue	—		14,206		—		(518)		13,688		13,688		—
Mortgage banking revenue	—		11,800		—		(518)		11,282		11,282		—
Other revenue	5,168		2,954		20,467		(13,110)		15,479		4,227		11,252
Total fees and commissions revenue	$	58,147	$	30,230	$	113,113	$	(8,856)	$	192,634	$	61,141	$	131,493

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, 2022 (in thousands):

	Commercial		Consumer		Wealth Management		Funds Management & Other		Consolidated		Out of Scope1		In Scope2
Trading revenue	$	—	$	—	$	(15,594)	$	—	$	(15,594)	$	(15,594)	$	—
Customer hedging revenue	28,888		—		1,379		6,983		37,250		37,250		—
Retail brokerage revenue	—		—		12,707		(1)		12,706		—		12,706
Insurance brokerage revenue	—		—		9,810		—		9,810		—		9,810
Investment banking revenue	16,775		—		17,023		—		33,798		15,461		18,337
Brokerage and trading revenue	45,663		—		25,325		6,982		77,970		37,117		40,853
TransFund EFT network revenue	59,763		2,708		(55)		5		62,421		—		62,421
Merchant services revenue	9,425		28		—		—		9,453		—		9,453
Corporate card revenue	4,681		—		276		299		5,256		—		5,256
Transaction card revenue	73,869		2,736		221		304		77,130		—		77,130
Personal trust revenue	—		—		73,551		—		73,551		—		73,551
Corporate trust revenue	—		—		16,947		—		16,947		—		16,947
Institutional trust & retirement plan services revenue	—		—		39,009		—		39,009		—		39,009
Investment management services and other revenue	—		—		17,050		(130)		16,920		—		16,920
Fiduciary and asset management revenue	—		—		146,557		(130)		146,427		—		146,427
Commercial account service charge revenue	40,283		1,392		1,516		—		43,191		—		43,191
Overdraft fee revenue	89		19,673		63		4		19,829		—		19,829
Check card revenue	—		17,502		—		—		17,502		—		17,502
Automated service charge and other deposit fee revenue	245		3,373		65		2		3,685		—		3,685
Deposit service charges and fees	40,617		41,940		1,644		6		84,207		—		84,207
Mortgage production revenue	—		2,145		—		—		2,145		2,145		—
Mortgage servicing revenue	—		38,650		—		(1,495)		37,155		37,155		—
Mortgage banking revenue	—		40,795		—		(1,495)		39,300		39,300		—
Other revenue	14,843		8,837		51,160		(36,232)		38,608		19,402		19,206
Total fees and commissions revenue	$	174,992	$	94,308	$	224,907	$	(30,565)	$	463,642	$	95,819	$	367,823

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.