Substantially all of the Company’s revenue from contracts with customers that is within the scope of ASC 606, “Revenue from Contracts with Customers” is reported within noninterest income. The recognition of interest income and certain sources of noninterest income (e.g. gains on securities transactions, bank-owned life insurance income, gains on loans held-for-sale, etc.) are governed by other areas of U.S. GAAP. Significant revenue streams that are within the scope of ASC 606 and included in noninterest income are discussed in the following paragraphs.

Service Charges on Deposit Accounts

Service charges on deposit accounts consist of account analysis fees (e.g., net fees earned on analyzed business checking accounts), monthly service fees, check orders, and other deposit account related fees. Revenue from account analysis fees and monthly service fees is recognized over the period in which the service is provided. Revenue from check orders and other transactional fees is recognized at the point in time the transaction occurs. Payment is received immediately or at the end of the month through a direct charge to customers’ accounts.

Fees, Exchange, and Other Service Charges

Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, treasury services income, wealth management fees, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned when the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income represents fees charged to merchants to process their debit and credit card transactions and related account management fees. Treasury services income represents fees charged to customers for sweep, positive pay, and lockbox services. Wealth management fees represent advisory and asset management fees earned by PWW. Other service charges include revenue from wire transfers, bill pay services, cashier’s checks, and other banking services. Revenue is recognized when the services are rendered or upon completion. Payment is typically received immediately, at month-end, or for wealth management fees, at quarter-end.

Commission-based Fees

Commission income is primarily generated from the sale of securities and annuities to retail customers. Revenue is recognized at the point in time when each transaction is completed, and payment is generally received shortly thereafter under standard settlement processes. Because commissions are transaction-based, the amount of revenue recognized may fluctuate from period to period based on the volume and size of customer transactions.

Wealth Management Fees

Wealth management fees are generated almost entirely by PWW, the Company’s investment advisory subsidiary, which provides continuous portfolio management services under contracts based on the market value of assets under management. Revenue is recognized over time as services are rendered throughout each contractual period. Payment is typically received at the end of each quarter based on the quarter-end valuation of client assets. Because fees are asset-based, the amount of revenue recognized may fluctuate from period to period due to market performance and client activity.

‎

Note 22 – Revenue recognition (continued)

Other

Other noninterest income consists of commissions from sales of mutual funds and other investments, ongoing service fees (trailers) from mutual fund companies, safe deposit box rental fees, and other miscellaneous revenue.

Commissions from sales of mutual funds and investments are recognized at the trade date when the Company has satisfied its performance obligation. Trailer fees from mutual fund companies, which are typically based on a percentage of net asset value, are recognized over time as the net asset value is determined, usually monthly or quarterly.