Atlantic Union Bankshares Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

REVENUE

REVENUE

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

15. REVENUE

The majority of the Company’s noninterest income comes from short term contracts associated with fees for services provided on deposit accounts, credit cards, and wealth management accounts and is being accounted for in accordance with Topic 606. Typically, the duration of a contract does not extend beyond the services performed; therefore, the Company concluded that discussion regarding contract balances is immaterial.

The Company’s performance obligations on revenue from interchange fees and deposit accounts are generally satisfied immediately, when the transaction occurs, or by month-end. Performance obligations on revenue from fiduciary and asset management fees are generally satisfied monthly or quarterly. For a majority of fee income on deposit accounts the Company is a principal, controlling the promised good or service before transferring it to the customer. For the majority of income related to wealth management income however, the Company is an agent, responsible for arranging for the provision of goods and services by another party.

Noninterest income disaggregated by major source for the years ended December 31, 2019, 2018, and 2017 consisted of the following (dollars in thousands):


		2019		2018		2017
Noninterest income:
Deposit Service Charges ⁽¹⁾:
Overdraft fees	$	24,092	$	21,052	$	15,788
Maintenance fees & other		6,110		4,387		3,062
Other service charges and fees ⁽¹⁾		6,423		5,603		4,593
Interchange fees ⁽¹⁾		14,619		18,803		14,974
Fiduciary and asset management fees ⁽¹⁾:
Trust asset management fees		9,141		5,536		5,128
Registered advisor management fees		10,107		6,589		2,692
Brokerage management fees		4,117		4,025		3,425
Mortgage banking income		10,303		—		—
Gains (losses) on securities transactions		7,675		383		800
Bank owned life insurance income		8,311		7,198		6,144
Loan-related interest rate swap fees		14,126		3,554		3,051
Gain on Shore Premier sale		—		19,966		—
Other operating income ⁽²⁾		17,791		7,145		2,772
Total noninterest income⁽³⁾	$	132,815	$	104,241	$	62,429

(1)	Income within scope of Topic 606.

(2)

Includes income within the scope of Topic 606 of $4.0 million, $4.4 million and $2.3 million for the years ended December 31, 2019, 2018, and 2017, respectively. The remaining balance is outside the scope of Topic 606. The December 31, 2019 remaining balance includes $9.8 million in life insurance proceeds related to a Xenith-acquired loan that had been charged off prior to the Company’s acquisition of Xenith.

(3)	Noninterest income for the discontinued mortgage segment is reported in Note 19 “Segment Reporting & Discontinued Operations.”