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, 2018

Revenue from Contract with Customer [Abstract]

On January 1, 2018, the Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606” ("Topic 606"), and all subsequent amendments to the ASU No. 2014-09. Using Topic 606 guidelines and other authoritative guidance, the Company concluded that Topic 606 applies to noninterest income excluding out of scope revenue such as mortgage banking income, gains on securities transactions, and trading revenue (i.e., derivatives).

Public entities are required to disclose (1) revenue disaggregated into categories that show how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors; (2) contract balances; (3) a description of when performance obligations are satisfied; and (4) significant judgments made in evaluating when a customer obtains control of promised goods or services for performance obligations satisfied at a point in time.

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. Additionally, due to the short duration of most customer contracts the revenue from which constitutes noninterest income, the Company will not need to make many judgments that would affect the amount and timing of revenue.

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. However, for income related to most wealth management income, 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, 2018, 2017, and 2016, consisted of the following (dollars in thousands):



	2018		2017		2016
Noninterest income:
Deposit Service Charges ⁽¹⁾:
Overdraft fees, net	$	21,052	$	15,788	$	15,082
Maintenance fees & other	4,387		3,062		3,086
Other service charges and fees ⁽¹⁾	5,603		4,593		4,445
Interchange fees, net ⁽¹⁾	18,803		14,974		14,058
Fiduciary and asset management fees ⁽¹⁾:
Trust asset management fees	5,536		5,128		4,812
Registered advisor management fees, net	6,589		2,692		1,554
Brokerage management fees, net	4,025		3,425		3,833
Gains (losses) on securities transactions, net	383		800		205
Bank owned life insurance income	7,198		6,144		5,513
Loan-related interest rate swap fees	3,554		3,051		4,254
Gain on Shore Premier sale	19,966		—		—
Other operating income ⁽²⁾	7,145		2,772		3,007
Total noninterest income⁽³⁾	$	104,241	$	62,429	$	59,849

(1) Income within scope of Topic 606.

(2) Includes income within the scope of Topic 606 of $4.4 million, $2.3 million, and $2.3 million for the years ended December 31, 2018, 2017, and 2016, respectively. The remaining balance is outside the scope of Topic 606.

(3) Noninterest income for the discontinued mortgage segment is reported in Note 18, "Segment Reporting & Discontinued Operations."