Atlantic Union Bankshares Corp Revenue Disclosure
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, the Company is an agent, responsible for arranging for the provision of goods and services by another party.
Mortgage banking income is earned when the originated loans are sold to an investor on the secondary market. The loans are classified as LHFS prior to being sold. Additionally, the changes in fair value of the LHFS, loan commitments, and related derivatives are included in mortgage banking income.
Noninterest income disaggregated by major source for the years ended December 31, 2021, 2020, and 2019 consisted of the following (dollars in thousands):
2021 | 2020 | 2019 | |||||||
Noninterest income: |
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Deposit Service Charges (1): |
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Overdraft fees | $ | 17,126 | $ | 17,792 | $ | 24,092 | |||
Maintenance fees & other |
| 9,996 |
| 7,459 |
| 6,110 | |||
Other service charges, commissions, and fees (1) |
| 6,595 |
| 6,292 |
| 6,423 | |||
Interchange fees (1) |
| 8,279 |
| 7,184 |
| 14,619 | |||
Fiduciary and asset management fees (1): |
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Trust asset management fees |
| 12,571 |
| 10,804 |
| 9,141 | |||
Registered advisor management fees |
| 9,856 |
| 8,657 |
| 10,107 | |||
Brokerage management fees |
| 5,135 |
| 4,189 |
| 4,117 | |||
Mortgage banking income |
| 21,022 |
| 25,857 |
| 10,303 | |||
Gains on securities transactions |
| 87 |
| 12,294 |
| 7,675 | |||
Bank owned life insurance income |
| 11,488 |
| 9,554 |
| 8,311 | |||
Loan-related interest rate swap fees |
| 5,620 |
| 15,306 |
| 14,126 | |||
Other operating income (2)(3)(4) |
| 18,031 |
| 6,098 |
| 17,791 | |||
Total noninterest income | $ | 125,806 | $ | 131,486 | $ | 132,815 | |||
| (1) | Income within scope of Topic 606. |
| (2) | For the year ended December 31, 2019, 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) | For the year ended December 31, 2020, includes a $1.8 million loss related to the termination of a cash flow hedge. |
| (4) | For the year ended December 31, 2021, includes a $5.1 million gain on sale of Visa, Inc. Class B common stock. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2021 | Feb 25, 2022 | Showing above |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 27, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.