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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers. We derive the majority of our revenue from financial instruments and their related contractual rights and obligations which for the most part are excluded from the scope of this topic. These sources of revenue that are excluded from the scope of this topic include interest income, net gains on mortgage loans, net gains (losses) on securities AFS, mortgage loan servicing, net and bank owned life insurance and were approximately 86.8% and 83.4% of total revenues for the six month periods ending June 30, 2023 and 2022, respectively.
Material sources of revenue that are included in the scope of this topic include service charges on deposit accounts, other deposit related income, interchange income and investment and insurance commissions and are discussed in the following paragraphs. Generally these sources of revenue are earned at the time the service is delivered or over the course of a monthly period and do not result in any contract asset or liability balance at any given period end. As a result, there were no contract assets or liabilities recorded as of June 30, 2023 and December 31, 2022.
Service charges on deposit accounts and other deposit related income: Revenues are earned on depository accounts for commercial and retail customers and include fees for transaction-based, account maintenance and overdraft services. Transaction-based fees, which includes services such as ATM use fees, stop payment charges and ACH fees are recognized at the time the transaction is executed as that is the time we fulfill our customer’s request. Account maintenance fees, which includes monthly maintenance services are earned over the course of a month representing the period over which the performance obligation is satisfied. Our obligation for overdraft services is satisfied at the time of the overdraft.
Interchange income: Interchange income primarily includes debit card interchange and network revenues. Debit card interchange and network revenues are earned on debit card transactions conducted through payment networks such as MasterCard and Accel. Interchange income is recognized concurrently with the delivery of services on a daily basis. Interchange and network revenues are presented gross of interchange expenses, which are presented separately as a component of non-interest expense.
Investment and insurance commissions: Investment and insurance commissions include fees and commissions from asset management, custody, recordkeeping, investment advisory and other services provided to our customers. Revenue is recognized on an accrual basis at the time the services are performed and generally based on either the market value of the assets managed or the services provided. We have an agent relationship with a third party provider of these services and net certain direct costs charged by the third party provider associated with providing these services to our customers.
Net (gains) losses on other real estate and repossessed assets: We record a gain or loss from the sale of other real estate when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. If we were to finance the sale of other real estate to the buyer, we would assess whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction is probable. Once these criteria are met, the other real estate asset would be derecognized and the gain or loss on sale would be recorded upon the transfer of control of the property to the buyer. There were no other real estate properties sold during the six month periods ending June 30, 2023 and 2022 that were financed by us.
Disaggregation of our revenue sources by attribute follows:
Service
Charges
on Deposit
Accounts		Other
Deposit
Related
Income		Interchange
Income		Investment
and
Insurance
Commissions		Total
Three months ending June 30, 2023(In thousands)
Retail
Overdraft fees$2,419 $— $— $— $2,419 
Account service charges589 — — — 589 
ATM fees— 449 — — 449 
Other— 262 — — 262 
Business    
Overdraft fees126 — — — 126 
ATM fees— 13 — — 13 
Other— 112 — — 112 
Interchange income— — 3,355 — 3,355 
Asset management revenue— — — 459 459 
Transaction based revenue— — — 284 284 
     
Total$3,134 $836 $3,355 $743 $8,068 
     
Reconciliation to Condensed Consolidated Statement of Operations:  
Non-interest income - other:     
Other deposit related income    $836 
Investment and insurance commissions   743 
Bank owned life insurance (1)    98 
Other (1)
    1,457 
Total    $3,134 
(1)Excluded from the scope of ASC Topic 606.
Service
Charges
on Deposit
Accounts		 Other
Deposit
Related
Income		Interchange
Income		Investment
and
Insurance
Commissions		Total
Three months ending June 30, 2022(In thousands)
Retail
Overdraft fees$2,499 $— $— $— $2,499 
Account service charges452 — — — 452 
ATM fees— 310 — — 310 
Other— 237 — — 237 
Business    
Overdraft fees145 — — — 145 
ATM fees— 7 — — 7 
Other— 71 — — 71 
Interchange income— — 3,422 — 3,422 
Asset management revenue— — — 453 453 
Transaction based revenue— — — 229 229 
     
Total$3,096 $625 $3,422 $682 $7,825 
Reconciliation to Condensed Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income$625 
Investment and insurance commissions682 
Bank owned life insurance (1) 105 
Other (1) 1,632 
Total$3,044 
(1)Excluded from the scope of ASC Topic 606.
Service
Charges
on Deposit
Accounts		Other
Deposit
Related
Income		Interchange
Income		Investment
and
Insurance
Commissions		Total
Six months ending June 30, 2023(In thousands)
Retail
Overdraft fees$4,680 $— $— $— $4,680 
Account service charges1,056 — — — 1,056 
ATM fees— 778 — — 778 
Other— 509 — — 509 
Business    
Overdraft fees255 — — — 255 
ATM fees— 22 — — 22 
Other— 203 — — 203 
Interchange income— — 6,560 — 6,560 
Asset management revenue— — — 901 901 
Transaction based revenue— — — 669 669 
     
Total$5,991 $1,512 $6,560 $1,570 $15,633 
     
Reconciliation to Condensed Consolidated Statement of Operations:  
Non-interest income - other:     
Other deposit related income    $1,512 
Investment and insurance commissions   1,570 
Bank owned life insurance (1)    209 
Other (1)
    2,572 
Total    $5,863 
(1)Excluded from the scope of ASC Topic 606.
Service
Charges
on Deposit
Accounts		Other
Deposit
Related
Income		Interchange
Income		Investment
and
Insurance
Commissions		Total
Six months ending June 30, 2022(In thousands)
Retail
Overdraft fees$5,005 $— $— $— $5,005 
Account service charges773 — — — 773 
ATM fees— 587 — — 587 
Other— 488 — — 488 
Business    
Overdraft fees275 — — — 275 
ATM fees— 14 — — 14 
Other— 158 — — 158 
Interchange income— — 6,504 — 6,504 
Asset management revenue— — — 922 922 
Transaction based revenue— — — 498 498 
     
Total$6,053 $1,247 $6,504 $1,420 $15,224 
     
Reconciliation to Condensed Consolidated Statement of Operations:  
Non-interest income - other:     
Other deposit related income    $1,247 
Investment and insurance commissions   1,420 
Bank owned life insurance (1)    243 
Other (1)
    2,497 
Total    $5,407 
(1)Excluded from the scope of ASC Topic 606.