XML 33 R23.htm IDEA: XBRL DOCUMENT v3.23.3
Revenue from Contracts with Customers
 9 Months Ended
Sep. 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 86.6% and 83.7% of total revenues for the nine month periods ending September 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 September 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 nine month periods ending September 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 September 30, 2023(In thousands)
Retail
Overdraft fees$2,090 $— $— $— $2,090 
Account service charges1,079 — — — 1,079 
ATM fees— 457 — — 457 
Other— 247 — — 247 
Business    
Overdraft fees140 — — — 140 
ATM fees— 13 — — 13 
Other— 109 — — 109 
Interchange income— — 4,100 — 4,100 
Asset management revenue— — — 488 488 
Transaction based revenue— — — 388 388 
     
Total$3,309 $826 $4,100 $876 $9,111 
     
Reconciliation to Condensed Consolidated Statement of Operations:  
Non-interest income - other:     
Other deposit related income    $826 
Investment and insurance commissions   876 
Bank owned life insurance (1)    124 
Other (1)
    1,609 
Total    $3,435 
(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 September 30, 2022(In thousands)
Retail
Overdraft fees$2,492 $— $— $— $2,492 
Account service charges436 — — — 436 
ATM fees— 318 — — 318 
Other— 239 — — 239 
Business    
Overdraft fees154 — — — 154 
ATM fees— 8 — — 8 
Other— 79 — — 79 
Interchange income— — 4,049 — 4,049 
Asset management revenue— — — 433 433 
Transaction based revenue— — — 316 316 
     
Total$3,082 $644 $4,049 $749 $8,524 
Reconciliation to Condensed Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income$644 
Investment and insurance commissions749 
Bank owned life insurance (1) 59 
Other (1) 1,138 
Total$2,590 
(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
Nine months ending September 30, 2023(In thousands)
Retail
Overdraft fees$6,770 $— $— $— $6,770 
Account service charges2,135 — — — 2,135 
ATM fees— 1,235 — — 1,235 
Other— 756 — — 756 
Business    
Overdraft fees395 — — — 395 
ATM fees— 35 — — 35 
Other— 312 — — 312 
Interchange income— — 10,660 — 10,660 
Asset management revenue— — — 1,389 1,389 
Transaction based revenue— — — 1,057 1,057 
     
Total$9,300 $2,338 $10,660 $2,446 $24,744 
     
Reconciliation to Condensed Consolidated Statement of Operations:  
Non-interest income - other:     
Other deposit related income    $2,338 
Investment and insurance commissions   2,446 
Bank owned life insurance (1)    333 
Other (1)
    4,181 
Total    $9,298 
(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
Nine months ending September 30, 2022(In thousands)
Retail
Overdraft fees$7,497 $— $— $— $7,497 
Account service charges1,209 — — — 1,209 
ATM fees— 905 — — 905 
Other— 727 — — 727 
Business    
Overdraft fees429 — — — 429 
ATM fees— 22 — — 22 
Other— 237 — — 237 
Interchange income— — 10,553 — 10,553 
Asset management revenue— — — 1,355 1,355 
Transaction based revenue— — — 814 814 
     
Total$9,135 $1,891 $10,553 $2,169 $23,748 
     
Reconciliation to Condensed Consolidated Statement of Operations:  
Non-interest income - other:     
Other deposit related income    $1,891 
Investment and insurance commissions   2,169 
Bank owned life insurance (1)    302 
Other (1)
    3,635 
Total    $7,997 
(1)Excluded from the scope of ASC Topic 606.