Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2025

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

The following tables summarize total revenues as presented in the Unaudited Consolidated Statements of Income and the related amounts that are from contracts with customers within the scope of ASC 606. As shown below, a substantial portion of our revenues are specifically excluded from the scope of ASC 606.

For the three months ended March 31,	2025		2024
(Dollars in thousands)	Revenue (1)	ASC 606 Revenue (2)	Revenue (1)	ASC 606 Revenue (2)
Net interest income	$36,422	$—	$31,665	$—
Noninterest income:
Wealth management revenues	9,891	9,891	9,338	9,338
Mortgage banking revenues	2,304	—	2,506	—
Card interchange fees	1,509	1,509	1,145	1,145
Service charges on deposit accounts	744	744	685	685
Loan related derivative income	101	—	284	—
Income from bank-owned life insurance	769	—	739	—
Gain on sale of bank-owned properties, net (3)	6,994	6,994	—	—
Other income	331	264	2,466	270
Total noninterest income	22,643	19,402	17,163	11,438
Total revenues	$59,065	$19,402	$48,828	$11,438

(1)As reported in the Unaudited Consolidated Statements of Income.

(2)Revenue from contracts with customers in scope of ASC 606.

(3)Included herein in accordance with sales-leaseback transaction provisions of ASC 842 and ASC 606.

The following table presents revenue from contracts with customers based on the timing of revenue recognition:

(Dollars in thousands)
Three months ended March 31,	2025	2024
Revenue recognized at a point in time:
Card interchange fees	$1,509	$1,145
Service charges on deposit accounts	463	425
Gain on sale of bank-owned properties, net	6,994	—
Other income	204	211
Revenue recognized over time:
Wealth management revenues	9,891	9,338
Service charges on deposit accounts	281	260
Other income	60	59
Total revenues from contracts with customers in scope of ASC 606	$19,402	$11,438

Receivables for revenue from contracts with customers primarily consist of amounts due for wealth management services performed for which the Corporation’s performance obligations have been fully satisfied. Receivables amounted to $5.9 million and $6.0 million, respectively, at March 31, 2025 and December 31, 2024 and were included in other assets in the Unaudited Consolidated Balance Sheets.

Deferred revenues, which are considered contract liabilities under ASC 606, represent advance consideration received from customers for which the Corporation has a remaining performance obligation to fulfill. Contract liabilities are recognized as revenue over the life of the contract as the performance obligations are satisfied. The balances of contract liabilities were insignificant at both March 31, 2025 and December 31, 2024 and were included in other liabilities in the Unaudited Consolidated Balance Sheets.

For commissions and incentives that are in scope of ASC 606, such as those paid to employees in our wealth management services and commercial banking segments in order to obtain customer contracts, contract cost assets are established. The contract cost assets are capitalized and amortized over the estimated useful life that the asset is expected to generate benefits. The carrying value of contract cost assets amounted to $2.0 million and $2.1 million, respectively at March 31, 2025 and December 31, 2024 and were included in other assets in the Unaudited Consolidated Balance Sheets. The amortization of contract cost assets is recorded within salaries and employee benefits expense in the Unaudited Consolidated Statements of Income.