REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

9. REVENUE FROM CONTRACTS WITH CUSTOMERS:

All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income.

The following table presents the sources of noninterest income for the years ended December 31:

(In thousands)	2023			2022		2021
Service charges on deposits
Overdraft fees	$	518		$	488	$	415
Interchange income		1,182			1,451		1,451
Other		3,452			2,286		1,831
Wealth management fees (a)		55,747			54,651		52,987
Gains on sales of OREO		—			—		51
(Loss)/Gain on sale of property		(6	)		275		—
Corporate advisory fee income		219			1,704		3,483
Other (b)		12,466			5,562		12,025
Total noninterest other income	$	73,578		$	66,417	$	72,243

(a)Includes investment brokerage fees.

(b)All of the other category is outside the scope of ASC 606.

The following table presents the sources of noninterest income by operating segment for the years ended December 31:

	2023
Revenue by Operating				Wealth
Segment	Banking			Management		Total
Service charges on deposits
Overdraft fees	$	518		$	—	$	518
Interchange income		1,182			—		1,182
Other		3,452			—		3,452
Wealth management fees (a)		—			55,747		55,747
Gain on sale of property		(6	)		—		(6	)
Corporate advisory fee income		219			—		219
Other (b)		11,288			1,178		12,466
Total noninterest income	$	16,653		$	56,925	$	73,578

	2022
Revenue by Operating			Wealth
Segment	Banking		Management		Total
Service charges on deposits
Overdraft fees	$	488	$	—	$	488
Interchange income		1,451		—		1,451
Other		2,286		—		2,286
Wealth management fees (a)		—		54,651		54,651
Gain on sales of OREO		275		—		275
Corporate advisory fee income		1,704		—		1,704
Other (b)		3,715		1,847		5,562
Total noninterest income	$	9,919	$	56,498	$	66,417

	2021
Revenue by Operating			Wealth
Segment	Banking		Management		Total
Service charges on deposits
Overdraft fees	$	415	$	—	$	415
Interchange income		1,451		—		1,451
Other		1,831		—		1,831
Wealth management fees (a)		—		52,987		52,987
Gain on sales of OREO		51		—		51
Corporate advisory fee income		3,483		—		3,483
Other (b)		10,111		1,914		12,025
Total noninterest income	$	17,342	$	54,901	$	72,243

(a)Includes investment brokerage fees.

(b)All of the other category is outside the scope of ASC 606.

A description of the Company’s revenue streams accounted for under ASC 606 follows:

Service charges on deposit accounts: The Company earns fees from its deposit customers for certain transaction account maintenance, and overdraft fees. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

Interchange income: The Company earns interchange fees from debit cardholder transactions conducted through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Interchange income is presented gross of cardholder rewards. Cardholder rewards are included in other expenses in the statement of income. Cardholder rewards reduced interchange income by $8,000, $102,000, and $127,000 for 2023, 2022, and 2021, respectively.

Wealth management fees (gross): The Company earns wealth management fees from its contracts with wealth management clients to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Company charges its clients on a monthly or quarterly basis in accordance with its investment advisory agreements. Fees are generally assessed based on a tiered scale of the market value of AUM at month end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed (i.e. trade date).

Investment brokerage fees (net): The Company earns fees from investment brokerage services provided to its customers by a third-party service provider. The Company receives commissions from the third-party service provider twice a month based upon customer activity for the month. The fees are recognized monthly, and a receivable is recorded until commissions are generally paid by the 15th of the following month. Because the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, investment brokerage fees are presented net of related costs.

Corporate advisory fee income: The Company provides our clients with financial advisory and underwriting services. Investment banking revenues, which includes mergers and acquisition advisory fees and private placement fees, are recorded when the performance obligation for the transaction is satisfied under the terms of each engagement. Reimbursed expenses are reported in other revenue on the statement of operations. Expenses related to investment banking are recognized as non-compensation expenses on the statement of operations. Amounts received and unearned are included on the statement of financial condition. Expenses related to investment banking deals not completed are recognized in non-compensation expenses on the statement of operations.

The Company’s mergers and acquisition advisory fees generally consist of a nonrefundable up-front fee and success fee. The nonrefundable fee is recorded as deferred revenue upon receipt and recognized at a point in time when the performance obligation is satisfied, or when the transaction is deemed by management to be terminated. Management’s judgment is required in determining when a transaction is considered to be terminated.

Gains/(losses) on sales of property: The Company records a gain or loss from the sale of property when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of property to the buyer, the Company assesses whether the buyer is committed to perform its obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the property asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present. The Company recorded a loss on sale of property of $6,000 for 2023 and a gain on sale of property of $275,000 for 2022. The Company did not record a gain or loss in 2021.

Gains/(losses) on sales of OREO: The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform its obligations under the contract and whether

collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present. The Company did not record a gain or loss in 2023 or 2022. The Company recorded a gain on sale of OREO of $51,000 for 2021.

Other: All of the other income items are outside the scope of ASC 606.