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

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 September 30,	2023		2022
(Dollars in thousands)	Revenue (1)	ASC 606 Revenue (2)	Revenue (1)	ASC 606 Revenue (2)
Net interest income	$33,751	$—	$42,042	$—
Noninterest income:
Wealth management revenues	8,948	8,948	9,525	9,525
Mortgage banking revenues	2,108	—	2,047	—
Card interchange fees	1,267	1,267	1,287	1,287
Service charges on deposit accounts	674	674	819	819
Loan related derivative income	1,082	—	1,041	—
Income from bank-owned life insurance	710	—	684	—
Other income	437	329	400	316
Total noninterest income	15,226	11,218	15,803	11,947
Total revenues	$48,977	$11,218	$57,845	$11,947

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

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

For the nine months ended September 30,	2023		2022
(Dollars in thousands)	Revenue (1)	ASC 606 Revenue (2)	Revenue (1)	ASC 606 Revenue (2)
Net interest income	$104,444	$—	$114,648	$—
Noninterest income:
Wealth management revenues	26,659	26,659	30,122	30,122
Mortgage banking revenues	5,106	—	7,630	—
Card interchange fees	3,667	3,667	3,754	3,754
Service charges on deposit accounts	2,118	2,118	2,250	2,250
Loan related derivative income	1,278	—	2,011	—
Income from bank-owned life insurance	2,754	—	1,900	—
Other income	1,252	949	1,147	880
Total noninterest income	42,834	33,393	48,814	37,006
Total revenues	$147,278	$33,393	$163,462	$37,006

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

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

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

(Dollars in thousands)	Three Months		Nine Months
Periods ended September 30,	2023	2022	2023	2022
Revenue recognized at a point in time:
Card interchange fees	$1,267	$1,287	$3,667	$3,754
Service charges on deposit accounts	423	628	1,406	1,782
Other income	267	249	764	692
Revenue recognized over time:
Wealth management revenues	8,948	9,525	26,659	30,122
Service charges on deposit accounts	251	191	712	468
Other income	62	67	185	188
Total revenues from contracts in scope of Topic 606	$11,218	$11,947	$33,393	$37,006

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 $6.4 million and $5.1 million, respectively, at September 30, 2023 and December 31, 2022 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 September 30, 2023 and December 31, 2022 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 $1.9 million and $2.1 million, respectively, at September 30, 2023 and December 31, 2022 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.