Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

The following table summarizes 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,	2024		2023
(Dollars in thousands)	Revenue (1)	ASC 606 Revenue (2)	Revenue (1)	ASC 606 Revenue (2)
Net interest income	$31,665	$—	$37,193	$—
Noninterest income:
Wealth management revenues	9,338	9,338	8,663	8,663
Mortgage banking revenues	2,506	—	1,245	—
Card interchange fees	1,145	1,145	1,132	1,132
Service charges on deposit accounts	685	685	777	777
Loan related derivative income	284	—	(51)	—
Income from bank-owned life insurance	739	—	1,165	—
Other income	2,466	2,370	352	276
Total noninterest income	17,163	13,538	13,283	10,848
Total revenues	$48,828	$13,538	$50,476	$10,848

(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 ended March 31,	2024	2023
Revenue recognized at a point in time:
Card interchange fees	$1,145	$1,132
Service charges on deposit accounts	425	558
Other income	2,311	216
Revenue recognized over time:
Wealth management revenues	9,338	8,663
Service charges on deposit accounts	260	219
Other income	59	60
Total revenues from contracts with customers in scope of ASC 606	$13,538	$10,848

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 $5.7 million and $5.5 million, respectively, at March 31, 2024 and December 31, 2023 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, 2024 and December 31, 2023 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 at both March 31, 2024 and December 31, 2023 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.