Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

All of Park's revenue from contracts with customers within the scope of ASC 606 is recognized within "Other income" in the Consolidated Condensed Statements of Income.

The following table presents the Corporation's sources of other income by revenue stream and operating segment for the three-month periods ended March 31, 2023 and March 31, 2022:

	Three Months Ended March 31, 2023
Revenue by Operating Segment (in thousands)	PNB		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	2,504	$	—	$	2,504
Employee benefit and retirement-related accounts	2,472		—		2,472
Investment management and investment advisory agency accounts	3,162		—		3,162
Other	477		—		477
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	1,061		—		1,061
Demand deposit account (DDA) charges	1,038		—		1,038
Other	142		—		142
Other service income (1)
Credit card	683		—		683
HELOC	89		—		89
Installment	49		—		49
Real estate	1,455		—		1,455
Commercial	286		135		421
Debit card fee income	6,457		—		6,457
Bank owned life insurance income (2)	1,134		51		1,185
ATM fees	533		—		533
Loss on sale of OREO, net	(9)		—		(9)
OREO valuation markup	15		—		15
Loss on equity securities, net (2)	(307)		(98)		(405)
Other components of net periodic pension benefit income (2)	1,857		36		1,893
Miscellaneous (3)	1,164		1		1,165
Total other income	$	24,262	$	125	$	24,387

(1) Of the $2.7 million of aggregate revenue included within "Other service income", approximately $1.4 million is within the scope of ASC 606, with the remaining $1.3 million consisting primarily of certain residential real estate loan fees which are out of scope.

(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $1.2 million, all of which are within scope of ASC 606.

	Three Months Ended March 31, 2022
Revenue by Operating Segment (in thousands)	PNB		All Other		Total
Income from fiduciary activities
Personal trust and agency accounts	$	2,506	$	—	$	2,506
Employee benefit and retirement-related accounts	2,560		—		2,560
Investment management and investment advisory agency accounts	3,260		—		3,260
Other	471		—		471
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	1,417		—		1,417
Demand deposit account (DDA) charges	516		—		516
Other	141		—		141
Other service income (1)
Credit card	642		—		642
HELOC	89		—		89
Installment	43		—		43
Real estate	3,719		—		3,719
Commercial	354		(28)		326
Debit card fee income	6,126		—		6,126
Bank owned life insurance income (2)	1,093		82		1,175
ATM fees	532		—		532
Loss on sale of OREO, net	—		—		—
OREO valuation markup	30		—		30
Gain on equity securities, net (2)	2,219		134		2,353
Other components of net periodic pension benefit income (2)	2,955		72		3,027
Miscellaneous (3)	2,574		149		2,723
Total other income	$	31,247	$	409	$	31,656

(1) Of the $4.8 million of aggregate revenue included within "Other service income", approximately $1.2 million is within the scope of ASC 606, with the remaining $3.6 million consisting primarily of certain residential real estate loan fees which are out of scope.

(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $2.7 million, all of which are within scope of ASC 606.

A description of Park's material revenue streams accounted for under ASC 606 follows:

Income from fiduciary activities (gross): Park earns fiduciary fee income and investment brokerage fees from its contracts with trust customers for various fiduciary and investment-related services. These fees are earned over time as the Company provides the contracted monthly and quarterly services and are generally assessed based on the market value of the trust assets.

Service charges on deposit accounts and ATM fees: The Corporation earns fees from the Corporation's deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering fees, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are generally recognized at the end of the month, representing the period over which the Corporation 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.

Other service income: Other service income includes income from (1) the sale and servicing of loans sold to the secondary market, (2) incentive income from third-party credit card issuers, and (3) loan customers for various loan-related activities and services. Income related to the sale and servicing of loans sold to the secondary market is included within "Other service income", but is not within the scope of ASC 606. Services that fall within the scope of ASC 606 are recognized as revenue when the Company satisfies the Company's performance obligation to the customer.

Debit card fee income: Park earns interchange fees from debit cardholder transactions conducted primarily through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, net of card network fees, concurrently with the transaction processing services provided to the cardholder.

Gain or loss on sale of OREO, net: The Corporation 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 delivery of an executed deed. When Park finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform the buyer's obligation 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 Corporation adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.

OREO valuation markup: The Corporation records an OREO valuation markup immediately prior to the transfer of a loan to OREO when the fair market value of the property less costs to sell exceeds the principal balance of the loan.