Revenue from Contract with Customer

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

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 Statements of Income. All of Park's operations are considered by management to be aggregated in one reportable segment.

The following table presents the Corporation's sources of other income by revenue stream for the years ended December 31, 2023, 2022, and 2021:

	Year ended December 31, 2023		Year ended December 31, 2022		Year ended December 31, 2021
Revenue by Operating Segment (in thousands)	PRK		PRK		PRK
Income from fiduciary activities
Personal trust and agency accounts	$	10,297	10,091		10,264
Employee benefit and retirement-related accounts	9,894		9,698		9,705
Investment management and investment advisory agency accounts	13,242		12,442		12,620
Other	2,041		1,860		1,860
Service charges on deposit accounts
Non-sufficient funds (NSF) fees	3,744		6,095		5,244
Demand deposit account (DDA) charges	4,229		3,439		3,074
Other	472		557		514
Other service income (1)
Credit card	2,799		2,808		2,563
HELOC	369		397		389
Installment	177		163		148
Real estate	5,795		9,952		24,907
Commercial	1,160		1,975		1,805
Debit card fee income	26,522		26,046		25,865
Bank owned life insurance income (2)	5,338		6,100		4,897
ATM fees	2,178		2,273		2,379
(Loss) gain on the sale of OREO, net	(3)		5,611		(4)
OREO valuation markup	60		12,039		64
Loss on the sale of debt securities, net (2)	(7,875)		—		—
Gain on equity securities, net (2)	971		2,955		5,011
Other components of net periodic pension benefit income (2)	7,572		12,108		8,152
Miscellaneous (3)	3,652		9,326		10,487
Total other income	$	92,634	$	135,935	$	129,944

(1) "Other Service Income" totaled $10.3 million, $15.3 million, and $29.8 million for the years ended December 31, 2023, 2022, and 2021, respectively. Of this aggregate service revenue, approximately, $5.2 million, $5.6 million, and $5.3 million is within the scope of ASC 606, with the remaining $5.1 million, $9.7 million, and $24.5 million consisting primarily of residential real estate loan fees which are out of scope for each respective year.

(2) Not within the scope of ASC 606.

(3) "Miscellaneous" income includes brokerage income, safe deposit box rentals, and miscellaneous bank fees totaling $3.7 million, $9.3 million, and $10.5 million for the years ended December 31, 2023, 2022, and 2021, respectively, all of which are within the 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. Fees for transaction-based services, 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.