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REVENUE FROM CONTRACTS WITH CUSTOMERS
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer [Text Block]

NOTE 19 – REVENUE FROM CONTRACTS WITH CUSTOMERS

 

Revenue Recognition

 

In accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“ASC Topic 606”), revenues are recognized when control of promised goods or services is transferred to customers and in an amount that reflects the consideration to which the Corporation expects to be entitled in exchange for those goods or services. At contract inception, once the contract is determined to be within the scope of ASC Topic 606, the Corporation assesses the goods or services that are promised within each contract, identifies the respective performance obligations, and assesses whether each promised good or service is distinct. The Corporation then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied.

 

Disaggregation of Revenue

 

The following table summarizes the Corporation’s revenue, which includes net interest income on financial instruments and non-interest income, disaggregated by type of service and business segment for the quarters and six-month periods ended June 30, 2022 and 2021:

(In thousands)

Mortgage Banking

 

Consumer (Retail) Banking

 

Commercial and Corporate

 

Treasury and Investments

 

United States Operations

 

Virgin Islands Operations

 

Total

Quarter Ended June 30, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (1)

$

26,335

 

$

102,397

 

$

31,379

 

$

11,466

 

$

18,688

 

$

5,921

 

$

196,186

Service charges and fees on deposit accounts

 

-

 

 

5,495

 

 

3,069

 

 

-

 

 

157

 

 

745

 

 

9,466

Insurance commissions (2)

 

-

 

 

2,724

 

 

-

 

 

-

 

 

20

 

 

202

 

 

2,946

Merchant-related income

 

-

 

 

1,711

 

 

381

 

 

-

 

 

17

 

 

327

 

 

2,436

Credit and debit card fees

 

-

 

 

7,391

 

 

21

 

 

-

 

 

3

 

 

449

 

 

7,864

Other service charges and fees

 

59

 

 

2,066

 

 

876

 

 

-

 

 

485

 

 

157

 

 

3,643

Not in scope of ASC Topic 606 (1)

 

4,108

 

 

396

 

 

101

 

 

(51)

 

 

(4)

 

 

36

 

 

4,586

 

Total non-interest income

 

4,167

 

 

19,783

 

 

4,448

 

 

(51)

 

 

678

 

 

1,916

 

 

30,941

Total Revenue

$

30,502

 

$

122,180

 

$

35,827

 

$

11,415

 

$

19,366

 

$

7,837

 

$

227,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Mortgage Banking

 

Consumer (Retail) Banking

 

Commercial and Corporate

 

Treasury and Investments

 

United States Operations

 

Virgin Islands Operations

 

Total

Quarter Ended June 30, 2021:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (1)

$

26,331

 

$

64,751

 

$

51,498

 

$

19,039

 

$

16,406

 

$

6,758

 

$

184,783

Service charges and fees on deposit accounts

 

-

 

 

4,966

 

 

2,987

 

 

-

 

 

135

 

 

700

 

 

8,788

Insurance commissions (2)

 

-

 

 

1,987

 

 

-

 

 

-

 

 

28

 

 

200

 

 

2,215

Merchant-related income

 

-

 

 

1,910

 

 

257

 

 

-

 

 

12

 

 

283

 

 

2,462

Credit and debit card fees

 

-

 

 

6,621

 

 

21

 

 

-

 

 

11

 

 

404

 

 

7,057

Other service charges and fees

 

177

 

 

846

 

 

693

 

 

-

 

 

431

 

 

147

 

 

2,294

Not in scope of ASC Topic 606 (1)

 

5,960

 

 

396

 

 

181

 

 

85

 

 

451

 

 

(5)

 

 

7,068

 

Total non-interest income

 

6,137

 

 

16,726

 

 

4,139

 

 

85

 

 

1,068

 

 

1,729

 

 

29,884

Total Revenue

$

32,468

 

$

81,477

 

$

55,637

 

$

19,124

 

$

17,474

 

$

8,487

 

$

214,667

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Mortgage Banking

 

Consumer (Retail) Banking

 

Commercial and Corporate

 

Treasury and Investments

 

United States Operations

 

Virgin Islands Operations

 

Total

Six-Month Period Ended June 30, 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (1)

$

52,114

 

$

191,943

 

$

71,794

 

$

18,875

 

$

35,170

 

$

11,914

 

$

381,810

Service charges and fees on deposit accounts

 

-

 

 

11,034

 

 

6,045

 

 

-

 

 

295

 

 

1,455

 

 

18,829

Insurance commissions (2)

 

-

 

 

7,691

 

 

-

 

 

-

 

 

49

 

 

481

 

 

8,221

Merchant-related income

 

-

 

 

3,533

 

 

754

 

 

-

 

 

22

 

 

716

 

 

5,025

Credit and debit card fees

 

-

 

 

14,062

 

 

37

 

 

-

 

 

(4)

 

 

859

 

 

14,954

Other service charges and fees

 

202

 

 

3,176

 

 

1,989

 

 

-

 

 

984

 

 

314

 

 

6,665

Not in scope of ASC Topic 606 (1)

 

9,217

 

 

750

 

 

177

 

 

(163)

 

 

76

 

 

48

 

 

10,105

 

Total non-interest income

 

9,419

 

 

40,246

 

 

9,002

 

 

(163)

 

 

1,422

 

 

3,873

 

 

63,799

Total Revenue

$

61,533

 

$

232,189

 

$

80,796

 

$

18,712

 

$

36,592

 

$

15,787

 

$

445,609

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In thousands)

Mortgage Banking

 

Consumer (Retail) Banking

 

Commercial and Corporate

 

Treasury and Investments

 

United States Operations

 

Virgin Islands Operations

 

Total

Six-Month Period Ended June 30, 2021:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (1)

$

51,571

 

$

123,234

 

$

100,479

 

$

40,622

 

$

31,429

 

$

13,713

 

$

361,048

Service charges and fees on deposit accounts

 

-

 

 

9,442

 

 

5,958

 

 

-

 

 

284

 

 

1,408

 

 

17,092

Insurance commissions (2)

 

-

 

 

6,954

 

 

-

 

 

-

 

 

57

 

 

445

 

 

7,456

Merchant-related income

 

-

 

 

2,832

 

 

513

 

 

-

 

 

25

 

 

487

 

 

3,857

Credit and debit card fees

 

-

 

 

12,266

 

 

40

 

 

-

 

 

14

 

 

774

 

 

13,094

Other service charges and fees

 

350

 

 

1,711

 

 

1,212

 

 

-

 

 

889

 

 

288

 

 

4,450

Not in scope of ASC Topic 606 (1)

 

12,903

 

 

764

 

 

313

 

 

141

 

 

774

 

 

(4)

 

 

14,891

Total non-interest income

 

13,253

 

 

33,969

 

 

8,036

 

 

141

 

 

2,043

 

 

3,398

 

 

60,840

Total Revenue

$

64,824

 

$

157,203

 

$

108,515

 

$

40,763

 

$

33,472

 

$

17,111

 

$

421,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Most of the Corporation’s revenue is not within the scope of ASC Topic 606. The guidance explicitly excludes net interest income from financial assets and liabilities, as well as other non-interest income from loans, leases, investment securities and derivative financial instruments.

(2)

Contingent commission income is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or payments are received. For the quarter and six-month period ended June 30, 2022, the Corporation recognized revenue at the time that payments were confirmed and constraints were released of $265 thousand and $3.2 million, respectively, compared to $16 thousand and $3.3 million for the quarter and six-month period ended June 30, 2021.

For the six-month periods ended June 30, 2022 and 2021, most of the Corporation’s revenue within the scope of ASC Topic 606 was related to performance obligations satisfied at a point in time.

 

See Note 31 – Revenue from Contracts with Customers included in the 2021 Annual Report on Form 10-K for a discussion of major revenue streams under the scope of ASC Topic 606.

 

Contract Balances

 

As of June 30, 2022 and 2021, there were no contract assets from contracts with customers or contract assets recorded on the Corporation’s consolidated financial statements.

 

The following table shows the activity of contract liabilities for the quarters and six-month periods ended June 30, 2022 and 2021:

 

 

Quarter Ended

 

Six-Month Period Ended

 

 

June 30,

 

June 30,

(In thousands)

2022

 

2021

 

2022

 

2021

Beginning Balance

$

1,154

 

$

2,070

 

$

1,443

 

$

2,151

Less:

 

 

 

 

 

 

 

 

 

 

 

Revenue recognized

 

(105)

 

 

(81)

 

 

(394)

 

 

(162)

Ending balance

$

1,049

 

$

1,989

 

$

1,049

 

$

1,989

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

Except for the contract liabilities noted above, the Corporation did not have any significant performance obligations as of June 30, 2022. The Corporation also did not have any material contract acquisition costs and did not make any significant judgments or estimates in recognizing revenue for financial reporting purposes.