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REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customers [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS [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 nine-month
 
periods ended
 
September 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 September 30, 2022:
Net interest income
(1)
$
24,338
$
118,408
$
22,861
$
14,827
$
21,494
$
5,982
$
207,910
Service charges and fees on deposit accounts
-
5,744
3,169
-
151
756
9,820
Insurance commissions
(2)
-
2,485
-
-
16
123
2,624
Merchant-related income
-
1,458
347
-
32
330
2,167
Credit and debit card fees
-
7,209
21
-
(2)
439
7,667
Other service charges and fees
85
1,228
340
-
595
195
2,443
Not in scope of ASC Topic 606
(1)
3,648
997
399
33
(19)
(86)
4,972
Total non-interest income
3,733
19,121
4,276
33
773
1,757
29,693
Total Revenue
$
28,071
$
137,529
$
27,137
$
14,860
$
22,267
$
7,739
$
237,603
(In thousands)
Mortgage
Banking
Consumer
(Retail) Banking
Commercial and
Corporate
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
Quarter Ended September 30, 2021:
Net interest income
(1)
$
26,535
$
75,343
$
46,358
$
12,756
$
17,255
$
6,496
$
184,743
Service charges and fees on deposit accounts
-
5,076
2,855
-
128
631
8,690
Insurance commissions
(2)
-
2,183
-
-
25
109
2,317
Merchant-related income
-
1,878
263
-
14
266
2,421
Credit and debit card fees
-
6,897
22
-
-
394
7,313
Other service charges and fees
211
1,018
715
-
462
150
2,556
Not in scope of ASC Topic 606
(1)
5,710
492
39
61
336
11
6,649
Total non-interest income
5,921
17,544
3,894
61
965
1,561
29,946
Total Revenue
$
32,456
$
92,887
$
50,252
$
12,817
$
18,220
$
8,057
$
214,689
(In thousands)
Mortgage
Banking
Consumer
(Retail) Banking
Commercial and
Corporate
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
Nine-Month Period Ended September 30, 2022:
Net interest income
(1)
$
76,452
$
310,351
$
94,655
$
33,702
$
56,664
$
17,896
$
589,720
Service charges and fees on deposit accounts
-
16,778
9,214
-
446
2,211
28,649
Insurance commissions
(2)
-
10,176
-
-
65
604
10,845
Merchant-related income
-
4,991
1,101
-
54
1,046
7,192
Credit and debit card fees
-
21,271
58
-
(6)
1,298
22,621
Other service charges and fees
287
4,404
2,329
-
1,579
509
9,108
Not in scope of ASC Topic 606
(1)
12,865
1,747
576
(130)
57
(38)
15,077
Total non-interest income
13,152
59,367
13,278
(130)
2,195
5,630
93,492
Total Revenue
$
89,604
$
369,718
$
107,933
$
33,572
$
58,859
$
23,526
$
683,212
(In thousands)
Mortgage
Banking
Consumer
(Retail) Banking
Commercial and
Corporate
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
Nine-Month Period Ended September 30, 2021:
Net interest income
(1)
$
78,106
$
198,577
$
146,837
$
53,378
$
48,684
$
20,209
$
545,791
Service charges and fees on deposit accounts
-
14,518
8,813
-
412
2,039
25,782
Insurance commissions
(2)
-
9,137
-
-
82
555
9,774
Merchant-related income
-
4,710
776
-
39
752
6,277
Credit and debit card fees
-
19,163
62
-
14
1,168
20,407
Other service charges and fees
561
2,729
1,927
-
1,351
438
7,006
Not in scope of ASC Topic 606
(1)
18,613
1,256
352
202
1,110
7
21,540
 
Total non-interest income
19,174
51,513
11,930
202
3,008
4,959
90,786
Total Revenue
$
97,280
$
250,090
$
158,767
$
53,580
$
51,692
$
25,168
$
636,577
(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 nine-month period ended September 30, 2022, the Corporation recognized revenue at the time that payments were confirmed and constraints were released of $
3.2
 
million, compared to $
3.3
 
million
for the nine-month period ended September 30, 2021.
No
 
revenue was recognized during the quarters ended September 30, 2022 and 2021.
For the nine-month periods
 
ended September 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 September
 
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 nine-month periods
 
ended
 
September 30, 2022 and
2021:
Quarter Ended
Nine-Month Period Ended
September 30,
September 30,
(In thousands)
2022
2021
2022
2021
Beginning Balance
$
1,049
$
1,989
$
1,443
$
2,151
Less:
Revenue recognized
(104)
(433)
(498)
(595)
Ending balance
$
945
$
1,556
$
945
$
1,556
Other
Except
 
for
 
the
 
contract
 
liabilities
 
noted
 
above,
 
the
 
Corporation
 
did
 
not
 
have
 
any
 
significant
 
performance
 
obligations
 
as
 
of
September
 
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.