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REVENUE FROM CONTRACTS WITH CUSTOMERS
 6 Months Ended
Jun. 30, 2023
REVENUE FROM CONTRACTS WITH CUSTOMERS [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS
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
 
tables summarize
 
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, 2023
and 2022:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended June 30, 2023
Mortgage
Banking
Consumer
(Retail)
Banking
Commercial
and Corporate
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
Net interest income
(1)
$
21,360
$
142,597
$
12,933
$
(2,789)
$
19,690
$
6,024
$
199,815
Service charges and fees on deposit accounts
-
5,087
3,326
-
172
702
9,287
Insurance commissions
-
2,464
-
-
79
204
2,747
Merchant-related income
-
2,035
-
-
39
385
2,459
Credit and debit card fees
-
8,117
28
-
10
521
8,676
Other service charges and fees
33
1,508
1,094
-
660
207
3,502
Not in scope of ASC Topic
 
606
 
(1)
3,029
1,010
3,697
1,680
195
(11)
9,600
 
Total non-interest income
3,062
20,221
8,145
1,680
1,155
2,008
36,271
Total Revenue
$
24,422
$
162,818
$
21,078
$
(1,109)
$
20,845
$
8,032
$
236,086
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended June 30, 2022
Mortgage
Banking
Consumer
(Retail)
Banking
Commercial
and Corporate
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
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
-
2,724
-
-
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six-Month Period Ended June 30, 2023
Mortgage
Banking
Consumer
(Retail)
Banking
Commercial and
Corporate
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
Net interest income
(1)
$
43,148
$
280,341
$
27,873
$
(3,447)
$
40,620
$
12,165
$
400,700
Service charges and fees on deposit accounts
-
10,573
6,480
-
337
1,438
18,828
Insurance commissions
-
7,104
-
-
107
383
7,594
Merchant-related income
-
4,298
-
-
68
853
5,219
Credit and debit card fees
-
15,755
50
-
12
1,017
16,834
Other service charges and fees
194
2,660
1,948
-
1,243
551
6,596
Not in scope of ASC Topic
 
606
 
(1)
5,942
1,865
3,842
1,840
235
(6)
13,718
 
Total non-interest income
6,136
42,255
12,320
1,840
2,002
4,236
68,789
Total Revenue
$
49,284
$
322,596
$
40,193
$
(1,607)
$
42,622
$
16,401
$
469,489
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six-Month Period Ended June 30, 2022
Mortgage
Banking
Consumer
(Retail)
Banking
Commercial and
Corporate
Treasury and
Investments
United States
Operations
Virgin Islands
Operations
Total
(In thousands)
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
-
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
(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.
For the quarters
 
and six-month periods
 
ended June 30,
 
2023 and 2022,
 
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
 
26
 
–
 
Revenue
 
from
 
Contracts
 
with
 
Customers,
 
to
 
the
 
audited
 
consolidated
 
financial
 
statements
 
included
 
in
 
the
 
2022
Annual Report on Form 10-K for a discussion of major revenue streams under
 
the scope of ASC Topic 606.
Contract Balances
A
contract
 
liability
 
is
 
an
 
entity’s
 
obligation
 
to
 
transfer
 
goods
 
or
 
services
 
to
 
a
 
customer
 
in
 
exchange
 
for
 
consideration
 
from
 
the
customer.
 
FirstBank
 
participates
 
in
 
a
 
merchant
 
revenue-sharing
 
agreement
 
with
 
another
 
entity
 
to
 
which
 
the
 
Bank
 
sold
 
its
 
merchant
contracts portfolio and related point-of-sale terminals,
 
and a growth agreement with an international
 
card service association to expand
the
 
customer
 
base
 
and
 
enhance
 
product
 
offerings.
 
FirstBank
 
recognizes
 
the
 
revenue
 
under
 
these
 
agreements
 
over
 
time, as
 
the
 
Bank
completes its performance obligations.
The following table shows the activity of contract liabilities for the quarters
 
and six-month periods ended June 30, 2023 and 2022:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended June 30,
 
Six-Month Period Ended June 30,
 
2023
2022
2023
2022
(In thousands)
Beginning balance
$
760
$
1,154
$
841
$
1,443
 
Revenue recognized
(152)
(105)
(233)
(394)
Ending balance
$
608
$
1,049
$
608
$
1,049
As of June 30, 2023 and 2022, there were no contract assets recorded on the
 
Corporation’s consolidated financial
 
statements.
Other
 
Except for the
 
contract liabilities noted above,
 
the Corporation did not
 
have any other performance
 
obligations as of
 
June 30, 2023.
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.