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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
All of the Company’s revenue from contracts with customers in the scope of Topic 606 is recognized within noninterest income. The following table presents the Company’s noninterest income by revenue stream for the years ended December 31:
20222021
(dollars in thousands)
Deposit service charges and fees
Interchange income$2,055 $1,959 
Merchant service fees508 568 
Overdraft fees310 316 
Other931 855 
Loan referral fees810 2,126 
Mortgage broker fees257 920 
BaaS program income (1)
12,934 6,716 
Other income (2)
346 393 
Total noninterest income subject to Topic 60618,151 13,853 
BaaS enhancements / guarantees (1)
105,945 10,591 
Gain (loss) on equity investment(153)1,469 
Gain on sale of branch— 1,263 
Gain on sale of loans, net— 396 
Loan servicing fees223 248 
Earnings on life insurance361 172 
Lease and sublease income157 126 
Total noninterest income not subject to Topic 606106,533 14,265 
Total noninterest income$124,684 $28,118 
(1)See description below for detailed components of BaaS fees and related Topic 606 applicability.
(2)Includes the following immaterial income streams that are within the scope of Topic 606: wire transfer fees, annuity fees, and brokerage fees.
A description of the Company’s revenue streams accounted for under Topic 606 is as follows:
Service Charges on Deposit Accounts: The Company earns fees from 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, and ACH fees, are recognized at the time the transaction is executed at the point in the time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs.
Interchange Income: The Company earns interchange fees from debit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transactions value and are recognized daily, concurrently with the transaction processing services provided by the cardholder. Interchange income is included in Service Charges on Deposit Accounts in the consolidated statements of income.
Merchant Service Fees: The Company earns a percentage of fees from cardholder transactions conducted through a third-party payment network provider. The Company is obligated to provide sales, customer support, marketing, deployment and installation of equipment, and savings analysis to merchant service customers. An exclusivity agreement is in place between the Company and the third-party payment network provider. Fees are recognized on a monthly basis, as earned. Merchant service fees are included in Services Charges on Deposit Accounts in the consolidated statements of income.
Loan Referral Fees: The Company earns loan referral fees when the Company originates a variable rate loan and the borrower enters into an interest rate swap agreement with a third party to fix the interest rate for an extended period, usually 20 or 25 years. The Company recognizes the loan referral fee for arranging the interest rate swap.
Mortgage Broker Fees: Mortgage broker fees are governed by contract arrangements executed with a third-party mortgage company. The Company earns broker fees by partially underwriting mortgage loans and referring qualified loans to the third-party mortgage company. Revenue is recognized at the date the mortgage company funds the mortgage loan. The contract arrangement includes a fee reimbursement requirement for funded mortgage loans that pay off within three months of origination.
BaaS Fees: The Company earns fees and is reimbursed for certain expenses, as specified in the program agreement, for providing banking services to broker-dealers and digital financial service providers. Earned program fees and reimbursement of expenses are recorded gross and recognized on a monthly basis, as earned. Credit enhancements for fraud and credit losses are not within the scope of Topic 606.
The following tables presents the BaaS fees that are within and not within the scope of Topic 606:
Year Ended
December 31,		Increase
(Decrease)
(dollars in thousands) 20222021
Program income - within the scope of Topic 606
Servicing and other BaaS fees$4,408 $4,467 $(59)
Transaction3,211 544 2,667 
Interchange2,583 701 1,882 
Reimbursement of expenses2,732 1,004 1,728 
Total BaaS program income12,934 6,716 6,218 
Guarantees - not within the scope of Topic 606:
BaaS credit enhancement76,374 9,086 67,288 
BaaS fraud enhancement29,571 1,505 28,066 
Total BaaS enhancements / guarantees105,945 10,591 95,354 
Total BaaS fees$118,879 $17,307 $101,572