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Revenue Recognition
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
The Company recognizes revenue in accordance with ASU 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification (“ASC”) Topic 606) (“ASC 606”), and all subsequent ASUs that modified ASC 606. ASC 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of ASC 606. ASC 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions.

Insurance Commissions and Fees
Insurance commissions and fees from insurance product sales are typically earned upon the effective date of bound coverage, as no significant performance obligation remains after coverage is bound. Commission revenue on policies billed in installments is accrued based upon the completion of the performance obligation creating a current asset for the unbilled revenue until such time as an invoice is generated, typically not to exceed twelve months. Contingent commissions are estimated based upon management’s expectations for the year with an appropriate constraint applied and accrued relative to the recognition of the corresponding core commissions.

Trust & Asset Management
Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. Optional services such as real estate sales and tax return preparation services are also available to existing trust and asset management customers. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered.

Mutual Fund & Investment Income
The Company also earns transaction fees and commissions related to product sales that represent the Company’s share of transaction fees resulting from investment services and programs provided through an agent relationship with a third-party
broker-dealer. Those fees are collected and recognized on a monthly basis. Trailing fees are based upon fair values and are assessed, collected and recognized on a quarterly basis. Tompkins Community Bank acts as an agent in arranging the relationship between the customer and the third-party provider and does not control the services rendered; therefore, investment product sales commissions and fees are reported net of related costs.

Service Charges on Deposit Accounts
Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts.

Card Services Income
Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as MasterCard. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. The Company’s performance obligation for fees and exchange are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month.

Other
Other service charges include revenue from processing wire and ACH transfers, lock box service and safe deposit box rental. Payment on these revenue streams is received primarily through a direct charge to the customer’s account, immediately or in the following month, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time.

The following tables present noninterest income, segregated by revenue streams in-scope and out-of-scope of ASC 606, for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended
(In thousands)09/30/202409/30/2023
Noninterest Income
In-scope of Topic 606:
Commissions and Fees$10,159 $10,301 
Installment Billing120 138 
Refund of Commissions(95)(60)
Contract Liabilities/Deferred Revenue0 0 
Contingent Commissions1,099 1,018 
Subtotal Insurance Revenues11,283 11,397 
Trust and Asset Management4,632 3,423 
Mutual Fund & Investment Income293 919 
Subtotal Investment Service Income4,925 4,342 
Service Charges on Deposit Accounts1,872 1,754 
Card Services Income2,921 2,860 
Other306 314 
Noninterest Income (in-scope of ASC 606)21,307 20,667 
Noninterest Income (out-of-scope of ASC 606)2,078 (62,291)
Total Noninterest Income$23,385 $(41,624)
Nine Months Ended
(In thousands)9/30/20249/30/2023
Noninterest Income
In-scope of Topic 606:
Commissions and Fees$27,553 $26,796 
Installment Billing115 97 
Refund of Commissions(75)113 
Contract Liabilities/Deferred Revenue(289)(298)
Contingent Commissions3,325 2,870 
Subtotal Insurance Revenues30,629 29,578 
Trust and Asset Management13,541 10,494 
Mutual Fund & Investment Income1,170 3,035 
Subtotal Investment Service Income14,711 13,529 
Service Charges on Deposit Accounts5,434 5,140 
Card Services Income9,138 8,629 
Other930 989 
Noninterest Income (in-scope of ASC 606)60,842 57,865 
Noninterest Income (out-of-scope of ASC 606)6,456 (66,474)
Total Noninterest Income$67,298 $(8,609)

Contract Balances
A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration or before payment is due, which would result in contract receivables or assets, respectively. A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment or for which payment is due from the customer. The Company’s noninterest revenue streams, excluding some insurance commissions and fees, are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Receivables primarily consist of amounts due for insurance and wealth management services performed for which the Company's performance obligations have been fully satisfied. Receivables for the insurance and wealth management services segments amounted to $6.1 million and $3.7 million, respectively, at September 30, 2024, compared to $5.7 million and $3.0 million, respectively, at December 31, 2023. Included in those amounts are contract assets related to contingent income of $2.2 million and $2.8 million, respectively, at September 30, 2024 and December 31, 2023, and contract liabilities of $0.6 million and $1.9 million, respectively, at September 30, 2024 and December 31, 2023.

Contract Acquisition Costs
The Company is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less.