XML 57 R21.htm IDEA: XBRL DOCUMENT v3.20.1
Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers

Note 13 – Revenue from Contracts with Customers

The services that fall within the scope of FASB ASC 606, Revenue from Contracts with Customers (“FASB ASC 606”) are presented within fee revenue and other income in the Consolidated Statements of Income and are recognized as revenue as the obligation to the customer is satisfied. Services within the scope of FASB ASC 606 include invoice processing and payment fees, bank service fees, and other real estate owned (“OREO”). Since interest income on loans and securities are both excluded from this topic, a significant portion of the Company’s revenues are not subject to the guidance.

Invoice processing fees – The Company earns fees on a per-item or monthly basis for the invoice processing services rendered on behalf of customers. Per-item fees are recognized at the point in time when the performance obligation is satisfied. Monthly fees are earned over the course of a month, representing the period over which the performance obligation is satisfied. The contracts have no significant impact of variable consideration and no significant financing components.

Invoice payment fees – The Company earns fees on a transaction level basis for invoice payment services when making customer payments. Fees are recognized at the point in time when the payment transactions are made, which is when the performance obligation is satisfied. The contracts have no significant impact of variable consideration and no significant financing components.

Bank service fees – Revenue from service fees consists of service charges and fees on deposit accounts under depository agreements with customers to provide access to deposited funds. Service charges on deposit accounts are transaction based fees that are recognized at the point in time when the performance obligation is satisfied. Service charges are recognized on a monthly basis representing the period over which the performance obligation is satisfied. The contracts have no significant impact of variable consideration and no significant financing components.

OREO – The Company currently does not have any OREO and has not in recent years. Net gains or losses would be recorded when other real estate is sold to a third party and substantially all of the consideration for the transfer of property is received.

-18-

For the Three Months

Ended March 31,

(In thousands)

2020

2019

Fee revenue and other income

In-scope of FASB ASC 606

Invoice processing fees

$

19,124

$

20,542

Invoice payment fees

6,379

5,915

Information services payment and processing revenue

25,503

26,457

Bank service fees

410

376

Fee revenue (in-scope of FASB ASC 606)

25,913

26,833

Other income (out-of-scope of FASB ASC 606)

1,182

180

Total fee revenue and other income

27,095

27,013

 

Net interest income after provision for loan losses (out-of-scope of  FASB ASC 606)1

11,048

11,357

Total net revenue

$

38,143

$

38,370

1

The Company earns interest income from the balances generated during the invoice processing and payment cycle and on deposit accounts, which is an integral component of the Company’s compensation; but, is out-of-scope of FASB ASC 606.