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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 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.

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For the Three Months

Ended September 30,

 

For the Nine Months

Ended September 30,

(In thousands)

 

2020

 

2019

 

2020

 

2019

Fee revenue and other income

 

 

 

 

 

 

 

 

 

 

 

 

In-scope of FASB ASC 606

 

 

 

 

 

 

 

 

 

 

 

 

Invoice processing fees

 

$

18,650

 

$

20,408

 

$

55,697

 

$

61,397

Invoice payment fees

 

 

5,726

 

7,333

 

 

16,843

 

19,653

Information services payment and processing revenue

 

 

24,376

 

27,741

 

 

72,540

 

81,050

Bank service fees

 

 

441

 

307

 

 

1,249

 

984

Fee revenue (in-scope of FASB ASC 606)

 

 

24,817

 

28,048

 

 

73,789

 

82,034

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

 

 

115

 

214

 

 

1,412

 

613

Total fee revenue and other income

 

 

24,932

 

28,262

 

 

75,201

 

82,647

 

 

 

 

 

 

 

 

 

 

 

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

 

 

10,814

 

12,274

 

 

32,623

 

35,653

Total net revenue

 

$

35,746

 

$

40,536

 

$

107,824

 

$

118,300

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 revenue, but is out-of-scope of FASB ASC 606.