XML 24 R18.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
REVENUE FROM CONTRACTS WITH CUSTOMERS
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS

9. REVENUE FROM CONTRACTS WITH CUSTOMERS

All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income.

The following tables present the sources of noninterest income for the periods indicated:

 

 

For the Three Months Ended March 31,

 

(In thousands)

 

2024

 

 

2023

 

Service charges on deposits

 

 

 

 

 

 

Overdraft fees

 

$

110

 

 

$

133

 

Interchange income

 

 

247

 

 

 

311

 

Other

 

 

965

 

 

 

814

 

Wealth management fees (A)

 

 

14,407

 

 

 

13,762

 

Corporate advisory fee income

 

 

818

 

 

 

80

 

Other (B)

 

 

2,154

 

 

 

2,959

 

Total noninterest other income

$

18,701

 

 

$

18,059

 

 

(A)
Includes investment brokerage fees.
(B)
All of the other category is outside the scope of ASC 606.

The following table presents the sources of noninterest income by operating segment for the periods indicated:

 

 

 

For the Three Months Ended
 March 31,

 

 

For the Three Months Ended
 March 31,

 

 

 

2024

 

 

2023

 

(In thousands)

 

 

 

 

Wealth

 

 

 

 

 

 

 

 

Wealth

 

 

 

 

Revenue by Operating Segment

 

Banking

 

 

Management

 

 

Total

 

 

Banking

 

 

Management

 

 

Total

 

Service charges on deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overdraft fees

 

$

110

 

 

$

—

 

 

$

110

 

 

$

133

 

 

$

—

 

 

$

133

 

Interchange income

 

 

247

 

 

 

—

 

 

 

247

 

 

 

311

 

 

 

—

 

 

 

311

 

Other

 

 

965

 

 

 

—

 

 

 

965

 

 

 

814

 

 

 

—

 

 

 

814

 

Wealth management fees (A)

 

 

—

 

 

 

14,407

 

 

 

14,407

 

 

 

—

 

 

 

13,762

 

 

 

13,762

 

Corporate advisory fee income

 

 

818

 

 

 

—

 

 

 

818

 

 

 

80

 

 

 

—

 

 

 

80

 

Other (B)

 

 

1,947

 

 

 

207

 

 

 

2,154

 

 

 

2,497

 

 

 

462

 

 

 

2,959

 

Total noninterest income

 

$

4,087

 

 

$

14,614

 

 

$

18,701

 

 

$

3,835

 

 

$

14,224

 

 

$

18,059

 

 

(A)
Includes investment brokerage fees.
(B)
All of the other category is outside the scope of ASC 606.

 

A description of the Company’s revenue streams accounted for under ASC 606 follows:

Service charges on deposit accounts: The Company earns fees from its deposit customers for certain transaction account maintenance, and overdraft fees. 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 as that is the point in 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. Service charges on deposits are withdrawn from the customer’s account balance.

Interchange income: The Company earns interchange fees from debit cardholder transactions conducted through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Interchange income is presented gross of cardholder rewards. Cardholder rewards are included in other expenses in the statement of income. Cardholder rewards reduced interchange income for both the first quarters of 2024 and 2023 by $2,000.

Wealth management fees (gross): The Company earns wealth management fees from its contracts with wealth management clients to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Company charges its clients on a monthly or quarterly basis in accordance with its investment advisory agreements. Fees are generally assessed based on a tiered scale of the market value of AUM at month end. Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed (i.e. trade date).

Investment brokerage fees (net): The Company earns fees from investment brokerage services provided to its customers by a third-party service provider. The Company receives commissions from the third-party service provider twice a month based upon customer activity for the month. The fees are recognized monthly, and a receivable is recorded until commissions are generally paid by the 15th of the following month. Because the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, investment brokerage fees are presented net of related costs.

Corporate advisory fee income: The Company provides our clients with financial advisory and underwriting services. Investment banking revenues, which includes mergers and acquisition advisory fees and private placement fees, are recorded when the performance obligation for the transaction is satisfied under the terms of each engagement. Reimbursed expenses are reported in other revenue on the statement of operations. Expenses related to investment banking are recognized as non-compensation expenses on the statement of operations. Amounts received and unearned are included on the statement of financial condition. Expenses related to investment banking deals not completed are recognized in non-compensation expenses on the statement of operations.

The Company’s mergers and acquisition advisory fees generally consist of a nonrefundable up-front fee and success fee. The nonrefundable fee is recorded as deferred revenue upon receipt and recognized at a point in time when the performance obligation is satisfied, or when the transaction is deemed by management to be terminated. Management’s judgment is required in determining when a transaction is considered to be terminated.

Other: All of the other income items are outside the scope of ASC 606.