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Revenue From Contracts With Customers
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers

NOTE 7 – REVENUE FROM CONTRACTS WITH CUSTOMERS

ChoiceOne has a variety of sources of revenue, which include interest and fees from customers as well as revenue from non-customers. ASC Topic 606, Revenue from Contracts with Customers, covers certain sources of revenue that are classified within noninterest income in the Consolidated Statements of Income. Sources of revenue that are included in the scope of ASC Topic 606 include service charges and fees on deposit accounts, interchange income, investment asset management income and transaction-based revenue, and other charges and fees for customer services.

Customer service charges

Revenue includes charges and fees to provide account maintenance, overdraft services, wire transfers, funds transfer, and other deposit-related services. Account maintenance fees such as monthly service charges are recognized over the period of time that the service is provided. Transaction fees such as wire transfer charges are recognized when the service is provided to the customer.

Interchange income

Revenue includes debit card interchange and network revenues. This revenue is earned on debit card transactions that are conducted through payment networks. The revenue is recorded as services are delivered and is presented net of interchange expenses.

Insurance and investment commission income

Revenue includes fees from the investment management advisory services and revenue is recognized when services are rendered. Revenue also includes commissions received from the placement of brokerage transactions for purchase or sale of stocks or other investments and commission income is recognized when the transaction has been completed. The Company earns commissions from the sale of life insurance and credit life insurance products. Revenue is recognized at the time the policy is sold, as the Company’s performance obligation is satisfied upon completion of the sale.

Trust fee income

Revenue includes fees from the management of trust assets and from other related advisory services. Revenue is recognized when services are rendered.

Following is noninterest income separated by revenue within the scope of ASC 606 and revenue within the scope of other GAAP topics:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

 

 

September 30,

 

(Dollars in thousands)

2025

 

 

2024

 

 

2025

 

 

2024

 

Customer service charges

$

1,729

 

 

$

1,249

 

 

$

4,311

 

 

$

3,537

 

Interchange income

 

2,133

 

 

 

1,524

 

 

 

5,725

 

 

 

4,303

 

Insurance and investment commissions

 

485

 

 

 

184

 

 

 

1,320

 

 

 

572

 

Trust fee income

 

734

 

 

 

232

 

 

 

1,836

 

 

 

665

 

Other charges and fees for customer services

 

204

 

 

 

162

 

 

 

563

 

 

 

409

 

Noninterest income from contracts with customers
within the scope of ASC 606

 

5,285

 

 

 

3,351

 

 

 

13,755

 

 

 

9,486

 

Noninterest income within the scope of other GAAP topics

 

1,859

 

 

 

1,516

 

 

 

4,814

 

 

 

3,515

 

Total noninterest income

$

7,144

 

 

$

4,867

 

 

$

18,569

 

 

$

13,001