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Revenue Recognition
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

NOTE 13. Revenue Recognition

 

Substantially all of the Company's revenue from contracts with customers that is within the scope of ASC 606, "Revenue from Contracts with Customers" is reported within noninterest income. A limited amount of other in-scope items such as gains and losses on other real estate owned are recorded in noninterest expense. The recognition of interest income and certain sources of noninterest income (e.g. gains on securities transactions, bank owned life insurance income, etc.) are governed by other areas of U.S. GAAP. Significant revenue streams that are within the scope of ASC 606 and included in noninterest income are discussed in the following paragraphs.

Income from Fiduciary Activities

Trust asset management fee 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.

Service Charges on Deposit Accounts

Service charges on deposit accounts are principally comprised of overdrawn account fees, account maintenance charges and other activity based fees. The Company’s performance obligations on revenue generated from deposit accounts are generally satisfied immediately, when the transaction occurs, or by month-end. Typically, the duration of a contract does not extend beyond the services performed. Due to the short duration of most customer contracts which generate these sources of noninterest income, no significant judgments must be made in the determination of the amount and timing of revenue recognized.

Other Service Charges and Fees

The majority of the Company’s noninterest income is derived from short term contracts associated with services provided for other ancillary services such as ATM fees, brokerage commissions and loan servicing fees. The Company’s performance

obligations on revenue generated from these ancillary services are generally satisfied immediately, when the transaction occurs, or by month-end. Typically, the duration of a contract does not extend beyond the services performed. Due to the short duration of most customer contracts which generate these sources of noninterest income, no significant judgments must be made in the determination of the amount and timing of revenue recognized.

The Company earns interchange fees from credit cardholder transactions conducted through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized no less than monthly.

Noninterest income (loss) and the related amounts that are from contracts with customers within the scope of ASC 606 disaggregated by major source, for the three and nine months ended September 30, 2025 and 2024 consisted of the following:

 

 

 

Three Months Ended
September 30,

 

 

Three Months Ended
September 30,

 

 

 

2025

 

 

2024

 

 

 

Revenue (1)

 

 

ASC 606 Revenue (2)

 

 

Revenue (1)

 

 

ASC 606 Revenue (2)

 

 

 

(in thousands)

 

Noninterest income :

 

 

 

 

 

 

 

 

 

 

 

 

Wealth management fees

 

 

 

 

 

 

 

 

 

 

 

 

Trust asset management fees

 

$

1,428

 

 

$

1,428

 

 

$

1,163

 

 

$

1,163

 

Brokerage commissions

 

 

399

 

 

 

399

 

 

 

352

 

 

 

352

 

Service charges on deposit accounts

 

 

 

 

 

 

 

 

 

 

 

 

Overdrawn account fees

 

 

425

 

 

 

425

 

 

 

406

 

 

 

406

 

Monthly and other service charges

 

 

133

 

 

 

133

 

 

 

112

 

 

 

112

 

Other service charges and fees:

 

 

 

 

 

 

 

 

 

 

 

 

Interchange fees

 

 

906

 

 

 

906

 

 

 

868

 

 

 

868

 

ATM fees

 

 

98

 

 

 

98

 

 

 

95

 

 

 

95

 

Other charges and fees

 

 

147

 

 

 

169

 

 

 

154

 

 

 

167

 

(Loss) on the sale and disposal of bank premises and equipment

 

 

(2

)

 

 

(2

)

 

 

—

 

 

 

—

 

Gain on sale of loans

 

 

1,012

 

 

 

—

 

 

 

627

 

 

 

—

 

Small business investment company income

 

 

58

 

 

 

—

 

 

 

496

 

 

 

—

 

Bank owned life insurance income

 

 

268

 

 

 

—

 

 

 

930

 

 

 

—

 

Other operating income

 

 

293

 

 

 

103

 

 

 

48

 

 

 

37

 

Total noninterest income

 

$

5,165

 

 

$

3,659

 

 

$

5,251

 

 

$

3,200

 

 

(1)
As reported in the Unaudited Consolidated Statements of Income.
(2)
Revenue from contracts with customers in scope of ASC 606.

 

 

 

Nine Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2025

 

 

2024

 

 

 

Revenue (1)

 

 

ASC 606 Revenue (2)

 

 

Revenue (1)

 

 

ASC 606 Revenue (2)

 

 

 

(in thousands)

 

Noninterest income :

 

 

 

 

 

 

 

 

 

 

 

 

Wealth management fees

 

 

 

 

 

 

 

 

 

 

 

 

Trust asset management fees

 

$

4,056

 

 

$

4,056

 

 

$

3,227

 

 

$

3,227

 

Brokerage commissions

 

 

1,102

 

 

 

1,102

 

 

 

1,017

 

 

 

1,017

 

Service charges on deposit accounts

 

 

 

 

 

 

 

 

 

 

 

 

Overdrawn account fees

 

 

1,189

 

 

 

1,189

 

 

 

1,109

 

 

 

1,109

 

Monthly and other service charges

 

 

378

 

 

 

378

 

 

 

319

 

 

 

319

 

Other service charges and fees:

 

 

 

 

 

 

 

 

 

 

 

 

Interchange fees

 

 

2,671

 

 

 

2,671

 

 

 

2,575

 

 

 

2,575

 

ATM fees

 

 

282

 

 

 

282

 

 

 

268

 

 

 

268

 

Other charges and fees

 

 

230

 

 

 

263

 

 

 

407

 

 

 

398

 

(Loss) on the sale and disposal of bank premises and equipment

 

 

(18

)

 

 

(18

)

 

 

(11

)

 

 

(11

)

(Loss) on sale of securities

 

 

(12,425

)

 

 

—

 

 

 

—

 

 

 

—

 

Gain on sale of loans

 

 

2,545

 

 

 

—

 

 

 

1,280

 

 

 

—

 

Small business investment company income

 

 

211

 

 

 

—

 

 

 

882

 

 

 

—

 

Bank owned life insurance income

 

 

819

 

 

 

—

 

 

 

1,721

 

 

 

—

 

Other operating income

 

 

488

 

 

 

273

 

 

 

242

 

 

 

213

 

Total noninterest income

 

$

1,528

 

 

$

10,196

 

 

$

13,036

 

 

$

9,115

 

 

(1)
As reported in the Unaudited Consolidated Statements of Income.
(2)
Revenue from contracts with customers in scope of ASC 606.

 

Contract Balances

The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of September 30, 2025 and December 31, 2024, the Company did not have any significant contract balances.