v3.26.1
Note 20 - Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

NOTE 20 – REVENUE FROM CONTRACTS WITH CUSTOMERS

 

The following is a summary of revenue from contracts with customers that are in-scope and not in-scope under ASC Topic 606 for the periods indicated:

 

  

For the Three Months Ended

  

For the Six Months Ended June 30,

 
  

June 30, 2026

  

March 31, 2026

  

June 30, 2025

  

2026

  

2025

 

Noninterest income, in scope

 

(dollars in thousands)

 

Fees and service charges on deposit accounts

 $505  $481  $475  $986  $949 

Other fees (1)

  169   151   321   320   417 

Other income (2)

  599   551   585   1,150   1,128 

(Loss)/gain on OREO

  (221)  890   —   669   — 

Total in-scope noninterest income

  1,052   2,073   1,381   3,125   2,494 

Noninterest income, not in scope (3)

  1,966   2,178   7,097   4,144   8,279 

Total noninterest income

 $3,018  $4,251  $8,478  $7,269  $10,773 

 

 

(1)

Other fees consist primarily of wealth management fees, miscellaneous loan fees and postage/courier fees.

 

(2)

Other income consists primarily of safe deposit box rental income, wire transfer fees, security brokerage fees, annuity sales, insurance activity, OREO income, and gain on sale of fixed assets.

 

(3)

Noninterest income outside the scope of ASC 606 consists primarily of net loan servicing income, letter of credit commissions, BOLI income, gains on sales of loans, other income from equity investments, recoveries on loans acquired in a business combination and other grant income including the Employee Retention Tax Credit of $5.2 million received in the second quarter of 2025.

 

The major revenue streams by fee type that are within the scope of ASC 606 presented in the above tables are described in additional detail below:

 

Fees and Services Charges on Deposit Accounts

 

Fees and service charges on deposit accounts include charges for analysis, overdraft, cashier's check fees, ATM, and safe deposit activities executed by our deposit clients, as well as interchange income earned through card payment networks for the acceptance of card based transactions. Fees earned from our deposit clients are governed by contracts that provide for overall custody and access to deposited funds and other related services and can be terminated at will by either party; this includes fees from money service businesses. Fees received from deposit clients for the various deposit activities are recognized as revenue once the performance obligations are met. Periodic service charges are generally collected monthly directly from the customer’s deposit account, and at the end of a statement cycle, while transaction based service charges are typically collected at the time of or soon after the service is performed.

 

Wealth Management Fees

 

In our wealth management division, revenue is primarily generated from (1) securities brokerage accounts, (2) investment advisor accounts, (3) full service brokerage implementation fees, and (4) life insurance and annuity products. We employ financial consultants to provide investment planning services for customers including wealth management services, asset allocation strategies, portfolio analysis and monitoring, investment strategies, and risk management strategies. The commission fees we earn are variable and are generally received monthly. We recognize revenue for the services performed based on actual transaction details received from the broker dealer we engage.

 

Gain/(loss) on Other Real Estate Owned

 

We record a gain or loss from the sale of OREO, when control of the property or asset transfers to the buyer, which generally occurs at the time of an executed deed or sales agreement. When we finance the sale of OREO to a buyer, we assess whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon transfer of control of the property to the buyer. In determining the gain or loss on the sale, we adjust the transaction price and related gain or loss on sale if a significant financing component is present. Periodic valuation gains or losses based on the changes in the value of the OREO after repossession are also recorded in (loss)/gain on OREO.