FIRST CAPITAL INC Revenue Disclosure
| (21) | REVENUE FROM CONTRACTS WITH CUSTOMERS |
Substantially all of the Company’s revenue from contracts with customers in the scope of FASB ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income and other income within the scope of FASB ASC 606 for the years ended December 31, 2025, 2024 and 2023:
Years Ended December 31, | |||||||||
(In thousands) | 2025 | | 2024 | | 2023 | ||||
In Scope for ASC 606 | |
| |
| | ||||
Service charges on deposit accounts | $ | 2,450 | $ | 2,402 | $ | 2,343 | |||
ATM and debit card fees |
| 4,540 |
| 4,467 |
| 4,489 | |||
Other |
| 180 |
| 190 |
| 177 | |||
Revenue from contracts with customers |
| 7,170 |
| 7,059 |
| 7,009 | |||
Out of Scope for ASC 606 |
| |
| |
| | |||
Net gains on loans and investments |
| 847 |
| 212 |
| 254 | |||
Increase in cash value of life insurance |
| 222 |
| 224 |
| 206 | |||
Other |
| 226 |
| 161 |
| 163 | |||
Other noninterest income |
| 1,295 |
| 597 |
| 623 | |||
Total noninterest income | $ | 8,465 | $ | 7,656 | $ | 7,632 | |||
A description of the Company’s revenue streams accounted for under FASB ASC 606 follows:
Service Charges on Deposit Accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as stop payment charges and statement rendering, 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.
ATM and Debit Card Fees: The Company earns ATM usage fees and interchange fees from debit cardholder transactions conducted through a payment network. ATM fees are recognized at the point in time the transaction occurs. 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.
Other Income: Other income from contracts with customers includes safe deposit box fees, investment advisory income, and ACH origination fees. This revenue is recognized at the time the transaction is executed or over the period the Company satisfies the performance obligation.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 22, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 15, 2021 | |
| 2019 | Mar 16, 2020 | |
| 2018 | Mar 13, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.