Revenue Recognition

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

The Company records revenue from contracts with customers in accordance with ASU 2014-09, Revenue from Contracts with Customers (“Topic 606”). The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities, which comprise the majority of the Company’s revenue.

The Company’s revenue streams that are within the scope of Topic 606 include service charges on deposit accounts, ATM and card interchange fees, investment services fees, and other miscellaneous income. Fees and service charges for customer services include: (i) service charges on deposit accounts, including account maintenance fees, overdraft fees, insufficient funds fees, wire fees, and other deposit related fees; (ii) ATM and card interchange fees, which include fees generated when a Bank cardholder uses a non-Bank ATM or a non-Bank cardholder uses a Bank ATM, and fees earned whenever the Bank's debit cards are processed through card payment networks such as Visa; and (iii) investment services fees earned through partnering with a third party investment and brokerage service firm to provide insurance and investment products to customers. The Company's performance obligation for fees and service charges is satisfied and related revenue recognized immediately or in the month of performance of services. Other income includes rental income from subleasing one of the Company's branches to a third party and income and gains or losses, net, related to OREO. For these transactions, revenue is recognized at the time the transaction occurs.

The following table summarizes non-interest income for the periods indicated (dollars in thousands):



	Three Months Ended
	March 31,
	2019		2018
Fees and service charges for customer services:
Service charges	$	782	841
ATM and card interchange fees	301		267
Investment fees	57		106
Total fees and service charges for customer services	1,140		1,214
Income on bank owned life insurance⁽¹⁾	896		954
Gains on securities transactions, net ⁽¹⁾	1,241		161
Other	37		76
Total non-interest income	$	3,314	$	2,405

⁽¹⁾Not in scope of Topic 606