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Note 2 - Revenue Recognition
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]
NOTE
2
–
REVENUE RECOGNITION
 
In accordance with ASC Topic
606,
management determined that the primary sources of revenue, which emanate from interest income on loans and investments, along with noninterest revenue resulting from investment security gains, gains on the sale of loans, and BOLI income, are
not
within the scope of ASC
606.
These revenue sources cumulatively comprise
91.8%
of the total revenue of the Company.
 
The main types of noninterest income within the scope of the standard are as follows:
 
Service charges on deposit accounts
– The Company has contracts with its deposit customers where fees are charged if the account balance falls below predetermined levels defined as compensating balances. These agreements can be cancelled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. The Company also has transaction fees related to specific customer requests or activities that include overdraft fees, online banking fees, and other transaction fees. All of these fees are attributable to specific performance obligations of the Company where the revenue is recognized at a defined point in time, which is completion of the requested service/transaction.
 
Gains (losses) on sale of other real estate owned
(
“
OREO
”
)
– Gains and losses are recognized at the completion of the property sale when the buyer obtains control of the real estate and all of the performance obligations of the Company have been satisfied. Evidence of the buyer obtaining control of the asset include transfer of the property title, physical possession of the asset, and the buyer obtaining control of the risks and rewards related to the asset. In situations where the Company agrees to provide financing to facilitate the sale, additional analysis is performed to ensure that the contract for sale identifies the buyer and seller, the asset to be transferred and the payment terms, that the contract has a true commercial substance and that amounts due from the buyer are reasonable. In situations where financing terms are
not
reflective of current market terms, the transaction price is discounted, impacting the gain/loss and the carrying value of the asset.
 
The following table depicts the disaggregation of revenue derived from contracts with customers to depict the nature, amount, timing, and uncertainty of revenue and cash flows for the
three
months ended
March 31,
 
Noninterest Income
   2020    
2019
  
(Dollar amounts in thousands)
                
Service charges on deposit accounts:                
Overdraft fees
   $
190
     $
248
  
ATM banking fees
    
210
      
194
  
Service charges and other fees
    
153
      
66
  
(Loss) gain on equity securities
(a)
    
(160
 )    
58
  
Earnings on bank-owned life insurance
(a)
    
107
      
105
  
Gain on sale of loans
(a)
    
114
      
59
  
Revenue from investment services
    
131
      
138
  
Other income
    
329
      
264
  
Total noninterest income
   $
1,074
     $
1,132
  
                 
Net gain on other real estate owned
   $
-
     $
43
  
 
(a)
Not
within scope of ASC
606