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Note 2 - Revenue Recognition
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

NOTE 2 – REVENUE RECOGNITION

 

Following ASC Topic 606, Revenue from Contracts with Customers (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 equity security gains (losses), gains on the sale of loans, rental income, BOLI income, and gain on exchange of real estate, are not within the scope of ASC 606. For the nine months ended September 30, 2025, these revenue sources cumulatively comprise 94.3% 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 whereby fees are charged if the account balance falls below predetermined levels defined as compensating balances. These agreements can be canceled at any time by either the Company or the deposit customer. Revenue from these transactions is recognized monthly 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 the completion of the requested service/transaction.

 

Revenue from investment services – The Company earns investment services revenue through its referral agreement with LPL Financial. The performance obligation to investment management customers is satisfied over time, and therefore, revenue is recognized over time. The Company generally receives trailing investment services revenue in arrears and recognizes the revenue when the monthly statement with referral revenue is received.

 

Miscellaneous fee income – Fees earned on other services, such as ATM surcharge fees, money order fees, and check fees, are recognized at the time of the event or the applicable billing cycle.

 

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 September 30,

    

For the Nine Months Ended September 30,

  

(Dollar amounts in thousands)

     2025       2024       2025       2024  

Service charges on deposit accounts:

                                

Overdraft fees

   $ 268     $ 249     $ 787     $ 748  

ATM banking fees

     479       489       1,394       1,419  

Service charges and other fees

     324       221       941       672  

Gain (loss) on equity securities ⁽ª⁾

     17       14       (24 )     (65 )

Earnings on bank-owned life insurance ⁽ª⁾

     228       246       951       700  

Gain on sale of loans ⁽ª⁾

     158       56       221       135  

Revenue from investment services

     306       206       884       679  

Gain on exchange of real estate ⁽ª⁾

     -       -       1,229       -  

Miscellaneous fee income

     105       106       295       301  

Gross rental income ⁽ª⁾

     -       -       -       67  

Other income

     439       156       668       643  

Total noninterest income

   $ 2,324     $ 1,743     $ 7,346     $ 5,299  

 

(a) Not within scope of ASC 606