XML 74 R24.htm IDEA: XBRL DOCUMENT v3.20.1
Note 15 - Revenue Recognition
 3 Months Ended
Mar. 31, 2020
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]
Note
15.
Revenue Recognition
 
On
January 1, 2018,
the Company adopted ASU
No.
2014
-
09,
"Revenue from Contracts with Customers: Topic
606"
and all subsequent ASUs that modified Topic
606.
Most revenue associated with financial instruments, including interest income, loan origination fees, and credit card fees, is outside the scope of the guidance. Gains and losses on investment securities, derivatives, financial guarantees, and sales of financial instruments are similarly excluded from the scope. The guidance is applicable to noninterest revenue streams such as service charges on deposit accounts, ATM and check card fees, wealth management fees, and fees for other customer services. Noninterest revenue streams within the scope of Topic
606
are discussed below.
 
Service charges on deposit accounts
 
Service charges on deposit accounts consist of monthly service fees, overdraft and nonsufficient funds fees, and other deposit account related fees. The Company's performance obligation for monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers' accounts. Overdraft and nonsufficient funds fees and other deposit account related fees are transactional based, and therefore, the Company's performance obligation is satisfied, and related revenue recognized, at a point in time.
 
ATM and check card fees
 
ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. ATM fees are transactional based, and therefore, the Company's performance obligation is satisfied, and related revenue recognized, at a point in time. Check card fees are primarily comprised of interchange fee income. Interchange fees are earned whenever the Company's debit cards are processed through card payment networks, such as Visa. The Company's performance obligation for interchange fee income is largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. In compliance with Topic
606,
debit card fee income is presented net of associated expense.
 
Wealth management fees
 
Wealth management fees are primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company's performance obligation is generally satisfied over time and the resulting fees are primarily recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month-end through a direct charge to customers' accounts. Estate management fees are based upon the size of the estate. Revenue for estate management fees are recorded periodically, according to a fee schedule, and are based on the services that have been provided.
 
Fees for other customer services
 
Fees for other customer services include check ordering charges, merchant services income, safe deposit box rental fees, and other service charges. Check ordering charges are transactional based, and therefore, the Company's performance obligation is satisfied, and related revenue recognized, at a point in time. Merchant services income mainly represent fees charged to merchants to process their debit and credit card transactions. The Company's performance obligation for merchant services income is largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation.
 
The following table presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic
606,
for the
three
months ended
March 31, 2020
and
2019
 (in thousands):
 
   
Three Months Ended
  
   
March 31, 2020
    
March 31, 2019
  
Noninterest Income
      
 
      
 
Service charges on deposit accounts
   $
681
     $
701
  
ATM and check card fees
    
519
      
517
  
Wealth management fees
    
525
      
437
  
Fees for other customer services
    
207
      
175
  
Noninterest income (in-scope of Topic 606)
   $
1,932
     $
1,830
  
Noninterest income (out-of-scope of Topic 606)
    
167
      
155
  
Total noninterest income
   $
2,099
     $
1,985