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Revenue from Contracts with Customers
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers

9.Revenue from Contracts with Customers

 

All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. Items outside the scope of ASC 606 are noted as such.

 

   2024   2023   2024   2023 
   Three months ended   Nine months ended 
(Dollars in thousands)  September 30,   September 30, 
   2024   2023   2024   2023 
Non-interest income:                    
Service charges on deposit accounts                    
Overdraft fees  $1,066   $1,021   $3,019   $2,850 
Other   526    318    1,233    792 
Interchange income   765    756    2,226    2,298 
Loan servicing fees (1)   425    450    1,293    1,344 
Office lease income (1)   20    147    108    365 
Gains on sales of loans (1)   704    491    1,864    2,014 
Bank owned life insurance income (1)   254    230    747    671 
Gains (losses) on sales of premises and equipment and foreclosed assets   273    -    264    - 
Other   220    239    619    642 
Total non-interest income  $4,253   $3,652   $11,373   $10,976 

 

  (1) Not within the scope of ASC 606.

 

 

A description of the Company’s revenue streams under 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 ATM usage fees, stop payment charges, statement rendering, and ACH fees, 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 during which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance.

 

Interchange Income

 

The Company earns interchange fees from debit cardholder transactions conducted through the interchange payment network. 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.

 

Gains (Losses) on Sales of Real Estate Owned

 

The Company records a gain or loss from the sale of real estate owned when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of real estate owned to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the real estate owned asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. There were no sales of real estate owned that were financed by the Company during the first nine months of 2024 or 2023.