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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2025
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.

 

 

A description of the Company’s revenue streams under ASC 606 follows for the periods indicated:

   

(Dollars in thousands)            
   Three months ended   Six months ended 
   June 30,   June 30, 
(Dollars in thousands)  2025   2024   2025   2024 
Non-interest income:                    
Service charges on deposit accounts                    
Overdraft fees  $880   $992   $1,764   $1,953 
Other   462    431    890    707 
Interchange income   676    777    1,263    1,461 
Loan servicing fees (1)   404    432    819    868 
Office lease income (1)   19    24    36    88 
Gains on sales of loans (1)   740    648    1,302    1,160 
Bank owned life insurance income (1)   278    248    550    493 
Losses on sales of investment securities (1)   -    -    (2)   - 
Losses on sales of real estate owned   -    -    -    (9)
Other   167    168    362    399 
Total non-interest income  $3,626   $3,720   $6,984   $7,120 

 

(1)Not within the scope of ASC 606.

 

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 Service charges on deposits are withdrawn from the customer’s account balance.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 six months of 2025 or 2024.