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Note 12 - Revenue From Contracts With Customers
 6 Months Ended
Jun. 30, 2023
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

12.      Revenue from Contracts with Customers

 

Substantially all of the Company’s revenue from contracts with customers in the scope of FASB ASC 606 is recognized within noninterest income.  The following table presents the Company’s sources of noninterest income for the three and six months ended June 30, 2023 and 2022:

 

  

Three Months Ended

  

Six Months Ended

 
  

March 31,

  

March 31,

 
  

2023

  

2022

  

2023

  

2022

 
  

(In thousands)

 
                 

Service charges on deposit accounts

 $578  $543  $1,140  $1,052 

ATM and debit card fees

  1,141   1,066   2,228   2,073 

Investment advisory income

  19   118   31   240 

Other

  31   30   64   62 

Revenue from contracts with customers

  1,769   1,757   3,463   3,427 
                 

Net (loss) gains on loans and investments

  (2)  116   221   514 

Increase in cash value of life insurance

  66   63   111   113 

Other

  30   29   59   58 

Other noninterest income

  94   208   391   685 
                 

Total noninterest income

 $1,863  $1,965  $3,854  $4,112 

 

 

A description of the Company’s revenue streams accounted for under FASB 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 stop payment charges and statement rendering, 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 over which the Company satisfies the performance obligation.  Overdraft fees are recognized at the point in time that the overdraft occurs. 

 

ATM and Debit Card Fees:  The Company earns ATM usage fees and interchange fees from debit cardholder transactions conducted through a payment network.  ATM fees are recognized at the point in time the transaction occurs.  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.

 

Investment Advisory Income:  The Company earns trust, insurance commissions, brokerage commissions and annuities income from its contracts with customers to manage assets for investment, and/or to transact on their accounts.  These fees are primarily earned over time as the Company provides the contracted services and are generally assessed based on the market value of assets under management.  Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed.  Other related fees, which are based on a fixed fee schedule, are recognized when the services are rendered.

 

Other Income:  Other income from contracts with customers includes safe deposit box fees and ACH origination fees.  This revenue is recognized at the time the transaction is executed or over the period the Company satisfies the performance obligation.