Noninterest Income

3 Months Ended

Mar. 31, 2020

Revenue From Contract With Customer [Abstract]

Note 13: Noninterest Income

The Company has included the following table regarding the Company’s noninterest income for the periods presented.

	For the three months
	ended March 31,
(In thousands)	2020			2019
Service fees
Insufficient funds fees	$	275		$	208
Deposit related fees		55			52
ATM fees		26			22
Total service fees		356			282
Fee Income
Insurance commissions		335			235
Investment services revenue		68			48
ATM fees surcharge		54			46
Banking house rents collected		71			34
Total fee income		528			363
Card income
Debit card interchange fees		163			144
Merchant card fees		16			16
Total card income		179			160
Mortgage fee income and realized gain on sale of loans and foreclosed real estate
Loan servicing fees		49			27
Net gains (losses) on sales of loans and foreclosed real estate		672			(8	)
Total mortgage fee income and realized gain on sale of loans and foreclosed real estate		721			19
Total		1,784			824
Earnings and gain on bank owned life insurance		116			121
Net gains on sales and redemptions of investment securities		26			79
(Losses)/gains on marketable equity securities		(194	)		41
Other miscellaneous income		16			28
Total noninterest income	$	1,748		$	1,093

The following is a discussion of key revenues within the scope of the new revenue guidance:

•

Service fees – Revenue is earned through insufficient funds fees, customer initiated activities or passage of time for deposit related fees, and ATM service fees. Transaction-based fees are recognized at the time the transaction is executed, which is the same time the Company’s performance obligation is satisfied. Account maintenance fees are earned over the course of the month as the monthly maintenance performance obligation to the customer is satisfied.

•

Fee income – Revenue is earned through commissions on insurance and securities sales, ATM surcharge fees, and banking house rents collected. The Company earns investment advisory fee income by providing investment management services to customers under investment management contracts. As the direction of investment management accounts is provided over time, the performance obligation to investment management customers is satisfied over time, and therefore, revenue is recognized over time.

•

Card income – Card income consists of interchange fees from consumer debit card networks and other related services. Interchange rates are set by the card networks. Interchange fees are based on purchase volumes and other factors and are recognized as transactions occur.

•

Mortgage fee income and realized gain on sale of loans and foreclosed real estate – Revenue from mortgage fee income and realized gain on sale of loans and foreclosed real estate is earned through the origination of residential and commercial mortgage loans, sales of one-to-four family residential mortgage loans, sales of government guarantees portions of SBA loans, and sales of foreclosed real estate, and is earned as the transaction occurs.