Non-interest Revenue and Expense

6 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

NON-INTEREST REVENUE AND EXPENSE

    Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as gains on sales of residential mortgage and SBA loans, income associated with servicing assets, and loan fees, including residential mortgage originations to be sold and prepayment and late fees charged across all loan categories are also not in scope of the new guidance. Topic 606 is applicable to non-interest revenue streams, such as depository fees, service charges and commission revenues. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Non-interest revenue streams in-scope of Topic 606 are discussed below.

Depository fees and charges

    Depository fees and charges primarily relate to service fees on deposit accounts and fees earned from debit cards and check cashing transactions. Service fees on deposit accounts consist of ATM fees, NSF fees, account maintenance charges and other deposit related fees. The revenue is recognized monthly when the Bank's performance obligations are complete, or as incurred for transaction-based fees in accordance with the fee schedules for the Bank's deposit products and services.

Loan fees and service charges

    Loan fees and service charges primarily relate to program management fees and fees earned in accordance with the Bank's standard lending fees (such as inspection and late charges). These standard lending fees are earned on a monthly basis upon receipt.

Other non-interest income

    Other non-interest income includes correspondent banking fees, and income associated with an advertising services agreement covering marketing and use of the Bank's office space with a third party. The revenue is recognized on a monthly basis.

Interchange income

    The Company earns interchange fees from debit card holder transactions conducted through various payment networks. Interchangee fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsource technology solution and are presented on a net basis.

    The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended September 30, 2020 and 2019:

	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands	2020		2019		2020		2019
Non-interest income
In-scope of Topic 606
Depository fees and charges	$	762	$	811	$	1,349	$	1,615
Loan fees and service charges	82		70		140		146
Other non-interest income	612		14		704		27
Non-interest income (in-scope of Topic 606)	1,456		895		2,193		1,788
Non-interest income (out-of-scope of Topic 606)	517		115		1,463		164
Total non-interest income	$	1,973	$	1,010	$	3,656	$	1,952

    The following table sets forth other non-interest income and expense totals exceeding 1% of the aggregate of total interest income and non-interest income for any of the periods presented:

	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands	2020		2019		2020		2019
Other non-interest income:
Grant income	$	500	$	—	$	500	$	—
Correspondent banking fees	601		—		680		—
Other	13		104		96		151
Total non-interest income	$	1,114	$	104	$	1,276	$	151
Other non-interest expense:
Advertising	$	45	$	109	$	70	$	202
Legal expense	192		75		262		173
Insurance and surety	174		160		333		304
Audit expense	138		136		275		262
Outsourced service	22		89		47		245
Data lines / internet	96		102		208		210
Retail expenses	207		177		391		377
Director's fees	85		77		170		154
Other	440		284		1,042		837
Total non-interest expense	$	1,399	$	1,209	$	2,798	$	2,764