Revenue Recognition

6 Months Ended

Jun. 30, 2019

Revenue From Contract With Customer [Abstract]

Note 12. Revenue Recognition

A description of the Company’s noninterest income is as follows:

Trust, estate and brokerage fee income: Income is primarily comprised of fees earned from the management and administration of trusts, estates and other customer assets and by providing investment brokerage services. Fees that are transaction-based (e.g., execution of trades) are recognized on a monthly basis. Other fees, or commissions, are earned over time as the contracted monthly or quarterly services are provided and are generally assessed based on either account activity or the market value of assets under management.

Service charges on deposit accounts: The Company earns fees from its deposit customers for overdraft and account maintenance services. Overdraft fees are recognized when the overdraft occurs. 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. The Company also earns fees from its customers for transaction-based services. Such services include safe deposit box, ATM, stop payment and wire transfer fees. In each case, these service charges and fees are recognized in income at the time or within the same period that the Company’s performance obligation is satisfied.

Interchange fee income, net: The Company earns interchange fees from debit and credit cardholder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services.

Noninterest income by major source, for the three and six months ended June 30, 2019 and 2018, consisted of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2019		2018		2019		2018
Noninterest income
Trust and estate fees⁽¹⁾	$	427	$	403	$	843	$	775
Brokerage fees⁽¹⁾		128		47		218		88
Service charges on deposit accounts⁽¹⁾		378		404		761		848
Interchange fee income, net⁽¹⁾		313		327		584		612
Bank-owned life insurance		90		91		183		180
Other service charges, commissions and other income⁽²⁾		58		31		206		122
Gain on sale/call of securities available for sale		-		303		79		838
Gain on sale of mortgage loans held for sale, net		6		18		6		24
Total noninterest income	$	1,400	$	1,624	$	2,880	$	3,487

⁽¹⁾	Income within scope of ASC 606, “Revenue from Contracts with Customers”.

⁽²⁾	Income within the scope of ASC 606 of $70,000 for each of the three months ended June 30, 2019 and 2018 and $132,000 and $138,000 for the six months ended June 30, 2019 and 2018, respectively. The remaining balance is outside the scope of ASC 606.