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. The following table presents the Company’s sources of non-interest income for the three and six months ended June 30, 2018 and 2017. Items outside the scope of ASC 606 are noted as such.



	Three months ended					Six months ended
(Dollars in thousands)	June 30, 2018		June 30, 2017			June 30, 2018		June 30, 2017
Service charges on deposits:
Overdraft fees	$	82	$	71		$	161	$	151
Other	71		78			142		152
Interchange income	108		64			175		139
Other income - in scope	114		65			329		129
Income on BOLI⁽¹⁾	159		130			273		260
Net gains on sales of loans⁽¹⁾	984		1,018			2,133		2,607
Loan servicing fees ⁽¹⁾	158		145			308		283
Net gains (losses) on sales and calls of securities ⁽¹⁾	6		(2		)	12		104
Gain from bargain purchase ⁽¹⁾	184		—			184		—
Other income⁽¹⁾	177		197			211		354
	$	2,043	$	1,766		$	3,928	$	4,179

⁽¹⁾ Not within the scope of ASC 606

A description of the Company’s revenue streams accounted for under 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 ATM use 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 over 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 Service charges on deposits are withdrawn from the customer’s account balance.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 Visa 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.

Other Income: The Company earns other fees from the execution of and receipt of wire transfers for customers, the rental of safe deposit boxes and fees for other services provided to customers. These fees are recognized at the time the transaction is executed or the service is provided as that is the point in time the Company fulfills the customer’s request.

Gain or Loss on Sales of OREO: The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. The Company generally does not finance the sale of OREO to the buyer; however, in determining the gain or loss on the sale, the Company adjusts the transaction price and related gain or loss on sale if a significant financing component is present. There were no sales of OREO during the three and six months ended June 30, 2018 or 2017.