Revenue from Contracts with Customers

6 Months Ended

Mar. 31, 2021

Revenue from Contracts with Customers

Revenue from Contracts with Customers

14. Revenue from Contracts with Customers

Substantially all of the Company’s revenue from contracts with customers within the scope of FASB ASC 606 is included in the core banking segment and is recognized within noninterest income.  The following table presents the Company’s sources of noninterest income for the three and six-month periods ended March 31, 2021 and 2020:

	Three Months Ended				Six Months Ended
	March 31,				March 31,
	2021		2020		2021		2020
	(In thousand)
Service charges on deposit accounts	$	328	$	441	$	724	$	950
ATM and interchange fees		513		524		1,145		1,027
Investment advisory income		365		83		499		110
Other		32		31		55		57
Revenue from contracts with customers		1,238		1,079		2,423		2,144
Gain on sale of securities		—		7		—		7
Gain on sale of SBA loans		3,239		1,229		4,506		1,990
Mortgage banking income		32,398		8,411		74,698		24,334
Increase in cash value of life insurance		174		194		360		356
Real estate lease income		149		152		296		303
Loan servicing and other income		1,775		61		2,873		231
Other noninterest income		37,735		10,054		82,733		27,221
Total noninterest income	$	38,973	$	11,133	$	85,156	$	29,365

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 wire 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.

ATM and Interchange Fees: The Company earns ATM usage fees and interchange fees from debit cardholder transactions conducted through a payment network. ATM fees are recognized when 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. The costs of related loyalty rewards programs are netted against interchange income as a direct cost of the revenue generating activity.

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 when 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 check cashing and cashier’s check fees, safe deposit box fees and cash advance fees. This revenue is recognized at the time the transaction is executed or over the period the Company satisfies the performance obligation.