Revenue Recognition

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

16. REVENUE RECOGNITION

The Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” on January 1, 2018. The objective of this amendment is to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are in the scope of other standards. Revenue associated with financial instruments, including loans, leases, securities and derivatives, that are accounted for under other U.S. GAAP are specifically excluded from Topic 606.

The Company’s contracts with customers in the scope of Topic 606 are contracts for deposit accounts. The revenue resulting from deposit accounts, which includes fees such as safe deposit fees, insufficient funds fees, wire transfer fees and out-of-network ATM transaction fees, is included as a component of fees and service charges in the consolidated statements of operations.

Revenue from contracts with customers included in fees and service charges was $77,000 and $93,000 for the years ended December 31, 2020 and 2019, respectively.

For our contracts with customers, we satisfy our performance obligations each day as services are rendered. For our deposit account revenue, we receive payment on a daily basis as services are rendered.