Noninterest Income

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Noninterest Income

Note 13: Noninterest Income

The Company has included the following table regarding the Company’s noninterest income for the periods presented:

	For the three months ended						For the nine months ended
(In thousands)	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Service charges on deposit accounts
Insufficient funds fees	$	221		$	181		$	594		$	488
Deposit related fees		150			112			373			321
ATM fees		21			50			64			104
Total service charges on deposit accounts		392			343			1,031			913
Fee Income
Insurance agency revenue		367			310			1,024			1,001
Investment services revenue		112			128			369			360
ATM fees surcharge		66			61			174			168
Banking house rents collected		40			54			149			150
Total fee income		585			553			1,716			1,679
Card income
Debit card interchange fees		300			22			610			455
Merchant card fees		19			19			45			46
Total card income		319			41			655			501
Mortgage fee income and realized gains on sales of loans   and foreclosed real estate
Loan servicing fees		79			99			279			238
Net gains on sales of loans and foreclosed real estate		90			41			148			183
Total mortgage fee income and realized gains on sales of    loans and foreclosed real estate		169			140			427			421
Total		1,465			1,077			3,829			3,514
Earnings and gains on bank owned life insurance		361			165			685			466
Net realized (losses) gains on sales and redemptions of investment securities		(188	)		(13	)		(320	)		60
Net realized gains (losses) on sales of marketable equity securities		62			(39	)		31			(208	)
Loss on sale of premises and equipment		(36	)		-			(36	)		-
Non-recurring gain on lease renegotiations		-			-			245			-
Other miscellaneous (loss) income		43			3			221			40
Total noninterest income	$	1,707		$	1,193		$	4,655		$	3,872

The following is a discussion of key revenues within the scope of ASC 606 guidance:

•Service charges on deposit accounts – Revenue is earned through insufficient funds fees, customer initiated activities or passage of time for deposit related fees, and ATM service fees. Transaction-based fees are recognized at the time the transaction is executed, which is the same time the Company’s performance obligation is satisfied. Account maintenance fees are earned over the course of the month as the monthly maintenance performance obligation to the customer is satisfied.

•Fee income – Revenue is earned through commissions on insurance and securities sales, ATM surcharge fees, and banking house rents collected. The Company earns investment advisory fee income by providing investment management services to customers under investment management contracts. As the direction of investment management accounts is provided over time, the performance obligation to investment management customers is satisfied over time, and therefore, revenue is recognized over time.

•Card income – Card income consists of interchange fees from consumer debit card networks and other related services. Interchange rates are set by the card networks. Interchange fees are based on purchase volumes and other factors and are recognized as transactions occur.

•Mortgage fee income and realized gain on sale of loans and foreclosed real estate – Revenue from mortgage fee income and realized gain on sale of loans and foreclosed real estate is earned through the origination of residential and commercial mortgage loans, sales of one-to-four family residential mortgage loans, sales of government guarantees portions of Small Business Administration loans (“SBA loans”), and sales of foreclosed real estate, and is earned as the transaction occurs.

In addition to the revenue items discussed above, for the nine months ended September 30, 2024, the Company recognized a non-recurring gain of $245,000 related to refunds received from cumulative lessor related pass-through

operating expense charges for a single leased branch location, and an increase of $219,000 in earnings and gain on BOLI including the net death benefit of $175,000 on BOLI.