Revenue Recognition

12 Months Ended

Jun. 30, 2022

Revenue From Contract With Customer [Abstract]

Revenue Recognition

Note 20 – Revenue Recognition

All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. The following table presents the Company’s sources of noninterest income for the years ended June 30, 2022, 2021 and 2020. Sources of revenue outside the scope of ASC 606 are noted as such.

	Years Ended June 30,
	2022			2021		2020
	(In Thousands)
Non-interest income:
Deposit-related fees and charges	$	1,733		$	1,412	$	1,626
Loan-related fees and charges (1)		847			485		425
(Loss) gain on sale and call of securities (1)		(559	)		767		2,250
Gain on sale of loans (1)		2,539			5,574		3,186
Gain (loss) on sale and write down of other real estate owned		5			-		(28	)
Income from bank owned life insurance (1)		6,167			6,267		6,225
Electronic banking fees and charges (interchange income)		1,626			1,717		1,245
Bargain purchase gain (1)		-			3,053		-
Miscellaneous (1)		1,576			1,751		194
Total non-interest income	$	13,934		$	21,026	$	15,123

(1)Not within the scope of ASC 606.

A description of the Company’s revenue streams accounted for under ASC 606 is as follows:

Service Charges on Deposit Accounts

The Company earns fees from 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 at the point in the 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 Service charges on deposits are withdrawn from the customer’s account balance.

Gains/Losses 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. Gain/Losses on the sales of OREO falls within the scope of ASC 606, if the Company finances the transaction. Under ASC 606, if the Company finances the sale of OREO to the buyer, the Company is required to assess whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. Generally, the Company does not finance the sale of OREO properties.

Interchange Income

The Company earns interchange fees from debit and credit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsourced technology solution.