Revenue From Contracts With Customers

9 Months Ended

Mar. 31, 2022

Revenue From Contract With Customer [Abstract]

Revenue From Contracts With Customers

Note 11. Revenue From Contracts With Customers

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these services. The Company applies the following five steps to properly recognize revenue:

1.Identify the contract with a customer.

2.Identify the performance obligations in the contract.

3.Determine the transaction price.

4.Allocate the transaction price to performance obligations in the contract.

5.Recognize revenue when (or as) the Company satisfies a performance obligation.

The following table presents summary information about sources of revenue from contracts with customers for the periods indicated (in thousands).

	Three Months Ended				Nine Months Ended
	March 31,				March 31,
	2022		2021		2022		2021
Noninterest income:
Service charges on deposits	$	222	$	173	$	604	$	531
Interchange fees		139		128		459		392
Other fees and service charges (1)		29		52		135		115
Fees and service charges		390		353		1,198		1,038
Bank-owned life insurance (1)		185		120		568		381
Gain on sale of premises (1)		-		-		548		-
Swap income (1)		333		-		333		367
Gains on sales of loans receivable (1)		9		-		56		-
Gains on sales of securities (1)		-		113		-		113
Other noninterest income (1)		6		6		28		30
Total noninterest income	$	923	$	592	$	2,731	$	1,929

(1)Not within the scope of ASC 606.

Fees and 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 payments, 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 the month, representing the period over which the Company satisfied 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 Service charges on deposits are withdrawn from the customer’s account balance.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 various payment networks. 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.

Gain on Sales of Foreclosed Real Estate. The Company records a gain or loss from the sale of foreclosed real estate when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of foreclosed real estate to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the foreclosed real estate 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.