15.	Revenue from Contracts with Customers

We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers. We derive the majority of our revenue from financial instruments and their related contractual rights and obligations which for the most part are excluded from the scope of this topic. These sources of revenue that are excluded from the scope of this topic include interest income, net gains on mortgage loans, net gains (losses) on securities, mortgage loan servicing, net and bank owned life insurance and were approximately 84.7% and 83.1% of total revenues at September 30, 2019 and 2018, respectively.

Material sources of revenue that are included in the scope of this topic include service charges on deposit accounts, other deposit related income, interchange income and investment and insurance commissions and are discussed in the following paragraphs. Generally these sources of revenue are earned at the time the service is delivered or over the course of a monthly period and do not result in any contract asset or liability balance at any given period end. As a result, there were no contract assets or liabilities recorded as of September 30, 2019 and December 31, 2018.

Service charges on deposit accounts and other deposit related income: Revenues are earned on depository accounts for commercial and retail customers and include fees for transaction-based, account maintenance and overdraft services. Transaction-based fees, which includes services such as ATM use fees, stop payment charges and ACH fees are recognized at the time the transaction is executed as that is the time we fulfill our customer’s request. Account maintenance fees, which includes monthly maintenance services are earned over the course of a month representing the period over which the performance obligation is satisfied. Our obligation for overdraft services is satisfied at the time of the overdraft.

Interchange income: Interchange income primarily includes debit card interchange and network revenues. Debit card interchange and network revenues are earned on debit card transactions conducted through payment networks such as MasterCard and NYCE. Interchange income is recognized concurrently with the delivery of services on a daily basis. Interchange and network revenues are presented gross of interchange expenses, which are presented separately as a component of non-interest expense.

Investment and insurance commissions: Investment and insurance commissions include fees and commissions from asset management, custody, recordkeeping, investment advisory and other services provided to our customers. Revenue is recognized on an accrual basis at the time the services are performed and are generally based on either the market value of the assets managed or the services provided. We have an agent relationship with a third party provider of these services and net certain direct costs charged by the third party provider associated with providing these services to our customers.

Net (gains) losses on other real estate and repossessed assets: We record a gain or loss from the sale of other real estate when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. If we were to finance the sale of other real estate to the buyer, we would assess whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction is probable. Once these criteria are met, the other real estate asset would be derecognized and the gain or loss on sale would be recorded upon the transfer of control of the property to the buyer. There were no other real estate properties sold during the three and nine month periods ending September 30, 2019 and 2018 that were financed by us.

Disaggregation of our revenue sources by attribute follows:

Three months ending September 30, 2019

	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	1,970	$	-	$	-	$	-	$	1,970
Account service charges		552		-		-		-		552
ATM fees		-		373		-		-		373
Other		-		240		-		-		240
Business
Overdraft fees		361		-		-		-		361
Account service charges		-		-		-		-		-
ATM fees		-		9		-		-		9
Other		-		91		-		-		91
Interchange income		-		-		2,785		-		2,785
Asset management revenue		-		-		-		292		292
Transaction based revenue		-		-		-		158		158

Total	$	2,883	$	713	$	2,785	$	450	$	6,831

Reconciliation to Condensed Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	713
Investment and insurance commissions										450
Bank owned life insurance										301
Other										1,028
Total									$	2,492

Three months ending September 30, 2018

	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	2,161	$	-	$	-	$	-	$	2,161
Account service charges		519		-		-		-		519
ATM fees		-		374		-		-		374
Other		-		219		-		-		219
Business
Overdraft fees		408		-		-		-		408
Account service charges		78		-		-		-		78
ATM fees		-		10		-		-		10
Other		-		124		-		-		124
Interchange income		-		-		2,486		-		2,486
Asset management revenue		-		-		-		274		274
Transaction based revenue		-		-		-		239		239

Total	$	3,166	$	727	$	2,486	$	513	$	6,892

Reconciliation to Condensed Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	727
Investment and insurance commissions										513
Bank owned life insurance										237
Other										657
Total									$	2,134

Nine months ending September 30, 2019

	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	5,582	$	-	$	-	$	-	$	5,582
Account service charges		1,609		-		-		-		1,609
ATM fees		-		1,041		-		-		1,041
Other		-		703		-		-		703
Business
Overdraft fees		1,123		-		-		-		1,123
Account service charges		9		-		-		-		9
ATM fees		-		26		-		-		26
Other		-		309		-		-		309
Interchange income		-		-		7,744		-		7,744
Asset management revenue		-		-		-		823		823
Transaction based revenue		-		-		-		374		374

Total	$	8,323	$	2,079	$	7,744	$	1,197	$	19,343

Reconciliation to Condensed Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	2,079
Investment and insurance commissions										1,197
Bank owned life insurance										813
Other										2,773
Total									$	6,862

Nine months ending September 30, 2018

	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	6,177	$	-	$	-	$	-	$	6,177
Account service charges		1,607		-		-		-		1,607
ATM fees		-		1,077		-		-		1,077
Other		-		656		-		-		656
Business
Overdraft fees		1,153		-		-		-		1,153
Account service charges		229		-		-		-		229
ATM fees		-		26		-		-		26
Other		-		399		-		-		399
Interchange income		-		-		7,236		-		7,236
Asset management revenue		-		-		-		826		826
Transaction based revenue		-		-		-		608		608

Total	$	9,166	$	2,158	$	7,236	$	1,434	$	19,994

Reconciliation to Condensed Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	2,158
Investment and insurance commissions										1,434
Bank owned life insurance										713
Other										1,989
Total									$	6,294