Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2021

Revenue from Contracts with Customers [Abstract]

Revenue from Contracts with Customers

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 on securities available for sale, mortgage loan servicing, net and bank owned life insurance and were approximately 86.6% and 87.7% of total revenues for the six month periods ending June 30, 2021 and 2020, 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 June 30, 2021 and December 31, 2020.

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, NYCE and Accel. 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 is 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 six month periods ending June 30, 2021 and 2020 that were financed by us.

Disaggregation of our revenue sources by attribute follows:

Three months ending June 30, 2021
	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	1,835	$	-	$	-	$	-	$	1,835
Account service charges		331		-		-		-		331
ATM fees		-		213		-		-		213
Other		-		175		-		-		175
Business
Overdraft fees		152		-		-		-		152
ATM fees		-		4		-		-		4
Other		-		70		-		-		70
Interchange income		-		-		3,453		-		3,453
Asset management revenue		-		-		-		401		401
Transaction based revenue		-		-		-		233		233
Total	$	2,318	$	462	$	3,453	$	634	$	6,867
Reconciliation to Condensed Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	462
Investment and insurance commissions										634
Bank owned life insurance										127
Other										648
Total									$	1,871

Three months ending June 30, 2020
	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	1,019	$	-	$	-	$	-	$	1,019
Account service charges		451		-		-		-		451
ATM fees		-		276		-		-		276
Other		-		157		-		-		157
Business
Overdraft fees		153		-		-		-		153
ATM fees		-		4		-		-		4
Other		-		73		-		-		73
Interchange income		-		-		2,526		-		2,526
Asset management revenue		-		-		-		289		289
Transaction based revenue		-		-		-		146		146
Total	$	1,623	$	510	$	2,526	$	435	$	5,094
Reconciliation to Condensed Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	510
Investment and insurance commissions										435
Bank owned life insurance										265
Other										388
Total									$	1,598

Six months ending June 30, 2021
	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	3,047	$	-	$	-	$	-	$	3,047
Account service charges		843		-		-		-		843
ATM fees		-		481		-		-		481
Other		-		373		-		-		373
Business
Overdraft fees		344		-		-		-		344
ATM fees		-		10		-		-		10
Other		-		159		-		-		159
Interchange income		-		-		6,502		-		6,502
Asset management revenue		-		-		-		783		783
Transaction based revenue		-		-		-		434		434
Total	$	4,234	$	1,023	$	6,502	$	1,217	$	12,976
Reconciliation to Condensed Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	1,023
Investment and insurance commissions										1,217
Bank owned life insurance										266
Other										1,395
Total									$	3,901

Six months ending June 30, 2020
	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	2,759	$	-	$	-	$	-	$	2,759
Account service charges		957		-		-		-		957
ATM fees		-		576		-		-		576
Other		-		393		-		-		393
Business
Overdraft fees		498		-		-		-		498
ATM fees		-		11		-		-		11
Other		-		163		-		-		163
Interchange income		-		-		4,983		-		4,983
Asset management revenue		-		-		-		602		602
Transaction based revenue		-		-		-		346		346
Total	$	4,214	$	1,143	$	4,983	$	948	$	11,288
Reconciliation to Condensed Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	1,143
Investment and insurance commissions										948
Bank owned life insurance										535
Other										1,135
Total									$	3,761