Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2022

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 84.6% and 88.4% of total revenues for the three month periods ending March 31, 2022 and 2021, 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 March 31, 2022 and December 31, 2021.

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 (during 2021) 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 three month periods ending March 31, 2022 and 2021 that were financed by us.

Disaggregation of our revenue sources by attribute follows:

Three months ending March 31, 2022

	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	2,506	$	-	$	-	$	-	$	2,506
Account service charges		321		-		-		-		321
ATM fees		-		277		-		-		277
Other		-		251		-		-		251
Business
Overdraft fees		130		-		-		-		130
ATM fees		-		7		-		-		7
Other		-		87		-		-		87
Interchange income		-		-		3,082		-		3,082
Asset management revenue		-		-		-		469		469
Transaction based revenue		-		-		-		269		269
Total	$	2,957	$	622	$	3,082	$	738	$	7,399
Reconciliation to Condensed Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	622
Investment and insurance commissions										738
Bank owned life insurance (1)										138
Other (1)										865
Total									$	2,363

(1) Excluded from the scope of ASC Topic 606.

Three months ending March 31, 2021

	Service Charges on Deposit Accounts		Other Deposit Related Income		Interchange Income		Investment and Insurance Commissions		Total
	(In thousands)
Retail
Overdraft fees	$	1,212	$	-	$	-	$	-	$	1,212
Account service charges		512		-		-		-		512
ATM fees		-		268		-		-		268
Other		-		198		-		-		198
Business
Overdraft fees		192		-		-		-		192
ATM fees		-		6		-		-		6
Other		-		89		-		-		89
Interchange income		-		-		3,049		-		3,049
Asset management revenue		-		-		-		383		383
Transaction based revenue		-		-		-		201		201
Total	$	1,916	$	561	$	3,049	$	584	$	6,110
Reconciliation to Condensed Consolidated Statement of Operations:
Non-interest income - other:
Other deposit related income									$	561
Investment and insurance commissions										584
Bank owned life insurance (1)										139
Other (1)										746
Total									$	2,030

(1) Excluded from the scope of ASC Topic 606.