Note 13 - Revenue Recognition

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

13.        Revenue Recognition

All the revenue from contracts with customers, within the scope of ASC 606 is recognized in Non Interest Income. The following table presents the Company’s sources of Non-Interest Income for the three and nine months ended September 30, 2025 and 2024, respectively. Items outside the scope of ASC 606 are noted as such.

	Three Months ended September 30,						Nine Months ended September 30,
	2025			2024			2025			2024
Noninterest Income
Service charges on deposit accounts	$	225		$	113		$	486		$	330
ATM fees and debit card income		368			201			738			579
Mortgage banking revenue		134			52			243			187
Trust and investment fee income		129			19			207			64
Gain on sale of premises *		-			-			52			-
Loss on sale of securities *		(8	)		-			(8	)		-
Gain on sale of other real estate owned *		-			-			-			-
Net marketable equity security gains (losses) *		60			(80	)		57			(112	)
Earnings on bank owned life insurance *		130			65			256			192
Bargain purchase gain *		17,827			-			17,827			-
Other *		203			40			323			150
Total Noninterest Income	$	19,068		$	410		$	20,181		$	1,390

“*” Not within the scope of ASC 606

Sources of revenue for the Company which fall within the scope of ASC 606 are described as follows:

● Service Charges on Deposit Accounts – The Bank earns fees from its deposit customers for various services, including transaction-based services and periodic account maintenance. Transaction based services include, but are not limited to stop payment fees, overdraft fees, check cashing fees, wire transfer fees, and early withdrawal penalties. Maintenance fees include account maintenance fees, minimum balance fees, and monthly service charge. Transaction based fees are only recognized when the transaction is complete, and maintenance fees are recognized when the period of the obligation is complete.

Steele Bancorp, Inc. and Subsidiary

Notes to Consolidated Financial Statements

(Unaudited)

● Trust and Investment Fee Income - The Trust department receives fees for providing trust related services including Investment Management, Security Custody, and Other Trust Services. These fees are based upon the value of assets under management and are assessed using a tiered rate schedule. Fees are recognized on a monthly basis when the service obligation is complete. These fees are recognized in trust services income on the Consolidated Statement of Income. The trust department provides estate settlement services. These fees are based on the estimated fair value of the estate according to a tiered rate schedule. Each estate is unique in the nature, size, and complexity, and may include many tasks or milestones to complete. Fees are recognized in proportion to the number of milestones completed which is a judgement made by the trust management team. These fees are included in trust services income on the Consolidated Statements of Income.

● ATM Fees and Debit Card Income – The Bank provides electronic funds transfer processing services for the debit cards it offers to its customers. The Bank earns interchange fees from each cardholder transaction conducted through various networks. The fees are transaction based and are earned when the transaction is complete. ATM service charges are earned when non customers use Bank ATMs. These fees are recognized when the transaction is complete. These fees are recognized in other income on the Consolidated Statements of Income.

● Mortgage Banking Revenue – The Bank recognizes revenue from the sale and servicing of loans to third parties. These gains/losses are included in other income on the Consolidated Statements of Income.