Note 10 - Revenue Recognition

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

10. Revenue Recognition

On

January 1, 2018,

the Corporation adopted ASU

2014

-

09

"Revenue from Contracts with Customers" (Topic

606

) and all subsequent ASUs that modified Topic

606.

Interest income, net securities gains (losses) and bank-owned life insurance are

not

included within the scope of Topic

606.

For the revenue streams in the scope of Topic

606,

service charges on deposits and electronic banking fees, there are

no

significant judgments related to the amount and timing of revenue recognition. All of the Corporation's revenue from contracts with customers is recognized within noninterest income.

Service charges on deposits:

The Corporation earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such stop payment charges, statement rendering and other fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Corporation satisfies 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 Service charges on deposits are withdrawn from the customer's account balance.

Electronic banking fees:

The Corporation earns interchange and other ATM related fees from cardholder transactions conducted through the 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. The gross amount of these fees are processed through noninterest income. Other fees, such a transaction surcharges and card replacement fees are withdrawn from the customer's account balance at the time of service.

The following table presents the Corporation's sources of noninterest income for the

three

months ended

March 31, 2020

and

2019

.

(Dollar amounts in thousands)	For the Three Months Ended March 31,
	2020		2019
Noninterest income
In-scope of Topic 606:
Service charges on deposits
Maintenance fees	$	53	$	40
Overdraft fees		328		438
Other fees		70		77
Electronic banking fees (1)		332		324
Noninterest income (in-scope of Topic 606)		783		879
Noninterest income (out-of-scope of Topic 606) (2)		242		178
Total noninterest income	$	1,025	$	1,057

( 1 ) Included in other noninterest income on the consolidated statement of income.

( 2 ) Noninterest income items that are out-of-scope include net realized gains (losses) on sales of securities, net gains (losses) on sales of loans, earnings on bank-owned life insurance and certain other noninterest income items.