REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Dec. 31, 2020

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

NOTE S - REVENUE FROM CONTRACTS WITH CUSTOMERS

All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within non-interest income.  The guidance does not apply to revenue associated with financial instruments, including loans and investment securities that are accounted for under other GAAP, which comprise a significant portion of our revenue stream.  A description of the Company’s revenue streams accounted for under ASC 606 is as follows:

Service Charges on Deposit Accounts: The Company earns fees from deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed at the point in the time the Company 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 Company 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 Service charges on deposits are withdrawn from the customer’s account balance.

Interchange Income: The Company earns interchange fees from debit and credit card holder transaction conducted through 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 by the cardholder.

Gains/Losses on Sales of OREO: The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether the collectability of the transaction prices is probable. Once these criteria are met, the OREO asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present.

All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income.  The following table presents the Company’s sources of non-interest income for December 31, 2020 and 2019.  Items outside the scope of ASC 606 are noted as such.

	Year Ended December 31, 2020
	Commercial/		Mortgage
Revenue by Operating Segments	Retail		Banking		Holding
($ in thousands)	Bank		Division		Company		Total
Non-interest income
Service charges on deposits
Overdraft fees	$	3,218	$	—	$	—	$	3,218
Other		3,993		2		—		3,995
Interchange income		9,433		—		—		9,433
Investment brokerage fees		932		—		—		932
Net gains (losses) on OREO		(537)		—		—		(537)
Net gains (losses) on sales of securities (a)		281		—		—		281
Gain on acquisition		7,835		—		—		7,835
Gain on premises and equipment		443		—		—		443
Other		4,940		10,444		892		16,276
Total non-interest income	$	30,538	$	10,446	$	892	$	41,876

	Year Ended December 31, 2019
	Commercial/		Mortgage
Revenue by Operating Segments	Retail		Banking		Holding
($ in thousands)	Bank		Division		Company		Total
Non-interest income
Service charges on deposits
Overdraft fees	$	4,277	$	1	$	—	$	4,278
Other		3,558		2		—		3,560
Interchange income		8,024		—		—		8,024
Investment brokerage fees		83		—		—		83
Net gains (losses) on OREO		(144)		—		—		(144)
Net gains (losses) on sales of securities (a)		122		—		—		122
Other		3,977		5,985		1,062		11,024
Total non-interest income	$	19,897	$	5,988	$	1,062	$	26,947

(a) Not within scope of ASC 606