Non-interest Revenue and Expense

3 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

NON-INTEREST REVENUE AND EXPENSE

        Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as gains on sales of residential mortgage and SBA loans, income associated with servicing assets, and loan fees, including residential mortgage originations to be sold and prepayment and late fees charged across all loan categories are also not in scope of the new guidance. Topic 606 is applicable to non-interest revenue streams, such as depository fees, service charges and commission revenues. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Non-interest revenue streams in-scope of Topic 606 are discussed below.

Depository fees and charges

        Depository fees and charges primarily relate to service fees on deposit accounts and fees earned from debit cards and check cashing transactions. Service fees on deposit accounts consist of ATM fees, NSF fees, account maintenance charges and other deposit related fees. The revenue is recognized monthly when the Bank's performance obligations are complete, or as incurred for transaction-based fees in accordance with the fee schedules for the Bank's deposit products and services.

Loan fees and service charges

        Loan fees and service charges primarily relate to program management fees and fees earned in accordance with the Bank's standard lending fees (such as inspection and late charges). These standard lending fees are earned on a monthly basis upon receipt.

Other non-interest income

        Other non-interest income includes correspondent banking fees, and income associated with an advertising services agreement covering marketing and use of the Bank's office space with a third party. The revenue is recognized on a monthly basis.

Interchange income

        The Company earns interchange fees from debit card holder transactions conducted through various payment networks. Interchangee fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsource technology solution and are presented on a net basis.

        The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended June 30, 2020 and 2019:

	Three Months Ended June 30,
$ in thousands	2020		2019
Non-interest income
In-scope of Topic 606
Depository fees and charges	$	587	$	804
Loan fees and service charges	57		75
Other non-interest income	92		14
Non-interest income (in-scope of Topic 606)	736		893
Non-interest income (out-of-scope of Topic 606)	947		48
Total non-interest income	$	1,683	$	941

        The following table sets forth other non-interest income and expense totals exceeding9 1% of the aggregate of total interest income and non-interest income for any of the periods presented:

	Three Months Ended June 30,
$ in thousands	2020		2019
Other non-interest income:
Correspondent banking fees	$	79	$	—
Other	83		46
Total non-interest income	$	162	$	46
Other non-interest expense:
Advertising	$	25	$	93
Contributions	84		8
Legal expense	70		98
Insurance and surety	158		144
Audit expense	138		126
Outsourced service	25		156
Data lines / internet	112		108
Retail expenses	184		200
Director's fees	85		77
Other	518		544
Total non-interest expense	$	1,399	$	1,554