Non-interest Revenue and Expense

6 Months Ended

Sep. 30, 2022

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. Interchange 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 and six months ended September 30, 2022 and 2021:

	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands	2022		2021		2022		2021
Non-interest income
In-scope of Topic 606
Depository fees and charges	$	553	$	592	$	1,108	$	1,195
Loan fees and service charges	132		41		248		139
Other non-interest income	152		636		162		1,511
Non-interest income (in-scope of Topic 606)	837		1,269		1,518		2,845
Non-interest income (out-of-scope of Topic 606)	262		1,895		290		1,960
Total non-interest income	$	1,099	$	3,164	$	1,808	$	4,805

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

	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands	2022		2021		2022		2021
Other non-interest income:
Correspondent banking fees	$	143	$	624	143		1,489
Other	103		19		138		90
Total non-interest income	$	246	$	643	$	281	$	1,579
Other non-interest expense:
Advertising	$	111	$	180	$	264	$	279
Legal expense	112		248		183		327
Insurance and surety	289		179		585		378
Audit expense	148		137		299		248
Data lines / internet	99		104		194		213
Security services	75		59		149		107
Retail expenses	250		245		467		488
Loss contingency	23		(101)		34		2,016
Director's fees	123		71		246		142
Other	612		592		1,179		1,176
Total non-interest expense	$	1,842	$	1,714	$	3,600	$	5,374