Non-interest Revenue and Expense

12 Months Ended

Mar. 31, 2023

Other Income and Expenses [Abstract]

Other Non-interest Income and Expense

NON-INTEREST REVENUE AND EXPENSE

    ASC Topic 606, Revenue from Contracts with Customers ("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 years ended March 31, 2023 and 2022:

	Years Ended March 31,
$ in thousands	2023		2022
Non-interest income
In-scope of Topic 606
Depository fees and charges	$	2,197	$	2,141
Loan fees and service charges	466		225
Other non-interest income	236		2,616
Non-interest income (in-scope of Topic 606)	2,899		4,982
Non-interest income (out-of-scope of Topic 606)	696		2,372
Total non-interest income	$	3,595	$	7,354

    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 years presented:

	Years Ended March 31,
$ in thousands	2023		2022
Other non-interest income:
Correspondent banking fees	$	147	$	2,574
Other	225		307
Total non-interest income	$	372	$	2,881
Other non-interest expense:
Advertising	$	513	$	572
Legal expense	442		626
Insurance and surety	1,200		927
Audit expense	573		851
Data lines / internet	398		410
Retail expenses	933		820
Director's fees	373		344
Other	2,767		2,659
Total non-interest expense	$	7,199	$	7,209