Non-interest Revenue and Expense

9 Months Ended

Dec. 31, 2023

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 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. The Company generally satisfies its performance obligations on contracts with customers as services are rendered, and the transaction prices are typically fixed and charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. 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, revenue from the Bank's participation in JPMorgan Chase's Empowering Change program, 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 nine months ended December 31, 2023 and 2022:

	Three Months Ended December 31,				Nine Months Ended December 31,
$ in thousands	2023		2022		2023		2022
Non-interest income
In-scope of Topic 606
Depository fees and charges	$	543	$	561	$	1,678	$	1,669
Loan fees and service charges	97		68		270		316
Other non-interest income	91		42		236		204
Non-interest income (in-scope of Topic 606)	731		671		2,184		2,189
Non-interest income (out-of-scope of Topic 606)	1,804		321		2,569		611
Total non-interest income	$	2,535	$	992	$	4,753	$	2,800

    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 December 31,				Nine Months Ended December 31,
$ in thousands	2023		2022		2023		2022
Other non-interest income:
BOLI income	$	338	$	42	$	420	$	102
Other	152		48		295		269
Total other non-interest income	$	490	$	90	$	715	$	371
Other non-interest expense:
Advertising	$	68	$	104	$	302	$	368
Legal expense	88		63		428		246
Insurance and surety	320		293		938		878
Audit expense	165		148		496		448
Data lines / internet	100		105		310		299
Security services	15		85		41		234
Retail expenses	285		224		855		690
Operating charge-offs and other losses	154		19		293		53
Director's fees	135		24		346		270
Other	673		660		1,928		1,839
Total other non-interest expense	$	2,003	$	1,725	$	5,937	$	5,325