Note 12 - Revenue From Contracts With Customers

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

12. Revenue from Contracts with Customers

Substantially all of the Company’s revenue from contracts with customers in the scope of FASB ASC 606 is recognized within noninterest income.  The following table presents the Company’s sources of noninterest income for the three months ended March 31, 2024 and 2023:

	Three Months Ended March, 31
(In thousands)	2024		2023
In Scope for ASC 606
Service charges on deposit accounts	$	593	$	562
ATM and debit card fees		1,060		1,087
Investment advisory income		13		12
Other		35		33
Revenue from contracts with customers		1,701		1,694
Out of Scope for ASC 606
Net gains on loans and investments		65		223
Increase in cash value of life insurance		48		45
Other		85		29
Other noninterest income		198		297
Total noninterest income	$	1,899	$	1,991

A description of the Company’s revenue streams accounted for under FASB ASC 606 follows:

Service Charges on Deposit Accounts:  The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services.  Transaction-based fees, which include services such as stop payment charges and statement rendering, are recognized at the time the transaction is executed as that is the point in 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. 

ATM and Debit Card Fees:  The Company earns ATM usage fees and interchange fees from debit cardholder transactions conducted through a payment network.  ATM fees are recognized at the point in time the transaction occurs.  Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder.

Investment Advisory Income:  The Company earns trust, insurance commissions, brokerage commissions and annuities income from its contracts with customers to manage assets for investment, and/or to transact on their accounts.  These fees are primarily earned over time as the Company provides the contracted services and are generally assessed based on the market value of assets under management.  Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed.  Other related fees, which are based on a fixed fee schedule, are recognized when the services are rendered.

Other Income:  Other income from contracts with customers includes safe deposit box fees and ACH origination fees.  This revenue is recognized at the time the transaction is executed or over the period the Company satisfies the performance obligation.