REVENUE FROM CONTRACTS WITH CUSTOMERS

12 Months Ended

Sep. 30, 2021

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

(29)    REVENUE FROM CONTRACTS WITH CUSTOMERS

Substantially all of the Company’s revenue from contracts with customers within the scope of FASB ASC 606 is included in the core banking segment and is recognized within noninterest income.  The following table presents the Company’s sources of noninterest income for the years ended September 30, 2021, 2020 and 2019:

	Year Ended
	September 30,
(In thousands)	2021		2020		2019
Service charges on deposit accounts	$	1,468	$	1,581	$	1,957
ATM and interchange fees		2,399		2,116		1,949
Investment advisory income		589		288		324
Other		103		101		137
Revenue from contracts with customers		4,559		4,086		4,367
Gain (loss) on securities		—		7		(74)
Gain on sale of SBA loans		8,740		5,673		4,569
Mortgage banking income		104,504		120,733		33,044
Increase in cash value of life insurance		785		732		580
Real estate lease income		592		589		594
Other		1,256		1,531		774
Other noninterest income		115,877		129,265		39,487
Total noninterest income	$	120,436	$	133,351	$	43,854

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 wire fees, stop payment charges, statement rendering, and ACH fees, 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 Interchange Fees:  The Company earns ATM usage fees and interchange fees from debit cardholder transactions conducted through a payment network.  ATM fees are recognized when 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. The costs of related loyalty rewards programs are netted against interchange income as a direct cost of the revenue generating activity.

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 when the transaction is executed.  Other related fees, which are based on a fixed fee schedule, are recognized when the services are rendered.

(29 – continued)

Other Income:  Other income from contracts with customers includes check cashing and cashier’s check fees, safe deposit box fees and cash advance fees.  This revenue is recognized at the time the transaction is executed or over the period the Company satisfies the performance obligation.