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Note 14 - Revenue From Contracts with Clients
3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

NOTE 14 – REVENUE FROM CONTRACTS WITH CLIENTS

 

All of the Company’s revenue from contracts with clients in the scope of ASC 606 is recognized within Non-Interest Income. The following table presents the Company’s sources of non-interest income for the three months ended March 31, 2026 and 2025.

 

  

Three Months Ended

 

(In thousands)

 

March 31, 2026

  

March 31, 2025

 

Service charges and fees

 $821  $762 

Foreign exchange income

  363   220 

Bank-owned life insurance income (1)

  106   90 

Warrant and success fee income (1)

  3   - 

Other investment income (1)

  (22)  47 

Other income (2)

  196   52 

Total non-interest income

 $1,467  $1,171 

 


(1) Not within the scope of ASC 606.

(2) The Other income category includes $101 thousand and $46 thousand of revenue within the scope of ASC 606 for the three months ended March 31, 2026 and 2025, respectively.

 

Service charges and bank fees - Service charges on deposit accounts consist of account analysis fees, monthly service fees and other deposit account related fees. Account analysis and monthly service 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. Other deposit account related fees are largely transaction based and therefore fees are recognized at the point in time when the Company has satisfied its performance obligation. The Company earns other service charges, commissions, and fees from its clients for transaction-based services. Such services include debit card, ATM, and other service charges. In each case, these service charges and fees are recognized in income at the time or within the same period that the Company’s performance obligation is satisfied. The Company earns interchange fees from debit cardholder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services.

 

Foreign exchange income The Company earns foreign exchange fees from clients who complete a transaction in a foreign currency. The fees represent a percentage of the underlying transaction value and are assessed concurrently with the transaction processing service provided to the client. They are then recognized at the end of the month following the transaction processing service.

 

Gains/Losses on Sale of OREO  The Company records a gain from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset is derecognized, and the gain on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain on sale, the Company adjusts the transaction price and related gain on sale if a significant financing component is present. There were no gains or losses on the sale of OREO during the three months ended March 31, 2026 or March 31, 2025.