AUBURN NATIONAL BANCORPORATION, INCAUBN

AUBURN NATIONAL BANCORPORATION, INC Revenue Disclosure

10-KFiled Mar 17, 20261 min read
Revenue Recognition
The Company’s sources of
income that fall within the scope of Accounting Standards Codification (“ASC”) 606,
Revenue
from Contracts with Customers,
include service charges on deposits, interchange fees and
gains, and losses on sales of
other real estate, all of which are presented as components of noninterest income.
The following is a summary of the
revenue streams that fall within the scope of ASC 606:
Service charges on deposits and ATM
and interchange fees – Fees from these services are either transaction-based, for
which the performance obligations are satisfied when the individual transaction
is processed, or set periodic service
charges, for which the performance obligations are satisfied
over the period the service is provided. Transaction-based
fees
are recognized at the time the transaction is processed, and periodic service
charges are recognized over the service period.
Gains on sales of other real estate
–
A gain on sale should be recognized when a contract for sale exists and control of the
asset has been transferred to the buyer.
ASC 606 lists several criteria required to conclude that a contract for sale exists,
including a determination that the institution will collect substantially all of
the consideration to which it is entitled. In
addition to the loan-to-value, the analysis is based on various other factors, including the credit quality
of the borrower, the
structure of the loan, and any other factors that may affect
collectability.

Historical Timeline

Fiscal YearFiled
2025Mar 17, 2026Showing above
2024Mar 11, 2025
2020Mar 9, 2021
2019Mar 6, 2020
2018Mar 12, 2019

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

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