NOTE 27: NONINTEREST INCOME

The Company has included the following table regarding the Company’s noninterest income for the years ended December 31, 2024 and 2023:


	For the years ended
(In thousands)	December 31, 2024			December 31, 2023
Service charges on deposit accounts
Insufficient funds fees	$	819		$	686
Deposit related fees		534			436
ATM fees		83			127
Total service charges on deposit accounts		1,436			1,249
Fee Income
Insurance agency revenue		1,073			1,304
Investment services revenue		470			454
ATM fees surcharge		242			225
Banking house rents collected		194			207
Total fee income		1,979			2,190
Card income
Debit card interchange fees		875			616
Merchant card fees		61			60
Total card income		936			676
Mortgage fee income and realized gains on sales of loans and foreclosed real estate
Loan servicing fees		375			307
Net gains on sales of loans and foreclosed real estate		187			181
Total mortgage fee income and realized gains on sales of loans and foreclosed real estate		562			488
Total		4,913			4,603
Earnings and gains on bank owned life insurance		854			630
Net realized (losses) gains on sales and redemptions of investment securities		(71	)		62
Net realized gains (losses) on sales of marketable equity securities		197			(255	)
Gain on sale of subsidiary		3,169			-
Loss on sale of premises and equipment		(13	)		-
Non-recurring gain on lease renegotiations		245			-
Other miscellaneous income		267			150
Total noninterest income	$	9,561		$	5,190

The following is a discussion of key revenues within the scope of ASC 606:

•

Service charges on deposit accounts – Revenue is earned through insufficient funds fees, customer initiated activities or passage of time for deposit related fees, and ATM service fees. Transaction-based fees are recognized at the time the transaction is executed, which is the same time the Company’s performance obligation is satisfied. Account maintenance fees are earned over the course of the month as the monthly maintenance performance obligation to the customer is satisfied.

•

Fee income – Revenue is earned through commissions on insurance and securities sales, ATM surcharge fees, and banking house rents collected. The Company earns investment advisory fee income by providing investment management services to customers under investment management contracts. As the direction of investment management accounts is provided over time, the performance obligation to investment management customers is satisfied over time, and therefore, revenue is recognized over time.

•

Card income – Card income consists of interchange fees from consumer debit card networks and other related services. Interchange rates are set by unaffiliated card processing networks. Interchange fees are based on purchase volumes transacted and certain other factors and are recognized as transactions occur.

•

Mortgage fee income and realized gain on sale of loans and foreclosed real estate – Revenue from mortgage fee income and realized gain on sale of loans and foreclosed real estate is earned through the origination of residential and commercial mortgage

loans, sales of one-to-four family residential mortgage loans, sales of government guarantees portions of SBA loans, and sales of foreclosed real estate, and is earned as the individual transactions occur.

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.

Pathfinder Bancorp, Inc. Revenue Disclosure

About Revenue Disclosures

Other Available Disclosures