NEW INDEPENDENT BANCSHARES, INC. AND SUBSIDIARY Notes to the Consolidated Financial Statements
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES( Continued)
o. Revenue Recognition( Continued) Card and Processing Revenue: The Company earns ATM and interchange fees from debit / credit 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 provided to the cardholder.
p. Retirement Benefit Plans The Bank sponsors an employee stock ownership plan( ESOP), as described in Section 4975( e)( 7) of the Internal Revenue Code and Section 407( d)( 6) of ERISA, and a stock bonus plan, qualified under Section 401( a) of the Code with a cash or deferred arrangement qualified under Sections 401( a) and 401( k) of the Code. Matching contributions are recognized in the period in which they are earned by participants. Discretionary contributions are recognized when declared by the Bank.
q. Segment Reporting FASB ASC 280, Segment Reporting, encourages nonpublic entities to report selected information about operating segments in its financial reports issued to its shareholders. Based on the analysis performed by the Company, management has determined that the Company only has one operating segment, which is commercial banking. The decision-makers use consolidated results to make operating and strategic decisions, and therefore are not required to disclose any additional segment information.
r. Income Taxes Income tax expense is based on taxes payable or refundable for the current year and the change in deferred taxes. Deferred taxes are the expected future tax amounts for the temporary differences between tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, computed using enacted tax rates. As changes in tax laws or rates are enacted, deferred taxes are adjusted through the provision for income taxes. In addition deferred taxes are reduced by a valuation allowance when, in the opinion of management, it is more likely than not some portion of all the deferred tax assets will not be realized.
s. Net Income Per Common Share Net income per common share is determined by dividing net income by the weighted average number of common shares actually outstanding. The weighted average number of shares outstanding during 2025 and 2024 was 257,741 and 222,842, respectively. For purposes of computing earnings per share, ESOP shares that have been allocated or committed to be released have been considered outstanding.
t. Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale debt securities, are reported as a separate component of the stockholders ' equity section of the consolidated balance sheet. Such items, along with net income, are components of comprehensive income.
30 | 2025 NWSB Annual Report