Burke & Herbert Financial Services Corp.BHRB
Burke & Herbert Financial Services Corp. Revenue Disclosure
Revenue from Contracts with Customers
All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. ASC 606 is applicable to non-interest revenue streams, such as trust and wealth management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions.
The following table presents the components of non-interest income for the years ended December 31, 2025, December 31, 2024, and December 31, 2023 (in thousands):
| December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
Service charges and fees(1) | |||||||||||||||||
| Deposit related fees | $ | 7,815 | $ | 6,575 | $ | 2,410 | |||||||||||
| Wire fees | 376 | 480 | 350 | ||||||||||||||
| Other fees | 6 | 144 | 86 | ||||||||||||||
Fiduciary and wealth management(1) | |||||||||||||||||
| Trust fees | 6,122 | 4,919 | 3,074 | ||||||||||||||
| Advisory fees | 2,677 | 2,385 | 1,866 | ||||||||||||||
| Other fees | 1,656 | 1,107 | 414 | ||||||||||||||
Net gains (losses) on securities(2) | 147 | 1,357 | (112) | ||||||||||||||
Income from life insurance(2) | 8,130 | 4,686 | 2,844 | ||||||||||||||
Bank debit and other card revenue(1) | 12,264 | 9,772 | 4,922 | ||||||||||||||
Other non-interest income(1) | |||||||||||||||||
| Safety deposit fees | 510 | 441 | 359 | ||||||||||||||
| Servicing release premium | 297 | 484 | 138 | ||||||||||||||
Customer loan swap fees | 731 | 556 | 414 | ||||||||||||||
| Investor servicing income | 492 | 345 | — | ||||||||||||||
| Letter of credit fees | 465 | 364 | 89 | ||||||||||||||
Unfunded commitment purchase accounting adjustment(2) | 156 | 547 | — | ||||||||||||||
Other non-interest(3) | 4,266 | 1,102 | 455 | ||||||||||||||
| Total non-interest income | $ | 46,110 | $ | 35,264 | $ | 17,309 | |||||||||||
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(1)Income within the scope of ASC 606 - Revenue Recognition
(2)Income excluded from the scope of ASC 606 - Revenue Recognition
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A description of the Company’s revenue streams accounted for under ASC 606 follows:
Service charges and fees
Service charges and fees on deposit accounts consist of monthly service fees, check orders, and other deposit account related fees. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied at a point in time, and the related revenue recognized. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts.
Bank debit and other card revenue
Debit card fees and merchant & other credit fees charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. Merchant services income mainly consists of fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation is largely satisfied, and the related revenue is recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month.
Income from fiduciary & wealth management activities
Fiduciary and wealth management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. The Company does not earn performance-based incentives. Optional services are transactional-based with the Company’s performance obligation being satisfied at a point in time (i.e., as incurred), and that allows the Company to recognize the related revenue associated with that transaction. Payment is received shortly after services are rendered.
Other non-interest income
Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. The Company earns a servicing release premium for residential loans sold with servicing released to third-party investors. In some cases, the Company will retain servicing and that will result in investor servicing income being recognized monthly as interest payments are collected from the borrower. Other items captured within this category are recognized at a point in time such as letter of credit fees.
Part of the Summit merger resulted in the Company recognizing a liability for the unfunded commitments that were assumed as part of the transaction. As these commitments mature, the Company reduces this liability that is recorded, within “Accrued Interest and Other Liabilities” on the Consolidated Balance Sheets, and records non-interest income.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 22, 2024 | |
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.