John Marshall Bancorp, Inc. Revenue Disclosure
Note 17— Revenue
Certain of the Company’s non-interest revenue streams are derived from short-term contracts associated with services provided to deposit account holders as well as other ancillary services, which are accounted for in accordance with ASC 606 – Revenue Recognition. For most of these revenue streams, the duration of the contract does not extend beyond the services performed. Due to the short duration of most customer contracts that generate non-interest income, no significant judgments must be made in the determination of the amount and timing of revenue recognized.
The following table shows the components of non-interest income for the years ended December 31, 2025 and December 31, 2024.
Table 17.1: Components of Non-Interest Income
Year ended | |||||||
December 31, | |||||||
(Dollars in thousands) | | 2025 | | 2024 | | ||
Service charges on deposit accounts (1) | |
| | ||||
Overdrawn account fees | $ | 81 | $ | 84 | |||
Account service fees |
| 255 |
| 265 | |||
Other service charges and fees (1) |
| |
| | |||
Interchange income |
| 327 |
| 363 | |||
Other charges and fees |
| 244 |
| 292 | |||
Net gain (loss) on premises and equipment (1) |
| (3) |
| 1 | |||
Insurance commissions (1) |
| 328 |
| 416 | |||
Gain on sale of government guaranteed loans | 322 | 520 | |||||
Non-qualified deferred compensation plan asset gains, net | 402 | 236 | |||||
Other operating income (2) |
| 118 |
| 94 | |||
Total non-interest income | $ | 2,074 | $ | 2,271 | |||
| (1) | Income within the scope of ASC 606 – Revenue Recognition. |
| (2) | Includes other operating income within the scope of ASC 606 amounting to $17 thousand for the year ended December 31, 2025. Includes other operating income of $101 thousand related to swap fee income on a back-to-back loan swaps for the year ended December 31, 2025, which is outside the scope of ASC 606. Includes other operating income within the scope of ASC 606 amounting to $30 thousand for the year ended December 31, 2024. Includes other operating income of $64 thousand related to swap fee income on a back-to-back loan swaps for the year ended December 31, 2024, which is outside the scope of ASC 606. |
A description of the Company’s revenue streams accounted for under ASC 606 follows:
Service charges on deposit accounts
Service charges on deposit accounts consist of overdrawn account fees and account service fees. Overdrawn account fees are recognized at the point in time that the overdraft occurs. Account service fees consist primarily of account analysis and other maintenance fees and are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Payment for service charges on deposit accounts is received immediately or in the following month through a direct charge to customers’ accounts.
Other service charges and fees
Other service charges and fees are primarily comprised of interchange income and other charges and fees. Interchange income is earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. Other charges and fees include revenue from processing wire transfers, cashier’s checks, and other transaction based services. The Company’s performance obligation for these charges and fees are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. The Company acts as an agent in these transactions and recognizes generated income on a net basis. Payment is typically received immediately or in the following month.
Net gains (losses) on premises and equipment
The Company records a gain or loss on the disposition of premises and equipment when control of the property transfers or is involuntarily converted to a monetary asset (e.g., insurance proceeds). This income is reflected in other income on the Company’s Consolidated Statements of Income.
Insurance commissions
The Company performs the function of an insurance intermediary by introducing the policyholder and insurer and is compensated in the form of a commission for placement of an insurance policy based on a percentage of premiums issued and maintained during the period. Revenue is recognized when received.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 28, 2025 | |
| 2023 | Mar 20, 2024 | |
| 2022 | Mar 23, 2023 | |
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.