v3.26.1
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
The Company recognizes revenue from contracts with customers in accordance with ASC 606, Revenue from Contracts with Customers. Revenue (“ASC 606”) is recognized when the Company satisfies its performance obligations by transferring the promised services to customers in an amount that reflects the consideration the Company expects to receive.
The Company’s revenue within the scope of ASC 606 is included in noninterest income and consists primarily of interchange and card revenue, deposit account service charges, university transaction fees, university subscription fees and certain other service-related income. Interest income and other revenue arising from financial instruments, securities transactions, bank-owned life insurance and other activities governed by separate accounting guidance are outside the scope of ASC 606.
The Company’s contracts generally contain a single performance obligation or multiple performance obligations that are satisfied over the same period. Revenue is generally recognized either when the related transaction occurs or over the period in which services are provided. The Company’s contracts generally do not require significant judgment in determining the timing or amount of revenue recognition.
The Company’s material revenue streams within the scope of ASC 606 are described below. Revenue is recognized either at a point in time when the related transaction is completed or over time as the applicable services are provided.
Interchange income and card fees — The Company earns interchange fees from debit cardholder transactions conducted through a payment network. Net interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are earned daily.
Servicing Fees — The Company earned monthly servicing fees through a private label banking program (banking-as-a-service) agreement. Following the acquisition of BM Technologies, Inc. on January 31, 2025, the Company terminated a significant deposit servicing partnership with a third-party program sponsor effective March 31, 2025. The Company continued to provide deposit processing and transition services through September 30, 2025, for which it earned a fixed fee monthly, as specified by the agreement with the external party. Deposit servicing fees related to this arrangement were recognized through the date of termination of such services. Subsequent to termination of such services, any remaining deposit servicing fees are intercompany in nature and are eliminated in consolidation.
Service charges on deposit accounts — The Company earns fees from its deposit customers for transaction-based account maintenance, wires and overdraft services. Transaction-based fees, which include services such as ATM use fees and stop payment charges, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges are withdrawn from the customer’s account balance.
University Fees–transaction activity — Transaction based fees, covering fees charged based on transaction volume, are earned as transactions are processed on behalf of the university clients. These transaction-based fees include, with respect to disbursement services, per disbursement (electronic or paper check) fee and with respect to identity verification services, per report called through the service.
University Fees–subscriptions — The Company earns subscription fees through agreements with universities to manage financial aid disbursements including providing banking and debit card services for recipients. The Company also earns subscription fees under the agreements BM Tech enters into with universities for the identity verification service. Subscription fees are earned each month as services are provided. Deferred revenue related to subscription fees totaled $3.4 million and $3.1 million as of June 30, 2026 and December 31, 2025, respectively, which was included in accrued expenses and other liabilities on the consolidated statements of financial condition.
Other noninterest income — Other noninterest income consists primarily of contracts with third parties for miscellaneous referral fiduciary income or broker income.
The following table presents noninterest income within the scope and out of the scope of ASC 606 by segment for the three months ended June 30, 2026 and 2025:
Three Months Ended
June 30, 2026
BM Tech
Community
Banking
Within ScopeOut of ScopeTotal
(Dollars in thousands)
Non-Interest Income:
Service charges on deposit accounts:
Interchange and card revenue$1,673 $— $1,673 $— $1,673 
Service charges1,691 299 1,990 — 1,990 
University fees - transaction activity518 — 518 — 518 
University fees - subscriptions1,357 — 1,357 — 1,357 
Total service charges on deposit accounts5,239 299 5,538 — 5,538 
Bank-owned life insurance income— 636 — 636 636 
Other non-interest income(1)(2)
300 201 501 — 501 
Total Non-Interest Income$5,539 $1,136 $6,039 $636 $6,675 
Three Months Ended
June 30, 2025
BM Tech
Community
Banking
Within ScopeOut of ScopeTotal
(Dollars in thousands)
Non-Interest Income:
Service charges on deposit accounts:
Interchange and card revenue$1,844 $320 $2,164 $— $2,164 
Servicing fees5,764 — 5,764 — 5,764 
Service charges2,095 301 2,396 — 2,396 
University fees - transaction activity430 — 430 — 430 
University fees - subscriptions1,341 — 1,341 — 1,341 
Total service charges on deposit accounts11,474 621 12,095 — 12,095 
Bank-owned life insurance income— 348 — 348 348 
Other non-interest income(1)(2)
1 762 763 — 763 
Total Non-Interest Income$11,475 $1,731 $12,858 $348 $13,206 
(1)Other noninterest income includes fee income from outside services, trust, rental and other miscellaneous income.
(2)Other noninterest income includes trust, rental and other miscellaneous income.
















The following table presents non-interest income within the scope and out of the scope of ASC 606 by segment for the six months ended June 30, 2026 and 2025:
Six Months Ended
June 30, 2026
BM Tech
Community
Banking
Within ScopeOut of ScopeTotal
(Dollars in thousands)
Non-Interest Income:
Service charges on deposit accounts:
Interchange and card revenue$3,894 $— $3,894 $— $3,894 
Service charges3,678 594 4,272 — 4,272 
University fees - transaction activity1,452 — 1,452 — 1,452 
University fees - subscriptions2,745 — 2,745 — 2,745 
Total service charges on deposit accounts11,769 594 12,363 — 12,363 
Bank-owned life insurance income— 1,190 — 1,190 1,190 
Gain on sale of securities— 108 — 108 108 
Other non-interest income(1)(2)
300 355 655 — 655 
Total Non-Interest Income$12,069 $2,247 $13,018 $1,298 $14,316 

Six Months Ended
June 30, 2025
BM Tech
Community
Banking
Within ScopeOut of ScopeTotal
(Dollars in thousands)
Non-Interest Income:
Service charges on deposit accounts:
Interchange and card revenue$3,463 $707 $4,170 $— $4,170 
Servicing fees8,190 — 8,190 — 8,190 
Service charges3,800 585 4,385 — 4,385 
University fees - transaction activity952 — 952 — 952 
University fees - subscriptions2,232 — 2,232 — 2,232 
Total service charges on deposit accounts18,637 1,292 19,929 — 19,929 
Bank-owned life insurance income— 692 — 692 692 
Other non-interest income(1)(2)
1,401 872 2,273 — 2,273 
Total Non-Interest Income$20,038 $2,856 $22,202 $692 $22,894 

(1)Other noninterest income includes fee income from outside services, trust, rental and other miscellaneous income.
(2)Other noninterest income includes trust, rental and other miscellaneous income.