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Revenue Recognition
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue Recognition REVENUE RECOGNITION
The Company’s primary source of revenue is interest income generated from loans and investment securities. Interest income is recognized according to the terms of the financial instrument agreement over the life of the loan or investment security unless it is determined that the counterparty is unable to continue making interest payments. Interest income also includes prepaid interest fees from commercial customers, which approximates the interest foregone on the balance of the loan prepaid.
The Company’s additional source of income, also referred to as noninterest income, is generated from deposit related fees, interchange fees, loan fees, merchant fees, loan sales and other miscellaneous income and is largely based on contracts with customers. In these cases, the Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. The Company considers a customer to be any party to which the Company will provide goods or services that are an output of the Company’s ordinary activities in exchange for consideration. There is little seasonality with regards to revenue from contracts with customers and all inter-company revenue is eliminated when the Company’s financial statements are consolidated.
Generally, the Company enters into contracts with customers that are short-term in nature where the performance obligations are fulfilled and payment is processed at the same time. Such examples include revenue related to merchant fees, interchange fees and investment services income. In addition, revenue generated from existing customer relationships such as deposit accounts are also considered short-term in nature, because the relationship may be terminated at any time and payment is processed at the time performance obligations are fulfilled. As a result, the Company does not have contract assets, contract liabilities or related receivable accounts for contracts with customers. In cases where collectability is a concern, the Company does not record revenue.
Generally, the pricing of transactions between the Company and each customer is either (i) established within a legally enforceable contract between the two parties, as is the case with the loan sales, or (ii) disclosed to the customer at a specific point in time, as is the case when a deposit account is opened or before a new loan is underwritten. Fees are usually fixed at a specific amount or as a percentage of a transaction amount. No judgment or estimates by management are required to record revenue related to these transactions and pricing is clearly identified within these contracts.
The Company primarily operates in one geographic region, Northern and Central New Jersey, metropolitan New York and contiguous areas. Therefore, all significant operating decisions are based upon analysis of the Company as one operating segment or unit.
We disaggregate our revenue from contracts with customers by contract-type and timing of revenue recognition, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Noninterest income not generated from customers during the Company’s ordinary activities primarily relates to mortgage servicing rights, gains/losses on the sale of investment securities, gains/losses on the sale of other real estate owned, gains/losses on the sale of property, plant and equipment, and income from bank owned life insurance.
The following table sets forth the components of noninterest income for the years ended December 31, 2020, 2019 and 2018:
(in thousands)202020192018
Deposit Related Fees and Charges
  Debit card interchange income$5,431 $5,719 $5,150 
  Overdraft charges2,582 4,052 3,938 
  ATM service charges522 826 830 
  Demand deposit fees and charges 540 501 540 
  Savings service charges73 107 126 
Total9,148 11,205 10,584 
Commissions and Fees
  Loan fees1,227 1,510 1,264 
  Wire transfer charges1,412 1,223 1,093 
  Investment services income1,630 1,651 1,314 
  Merchant fees 833 813 784 
  Commissions from sales of checks292 407 434 
  Safe deposit income345 364 371 
  Other income181 250 264 
Total5,920 6,218 5,524 
Gains on Sale of Loans3,322 1,660 1,329 
Other Income
  Gains on customer swap transactions4,719 3,231 1,992 
  Title insurance income177 183 195 
  Other income438 1,463 295 
Total5,334 4,877 2,482 
Revenue not from contracts with customers3,386 2,836 2,391 
Total Noninterest Income$27,110 $26,796 $22,310 
Timing of Revenue Recognition
  Products and services transferred at a point in time
$23,649 $23,885 $19,844 
  Products and services transferred over time75 75 75 
  Revenue not from contracts with customers3,386 2,836 2,391 
Total Noninterest Income$27,110 $26,796 $22,310