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Revenue Recognition
 9 Months Ended
Sep. 30, 2023
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, investment services 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 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 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 income from bank owned life insurance, 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 mortgage servicing rights.
The following table sets forth the components of noninterest income for the three and nine months ended September 30, 2023 and 2022:
For the Three Months Ended September 30,For the Nine Months Ended September 30,
(in thousands)2023202220232022
Deposit-Related Fees and Charges
Debit card interchange income$744 $1,686 $4,077 $4,995 
Overdraft charges875 802 2,476 2,327 
ATM service charges205 220 580 599 
Demand deposit fees and charges150 79 429 166 
Savings service charges22 21 67 58 
Total deposit-related fees and charges1,996 2,808 7,629 8,145 
Commissions and fees
Loan fees513 712 1,637 2,302 
Wire transfer charges480 502 1,386 1,484 
Investment services income200 457 911 1,562 
Merchant fees 303 300 898 853 
Commissions from sales of checks89 88 268 263 
Safe deposit income108 105 314 258 
Other income30 42 87 129 
Total commissions and fees1,723 2,206 5,501 6,851 
Gains on sales of loans held for sale349 355 1,008 2,496 
Other income
Gains on customer swap transactions697 711 1,114 1,110 
Title insurance income— 44 19 46 
Other income87 82 673 870 
Total other income784 837 1,806 2,026 
Revenue not from contracts with customers566 1,027 2,408 1,558 
Total Noninterest Income$5,418 $7,233 $18,352 $21,076 
Timing of Revenue Recognition:
Products and services transferred at a point in time4,852 6,206 15,944 19,518 
Revenue not from contracts with customers566 1,027 2,408 1,558 
Total Noninterest Income$5,418 $7,233 $18,352 $21,076