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REVENUE FROM CONTRACTS WITH CUSTOMERS
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS

9. REVENUE FROM CONTRACTS WITH CUSTOMERS

All of the Company’s revenue from contracts with customers within the scope of ASC 606 is recognized within noninterest income.

The following tables present the sources of noninterest income for the periods indicated:

 

 

For the Three Months Ended September 30,

 

(In thousands)

 

2025

 

 

2024

 

Service charges on deposits

 

 

 

 

 

 

Overdraft fees

 

$

103

 

 

$

123

 

Interchange income

 

 

252

 

 

 

256

 

Other

 

 

829

 

 

 

948

 

Wealth management fees (A)

 

 

15,798

 

 

 

15,150

 

Loss on sale of property

 

 

(3

)

 

 

—

 

Corporate advisory fee income

 

 

692

 

 

 

55

 

Other (B)

 

 

2,450

 

 

 

2,406

 

Total noninterest other income

$

20,121

 

 

$

18,938

 

 

 

 

For the Nine Months Ended September 30,

 

(In thousands)

 

2025

 

 

2024

 

Service charges on deposits

 

 

 

 

 

 

Overdraft fees

 

$

318

 

 

$

345

 

Interchange income

 

 

752

 

 

 

761

 

Other

 

 

2,420

 

 

 

2,888

 

Wealth management fees (A)

 

 

47,176

 

 

 

45,976

 

Loss on sale of property

 

 

(9

)

 

 

(4

)

Gain on lease termination

 

 

875

 

 

 

—

 

Corporate advisory fee income

 

 

812

 

 

 

976

 

Other (B)

 

 

8,082

 

 

 

8,252

 

Total noninterest other income

$

60,426

 

 

$

59,194

 

 

(A)
Includes investment brokerage fees.
(B)
All of the other category is outside the scope of ASC 606.

The following tables present the sources of noninterest income by operating segment for the periods indicated:

 

 

 

For the Three Months Ended
 September 30,

 

 

For the Three Months Ended
 September 30,

 

 

 

2025

 

 

2024

 

(In thousands)

 

 

 

 

Wealth

 

 

 

 

 

 

 

 

Wealth

 

 

 

 

Revenue by Operating Segment

 

Banking

 

 

Management

 

 

Total

 

 

Banking

 

 

Management

 

 

Total

 

Service charges on deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overdraft fees

 

$

103

 

 

$

—

 

 

$

103

 

 

$

123

 

 

$

—

 

 

$

123

 

Interchange income

 

 

252

 

 

 

—

 

 

 

252

 

 

 

256

 

 

 

—

 

 

 

256

 

Other

 

 

829

 

 

 

—

 

 

 

829

 

 

 

948

 

 

 

—

 

 

 

948

 

Wealth management fees (A)

 

 

—

 

 

 

15,798

 

 

 

15,798

 

 

 

—

 

 

 

15,150

 

 

 

15,150

 

Loss on sale of property

 

 

(3

)

 

 

—

 

 

 

(3

)

 

 

—

 

 

 

—

 

 

 

—

 

Corporate advisory fee income

 

 

692

 

 

 

—

 

 

 

692

 

 

 

55

 

 

 

—

 

 

 

55

 

Other (B)

 

 

2,315

 

 

 

135

 

 

 

2,450

 

 

 

2,222

 

 

 

184

 

 

 

2,406

 

Total noninterest income

 

$

4,188

 

 

$

15,933

 

 

$

20,121

 

 

$

3,604

 

 

$

15,334

 

 

$

18,938

 

 

 

 

 

For the Nine Months Ended
September 30,

 

 

For the Nine Months Ended
September 30,

 

 

 

2025

 

 

2024

 

(In thousands)

 

 

 

 

Wealth

 

 

 

 

 

 

 

 

Wealth

 

 

 

 

Revenue by Operating Segment

 

Banking

 

 

Management

 

 

Total

 

 

Banking

 

 

Management

 

 

Total

 

Service charges on deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overdraft fees

 

$

318

 

 

$

—

 

 

$

318

 

 

$

345

 

 

$

—

 

 

$

345

 

Interchange income

 

 

752

 

 

 

—

 

 

 

752

 

 

 

761

 

 

 

—

 

 

 

761

 

Other

 

 

2,420

 

 

 

—

 

 

 

2,420

 

 

 

2,888

 

 

 

—

 

 

 

2,888

 

Wealth management fees (A)

 

 

—

 

 

 

47,176

 

 

 

47,176

 

 

 

—

 

 

 

45,976

 

 

 

45,976

 

Loss on sale of property

 

 

(9

)

 

 

—

 

 

 

(9

)

 

 

(4

)

 

 

—

 

 

 

(4

)

Gain on lease termination

 

 

875

 

 

 

—

 

 

 

875

 

 

 

—

 

 

 

—

 

 

 

—

 

Corporate advisory fee income

 

 

812

 

 

 

—

 

 

 

812

 

 

 

976

 

 

 

—

 

 

 

976

 

Other (B)

 

 

7,637

 

 

 

445

 

 

 

8,082

 

 

 

7,650

 

 

 

602

 

 

 

8,252

 

Total noninterest income

 

$

12,805

 

 

$

47,621

 

 

$

60,426

 

 

$

12,616

 

 

$

46,578

 

 

$

59,194

 

 

(A)
Includes investment brokerage fees.
(B)
All of the other category 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: The Company earns fees from its deposit customers for certain transaction account maintenance, and overdraft fees. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering, and ACH fees, 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 on deposits are withdrawn from the customer’s account balance.

Interchange income: The Company earns interchange fees from debit cardholder transactions conducted through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Interchange income is presented gross of cardholder rewards. Cardholder rewards are included in other expenses in the statement of income. Cardholder rewards reduced interchange income for the third quarter of 2025 by $17,000 and by $6,000 for the same quarter in 2024. Cardholder rewards reduced interchange income for the nine months ended September 30, 2025 by $41,000 and by $12,000 for the same period in 2024.

Wealth management fees (gross): The Company earns wealth management fees from its contracts with wealth management clients to manage assets for investment. These fees are charged on a monthly or quarterly basis in accordance with its investment advisory agreements. Fees are generally assessed based on a tiered scale, based on the market value of AUM at month or quarter end. Other non-AUM based fees are charged on a fixed basis or as services are rendered.

Investment brokerage fees (net): The Company earns fees from investment brokerage services provided to its customers by a third-party service provider. The Company receives commissions from the third-party service provider twice a month based upon customer activity for the month. The fees are recognized monthly, and a receivable is recorded until commissions are generally paid by the 15th of the following month. Because the Company (i) acts as an agent in arranging the relationship between the customer and the third-party service provider and (ii) does not control the services rendered to the customers, investment brokerage fees are presented net of related costs.

Gains/(losses) on sales of property: The Company records a gain or loss from the sale of property when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of property to the buyer, the Company assesses whether the buyer is committed to perform its obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the property asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain/(loss) on sale if a significant financing component is present. There was a $3,000 and $9,000 loss recorded by the Company on the sale of property for the three and nine months ended September 30, 2025. There was a $4,000 loss on sale of property for nine months ended September 30, 2024. No gains of losses were recorded on the sale of property for the three months ended September 30, 2024.

Gain on lease termination: In June 2025, the Company terminated its lease agreement for its Piscataway branch location that was no longer in use. The lease termination was finalized through a negotiated buyout payment of $275,000. At the time of termination, the Company had an accrued lease liability of $1.1 million related to the remaining lease obligation. As a result of the termination, the Company recognized a gain of $875,000, which is included in other income in the Consolidated Statement of Income. The gain reflects the difference between the accrued lease liability and the buyout payment.

Corporate advisory fee income: The Company provides our clients with financial advisory and underwriting services. Investment banking revenues, which includes mergers and acquisition advisory fees and private placement fees, are recorded when the performance obligation for the transaction is satisfied under the terms of each engagement. Reimbursed expenses are reported in other revenue on the statement of operations. Expenses related to investment banking are recognized as non-compensation expenses on the statement of operations. Amounts received and unearned are included on the statement of financial condition. Expenses related to investment banking deals not completed are recognized in non-compensation expenses on the statement of operations.

The Company’s mergers and acquisition advisory fees generally consist of a nonrefundable up-front fee and success fee. The nonrefundable fee is recorded as deferred revenue upon receipt and recognized at a point in time when the performance obligation is satisfied, or when the transaction is deemed by management to be terminated. Management’s judgment is required in determining when a transaction is considered to be terminated.

Other: All of the other income items are outside the scope of ASC 606.