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BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

6.  BUSINESS SEGMENTS

The Company assesses its results among two operating segments, Banking and Peapack Private. Management uses certain methodologies to allocate income and expense to the business segments. A funds transfer pricing methodology is used to assign interest income and interest expense.  Certain indirect expenses are allocated to segments. These include support unit expenses such as technology and operations and other support functions. Taxes are allocated to each segment based on the effective rate for the period shown. The Banking segment’s effective tax rate for the three months ended March 31, 2020 was affected by a $3.3 million income tax benefit recorded during the first quarter of 2020. For additional information related to this income tax benefit refer to the Income Taxes section of Management’s Discussion and Analysis.

Banking

The Banking segment includes: commercial (includes C&I and equipment finance), commercial real estate, multifamily, residential and consumer lending activities; treasury management services; C&I advisory services; escrow management; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support and sales.

Peapack Private

Peapack Private includes PGB Trust & Investments of Delaware and Murphy Capital, includes investment management services provided for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian, and other financial planning, tax preparation and advisory services.

The following tables present the statements of income and total assets for the Company’s reportable segments for the three months ended March 31, 2021 and 2020.

 

 

 

Three Months Ended March 31, 2021

 

 

 

 

 

 

 

Wealth

 

 

 

 

 

 

 

 

 

 

 

Management

 

 

 

 

 

(In thousands)

 

Banking

 

 

Division

 

 

Total

 

Net interest income

 

$

30,226

 

 

$

1,567

 

 

$

31,793

 

Noninterest income

 

 

5,140

 

 

 

12,680

 

 

 

17,820

 

Total income

 

 

35,366

 

 

 

14,247

 

 

 

49,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan and lease losses

 

 

225

 

 

 

—

 

 

 

225

 

Compensation and employee benefits

 

 

16,428

 

 

 

5,562

 

 

 

21,990

 

Premises and equipment expense

 

 

3,570

 

 

 

543

 

 

 

4,113

 

FDIC insurance expense

 

 

585

 

 

 

—

 

 

 

585

 

Other operating expense

 

 

2,391

 

 

 

2,515

 

 

 

4,906

 

Total operating expense

 

 

23,199

 

 

 

8,620

 

 

 

31,819

 

Income before income tax expense

 

 

12,167

 

 

 

5,627

 

 

 

17,794

 

Income tax expense

 

 

3,159

 

 

 

1,457

 

 

 

4,616

 

Net income

 

$

9,008

 

 

$

4,170

 

 

$

13,178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

5,883,553

 

 

$

86,074

 

 

$

5,969,627

 

 

 

 

Three Months Ended March 31, 2020

 

 

 

 

 

 

 

Wealth

 

 

 

 

 

 

 

 

 

 

 

Management

 

 

 

 

 

(In thousands)

 

Banking

 

 

Division

 

 

Total

 

Net interest income

 

$

30,409

 

 

$

1,338

 

 

$

31,747

 

Noninterest income

 

 

4,229

 

 

 

10,288

 

 

 

14,517

 

Total income

 

 

34,638

 

 

 

11,626

 

 

 

46,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan and lease losses

 

 

20,000

 

 

 

—

 

 

 

20,000

 

Compensation and employee benefits

 

 

13,207

 

 

 

6,019

 

 

 

19,226

 

Premises and equipment expense

 

 

3,421

 

 

 

622

 

 

 

4,043

 

FDIC insurance expense

 

 

250

 

 

 

—

 

 

 

250

 

Other operating expense

 

 

2,606

 

 

 

2,110

 

 

 

4,716

 

Total operating expense

 

 

39,484

 

 

 

8,751

 

 

 

48,235

 

(Loss)/income before income tax (benefit)/expense

 

 

(4,846

)

 

 

2,875

 

 

 

(1,971

)

Income tax (benefit)/expense

 

 

(3,893

)

 

 

549

 

 

 

(3,344

)

Net (loss)/income

 

$

(953

)

 

$

2,326

 

 

$

1,373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

5,734,495

 

 

$

96,963

 

 

$

5,831,458