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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

18.  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 year ended December 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 footnote.

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, which includes the operations of PGB Trust & Investments of Delaware and MCM, consists of: 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 table presents the statements of income and total assets for the Company’s reportable segments for the years ended December 31, 2021, 2020 and 2019:

 

 

 

Year Ended December 31, 2021

 

 

 

 

 

 

 

Wealth

 

 

 

 

 

(In thousands)

 

Banking

 

 

Management

 

 

Total

 

Net interest income

 

$

132,195

 

 

$

5,866

 

 

$

138,061

 

Noninterest income

 

 

17,342

 

 

 

54,901

 

 

 

72,243

 

Total income

 

 

149,537

 

 

 

60,767

 

 

 

210,304

 

Provision for loan losses

 

 

6,475

 

 

 

—

 

 

 

6,475

 

Compensation and benefits

 

 

56,970

 

 

 

24,894

 

 

 

81,864

 

Premises and equipment expense

 

 

14,805

 

 

 

2,360

 

 

 

17,165

 

FDIC expense

 

 

2,071

 

 

 

—

 

 

 

2,071

 

Other noninterest expense

 

 

14,407

 

 

 

10,660

 

 

 

25,067

 

Total noninterest expense

 

 

94,728

 

 

 

37,914

 

 

 

132,642

 

Income before income tax expense

 

 

54,809

 

 

 

22,853

 

 

 

77,662

 

Income tax expense

 

 

14,847

 

 

 

6,193

 

 

 

21,040

 

Net income

 

$

39,962

 

 

$

16,660

 

 

$

56,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

5,973,343

 

 

$

104,650

 

 

$

6,077,993

 

 

 

 

Year Ended December 31, 2020

 

 

 

 

 

 

 

Wealth

 

 

 

 

 

(In thousands)

 

Banking

 

 

Management

 

 

Total

 

Net interest income

 

$

121,583

 

 

$

6,019

 

 

$

127,602

 

Noninterest income

 

 

19,104

 

 

 

42,656

 

 

 

61,760

 

Total income

 

 

140,687

 

 

 

48,675

 

 

 

189,362

 

Provision for loan losses

 

 

32,400

 

 

 

—

 

 

 

32,400

 

Compensation and benefits

 

 

54,044

 

 

 

23,472

 

 

 

77,516

 

Premises and equipment expense

 

 

14,056

 

 

 

2,321

 

 

 

16,377

 

FDIC expense

 

 

1,975

 

 

 

—

 

 

 

1,975

 

Other noninterest expense

 

 

19,694

 

 

 

9,397

 

 

 

29,091

 

Total noninterest expense

 

 

122,169

 

 

 

35,190

 

 

 

157,359

 

Income before income tax expense

 

 

18,518

 

 

 

13,485

 

 

 

32,003

 

Income tax expense

 

 

2,170

 

 

 

3,641

 

 

 

5,811

 

Net income

 

$

16,348

 

 

$

9,844

 

 

$

26,192

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

5,798,770

 

 

$

91,672

 

 

$

5,890,442

 

 

 

 

 

Year Ended December 31, 2019

 

 

 

 

 

 

 

Wealth

 

 

 

 

 

(In thousands)

 

Banking

 

 

Management

 

 

Total

 

Net interest income

 

$

114,983

 

 

$

5,291

 

 

$

120,274

 

Noninterest income

 

 

14,999

 

 

 

39,697

 

 

 

54,696

 

Total income

 

 

129,982

 

 

 

44,988

 

 

 

174,970

 

Provision for loan losses

 

 

4,000

 

 

 

—

 

 

 

4,000

 

Compensation and benefits

 

 

48,925

 

 

 

21,204

 

 

 

70,129

 

Premises and equipment expense

 

 

12,533

 

 

 

2,202

 

 

 

14,735

 

FDIC expense

 

 

277

 

 

 

—

 

 

 

277

 

Other noninterest expense

 

 

10,932

 

 

 

8,775

 

 

 

19,707

 

Total noninterest expense

 

 

76,667

 

 

 

32,181

 

 

 

108,848

 

Income before income tax expense

 

 

53,315

 

 

 

12,807

 

 

 

66,122

 

Income tax expense

 

 

15,069

 

 

 

3,619

 

 

 

18,688

 

Net income

 

$

38,246

 

 

$

9,188

 

 

$

47,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

5,095,744

 

 

$

87,135

 

 

$

5,182,879