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BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

7. 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.

Banking

The Banking segment includes: commercial (includes C&I and equipment finance), commercial real estate, multifamily, commercial construction, 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, 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 tables present the statements of income and total assets for the Company’s reportable segments for the three and six months ended June 30, 2024 and 2023.

 

 

 

Three Months Ended June 30, 2024

 

 

 

 

 

 

Peapack

 

 

 

 

(In thousands)

 

Banking

 

 

Private

 

 

Total

 

Net interest income

 

$

34,462

 

 

$

580

 

 

$

35,042

 

Noninterest income

 

 

4,925

 

 

 

16,630

 

 

 

21,555

 

Total income

 

 

39,387

 

 

 

17,210

 

 

 

56,597

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

3,911

 

 

 

—

 

 

 

3,911

 

Compensation and benefits

 

 

21,874

 

 

 

8,010

 

 

 

29,884

 

Premises and equipment expense

 

 

5,042

 

 

 

734

 

 

 

5,776

 

FDIC expense

 

 

870

 

 

 

—

 

 

 

870

 

Other operating expense

 

 

4,630

 

 

 

1,966

 

 

 

6,596

 

Total operating expense

 

 

36,327

 

 

 

10,710

 

 

 

47,037

 

Income before income tax expense

 

 

3,060

 

 

 

6,500

 

 

 

9,560

 

Income tax expense

 

 

547

 

 

 

1,483

 

 

 

2,030

 

Net income

 

$

2,513

 

 

$

5,017

 

 

$

7,530

 

 

 

 

Three Months Ended June 30, 2023

 

 

 

 

 

 

Peapack

 

 

 

 

(In thousands)

 

Banking

 

 

Private

 

 

Total

 

Net interest income

 

$

38,103

 

 

$

818

 

 

$

38,921

 

Noninterest income

 

 

4,072

 

 

 

14,503

 

 

 

18,575

 

Total income

 

 

42,175

 

 

 

15,321

 

 

 

57,496

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

1,696

 

 

 

—

 

 

 

1,696

 

Compensation and employee benefits

 

 

17,949

 

 

 

8,405

 

 

 

26,354

 

Premises and equipment expense

 

 

4,023

 

 

 

706

 

 

 

4,729

 

FDIC insurance expense

 

 

729

 

 

 

—

 

 

 

729

 

Other operating expense

 

 

3,855

 

 

 

2,025

 

 

 

5,880

 

Total operating expense

 

 

28,252

 

 

 

11,136

 

 

 

39,388

 

Income before income tax expense

 

 

13,923

 

 

 

4,185

 

 

 

18,108

 

Income tax expense

 

 

3,816

 

 

 

1,147

 

 

 

4,963

 

Net income

 

$

10,107

 

 

$

3,038

 

 

$

13,145

 

 

 

 

Six Months Ended June 30, 2024

 

 

 

 

 

 

Peapack

 

 

 

 

(In thousands)

 

Banking

 

 

Private

 

 

Total

 

Net interest income

 

$

68,222

 

 

$

1,195

 

 

$

69,417

 

Noninterest income

 

 

9,012

 

 

 

31,244

 

 

 

40,256

 

Total income

 

 

77,234

 

 

 

32,439

 

 

 

109,673

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

4,538

 

 

 

—

 

 

 

4,538

 

Compensation and employee benefits

 

 

43,597

 

 

 

14,763

 

 

 

58,360

 

Premises and equipment expense

 

 

9,420

 

 

 

1,437

 

 

 

10,857

 

FDIC insurance expense

 

 

1,815

 

 

 

—

 

 

 

1,815

 

Other operating expense

 

 

8,218

 

 

 

3,917

 

 

 

12,135

 

Total operating expense

 

 

67,588

 

 

 

20,117

 

 

 

87,705

 

Income before income tax expense

 

 

9,646

 

 

 

12,322

 

 

 

21,968

 

Income tax expense

 

 

2,554

 

 

 

3,253

 

 

 

5,807

 

Net income

 

$

7,092

 

 

$

9,069

 

 

$

16,161

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

6,382,263

 

 

$

123,087

 

 

$

6,505,350

 

 

 

 

Six Months Ended June 30, 2023

 

 

 

 

 

 

Peapack

 

 

 

 

(In thousands)

 

Banking

 

 

Private

 

 

Total

 

Net interest income

 

$

80,193

 

 

$

2,706

 

 

$

82,899

 

Noninterest income

 

 

7,907

 

 

 

28,727

 

 

 

36,634

 

Total income

 

 

88,100

 

 

 

31,433

 

 

 

119,533

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

3,209

 

 

 

—

 

 

 

3,209

 

Compensation and employee benefits

 

 

36,118

 

 

 

14,822

 

 

 

50,940

 

Premises and equipment expense

 

 

7,636

 

 

 

1,467

 

 

 

9,103

 

FDIC insurance expense

 

 

1,440

 

 

 

—

 

 

 

1,440

 

Other operating expense

 

 

7,129

 

 

 

4,654

 

 

 

11,783

 

Total operating expense

 

 

55,532

 

 

 

20,943

 

 

 

76,475

 

Income before income tax expense

 

 

32,568

 

 

 

10,490

 

 

 

43,058

 

Income tax expense

 

 

8,746

 

 

 

2,812

 

 

 

11,558

 

Net income

 

$

23,822

 

 

$

7,678

 

 

$

31,500

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

6,363,409

 

 

$

116,291

 

 

$

6,479,700