XML 26 R16.htm IDEA: XBRL DOCUMENT v3.24.3
BUSINESS SEGMENTS
 9 Months Ended
Sep. 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 nine months ended September 30, 2024 and 2023.

 

 

 

Three Months Ended September 30, 2024

 

 

 

 

 

 

Peapack

 

 

 

 

(In thousands)

 

Banking

 

 

Private

 

 

Total

 

Net interest income

 

$

37,077

 

 

$

604

 

 

$

37,681

 

Noninterest income

 

 

3,604

 

 

 

15,334

 

 

 

18,938

 

Total income

 

 

40,681

 

 

 

15,938

 

 

 

56,619

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

1,224

 

 

 

—

 

 

 

1,224

 

Compensation and benefits

 

 

23,988

 

 

 

7,062

 

 

 

31,050

 

Premises and equipment expense

 

 

4,794

 

 

 

839

 

 

 

5,633

 

FDIC expense

 

 

870

 

 

 

—

 

 

 

870

 

Other operating expense

 

 

5,013

 

 

 

2,083

 

 

 

7,096

 

Total operating expense

 

 

35,889

 

 

 

9,984

 

 

 

45,873

 

Income before income tax expense

 

 

4,792

 

 

 

5,954

 

 

 

10,746

 

Income tax expense

 

 

1,404

 

 

 

1,755

 

 

 

3,159

 

Net income

 

$

3,388

 

 

$

4,199

 

 

$

7,587

 

 

 

 

Three Months Ended September 30, 2023

 

 

 

 

 

 

Peapack

 

 

 

 

(In thousands)

 

Banking

 

 

Private

 

 

Total

 

Net interest income

 

$

35,811

 

 

$

704

 

 

$

36,515

 

Noninterest income

 

 

5,120

 

 

 

14,234

 

 

 

19,354

 

Total income

 

 

40,931

 

 

 

14,938

 

 

 

55,869

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

5,856

 

 

 

—

 

 

 

5,856

 

Compensation and employee benefits

 

 

18,440

 

 

 

6,824

 

 

 

25,264

 

Premises and equipment expense

 

 

4,436

 

 

 

778

 

 

 

5,214

 

FDIC insurance expense

 

 

741

 

 

 

—

 

 

 

741

 

Other operating expense

 

 

4,188

 

 

 

2,006

 

 

 

6,194

 

Total operating expense

 

 

33,661

 

 

 

9,608

 

 

 

43,269

 

Income before income tax expense

 

 

7,270

 

 

 

5,330

 

 

 

12,600

 

Income tax expense

 

 

2,275

 

 

 

1,570

 

 

 

3,845

 

Net income

 

$

4,995

 

 

$

3,760

 

 

$

8,755

 

 

 

 

Nine Months Ended September 30, 2024

 

 

 

 

 

 

Peapack

 

 

 

 

(In thousands)

 

Banking

 

 

Private

 

 

Total

 

Net interest income

 

$

105,299

 

 

$

1,799

 

 

$

107,098

 

Noninterest income

 

 

12,616

 

 

 

46,578

 

 

 

59,194

 

Total income

 

 

117,915

 

 

 

48,377

 

 

 

166,292

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

5,762

 

 

 

—

 

 

 

5,762

 

Compensation and employee benefits

 

 

67,585

 

 

 

21,825

 

 

 

89,410

 

Premises and equipment expense

 

 

14,214

 

 

 

2,276

 

 

 

16,490

 

FDIC insurance expense

 

 

2,685

 

 

 

—

 

 

 

2,685

 

Other operating expense

 

 

13,231

 

 

 

6,000

 

 

 

19,231

 

Total operating expense

 

 

103,477

 

 

 

30,101

 

 

 

133,578

 

Income before income tax expense

 

 

14,438

 

 

 

18,276

 

 

 

32,714

 

Income tax expense

 

 

3,958

 

 

 

5,008

 

 

 

8,966

 

Net income

 

$

10,480

 

 

$

13,268

 

 

$

23,748

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

6,663,410

 

 

$

130,382

 

 

$

6,793,792

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

 

 

 

Peapack

 

 

 

 

(In thousands)

 

Banking

 

 

Private

 

 

Total

 

Net interest income

 

$

116,004

 

 

$

3,410

 

 

$

119,414

 

Noninterest income

 

 

13,027

 

 

 

42,961

 

 

 

55,988

 

Total income

 

 

129,031

 

 

 

46,371

 

 

 

175,402

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

9,065

 

 

 

—

 

 

 

9,065

 

Compensation and employee benefits

 

 

54,558

 

 

 

21,646

 

 

 

76,204

 

Premises and equipment expense

 

 

12,072

 

 

 

2,245

 

 

 

14,317

 

FDIC insurance expense

 

 

2,181

 

 

 

—

 

 

 

2,181

 

Other operating expense

 

 

11,317

 

 

 

6,660

 

 

 

17,977

 

Total operating expense

 

 

89,193

 

 

 

30,551

 

 

 

119,744

 

Income before income tax expense

 

 

39,838

 

 

 

15,820

 

 

 

55,658

 

Income tax expense

 

 

11,021

 

 

 

4,382

 

 

 

15,403

 

Net income

 

$

28,817

 

 

$

11,438

 

 

$

40,255

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

6,405,796

 

 

$

115,785

 

 

$

6,521,581