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BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

7. BUSINESS SEGMENTS

The Company's reportable segments are determined by the Chief Financial Officer, who is the designated CODM, based upon information provided about the Company's products and services offered, primarily distinguished between banking and wealth management services provided by the Bank's wealth management division. They are also distinguished by the level of information provided to the CODM, who uses such information to review performance of various components of the business. The CODM evaluates the financial performance of the Company's business segments such as by evaluating revenue streams, significant expenses, and budget to actual results in assessing the performance of the Company's segments and in the determination of allocating resources. The CODM uses revenue streams to evaluate product pricing and significant expenses to assess performance of each segment to evaluate compensation of certain employees. Segment pretax profit or loss is used to assess the performance of the banking segment by monitoring the spread between interest income and interest expense. Segment pretax profit or loss is used to assess the performance of the Wealth Management Division by monitoring wealth management fee income and AUM. Loans, investments, and deposits primarily provide the revenues in the banking operation and wealth management fee income provide the revenues for the Wealth Management Division. Interest expense, provision for credit losses, payroll and premises and equipment provide the significant expenses in the banking segment, while payroll, occupancy, and trust expenses are the significant expenses in the Wealth Management Division. All operations are domestic.

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, 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.

Wealth Management

The Wealth Management Division, 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, 2025 and 2024.

 

 

 

Three Months Ended June 30, 2025

 

 

 

 

 

 

Wealth

 

 

 

 

(In thousands)

 

Banking

 

 

Management

 

 

Total

 

Net interest income

 

$

47,713

 

 

$

577

 

 

$

48,290

 

Noninterest income

 

 

5,347

 

 

 

16,104

 

 

 

21,451

 

Total income

 

 

53,060

 

 

 

16,681

 

 

 

69,741

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

6,586

 

 

 

—

 

 

 

6,586

 

Compensation and benefits

 

 

28,540

 

 

 

7,521

 

 

 

36,061

 

Premises and equipment expense

 

 

4,890

 

 

 

716

 

 

 

5,606

 

Depreciation expense

 

 

912

 

 

 

123

 

 

 

1,035

 

FDIC expense

 

 

1,045

 

 

 

—

 

 

 

1,045

 

Other operating expense

 

 

5,984

 

 

 

2,162

 

 

 

8,146

 

Total operating expense

 

 

47,957

 

 

 

10,522

 

 

 

58,479

 

Income before income tax expense

 

 

5,103

 

 

 

6,159

 

 

 

11,262

 

Income tax expense

 

 

1,496

 

 

 

1,825

 

 

 

3,321

 

Net income

 

$

3,607

 

 

$

4,334

 

 

$

7,941

 

 

 

 

 

 

 

Three Months Ended June 30, 2024

 

 

 

 

 

 

Wealth

 

 

 

 

(In thousands)

 

Banking

 

 

Management

 

 

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 employee benefits

 

 

21,874

 

 

 

8,010

 

 

 

29,884

 

Premises and equipment expense

 

 

4,289

 

 

 

598

 

 

 

4,887

 

Depreciation expense

 

 

753

 

 

 

136

 

 

 

889

 

FDIC insurance 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

 

 

 

 

 

 

Six Months Ended June 30, 2025

 

 

 

 

 

 

Wealth

 

 

 

 

(In thousands)

 

Banking

 

 

Management

 

 

Total

 

Net interest income

 

$

92,624

 

 

$

1,171

 

 

$

93,795

 

Noninterest income

 

 

8,617

 

 

 

31,688

 

 

 

40,305

 

Total income

 

 

101,241

 

 

 

32,859

 

 

 

134,100

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

11,057

 

 

 

—

 

 

 

11,057

 

Compensation and employee benefits

 

 

57,715

 

 

 

14,225

 

 

 

71,940

 

Premises and equipment expense

 

 

9,495

 

 

 

1,379

 

 

 

10,874

 

Depreciation expense

 

 

1,677

 

 

 

244

 

 

 

1,921

 

FDIC insurance expense

 

 

1,900

 

 

 

—

 

 

 

1,900

 

Other operating expense

 

 

10,386

 

 

 

4,312

 

 

 

14,698

 

Total operating expense

 

 

92,230

 

 

 

20,160

 

 

 

112,390

 

Income before income tax expense

 

 

9,011

 

 

 

12,699

 

 

 

21,710

 

Income tax expense

 

 

2,563

 

 

 

3,611

 

 

 

6,174

 

Net income

 

$

6,448

 

 

$

9,088

 

 

$

15,536

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

7,056,456

 

 

$

144,217

 

 

$

7,200,673

 

 

 

 

Six Months Ended June 30, 2024

 

 

 

 

 

 

Wealth

 

 

 

 

(In thousands)

 

Banking

 

 

Management

 

 

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

 

 

7,845

 

 

 

1,157

 

 

 

9,002

 

Depreciation expense

 

 

1,575

 

 

 

280

 

 

 

1,855

 

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