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BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

7. BUSINESS SEGMENTS

The Company has two reportable segments as 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 expense 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, which includes 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, which includes monitoring wealth management fee income and AUM. Loans and investments 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 contribute to the significant expenses in the banking segment, while payroll, occupancy, and trust expenses are the significant expenses in the Wealth Management Division. All operations of the Company 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 months ended March 31, 2026 and 2025.

 

 

 

 

Three Months Ended March 31, 2026

 

 

 

 

 

 

Wealth

 

 

 

 

(In thousands)

 

Banking

 

 

Management

 

 

Total

 

Net interest income

 

$

59,337

 

 

$

559

 

 

$

59,896

 

Noninterest income

 

 

6,032

 

 

 

16,565

 

 

 

22,597

 

Total income

 

 

65,369

 

 

 

17,124

 

 

 

82,493

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

7,327

 

 

 

—

 

 

 

7,327

 

Compensation and employee benefits

 

 

32,739

 

 

 

6,626

 

 

 

39,365

 

Premises and equipment expense

 

 

5,015

 

 

 

673

 

 

 

5,688

 

Depreciation expense

 

 

1,058

 

 

 

112

 

 

 

1,170

 

FDIC insurance expense

 

 

1,388

 

 

 

—

 

 

 

1,388

 

Professional and legal fees

 

 

1,537

 

 

 

17

 

 

 

1,554

 

Trust department expense

 

 

—

 

 

 

1,180

 

 

 

1,180

 

Other operating expense

 

 

4,225

 

 

 

870

 

 

 

5,095

 

Total operating expense

 

 

53,289

 

 

 

9,478

 

 

 

62,767

 

Income before income tax expense

 

 

12,080

 

 

 

7,646

 

 

 

19,726

 

Income tax expense

 

 

3,485

 

 

 

2,088

 

 

 

5,573

 

Net income

 

$

8,595

 

 

$

5,558

 

 

$

14,153

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

7,473,043

 

 

$

225,922

 

 

$

7,698,965

 

 

 

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

Wealth

 

 

 

 

(In thousands)

 

Banking

 

 

Management

 

 

Total

 

Net interest income

 

$

44,911

 

 

$

594

 

 

$

45,505

 

Noninterest income

 

 

3,270

 

 

 

15,584

 

 

 

18,854

 

Total income

 

 

48,181

 

 

 

16,178

 

 

 

64,359

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

4,471

 

 

 

—

 

 

 

4,471

 

Compensation and employee benefits

 

 

29,175

 

 

 

6,704

 

 

 

35,879

 

Premises and equipment expense

 

 

4,605

 

 

 

663

 

 

 

5,268

 

Depreciation expense

 

 

765

 

 

 

121

 

 

 

886

 

FDIC insurance expense

 

 

855

 

 

 

—

 

 

 

855

 

Professional and legal fees

 

 

1,190

 

 

 

—

 

 

 

1,190

 

Trust department expense

 

 

—

 

 

 

1,043

 

 

 

1,043

 

Other operating expense

 

 

3,212

 

 

 

1,107

 

 

 

4,319

 

Total operating expense

 

 

44,273

 

 

 

9,638

 

 

 

53,911

 

Income before income tax expense

 

 

3,908

 

 

 

6,540

 

 

 

10,448

 

Income tax expense

 

 

1,067

 

 

 

1,786

 

 

 

2,853

 

Net income

 

$

2,841

 

 

$

4,754

 

 

$

7,595

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

6,980,396

 

 

$

140,256

 

 

$

7,120,652