BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2014

Business Segments

BUSINESS SEGMENTS

5. BUSINESS SEGMENTS

The Corporation assesses its results among two operating segments, Banking and Private Wealth Management Division. 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 lending and depository products and services, as well as various electronic banking services.

Private Wealth Management Division

Peapack-Gladstone Bank’s Private Wealth Management Division includes asset management services provided for individuals and institutions; personal trust services, including services as executor, trustee, administrator, custodian and guardian; corporate trust services including services as trustee for pension and profit sharing plans; and other financial planning and advisory services.

The following table presents the statements of income and total assets for the Corporation’s reportable segments for the three months ended March 31, 2014 and 2013.

	Three Months Ended March 31, 2014
(In thousands)	Banking		Wealth Management Division		Total
Net interest income	$	14,588	$	983	$	15,571
Noninterest income		1,190		3,805		4,995
Total income		15,778		4,788		20,566
Provision for loan losses		1,325		—		1,325
Salaries and benefits		7,015		1,833		8,848
Premises and equipment expense		2,269		169		2,438
Other noninterest expense		1,853		1,200		3,053
Total noninterest expense		12,462		3,202		15,664
Income before income tax expense		3,316		1,586		4,902
Income tax expense		1,266		605		1,871
Net income	$	2,050	$	981	$	3,031
Total assets for period end	$	2,240,297	$	11,188	$	2,251,485

	Three Months Ended March 31, 2013
(In thousands)	Banking		Wealth Management Division		Total
Net interest income	$	11,392	$	1,035	$	12,427
Noninterest income		2,088		3,516		5,604
Total income		13,480		4,551		18,031
Provision for loan losses		850		—		850
Salaries and benefits		5,790		1,289		7,079
Premises and equipment expense		2,157		147		2,304
Other noninterest expense		1,672		1,238		2,910
Total noninterest expense		10,469		2,674		13,143
Income before income tax expense		3,011		1,877		4,888
Income tax expense		1,229		766		1,995
Net income	$	1,782	$	1,111	$	2,893
Total assets for period end	$	1,633,949	$	1,383	$	1,635,332