BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2023

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, 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, 2023 and 2022.

	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 benefits		17,949		8,405		26,354
Premises and equipment expense		4,023		706		4,729
FDIC 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

	Three Months Ended June 30, 2022
			Peapack
(In thousands)	Banking		Private		Total
Net interest income	$	41,078	$	1,815	$	42,893
Noninterest income		4,119		14,389		18,508
Total income		45,197		16,204		61,401
Provision for loan and lease losses		1,449		—		1,449
Compensation and employee benefits		15,476		6,406		21,882
Premises and equipment expense		3,835		805		4,640
FDIC insurance expense		503		—		503
Other operating expense		3,212		2,422		5,634
Total operating expense		24,475		9,633		34,108
Income before income tax expense		20,722		6,571		27,293
Income tax expense		5,624		1,569		7,193
Net income	$	15,098	$	5,002	$	20,100

	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

	Six Months Ended June 30, 2022
			Peapack
(In thousands)	Banking		Private		Total
Net interest income	$	79,077	$	3,438	$	82,515
Noninterest income		3,690		29,532		33,222
Total income		82,767		32,970		115,737
Provision for loan and lease losses		3,824		—		3,824
Compensation and employee benefits		31,879		12,452		44,331
Premises and equipment expense		7,766		1,521		9,287
FDIC insurance expense		974		—		974
Other operating expense		7,378		4,858		12,236
Total operating expense		51,821		18,831		70,652
Income before income tax expense		30,946		14,139		45,085
Income tax expense		7,924		3,620		11,544
Net income	$	23,022	$	10,519	$	33,541
Total assets at period end	$	6,046,082	$	105,085	$	6,151,167