BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

BUSINESS SEGMENTS

19. 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 years ended December 31, 2023, 2022 and 2021:

	Year Ended December 31, 2023
			Wealth
(In thousands)	Banking		Management		Total
Net interest income	$	151,974	$	4,115	$	156,089
Noninterest income		16,653		56,925		73,578
Total income		168,627		61,040		229,667
Provision for credit losses		14,091		—		14,091
Compensation and benefits		71,099		29,425		100,524
Premises and equipment expense		16,674		3,059		19,733
FDIC expense		2,946		—		2,946
Other noninterest expense		16,275		8,817		25,092
Total noninterest expense		121,085		41,301		162,386
Income before income tax expense		47,542		19,739		67,281
Income tax expense		13,018		5,409		18,427
Net income	$	34,524	$	14,330	$	48,854
Total assets at period end	$	6,357,980	$	118,877	$	6,476,857

	Year Ended December 31, 2022
			Wealth
(In thousands)	Banking		Management		Total
Net interest income	$	167,893	$	8,187	$	176,080
Noninterest income		9,919		56,498		66,417
Total income		177,812		64,685		242,497
Provision for loan losses		6,353		—		6,353
Compensation and benefits		61,975		27,501		89,476
Premises and equipment expense		15,774		2,945		18,719
FDIC expense		1,939		—		1,939
Other noninterest expense		13,590		10,076		23,666
Total noninterest expense		99,631		40,522		140,153
Income before income tax expense		78,181		24,163		102,344
Income tax expense		21,453		6,645		28,098
Net income	$	56,728	$	17,518	$	74,246
Total assets at period end	$	6,256,664	$	96,929	$	6,353,593

	Year Ended December 31, 2021
			Wealth
(In thousands)	Banking		Management		Total
Net interest income	$	132,195	$	5,866	$	138,061
Noninterest income		17,342		54,901		72,243
Total income		149,537		60,767		210,304
Provision for loan losses		6,475		—		6,475
Compensation and benefits		56,970		24,894		81,864
Premises and equipment expense		14,805		2,360		17,165
FDIC expense		2,071		—		2,071
Other noninterest expense		14,407		10,660		25,067
Total noninterest expense		94,728		37,914		132,642
Income before income tax expense		54,809		22,853		77,662
Income tax expense		14,847		6,193		21,040
Net income	$	39,962	$	16,660	$	56,622
Total assets at period end	$	5,973,343	$	104,650	$	6,077,993