BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2015

BUSINESS SEGMENTS [Abstract]

BUSINESS SEGMENTS

6. BUSINESS SEGMENTS

The Corporation assesses its results among two operating segments, Banking and Peapack-Gladstone Bank's 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 tables present the statements of income and total assets for the Corporation's reportable segments for the three and six months ended June 30, 2015 and 2014.

	Three Months Ended June 30, 2015
			Wealth
			Management
(In thousands)	Banking		Division		Total
Net interest income	$	19,351	$	993	$	20,344
Noninterest income		1,896		4,603		6,499
Total income		21,247		5,596		26,843
Provision for loan losses		2,200		—		2,200
Salaries and benefits		7,830		2,042		9,872
Premises and equipment expense		2,549		229		2,778
Other noninterest expense		2,461		1,155		3,616
Total noninterest expense		15,040		3,426		18,466
Income before income tax expense		6,207		2,170		8,377
Income tax expense		2,294		845		3,139
Net income	$	3,913	$	1,325	$	5,238

	Three Months Ended June 30, 2014
			Wealth
			Management
(In thousands)	Banking		Division		Total
Net interest income	$	15,938	$	985	$	16,923
Noninterest income		1,408		4,065		5,473
Total income		17,346		5,050		22,396
Provision for loan losses		1,150		—		1,150
Salaries and benefits		7,801		1,288		9,089
Premises and equipment expense		2,166		168		2,334
Other noninterest expense		2,383		1,124		3,507
Total noninterest expense		13,500		2,580		16,080
Income before income tax expense		3,846		2,470		6,316
Income tax expense		1,590		943		2,533
Net income	$	2,256	$	1,527	$	3,783

	Six Months Ended June 30, 2015
			Wealth
			Management
(In thousands)	Banking		Division		Total
Net interest income	$	37,921	$	2,006	$	39,927
Noninterest income		3,673		8,708		12,381
Total income		41,594		10,714		52,308
Provision for loan losses		3,550		—		3,550
Salaries and benefits		15,370		3,927		19,297
Premises and equipment expense		4,934		460		5,394
Other noninterest expense		4,956		2,387		7,343
Total noninterest expense		28,810		6,774		35,584
Income before income tax expense		12,784		3,940		16,724
Income tax expense		4,945		1,533		6,478
Net income	$	7,839	$	2,407	$	10,246
Total assets for period end	$	3,084,507	$	33,663	$	3,118,170

	Six Months Ended June 30, 2014
			Wealth
			Management
(In thousands)	Banking		Division		Total
Net interest income	$	30,526	$	1,968	$	32,494
Noninterest income		2,598		7,870		10,468
Total income		33,124		9,838		42,962
Provision for loan losses		2,475		—		2,475
Salaries and benefits		14,816		3,121		17,937
Premises and equipment expense		4,435		337		4,772
Other noninterest expense		4,236		2,324		6,560
Total noninterest expense		25,962		5,782		31,744
Income before income tax expense		7,162		4,056		11,218
Income tax expense		2,856		1,548		4,404
Net income	$	4,306	$	2,508	$	6,814
Total assets for period end	$	2,387,925	$	13,046	$	2,400,971