BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2015

BUSINESS SEGMENTS [Abstract]

BUSINESS SEGMENTS

17. BUSINESS SEGMENTS

The Company 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 commercial, commercial real estate, multifamily, residential and consumer lending activities; deposit generation; operation of ATMs; telephone and internet banking services; merchant credit card services and customer support and sales.

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 Company's reportable segments for the twelve months ended December 31, 2015, 2014 and 2013:

	Twelve Months Ended December 31, 2015
			Wealth
(In thousands)	Banking		Management		Total
Net interest income	$	80,190	$	4,262	$	84,452
Noninterest income		6,434		17,280		23,714
Total income		86,624		21,542		108,166
Provision for loan losses		7,100		—		7,100
Salaries and benefits		32,133		8,145		40,278
Premises and equipment expense		10,634		935		11,569
Other noninterest expense		12,203		4,876		17,079
Total noninterest expense		62,070		13,956		76,026
Income before income tax expense		24,554		7,586		32,140
Income tax expense		9,217		2,951		12,168
Net income	$	15,337	$	4,635	$	19,972
Total assets at period end	$	3,328,937	$	38,440	$	3,364,659

	Twelve Months Ended December 31, 2014
			Wealth
(In thousands)	Banking		Management		Total
Net interest income	$	64,148	$	3,746	$	67,894
Noninterest income		5,336		15,471		20,807
Total income		69,484		19,217		88,701
Provision for loan losses		4,875		—		4,875
Salaries and benefits		28,679		7,562		36,241
Premises and equipment expense		9,207		756		9,963
Other noninterest expense		8,922		4,414		13,336
Total noninterest expense		51,683		12,732		64,415
Income before income tax expense		17,801		6,485		24,286
Income tax expense		6,873		2,523		9,396
Net income	$	10,928	$	3,962	$	14,890
Total assets at period end	$	2,676,103	$	26,294	$	2,702,397

	Twelve Months Ended December 31, 2013
			Wealth
(In thousands)	Banking		Management		Total
Net interest income	$	49,209	$	3,567	$	52,776
Noninterest income		6,417		14,178		20,595
Total income		55,626		17,745		73,371
Provision for loan losses		3,425		—		3,425
Salaries and benefits		26,504		5,745		32,249
Premises and equipment expense		9,331		583		9,914
Other noninterest expense		8,564		4,456		13,020
Total noninterest expense		47,824		10,784		58,608
Income before income tax expense		7,802		6,961		14,763
Income tax expense		2,908		2,594		5,502
Net income	$	4,894	$	4,367	$	9,261
Total assets at period end	$	1,964,514	$	2,434	$	1,966,948