BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2016

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 months ended March 31, 2016 and 2015.

	Three Months Ended March 31, 2016
			Wealth
			Management
(In thousands)	Banking		Division		Total
Net interest income	$	21,990	$	1,420	$	23,410
Noninterest income		1,880		4,383		6,263
Total income		23,870		5,803		29,673
Provision for loan losses		1,700		—		1,700
Salaries and benefits		8,813		2,095		10,908
Premises and equipment expense		2,637		227		2,864
Other noninterest expense		3,917		1,517		5,434
Total noninterest expense		17,067		3,839		20,906
Income before income tax expense		6,803		1,964		8,767
Income tax expense		2,514		764		3,278
Net income	$	4,289	$	1,200	$	5,489
Total assets for period end	$	3,415,432	$	53,252	$	3,465,997

	Three Months Ended March 31, 2015
			Wealth
			Management
(In thousands)	Banking		Division		Total
Net interest income	$	18,570	$	1,013	$	19,583
Noninterest income		1,777		4,105		5,882
Total income		20,347		5,118		25,465
Provision for loan losses		1,350		—		1,350
Salaries and benefits		7,540		1,885		9,425
Premises and equipment expense		2,385		231		2,616
Other noninterest expense		2,495		1,232		3,727
Total noninterest expense		13,770		3,348		17,118
Income before income tax expense		6,577		1,770		8,347
Income tax expense		2,651		688		3,339
Net income	$	3,926	$	1,082	$	5,008
Total assets for period end	$	2,853,133	$	26,324	$	2,879,457