BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

BUSINESS SEGMENTS

18.  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 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.

Private Wealth Management Division

Peapack-Gladstone Bank’s Private Wealth Management Division, including PGB Trust & Investments of Delaware, MCM, and Quadrant and Lassus Wherley, includes 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 table presents the statements of income and total assets for the Company’s reportable segments for the twelve months ended December 31, 2018, 2017 and 2016:

	Twelve Months Ended December 31, 2018
			Wealth
(In thousands)	Banking		Management		Total
Net interest income	$	110,001	$	5,162	$	115,163
Noninterest income		10,013		34,180		44,193
Total income		120,014		39,342		159,356
Provision for loan losses		3,550		—		3,550
Compensation and benefits		44,875		17,927		62,802
Premises and equipment expense		11,747		1,750		13,497
FDIC expense		2,443		—		2,443
Other noninterest expense		10,267		9,077		19,344
Total noninterest expense		72,882		28,754		101,636
Income before income tax expense		47,132		10,588		57,720
Income tax expense		11,065		2,485		13,550
Net income	$	36,067	$	8,103	$	44,170
Total assets at period end	$	4,547,179	$	70,679	$	4,617,858

	Twelve Months Ended December 31, 2017
			Wealth
(In thousands)	Banking		Management		Total
Net interest income	$	105,353	$	5,788	$	111,141
Noninterest income		10,943		23,684		34,627
Total income		116,296		29,472		145,768
Provision for loan losses		5,850		—		5,850
Compensation and benefits		42,917		11,039		53,956
Premises and equipment expense		10,682		1,306		11,988
FDIC expense		2,366		—		2,366
Other noninterest expense		9,466		7,835		17,301
Total noninterest expense		71,281		20,180		91,461
Income before income tax expense		45,015		9,292		54,307
Income tax expense		14,763		3,047		17,810
Net income	$	30,252	$	6,245	$	36,497
Total assets at period end	$	4,202,957	$	57,590	$	4,260,547

	Twelve Months Ended December 31, 2016
			Wealth
(In thousands)	Banking		Management		Total
Net interest income	$	91,334	$	5,101	$	96,435
Noninterest income		10,217		18,701		28,918
Total income		101,551		23,802		125,353
Provision for loan losses		7,500		—		7,500
Compensation and benefits		36,028		8,975		45,003
Premises and equipment expense		10,213		1,032		11,245
FDIC expense		4,758		—		4,758
Other noninterest expense		8,565		5,541		14,106
Total noninterest expense		67,064		15,548		82,612
Income before income tax expense		34,487		8,254		42,741
Income tax expense		13,123		3,141		16,264
Net income	$	21,364	$	5,113	$	26,477
Total assets at period end	$	3,832,765	$	45,868	$	3,878,633