BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2019

Segment Reporting [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 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, 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 tables present the statements of income and total assets for the Corporation’s reportable segments for the three months ended March 31, 2019 and 2018.

	Three Months Ended March 31, 2019
			Wealth
			Management
(In thousands)	Banking		Division		Total
Net interest income	$	28,566	$	1,441	$	30,007
Noninterest income		2,279		9,450		11,729
Total income		30,845		10,891		41,736
Provision for loan and lease losses		100		—		100
Compensation and benefits		11,997		5,159		17,156
Premises and equipment expense		2,925		463		3,388
FDIC expense		277		—		277
Other noninterest expense		2,758		2,136		4,894
Total noninterest expense		18,057		7,758		25,815
Income before income tax expense		12,788		3,133		15,921
Income tax expense		3,611		885		4,496
Net income	$	9,177	$	2,248	$	11,425
Total assets at period end	$	4,582,200	$	80,106	$	4,662,306

	Three Months Ended March 31, 2018
			Wealth
			Management
(In thousands)	Banking		Division		Total
Net interest income	$	26,848	$	1,545	$	28,393
Noninterest income		1,627		8,588		10,215
Total income		28,475		10,133		38,608
Provision for loan and lease losses		1,250		—		1,250
Compensation and benefits		10,331		4,248		14,579
Premises and equipment expense		2,839		431		3,270
FDIC Expense		580		—		580
Other noninterest expense		2,807		2,101		4,908
Total noninterest expense		17,807		6,780		24,587
Income before income tax expense		10,668		3,353		14,021
Income tax expense		2,445		769		3,214
Net income	$	8,223	$	2,584	$	10,807
Total assets at period end	$	4,278,010	$	58,484	$	4,336,494