BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

BUSINESS SEGMENTS

19.  BUSINESS SEGMENTS

The Company assesses its results among two operating segments, Banking and Peapack Private. 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.  The Banking segment’s effective tax rate for the year ended December 31, 2020 was affected by a $3.3 million income tax benefit recorded during the first quarter of 2020.  For additional information related to this income tax benefit refer to the Income Taxes footnote.

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.

Peapack Private

Peapack Private, which includes the operations of PGB Trust & Investments of Delaware, MCM, Lassus Wherley, and Point View, 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 years ended December 31, 2020, 2019 and 2018:

	Year Ended December 31, 2020
			Wealth
(In thousands)	Banking		Management		Total
Net interest income	$	121,583	$	6,019	$	127,602
Noninterest income		19,104		42,656		61,760
Total income		140,687		48,675		189,362
Provision for loan losses		32,400		—		32,400
Compensation and benefits		54,044		23,472		77,516
Premises and equipment expense		14,056		2,321		16,377
FDIC expense		1,975		—		1,975
Other noninterest expense		19,694		9,397		29,091
Total noninterest expense		122,169		35,190		157,359
Income before income tax expense		18,518		13,485		32,003
Income tax expense		2,170		3,641		5,811
Net income	$	16,348	$	9,844	$	26,192
Total assets at period end	$	5,798,770	$	91,672	$	5,890,442

	Year Ended December 31, 2019
			Wealth
(In thousands)	Banking		Management		Total
Net interest income	$	114,983	$	5,291	$	120,274
Noninterest income		14,999		39,697		54,696
Total income		129,982		44,988		174,970
Provision for loan losses		4,000		—		4,000
Compensation and benefits		48,925		21,204		70,129
Premises and equipment expense		12,533		2,202		14,735
FDIC expense		277		—		277
Other noninterest expense		10,932		8,775		19,707
Total noninterest expense		76,667		32,181		108,848
Income before income tax expense		53,315		12,807		66,122
Income tax expense		15,069		3,619		18,688
Net income	$	38,246	$	9,188	$	47,434
Total assets at period end	$	5,095,744	$	87,135	$	5,182,879

	Year 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		11,313		8,031		19,344
Total noninterest expense		73,928		27,708		101,636
Income before income tax expense		46,086		11,634		57,720
Income tax expense		10,819		2,731		13,550
Net income	$	35,267	$	8,903	$	44,170
Total assets at period end	$	4,547,179	$	70,679	$	4,617,858