BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

BUSINESS SEGMENTS

6.  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 three and six months ended June 30, 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 section of Management’s Discussion and Analysis.

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 PGB Trust & Investments of Delaware and Murphy Capital, consists of 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 Company’s reportable segments for the three and six months ended June 30, 2021 and 2020.

	Three Months Ended June 30, 2021
			Peapack
(In thousands)	Banking		Private		Total
Net interest income	$	32,399	$	1,446	$	33,845
Noninterest income		4,194		13,484		17,678
Total income		36,593		14,930		51,523
Provision for loan and lease losses		900		—		900
Compensation and benefits		14,369		5,541		19,910
Premises and equipment expense		3,519		555		4,074
FDIC expense		529		—		529
Other operating expense		3,817		2,354		6,171
Total operating expense		23,134		8,450		31,584
Income before income tax expense		13,459		6,480		19,939
Income tax expense		3,721		1,800		5,521
Net income	$	9,738	$	4,680	$	14,418

	Three Months Ended June 30, 2020
			Peapack
(In thousands)	Banking		Private		Total
Net interest income	$	30,453	$	1,518	$	31,971
Noninterest income		2,356		10,270		12,626
Total income		32,809		11,788		44,597
Provision for loan and lease losses		4,900		—		4,900
Compensation and employee benefits		13,774		5,412		19,186
Premises and equipment expense		3,487		549		4,036
FDIC insurance expense		455		—		455
Other operating expense		3,052		2,285		5,337
Total operating expense		25,668		8,246		33,914
Income before income tax expense		7,141		3,542		10,683
Income tax expense		1,257		1,184		2,441
Net income	$	5,884	$	2,358	$	8,242

	Six Months Ended June 30, 2021
			Peapack
(In thousands)	Banking		Private		Total
Net interest income	$	62,625	$	3,013	$	65,638
Noninterest income		9,334		26,164		35,498
Total income		71,959		29,177		101,136
Provision for loan and lease losses		1,125		—		1,125
Compensation and employee benefits		30,797		11,103		41,900
Premises and equipment expense		7,089		1,098		8,187
FDIC insurance expense		1,114		—		1,114
Other operating expense		6,208		4,869		11,077
Total operating expense		46,333		17,070		63,403
Income before income tax expense		25,626		12,107		37,733
Income tax expense		6,880		3,257		10,137
Net income	$	18,746	$	8,850	$	27,596
Total assets at period end	$	5,700,105	$	91,583	$	5,791,688

	Six Months Ended June 30, 2020
				Peapack
(In thousands)	Banking			Private		Total
Net interest income	$	60,862		$	2,856	$	63,718
Noninterest income		6,585			20,558		27,143
Total income		67,447			23,414		90,861
Provision for loan and lease losses		24,900			—		24,900
Compensation and employee benefits		26,981			11,431		38,412
Premises and equipment expense		6,908			1,171		8,079
FDIC insurance expense		705			—		705
Other operating expense		5,658			4,395		10,053
Total operating expense		65,152			16,997		82,149
Income before income tax (benefit)/expense		2,295			6,417		8,712
Income tax (benefit)/expense		(2,636	)		1,733		(903	)
Net income	$	4,931		$	4,684	$	9,615
Total assets at period end	$	6,203,441		$	77,774	$	6,281,215