v3.25.1
BUSINESS SEGMENTS
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

7. BUSINESS SEGMENTS

The Company's reportable segments are determined by the Chief Financial Officer, who is the designated CODM, based upon information provided about the Company's products and services offered, primarily distinguished between banking and wealth management services provided by the Bank's wealth management division. They are also distinguished by the level of information provided to the CODM, who uses such information to review performance of various components of the business. The CODM evaluates the financial performance of the Company's business segments such as by evaluating revenue streams, significant expenses, and budget to actual results in assessing the performance of the Company's segments and in the determination of allocating resources. The CODM uses revenue streams to evaluate product pricing and significant expense to assess performance of each segment to evaluate compensation of certain employees. Segment pretax profit or loss is used to assess the performance of the

banking segment by monitoring the margin between interest revenue and interest expense. Segment pretax profit or loss is used to assess the performance of the Wealth Management Division by monitoring wealth management fee income and AUM. Loans, investments, and deposits primarily provide the revenues in the banking operation and wealth management fee income provide the revenues for the Wealth Management Division. Interest expense, provision for credit losses, payroll and premises and equipment provide the significant expenses in the banking segment, while payroll, occupancy, and trust expenses are the significant expenses in the Wealth Management Division. All operations are domestic.

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.

Wealth Management

The Wealth Management Division, which includes the operations of PGB Trust & Investments of Delaware, 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 months ended March 31, 2025 and 2024.

 

 

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

Wealth

 

 

 

 

(In thousands)

 

Banking

 

 

Management

 

 

Total

 

Net interest income

 

$

44,911

 

 

$

594

 

 

$

45,505

 

Noninterest income

 

 

3,270

 

 

 

15,584

 

 

 

18,854

 

Total income

 

 

48,181

 

 

 

16,178

 

 

 

64,359

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

4,471

 

 

 

—

 

 

 

4,471

 

Compensation and employee benefits

 

 

29,175

 

 

 

6,704

 

 

 

35,879

 

Premises and equipment expense

 

 

4,605

 

 

 

663

 

 

 

5,268

 

Depreciation expense

 

 

765

 

 

 

121

 

 

 

886

 

FDIC insurance expense

 

 

855

 

 

 

—

 

 

 

855

 

Other operating expense

 

 

4,402

 

 

 

2,150

 

 

 

6,552

 

Total operating expense

 

 

44,273

 

 

 

9,638

 

 

 

53,911

 

Income before income tax expense

 

 

3,908

 

 

 

6,540

 

 

 

10,448

 

Income tax expense

 

 

1,067

 

 

 

1,786

 

 

 

2,853

 

Net income

 

$

2,841

 

 

$

4,754

 

 

$

7,595

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

6,980,396

 

 

$

140,256

 

 

$

7,120,652

 

 

 

 

Three Months Ended March 31, 2024

 

 

 

 

 

 

Wealth

 

 

 

 

(In thousands)

 

Banking

 

 

Management

 

 

Total

 

Net interest income

 

$

33,760

 

 

$

615

 

 

$

34,375

 

Noninterest income

 

 

4,087

 

 

 

14,614

 

 

 

18,701

 

Total income

 

 

37,847

 

 

 

15,229

 

 

 

53,076

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

627

 

 

 

—

 

 

 

627

 

Compensation and employee benefits

 

 

21,723

 

 

 

6,753

 

 

 

28,476

 

Premises and equipment expense

 

 

3,556

 

 

 

559

 

 

 

4,115

 

Depreciation expense

 

 

822

 

 

 

144

 

 

 

966

 

FDIC insurance expense

 

 

945

 

 

 

—

 

 

 

945

 

Other operating expense

 

 

3,588

 

 

 

1,951

 

 

 

5,539

 

Total operating expense

 

 

31,261

 

 

 

9,407

 

 

 

40,668

 

Income before income tax expense

 

 

6,586

 

 

 

5,822

 

 

 

12,408

 

Income tax expense

 

 

2,007

 

 

 

1,770

 

 

 

3,777

 

Net income

 

$

4,579

 

 

$

4,052

 

 

$

8,631

 

 

 

 

 

 

 

 

 

 

 

Total assets at period end

 

$

6,287,018

 

 

$

121,535

 

 

$

6,408,553