STOCK TITAN
  1. Home
  2. News
  3. PGC

Peapack-Gladstone Financial Corporation Reports First Quarter Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
earnings
Rhea-AI Summary
Peapack-Gladstone Financial (PGC) reports its first quarter 2024 financial results, showcasing a decrease in total revenue, net income, and diluted EPS compared to the prior year quarter. The company faced headwinds in margin compression and credit quality. Despite economic challenges, PGC is expanding into New York City, aiming to enhance liquidity, diversify the balance sheet, and improve profitability. Key highlights include growth in Wealth Management division, decline in loans, increase in deposits, reduction in borrowings, and stable liquidity position. PGC's capital position remains strong, with a focus on repurchasing shares and paying dividends.
Peapack-Gladstone Financial (PGC) ha pubblicato i risultati finanziari del primo trimestre del 2024, mostrando una diminuzione del fatturato totale, del reddito netto e dell'EPS diluito rispetto al trimestre dell'anno precedente. L'azienda ha affrontato difficoltà legate alla compressione dei margini e alla qualità del credito. Nonostante le sfide economiche, PGC si sta espandendo a New York City, con l'obiettivo di migliorare la liquidità, diversificare il bilancio e aumentare la redditività. I punti salienti includono la crescita nella divisione Wealth Management, una diminuzione dei prestiti, un aumento dei depositi, una riduzione dei prestiti e una posizione di liquidità stabile. La posizione patrimoniale di PGC rimane forte, con un focus sul riacquisto di azioni e sul pagamento di dividendi.
Peapack-Gladstone Financial (PGC) reporta los resultados financieros del primer trimestre de 2024, mostrando una disminución en los ingresos totales, el ingreso neto y el EPS diluido en comparación con el mismo trimestre del año anterior. La compañía enfrentó dificultades en la compresión de márgenes y la calidad del crédito. A pesar de los desafíos económicos, PGC está expandiéndose en la ciudad de Nueva York, con el objetivo de mejorar la liquidez, diversificar el balance general y aumentar la rentabilidad. Los aspectos destacados incluyen el crecimiento en la división de Gestión de Patrimonios, una disminución en los préstamos, un aumento en los depósitos, una reducción en los endeudamientos y una posición de liquidez estable. La posición de capital de PGC sigue siendo fuerte, con un enfoque en la recompra de acciones y el pago de dividendos.
Peapack-Gladstone 금융(PGC)이 2024년 1분기 재무 결과를 발표했으며, 전년 동기 대비 총 수입, 순수입, 희석 주당이익이 감소했습니다. 회사는 마진 압박과 신용 품질에 어려움을 겪었습니다. 경제적 도전에도 불구하고, PGC는 유동성을 향상시키고, 대차대조표를 다양화하며 수익성을 개선하기 위해 뉴욕 시로 확장하고 있습니다. 주요 하이라이트로는 자산 관리 부문의 성장, 대출 감소, 예금 증가, 차입금 감소 및 안정적인 유동성 위치가 있습니다. PGC의 자본 위치는 여전히 강하며, 주식 매입 및 배당금 지급에 중점을 두고 있습니다.
Peapack-Gladstone Financial (PGC) rapporte les résultats financiers du premier trimestre 2024, montrant une baisse des revenus totaux, du résultat net et de l'EPS dilué par rapport au trimestre de l'année précédente. L'entreprise a été confrontée à des défis en matière de compression des marges et de qualité de crédit. Malgré les défis économiques, PGC se développe à New York, avec l'objectif d'améliorer la liquidité, de diversifier le bilan et d'accroître la rentabilité. Les points saillants comprennent la croissance dans la division de gestion de patrimoine, une baisse des prêts, une augmentation des dépôts, une réduction des emprunts et une position de liquidité stable. La position en capital de PGC reste forte, avec un focus sur le rachat d'actions et le versement de dividendes.
Peapack-Gladstone Financial (PGC) berichtet über die Finanzergebnisse des ersten Quartals 2024, die einen Rückgang der Gesamteinnahmen, des Nettoeinkommens und des verwässerten EPS im Vergleich zum Vorjahresquartal zeigen. Das Unternehmen hatte mit Herausforderungen bei der Margenkompression und der Kreditqualität zu kämpfen. Trotz wirtschaftlicher Herausforderungen expandiert PGC nach New York City, mit dem Ziel, die Liquidität zu verbessern, die Bilanz zu diversifizieren und die Rentabilität zu steigern. Zu den Höhepunkten gehören das Wachstum in der Vermögensverwaltungsdivision, ein Rückgang bei den Krediten, ein Anstieg der Einlagen, eine Reduzierung der Verbindlichkeiten und eine stabile Liquiditätsposition. Die Kapitalposition von PGC bleibt stark, mit einem Fokus auf Aktienrückkäufe und Dividendenzahlungen.
Positive
  • Total revenue decreased by 14% to $53.1 million in Q1 2024 compared to the prior year quarter.
  • Net income declined by 53% to $8.6 million in Q1 2024 compared to the same period last year.
  • Diluted EPS dropped by 52% to $0.48 in Q1 2024 compared to the previous year quarter.
  • Return on average assets was 0.54%, return on average equity was 5.94%, and return on average tangible equity was 6.45% for Q1 2024.
  • Net interest margin decreased to 2.20% in Q1 2024 from 2.29% in Q4 2023 and 2.88% in Q1 2023.
  • Deposits grew by $202.6 million to $5.48 billion in Q1 2024, while loans decreased by $73.7 million to $5.36 billion.
  • The company recorded total revenue of $53.1 million, net income of $8.6 million, and diluted EPS of $0.48 for the quarter ended March 31, 2024.
  • PGC's liquidity position remains stable, with balance sheet liquidity increasing to 12.1% of total assets or $776.8 million.
  • The company repurchased 100,000 shares of Company stock at a cost of $2.4 million during the first quarter of 2024.
  • PGC's Tier 1 Leverage Ratio stood at 11.02% for Peapack-Gladstone Bank and 9.36% for the Company at March 31, 2024.
  • The Company declared a cash dividend of $0.05 per share payable on May 23, 2024, to shareholders of record on May 9, 2024.
Negative
  • Total revenue decreased by 14% in Q1 2024, signaling a challenging quarter for PGC.
  • Net income dropped by 53% in Q1 2024 compared to the same period last year.
  • Diluted EPS declined by 52% in Q1 2024, reflecting lower profitability for the company.
  • Return on average assets, return on average equity, and return on average tangible equity all decreased in Q1 2024.
  • Net interest margin showed a notable decline in Q1 2024 compared to the previous quarters.
  • Loans decreased while deposits grew in Q1 2024, impacting PGC's balance sheet composition.
  • The liquidity position of PGC remains stable, with a significant increase in balance sheet liquidity.
  • The repurchase of company stock and payment of dividends affected PGC's capital position in Q1 2024.

Insights

The reported decrease in net income and diluted EPS year-over-year, combined with a decline in net interest margin (NIM), signals potential challenges in profitability and interest income generation. Investors should note that a decrease in NIM often correlates with pressure on interest earnings, which is a critical component of a financial institution's revenue stream. The reported growth in deposits and reduction in overnight borrowings suggest a stronger liquidity position, which may offer some stability in turbulent market conditions.

However, the decline in loans may be indicative of a conservative approach to lending amidst economic uncertainty, potentially limiting revenue growth from this traditionally core area. Additionally, the expansion into New York City and investment in recruitment can be a double-edged sword; while it may indicate a strategic growth initiative, it also introduces associated risks and costs, the impacts of which may take time to materialize positively on the balance sheet.

The focus on fee-based revenue from Wealth Management services, representing 35% of total revenue, suggests a diversification strategy that may reduce reliance on interest income and potentially provide a buffer against interest rate volatility. The growth in Assets Under Management (AUM)/Assets Under Advisement (AUA) is a positive indicator of the division's performance, although it's important for investors to assess whether this uptrend can be sustained in the context of broader market trends.

The reported increase in past due and criticized and classified loans is a red flag for potential credit risk exposure. The provision for credit losses, although lower than previous quarters, indicates the company is actively managing its loan portfolio in anticipation of possible future losses. The strong capital ratios exceeding regulatory 'well-capitalized' standards provide a cushion against potential losses, but investors should monitor these metrics closely, especially when considering the ongoing economic headwinds.

BEDMINSTER, NJ, April 23, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire -- Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the “Company”) announces its first quarter 2024 financial results.

This earnings release should be read in conjunction with the Company’s Q1 2024 Investor Update, a copy of which is available on our website at www.pgbank.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

The Company recorded total revenue of $53.1 million, net income of $8.6 million and diluted earnings per share (“EPS”) of $0.48 for the quarter ended March 31, 2024, compared to revenue of $62.0 million, net income of $18.4 million and diluted EPS of $1.01 for the quarter ended March 31, 2023.

The Company’s return on average assets was 0.54%, return on average equity was 5.94%, and return on average tangible equity was 6.45% for the quarter ended March 31, 2024.

The net interest margin declined to 2.20% for the quarter ended March 31, 2024, compared to 2.29% for the quarter ended December 31, 2023 and 2.88% for the quarter ended March 31, 2023.

During the first quarter of 2024, deposits grew $202.6 million to $5.48 billion, loans decreased $73.7 million to $5.36 billion and overnight borrowings were reduced by $284.3 million. The Company’s liquidity position remains stable as balance sheet liquidity, as a percentage of total assets, increased to 12.1% or $776.8 million. The Company also had $2.9 billion of external borrowing capacity available, which, when combined with on balance sheet liquidity, provides us with 303% coverage of our uninsured deposits.

Douglas L. Kennedy, President and CEO said, “The first quarter continued to present headwinds for our organization with margin compression and credit quality our primary areas of concern.  As we work through this challenging economic environment, we continue to thoroughly analyze our loan portfolio for areas of potential stress. We are fortunate to be able to rely on a consistent stream of fee revenue in this difficult interest rate environment led by Wealth Management fees and other noninterest income which represented 35% of total revenue in the first quarter of 2024."

Mr. Kennedy also noted, “Despite the economic challenges facing the financial services industry, we are moving forward with our expansion into New York City. We recently announced that we have successfully recruited and hired over 10 commercial private banking teams to work alongside the existing New York City teams hired during 2023. These new teams will be led by Andrew Corrado, who is a seasoned leader with more than 35 years of experience in this space. We believe that this ongoing strategic expansion will enhance our liquidity, enable us to diversify our balance sheet, improve profitability and provide favorable operating leverage in the years to come."

The following are select highlights for the period ended March 31, 2024:

Wealth Management:

  • Gross new business inflows for Q1 2024 totaled $236 million ($138 million managed).
  • AUM/AUA in our Wealth Management Division totaled $11.5 billion at March 31, 2024 compared to $10.9 billion at December 31, 2023, which represents an increase of 6% on a linked quarter basis.
  • Wealth Management fee income was $14.4 million in Q1 2024, which amounted to 27% of total revenue for the quarter.

Commercial Banking and Balance Sheet Management:

  • Total deposits grew by $202.6 million to $5.48 billion at March 31, 2024 compared to $5.27 billion at December 31, 2023.
  • Borrowings decreased $284.3 million to $119.5 million at March 31, 2024 from $403.8 million at December 31, 2023.
  • Total loans declined $73.7 million to $5.36 billion for March 31, 2024 from $5.44 billion at December 31, 2023.
  • Commercial and industrial lending (“C&I”) loan/lease balances represent 42% of the total loan portfolio at March 31, 2024.
  • Fee income on unused commercial lines of credit totaled $827,000 for Q1 2024.
  • The net interest margin ("NIM") was 2.20% in Q1 2024, a decrease from 2.29% at Q4 2023 and 2.88% at Q1 2023.
  • Noninterest-bearing demand deposits amounted to 17% of total deposits as of March 31, 2024.
  • Core deposits (which includes noninterest-bearing demand and interest-bearing demand, savings and money market accounts) totaled 88% of total deposits at March 31, 2024.

Capital Management:

  • Tangible book value per share remained relatively flat at $30.21 per share at March 31, 2024 compared to $30.31 at December 31, 2023.
  • During the first quarter, the Company repurchased 100,000 shares of Company stock at a cost of $2.4 million. For the full year 2023, the Company repurchased 455,341 shares at a cost of $12.5 million.
  • At March 31, 2024, the Tier 1 Leverage Ratio stood at 11.02% for Peapack-Gladstone Bank (the "Bank") and 9.36% for the Company. The Common Equity Tier 1 Ratio (to Risk-Weighted Assets) was 13.86% for the Bank and 11.76% for the Company at March 31, 2024. These ratios remain significantly above well capitalized standards, as capital continues to benefit from net income generation.

SUMMARY INCOME STATEMENT DETAILS:

The following tables summarize specified financial details for the periods shown.

March 2024 Quarter Compared to Prior Year Quarter

  Three Months Ended   Three Months Ended       
  March 31,   March 31,  Increase/ 
(Dollars in millions, except per share data) 2024   2023  (Decrease) 
Net interest income $34.38   $43.98  $(9.60)  (22)%
Wealth management fee income  14.41    13.76   0.65   5 
Capital markets activity  1.27    0.97   0.30   31 
Other income (a)  3.02    3.33   (0.31)  (9)
Total other income  18.70    18.06   0.64   4 
              
Total Revenue  53.08    62.04   (8.96)  (14)%
              
Operating expenses (b)  40.04    35.57   4.47   13 
Pretax income before provision for credit losses  13.04    26.47   (13.43)  (51)
Provision for credit losses  0.63    1.51   (0.88)  (58)
Pretax income  12.41    24.96   (12.55)  (50)
Income tax expense  3.78    6.60   (2.82)  (43)
Net income $8.63   $18.36  $(9.73)  (53)%
Diluted EPS $0.48   $1.01  $(0.53)  (52)%
              
Return on average assets annualized  0.54%   1.16%  (0.62)   
Return on average equity annualized  5.94%   13.50%  (7.56)   

(a) Other income for the quarter ended March 31, 2024 included a negative fair value adjustment on a CRA equity security of $111,000 and $181,000 of income from life insurance proceeds. Other income for the three months ended March 31, 2023 included a positive fair value adjustment on a CRA equity security of $209,000.
(b) The quarter ended March 31, 2023 included one-time charges totaling $300,000 related to the retirement of certain employees and $175,000 of expense associated with three retail branch closures.

March 2024 Quarter Compared to Linked Quarter

  Three Months Ended  Three Months Ended        
  March 31,  December 31,   Increase/ 
(Dollars in millions, except per share data) 2024  2023   (Decrease) 
Net interest income $34.38  $36.68   $(2.30)  (6)%
Wealth management fee income  14.41   13.76    0.65   5 
Capital markets activity  1.27   0.30    0.97   323 
Other income (a)  3.02   3.53    (0.51)  (14)
Total other income  18.70   17.59    1.11   6 
              
Total Revenue  53.08   54.27    (1.19)  (2)%
              
Operating expenses  40.04   37.62    2.42   6 
Pretax income before provision for credit losses  13.04   16.65    (3.61)  (22)
Provision for credit losses  0.63   5.03    (4.40)  (87)
Pretax income  12.41   11.62    0.79   7 
Income tax expense  3.78   3.02    0.76   25 
Net income $8.63  $8.60   $0.03   0%
Diluted EPS $0.48  $0.48   $-   0%
              
Return on average assets annualized  0.54%  0.53%   0.01    
Return on average equity annualized  5.94%  6.13%   (0.19)   

(a) Other income for the quarter ended March 31, 2024 included a negative fair value adjustment on a CRA equity security of $111,000 and $181,000 of income from life insurance proceeds. Other income for the three months ended December 31, 2023 included a positive fair value adjustment on a CRA equity security of $585,000.

SUPPLEMENTAL QUARTERLY DETAILS:

Wealth Management

AUM/AUA in the Bank’s Wealth Management Division were $11.5 billion at March 31, 2024 compared to $10.9 billion at December 31, 2023.  For the March 2024 quarter, the Wealth Management Team generated $14.4 million in fee income, compared to $13.8 million for the December 31, 2023 quarter and $13.8 million for the March 2023 quarter. The equity markets improved during Q1 2024, contributing to the increase in AUM/AUA along with gross new business inflows of $236 million.

John Babcock, President of the Bank's Wealth Management Division, noted, “2024 included total new accounts and client additions of $236 million ($138 million managed). As we look forward into 2024, our new business pipeline is healthy, and we remain focused on delivering excellent service and advice to our clients. Our highly skilled wealth management professionals, our fiduciary powers and expertise, our financial planning capabilities combined with our high-touch client service model distinguishes us in our market and continues to drive our growth and success.”

Loans / Commercial Banking

Total loans declined $73.7 million, or 1%, to $5.36 billion at March 31, 2024 when compared to the previous linked quarter.  Total C&I loans and leases at March 31, 2024 were $2.24 billion or 42% of the total loan portfolio.

Mr. Kennedy noted, “As previously mentioned, we have tightened our underwriting guidelines due to economic uncertainty. Originations have also slowed due to the rate environment. As a result, our outstanding loan balances declined during Q1 2024. We are proud to have built a leading middle market commercial banking franchise, as evidenced by our C&I Portfolio, Treasury Management services, Corporate Advisory and SBA businesses. We believe these business lines fit perfectly with our private banking business model and will generate solid production going forward.”

Net Interest Income (NII)/Net Interest Margin (NIM)

The Company’s NII of $34.4 million and NIM of 2.20% for Q1 2024 decreased $2.3 million and 9 basis point from NII of $36.7 million and NIM of 2.29% for the linked quarter (Q4 2023), respectively, and decreased $9.6 million and 68 basis points from NII of $44.0 million and NIM of 2.88% for the prior year period (Q1 2023), respectively.  When comparing Q1 2024 to the prior periods, the Company has seen a sharp increase in interest expense mostly driven by higher deposit rates during 2023 and into 2024 and a greater proportion of the portfolio in higher-costing checking accounts and certificates of deposit. Cycle to date betas are approximately 52%.  Clients continue to migrate out of noninterest bearing checking products and into higher yielding alternatives, which leads to intense competition for deposit balances from other banks. Customers are also pursuing alternative investment opportunities due to the significant rise in interest rates.

Funding / Liquidity / Interest Rate Risk Management

Total deposits increased $202.6 million to $5.48 billion at March 31, 2024 from $5.27 billion at December 31, 2023.  The increase in deposits was used to lower the amount of overnight borrowings from $403.8 million at December 31, 2023 to $119.5 million at March 31, 2024.

At March 31, 2024, the Company’s balance sheet liquidity (investments available for sale, interest-earning deposits and cash) totaled $776.8 million, or 12% of assets.

The Company maintains additional liquidity resources of approximately $2.9 billion through secured available funding with the Federal Home Loan Bank and the Federal Reserve Discount Window. The available funding from the Federal Home Loan Bank and the Federal Reserve are secured by the Company’s loan and investment portfolios.

The Company's total on and off-balance sheet liquidity totaled $3.7 billion, which is 303% of the total uninsured/uncollateralized deposits on the Company balance sheet.

Income from Capital Markets Activities

Noninterest income from Capital Markets activities (detailed below) totaled $1.3 million for the March 2024 quarter compared to $296,000 for the December 2023 quarter and $966,000 for the March 2023 quarter. The March 2024 quarter included $818,000 of Corporate Advisory fee income.

  Three Months Ended  Three Months Ended  Three Months Ended 
  March 31,  December 31,  March 31, 
(Dollars in thousands, except per share data) 2024  2023  2023 
Gain on loans held for sale at fair value (Mortgage banking) $56  $18  $21 
Gain on sale of SBA loans  400   239   865 
Corporate advisory fee income  818   39   80 
Total capital markets activity $1,274  $296  $966 

Other Noninterest Income (other than Wealth Management Fee Income and Income from Capital Markets Activities)        

Other noninterest income was $3.0 million for Q1 2024 compared to $3.5 million for Q4 2023 and $3.3 million for Q1 2023. Q1 2024 included $141,000 of income recorded by the Equipment Finance Division related to equipment transfers to lessees upon the termination of leases while Q4 2023 included $309,000 and Q1 2023 included $145,000 respectively. Additionally, Q1 2024 included $827,000 of unused line fees compared to $750,000 for Q4 2023 and $852,000 for Q1 2023.

Operating Expenses

The Company’s total operating expenses were $40.0 million for the first quarter of 2024, compared to $37.6 million for the December 2023 quarter and $35.6 million for the March 2023 quarter. The March 2024 and December 2023 quarters included expenses associated with the Company’s expansion into New York City.

Mr. Kennedy noted, “We continue to make investments related to our strategic decision to expand into New York City as evidenced by the hiring of a senior leader and 10+ commercial private banking teams during the first quarter of 2024.  We will continue to manage expenses throughout the Company and continue to look for opportunities to create efficiencies while also investing in digital and other software tools to further enhance the client experience.”

Income Taxes

The effective tax rate for the three months ended March 31, 2024 was 30.4%, as compared to 26.0% for the December 2023 quarter and 26.4% for the quarter ended March 31, 2023. The higher tax rate for the March 2024 quarter was primarily due to the impact of vesting of restricted stock at prices lower than original grant prices.

Asset Quality / Provision for Credit Losses

Nonperforming assets (which does not include modified loans that are performing in accordance with their terms) were $69.8 million, or 1.09% of total assets at March 31, 2024, as compared to $61.3 million, or 0.95% of total assets at December 31, 2023. Loans past due 30 to 89 days and still accruing were $73.7 million, or 1.37% of total loans at March 31, 2024 compared to $34.6 million, or 0.64% of total loans at December 31, 2023. The Q1 2024 loans past due 30 to 89 days and still accruing included $25.2 million to federal and state governmental entities, $15.0 million to a single equipment finance customer and $28.9 million to two multifamily sponsors.

Criticized and classified loans totaled $177.3 million at March 31, 2024, reflecting an increase from December 31, 2023 and March 31, 2023 levels. The Company currently has no loans or leases on deferral and accruing.

For the quarter ended March 31, 2024, the Company’s provision for credit losses was $615,000 compared to $5.0 million for the December 2023 quarter and $1.5 million for the March 2023 quarter. The provision for credit losses in the first quarter of 2024 was positive despite a decline in loans and improved GDP forecasts, as the Company experienced an increase in past due and criticized and classified loans.

At March 31, 2024, the allowance for credit losses was $66.3 million (1.24% of total loans), compared to $65.9 million (1.21% of loans) at December 31, 2023, and $62.3 million (1.16% of loans) at March 31, 2023.

Capital

The Company’s capital position declined during the first quarter of 2024 due to the repurchase of 100,000 shares through the Company's stock repurchase program at a total cost of $2.4 million and payment of a quarterly dividend of $887,000.  Additionally, during the first quarter of 2024, the Company recorded deterioration in accumulated other comprehensive losses of $2.9 million, net of tax. This amount was driven by a $5.0 million decrease in the value of the available for sale securities portfolio partially offset by a $2.1 million gain on cash flow hedges. The total accumulated other comprehensive loss declined to $67.8 million as of March 31, 2024 ($74.8 million loss related to the available for sale securities portfolio partially offset by a $7.0 million gain on the cash flow hedges).  These changes were partially offset by net income of $8.6 million.

Tangible book value per share decreased during Q1 2024 to $30.21 at March 31, 2024 from $30.31 at December 31, 2023. Tangible book value per share is a non-GAAP financial measure. See the reconciliation tables included in this release for further detail. The Company’s and Bank’s regulatory capital ratios as of March 31, 2024 remain strong, and reflect increases from December 31, 2023 levels. Where applicable, such ratios remain well above regulatory well capitalized standards.

The Company employs quarterly capital stress testing modeling of an adverse case and severely adverse case. In the most recently completed stress test (as of December 31, 2023), under the severely adverse case, and no growth scenario, the Bank remains well capitalized over a two-year stress period.

On March 28, 2024, the Company declared a cash dividend of $0.05 per share payable on May 23, 2024 to shareholders of record on May 9, 2024.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $6.4 billion and assets under management/administration of $11.5 billion as of March 31, 2024. Founded in 1921, Peapack-Gladstone Bank is a commercial bank that provides Private Banking customized solutions through its wealth management, commercial and retail solutions, including residential lending and online platforms, to businesses and consumers. Peapack Private, the bank’s wealth management division, offers comprehensive financial, tax, fiduciary and investment advice and solutions to individuals, families, privately-held businesses, family offices and not-for-profit organizations, which help them to establish, maintain and expand their legacy. Together, Peapack-Gladstone Bank and Peapack Private offer an unparalleled commitment to client service. Visit www.pgbank.com and www.peapackprivate.com for more information.

FORWARD-LOOKING STATEMENTS

The foregoing may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, investments, relationships, opportunities and market conditions. These statements may be identified by such forward-looking terminology as “expect,” “look,” “believe,” “anticipate,” “may” or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to:

  • our ability to successfully grow our business and implement our strategic plan, including our ability to generate revenues to offset the increased personnel and other costs related to the strategic plan;
  • the impact of anticipated higher operating expenses in 2024 and beyond;
  • our ability to successfully integrate wealth management firm and team acquisitions;
  • our ability to successfully integrate our expanded employee base;
  • an unexpected decline in the economy, in particular in our New Jersey and New York market areas, including potential recessionary conditions;
  • declines in our net interest margin caused by the interest rate environment and/or our highly competitive market;
  • declines in the value in our investment portfolio;
  • impact from a pandemic event on our business, operations, customers, allowance for credit losses and capital levels;
  • the continuing impact of the COVID-19 pandemic on our business and results of operation;
  • higher than expected increases in our allowance for credit losses;
  • higher than expected increases in credit losses or in the level of delinquent, nonperforming, classified and criticized loans or charge-offs;
  • inflation and changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and lead to higher operating costs;
  • decline in real estate values within our market areas;
  • legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Basel III and related regulations) that may result in increased compliance costs;
  • successful cyberattacks against our IT infrastructure and that of our IT and third-party providers;
  • higher than expected FDIC insurance premiums;
  • adverse weather conditions;
  • the current or anticipated impact of military conflict, terrorism or other geopolitical events;
  • our inability to successfully generate new business in new geographic markets, including our expansion into New York City;
  • a reduction in our lower-cost funding sources;
  • changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio;
  • our inability to adapt to technological changes;
  • claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters;
  • our inability to retain key employees;
  • demands for loans and deposits in our market areas;
  • adverse changes in securities markets;
  • changes in New York City rent regulation law;
  • changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
  • changes in accounting policies and practices; and/or
  • other unexpected material adverse changes in our operations or earnings.

A discussion of these and other factors that could affect our results is included in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2023. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Contact:
Frank A. Cavallaro, SEVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-306-8933

(Tables to follow)

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except per share data)
(Unaudited)

  For the Three Months Ended 
  March 31,  Dec 31,  Sept 30,  June 30,  March 31, 
  2024  2023  2023  2023  2023 
Income Statement Data:               
Interest income $79,194  $80,178  $78,489  $74,852  $70,491 
Interest expense  44,819   43,503   41,974   35,931   26,513 
Net interest income  34,375   36,675   36,515   38,921   43,978 
Wealth management fee income  14,407   13,758   13,975   14,252   13,762 
Service charges and fees  1,322   1,255   1,319   1,320   1,258 
Bank owned life insurance  503   357   310   305   297 
Gain on loans held for sale at fair value
(Mortgage banking)		  56   18   37   15   21 
Gain on sale of SBA loans  400   239   491   838   865 
Corporate advisory fee income  818   39   85   15   80 
Other income (A)  1,306   1,339   3,541   2,039   1,567 
Fair value adjustment for CRA equity security  (111)  585   (404)  (209)  209 
Total other income  18,701   17,590   19,354   18,575   18,059 
                
Total revenue  53,076   54,265   55,869   57,496   62,037 
                
Salaries and employee benefits (B)  28,476   24,320   25,264   26,354   24,586 
Premises and equipment  5,081   5,416   5,214   4,729   4,374 
FDIC insurance expense  945   765   741   729   711 
Other expenses  5,539   7,115   6,194   5,880   5,903 
Total operating expenses  40,041   37,616   37,413   37,692   35,574 
Pretax income before provision for credit losses  13,035   16,649   18,456   19,804   26,463 
Provision for credit losses  627   5,026   5,856   1,696   1,513 
Income before income taxes  12,408   11,623   12,600   18,108   24,950 
Income tax expense  3,777   3,024   3,845   4,963   6,595 
Net income $8,631  $8,599  $8,755  $13,145  $18,355 
                
Per Common Share Data:               
Earnings per share (basic) $0.49  $0.48  $0.49  $0.73  $1.03 
Earnings per share (diluted)  0.48   0.48   0.49   0.73   1.01 
Weighted average number of common
shares outstanding:		               
Basic  17,711,639   17,770,158   17,856,961   17,930,611   17,841,203 
Diluted  17,805,347   17,961,400   18,010,127   18,078,848   18,263,310 
Performance Ratios:               
Return on average assets annualized (ROAA)  0.54%  0.53%  0.54%  0.82%  1.16%
Return on average equity annualized (ROAE)  5.94%  6.13%  6.20%  9.43%  13.50%
Return on average tangible equity annualized (ROATCE) (C)  6.45%  6.68%  6.75%  10.30%  14.78%
Net interest margin (tax-equivalent basis)  2.20%  2.29%  2.28%  2.49%  2.88%
GAAP efficiency ratio (D)  75.44%  69.32%  66.97%  65.56%  57.34%
Operating expenses / average assets annualized  2.51%  2.33%  2.31%  2.36%  2.26%

(A) The September 2023 quarter included $2.3 million of fee income from equipment finance activity.
(B) The June 2023 quarter included $1.7 million of expense associated with the retirement of certain employees.
(C) Return on average tangible equity is calculated by dividing tangible equity by annualized net income. See Non-GAAP financial measures reconciliation included in these tables.
(D) Calculated as total operating expenses as a percentage of total revenue. For Non-GAAP efficiency ratio, see the Non-GAAP financial measures reconciliation included in these tables.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)

  As of 
  March 31,  Dec 31,  Sept 30,  June 30,  March 31, 
  2024  2023  2023  2023  2023 
ASSETS               
Cash and due from banks $5,769  $5,887  $7,400  $4,859  $6,514 
Federal funds sold  —   —   —   —   — 
Interest-earning deposits  189,069   181,784   180,469   166,769   244,779 
Total cash and cash equivalents  194,838   187,671   187,869   171,628   251,293 
Securities available for sale  550,870   550,617   521,005   540,519   556,266 
Securities held to maturity  106,498   107,755   108,940   110,438   111,609 
CRA equity security, at fair value  13,055   13,166   12,581   12,985   13,194 
FHLB and FRB stock, at cost (A)  18,079   31,044   34,158   35,402   30,338 
                
Residential mortgage  581,426   578,427   585,295   575,238   544,655 
Multifamily mortgage  1,827,165   1,836,390   1,871,853   1,884,369   1,871,387 
Commercial mortgage  615,964   637,625   622,469   624,710   613,911 
Commercial and industrial loans  2,235,342   2,284,940   2,321,917   2,278,133   2,266,837 
Consumer loans  66,827   62,036   57,227   52,098   49,002 
Home equity lines of credit  35,542   36,464   34,411   34,397   33,294 
Other loans  184   238   265   269   443 
Total loans  5,362,450   5,436,120   5,493,437   5,449,214   5,379,529 
Less: Allowance for credit losses  66,251   65,888   68,592   62,704   62,250 
Net loans  5,296,199   5,370,232   5,424,845   5,386,510   5,317,279 
                
Premises and equipment  24,494   24,166   23,969   23,814   23,782 
Other real estate owned  —   —   —   —   116 
Accrued interest receivable  32,672   30,676   22,889   20,865   19,143 
Bank owned life insurance  47,580   47,581   47,509   47,382   47,261 
Goodwill and other intangible assets  45,742   46,014   46,286   46,624   46,979 
Finance lease right-of-use assets  1,900   2,087   2,274   2,461   2,648 
Operating lease right-of-use assets  16,035   12,096   12,800   13,500   12,262 
Other assets  60,591   53,752   76,456   67,572   47,848 
TOTAL ASSETS $6,408,553  $6,476,857  $6,521,581  $6,479,700  $6,480,018 
                
LIABILITIES               
Deposits:               
Noninterest-bearing demand deposits $914,893  $957,687  $947,405  $1,024,105  $1,096,549 
Interest-bearing demand deposits  3,029,119   2,882,193   2,871,359   2,816,913   2,797,493 
Savings  108,305   111,573   117,905   120,082   132,523 
Money market accounts  775,132   740,559   761,833   763,026   873,329 
Certificates of deposit – Retail  486,079   443,791   422,291   384,106   357,131 
Certificates of deposit – Listing Service  7,704   7,804   9,103   10,822   15,922 
Subtotal “customer” deposits  5,321,232   5,143,607   5,129,896   5,119,054   5,272,947 
IB Demand – Brokered  10,000   10,000   10,000   10,000   10,000 
Certificates of deposit – Brokered  145,480   120,507   119,463   69,443   25,895 
Total deposits  5,476,712   5,274,114   5,259,359   5,198,497   5,308,842 
Short-term borrowings  119,490   403,814   470,576   485,360   378,800 
Finance lease liability  3,104   3,430   3,752   4,071   4,385 
Operating lease liability  17,630   12,876   13,595   14,308   13,082 
Subordinated debt, net  133,346   133,274   133,203   133,131   133,059 
Due to brokers  —   —   —   —   8,308 
Other liabilities  75,892   65,668   82,140   79,264   78,584 
TOTAL LIABILITIES  5,826,174   5,893,176   5,962,625   5,914,631   5,925,060 
Shareholders’ equity  582,379   583,681   558,956   565,069   554,958 
TOTAL LIABILITIES AND               
SHAREHOLDERS’ EQUITY $6,408,553  $6,476,857  $6,521,581  $6,479,700  $6,480,018 
Assets under management and / or administration at
Peapack-Gladstone Bank’s Private Wealth Management
Division (market value, not included above-dollars in billions)		 $11.5  $10.9  $10.4  $10.7  $10.4 

(A) FHLB means "Federal Home Loan Bank" and FRB means "Federal Reserve Bank."
.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)

  As of 
  March 31,  Dec 31,  Sept 30,  June 30,  March 31, 
  2024  2023  2023  2023  2023 
Asset Quality:               
Loans past due over 90 days and still accruing $35  $—  $—  $—  $— 
Nonaccrual loans (A)  69,811   61,324   70,809   34,505   28,659 
Other real estate owned  —   —   —   —   116 
Total nonperforming assets $69,846  $61,324  $70,809  $34,505  $28,775 
                
Nonperforming loans to total loans  1.30%  1.13%  1.29%  0.63%  0.53%
Nonperforming assets to total assets  1.09%  0.95%  1.09%  0.53%  0.44%
                
Performing modifications (B)(C) $12,311  $248  $248  $248  $248 
                
Loans past due 30 through 89 days and still accruing (D) $73,699  $34,589  $9,780  $14,524  $2,762 
                
Loans subject to special mention $59,450  $71,397  $53,328  $53,606  $46,566 
                
Classified loans $117,869  $84,372  $94,866  $58,655  $58,010 
                
Individually evaluated loans $69,530  $60,710  $70,184  $33,867  $27,736 
                
Allowance for credit losses ("ACL"):               
Beginning of quarter $65,888  $68,592  $62,704  $62,250  $60,829 
Provision for credit losses (E)  615   5,082   5,944   1,666   1,464 
(Charge-offs)/recoveries, net (F)  (252)  (7,786)  (56)  (1,212)  (43)
End of quarter $66,251  $65,888  $68,592  $62,704  $62,250 
                
ACL to nonperforming loans  94.85%  107.44%  96.87%  181.72%  217.21%
ACL to total loans  1.24%  1.21%  1.25%  1.15%  1.16%
Collectively evaluated ACL to total loans (G)  1.15%  1.13%  1.10%  1.11%  1.11%

(A) Includes one freight credit totaling $22.2 million at March 31, 2024, one freight credit totaling $23.5 million at December 31, 2023 and two freight credits totaling $33.4 million at September 30, 2023. Excludes $1.6 million in held for sale at September 30, 2023.
(B) Amounts reflect modifications that are paying according to modified terms.
(C) Excludes modifications included in nonaccrual loans of $3.2 million at March 31, 2024, $3.0 million at December 31, 2023, $3.1 million at September 30, 2023 and $777,000 at June 30, 2023.
(D) Includes $25.2 million to U.S. and state governmental entities, $15.0 million for one equipment finance deal and $28.9 million to two multifamily sponsors at March 31, 2024, $16.5 million outstanding to U.S. governmental entities at December 31, 2023 and $8.2 million of outstanding multifamily loans to one sponsor.
(E) Excludes a provision of $12,000 at March 31, 2024, a credit of $55,000 at December 31, 2023, a credit of $88,000 at September 30, 2023, a provision of $30,000 at June 30, 2023 and a provision of $49,000 at March 31, 2023 related to off-balance sheet commitments.
(F) Net charge-offs for the quarter ended December 31, 2023 included charge-offs of $2.2 million of a previously established reserve to loans individually evaluated on one multifamily loan and $5.6 million on one equipment finance relationship. Net charge-offs for the quarter ended June 30, 2023 included a charge-off of $1.2 million of a previously established reserve to loans individually evaluated on one commercial real estate loan.
(G) Total ACL less reserves to loans individually evaluated equals collectively evaluated ACL.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)

  As of 
  March 31,  December 31,  March 31, 
  2024  2023  2023 
Capital Adequacy               
Equity to total assets (A)    9.09%    9.01%    8.56%
Tangible equity to tangible assets (B)    8.43%    8.36%    7.90%
Book value per share (C)   $32.79    $32.90    $30.81 
Tangible book value per share (D)   $30.21    $30.31    $28.20 
                
Tangible equity to tangible assets excluding other comprehensive loss*    9.40%    9.28%    8.85%
Tangible book value per share excluding other comprehensive loss*   $34.03    $33.97    $31.94 

*Excludes other comprehensive loss of $67.8 million for the quarter ended March 31, 2024, $64.9 million for the quarter ended December 31, 2023, and $67.4 million for the quarter ended March 31, 2023. See Non-GAAP financial measures reconciliation included in these tables.

(A) Equity to total assets is calculated as total shareholders’ equity as a percentage of total assets at quarter end.
(B) Tangible equity and tangible assets are calculated by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. Tangible equity as a percentage of tangible assets at quarter end is calculated by dividing tangible equity by tangible assets at quarter end. See Non-GAAP financial measures reconciliation included in these tables.
(C) Book value per common share is calculated by dividing shareholders’ equity by quarter end common shares outstanding.
(D) Tangible book value per share excludes intangible assets. Tangible book value per share is calculated by dividing tangible equity by quarter end common shares outstanding. See Non-GAAP financial measures reconciliation tables.

  As of
  March 31, December 31, March 31,
  2024  2023  2023 
Regulatory Capital – Holding Company               
Tier I leverage $602,493  9.36% $600,444  9.19% $573,154  9.02%
Tier I capital to risk-weighted assets  602,493  11.76   600,444  11.43   573,154  11.39 
Common equity tier I capital ratio
to risk-weighted assets		  602,481  11.76   600,432  11.43   573,136  11.39 
Tier I & II capital to risk-weighted assets  785,909  15.34   785,413  14.95   762,095  15.15 
                
Regulatory Capital – Bank               
Tier I leverage (E) $709,744  11.02% $707,446  10.83% $700,858  11.03%
Tier I capital to risk-weighted assets (F)  709,744  13.86   707,446  13.48   700,858  13.93 
Common equity tier I capital ratio
to risk-weighted assets (G)		  709,732  13.86   707,434  13.47   700,840  13.93 
Tier I & II capital to risk-weighted assets (H)  773,781  15.11   773,083  14.73   763,732  15.18 

(E) Regulatory well capitalized standard (including capital conservation buffer) = 4.00% ($258 million)
(F) Regulatory well capitalized standard (including capital conservation buffer) = 8.50% ($435 million)
(G) Regulatory well capitalized standard (including capital conservation buffer) = 7.00% ($358 million)
(H) Regulatory well capitalized standard (including capital conservation buffer) = 10.50% ($538 million)

PEAPACK-GLADSTONE FINANCIAL CORPORATION
LOANS CLOSED
(Dollars in Thousands)
(Unaudited)

  For the Quarters Ended 
  March 31,  Dec 31,  Sept 30,  June 30,  March 31, 
  2024  2023  2023  2023  2023 
Residential loans retained $11,661  $5,895  $21,310  $39,358  $30,303 
Residential loans sold  4,025   1,449   2,503   1,072   1,477 
Total residential loans  15,686   7,344   23,813   40,430   31,780 
Commercial real estate  11,500   21,375   3,900   43,235   18,990 
Multifamily  1,900   5,725   3,000   26,662   30,150 
Commercial (C&I) loans (A) (B)  145,803   145,397   176,845   158,972   207,814 
SBA  2,790   7,326   300   13,713   9,950 
Wealth lines of credit (A)  3,850   350   6,875   3,950   23,225 
Total commercial loans  165,843   180,173   190,920   246,532   290,129 
Installment loans  6,868   2,946   6,999   4,587   12,086 
Home equity lines of credit (A)  2,103   4,174   6,275   6,107   2,921 
Total loans closed $190,500  $194,637  $228,007  $297,656  $336,916 

(A) Includes loans and lines of credit that closed in the period but not necessarily funded.
(B) Includes equipment finance.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
(Tax-Equivalent Basis, Dollars in Thousands)
(Unaudited)

  For the Three Months Ended 
  March 31, 2024  March 31, 2023 
  Average  Income/  Annualized  Average  Income/  Annualized 
  Balance  Expense  Yield  Balance  Expense  Yield 
ASSETS:                  
Interest-earning assets:                  
Investments:                  
Taxable (A) $793,675  $5,136   2.59% $791,125  $4,471   2.26%
Tax-exempt (A) (B)  —   —   —   1,864   19   4.08 
                   
Loans (B) (C):                  
Mortgages  577,648   5,420   3.75   529,570   4,283   3.24 
Commercial mortgages  2,460,403   27,541   4.48   2,478,645   25,917   4.18 
Commercial  2,240,161   37,559   6.71   2,201,801   33,369   6.06 
Commercial construction  18,927   428   9.05   4,296   88   8.19 
Installment  65,287   1,113   6.82   39,945   609   6.10 
Home equity  36,406   737   8.10   33,839   591   6.99 
Other  214   7   13.08   276   7   10.14 
Total loans  5,399,046   72,805   5.39   5,288,372   64,864   4.91 
Federal funds sold  —   —   —   —   —   — 
Interest-earning deposits  140,097   1,522   4.35   163,225   1,538   3.77 
Total interest-earning assets  6,332,818   79,463   5.02%  6,244,586   70,892   4.54%
Noninterest-earning assets:                  
Cash and due from banks  10,105         10,449       
Allowance for credit losses  (67,105)        (61,567)      
Premises and equipment  24,393         23,927       
Other assets  87,129         84,800       
Total noninterest-earning assets  54,522         57,609       
Total assets $6,387,340        $6,302,195       
                   
LIABILITIES:                  
Interest-bearing deposits:                  
Checking $2,954,698  $27,433   3.71% $2,567,426  $16,481   2.57%
Money markets  757,753   5,525   2.92   1,124,047   4,874   1.73 
Savings  108,503   89   0.33   141,285   28   0.08 
Certificates of deposit – retail  477,793   4,855   4.06   357,953   1,729   1.93 
Subtotal interest-bearing deposits  4,298,747   37,902   3.53   4,190,711   23,112   2.21 
Interest-bearing demand – brokered  10,000   126   5.04   26,111   208   3.19 
Certificates of deposit – brokered  128,341   1,602   4.99   25,961   205   3.16 
Total interest-bearing deposits  4,437,088   39,630   3.57   4,242,783   23,525   2.22 
Borrowings  235,384   3,467   5.89   104,915   1,296   4.94 
Capital lease obligation  3,215   38   4.73   4,493   53   4.72 
Subordinated debt  133,303   1,684   5.05   133,017   1,639   4.93 
Total interest-bearing liabilities  4,808,990   44,819   3.73%  4,485,208   26,513   2.36%
Noninterest-bearing liabilities:                  
Demand deposits  916,848         1,176,495       
Accrued expenses and other liabilities  80,499         96,631       
Total noninterest-bearing liabilities  997,347         1,273,126       
Shareholders’ equity  581,003         543,861       
Total liabilities and shareholders’ equity $6,387,340        $6,302,195       
Net interest income    $34,644        $44,379    
Net interest spread        1.29%        2.18%
Net interest margin (D)        2.20%        2.88%

(A) Average balances for available for sale securities are based on amortized cost.
(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual loans.
(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
(Tax-Equivalent Basis, Dollars in Thousands)
(Unaudited)

  For the Three Months Ended 
  March 31, 2024  December 31, 2023 
  Average  Income/  Annualized  Average  Income/  Annualized 
  Balance  Expense  Yield  Balance  Expense  Yield 
ASSETS:                  
Interest-earning assets:                  
Investments:                  
Taxable (A) $793,675  $5,136   2.59% $798,661  $5,202   2.61%
Tax-exempt (A) (B)  —   —   —   106   —   — 
                   
Loans (B) (C):                  
Mortgages  577,648   5,420   3.75   581,088   5,300   3.65 
Commercial mortgages  2,460,403   27,541   4.48   2,492,204   28,318   4.55 
Commercial  2,240,161   37,559   6.71   2,274,841   37,958   6.67 
Commercial construction  18,927   428   9.05   16,680   382   9.16 
Installment  65,287   1,113   6.82   59,988   1,037   6.91 
Home equity  36,406   737   8.10   35,570   721   8.11 
Other  214   7   13.08   246   8   13.01 
Total loans  5,399,046   72,805   5.39   5,460,617   73,724   5.40 
Federal funds sold  —   —   —   —   —   — 
Interest-earning deposits  140,097   1,522   4.35   146,699   1,623   4.43 
Total interest-earning assets  6,332,818   79,463   5.02%  6,406,083   80,549   5.03%
Noninterest-earning assets:                  
Cash and due from banks  10,105         10,709       
Allowance for credit losses  (67,105)        (68,289)      
Premises and equipment  24,393         24,387       
Other assets  87,129         85,720       
Total noninterest-earning assets  54,522         52,527       
Total assets $6,387,340        $6,458,610       
                   
LIABILITIES:                  
Interest-bearing deposits:                  
Checking $2,954,698  $27,433   3.71% $2,890,964  $25,811   3.57%
Money markets  757,753   5,525   2.92   771,051   5,247   2.72 
Savings  108,503   89   0.33   112,969   81   0.29 
Certificates of deposit – retail  477,793   4,855   4.06   440,712   4,086   3.71 
Subtotal interest-bearing deposits  4,298,747   37,902   3.53   4,215,696   35,225   3.34 
Interest-bearing demand – brokered  10,000   126   5.04   10,000   142   5.68 
Certificates of deposit – brokered  128,341   1,602   4.99   115,722   1,454   5.03 
Total interest-bearing deposits  4,437,088   39,630   3.57   4,341,418   36,821   3.39 
Borrowings  235,384   3,467   5.89   357,384   4,955   5.55 
Capital lease obligation  3,215   38   4.73   3,539   42   4.75 
Subordinated debt  133,303   1,684   5.05   133,234   1,685   5.06 
Total interest-bearing liabilities  4,808,990   44,819   3.73%  4,835,575   43,503   3.60%
Noninterest-bearing liabilities:                  
Demand deposits  916,848         963,968       
Accrued expenses and other liabilities  80,499         98,012       
Total noninterest-bearing liabilities  997,347         1,061,980       
Shareholders’ equity  581,003         561,055       
Total liabilities and shareholders’ equity $6,387,340        $6,458,610       
Net interest income    $34,644        $37,046    
Net interest spread        1.29%        1.43%
Net interest margin (D)        2.20%        2.29%

(A) Average balances for available for sale securities are based on amortized cost.
(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual loans.
(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES RECONCILIATION

Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. We calculate tangible book value per share by dividing tangible equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders’ equity by common shares outstanding at period end. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.

The efficiency ratio is a non-GAAP measure of expense control relative to recurring revenue. We calculate the efficiency ratio by dividing total noninterest expenses, excluding other real estate owned provision, as determined under GAAP, by net interest income and total noninterest income as determined under GAAP, but excluding net gains/(losses) on loans held for sale at lower of cost or fair value and excluding net gains on securities from this calculation, which we refer to below as recurring revenue. We believe that this provides a reasonable measure of core expenses relative to core revenue.

We believe these non-GAAP financial measures provide information that is important to investors and useful in understanding our financial position, results and ratios because our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titles measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share and efficiency ratio to the underlying GAAP numbers is set forth below.

(Dollars in thousands, except per share data)

  Three Months Ended 
  March 31,  Dec 31,  Sept 30,  June 30,  March 31, 
Tangible Book Value Per Share 2024  2023  2023  2023  2023 
Shareholders’ equity $582,379  $583,681  $558,956  $565,069  $554,958 
Less: Intangible assets, net  45,742   46,014   46,286   46,624   46,979 
Tangible equity $536,637  $537,667  $512,670  $518,445  $507,979 
Less: other comprehensive loss  (67,760)  (64,878)  (81,653)  (67,997)  (67,445)
Tangible equity excluding other comprehensive loss $604,397  $602,545  $594,323  $586,442  $575,424 
                
Period end shares outstanding  17,761,538   17,739,677   17,816,922   17,887,895   18,014,757 
Tangible book value per share $30.21  $30.31  $28.77  $28.98  $28.20 
Tangible book value per share excluding other comprehensive loss $34.03  $33.97  $33.36  $32.78  $31.94 
Book value per share  32.79   32.90   31.37   31.59   30.81 
                
Tangible Equity to Tangible Assets               
Total assets $6,408,553  $6,476,857  $6,521,581  $6,479,700  $6,480,018 
Less: Intangible assets, net  45,742   46,014   46,286   46,624   46,979 
Tangible assets $6,362,811  $6,430,843  $6,475,295  $6,433,076  $6,433,039 
Less: other comprehensive loss  (67,760)  (64,878)  (81,653)  (67,997)  (67,445)
Tangible assets excluding other comprehensive loss $6,430,571  $6,495,721  $6,556,948  $6,501,073  $6,500,484 
                
Tangible equity to tangible assets  8.43%  8.36%  7.92%  8.06%  7.90%
Tangible equity to tangible assets excluding other comprehensive loss  9.40%  9.28%  9.06%  9.02%  8.85%
Equity to assets  9.09%  9.01%  8.57%  8.72%  8.56%

(Dollars in thousands, except per share data)

  Three Months Ended 
  March 31,  Dec 31,  Sept 30,  June 30,  March 31, 
Return on Average Tangible Equity 2024  2023  2023  2023  2023 
Net income $8,631  $8,599  $8,755  $13,145  $18,355 
                
Average shareholders’ equity $581,003  $561,055  $565,153  $557,428  $543,861 
Less: Average intangible assets, net  45,903   46,167   46,468   46,828   47,189 
Average tangible equity $535,100  $514,888  $518,685  $510,600  $496,672 
                
Return on average tangible common equity  6.45%  6.68%  6.75%  10.30%  14.78%

(Dollars in thousands, except per share data)

  Three Months Ended 
  March 31,  Dec 31,  Sept 30,  June 30,  March 31, 
Efficiency Ratio 2024  2023  2023  2023  2023 
Net interest income $34,375  $36,675  $36,515  $38,921  $43,978 
Total other income  18,701   17,590   19,354   18,575   18,059 
Add:               
Fair value adjustment for CRA equity security  111   (585)  404   209   (209)
Less:               
Income from life insurance proceeds  (181)  —   —   —   — 
Total recurring revenue  53,006   53,680   56,273   57,705   61,828 
                
Operating expenses  40,041   37,616   37,413   37,692   35,574 
Less:               
Accelerated Expense for Retirement  —   —   —   1,665   300 
Branch Closure Expense  —   —   —   —   175 
Total operating expense  40,041   37,616   37,413   36,027   35,099 
                
Efficiency ratio  75.54%  70.07%  66.48%  62.43%  56.77%


FAQ

What were Peapack-Gladstone Financial 's (PGC) total revenue, net income, and diluted EPS for the first quarter of 2024?

PGC reported total revenue of $53.1 million, net income of $8.6 million, and diluted EPS of $0.48 for the first quarter of 2024.

How did Peapack-Gladstone Financial 's (PGC) return on average assets, return on average equity, and return on average tangible equity perform in Q1 2024?

In Q1 2024, PGC's return on average assets was 0.54%, return on average equity was 5.94%, and return on average tangible equity was 6.45%.

What was Peapack-Gladstone Financial 's (PGC) Tier 1 Leverage Ratio for Peapack-Gladstone Bank at March 31, 2024?

At March 31, 2024, Peapack-Gladstone Bank's Tier 1 Leverage Ratio stood at 11.02%.

Did Peapack-Gladstone Financial (PGC) declare any dividends in Q1 2024?

Yes, PGC declared a cash dividend of $0.05 per share payable on May 23, 2024, to shareholders of record on May 9, 2024.

How did Peapack-Gladstone Financial (PGC) manage its liquidity position in Q1 2024?

PGC's liquidity position remained stable, with balance sheet liquidity increasing to 12.1% of total assets or $776.8 million.

Stock PGC logo
Peapack-Gladstone Financial Corp

NASDAQ:PGC

PGC Rankings

#2996 Ranked by Market Cap
#1974 Ranked by Dividends

PGC Latest News

Dec 9, 2024
Peapack-Gladstone Bank Hires Paula Gambino as Senior Vice President
Nov 1, 2024
Peapack-Gladstone Bank to Rebrand as Peapack Private Bank & Trust
Oct 22, 2024
Peapack-Gladstone Financial Corporation Reports Third Quarter Results
Oct 9, 2024
Peapack-Gladstone Bank Hires Michael Anthony Guarino, Esq., CRCM as Senior Vice President
Sep 30, 2024
Peapack-Gladstone Financial Corporation and Peapack-Gladstone Bank’s Investment Grade Ratings Confirmed by Moody’s Investors Service

PGC Stock Data

565.72M
15.57M
11.45%
75.5%
2.82%
Banks - Regional
Commercial Banks, Nec
Link
United States of America
BEDMINSTER