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Mar 31, 2020
Peapack-Gladstone Q1 2020 Earnings Report
Peapack-Gladstone's financial performance decreased due to increased provision for loan losses, but revenue increased, driven by wealth management, commercial banking and capital markets activities.
Key Takeaways
Peapack-Gladstone Financial Corporation reported a decrease in net income and EPS for Q1 2020, primarily due to a $20.0 million provision for loan losses related to the COVID-19 pandemic. However, total revenue increased by 11% compared to the same period last year, driven by wealth management, commercial banking, and capital markets activities. The company also benefited from a $3.2 million tax benefit related to changes in tax net operating losses under the CARES Act.
Net income decreased due to a $20.0 million provision for loan losses related to the COVID-19 pandemic.
Total revenue increased by 11% compared to the same period last year, driven by wealth management, commercial banking, and capital markets activities.
The company completed its 960,000 share repurchase program, purchasing 220,222 shares in Q1 2020 at an average price of $29.45.
Deposits totaled $4.44 billion, reflecting net growth of $522 million (13%) when compared to March 31, 2019.
Revenue by Segment
Forward Guidance
Given the environment created by the COVID-19 pandemic, the company's near-term priorities include emphasis on the health and safety of our employees and clients, adapt the way in which we interact with clients and prospects to reflect the current environment, actively manage emerging credit risk associated with the environment caused by the COVID-19 pandemic, conservatively manage capital and liquidity in response to current market conditions, pursue new client opportunities presented by the PPP, and continue to grow and expand our wealth management and commercial banking businesses.
Positive Outlook
- Emphasis on the health and safety of our employees and clients.
- Adapt the way in which we interact with clients and prospects to reflect the current environment.
- Actively manage emerging credit risk associated with the environment caused by the COVID-19 pandemic.
- Conservatively manage capital and liquidity in response to current market conditions.
- Pursue new client opportunities presented by the PPP.
Challenges Ahead
- Demand for our products and services may decline, making it difficult to grow assets and income
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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