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Peapack-Gladstone Q1 2025 Earnings Report
Peapack-Gladstone Financial Corporation reported its first quarter 2025 financial results, with an increase in net interest income and total revenue, alongside growth in loans and core relationship deposits.
Key Takeaways
Peapack-Gladstone Financial Corporation announced strong first quarter 2025 financial results, with loans growing by $236 million to $5.8 billion and core relationship deposit balances increasing by $177 million. Net interest income rose by 9% to $45.5 million, and total revenue increased by 4% to $64.36 million. Net income for the quarter was $7.6 million, with diluted EPS at $0.43.
Loans grew by $236 million to $5.8 billion, representing an annualized growth rate of 17%.
Core relationship deposit balances increased by $177 million, enhancing the Company's total liquidity position by 26% since January 1, 2024.
Net interest income increased by $3.6 million (9%) on a linked quarter basis to $45.5 million, driven by growth in average interest earning assets and improved net interest margin.
Wealth Management Division's AUM/AUA totaled $11.8 billion, with new business inflows of $341 million for Q1 2025.
Peapack-Gladstone
Peapack-Gladstone
Peapack-Gladstone Revenue by Segment
Revenue by Segment
Wealth Mgmt Fees Revenue
CapyFin.comCapital Markets Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
The Company anticipates continued growth and profitability driven by strategic investments in New York City expansion and ongoing efforts to enhance client experience. However, it acknowledges potential risks from economic downturns, interest rate fluctuations, and increased credit losses.
Positive Outlook
- Continued strong client inflows and healthy new business pipeline in Wealth Management.
- Successful expansion into the Metro New York market delivering results ahead of expectations.
- Ability to generate solid loan production with favorable spreads.
- Consistent improvement in net interest margin due to lower-cost core deposit relationships.
- Capital position remains strong and well above regulatory well-capitalized standards.
Challenges Ahead
- Potential for higher than expected increases in credit losses or delinquent loans.
- Adverse impact on margins and yields from inflation and changes in interest rates.
- Risk of decline in real estate values within market areas.
- Increased compliance costs due to legislative and regulatory actions.
- Potential for higher than expected FDIC insurance premiums.