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Jun 30, 2024
Peapack-Gladstone Q2 2024 Earnings Report
Second quarter results reported with core relationship deposits growing and net interest margin improving.
Key Takeaways
Peapack-Gladstone Financial Corporation reported second quarter results with total revenue of $56.6 million, net income of $7.5 million, and diluted EPS of $0.42. Core relationship deposits grew significantly, enabling the repayment of short-term borrowings and an increase in the net interest margin.
Core relationship deposits grew by $354 million to $4.6 billion, representing an annualized rate of 33%.
All outstanding short-term borrowings of $119.5 million were repaid as of June 30, 2024.
Net interest margin increased to 2.25% for the quarter ended June 30, 2024, compared to 2.20% for the previous quarter.
Wealth Management fee income was $16.4 million in Q2 2024, amounting to 29% of total revenue for the quarter.
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 is aware of potential headwinds related to credit quality concerns and a challenging interest rate environment but remains focused on executing its strategy.
Positive Outlook
- Continued expansion of the unique private banking model offering a 'Single Point of Contact'.
- Positive reception by those they have had the opportunity to interact with.
- Focus on executing the strategy believed to deliver a successful outcome.
- Investments related to the strategic decision to expand into New York City are expected to position the company for future growth.
- Confidence that these expenses will ultimately translate to shareholder value.
Challenges Ahead
- Potential headwinds related to credit quality concerns.
- Challenging interest rate environment.
- Economic uncertainty leading to tighter underwriting guidelines.
- Decline in outstanding loan balances during 2024.
- Some credit issues have surfaced, presently isolated to a small number of specific multifamily sponsors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income