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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.
Revenue by Segment
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.
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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