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Sep 30, 2020
Peapack-Gladstone Q3 2020 Earnings Report
Reported increased revenue and net income compared to the same quarter last year.
Key Takeaways
Peapack-Gladstone Financial Corporation reported third quarter results with revenue of $52.36 million, net income of $13.55 million, and EPS of $0.71. The quarter benefited from increased net interest income and non-interest income, driven by PPP earnings and wealth management income, offset by higher operating expenses and loan loss provisions due to the COVID-19 pandemic. The company sold a significant portion of its PPP loans, generating a $7.4 million gain.
Revenue increased to $52.36 million, up from $44.51 million in the same quarter last year.
Net income rose to $13.55 million, compared to $12.23 million in the prior year quarter.
Earnings per share increased to $0.71, up from $0.63 in the same quarter last year.
Sale of $355 million in PPP loans generated a $7.4 million gain.
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
Peapack-Gladstone Financial Corporation's near-term priorities include managing credit risk, growing core businesses, managing costs, evaluating office space, accelerating digital enhancements, and growing fee income.
Positive Outlook
- Continued emphasis on the health and safety of our employees and clients.
- Grow and expand our core wealth management and commercial banking businesses.
- Prudently manage costs, capital and liquidity, but remain opportunistic for accretive wealth M&A and talent lift-outs.
- Evaluate office space and branch requirements.
- Accelerate digital enhancement initiatives to improve the client experience.
Challenges Ahead
- Actively manage credit risk associated with the COVID-19 pandemic.
- Potential impact of COVID-19 on business, operations, customers, allowance for loan losses and capital levels.
- Risk of increased loan delinquencies, problem assets, and foreclosures due to economic conditions.
- Potential decline in collateral values, especially real estate, leading to increased loan losses.
- Cyber security risks increased as the result of an increase in the number of employees working remotely.
Revenue & Expenses
Visualization of income flow from segment revenue to net income