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Sep 30, 2022
Peapack-Gladstone Q3 2022 Earnings Report
Reported strong third quarter results, as net interest margin continued to expand.
Key Takeaways
Peapack-Gladstone Financial Corporation reported a strong third quarter in 2022, with total revenue of $61.91 million, net income of $20.13 million, and diluted earnings per share of $1.09.
Net interest margin improved by 15 basis points in Q3 2022 compared to Q2 2022 and improved 56 basis points when compared to Q3 2021.
During the third quarter of 2022, the Company successfully migrated $287 million of interest-bearing checking into noninterest-bearing demand deposits.
Wealth Management fee income of $12.9 million for Q3 2022 comprised 21% of total revenue for the quarter.
Repurchased 290,399 shares of Company stock for a total cost of $9.9 million during Q3 2022.
Peapack-Gladstone
Peapack-Gladstone
Forward Guidance
Company believes it will achieve modest loan growth for the remainder of 2022, resulting in mid to high single digit growth for all of 2022.
Positive Outlook
- Loan portfolio is positioned to continue to benefit from a rise in interest rates.
- New business pipeline is healthy.
- Company is focused on delivering excellent service and advice to our clients during these turbulent times.
- Expansion into the Life Insurance Premium Finance business will prove to be a safe and profitable business line that aligns with the Company's strategy.
- Tangible book value per share improved slightly during Q3 2022 to $26.10 at September 30, 2022.
Challenges Ahead
- Economic uncertainty and rising interest rates, Company believe loan demand will subside somewhat.
- Company have tightened our initial underwriting in anticipation of a potential economic downturn and higher rate environment.
- Market declines in 2022 further impacted the results in the September 2022 quarter, as the S&P decreased another 5% in Q3 2022 (and YTD down 25%).
- Economic challenges ahead
- Increased unrealized loss on AFS securities