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Sep 30, 2024
Peapack-Gladstone Q3 2024 Earnings Report
Peapack-Gladstone's Q3 2024 financial performance reflected deposit growth, increased net interest income, and a strengthened liquidity position.
Key Takeaways
Peapack-Gladstone Financial Corporation reported a net income of $7.6 million and EPS of $0.43 for Q3 2024. Deposits grew by $279 million, and loan balances increased by $51 million. The net interest margin improved to 2.34%.
Deposits grew by $279 million, reaching $5.9 billion, with an annualized growth rate of 20%.
Noninterest-bearing demand deposit balances increased by $130 million to $1.1 billion.
Outstanding loan balances increased by $51 million to $5.3 billion.
Net interest income increased by $2.6 million, or 8%, to $37.7 million, driven by an improved net interest margin of 2.34%.
Peapack-Gladstone
Peapack-Gladstone
Forward Guidance
Peapack-Gladstone expects expansion into the metro New York market to become accretive to earnings in early 2025 and is confident in its ability to manage through the current interest rate environment.
Positive Outlook
- Expansion into the metro New York market continues to deliver results ahead of plan.
- New York Commercial Private Banking initiative is currently managing over $730 million in customer relationship deposits.
- The company expects that its expansion will become accretive to earnings in early 2025.
- Moody's reaffirmed the company's investment grade ratings with a stable outlook.
- The company originated loans during the quarter that carried an average spread of more than 4% above cost of funds.
Challenges Ahead
- The company is aware of the headwinds created by the current interest rate environment.
- Total loans declined $116 million to $5.3 billion at September 30, 2024 from $5.4 billion at December 31, 2023.
- Nonperforming assets remained elevated at $80.5 million, or 1.18% of total assets, at September 30, 2024.
- The effective tax rate for the three months ended September 30, 2024 was 29.4%, as compared to 21.2% for the June 2024 quarter.
- The company's total operating expenses were $44.6 million for the third quarter of 2024, compared to $37.4 million for the quarter ended September 2023.