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Dec 31, 2019
Peapack-Gladstone Q4 2019 Earnings Report
Peapack-Gladstone's Q4 2019 performance was driven by solid wealth management and commercial banking activities.
Key Takeaways
Peapack-Gladstone Financial Corporation reported a record fourth quarter and full year results. The company's Q4 2019 revenue was $46.44 million, net income was $12.23 million, and diluted earnings per share was $0.64.
The Company recorded revenue of $46.44 million, pretax income of $17.79 million, net income of $12.23 million and diluted earnings per share (“EPS”) of $0.64.
Revenue increased 14% and pretax income increased 31%, reflecting favorable operating leverage during the period.
Wealth management fee income totaled $10.12 million for the quarter ended December 31, 2019, reflecting an increase of $1.6 million, or 18%, from the December 2018 quarter.
Total commercial and industrial (“C&I”) loans at December 31, 2019 were $1.78 billion, reflecting net growth of $378 million (27%) when compared to December 31, 2018.
Peapack-Gladstone
Peapack-Gladstone
Peapack-Gladstone Revenue by Segment
Revenue by Segment
Wealth Mgmt Fees Revenue
CapyFin.com Forward Guidance
The Company acknowledges the challenges the Bank and the industry face given the recent Fed rate decreases and the shape of the yield curve. The Company was pleased its reported net interest margin (“NIM”) did not decrease and its NIM, adjusted for prepayment premiums and excess liquidity only decreased marginally in the fourth quarter, after the three rate decreases during the second half of 2019. The Company believes its strategy will enable it to deliver higher quality earnings and increased shareholder value over time.
Positive Outlook
- NIM, adjusted for prepayment premiums and excess liquidity only decreased marginally in the fourth quarter
- Strategy results in a higher incidence of fee income - 33% of total revenue for the fourth quarter of 2019
- Strategy enable to deliver higher quality earnings
- Strategy enables increased shareholder value over time
- C&I momentum has continued to build and pipelines remain strong.
Challenges Ahead
- challenges the Bank and the industry face given the recent Fed rate decreases
- challenges the Bank and the industry face given the shape of the yield curve
- loan market continues to be extremely competitive from a structure/credit and a pricing perspective.
- models indicate additional slight compression in Q1 2020
- northeast market continues to be extremely competitive for deposits.