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Dec 31, 2020
Peapack-Gladstone Q4 2020 Earnings Report
Peapack-Gladstone's financial performance decreased in Q4 2020 due to increased operating expenses and provision for loan losses.
Key Takeaways
Peapack-Gladstone Financial Corporation reported a decrease in net income and EPS for the fourth quarter of 2020, compared to the same period last year. Total revenue decreased slightly, while operating expenses increased significantly. The quarter included increased net interest income and noninterest income, but these were offset by increased operating expenses and a higher provision for loan losses.
Total revenue was $46.14 million, a slight decrease from $46.44 million in the same quarter last year.
Net income was $3.03 million, a significant decrease from $12.23 million in the same quarter last year.
Diluted EPS was $0.16, a decrease from $0.64 in the same quarter last year.
The company authorized the repurchase of up to 948,735 shares, or approximately 5% of its outstanding shares, through March 31, 2022.
Peapack-Gladstone
Peapack-Gladstone
Peapack-Gladstone Revenue by Segment
Revenue by Segment
Wealth Mgmt Fees Revenue
CapyFin.comCapital Markets Revenue
CapyFin.com Forward Guidance
The Company's near-term priorities include actively deploying/managing capital and liquidity, growing and expanding core wealth management and commercial banking businesses, expanding net interest margin, continuing to assess the economic recovery, investing in digital enhancements, and growing fee income.
Positive Outlook
- Actively deploy/manage capital and liquidity by expanding our lending activities and execution on our recently announced stock repurchase program.
- Grow and expand our core wealth management and commercial banking businesses, including lift-outs, strategic hires, and acquisition of wealth management firms.
- Expand our net interest margin.
- Continue to assess the economic recovery; modify our allowance for credit losses as justified given the economic environment.
- Invest in digital enhancements to improve the client acquisition and experience.
Challenges Ahead
- Our inability to successfully grow our business and implement our strategic plan, including an inability to generate revenues to offset the increased personnel and other costs related to the strategic plan.
- The impact of anticipated higher operating expenses in 2021 and beyond.
- Our inability to successfully integrate wealth management firm acquisitions.
- Our inability to manage our growth.
- Our inability to successfully integrate our expanded employee base.
Revenue & Expenses
Visualization of income flow from segment revenue to net income