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Dec 31, 2021
Peapack-Gladstone Q4 2021 Earnings Report
Peapack-Gladstone reported strong results driven by growth in wealth management and commercial banking.
Key Takeaways
Peapack-Gladstone Financial Corporation reported a strong fourth quarter with total revenue of $56.17 million, net income of $14.86 million, and diluted earnings per share of $0.78. The company's performance was driven by its wealth management and commercial banking businesses, with increases in wealth management income, corporate advisory fees, and SBA income.
Total revenue increased to $56.17 million compared to $46.14 million for the three-month period ended December 31, 2020.
Net income reached $14.86 million, a significant increase from $3.03 million in the same period last year.
Diluted earnings per share rose to $0.78, substantially higher than the $0.16 reported for the three months ended December 31, 2020.
The Company authorized a new 5% stock repurchase program of up to 920,000 shares.
Peapack-Gladstone
Peapack-Gladstone
Peapack-Gladstone Revenue by Segment
Revenue by Segment
Capital Markets Revenue
CapyFin.com Forward Guidance
Peapack-Gladstone Financial Corporation anticipates continued growth in wealth management and commercial banking, supported by strong pipelines. The company is also positioned to benefit from potential interest rate increases.
Positive Outlook
- Robust loan pipelines to generate loan growth.
- Continued downward repricing of maturing CDs.
- An increase in target Fed funds (should that occur).
- Commercial loan pipelines continue to be strong going into the new year, standing at approximately $350 million with the likelihood of a first quarter closing
- We are well positioned for a rise in interest rates given that 40% of our loan portfolio reprices within three months and 52% within one-year.
Challenges Ahead
- Our ability to successfully grow our business and implement our strategic plan, including our ability to generate revenues to offset the increased personnel and other costs related to the strategic plan
- The impact of anticipated higher operating expenses in 2022 and beyond
- Our ability to successfully integrate wealth management firm acquisitions
- An unexpected decline in the economy, in particular in our New Jersey and New York market areas
- Declines in our net interest margin caused by the interest rate environment and/or our highly competitive market