Peapack-Gladstone Financial Corporation (
NASDAQ Global
Select Market: PGC) (the "Company") announces its third
quarter 2024 financial results.
This earnings release should be read in
conjunction with the Company’s Q3 2024 Investor Update, a copy of
which is available on our website at
www.pgbank.com and via a current report on
Form 8-K on the website of the Securities and Exchange Commission
at www.sec.gov.
During the third quarter of 2024, deposits grew
$279 million, to $5.9 billion, which represents an annualized
growth rate of 20%. Nearly half of the deposit growth during the
quarter was attributed to an increase in noninterest-bearing demand
deposit balances which grew $130 million to $1.1 billion. Strong
core relationship growth throughout 2024 has allowed the Company to
repay all outstanding short-term borrowings and strengthen its
liquidity position. The Company also saw an increase in loan
demand during the third quarter. Outstanding loan balances
increased by $51 million to $5.3 billion as of September 30,
2024.
The Company recorded net income of $7.6 million
and diluted earnings per share (“EPS”) of $0.43 for the quarter
ended September 30, 2024 compared to net income of $7.5 million and
EPS of $0.42 for the quarter ended June 30, 2024.
Net interest income increased $2.6 million, or
8%, on a linked quarter basis to $37.7 million during the third
quarter of 2024 compared to $35.0 million in the second
quarter. The growth in net interest income was driven by
continued improvement in the net interest margin. The net interest
margin increased to 2.34% for the quarter ended September 30, 2024
compared to 2.25% for the quarter ended June 30, 2024 and 2.20% for
the quarter ended March 31, 2024.
Douglas L. Kennedy, President and CEO said, “Our
expansion into the metro New York market, leading with our ‘Single
Point of Contact’ private banking strategy, continues to deliver
results ahead of plan. Our third quarter results reflect this
success through strong core deposit growth, continued improvement
in net interest income and enhanced liquidity profile. Our New York
Commercial Private Banking initiative is currently managing over
$730 million in customer relationship deposits, which includes 31%
in noninterest-bearing demand deposits. We expect that our
expansion will become accretive to earnings in early 2025."
Mr. Kennedy also noted, “During the third
quarter of 2024, Moody's reaffirmed our investment grade ratings
with a stable outlook after a thorough analysis of our business
model and balance sheet. We are fully aware of the headwinds
created by the current interest rate environment, and we are
confident in our ability to manage through any of these issues that
may arise as we execute our private banking strategy, which over
time will deliver shareholder value."
The following are select highlights for the
period ended September 30, 2024:
Wealth Management:
- AUM/AUA in our Wealth Management Division totaled a record
$12.1 billion at September 30, 2024 compared to $10.9 billion at
December 31, 2023.
- Gross new business inflows for Q3 2024 totaled $140 million
($130 million managed).
- Wealth Management fee income was $15.2 million in Q3 2024,
which amounted to 27% of total revenue for the quarter.
Commercial Banking and Balance Sheet
Management:
- Year-to-date total deposits have increased by $661 million, to
$5.9 billion at September 30, 2024 compared to $5.3 billion at
December 31, 2023. The Company intentionally allowed $121 million
in high cost, non-core relationship deposits to roll off during the
first nine months of 2024. Excluding this deposit run-off, core
relationship deposits have grown by $782 million during 2024.
- The Company has repaid $404 million in short-term borrowings as
of September 30, 2024.
- Total loans declined $116 million to $5.3 billion at September
30, 2024 from $5.4 billion at December 31, 2023. However,
outstanding loans increased by $51 million during the three-month
period ended September 30, 2024 after experiencing contraction
during the first six months of 2024.
- Commercial and industrial lending (“C&I”) drove a majority
of the growth during the third quarter. C&I balances represent
42% of the total loan portfolio at September 30, 2024. A strong
pipeline of new business has been built heading into Q4.
- Fee income on unused commercial lines of credit totaled
$845,000 for Q3 2024.
- The net interest margin ("NIM") was 2.34% in Q3 2024, an
increase of 9 basis points compared to 2.25% at Q2 2024.
- Noninterest-bearing demand deposits increased by $130 million
during the third quarter of 2024 and represented 18% of total
deposits as of September 30, 2024.
Capital Management:
- Tangible book value per share increased 6% to $32.00 per share
at September 30, 2024 compared to $30.31 at December 31, 2023. Book
value per share increased 5% to $34.57 per share at September 30,
2024 compared to $32.90 at December 31, 2023.
- During the third quarter, the Company repurchased 100,000
shares of common stock at a total cost of $2.6 million, or an
average cost of $25.92 per share. During the first nine months of
2024, the Company repurchased 300,000 shares of common stock at a
cost of $7.2 million. For the full year 2023, the Company
repurchased 455,341 shares at a cost of $12.5 million.
- At September 30, 2024, the Tier 1 Leverage Ratio stood at
10.99% for Peapack-Gladstone Bank (the "Bank") and 9.33% for the
Company. The Common Equity Tier 1 Ratio (to Risk-Weighted Assets)
was 13.75% for the Bank and 11.67% for the Company at September 30,
2024. These ratios remain significantly above well capitalized
standards, as capital continues to benefit from net income
generation.
SUMMARY INCOME STATEMENT
DETAILS:
The following tables summarize specified
financial details for the periods shown.
Nine Months Ended September 30, 2024 Year
Compared to Nine Months Ended September 30, 2023
|
|
|
Nine Months Ended |
|
|
Nine Months Ended |
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
September 30, |
|
|
|
Increase/ |
|
| (Dollars in millions,
except per share data) (unaudited) |
|
2024 |
|
|
2023 |
|
|
|
(Decrease) |
|
| Net interest income |
|
$ |
107.10 |
|
|
$ |
119.41 |
|
|
|
$ |
(12.31 |
) |
|
|
(10 |
)% |
| Wealth management fee income |
|
|
45.98 |
|
|
|
41.99 |
|
|
|
|
3.99 |
|
|
|
10 |
|
| Capital markets activity |
|
|
2.30 |
|
|
|
2.45 |
|
|
|
|
(0.15 |
) |
|
|
(6 |
) |
| Other income |
|
|
10.91 |
|
|
|
11.55 |
|
|
|
|
(0.64 |
) |
|
|
(6 |
) |
| Total other income |
|
|
59.19 |
|
|
|
55.99 |
|
|
|
|
3.20 |
|
|
|
6 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Revenue |
|
|
166.29 |
|
|
|
175.40 |
|
|
|
|
(9.11 |
) |
|
|
(5 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
127.82 |
|
|
|
110.68 |
|
|
|
|
17.14 |
|
|
|
15 |
|
| Pretax income before provision
for credit losses |
|
|
38.47 |
|
|
|
64.72 |
|
|
|
|
(26.25 |
) |
|
|
(41 |
) |
| Provision for credit losses |
|
|
5.76 |
|
|
|
9.06 |
|
|
|
|
(3.30 |
) |
|
|
(36 |
) |
| Pretax income |
|
|
32.71 |
|
|
|
55.66 |
|
|
|
|
(22.95 |
) |
|
|
(41 |
) |
| Income tax expense |
|
|
8.96 |
|
|
|
15.40 |
|
|
|
|
(6.44 |
) |
|
|
(42 |
) |
| Net income |
|
$ |
23.75 |
|
|
$ |
40.26 |
|
|
|
$ |
(16.51 |
) |
|
|
(41 |
)% |
| Diluted EPS |
|
$ |
1.34 |
|
|
$ |
2.23 |
|
|
|
$ |
(0.89 |
) |
|
|
(40 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets |
|
|
0.49 |
% |
|
|
0.84 |
% |
|
|
|
(0.35 |
) |
|
|
|
| Return on average equity |
|
|
5.42 |
% |
|
|
9.66 |
% |
|
|
|
(4.24 |
) |
|
|
|
September 2024 Quarter Compared to Prior
Year Quarter
| |
|
Three Months Ended |
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
| |
|
September 30, |
|
|
|
September 30, |
|
|
Increase/ |
|
| (Dollars in millions,
except per share data) (unaudited) |
|
2024 |
|
|
|
2023 |
|
|
(Decrease) |
|
| Net interest income |
|
$ |
37.68 |
|
|
|
$ |
36.52 |
|
|
$ |
1.16 |
|
|
|
3 |
% |
| Wealth management fee income |
|
|
15.15 |
|
|
|
|
13.98 |
|
|
|
1.17 |
|
|
|
8 |
|
| Capital markets activity |
|
|
0.44 |
|
|
|
|
0.61 |
|
|
|
(0.17 |
) |
|
|
(28 |
) |
| Other income |
|
|
3.35 |
|
|
|
|
4.76 |
|
|
|
(1.41 |
) |
|
|
(30 |
) |
| Total other income |
|
|
18.94 |
|
|
|
|
19.35 |
|
|
|
(0.41 |
) |
|
|
(2 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Revenue |
|
|
56.62 |
|
|
|
|
55.87 |
|
|
|
0.75 |
|
|
|
1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
44.65 |
|
|
|
|
37.41 |
|
|
|
7.24 |
|
|
|
19 |
|
| Pretax income before provision
for credit losses |
|
|
11.97 |
|
|
|
|
18.46 |
|
|
|
(6.49 |
) |
|
|
(35 |
) |
| Provision for credit losses |
|
|
1.22 |
|
|
|
|
5.86 |
|
|
|
(4.64 |
) |
|
|
(79 |
) |
| Pretax income |
|
|
10.75 |
|
|
|
|
12.60 |
|
|
|
(1.85 |
) |
|
|
(15 |
) |
| Income tax expense |
|
|
3.16 |
|
|
|
|
3.84 |
|
|
|
(0.68 |
) |
|
|
(18 |
) |
| Net income |
|
$ |
7.59 |
|
|
|
$ |
8.76 |
|
|
$ |
(1.17 |
) |
|
|
(13 |
)% |
| Diluted EPS |
|
$ |
0.43 |
|
|
|
$ |
0.49 |
|
|
$ |
(0.06 |
) |
|
|
(12 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets
annualized |
|
|
0.46 |
% |
|
|
|
0.54 |
% |
|
|
(0.08 |
) |
|
|
|
| Return on average equity
annualized |
|
|
5.12 |
% |
|
|
|
6.20 |
% |
|
|
(1.08 |
) |
|
|
|
September 2024 Quarter Compared to Linked
Quarter
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
June 30, |
|
|
|
Increase/ |
|
| (Dollars in millions,
except per share data) (unaudited) |
|
2024 |
|
|
2024 |
|
|
|
(Decrease) |
|
| Net interest income |
|
$ |
37.68 |
|
|
$ |
35.04 |
|
|
|
$ |
2.64 |
|
|
|
8 |
% |
| Wealth management fee income |
|
|
15.15 |
|
|
|
16.42 |
|
|
|
|
(1.27 |
) |
|
|
(8 |
) |
| Capital markets activity |
|
|
0.44 |
|
|
|
0.59 |
|
|
|
|
(0.15 |
) |
|
|
(25 |
) |
| Other income |
|
|
3.35 |
|
|
|
4.55 |
|
|
|
|
(1.20 |
) |
|
|
(26 |
) |
| Total other income |
|
|
18.94 |
|
|
|
21.56 |
|
|
|
|
(2.62 |
) |
|
|
(12 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Revenue |
|
|
56.62 |
|
|
|
56.60 |
|
|
|
|
0.02 |
|
|
|
0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
44.65 |
|
|
|
43.13 |
|
|
|
|
1.52 |
|
|
|
4 |
|
| Pretax income before provision
for credit losses |
|
|
11.97 |
|
|
|
13.47 |
|
|
|
|
(1.50 |
) |
|
|
(11 |
) |
| Provision for credit losses |
|
|
1.22 |
|
|
|
3.91 |
|
|
|
|
(2.69 |
) |
|
|
(69 |
) |
| Pretax income |
|
|
10.75 |
|
|
|
9.56 |
|
|
|
|
1.19 |
|
|
|
12 |
|
| Income tax expense |
|
|
3.16 |
|
|
|
2.03 |
|
|
|
|
1.13 |
|
|
|
56 |
|
| Net income |
|
$ |
7.59 |
|
|
$ |
7.53 |
|
|
|
$ |
0.06 |
|
|
|
1 |
% |
| Diluted EPS |
|
$ |
0.43 |
|
|
$ |
0.42 |
|
|
|
$ |
0.01 |
|
|
|
2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets
annualized |
|
|
0.46 |
% |
|
|
0.47 |
% |
|
|
|
(0.01 |
) |
|
|
|
| Return on average equity
annualized |
|
|
5.12 |
% |
|
|
5.22 |
% |
|
|
|
(0.10 |
) |
|
|
|
SUPPLEMENTAL QUARTERLY
DETAILS:
Wealth Management
AUM/AUA in the Bank’s Wealth Management Division
reached a record high of $12.1 billion at September 30, 2024
compared to $10.9 billion at December 31, 2023. For the
September 2024 quarter, the Wealth Management Team generated $15.2
million in fee income, compared to $16.4 million for the June 30,
2024 quarter and $14.0 million for the September 2023 quarter. The
equity markets continued to improve during 2024, contributing to
the increase in AUM/AUA along with gross new business inflows of
$547 million.
John Babcock, President of the Bank's Wealth
Management Division, noted, “Q3 2024 saw continued strong client
inflows totaling new accounts and client additions of $140 million
($130 million managed). Our new business pipeline is healthy, and
we continue to remain focused on delivering excellent service and
advice to our clients. Our highly skilled wealth management
professionals, our fiduciary powers and expertise, our financial
planning capabilities combined with our high-touch client service
model distinguishes us in our market and continues to drive our
growth and success.”
Loans / Commercial Banking
Total loans declined $116 million, or 2%, to
$5.3 billion at September 30, 2024 compared to December 31, 2023,
primarily driven by repayments, maturities and tighter lending
standards. Most of the decline in outstanding loans during the
first nine months of 2024 was related to reductions in multifamily
and commercial real estate balances. Total C&I loans and
leases at September 30, 2024 were $2.2 billion or 42% of the total
loan portfolio.
Mr. Kennedy noted, “Based on a more constructive
economic backdrop, we recently began building our pipeline of
C&I loans and leases and believe that loan demand will continue
to show improvement as we look forward to coming periods ahead. We
are proud to have built a leading middle market commercial banking
franchise, as evidenced by our C&I Portfolio, Treasury
Management services, Corporate Advisory and SBA businesses. We
anticipate these business lines fit perfectly with our private
banking business model and will generate solid production going
forward. During the quarter we originated loans that carried an
average spread of more than 4% above our cost of funds.
Having this capability will help us in the near term as the real
estate market adjusts to changing market conditions.”
Net Interest Income (NII)/Net Interest
Margin (NIM)
The Company’s NII of $37.7 million and NIM of
2.34% for Q3 2024 increased $2.6 million and 9 basis points from
NII of $35.0 million and NIM of 2.25% for the linked quarter (Q2
2024), and increased $1.2 million and 6 basis points from NII of
$36.5 million and NIM of 2.28% compared to the prior year period
(Q3 2023). Our single point of contact private banking
strategy continues to deliver lower cost core deposit
relationships. Noninterest-bearing checking deposits increased by
$130 million during the third quarter of 2024, which also drove the
improvement in NIM.
Funding / Liquidity / Interest Rate Risk
Management
Total deposits increased $661 million to $5.9
billion at September 30, 2024 from $5.3 billion at December 31,
2023. The change in deposit balances included a decline in
brokered deposits and non-core deposit relationships. The
overall growth in deposits has strengthened balance sheet liquidity
and reduced reliance on outside borrowings and other non-core
funding sources. There were no outstanding overnight borrowings at
September 30, 2024, compared to $404 million at December 31,
2023.
At September 30, 2024, the Company’s balance
sheet liquidity (investments available for sale, interest-earning
deposits and cash) totaled $1.2 billion, or 18% of assets. The
Company maintains additional liquidity resources of approximately
$3.0 billion through secured available borrowing facilities with
the Federal Home Loan Bank and the Federal Reserve Discount
Window. The available funding from the Federal Home Loan Bank
and the Federal Reserve are secured by the Company’s loan and
investment portfolios. The Company's total on and off-balance sheet
liquidity totaled $4.2 billion, which amounts to 293% of the total
uninsured/uncollateralized deposits currently on the Company’s
balance sheet.
Income from Capital Markets
Activities
Noninterest income from Capital Markets
activities (detailed below) totaled $435,000 for the September 2024
quarter compared to $586,000 for the June 2024 quarter and $613,000
for the September 2023 quarter.
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
|
September 30, |
|
|
June 30, |
|
|
September 30, |
|
| (Dollars in thousands,
except per share data) (unaudited) |
|
2024 |
|
|
2024 |
|
|
2023 |
|
| Gain on loans held for sale at
fair value (Mortgage banking) |
|
$ |
15 |
|
|
$ |
34 |
|
|
$ |
37 |
|
| Gain on sale of SBA loans |
|
|
365 |
|
|
|
449 |
|
|
|
491 |
|
| Corporate advisory fee
income |
|
|
55 |
|
|
|
103 |
|
|
|
85 |
|
| Total capital markets
activity |
|
$ |
435 |
|
|
$ |
586 |
|
|
$ |
613 |
|
Other Noninterest Income (other than
Wealth Management Fee Income and Income from Capital Markets
Activities)
Other noninterest income was $3.4 million for Q3
2024 compared to $4.6 million for Q2 2024 and $4.8 million for Q3
2023. Q3 2024 included $225,000 of income recorded by the Equipment
Finance Division related to equipment transfers to lessees upon the
termination of leases, compared to $1.6 million in Q2 2024 and $2.3
million in Q3 2023, respectively. Additionally, Q3 2024 included
$845,000 of unused line fees compared to $786,000 for Q2 2024 and
$794,000 for Q3 2023.
Operating Expenses
The Company’s total operating expenses were
$44.6 million for the third quarter of 2024, compared to $43.1
million for the second quarter of 2024 and $37.4 million for the
quarter ended September 2023. The third quarter of 2024 reflects
the full run rate of expenses associated with the Company’s
expansion into New York City.
Mr. Kennedy noted, “We continue to make
investments related to our strategic decision to expand into New
York City and are confident that these investments will position us
for future growth and profitability, which will ultimately
translate to increased shareholder value. We continue to look
for opportunities to create efficiencies and manage expenses
throughout the Company while investing in enhancements to the
client experience."
Income Taxes
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 and 30.5% for the quarter ended September 30,
2023. The June 2024 quarter included a one-time benefit
related to the Company’s deferred tax assets associated with a
surtax imposed by the State of New Jersey in June 2024. Excluding
such benefit, the effective tax rate for the June 2024 quarter
would have been approximately 29.0%.
Asset Quality / Provision for Credit Losses
Nonperforming assets remained elevated at $80.5
million, or 1.18% of total assets, at September 30, 2024, as
compared to $82.1 million, or 1.26% of total assets, at June 30,
2024. Loans past due 30 to 89 days and still accruing were $31.4
million, or 0.59% of total loans, at September 30, 2024 compared to
$34.7 million, or 0.66% of total loans, at June 30, 2024.
Criticized and classified loans totaled $261.1 million at September
30, 2024, reflecting a decrease of $8.0 million as compared to
$269.1 million at June 30, 2024. The Company currently has no loans
or leases on deferral and still accruing.
For the quarter ended September 30, 2024, the
Company’s provision for credit losses was $1.2 million compared to
$3.9 million for the June 2024 quarter and $5.9 million for the
September 2023 quarter. The provision for credit losses in the
third quarter of 2024 was driven by overall slower loan growth
along with additional specific reserves related to certain isolated
credits, of $1.8 million partially offset by a recovery of
approximately $2.1 million. The higher provision for the
second quarter of 2024 was primarily driven by charge-offs related
to the sale of two problem loans, which were approaching
foreclosure and transferred to other real estate owned.
At September 30, 2024, the allowance for credit
losses was $71.3 million (1.34% of total loans), compared to $68.0
million (1.29% of total loans) at June 30, 2024, and $68.6 million
(1.25% of total loans) at September 30, 2023.
Mr. Kennedy noted, “We are starting to see some
of our asset quality metrics improve, which supports our position
that most of our credit issues are isolated to a small number of
specific borrowers and sponsors. We continue to work through each
credit one at a time while building up reserve coverage. All of the
multifamily loans that matured or repriced in 2024 have continued
to make their scheduled payments despite the higher rate
environment."
Capital
The Company’s capital position increased during
the third quarter of 2024 due to net income of $7.6 million, which
was partially offset by the repurchase of 100,000 shares through
the Company's repurchase program at a total cost of $2.6 million
and the quarterly dividend payment totaling $882,000. Additionally,
during the third quarter of 2024, capital benefited from a
reduction in accumulated other comprehensive losses of $13.5
million, net of tax. The total accumulated other comprehensive loss
declined to $54.8 million as of September 30, 2024 ($57.6 million
loss related to the available for sale securities portfolio
partially offset by a $2.8 million gain on the cash flow
hedges).
Tangible book value per share increased 6% to
$32.00 at September 30, 2024 from $30.31 at December 31, 2023.
Tangible book value per share is a non-GAAP financial
measure. See the reconciliation tables included in this
release for further detail. Book value per share increased 5% to
$34.57 per share at September 30, 2024 compared to $32.90 at
December 31, 2023. The Company’s and Bank’s regulatory capital
ratios as of September 30, 2024 remain strong and reflect increases
from December 31, 2023 levels. Where applicable, such ratios remain
well above regulatory well capitalized standards.
The Company employs quarterly capital stress
testing modeling of an adverse case and severely adverse case. In
the most recently completed stress test (as of June 30, 2024),
under the severely adverse case, and no growth scenario, the Bank
remains well capitalized over a two-year stress period.
On September 25, 2024, the Company declared a
cash dividend of $0.05 per share payable on November 22, 2024 to
shareholders of record on November 7, 2024.
ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a New
Jersey based bank holding company with total assets of $6.8 billion
and assets under management/administration of $12.1 billion as of
September 30, 2024. Founded in 1921, Peapack-Gladstone Bank
is a commercial bank that provides Private Banking customized
solutions through its wealth management, commercial and retail
solutions, including residential lending and online platforms, to
businesses, not for profits and consumers. Peapack Private,
the bank’s wealth management division, offers comprehensive
financial, tax, fiduciary and investment advice and solutions to
individuals, families, privately-held businesses, family offices
and not-for-profit organizations, which help them to establish,
maintain and expand their legacy. Together, Peapack-Gladstone
Bank and Peapack Private offer an unparalleled commitment to client
service. Visit www.pgbank.com and www.peapackprivate.com for more
information.
FORWARD-LOOKING STATEMENTS
The foregoing may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements are not historical facts and
include expressions about management’s confidence and strategies
and management’s expectations about new and existing programs and
products, investments, relationships, opportunities and market
conditions. These statements may be identified by such
forward-looking terminology as “expect,” “look,” “believe,”
“anticipate,” “may” or similar statements or variations of such
terms. Actual results may differ materially from such
forward-looking statements. Factors that may cause results to
differ materially from such forward-looking statements include, but
are not limited to:
- 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 2024 and beyond;
- our ability to successfully
integrate wealth management firm and team acquisitions;
- our ability to successfully
integrate our expanded employee base;
- an unexpected decline in the
economy, in particular in our New Jersey and New York market areas,
including potential recessionary conditions;
- declines in our net interest margin
caused by the interest rate environment and/or our highly
competitive market;
- declines in the value in our
investment portfolio;
- impact from a pandemic event on our
business, operations, customers, allowance for credit losses and
capital levels;
- higher than expected increases in
our allowance for credit losses;
- higher than expected increases in
credit losses or in the level of delinquent, nonperforming,
classified and criticized loans or charge-offs;
- inflation and changes in interest
rates, which may adversely impact our margins and yields, reduce
the fair value of our financial instruments, reduce our loan
originations and lead to higher operating costs;
- decline in real estate values
within our market areas;
- legislative and regulatory actions
(including the impact of the Dodd-Frank Wall Street Reform and
Consumer Protection Act, Basel III and related regulations) that
may result in increased compliance costs;
- successful cyberattacks against our
IT infrastructure and that of our IT and third-party
providers;
- higher than expected FDIC insurance
premiums;
- adverse weather conditions;
- the current or anticipated impact
of military conflict, terrorism or other geopolitical events;
- our inability to successfully
generate new business in new geographic markets, including our
expansion into New York City;
- a reduction in our lower-cost
funding sources;
- changes in liquidity, including the
size and composition of our deposit portfolio, including the
percentage of uninsured deposits in the portfolio;
- our inability to adapt to
technological changes;
- claims and litigation pertaining to
fiduciary responsibility, environmental laws and other
matters;
- our inability to retain key
employees;
- demands for loans and deposits in
our market areas;
- adverse changes in securities
markets;
- changes in New York City rent
regulation law;
- changes in governmental regulation,
including, but not limited to, any increase in FDIC insurance
premiums and changes in the monetary policies of the U.S. Treasury
and the Board of Governors of the Federal Reserve System;
- changes in accounting policies and
practices; and/or
- other unexpected material adverse
changes in our financial condition, operations or earnings.
A discussion of these and other factors that
could affect our results is included in our SEC filings, including
our Annual Report on Form 10-K for the year ended December 31,
2023. Except as may be required by the applicable law or
regulation, we undertake no duty to update any forward-looking
statement to conform the statement to actual results or changes in
the Company’s expectations.
Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee
future results, levels of activity, performance or
achievements.
Contact:Frank A. Cavallaro,
SEVP and CFOPeapack-Gladstone Financial CorporationT:
908-306-8933
(Tables to follow)
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED CONSOLIDATED FINANCIAL
DATA(Dollars in Thousands, except per share
data) (Unaudited)
| |
|
For the Three Months Ended |
|
| |
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
| |
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
| Income Statement
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
$ |
83,203 |
|
|
$ |
79,238 |
|
|
$ |
79,194 |
|
|
$ |
80,178 |
|
|
$ |
78,489 |
|
| Interest expense |
|
|
45,522 |
|
|
|
44,196 |
|
|
|
44,819 |
|
|
|
43,503 |
|
|
|
41,974 |
|
|
Net interest income |
|
|
37,681 |
|
|
|
35,042 |
|
|
|
34,375 |
|
|
|
36,675 |
|
|
|
36,515 |
|
| Wealth management fee income |
|
|
15,150 |
|
|
|
16,419 |
|
|
|
14,407 |
|
|
|
13,758 |
|
|
|
13,975 |
|
| Service charges and fees |
|
|
1,327 |
|
|
|
1,345 |
|
|
|
1,322 |
|
|
|
1,255 |
|
|
|
1,319 |
|
| Bank owned life insurance |
|
|
390 |
|
|
|
328 |
|
|
|
503 |
|
|
|
357 |
|
|
|
310 |
|
| Gain on loans held for sale at
fair value (Mortgage banking) |
|
|
15 |
|
|
|
34 |
|
|
|
56 |
|
|
|
18 |
|
|
|
37 |
|
| Gain on loans held for sale at
lower of cost or fair value |
|
|
— |
|
|
|
23 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Gain on sale of SBA loans |
|
|
365 |
|
|
|
449 |
|
|
|
400 |
|
|
|
239 |
|
|
|
491 |
|
| Corporate advisory fee
income |
|
|
55 |
|
|
|
103 |
|
|
|
818 |
|
|
|
39 |
|
|
|
85 |
|
| Other income |
|
|
1,162 |
|
|
|
2,938 |
|
|
|
1,306 |
|
|
|
1,339 |
|
|
|
3,541 |
|
| Fair value adjustment for CRA
equity security |
|
|
474 |
|
|
|
(84 |
) |
|
|
(111 |
) |
|
|
585 |
|
|
|
(404 |
) |
|
Total other income |
|
|
18,938 |
|
|
|
21,555 |
|
|
|
18,701 |
|
|
|
17,590 |
|
|
|
19,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
56,619 |
|
|
|
56,597 |
|
|
|
53,076 |
|
|
|
54,265 |
|
|
|
55,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
|
31,050 |
|
|
|
29,884 |
|
|
|
28,476 |
|
|
|
24,320 |
|
|
|
25,264 |
|
| Premises and equipment |
|
|
5,633 |
|
|
|
5,776 |
|
|
|
5,081 |
|
|
|
5,416 |
|
|
|
5,214 |
|
| FDIC insurance expense |
|
|
870 |
|
|
|
870 |
|
|
|
945 |
|
|
|
765 |
|
|
|
741 |
|
| Other expenses |
|
|
7,096 |
|
|
|
6,596 |
|
|
|
5,539 |
|
|
|
7,115 |
|
|
|
6,194 |
|
|
Total operating expenses |
|
|
44,649 |
|
|
|
43,126 |
|
|
|
40,041 |
|
|
|
37,616 |
|
|
|
37,413 |
|
| Pretax income before provision
for credit losses |
|
|
11,970 |
|
|
|
13,471 |
|
|
|
13,035 |
|
|
|
16,649 |
|
|
|
18,456 |
|
| Provision for credit losses |
|
|
1,224 |
|
|
|
3,911 |
|
|
|
627 |
|
|
|
5,026 |
|
|
|
5,856 |
|
| Income before income taxes |
|
|
10,746 |
|
|
|
9,560 |
|
|
|
12,408 |
|
|
|
11,623 |
|
|
|
12,600 |
|
| Income tax expense |
|
|
3,159 |
|
|
|
2,030 |
|
|
|
3,777 |
|
|
|
3,024 |
|
|
|
3,845 |
|
| Net income |
|
$ |
7,587 |
|
|
$ |
7,530 |
|
|
$ |
8,631 |
|
|
$ |
8,599 |
|
|
$ |
8,755 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per Common Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share (basic) |
|
$ |
0.43 |
|
|
$ |
0.42 |
|
|
$ |
0.49 |
|
|
$ |
0.48 |
|
|
$ |
0.49 |
|
| Earnings per share (diluted) |
|
|
0.43 |
|
|
|
0.42 |
|
|
|
0.48 |
|
|
|
0.48 |
|
|
|
0.49 |
|
| Weighted average number
of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
17,616,046 |
|
|
|
17,747,070 |
|
|
|
17,711,639 |
|
|
|
17,770,158 |
|
|
|
17,856,961 |
|
| Diluted |
|
|
17,700,042 |
|
|
|
17,792,296 |
|
|
|
17,805,347 |
|
|
|
17,961,400 |
|
|
|
18,010,127 |
|
| Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets
annualized (ROAA) |
|
|
0.46 |
% |
|
|
0.47 |
% |
|
|
0.54 |
% |
|
|
0.53 |
% |
|
|
0.54 |
% |
| Return on average equity
annualized (ROAE) |
|
|
5.12 |
% |
|
|
5.22 |
% |
|
|
5.94 |
% |
|
|
6.13 |
% |
|
|
6.20 |
% |
| Return on average tangible equity
annualized (ROATCE) (A) |
|
|
5.54 |
% |
|
|
5.67 |
% |
|
|
6.45 |
% |
|
|
6.68 |
% |
|
|
6.75 |
% |
| Net interest margin
(tax-equivalent basis) |
|
|
2.34 |
% |
|
|
2.25 |
% |
|
|
2.20 |
% |
|
|
2.29 |
% |
|
|
2.28 |
% |
| GAAP efficiency ratio (B) |
|
|
78.86 |
% |
|
|
76.20 |
% |
|
|
75.44 |
% |
|
|
69.32 |
% |
|
|
66.97 |
% |
| Operating expenses / average
assets annualized |
|
|
2.73 |
% |
|
|
2.70 |
% |
|
|
2.51 |
% |
|
|
2.33 |
% |
|
|
2.31 |
% |
(A) Return on average tangible equity is
calculated by dividing tangible equity by annualized net income.
See Non-GAAP financial measures reconciliation included in these
tables.(B) Calculated as total operating expenses as a percentage
of total revenue. For Non-GAAP efficiency ratio, see the Non-GAAP
financial measures reconciliation included in these tables.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED CONSOLIDATED FINANCIAL
DATA(Dollars in Thousands, except per share
data) (Unaudited)
| |
|
For the Nine Months Ended |
|
|
|
|
|
|
|
| |
|
September 30, |
|
|
Change |
|
| |
|
2024 |
|
|
2023 |
|
|
$ |
|
|
% |
|
| Income Statement
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
$ |
241,635 |
|
|
$ |
223,832 |
|
|
$ |
17,803 |
|
|
|
8 |
% |
| Interest expense |
|
|
134,537 |
|
|
|
104,418 |
|
|
|
30,119 |
|
|
|
29 |
% |
|
Net interest income |
|
|
107,098 |
|
|
|
119,414 |
|
|
|
(12,316 |
) |
|
|
-10 |
% |
| Wealth management fee income |
|
|
45,976 |
|
|
|
41,989 |
|
|
|
3,987 |
|
|
|
9 |
% |
| Service charges and fees |
|
|
3,994 |
|
|
|
3,897 |
|
|
|
97 |
|
|
|
2 |
% |
| Bank owned life insurance |
|
|
1,221 |
|
|
|
912 |
|
|
|
309 |
|
|
|
34 |
% |
| Gain on loans held for sale at
fair value (Mortgage banking) |
|
|
105 |
|
|
|
73 |
|
|
|
32 |
|
|
|
44 |
% |
| Gain on loans held for sale at
lower of cost or fair value |
|
|
23 |
|
|
|
— |
|
|
|
23 |
|
|
N/A |
|
| Gain on sale of SBA loans |
|
|
1,214 |
|
|
|
2,194 |
|
|
|
(980 |
) |
|
|
-45 |
% |
| Corporate advisory fee
income |
|
|
976 |
|
|
|
180 |
|
|
|
796 |
|
|
|
442 |
% |
| Other income |
|
|
5,406 |
|
|
|
7,147 |
|
|
|
(1,741 |
) |
|
|
-24 |
% |
| Fair value adjustment for CRA
equity security |
|
|
279 |
|
|
|
(404 |
) |
|
|
683 |
|
|
|
-169 |
% |
|
Total other income |
|
|
59,194 |
|
|
|
55,988 |
|
|
|
3,206 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
166,292 |
|
|
|
175,402 |
|
|
|
(9,110 |
) |
|
|
-5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits |
|
|
89,410 |
|
|
|
76,204 |
|
|
|
13,206 |
|
|
|
17 |
% |
| Premises and equipment |
|
|
16,490 |
|
|
|
14,317 |
|
|
|
2,173 |
|
|
|
15 |
% |
| FDIC insurance expense |
|
|
2,685 |
|
|
|
2,181 |
|
|
|
504 |
|
|
|
23 |
% |
| Other expenses |
|
|
19,231 |
|
|
|
17,977 |
|
|
|
1,254 |
|
|
|
7 |
% |
|
Total operating expenses |
|
|
127,816 |
|
|
|
110,679 |
|
|
|
17,137 |
|
|
|
15 |
% |
| Pretax income before provision
for credit losses |
|
|
38,476 |
|
|
|
64,723 |
|
|
|
(26,247 |
) |
|
|
-41 |
% |
| Provision for credit losses |
|
|
5,762 |
|
|
|
9,065 |
|
|
|
(3,303 |
) |
|
|
-36 |
% |
| Income before income taxes |
|
|
32,714 |
|
|
|
55,658 |
|
|
|
(22,944 |
) |
|
|
-41 |
% |
| Income tax expense |
|
|
8,966 |
|
|
|
15,403 |
|
|
|
(6,437 |
) |
|
|
-42 |
% |
| Net income |
|
$ |
23,748 |
|
|
$ |
40,255 |
|
|
$ |
(16,507 |
) |
|
|
-41 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Per Common Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share (basic) |
|
$ |
1.34 |
|
|
$ |
2.25 |
|
|
$ |
(0.91 |
) |
|
|
-40 |
% |
| Earnings per share (diluted) |
|
|
1.34 |
|
|
|
2.23 |
|
|
|
(0.89 |
) |
|
|
-40 |
% |
| Weighted average number
of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
17,691,309 |
|
|
|
17,876,316 |
|
|
|
(185,007 |
) |
|
|
-1 |
% |
| Diluted |
|
|
17,746,560 |
|
|
|
18,091,524 |
|
|
|
(344,964 |
) |
|
|
-2 |
% |
| Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets
(ROAA) |
|
|
0.49 |
% |
|
|
0.84 |
% |
|
|
(0.35 |
)% |
|
|
-41 |
% |
| Return on average equity
(ROAE) |
|
|
5.42 |
% |
|
|
9.66 |
% |
|
|
(4.24 |
)% |
|
|
-44 |
% |
| Return on average tangible equity
(ROATCE) (A) |
|
|
5.88 |
% |
|
|
10.55 |
% |
|
|
(4.67 |
)% |
|
|
-44 |
% |
| Net interest margin
(tax-equivalent basis) |
|
|
2.26 |
% |
|
|
2.54 |
% |
|
|
(0.28 |
)% |
|
|
-11 |
% |
| GAAP efficiency ratio (B) |
|
|
76.86 |
% |
|
|
63.10 |
% |
|
|
13.76 |
% |
|
|
22 |
% |
| Operating expenses / average
assets |
|
|
2.65 |
% |
|
|
2.31 |
% |
|
|
0.34 |
% |
|
|
15 |
% |
(A) Return on average tangible equity is
calculated by dividing tangible equity by annualized net
income. See Non-GAAP financial measures reconciliation
included in these tables.(B) Calculated as total operating expenses
as a percentage of total revenue. For Non-GAAP efficiency
ratio, see the Non-GAAP financial measures reconciliation included
in these tables.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONCONSOLIDATED STATEMENTS OF
CONDITION(Dollars in
Thousands)(Unaudited)
| |
|
As of |
|
| |
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
| |
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due from banks |
|
$ |
8,129 |
|
|
$ |
5,586 |
|
|
$ |
5,769 |
|
|
$ |
5,887 |
|
|
$ |
7,400 |
|
| Federal funds sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Interest-earning deposits |
|
|
484,529 |
|
|
|
310,143 |
|
|
|
189,069 |
|
|
|
181,784 |
|
|
|
180,469 |
|
|
Total cash and cash equivalents |
|
|
492,658 |
|
|
|
315,729 |
|
|
|
194,838 |
|
|
|
187,671 |
|
|
|
187,869 |
|
| Securities available for
sale |
|
|
682,713 |
|
|
|
591,884 |
|
|
|
550,870 |
|
|
|
550,617 |
|
|
|
521,005 |
|
| Securities held to maturity |
|
|
103,158 |
|
|
|
105,013 |
|
|
|
106,498 |
|
|
|
107,755 |
|
|
|
108,940 |
|
| CRA equity security, at fair
value |
|
|
13,445 |
|
|
|
12,971 |
|
|
|
13,055 |
|
|
|
13,166 |
|
|
|
12,581 |
|
| FHLB and FRB stock, at cost
(A) |
|
|
12,459 |
|
|
|
12,478 |
|
|
|
18,079 |
|
|
|
31,044 |
|
|
|
34,158 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Residential mortgage |
|
|
591,374 |
|
|
|
579,057 |
|
|
|
581,426 |
|
|
|
578,427 |
|
|
|
585,295 |
|
| Multifamily mortgage |
|
|
1,784,861 |
|
|
|
1,796,687 |
|
|
|
1,827,165 |
|
|
|
1,836,390 |
|
|
|
1,871,853 |
|
| Commercial mortgage |
|
|
578,559 |
|
|
|
600,859 |
|
|
|
615,964 |
|
|
|
637,625 |
|
|
|
622,469 |
|
| Commercial and industrial
loans |
|
|
2,247,853 |
|
|
|
2,185,827 |
|
|
|
2,235,342 |
|
|
|
2,284,940 |
|
|
|
2,321,917 |
|
| Consumer loans |
|
|
78,160 |
|
|
|
69,579 |
|
|
|
66,827 |
|
|
|
62,036 |
|
|
|
57,227 |
|
| Home equity lines of credit |
|
|
38,971 |
|
|
|
37,117 |
|
|
|
35,542 |
|
|
|
36,464 |
|
|
|
34,411 |
|
| Other loans |
|
|
389 |
|
|
|
172 |
|
|
|
184 |
|
|
|
238 |
|
|
|
265 |
|
|
Total loans |
|
|
5,320,167 |
|
|
|
5,269,298 |
|
|
|
5,362,450 |
|
|
|
5,436,120 |
|
|
|
5,493,437 |
|
|
Less: Allowance for credit losses |
|
|
71,283 |
|
|
|
67,984 |
|
|
|
66,251 |
|
|
|
65,888 |
|
|
|
68,592 |
|
|
Net loans |
|
|
5,248,884 |
|
|
|
5,201,314 |
|
|
|
5,296,199 |
|
|
|
5,370,232 |
|
|
|
5,424,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premises and equipment |
|
|
25,716 |
|
|
|
24,932 |
|
|
|
24,494 |
|
|
|
24,166 |
|
|
|
23,969 |
|
| Accrued interest receivable |
|
|
31,973 |
|
|
|
33,534 |
|
|
|
32,672 |
|
|
|
30,676 |
|
|
|
22,889 |
|
| Bank owned life insurance |
|
|
47,837 |
|
|
|
47,716 |
|
|
|
47,580 |
|
|
|
47,581 |
|
|
|
47,509 |
|
| Goodwill and other intangible
assets |
|
|
45,198 |
|
|
|
45,470 |
|
|
|
45,742 |
|
|
|
46,014 |
|
|
|
46,286 |
|
| Finance lease right-of-use
assets |
|
|
1,020 |
|
|
|
1,055 |
|
|
|
1,900 |
|
|
|
2,087 |
|
|
|
2,274 |
|
| Operating lease right-of-use
assets |
|
|
41,650 |
|
|
|
38,683 |
|
|
|
16,035 |
|
|
|
12,096 |
|
|
|
12,800 |
|
| Due from brokers |
|
|
— |
|
|
|
3,184 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Other assets |
|
|
47,081 |
|
|
|
71,387 |
|
|
|
60,591 |
|
|
|
53,752 |
|
|
|
76,456 |
|
|
TOTAL ASSETS |
|
$ |
6,793,792 |
|
|
$ |
6,505,350 |
|
|
$ |
6,408,553 |
|
|
$ |
6,476,857 |
|
|
$ |
6,521,581 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
$ |
1,079,877 |
|
|
$ |
950,368 |
|
|
$ |
914,893 |
|
|
$ |
957,687 |
|
|
$ |
947,405 |
|
|
Interest-bearing demand deposits |
|
|
3,316,217 |
|
|
|
3,229,814 |
|
|
|
3,029,119 |
|
|
|
2,882,193 |
|
|
|
2,871,359 |
|
|
Savings |
|
|
103,979 |
|
|
|
105,602 |
|
|
|
108,305 |
|
|
|
111,573 |
|
|
|
117,905 |
|
|
Money market accounts |
|
|
902,562 |
|
|
|
824,158 |
|
|
|
775,132 |
|
|
|
740,559 |
|
|
|
761,833 |
|
|
Certificates of deposit – Retail |
|
|
515,297 |
|
|
|
502,810 |
|
|
|
486,079 |
|
|
|
443,791 |
|
|
|
422,291 |
|
|
Certificates of deposit – Listing Service |
|
|
7,454 |
|
|
|
7,454 |
|
|
|
7,704 |
|
|
|
7,804 |
|
|
|
9,103 |
|
| Subtotal “customer” deposits |
|
|
5,925,386 |
|
|
|
5,620,206 |
|
|
|
5,321,232 |
|
|
|
5,143,607 |
|
|
|
5,129,896 |
|
|
IB Demand – Brokered |
|
|
10,000 |
|
|
|
10,000 |
|
|
|
10,000 |
|
|
|
10,000 |
|
|
|
10,000 |
|
|
Certificates of deposit – Brokered |
|
|
— |
|
|
|
26,000 |
|
|
|
145,480 |
|
|
|
120,507 |
|
|
|
119,463 |
|
| Total deposits |
|
|
5,935,386 |
|
|
|
5,656,206 |
|
|
|
5,476,712 |
|
|
|
5,274,114 |
|
|
|
5,259,359 |
|
| Short-term borrowings |
|
|
— |
|
|
|
— |
|
|
|
119,490 |
|
|
|
403,814 |
|
|
|
470,576 |
|
| Finance lease liability |
|
|
1,388 |
|
|
|
1,427 |
|
|
|
3,104 |
|
|
|
3,430 |
|
|
|
3,752 |
|
| Operating lease liability |
|
|
44,775 |
|
|
|
41,347 |
|
|
|
17,630 |
|
|
|
12,876 |
|
|
|
13,595 |
|
| Subordinated debt, net |
|
|
133,489 |
|
|
|
133,417 |
|
|
|
133,346 |
|
|
|
133,274 |
|
|
|
133,203 |
|
| Due to brokers |
|
|
— |
|
|
|
9,981 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Other liabilities |
|
|
71,140 |
|
|
|
74,650 |
|
|
|
75,892 |
|
|
|
65,668 |
|
|
|
82,140 |
|
|
TOTAL LIABILITIES |
|
|
6,186,178 |
|
|
|
5,917,028 |
|
|
|
5,826,174 |
|
|
|
5,893,176 |
|
|
|
5,962,625 |
|
| Shareholders’ equity |
|
|
607,614 |
|
|
|
588,322 |
|
|
|
582,379 |
|
|
|
583,681 |
|
|
|
558,956 |
|
|
TOTAL LIABILITIES AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
$ |
6,793,792 |
|
|
$ |
6,505,350 |
|
|
$ |
6,408,553 |
|
|
$ |
6,476,857 |
|
|
$ |
6,521,581 |
|
| Assets under management
and / or administration at Peapack-Gladstone
Bank’s Private Wealth Management Division (market
value, not included above-dollars in billions) |
|
$ |
12.1 |
|
|
$ |
11.5 |
|
|
$ |
11.5 |
|
|
$ |
10.9 |
|
|
$ |
10.4 |
|
(A) FHLB means "Federal Home Loan Bank" and FRB
means "Federal Reserve Bank."
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED BALANCE SHEET
DATA(Dollars in
Thousands)(Unaudited)
|
|
|
As of |
|
|
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
|
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
| Asset
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans past due over 90 days and
still accruing |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
35 |
|
|
$ |
— |
|
|
$ |
— |
|
| Nonaccrual loans |
|
|
80,453 |
|
|
|
82,075 |
|
|
|
69,811 |
|
|
|
61,324 |
|
|
|
70,809 |
|
| Other real estate owned |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total nonperforming assets |
|
$ |
80,453 |
|
|
$ |
82,075 |
|
|
$ |
69,846 |
|
|
$ |
61,324 |
|
|
$ |
70,809 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming loans to total
loans |
|
|
1.51 |
% |
|
|
1.56 |
% |
|
|
1.30 |
% |
|
|
1.13 |
% |
|
|
1.29 |
% |
| Nonperforming assets to total
assets |
|
|
1.18 |
% |
|
|
1.26 |
% |
|
|
1.09 |
% |
|
|
0.95 |
% |
|
|
1.09 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Performing modifications
(A)(B) |
|
$ |
51,796 |
|
|
$ |
26,788 |
|
|
$ |
12,311 |
|
|
$ |
248 |
|
|
$ |
248 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans past due 30 through 89 days
and still accruing |
|
$ |
31,446 |
|
|
$ |
34,714 |
|
|
$ |
73,699 |
|
|
$ |
34,589 |
|
|
$ |
9,780 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans subject to special
mention |
|
$ |
113,655 |
|
|
$ |
140,791 |
|
|
$ |
59,450 |
|
|
$ |
71,397 |
|
|
$ |
53,328 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Classified loans |
|
$ |
147,422 |
|
|
$ |
128,311 |
|
|
$ |
117,869 |
|
|
$ |
84,372 |
|
|
$ |
94,866 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Individually evaluated loans |
|
$ |
79,972 |
|
|
$ |
81,802 |
|
|
$ |
69,530 |
|
|
$ |
60,710 |
|
|
$ |
70,184 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses
("ACL"): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter |
|
$ |
67,984 |
|
|
$ |
66,251 |
|
|
$ |
65,888 |
|
|
$ |
68,592 |
|
|
$ |
62,704 |
|
|
Provision for credit losses (C) |
|
|
1,227 |
|
|
|
3,901 |
|
|
|
615 |
|
|
|
5,082 |
|
|
|
5,944 |
|
|
(Charge-offs)/recoveries, net (D) |
|
|
2,072 |
|
|
|
(2,168 |
) |
|
|
(252 |
) |
|
|
(7,786 |
) |
|
|
(56 |
) |
|
End of quarter |
|
$ |
71,283 |
|
|
$ |
67,984 |
|
|
$ |
66,251 |
|
|
$ |
65,888 |
|
|
$ |
68,592 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ACL to nonperforming loans |
|
|
88.60 |
% |
|
|
82.83 |
% |
|
|
94.85 |
% |
|
|
107.44 |
% |
|
|
96.87 |
% |
| ACL to total loans |
|
|
1.34 |
% |
|
|
1.29 |
% |
|
|
1.24 |
% |
|
|
1.21 |
% |
|
|
1.25 |
% |
| Collectively evaluated ACL to
total loans (E) |
|
|
1.16 |
% |
|
|
1.14 |
% |
|
|
1.15 |
% |
|
|
1.13 |
% |
|
|
1.10 |
% |
(A) Amounts reflect modifications that are
paying according to modified terms.(B) Excludes modifications
included in nonaccrual loans of $3.7 million at September 30, 2024,
$3.2 million at June 30, 2024, $3.2 million at March 31, 2024, $3.0
million at December 31, 2023 and $3.1 million at September 30,
2023.(C) Excludes a credit of $3,000 at September 30, 2024, a
provision of $10,000 at June 30, 2024, a provision of $12,000 at
March 31, 2024, a credit of $55,000 at December 31, 2023 and a
credit of $88,000 at September 30, 2023 related to off-balance
sheet commitments.(D) Net charge-offs for the quarter ended
December 31, 2023 included charge-offs of $2.2 million of a
previously established reserve to loans individually evaluated on
one multifamily loan and $5.6 million on one equipment finance
relationship. (E) Total ACL less reserves to loans individually
evaluated equals collectively evaluated ACL.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED BALANCE SHEET
DATA(Dollars in
Thousands)(Unaudited)
| |
|
As of |
|
| |
|
September 30, |
|
|
December 31, |
|
|
September 30, |
|
| |
|
2024 |
|
|
2023 |
|
|
2023 |
|
| Capital
Adequacy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity to total assets (A) |
|
|
|
|
8.94 |
% |
|
|
|
|
9.01 |
% |
|
|
|
|
8.57 |
% |
| Tangible equity to tangible
assets (B) |
|
|
|
|
8.33 |
% |
|
|
|
|
8.36 |
% |
|
|
|
|
7.92 |
% |
| Book value per share (C) |
|
|
|
$ |
34.57 |
|
|
|
|
$ |
32.90 |
|
|
|
|
$ |
31.37 |
|
| Tangible book value per share
(D) |
|
|
|
$ |
32.00 |
|
|
|
|
$ |
30.31 |
|
|
|
|
$ |
28.77 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible equity to tangible
assets excluding other comprehensive loss* |
|
|
|
|
9.07 |
% |
|
|
|
|
9.28 |
% |
|
|
|
|
9.06 |
% |
| Tangible book value per share
excluding other comprehensive loss* |
|
|
|
$ |
35.11 |
|
|
|
|
$ |
33.97 |
|
|
|
|
$ |
33.36 |
|
*Excludes other comprehensive loss of $54.8
million for the quarter ended September 30, 2024, $64.9 million for
the quarter ended December 31, 2023, and $81.7 million for the
quarter ended September 30, 2023. See Non-GAAP financial measures
reconciliation included in these tables.
(A) Equity to total assets is calculated as
total shareholders’ equity as a percentage of total assets at
quarter end.(B) Tangible equity and tangible assets are calculated
by excluding the balance of intangible assets from shareholders’
equity and total assets, respectively. Tangible equity as a
percentage of tangible assets at quarter end is calculated by
dividing tangible equity by tangible assets at quarter end. See
Non-GAAP financial measures reconciliation included in these
tables.(C) Book value per common share is calculated by dividing
shareholders’ equity by quarter end common shares outstanding.(D)
Tangible book value per share excludes intangible assets. Tangible
book value per share is calculated by dividing tangible equity by
quarter end common shares outstanding. See Non-GAAP financial
measures reconciliation tables.
| |
|
As of |
| |
|
September 30, |
|
December 31, |
|
September 30, |
| |
|
2024 |
|
|
2023 |
|
|
2023 |
|
| Regulatory Capital –
Holding Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tier I leverage |
|
$ |
615,486 |
|
|
9.33 |
% |
|
$ |
600,444 |
|
|
9.19 |
% |
|
$ |
592,061 |
|
|
9.05 |
% |
| Tier I capital to risk-weighted
assets |
|
|
615,486 |
|
|
11.67 |
|
|
|
600,444 |
|
|
11.43 |
|
|
|
592,061 |
|
|
11.13 |
|
| Common equity tier I capital
ratio to risk-weighted assets |
|
|
615,474 |
|
|
11.67 |
|
|
|
600,432 |
|
|
11.43 |
|
|
|
592,043 |
|
|
11.13 |
|
| Tier I & II capital to
risk-weighted assets |
|
|
800,961 |
|
|
15.19 |
|
|
|
785,413 |
|
|
14.95 |
|
|
|
784,777 |
|
|
14.76 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Regulatory Capital –
Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tier I leverage (E) |
|
$ |
724,038 |
|
|
10.99 |
% |
|
$ |
707,446 |
|
|
10.83 |
% |
|
$ |
702,517 |
|
|
10.75 |
% |
| Tier I capital to risk-weighted
assets (F) |
|
|
724,038 |
|
|
13.75 |
|
|
|
707,446 |
|
|
13.48 |
|
|
|
702,517 |
|
|
13.22 |
|
| Common equity tier I capital
ratio to risk-weighted assets (G) |
|
|
724,026 |
|
|
13.75 |
|
|
|
707,434 |
|
|
13.47 |
|
|
|
702,499 |
|
|
13.22 |
|
| Tier I & II capital to
risk-weighted assets (H) |
|
|
789,954 |
|
|
15.00 |
|
|
|
773,083 |
|
|
14.73 |
|
|
|
768,979 |
|
|
14.47 |
|
(E) Regulatory well capitalized standard
(including capital conservation buffer) = 4.00% ($264 million)(F)
Regulatory well capitalized standard (including capital
conservation buffer) = 8.50% ($448 million)(G) Regulatory well
capitalized standard (including capital conservation buffer) =
7.00% ($369 million)(H) Regulatory well capitalized standard
(including capital conservation buffer) = 10.50% ($553 million)
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONLOANS CLOSED(Dollars
in Thousands)(Unaudited)
| |
|
For the Quarters Ended |
|
| |
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
| |
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
| Residential loans retained |
|
$ |
26,955 |
|
|
$ |
16,087 |
|
|
$ |
11,661 |
|
|
$ |
5,895 |
|
|
$ |
21,310 |
|
| Residential loans sold |
|
|
1,853 |
|
|
|
2,361 |
|
|
|
4,025 |
|
|
|
1,449 |
|
|
|
2,503 |
|
|
Total residential loans |
|
|
28,808 |
|
|
|
18,448 |
|
|
|
15,686 |
|
|
|
7,344 |
|
|
|
23,813 |
|
| Commercial real estate |
|
|
4,300 |
|
|
|
2,600 |
|
|
|
11,500 |
|
|
|
21,375 |
|
|
|
3,900 |
|
| Multifamily |
|
|
11,295 |
|
|
|
4,330 |
|
|
|
1,900 |
|
|
|
5,725 |
|
|
|
3,000 |
|
| Commercial (C&I) loans (A)
(B) |
|
|
242,829 |
|
|
|
103,065 |
|
|
|
145,803 |
|
|
|
145,397 |
|
|
|
176,845 |
|
| SBA |
|
|
9,106 |
|
|
|
8,200 |
|
|
|
2,790 |
|
|
|
7,326 |
|
|
|
300 |
|
| Wealth lines of credit (A) |
|
|
11,675 |
|
|
|
10,950 |
|
|
|
3,850 |
|
|
|
350 |
|
|
|
6,875 |
|
|
Total commercial loans |
|
|
279,205 |
|
|
|
129,145 |
|
|
|
165,843 |
|
|
|
180,173 |
|
|
|
190,920 |
|
| Installment loans |
|
|
8,137 |
|
|
|
1,664 |
|
|
|
6,868 |
|
|
|
2,946 |
|
|
|
6,999 |
|
| Home equity lines of credit
(A) |
|
|
10,421 |
|
|
|
4,787 |
|
|
|
2,103 |
|
|
|
4,174 |
|
|
|
6,275 |
|
|
Total loans closed |
|
$ |
326,571 |
|
|
$ |
154,044 |
|
|
$ |
190,500 |
|
|
$ |
194,637 |
|
|
$ |
228,007 |
|
| |
|
For the Nine Months Ended |
|
| |
|
Sept 30, |
|
|
Sept 30, |
|
| |
|
2024 |
|
|
2023 |
|
| Residential loans retained |
|
$ |
54,703 |
|
|
$ |
90,971 |
|
| Residential loans sold |
|
|
8,239 |
|
|
|
5,052 |
|
|
Total residential loans |
|
|
62,942 |
|
|
|
96,023 |
|
| Commercial real estate |
|
|
18,400 |
|
|
|
66,125 |
|
| Multifamily |
|
|
17,525 |
|
|
|
59,812 |
|
| Commercial (C&I) loans (A)
(B) |
|
|
491,697 |
|
|
|
543,631 |
|
| SBA |
|
|
20,096 |
|
|
|
23,963 |
|
| Wealth lines of credit (A) |
|
|
26,475 |
|
|
|
34,050 |
|
|
Total commercial loans |
|
|
574,193 |
|
|
|
727,581 |
|
| Installment loans |
|
|
16,669 |
|
|
|
23,672 |
|
| Home equity lines of credit
(A) |
|
|
17,311 |
|
|
|
15,303 |
|
|
Total loans closed |
|
$ |
671,115 |
|
|
$ |
862,579 |
|
(A) Includes loans and lines of credit that
closed in the period but not necessarily funded.(B) Includes
equipment finance.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONAVERAGE BALANCE
SHEET(Tax-Equivalent Basis, Dollars in
Thousands)(Unaudited)
| |
|
For the Three Months Ended |
|
|
|
|
September 30, 2024 |
|
|
September 30, 2023 |
|
|
|
|
Average |
|
|
Income/ |
|
|
Annualized |
|
|
Average |
|
|
Income/ |
|
|
Annualized |
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
| ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
865,892 |
|
|
$ |
6,107 |
|
|
|
2.82 |
% |
|
$ |
806,861 |
|
|
$ |
5,170 |
|
|
|
2.56 |
% |
|
Tax-exempt (A) (B) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,198 |
|
|
|
11 |
|
|
|
3.67 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
579,949 |
|
|
|
5,834 |
|
|
|
4.02 |
|
|
|
580,951 |
|
|
|
5,208 |
|
|
|
3.59 |
|
|
Commercial mortgages |
|
|
2,381,771 |
|
|
|
27,362 |
|
|
|
4.60 |
|
|
|
2,502,351 |
|
|
|
27,746 |
|
|
|
4.44 |
|
|
Commercial |
|
|
2,159,648 |
|
|
|
37,588 |
|
|
|
6.96 |
|
|
|
2,298,723 |
|
|
|
37,357 |
|
|
|
6.50 |
|
|
Commercial construction |
|
|
22,371 |
|
|
|
507 |
|
|
|
9.07 |
|
|
|
12,346 |
|
|
|
282 |
|
|
|
9.14 |
|
|
Installment |
|
|
73,440 |
|
|
|
1,267 |
|
|
|
6.90 |
|
|
|
56,248 |
|
|
|
967 |
|
|
|
6.88 |
|
|
Home equity |
|
|
38,768 |
|
|
|
814 |
|
|
|
8.40 |
|
|
|
34,250 |
|
|
|
680 |
|
|
|
7.94 |
|
|
Other |
|
|
239 |
|
|
|
6 |
|
|
|
10.04 |
|
|
|
234 |
|
|
|
7 |
|
|
|
11.97 |
|
|
Total loans |
|
|
5,256,186 |
|
|
|
73,378 |
|
|
|
5.58 |
|
|
|
5,485,103 |
|
|
|
72,247 |
|
|
|
5.27 |
|
|
Federal funds sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Interest-earning deposits |
|
|
326,707 |
|
|
|
3,982 |
|
|
|
4.88 |
|
|
|
136,315 |
|
|
|
1,463 |
|
|
|
4.29 |
|
|
Total interest-earning assets |
|
|
6,448,785 |
|
|
|
83,467 |
|
|
|
5.18 |
% |
|
|
6,429,477 |
|
|
|
78,891 |
|
|
|
4.91 |
% |
| Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
7,521 |
|
|
|
|
|
|
|
|
|
6,954 |
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(70,317 |
) |
|
|
|
|
|
|
|
|
(63,625 |
) |
|
|
|
|
|
|
|
Premises and equipment |
|
|
25,530 |
|
|
|
|
|
|
|
|
|
23,880 |
|
|
|
|
|
|
|
|
Other assets |
|
|
139,042 |
|
|
|
|
|
|
|
|
|
85,582 |
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
101,776 |
|
|
|
|
|
|
|
|
|
52,791 |
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,550,561 |
|
|
|
|
|
|
|
|
$ |
6,482,268 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
3,214,186 |
|
|
$ |
31,506 |
|
|
|
3.92 |
% |
|
$ |
2,813,080 |
|
|
$ |
24,318 |
|
|
|
3.46 |
% |
|
Money markets |
|
|
833,325 |
|
|
|
6,419 |
|
|
|
3.08 |
|
|
|
771,781 |
|
|
|
4,458 |
|
|
|
2.31 |
|
|
Savings |
|
|
104,293 |
|
|
|
117 |
|
|
|
0.45 |
|
|
|
118,718 |
|
|
|
75 |
|
|
|
0.25 |
|
|
Certificates of deposit – retail |
|
|
512,794 |
|
|
|
5,540 |
|
|
|
4.32 |
|
|
|
415,665 |
|
|
|
3,459 |
|
|
|
3.33 |
|
|
Subtotal interest-bearing deposits |
|
|
4,664,598 |
|
|
|
43,582 |
|
|
|
3.74 |
|
|
|
4,119,244 |
|
|
|
32,310 |
|
|
|
3.14 |
|
|
Interest-bearing demand – brokered |
|
|
10,000 |
|
|
|
134 |
|
|
|
5.36 |
|
|
|
10,000 |
|
|
|
136 |
|
|
|
5.44 |
|
|
Certificates of deposit – brokered |
|
|
7,913 |
|
|
|
106 |
|
|
|
5.36 |
|
|
|
102,777 |
|
|
|
1,183 |
|
|
|
4.60 |
|
|
Total interest-bearing deposits |
|
|
4,682,511 |
|
|
|
43,822 |
|
|
|
3.74 |
|
|
|
4,232,021 |
|
|
|
33,629 |
|
|
|
3.18 |
|
|
Borrowings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
470,616 |
|
|
|
6,569 |
|
|
|
5.58 |
|
|
Capital lease obligation |
|
|
1,401 |
|
|
|
15 |
|
|
|
4.28 |
|
|
|
3,863 |
|
|
|
46 |
|
|
|
4.76 |
|
|
Subordinated debt |
|
|
133,449 |
|
|
|
1,685 |
|
|
|
5.05 |
|
|
|
133,163 |
|
|
|
1,730 |
|
|
|
5.20 |
|
|
Total interest-bearing liabilities |
|
|
4,817,361 |
|
|
|
45,522 |
|
|
|
3.78 |
% |
|
|
4,839,663 |
|
|
|
41,974 |
|
|
|
3.47 |
% |
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
1,016,014 |
|
|
|
|
|
|
|
|
|
990,854 |
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
124,399 |
|
|
|
|
|
|
|
|
|
86,598 |
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,140,413 |
|
|
|
|
|
|
|
|
|
1,077,452 |
|
|
|
|
|
|
|
| Shareholders’ equity |
|
|
592,787 |
|
|
|
|
|
|
|
|
|
565,153 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
6,550,561 |
|
|
|
|
|
|
|
|
$ |
6,482,268 |
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
37,945 |
|
|
|
|
|
|
|
|
$ |
36,917 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
1.40 |
% |
|
|
|
|
|
|
|
|
1.44 |
% |
|
Net interest margin (D) |
|
|
|
|
|
|
|
|
2.34 |
% |
|
|
|
|
|
|
|
|
2.28 |
% |
(A) Average balances for available for sale
securities are based on amortized cost.(B) Interest income is
presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual
loans.(D) Net interest income on a tax-equivalent basis as a
percentage of total average interest-earning assets.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONAVERAGE BALANCE
SHEET(Tax-Equivalent Basis, Dollars in
Thousands)(Unaudited)
| |
|
For the Three Months Ended |
|
|
|
|
September 30, 2024 |
|
|
June 30, 2024 |
|
|
|
|
Average |
|
|
Income/ |
|
|
Annualized |
|
|
Average |
|
|
Income/ |
|
|
Annualized |
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
| ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
865,892 |
|
|
$ |
6,107 |
|
|
|
2.82 |
% |
|
$ |
801,715 |
|
|
$ |
5,168 |
|
|
|
2.58 |
% |
|
Tax-exempt (A) (B) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
579,949 |
|
|
|
5,834 |
|
|
|
4.02 |
|
|
|
576,944 |
|
|
|
5,582 |
|
|
|
3.87 |
|
|
Commercial mortgages |
|
|
2,381,771 |
|
|
|
27,362 |
|
|
|
4.60 |
|
|
|
2,420,570 |
|
|
|
26,881 |
|
|
|
4.44 |
|
|
Commercial |
|
|
2,159,648 |
|
|
|
37,588 |
|
|
|
6.96 |
|
|
|
2,191,370 |
|
|
|
37,067 |
|
|
|
6.77 |
|
|
Commercial construction |
|
|
22,371 |
|
|
|
507 |
|
|
|
9.07 |
|
|
|
21,628 |
|
|
|
489 |
|
|
|
9.04 |
|
|
Installment |
|
|
73,440 |
|
|
|
1,267 |
|
|
|
6.90 |
|
|
|
67,034 |
|
|
|
1,143 |
|
|
|
6.82 |
|
|
Home equity |
|
|
38,768 |
|
|
|
814 |
|
|
|
8.40 |
|
|
|
36,576 |
|
|
|
748 |
|
|
|
8.18 |
|
|
Other |
|
|
239 |
|
|
|
6 |
|
|
|
10.04 |
|
|
|
200 |
|
|
|
6 |
|
|
|
12.00 |
|
|
Total loans |
|
|
5,256,186 |
|
|
|
73,378 |
|
|
|
5.58 |
|
|
|
5,314,322 |
|
|
|
71,916 |
|
|
|
5.41 |
|
|
Federal funds sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Interest-earning deposits |
|
|
326,707 |
|
|
|
3,982 |
|
|
|
4.88 |
|
|
|
207,287 |
|
|
|
2,418 |
|
|
|
4.67 |
|
|
Total interest-earning assets |
|
|
6,448,785 |
|
|
|
83,467 |
|
|
|
5.18 |
% |
|
|
6,323,324 |
|
|
|
79,502 |
|
|
|
5.03 |
% |
| Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
7,521 |
|
|
|
|
|
|
|
|
|
7,537 |
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(70,317 |
) |
|
|
|
|
|
|
|
|
(67,568 |
) |
|
|
|
|
|
|
|
Premises and equipment |
|
|
25,530 |
|
|
|
|
|
|
|
|
|
24,820 |
|
|
|
|
|
|
|
|
Other assets |
|
|
139,042 |
|
|
|
|
|
|
|
|
|
99,838 |
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
101,776 |
|
|
|
|
|
|
|
|
|
64,627 |
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,550,561 |
|
|
|
|
|
|
|
|
$ |
6,387,951 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
3,214,186 |
|
|
$ |
31,506 |
|
|
|
3.92 |
% |
|
$ |
3,094,386 |
|
|
$ |
29,252 |
|
|
|
3.78 |
% |
|
Money markets |
|
|
833,325 |
|
|
|
6,419 |
|
|
|
3.08 |
|
|
|
791,385 |
|
|
|
6,016 |
|
|
|
3.04 |
|
|
Savings |
|
|
104,293 |
|
|
|
117 |
|
|
|
0.45 |
|
|
|
105,825 |
|
|
|
96 |
|
|
|
0.36 |
|
|
Certificates of deposit – retail |
|
|
512,794 |
|
|
|
5,540 |
|
|
|
4.32 |
|
|
|
504,313 |
|
|
|
5,367 |
|
|
|
4.26 |
|
|
Subtotal interest-bearing deposits |
|
|
4,664,598 |
|
|
|
43,582 |
|
|
|
3.74 |
|
|
|
4,495,909 |
|
|
|
40,731 |
|
|
|
3.62 |
|
|
Interest-bearing demand – brokered |
|
|
10,000 |
|
|
|
134 |
|
|
|
5.36 |
|
|
|
10,000 |
|
|
|
134 |
|
|
|
5.36 |
|
|
Certificates of deposit – brokered |
|
|
7,913 |
|
|
|
106 |
|
|
|
5.36 |
|
|
|
98,642 |
|
|
|
1,242 |
|
|
|
5.04 |
|
|
Total interest-bearing deposits |
|
|
4,682,511 |
|
|
|
43,822 |
|
|
|
3.74 |
|
|
|
4,604,551 |
|
|
|
42,107 |
|
|
|
3.66 |
|
|
Borrowings |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27,247 |
|
|
|
381 |
|
|
|
5.59 |
|
|
Capital lease obligation |
|
|
1,401 |
|
|
|
15 |
|
|
|
4.28 |
|
|
|
2,869 |
|
|
|
22 |
|
|
|
3.07 |
|
|
Subordinated debt |
|
|
133,449 |
|
|
|
1,685 |
|
|
|
5.05 |
|
|
|
133,377 |
|
|
|
1,686 |
|
|
|
5.06 |
|
|
Total interest-bearing liabilities |
|
|
4,817,361 |
|
|
|
45,522 |
|
|
|
3.78 |
% |
|
|
4,768,044 |
|
|
|
44,196 |
|
|
|
3.71 |
% |
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
1,016,014 |
|
|
|
|
|
|
|
|
|
945,231 |
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
124,399 |
|
|
|
|
|
|
|
|
|
97,470 |
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,140,413 |
|
|
|
|
|
|
|
|
|
1,042,701 |
|
|
|
|
|
|
|
| Shareholders’ equity |
|
|
592,787 |
|
|
|
|
|
|
|
|
|
577,206 |
|
|
|
|
|
|
|
| Total liabilities and
shareholders’ equity |
|
$ |
6,550,561 |
|
|
|
|
|
|
|
|
$ |
6,387,951 |
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
37,945 |
|
|
|
|
|
|
|
|
$ |
35,306 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
1.40 |
% |
|
|
|
|
|
|
|
|
1.32 |
% |
|
Net interest margin (D) |
|
|
|
|
|
|
|
|
2.34 |
% |
|
|
|
|
|
|
|
|
2.25 |
% |
(A) Average balances for available for sale
securities are based on amortized cost.(B) Interest income is
presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual
loans.(D) Net interest income on a tax-equivalent basis as a
percentage of total average interest-earning assets.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONAVERAGE BALANCE
SHEET(Tax-Equivalent Basis, Dollars in
Thousands)(Unaudited)
| |
|
For the Nine Months Ended |
|
|
|
|
September 30, 2024 |
|
|
September 30, 2023 |
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
| ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
820,594 |
|
|
$ |
16,411 |
|
|
|
2.67 |
% |
|
$ |
801,535 |
|
|
$ |
14,541 |
|
|
|
2.42 |
% |
|
Tax-exempt (A) (B) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,637 |
|
|
|
49 |
|
|
|
3.99 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
578,187 |
|
|
|
16,836 |
|
|
|
3.88 |
|
|
|
556,220 |
|
|
|
14,433 |
|
|
|
3.46 |
|
|
Commercial mortgages |
|
|
2,420,772 |
|
|
|
81,783 |
|
|
|
4.50 |
|
|
|
2,495,175 |
|
|
|
80,503 |
|
|
|
4.30 |
|
|
Commercial |
|
|
2,196,921 |
|
|
|
112,214 |
|
|
|
6.81 |
|
|
|
2,247,803 |
|
|
|
106,182 |
|
|
|
6.30 |
|
|
Commercial construction |
|
|
20,981 |
|
|
|
1,425 |
|
|
|
9.06 |
|
|
|
7,903 |
|
|
|
536 |
|
|
|
9.04 |
|
|
Installment |
|
|
68,605 |
|
|
|
3,524 |
|
|
|
6.85 |
|
|
|
49,214 |
|
|
|
2,416 |
|
|
|
6.55 |
|
|
Home equity |
|
|
37,255 |
|
|
|
2,298 |
|
|
|
8.22 |
|
|
|
33,914 |
|
|
|
1,903 |
|
|
|
7.48 |
|
|
Other |
|
|
218 |
|
|
|
19 |
|
|
|
11.62 |
|
|
|
260 |
|
|
|
22 |
|
|
|
11.28 |
|
|
Total loans |
|
|
5,322,939 |
|
|
|
218,099 |
|
|
|
5.46 |
|
|
|
5,390,489 |
|
|
|
205,995 |
|
|
|
5.10 |
|
|
Federal funds sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Interest-earning deposits |
|
|
225,070 |
|
|
|
7,922 |
|
|
|
4.69 |
|
|
|
147,071 |
|
|
|
4,452 |
|
|
|
4.04 |
|
|
Total interest-earning assets |
|
|
6,368,603 |
|
|
|
242,432 |
|
|
|
5.08 |
% |
|
|
6,340,732 |
|
|
|
225,037 |
|
|
|
4.73 |
% |
| Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
8,384 |
|
|
|
|
|
|
|
|
|
8,388 |
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(68,337 |
) |
|
|
|
|
|
|
|
|
(62,753 |
) |
|
|
|
|
|
|
|
Premises and equipment |
|
|
24,917 |
|
|
|
|
|
|
|
|
|
23,850 |
|
|
|
|
|
|
|
|
Other assets |
|
|
109,152 |
|
|
|
|
|
|
|
|
|
76,992 |
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
74,116 |
|
|
|
|
|
|
|
|
|
46,477 |
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,442,719 |
|
|
|
|
|
|
|
|
$ |
6,387,209 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
3,088,218 |
|
|
$ |
88,192 |
|
|
|
3.81 |
% |
|
$ |
2,739,115 |
|
|
$ |
63,018 |
|
|
|
3.07 |
% |
|
Money markets |
|
|
794,297 |
|
|
|
17,959 |
|
|
|
3.01 |
|
|
|
893,567 |
|
|
|
13,185 |
|
|
|
1.97 |
|
|
Savings |
|
|
106,200 |
|
|
|
302 |
|
|
|
0.38 |
|
|
|
128,437 |
|
|
|
148 |
|
|
|
0.15 |
|
|
Certificates of deposit – retail |
|
|
498,353 |
|
|
|
15,762 |
|
|
|
4.22 |
|
|
|
386,488 |
|
|
|
7,650 |
|
|
|
2.64 |
|
|
Subtotal interest-bearing deposits |
|
|
4,487,068 |
|
|
|
122,215 |
|
|
|
3.63 |
|
|
|
4,147,607 |
|
|
|
84,001 |
|
|
|
2.70 |
|
|
Interest-bearing demand – brokered |
|
|
10,000 |
|
|
|
394 |
|
|
|
5.25 |
|
|
|
15,311 |
|
|
|
469 |
|
|
|
4.08 |
|
|
Certificates of deposit – brokered |
|
|
78,042 |
|
|
|
2,950 |
|
|
|
5.04 |
|
|
|
51,916 |
|
|
|
1,584 |
|
|
|
4.07 |
|
|
Total interest-bearing deposits |
|
|
4,575,110 |
|
|
|
125,559 |
|
|
|
3.66 |
|
|
|
4,214,834 |
|
|
|
86,054 |
|
|
|
2.72 |
|
|
Borrowings |
|
|
87,224 |
|
|
|
3,848 |
|
|
|
5.88 |
|
|
|
331,170 |
|
|
|
13,249 |
|
|
|
5.33 |
|
|
Capital lease obligation |
|
|
2,491 |
|
|
|
75 |
|
|
|
4.01 |
|
|
|
4,179 |
|
|
|
149 |
|
|
|
4.75 |
|
|
Subordinated debt |
|
|
133,377 |
|
|
|
5,055 |
|
|
|
5.05 |
|
|
|
133,090 |
|
|
|
4,966 |
|
|
|
4.98 |
|
|
Total interest-bearing liabilities |
|
|
4,798,202 |
|
|
|
134,537 |
|
|
|
3.74 |
% |
|
|
4,683,273 |
|
|
|
104,418 |
|
|
|
2.97 |
% |
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
959,571 |
|
|
|
|
|
|
|
|
|
1,066,162 |
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
101,247 |
|
|
|
|
|
|
|
|
|
82,215 |
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,060,818 |
|
|
|
|
|
|
|
|
|
1,148,377 |
|
|
|
|
|
|
|
| Shareholders’ equity |
|
|
583,699 |
|
|
|
|
|
|
|
|
|
555,559 |
|
|
|
|
|
|
|
| Total liabilities and
shareholders’ equity |
|
$ |
6,442,719 |
|
|
|
|
|
|
|
|
$ |
6,387,209 |
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
107,895 |
|
|
|
|
|
|
|
|
$ |
120,619 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
1.34 |
% |
|
|
|
|
|
|
|
|
1.76 |
% |
|
Net interest margin (D) |
|
|
|
|
|
|
|
|
2.26 |
% |
|
|
|
|
|
|
|
|
2.54 |
% |
(A) Average balances for available for sale
securities are based on amortized cost.(B) Interest income is
presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual
loans.(D) Net interest income on a tax-equivalent basis as a
percentage of total average interest-earning assets.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONNON-GAAP FINANCIAL MEASURES
RECONCILIATION
Tangible book value per share and tangible
equity as a percentage of tangible assets at period end are
non-GAAP financial measures derived from GAAP-based amounts. We
calculate tangible equity and tangible assets by excluding the
balance of intangible assets from shareholders’ equity and total
assets, respectively. We calculate tangible book value per share by
dividing tangible equity by common shares outstanding, as compared
to book value per common share, which we calculate by dividing
shareholders’ equity by common shares outstanding at period end. We
calculate tangible equity as a percentage of tangible assets at
period end by dividing tangible equity by tangible assets at period
end. We believe that this is consistent with the treatment by bank
regulatory agencies, which exclude intangible assets from the
calculation of risk-based capital ratios.
The efficiency ratio is a non-GAAP measure of
expense control relative to recurring revenue. We calculate the
efficiency ratio by dividing total noninterest expenses, excluding
other real estate owned provision, as determined under GAAP, by net
interest income and total noninterest income as determined under
GAAP, but excluding net gains/(losses) on loans held for sale at
lower of cost or fair value and excluding net gains on securities
from this calculation, which we refer to below as recurring
revenue. We believe that this provides a reasonable measure of core
expenses relative to core revenue.
We believe these non-GAAP financial measures
provide information that is important to investors and useful in
understanding our financial position, results and ratios because
our management internally assesses our performance based, in part,
on these measures. However, these non-GAAP financial measures are
supplemental and are not a substitute for an analysis based on GAAP
measures. As other companies may use different calculations for
these measures, this presentation may not be comparable to other
similarly titles measures reported by other companies. A
reconciliation of the non-GAAP measures of tangible common equity,
tangible book value per share and efficiency ratio to the
underlying GAAP numbers is set forth below.
(Dollars in thousands, except per share
data)
| |
|
Three Months Ended |
|
| |
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
| Tangible Book Value
Per Share |
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
| Shareholders’ equity |
|
$ |
607,614 |
|
|
$ |
588,322 |
|
|
$ |
582,379 |
|
|
$ |
583,681 |
|
|
$ |
558,956 |
|
| Less: Intangible assets, net |
|
|
45,198 |
|
|
|
45,470 |
|
|
|
45,742 |
|
|
|
46,014 |
|
|
|
46,286 |
|
|
Tangible equity |
|
$ |
562,416 |
|
|
$ |
542,852 |
|
|
$ |
536,637 |
|
|
$ |
537,667 |
|
|
$ |
512,670 |
|
|
Less: other comprehensive loss |
|
|
(54,820 |
) |
|
|
(68,342 |
) |
|
|
(67,760 |
) |
|
|
(64,878 |
) |
|
|
(81,653 |
) |
|
Tangible equity excluding other comprehensive loss |
|
$ |
617,236 |
|
|
$ |
611,194 |
|
|
$ |
604,397 |
|
|
$ |
602,545 |
|
|
$ |
594,323 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Period end shares
outstanding |
|
|
17,577,747 |
|
|
|
17,666,490 |
|
|
|
17,761,538 |
|
|
|
17,739,677 |
|
|
|
17,816,922 |
|
| Tangible book value per
share |
|
$ |
32.00 |
|
|
$ |
30.73 |
|
|
$ |
30.21 |
|
|
$ |
30.31 |
|
|
$ |
28.77 |
|
| Tangible book value per share
excluding other comprehensive loss |
|
$ |
35.11 |
|
|
$ |
34.60 |
|
|
$ |
34.03 |
|
|
$ |
33.97 |
|
|
$ |
33.36 |
|
| Book value per share |
|
|
34.57 |
|
|
|
33.30 |
|
|
|
32.79 |
|
|
|
32.90 |
|
|
|
31.37 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Equity to
Tangible Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,793,792 |
|
|
$ |
6,505,350 |
|
|
$ |
6,408,553 |
|
|
$ |
6,476,857 |
|
|
$ |
6,521,581 |
|
| Less: Intangible assets, net |
|
|
45,198 |
|
|
|
45,470 |
|
|
|
45,742 |
|
|
|
46,014 |
|
|
|
46,286 |
|
|
Tangible assets |
|
$ |
6,748,594 |
|
|
$ |
6,459,880 |
|
|
$ |
6,362,811 |
|
|
$ |
6,430,843 |
|
|
$ |
6,475,295 |
|
|
Less: other comprehensive loss |
|
|
(54,820 |
) |
|
|
(68,342 |
) |
|
|
(67,760 |
) |
|
|
(64,878 |
) |
|
|
(81,653 |
) |
|
Tangible assets excluding other comprehensive loss |
|
$ |
6,803,414 |
|
|
$ |
6,528,222 |
|
|
$ |
6,430,571 |
|
|
$ |
6,495,721 |
|
|
$ |
6,556,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible equity to tangible
assets |
|
|
8.33 |
% |
|
|
8.40 |
% |
|
|
8.43 |
% |
|
|
8.36 |
% |
|
|
7.92 |
% |
| Tangible equity to tangible
assets excluding other comprehensive loss |
|
|
9.07 |
% |
|
|
9.36 |
% |
|
|
9.40 |
% |
|
|
9.28 |
% |
|
|
9.06 |
% |
| Equity to assets |
|
|
8.94 |
% |
|
|
9.04 |
% |
|
|
9.09 |
% |
|
|
9.01 |
% |
|
|
8.57 |
% |
(Dollars in thousands)
| |
|
Three Months Ended |
|
| |
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
| Return on Average
Tangible Equity |
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
| Net income |
|
$ |
7,587 |
|
|
$ |
7,530 |
|
|
$ |
8,631 |
|
|
$ |
8,599 |
|
|
$ |
8,755 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average shareholders’ equity |
|
$ |
592,787 |
|
|
$ |
577,206 |
|
|
$ |
581,003 |
|
|
$ |
561,055 |
|
|
$ |
565,153 |
|
| Less: Average intangible assets,
net |
|
|
45,350 |
|
|
|
45,624 |
|
|
|
45,903 |
|
|
|
46,167 |
|
|
|
46,468 |
|
|
Average tangible equity |
|
$ |
547,437 |
|
|
$ |
531,582 |
|
|
$ |
535,100 |
|
|
$ |
514,888 |
|
|
$ |
518,685 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average tangible common
equity |
|
|
5.54 |
% |
|
|
5.67 |
% |
|
|
6.45 |
% |
|
|
6.68 |
% |
|
|
6.75 |
% |
| |
|
For the Nine Months Ended |
|
| |
|
Sept 30, |
|
|
Sept 30, |
|
| Return on Average
Tangible Equity |
|
2024 |
|
|
2023 |
|
| Net income |
|
$ |
23,748 |
|
|
$ |
40,255 |
|
| |
|
|
|
|
|
|
| Average shareholders’ equity |
|
$ |
583,699 |
|
|
$ |
555,559 |
|
| Less: Average intangible assets,
net |
|
|
45,625 |
|
|
|
46,825 |
|
|
Average tangible equity |
|
|
538,074 |
|
|
|
508,734 |
|
| |
|
|
|
|
|
|
| Return on average tangible common
equity |
|
|
5.88 |
% |
|
|
10.55 |
% |
(Dollars in thousands)
| |
|
Three Months Ended |
|
| |
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
| Efficiency
Ratio |
|
2024 |
|
|
2024 |
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
| Net interest income |
|
$ |
37,681 |
|
|
$ |
35,042 |
|
|
$ |
34,375 |
|
|
$ |
36,675 |
|
|
$ |
36,515 |
|
| Total other income |
|
|
18,938 |
|
|
|
21,555 |
|
|
|
18,701 |
|
|
|
17,590 |
|
|
|
19,354 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value adjustment for CRA
equity security |
|
|
(474 |
) |
|
|
84 |
|
|
|
111 |
|
|
|
(585 |
) |
|
|
404 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on loans held for sale at
lower of cost or fair value |
|
|
— |
|
|
|
(23 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Income from life insurance
proceeds |
|
|
(55 |
) |
|
|
— |
|
|
|
(181 |
) |
|
|
— |
|
|
|
— |
|
| Total recurring revenue |
|
|
56,090 |
|
|
|
56,658 |
|
|
|
53,006 |
|
|
|
53,680 |
|
|
|
56,273 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
44,649 |
|
|
|
43,126 |
|
|
|
40,041 |
|
|
|
37,616 |
|
|
|
37,413 |
|
| Total operating expense |
|
|
44,649 |
|
|
|
43,126 |
|
|
|
40,041 |
|
|
|
37,616 |
|
|
|
37,413 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio |
|
|
79.60 |
% |
|
|
76.12 |
% |
|
|
75.54 |
% |
|
|
70.07 |
% |
|
|
66.48 |
% |
(Dollars in thousands)
| |
|
For the Nine Months Ended |
|
| |
|
Sept 30, |
|
|
Sept 30, |
|
| Efficiency
Ratio |
|
2024 |
|
|
2023 |
|
| Net interest income |
|
$ |
107,098 |
|
|
$ |
119,414 |
|
| Total other income |
|
|
59,194 |
|
|
|
55,988 |
|
| Add: |
|
|
|
|
|
|
| Fair value adjustment for CRA
equity security |
|
|
(279 |
) |
|
|
404 |
|
| Less: |
|
|
|
|
|
|
| Gain on loans held for sale at
lower of cost or fair value |
|
|
(23 |
) |
|
|
— |
|
| Income from life insurance
proceeds |
|
|
(236 |
) |
|
|
— |
|
| Total recurring revenue |
|
|
165,754 |
|
|
|
175,806 |
|
| |
|
|
|
|
|
|
| Operating expenses |
|
|
127,816 |
|
|
|
110,679 |
|
| Less: |
|
|
|
|
|
|
| Accelerated Expense for
Retirement |
|
|
— |
|
|
|
1,965 |
|
| Branch Closure Expense |
|
|
— |
|
|
|
175 |
|
| Total operating expense |
|
|
127,816 |
|
|
|
108,539 |
|
| |
|
|
|
|
|
|
| Efficiency ratio |
|
|
77.11 |
% |
|
|
61.74 |
% |
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