Peapack-Gladstone Financial Corporation (PGC) Bundle
A Brief History of Peapack-Gladstone Financial Corporation
Founded in 1921, Peapack-Gladstone Financial Corporation is a New Jersey-based bank holding company. It operates Peapack-Gladstone Bank, which provides a range of financial services, including private banking, wealth management, and commercial banking. As of September 30, 2024, the corporation reported total assets of $6.8 billion and assets under management/administration of $12.1 billion.
Financial Performance Overview
For the nine months ended September 30, 2024, Peapack-Gladstone Financial Corporation reported the following financial metrics:
| Financial Metric | 2024 ($ millions) | 2023 ($ millions) | Change (%) |
|---|---|---|---|
| Net Interest Income | 107.10 | 119.41 | -10% |
| Wealth Management Fee Income | 45.98 | 41.99 | 10% |
| Total Revenue | 166.29 | 175.40 | -5% |
| Net Income | 23.75 | 40.26 | -41% |
| Diluted EPS | 1.34 | 2.23 | -40% |
Operational Highlights
As of September 30, 2024, total deposits increased by $661 million to $5.9 billion, with core relationship deposits growing by $782 million, excluding a decline of $121 million in high-cost deposits. The company has also repaid $404 million in short-term borrowings during the same period.
Wealth Management Division
The Wealth Management Division achieved a record AUM/AUA of $12.1 billion, up from $10.9 billion at the end of 2023. In Q3 2024, gross new business inflows totaled $140 million, contributing to fee income of $15.15 million, which represents 27% of total revenue for the quarter.
| Wealth Management Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| AUM/AUA | 12.1 billion | 10.9 billion | 11% |
| Fee Income | 15.15 million | 13.98 million | 8% |
Credit Quality and Provision for Losses
As of September 30, 2024, nonperforming assets were reported at $80.5 million, or 1.18% of total assets. The provision for credit losses was $5.76 million, a decrease of 36% compared to the same period in 2023.
| Credit Quality Metrics | September 30, 2024 | June 30, 2024 | Change (%) |
|---|---|---|---|
| Nonperforming Assets | 80.5 million | 82.1 million | -2% |
| Provision for Credit Losses | 5.76 million | 9.06 million | -36% |
Capital Management
As of September 30, 2024, the tangible book value per share increased to $32.00, up 6% from $30.31 at the end of 2023. The company's Tier 1 Leverage Ratio stood at 10.99%, and the Common Equity Tier 1 Ratio was 13.75%, both significantly above regulatory well-capitalized standards.
Peapack-Gladstone Financial Corporation has demonstrated resilience in a challenging economic environment while maintaining a commitment to growth through strategic expansions, particularly in the New York market.
A Who Owns Peapack-Gladstone Financial Corporation (PGC)
Major Shareholders
As of 2024, the ownership structure of Peapack-Gladstone Financial Corporation (PGC) includes a mix of institutional investors, mutual funds, and individual shareholders. The following table summarizes the significant shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership (%) |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 9.85 |
| Institutional Investor | The Vanguard Group, Inc. | 8.50 |
| Institutional Investor | Dimensional Fund Advisors LP | 5.20 |
| Mutual Fund | American Funds Capital World Growth and Income Fund | 4.75 |
| Individual Investor | Douglas L. Kennedy (CEO) | 1.35 |
| Individual Investor | Frank A. Cavallaro (CFO) | 1.10 |
| Others | Other Shareholders | 69.35 |
Market Capitalization
As of October 2024, Peapack-Gladstone Financial Corporation had a market capitalization of approximately $600 million. This figure is derived from the current stock price of around $34.00 per share and the total number of outstanding shares, which is approximately 17.6 million shares.
Share Price Performance
The stock price of PGC has shown variability throughout 2024. The following data illustrates the stock price performance:
| Date | Stock Price ($) | Change (%) |
|---|---|---|
| January 2024 | 32.50 | — |
| April 2024 | 30.00 | -7.69 |
| July 2024 | 35.00 | 16.67 |
| October 2024 | 34.00 | -2.86 |
Insider Transactions
Insider trading activities have been noted throughout 2024, with key executives engaging in stock purchases and sales. The following table summarizes notable insider transactions:
| Insider | Transaction Type | Shares | Price ($) | Date |
|---|---|---|---|---|
| Douglas L. Kennedy | Purchase | 10,000 | 30.00 | March 15, 2024 |
| Frank A. Cavallaro | Sale | 5,000 | 34.00 | August 10, 2024 |
| Board Member | Purchase | 2,500 | 32.00 | September 5, 2024 |
Dividends
Peapack-Gladstone Financial Corporation has declared a quarterly dividend of $0.05 per share, payable on November 22, 2024, to shareholders of record as of November 7, 2024. This represents a commitment to returning capital to shareholders amidst fluctuating earnings.
Ownership Trends
The ownership trends indicate a gradual increase in institutional investment in PGC, reflecting growing confidence in the company’s operational strategies and financial health. The total number of institutional shares held has increased by approximately 12% over the past year.
Conclusion on Ownership Composition
Overall, Peapack-Gladstone Financial Corporation's ownership is characterized by a diverse base of institutional and individual investors, with a strong commitment to enhancing shareholder value through prudent management and strategic growth initiatives.
Peapack-Gladstone Financial Corporation (PGC) Mission Statement
As of 2024, Peapack-Gladstone Financial Corporation (PGC) emphasizes its commitment to providing exceptional client service through a personalized banking experience. The mission statement reflects the company's dedication to enhancing shareholder value while maintaining a strong focus on community engagement and sustainable growth. The organization aims to leverage its innovative banking solutions to meet the diverse needs of its clients.
Financial Performance Overview
In the third quarter of 2024, PGC reported a net income of $7.6 million, with diluted earnings per share (EPS) of $0.43, compared to $7.5 million and $0.42 in the previous quarter. The net interest income increased by $2.6 million or 8%, reaching $37.7 million, driven by an improved net interest margin (NIM) of 2.34%.
Deposits and Liquidity
As of September 30, 2024, total deposits rose to $5.9 billion, reflecting an increase of $661 million year-to-date. This growth was attributed to strong core deposit relationships and a significant rise in noninterest-bearing demand deposits, which grew by $130 million. The company's liquidity position was strengthened, with total on and off-balance sheet liquidity amounting to $4.2 billion, 293% of total uninsured deposits.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income ($ millions) | 7.6 | 7.5 | 8.8 |
| Diluted EPS | 0.43 | 0.42 | 0.49 |
| Net Interest Income ($ millions) | 37.7 | 35.0 | 36.5 |
| Net Interest Margin (%) | 2.34 | 2.25 | 2.28 |
| Total Deposits ($ billions) | 5.9 | 5.3 | 5.2 |
| Liquidity ($ billions) | 4.2 | 3.8 | 3.5 |
Wealth Management Performance
The Wealth Management Division reported assets under management (AUM) of $12.1 billion as of September 30, 2024, up from $10.9 billion at the end of 2023. Wealth management fee income for Q3 2024 was $15.2 million, comprising 27% of total revenue.
Loan Portfolio and Credit Quality
Total loans stood at $5.3 billion as of September 30, 2024, a decline of $116 million from the previous year, primarily due to repayments and tighter lending standards. However, there was a quarterly increase of $51 million in outstanding loans, driven by growth in commercial and industrial (C&I) lending, which represented 42% of the total loan portfolio.
Capital Management
PGC's capital position showed resilience, with tangible book value per share increasing to $32.00, a 6% rise from December 31, 2023. The company declared a cash dividend of $0.05 per share on September 25, 2024, payable on November 22, 2024.
| Capital Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Tangible Book Value per Share | 32.00 | 30.31 | 28.77 |
| Book Value per Share | 34.57 | 32.90 | 31.37 |
| Tier 1 Capital Ratio (%) | 11.67 | 11.43 | 11.13 |
| Common Equity Tier 1 Ratio (%) | 13.75 | 13.48 | 13.22 |
Strategic Initiatives
PGC's strategic focus includes expanding its presence in the metro New York market, with a "Single Point of Contact" private banking strategy. This initiative is expected to enhance client relationships and drive future earnings.
How Peapack-Gladstone Financial Corporation (PGC) Works
Business Model Overview
Peapack-Gladstone Financial Corporation operates primarily as a bank holding company, offering a range of financial services through its subsidiaries. The core services include commercial banking, wealth management, and capital markets activities. The company's strategy focuses on a personalized banking approach, characterized by its "Single Point of Contact" model for private banking clients.
Financial Performance
As of September 30, 2024, Peapack-Gladstone reported a net income of $7.6 million, with diluted earnings per share of $0.43. The net interest income for the third quarter of 2024 was $37.7 million, reflecting an increase of 8% from $35.0 million in the previous quarter. The net interest margin for the quarter was 2.34%, up from 2.25% in the prior quarter.
Wealth Management Division
The Wealth Management Division saw assets under management (AUM) reach a record $12.1 billion as of September 30, 2024, compared to $10.9 billion at the end of 2023. The division generated $15.2 million in fee income, accounting for 27% of total revenue for the quarter.
Deposit Growth and Banking Operations
Total deposits increased by $661 million to $5.9 billion at September 30, 2024, up from $5.3 billion at December 31, 2023. This growth was driven by a rise in noninterest-bearing demand deposits, which grew by $130 million.
| Period | Total Deposits ($ Million) | Net Interest Income ($ Million) | Net Interest Margin (%) |
|---|---|---|---|
| Q3 2024 | 5,900 | 37.7 | 2.34 |
| Q2 2024 | 5,300 | 35.0 | 2.25 |
| Q1 2024 | 5,200 | 36.5 | 2.28 |
Loan Portfolio
Total loans decreased by $116 million to $5.3 billion as of September 30, 2024, primarily due to repayments and tighter lending standards. However, there was an increase of $51 million in outstanding loans during the third quarter. Commercial and industrial loans represented 42% of the total loan portfolio.
Operating Expenses
Operating expenses for Q3 2024 were reported at $44.6 million, compared to $43.1 million in Q2 2024 and $37.4 million in Q3 2023.
Capital Management
The company's capital position improved during the third quarter, with a tangible book value per share of $32.00, a 6% increase from $30.31 at the end of 2023. The total accumulated other comprehensive loss was $54.8 million as of September 30, 2024.
Asset Quality
As of September 30, 2024, nonperforming assets totaled $80.5 million, or 1.18% of total assets. The allowance for credit losses was $71.3 million, representing 1.34% of total loans.
| Metric | Value |
|---|---|
| Net Income ($ Million) | 7.6 |
| Return on Average Assets (%) | 0.46 |
| Return on Average Equity (%) | 5.12 |
| Effective Tax Rate (%) | 29.4 |
Market Expansion
Peapack-Gladstone has been expanding its presence in the metro New York market, managing over $730 million in customer relationship deposits as of Q3 2024. This initiative is expected to become accretive to earnings by early 2025.
How Peapack-Gladstone Financial Corporation (PGC) Makes Money
Revenue Streams
Peapack-Gladstone Financial Corporation (PGC) generates revenue through various channels, primarily focusing on net interest income, wealth management fees, and other non-interest income sources.
| Revenue Source | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) | Change (%) |
|---|---|---|---|
| Net Interest Income | $37.68 | $36.52 | 3% |
| Wealth Management Fee Income | $15.15 | $13.98 | 8% |
| Capital Markets Activity | $0.44 | $0.61 | -28% |
| Other Income | $3.35 | $4.76 | -30% |
| Total Revenue | $56.62 | $55.87 | 1% |
Net Interest Income
As of Q3 2024, PGC reported a net interest income of $37.68 million, which reflects an increase of $1.16 million from the previous year. The net interest margin (NIM) improved to 2.34%, up from 2.28% in Q3 2023, driven by a favorable shift in the composition of interest-earning assets and a rise in noninterest-bearing demand deposits.
Wealth Management
The wealth management division of PGC has shown significant growth, with assets under management (AUM) reaching $12.1 billion as of September 30, 2024, compared to $10.9 billion at the end of 2023. Wealth management fee income for Q3 2024 was $15.15 million, contributing to 27% of total revenue for the quarter.
Commercial Banking Operations
PGC's commercial banking operations include a focus on commercial and industrial (C&I) lending. As of September 30, 2024, total loans were $5.3 billion, reflecting a decline of $116 million from the previous year. However, C&I loans represented 42% of the total loan portfolio, indicating a robust focus on this segment.
Operating Expenses
Total operating expenses for Q3 2024 were reported at $44.65 million, an increase from $43.13 million in Q2 2024. This rise is attributed to the costs associated with the expansion into the New York market and increased employee benefits.
Income and Profitability Metrics
For Q3 2024, the net income was reported at $7.59 million, showing a slight increase from $7.53 million in the prior quarter. The earnings per share (EPS) for the quarter were $0.43, up from $0.42 in the previous quarter.
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income (in millions) | $7.59 | $7.53 | $8.76 |
| Earnings Per Share (EPS) | $0.43 | $0.42 | $0.49 |
| Return on Average Assets (ROAA) | 0.46% | 0.47% | 0.54% |
| Return on Average Equity (ROAE) | 5.12% | 5.22% | 6.20% |
Capital Management
PGC maintains a robust capital position, with the Common Equity Tier 1 Ratio at 11.67% as of September 30, 2024, indicating strong capital adequacy. The tangible book value per share increased to $32.00, compared to $30.31 at the end of 2023.
Asset Quality and Credit Losses
The provision for credit losses for Q3 2024 was $1.22 million, a significant reduction from $3.91 million in Q2 2024. Nonperforming assets were reported at $80.5 million, or 1.18% of total assets, reflecting improved asset quality metrics.
| Asset Quality Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Nonperforming Assets (in millions) | $80.5 | $82.1 | N/A |
| Provision for Credit Losses (in millions) | $1.22 | $3.91 | $5.86 |
| Allowance for Credit Losses (as % of Total Loans) | 1.34% | 1.29% | 1.25% |
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Article updated on 8 Nov 2024
Resources:
- Peapack-Gladstone Financial Corporation (PGC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Peapack-Gladstone Financial Corporation (PGC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Peapack-Gladstone Financial Corporation (PGC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.