Financial Performance and Position - As of December 31, 2024, Peapack-Gladstone Financial Corporation's Wealth Management Division had $11.9 billion in assets under management and/or administration[37]. - The Company and the Bank were in compliance with capital requirements, including a capital conservation buffer, as of December 31, 2024[63]. - The capital conservation buffer requires a minimum CET1 to risk-weighted assets ratio of at least 7.0 percent, Tier 1 capital to risk-weighted assets ratio of at least 8.5 percent, and total capital to risk-weighted assets ratio of at least 10.5 percent[62]. - The Bank's capital ratios were all above the minimum levels required for it to be considered a "well capitalized" financial institution as of December 31, 2024[65]. - As of December 31, 2024, the company's total multifamily rent regulated exposure in New York was approximately $939 million, representing 17% of the total loan portfolio[100]. - The company's loan portfolio included loans to lessors of office buildings amounting to $95.3 million, or 1.7% of total loans, and borrowers in the retail industry totaling $210.6 million, or 3.8% of total loans[98]. - The company's commercial real estate loans represented 347% of total bank capital as of December 31, 2024, indicating a significant concentration in this area[104]. - The company maintained a debt securities portfolio of $886.2 million as of December 31, 2024, with $784.5 million classified as available-for-sale[111]. - The company's stockholders' equity may be adversely affected by unrealized net losses on securities available-for-sale due to changes in interest rates[110]. Economic and Market Conditions - A deterioration in economic conditions could lead to an increase in loan delinquencies and non-performing assets, adversely affecting the company's financial condition[95]. - The company is sensitive to adverse changes in the local economy, particularly in Central and Northern New Jersey, Pennsylvania, and New York City, which could impact its ability to attract deposits[93]. - Inflation and rising costs of goods and services could negatively impact the company's operational expenses and its customers' ability to repay loans[95]. - The company faces regulatory scrutiny regarding its commercial real estate loan portfolio, which may require additional policies and procedures that could affect profitability[105]. Regulatory Compliance and Risks - The Company is subject to FRB policies that may limit its ability to pay dividends if the subsidiary bank becomes undercapitalized[80]. - The ability of the Company to pay dividends to its shareholders depends on whether the Bank pays dividends to it, subject to restrictions under the New Jersey Banking Act[84]. - The Sarbanes-Oxley Act of 2002 requires enhanced and timely disclosure of corporate information, and the Company has existing policies to comply with this act[86]. - The company is subject to various federal laws that require it to maintain comprehensive programs related to anti-money laundering and customer identification[118]. - The company is subject to regulatory compliance burdens and costs due to the Dodd-Frank Act, which may restrict certain products and services[115]. Interest Rate Sensitivity - The Federal Reserve Board reduced benchmark interest rates by 50 basis points in September and an additional 25 basis points in November 2024, impacting the company's interest income[94]. - Changes in interest rates could adversely affect the company's net interest income, which is primarily derived from the difference between interest income earned and interest expense incurred[107]. - A reduction in interest rates may lead to increased prepayments of loans and mortgage-backed securities, creating reinvestment risk for the company[109]. - The Company faces substantial competition in originating loans and attracting deposits from other financial institutions, which may adversely affect profitability[133]. - The Company's interest rate sensitivity models indicate it is asset sensitive as of December 31, 2024, with net interest income expected to improve in a rising rate environment[315]. - In an immediate and sustained 100 basis point increase in market rates, net interest income would decrease approximately 0.5 percent for year 1 and increase 1.6 percent for year 2 compared to a flat interest rate scenario[313]. Employee Engagement and Community Involvement - The company had 620 full-time and part-time employees as of December 31, 2024, with a focus on talent development and employee engagement[19][24]. - The company performed over 1,600 hours of community service and provided financial support to more than 330 charitable organizations in 2024[35]. - The company emphasizes a relationship-based approach while diversifying its business model to remain competitive in the banking sector[47]. - The company has a strong commitment to diversity, equity, and inclusion, with initiatives to improve representation in senior roles and maintain hiring levels reflective of the communities served[26]. - The company offers a comprehensive suite of health insurance benefits, paid time off, and a 401(k) plan with a generous company match to attract and retain talent[33]. Strategic Initiatives - The company initiated the "Refining Our Strategy" phase in 2022 to address industry headwinds, including margin pressure and increased compliance costs[46]. - The company aims to expand its footprint in the metropolitan New York region by hiring experienced professionals in various sectors, focusing on generating core deposits[47]. - The company is focused on providing high-touch client service through its wealth management and commercial banking divisions, differentiating itself from larger competitors[52]. Credit and Liquidity Risks - The company maintains allowances for credit losses, which may need to be increased due to continuing economic deterioration, potentially reducing net income and capital[101]. - The company's exposure to credit risk is heightened due to its focus on small- and medium-sized businesses, which are less able to withstand economic pressures[97]. - The company faces risks related to liquidity, as a decrease in client deposits could lead to higher funding costs and reduced net interest income[128]. - The company is exposed to environmental liability risks associated with its lending activities, which could materially affect its financial condition[106]. Wealth Management and Revenue Sources - The wealth management business derives the majority of its revenue from non-interest income, which is sensitive to fluctuations in assets under management[144]. - The wealth management industry is subject to extensive regulation, and non-compliance could lead to penalties that adversely affect operating results[146].

Earnings Performance - Peapack-Gladstone reported quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.47 per share, representing a 10.64% earnings surprise [1] - The company's earnings per share increased from $0.50 in the same quarter last year [1] - Over the last four quarters, the company has surpassed consensus EPS estimates two times [2] Revenue Performance - Peapack-Gladstone posted revenues of $61.84 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.72% [2] - This represents an increase from year-ago revenues of $54.27 million [2] - The company has topped consensus revenue estimates once over the last four quarters [2] Stock Performance - Peapack-Gladstone shares have added about 3.2% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3] - The stock's immediate price movement will depend on management's commentary on the earnings call [3] Future Outlook - The current consensus EPS estimate is $0.54 on $62.6 million in revenues for the coming quarter [7] - For the current fiscal year, the consensus EPS estimate is $2.73 on $265 million in revenues [7] - The estimate revisions trend for Peapack-Gladstone is mixed, translating into a Zacks Rank 3 (Hold) [6] Industry Context - Peapack-Gladstone belongs to the Zacks Banks - Northeast industry, which is currently in the top 9% of the 250 plus Zacks industries [8] - The top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - LCNB, another company in the same industry, is expected to post quarterly earnings of $0.30 per share, representing a year-over-year change of -11.8% [9] - LCNB's revenues are expected to be $20.9 million, up 8.5% from the year-ago quarter [9]

Financial Performance - Net income for Q4 2024 was $9.2 million, with diluted EPS of $0.52, compared to $7.6 million and $0.43 in Q3 2024[4] - Total revenue for the three months ended December 31, 2024, reached $61,836,000, up from $54,265,000 in the prior year, marking an increase of 14%[44] - Net income for the three months ended December 31, 2024, was $9,240,000, compared to $8,599,000 in the same quarter of 2023, indicating a growth of 7.4%[44] - For the twelve months ended December 31, 2024, net income decreased to $32,988,000 from $48,854,000 in 2023, a decline of 32%[47] - Earnings per share (basic) for the twelve months ended December 31, 2024, was $1.87, a decrease of 32% from $2.74 in 2023[47] Deposits and Loans - Core relationship deposits grew by $438 million to $5.3 billion, representing an annualized growth rate of 36%[3] - Total deposits increased by $855 million to $6.1 billion, with a net growth of $1.2 billion excluding high-cost deposits that rolled off[9] - Total loans increased by $85 million to $5.5 billion, with commercial and industrial lending representing 43% of the total loan portfolio[9] - Noninterest-bearing demand deposits increased by $155 million to $1.1 billion, representing 18% of total deposits[9] - Total loans reached $5,520,920 thousand, an increase of 3.8% from $5,320,167 thousand in the prior quarter[50] Interest Income and Margin - Net interest income increased by $4.2 million, or 11%, to $41.9 million in Q4 2024, driven by growth in average interest-earning assets[5] - The net interest margin improved to 2.46% in Q4 2024, up from 2.34% in Q3 2024[5] - The Company's Net Interest Income (NII) for Q4 2024 was $41.9 million, an increase of $4.2 million from Q3 2024, and a $5.2 million increase compared to Q4 2023, with a Net Interest Margin (NIM) of 2.46%[21] - Interest income for the three months ended December 31, 2024, was $86,166,000, an increase from $80,178,000 in the same period last year, representing a growth of 7.4%[44] - The net interest margin for the three months ended December 31, 2024, improved to 2.46%, compared to 2.29% for the same period in 2023[66] Operating Expenses - Total operating expenses increased to $47.9 million in Q4 2024, up from $44.6 million in Q3 2024 and $37.6 million in Q4 2023, primarily due to expansion into New York City[27][28] - Total operating expenses for the twelve months ended December 31, 2024, increased to $175,676,000, up 18% from $148,295,000 in 2023[47] - The efficiency ratio improved to 78.09% for the three months ended December 31, 2024, compared to 79.60% in the previous quarter[83] Credit Quality - Nonperforming assets rose to $100.2 million, or 1.43% of total assets, at December 31, 2024, compared to $80.5 million, or 1.18% of total assets, at September 30, 2024[30] - The provision for credit losses was $1.8 million in Q4 2024, compared to $1.2 million in Q3 2024 and $5.1 million in Q4 2023, driven by loan growth and specific reserves for nonperforming loans[31] - The allowance for credit losses was $73.0 million, or 1.32% of total loans, at December 31, 2024, compared to $71.3 million, or 1.34% of total loans, at September 30, 2024[32] - Nonperforming loans to total loans ratio rose to 1.81% from 1.51% in the previous quarter, indicating a decline in asset quality[53] Assets and Equity - Total assets increased to $7,011,238 thousand as of December 31, 2024, up from $6,793,792 thousand in the previous quarter, representing a growth of 3.2%[50] - Shareholders' equity as of December 31, 2024, was $605,849,000, a slight decrease from $607,614,000 in the previous quarter[80] - Tangible book value per share increased by 5% to $31.89 at December 31, 2024, from $30.31 at December 31, 2023[34] Rebranding and Strategic Changes - The Company re-branded to Peapack Private Bank & Trust effective January 1, 2025, reflecting its commitment to personal and commercial banking[6]

Core Viewpoint - Plato Gold Corp. has engaged Red Cloud Securities to provide liquidity services to enhance the market stability and liquidity of its common shares, subject to regulatory approval [1][2]. Group 1: Company Overview - Plato Gold Corp. is a Canadian exploration company listed on the TSX Venture Exchange, OTC Markets, and Frankfurt Exchange, with projects located in Timmins, Ontario, and Santa Cruz, Argentina [6]. - The company holds a 95% interest in Winnipeg Minerals S.A., which has mineral rights totaling 9,672 hectares in Argentina, with potential for gold and silver [7]. - The Timmins project includes four properties focused on gold, while the Good Hope Niobium Project targets niobium over approximately 6,035 hectares [6][7]. Group 2: Agreement with Red Cloud Securities - Under the agreement, Plato Gold Corp. will pay Red Cloud $5,000 per month in advance, with the engagement being ongoing and terminable by either party with 30 days' notice [2]. - The relationship between Plato and Red Cloud is arm's length, and the agreement aims to maintain market stability and liquidity rather than being a formal market-making agreement [2]. Group 3: Red Cloud Securities Overview - Red Cloud Securities is a registered Investment Dealer and a member of the Canadian Investment Regulatory Organization (CIRO), focusing on providing capital market services to the junior resource sector [4]. - The firm was founded by capital markets professionals and offers a comprehensive platform for small public and private companies [4].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Peapack-Gladstone (PGC) - Peapack-Gladstone currently holds a Momentum Style Score of B, indicating potential for solid momentum [3] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with Style Scores of A or B [4] Performance Metrics - PGC shares have increased by 12.47% over the past week, outperforming the Zacks Banks - Northeast industry, which rose by 6.45% [6] - Over the past month, PGC's price change is 19%, significantly higher than the industry's 5.58% [6] - In the last quarter, PGC shares rose by 38.38%, and over the past year, they gained 41.12%, compared to the S&P 500's increases of 9.45% and 33.9%, respectively [7] Trading Volume - PGC's average 20-day trading volume is 108,681 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - Recent earnings estimate revisions show one upward revision for the full year, increasing the consensus estimate from $1.68 to $1.82 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions in the same period [10]

Financial Performance - Net income for the three months ended September 30, 2024, was $7,587 thousand, down from $8,755 thousand, a decrease of 13.3%[9] - Basic earnings per share decreased to $0.43 from $0.49, reflecting a decline of 12.2%[9] - Comprehensive income for the nine months ended September 30, 2024, was $33,806,000, compared to $32,813,000 for the same period in 2023, reflecting an increase of 3%[11] - Net income for the nine months ended September 30, 2024, was $23,748,000, a decrease of 41.0% from $40,255,000 for the same period in 2023[14] - The company reported a total of 23,726 nonaccrual loans with no allowance for credit loss as of September 30, 2024, reflecting ongoing monitoring of loan performance[107] Asset and Liability Management - Total assets increased to $6,793,792 thousand as of September 30, 2024, up from $6,476,857 thousand at December 31, 2023, representing a growth of approximately 4.9%[7] - Total deposits rose to $5,935,386 thousand, an increase of 12.5% compared to $5,274,114 thousand at the end of 2023[7] - The total shareholders' equity as of September 30, 2024, was $588,322,000, compared to $565,069,000 as of September 30, 2023[13] - Total cash and cash equivalents at the end of the period increased to $492,658,000 from $187,869,000, reflecting a significant increase of about 162%[16] - The company has available unused short-term overnight borrowing capacity of $1.8 billion through the FHLB and $1.8 billion at the Federal Reserve Bank of New York[151] Loan Performance - Total loans outstanding as of September 30, 2024, amounted to $5,315,417, a decrease from $5,429,325 as of December 31, 2023, representing a decline of approximately 2.1%[105] - The company experienced a decrease in retained earnings from $408,481,000 as of September 30, 2023, to $394,094,000 as of September 30, 2024[14] - The company reported a net cash provided by financing activities of $243,052,000, up from $129,826,000 in the same period last year, indicating an increase of approximately 87%[16] - The company reported a total of $1,080,209 thousand in loans originated, a decrease from $1,292,990 thousand in the prior period, representing a decline of approximately 16.4%[121] - The company did not record any allowance for credit losses for the nine months ended September 30, 2024, indicating confidence in the credit quality of its securities[103] Income and Expenses - Operating expenses increased to $44,649 thousand for the three months ended September 30, 2024, up from $37,413 thousand, a rise of 19.5%[9] - Total noninterest income for the three months ended September 30, 2024, was $18,938, a decrease of 2.14% from $19,354 in the same period of 2023[179] - Wealth management fee income increased to $15,150 thousand from $13,975 thousand, a growth of 8.4%[9] - The company recorded a loss on the sale of property amounting to $4,000 for the nine months ended September 30, 2024[185] - The total operating expense for the Banking segment in Q3 2024 was $35,889,000, while Peapack Private's was $9,984,000, totaling $45,873,000[155] Credit Quality and Provisions - Provision for credit losses decreased significantly to $1,224 thousand from $5,856 thousand year-over-year, indicating improved credit quality[9] - The allowance for credit losses (ACL) is determined using a non-linear discounted cash flow (DCF) model, which captures losses over the historical charge-off and prepayment cycle[40] - The company reported a provision for credit losses of $5,762,000, down from $9,065,000 in the previous year, indicating a decrease of about 36%[16] - The ACL as a percentage of loans was 1.34% at September 30, 2024, compared to 1.21% at December 31, 2023, indicating a rise in credit risk assessment[137] - The company has adopted CECL, evaluating loans in foreclosure on an individual basis for potential loss and allowance adequacy[116] Shareholder Activities - The company declared cash dividends of $0.05 per share, totaling $(882,000) for the three months ended September 30, 2024[13] - The company repurchased 100,000 shares during the three months ended September 30, 2024, at a cost of $(2,592,000)[13] - Cash dividends declared on common stock were $2,656,000, compared to $2,666,000 in the previous year, showing a slight decrease of about 0.4%[16] - The Company has a total of $7.8 million in unrecognized compensation costs related to service-based and performance-based restricted stock units, expected to be recognized over a weighted average period of 1.07 years[73] - Total shares issued under the Employee Stock Purchase Plan (ESPP) during Q3 2024 was 11,257, compared to 8,850 in Q3 2023[81] Market and Economic Conditions - The company has no overnight borrowings with the Federal Home Loan Bank (FHLB) as of September 30, 2024, compared to $403.8 million at December 31, 2023[151] - The company has elected the fair value option for certain loans held for sale, indicating a strategic approach to asset management[170] - The company reported unrealized holding gains of $23,974,000 for the three months ended September 30, 2024, compared to a loss of $(20,629,000) for the same period in 2023[11] - The company recorded a net unrealized holding loss on securities available for sale of $(57,614,000) as of September 30, 2024, compared to $(91,034,000) as of September 30, 2023[190] - The total fair value of individually evaluated loans includes $22,947,000 for commercial and industrial loans as of December 31, 2023[174]

Core Viewpoint - Peapack-Gladstone Financial Corporation is set to rebrand as Peapack Private Bank & Trust on January 1, 2025, unifying its banking and wealth management divisions under one name to enhance its market presence in the New York metropolitan area [1][2][3]. Group 1: Rebranding Strategy - The rebranding aims to leverage established brand equity while expanding the institution's reach in the New York metropolitan market [2][3]. - The new name reflects a holistic approach, allowing relationship managers to provide a comprehensive suite of solutions through a single point of contact [3][4]. - The decision to rebrand followed a multi-year research process, including brand discovery, awareness studies, and direct client feedback [4][5]. Group 2: Company Overview - Peapack-Gladstone Financial Corporation, founded in 1921, is a New Jersey bank holding company with total assets of $6.8 billion and assets under management of $12.1 billion as of September 30, 2024 [6]. - The company offers a client-centric approach, providing customized banking solutions to individuals, families, and businesses, emphasizing exceptional client service [6].

Core Insights - Peapack-Gladstone (PGC) reported revenue of $56.62 million for Q3 2024, a year-over-year increase of 1.3% [1] - The earnings per share (EPS) for the same period was $0.43, down from $0.50 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate by 2.78%, while the EPS exceeded the consensus estimate by 2.38% [1] Financial Metrics - Net interest margin stood at 2.3%, matching the average estimate from two analysts [1] - The efficiency ratio was reported at 79.6%, higher than the average estimate of 75.9% from two analysts [1] - Total non-interest income was $18.94 million, below the estimated $21.61 million [1] - Net interest income reached $37.68 million, surpassing the average estimate of $36.67 million [1] Stock Performance - Peapack-Gladstone shares have returned +3.6% over the past month, outperforming the Zacks S&P 500 composite's +2.8% change [2] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [2]

Company Performance - Peapack-Gladstone (PGC) reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.42 per share, but down from $0.50 per share a year ago, indicating a 14% year-over-year decline [1] - The company posted revenues of $56.62 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.78%, and showing a slight increase from $55.87 million year-over-year [1] - Over the last four quarters, Peapack-Gladstone has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [1] Stock Performance - Peapack-Gladstone shares have declined approximately 4.6% since the beginning of the year, contrasting with the S&P 500's gain of 22.7% [2] - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $59.08 million, and for the current fiscal year, it is $1.75 on revenues of $227.16 million [4] Industry Outlook - The Banks - Northeast industry, to which Peapack-Gladstone belongs, is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [5] - The performance of Peapack-Gladstone's stock may be influenced by the overall industry outlook, as empirical research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than a factor of 2 to 1 [5]

Financial Performance - Net income for Q3 2024 was $7.6 million, with diluted EPS of $0.43, compared to $7.5 million and $0.42 in Q2 2024[2] - Net income for the three months ended September 30, 2024, was $7.587 million, compared to $8.599 million for the same period last year, reflecting a decline of 11.8%[27] - Net income for the nine months ended September 30, 2024, was $23,748,000, a decrease of 41.1% compared to $40,255,000 for the same period in 2023[50] - Total revenue for the same period was $56.619 million, slightly up from $56.597 million in the previous quarter[27] - Total recurring revenue for the quarter ended September 30, 2024, was $56,090,000, slightly down from $56,658,000 in the previous quarter[52] Deposits and Loans - Deposits grew by $279 million to $5.9 billion, representing an annualized growth rate of 20%[2] - Year-to-date total deposits increased by $661 million, with core relationship deposits growing by $782 million in 2024[5] - Total deposits increased by $661 million to $5.9 billion at September 30, 2024, enhancing balance sheet liquidity[14] - Total loans declined by $116 million, or 2%, to $5.3 billion at September 30, 2024, primarily due to repayments and tighter lending standards[12] - Total loans reached $5,256,186 thousand, generating net interest income of $73,378 thousand and an annualized yield of 5.58%[41] Wealth Management - Wealth Management AUM/AUA reached a record $12.1 billion, up from $10.9 billion at the end of 2023[4] - Wealth Management AUM/AUA reached a record high of $12.1 billion, up from $10.9 billion at December 31, 2023, with new business inflows of $547 million[11] - Assets under management in the Private Wealth Management Division reached $12.1 billion, up from $11.5 billion in the previous quarter, indicating a growth of 5.2%[32] Interest Income and Margin - Net interest income increased by $2.6 million, or 8%, to $37.7 million, driven by an improved net interest margin of 2.34%[3] - Net Interest Income (NII) for Q3 2024 was $37.7 million, an increase of $2.6 million from Q2 2024, with a Net Interest Margin (NIM) of 2.34%[13] - The net interest margin (tax-equivalent basis) improved to 2.34%, compared to 2.29% in the previous quarter[27] - The annualized yield on total interest-earning assets increased to 5.18% for the three months ended September 30, 2024, compared to 4.91% for the same period in 2023[40] Credit Losses and Allowance - The provision for credit losses was $1.2 million for Q3 2024, down from $3.9 million in Q2 2024, reflecting slower loan growth[21] - The allowance for credit losses increased to $71.3 million, or 1.34% of total loans, compared to $68.0 million at June 30, 2024[22] - The allowance for credit losses stood at $(70,317) million, an increase from $(63,625) million year-over-year, indicating a rise in provisions for potential loan losses[40] Operating Expenses - Operating expenses rose to $44.6 million for Q3 2024, reflecting the full run rate of expenses associated with the Company's expansion into New York City[18] - Total operating expenses for the quarter were $44.649 million, an increase from $37.616 million in the same period last year[27] - Operating expenses for the nine months ended September 30, 2024, were $127,816,000, up from $110,679,000 in the same period in 2023[53] Shareholder Equity and Book Value - Tangible book value per share increased by 6% to $32.00, while book value per share rose by 5% to $34.57[6] - The Company's capital position increased by net income of $7.6 million, despite repurchasing 100,000 shares for $2.6 million[22] - Shareholders' equity increased to $607,614 million from $588,322 million, representing a growth of 3.3%[32] - Book value per share increased to $34.57 from $32.90 in the previous quarter, reflecting a growth of 5.1%[35] Market Expansion and Future Outlook - The Company expects its expansion into the metro New York market to become accretive to earnings in early 2025[4] - The company plans to continue focusing on market expansion and new product development to drive future growth[46] Ratings and Financial Stability - Moody's reaffirmed the Company's investment grade ratings with a stable outlook[4] - Nonperforming assets were $80.5 million, or 1.18% of total assets, at September 30, 2024, showing a slight improvement from the previous quarter[20] - Nonperforming loans to total loans ratio improved to 1.51% from 1.56% in the prior quarter[33]