Peapack-Gladstone Financial (PGC) - 2024 Q3 - Quarterly Results

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]