Peapack-Gladstone Financial (PGC) - 2025 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2025, was $9,631 thousand, a 27% increase compared to $7,587 thousand in the prior year[14]. - Basic earnings per share increased to $0.55 for the three months ended September 30, 2025, compared to $0.43 for the same period in 2024, reflecting a growth of 27.9%[14]. - Total income for Q3 2025 reached $70,694,000, up from $56,619,000 in Q3 2024, marking a 24.9% year-over-year growth[155]. - Net income for Q3 2025 was $9,631,000, compared to $7,587,000 in Q3 2024, reflecting a 27.0% increase[155]. - For the nine months ended September 30, 2025, total income was $204,794,000, a 23.1% increase from $166,292,000 in the same period of 2024[156]. Asset Growth - Total assets increased to $7,439,642 thousand as of September 30, 2025, up from $7,011,238 thousand at December 31, 2024, representing a growth of 6.1%[11]. - Total deposits grew to $6,562,162 thousand, an increase of 7.2% from $6,129,022 thousand at the end of 2024[11]. - Cash and cash equivalents at the end of the period were $347,186,000 in 2025, down from $492,658,000 in 2024, a decrease of 30%[23]. Loan Performance - Net loans rose to $5,950,325 thousand, a 9.4% increase from $5,439,334 thousand in the previous year[11]. - As of September 30, 2025, total loans outstanding reached $6,018.97 million, an increase from $5,512.33 million as of December 31, 2024, representing a growth of 9.2%[110]. - The multifamily mortgage segment accounted for 29.85% of total loans as of September 30, 2025, slightly down from 32.65% in the previous year[110]. Credit Losses - Provision for credit losses for the three months ended September 30, 2025, was $4,790 thousand, significantly higher than $1,224 thousand in the same period last year[14]. - Provision for credit losses increased significantly to $15,847,000 in 2025 from $5,762,000 in 2024, indicating a rise of 175%[23]. - The allowance for credit losses (ACL) was $68.6 million as of September 30, 2025, down from $73.0 million at December 31, 2024, primarily due to charge-offs of $20.4 million during the nine months ended September 30, 2025[132]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $52,297 thousand, an increase of 17.5% from $44,649 thousand in 2024[14]. - Total operating expenses for Q3 2025 were $57,087,000, up from $45,873,000 in Q3 2024, representing a 24.5% increase[155]. - The company’s total operating expenses for the nine months ended September 30, 2025, were $169,477,000, compared to $133,578,000 in the same period of 2024, an increase of 26.9%[156]. Wealth Management - Wealth management fee income for the nine months ended September 30, 2025, was $47,176 thousand, up from $45,976 thousand in the previous year[14]. - The Wealth Management Division generates revenue primarily from wealth management fee income and assets under management (AUM), with fees collected on a tiered schedule based on market value[34]. Shareholder Returns - Cash dividends declared on common stock for the three months ended September 30, 2025, were $877 thousand, with a dividend of $0.05 per share[18]. - The company repurchased 100,000 shares during the three months ended September 30, 2025, at a cost of $2,666 thousand[18]. - The total number of common shares outstanding as of September 30, 2025, was 17,548,471, a decrease from 17,577,747 shares as of September 30, 2024[18]. Securities and Investments - The total fair value of securities available for sale as of September 30, 2025, was $756,578,000, compared to $784,544,000 as of December 31, 2024, showing a decrease of 3.5%[104]. - The company reported unrealized losses on total securities available for sale amounting to $75.238 million as of September 30, 2025, compared to $100.521 million as of December 31, 2024, indicating a reduction in losses[107]. - The total securities, including available for sale and held to maturity, were valued at $536.94 million with unrealized losses of $84.395 million as of September 30, 2025[107]. Risk Management - The Company employs the Current Expected Credit Loss (CECL) methodology for determining the allowance for credit losses, requiring immediate recognition of estimated credit losses[47]. - The Company has engaged an independent loan review firm to validate risk ratings and ensure compliance with policies, reviewing loans greater than $1,000,000 quarterly[113]. - Current period gross charge-offs for commercial and industrial loans amount to $11,086,000, indicating potential credit quality concerns[120]. Other Income - The company reported a total of $20,121 thousand in other income for the three months ended September 30, 2025, compared to $18,938 thousand in the same period of 2024, reflecting a growth of 6.3%[14]. - The company reported a total of $8,082,000 in other income for the nine months ended September 30, 2025, compared to $8,252,000 for the same period in 2024, reflecting a decrease of 2.1%[177].