Peapack-Gladstone Financial (US:PGC)2022-08-09 13:55Financial Performance - Net income for the second quarter of 2022 was $20,100 thousand, an increase of 39.0% from $14,418 thousand in the same quarter of 2021[14]. - Earnings per share (EPS) for the second quarter of 2022 was $1.10, compared to $0.76 in the same quarter of 2021, reflecting a growth of 44.7%[14]. - Net income for the three months ended June 30, 2022, was $20,100 thousand, compared to $14,418 thousand for the same period in 2021, representing a year-over-year increase of 39%[18]. - Net income for the six months ended June 30, 2022, was $33,541,000, an increase of 21.5% compared to $27,596,000 in 2021[23]. - Total comprehensive income for the second quarter of 2022 was $2,311 thousand, compared to $22,767 thousand in the same quarter of 2021, showing a significant decline[17]. Asset and Loan Growth - Total assets increased to $6,151,167 thousand as of June 30, 2022, compared to $6,077,993 thousand at December 31, 2021, reflecting a growth of 1.2%[11]. - Net loans rose to $5,094,851 thousand, up from $4,745,024 thousand, marking an increase of 7.4% year-over-year[11]. - Total loans outstanding as of June 30, 2022, reached $5,153.9 million, an increase from $4,806.7 million as of December 31, 2021, representing a growth of approximately 7.2%[115]. - The balance of retained earnings as of June 30, 2022, was $309,899 thousand, compared to $247,136 thousand as of June 30, 2021, reflecting an increase of approximately 25.4%[21]. Deposits and Funding - Total deposits increased to $5,403,868 thousand as of June 30, 2022, up from $5,266,149 thousand at December 31, 2021, indicating a growth of 2.6%[11]. - Net increase in deposits was $137,719,000, compared to $77,291,000 in the previous year, representing a growth of 78.2%[23]. - Noninterest-bearing demand deposits increased to $1.04 billion (19.30% of total deposits) from $956.5 million (18.16%) year-over-year[148]. Income and Expenses - Net interest income after provision for credit losses reached $41,444 thousand for the three months ended June 30, 2022, compared to $32,945 thousand for the same period in 2021, representing a growth of 25.5%[14]. - Operating expenses for the second quarter of 2022 totaled $32,659 thousand, up from $30,684 thousand in the same quarter of 2021, reflecting a rise of 6.4%[14]. - Total noninterest income for Q2 2022 was $18,508,000, an increase of 4.7% from $17,678,000 in Q2 2021[172]. - Wealth management fees for Q2 2022 reached $13,891,000, up 6.6% from $13,034,000 in Q2 2021[172]. Credit Losses and Allowances - The allowance for credit losses was $59,022 thousand as of June 30, 2022, down from $61,697 thousand at December 31, 2021, indicating a decrease of 4.4%[11]. - The provision for credit losses rose significantly to $3,824,000 from $1,125,000, indicating a substantial increase in expected credit losses[23]. - The Company reported a total allowance for credit losses (ACL) of $59.022 million as of June 30, 2022, based on the CECL methodology[138]. Securities and Investments - Total securities available for sale as of June 30, 2022, had a fair value of $556.8 million, with unrealized losses of $77.7 million[110]. - The total fair value of securities available for sale was $556,791,000 as of June 30, 2022, a decrease from $796,753,000 at December 31, 2021[170]. - The company reported unrealized losses on total securities of $87.1 million as of June 30, 2022, compared to $17.2 million as of December 31, 2021, reflecting a significant increase in market volatility[112]. Stock and Shareholder Activities - Cash dividends declared on common stock for the three months ended June 30, 2022, were $919 thousand, consistent with the previous year’s dividend of $952 thousand[18]. - The company repurchased 200,000 shares during the three months ended June 30, 2022, at a cost of $6,447 thousand, compared to 234,722 shares repurchased for $7,605 thousand in the same period of 2021[18]. - The Company issued 18,923 restricted stock units during the three months ended June 30, 2022, compared to 21,200 units issued in the same period of 2021[18]. Risk Management and Credit Quality - The Company segments its loan portfolio based on common characteristics, including primary residential mortgages, junior lien loans, multifamily properties, and commercial real estate loans[59][60][62][63][64]. - The Company has engaged an independent loan review firm to validate risk ratings and ensure compliance with policies[121]. - The credit risk profile indicates that $4,635.6 million of loans are classified as Pass, with $116.5 million as Special Mention and $50.7 million as Substandard[128]. Lease and Derivative Activities - The Company’s total present value of lease payments as of June 30, 2022, was $14.756 million[204]. - The total notional amount of standalone derivatives was $642.1 million as of June 30, 2022, down from $702.2 million as of December 31, 2021[196]. - The net interest expense recorded on swap transactions for the three months ended June 30, 2022, totaled $679,000, compared to $1.1 million for the same period in 2021[192].