Peapack-Gladstone Financial (PGC) - 2023 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2023, was $8,755 thousand, down 56.5% from $20,126 thousand in the prior year[13]. - Net income for the nine months ended September 30, 2023, was $40,255,000, a decrease of 25% compared to $53,667,000 for the same period in 2022[24]. - The company reported a comprehensive loss of $4,901 thousand for the three months ended September 30, 2023, compared to a comprehensive income of $3,870 thousand in the same period of 2022[16]. - The company reported a comprehensive loss of $13,656,000 for the quarter, which is a significant improvement from the previous year's comprehensive loss of $16,256,000, indicating a positive trend in financial performance[19]. - Net income for the three months ended September 30, 2023, was $8,755,000, down from $20,126,000 in the same period of 2022, a decrease of 56.5%[147]. - Total income was $55,869,000, a decrease of 9.8% from $61,908,000 in the same period of 2022[147]. - Total operating expenses for the nine months ended September 30, 2023, were $119,744,000, compared to $104,811,000 in the same period of 2022, an increase of 14.2%[148]. - Operating expenses for Q3 2023 were $37.413 million, an increase of $3.853 million compared to $33.560 million in Q3 2022[207]. Asset and Loan Growth - Total assets increased to $6,521,581 thousand as of September 30, 2023, up from $6,353,593 thousand at December 31, 2022, representing a growth of 2.65%[11]. - Net loans rose to $5,418,129 thousand, an increase of 3.73% from $5,224,417 thousand at the end of 2022[11]. - Total loans outstanding as of September 30, 2023, amounted to $5,486,721 thousand, an increase from $5,285,246 thousand as of December 31, 2022, representing a growth of approximately 3.8%[107]. - The total recorded investment in nonaccrual loans as of September 30, 2023, was $70,809 thousand, with no loans past due 90 days or over still accruing interest[107]. - The company reported a total of $5.129 billion in subtotal deposits as of September 30, 2023, which is 97.54% of total deposits[140]. Credit Losses and Provisions - The provision for credit losses increased to $5,856 thousand for the three months ended September 30, 2023, compared to $599 thousand for the same period in 2022[13]. - The company reported a provision for credit losses of $9,065,000, significantly higher than the $4,423,000 recorded in the same period last year[24]. - The allowance for credit losses (ACL) increased to $68.6 million as of September 30, 2023, up from $60.8 million at December 31, 2022, representing a growth of approximately 12.9%[130]. - The ACL as a percentage of loans was 1.25% at September 30, 2023, compared to 1.15% at December 31, 2022[130]. - The company reported no allowance for credit losses as of September 30, 2023, due to the belief that unrealized losses were primarily a result of market interest rate changes rather than credit quality deterioration[105]. Deposits and Borrowings - Total deposits increased to $5,259,359 thousand, up from $5,205,164 thousand at the end of 2022, reflecting a growth of 1.04%[11]. - Noninterest-bearing demand deposits decreased to $947.405 million (18.01%) as of September 30, 2023, from $1,246.066 million (23.94%) at December 31, 2022[140]. - The company had overnight borrowings with the Federal Home Loan Bank (FHLB) of $470.6 million at a rate of 5.58% as of September 30, 2023, up from $379.5 million at a rate of 4.61% at December 31, 2022[142]. - The company’s unused short-term overnight borrowing capacity available through the FHLB, correspondent banks, and the Federal Reserve Bank of New York totaled $3.3 billion as of September 30, 2023[142]. Earnings Per Share - Earnings per share (EPS) for the three months ended September 30, 2023, was $0.49, a decrease of 56.0% from $1.11 in the same period last year[13]. - The weighted average number of shares outstanding for diluted EPS was 18,010,127 for the three months ended September 30, 2023, compared to 18,420,661 for the same period in 2022[13]. Noninterest Income - Noninterest income for the three months ended September 30, 2023, was $19,354,000, compared to $16,383,000 in the same period of 2022, reflecting an increase of 18.0%[147]. - Total noninterest income for the nine months ended September 30, 2023, was $55,988, up from $49,605 in the same period of 2022, reflecting an increase of 12.4%[165]. Stock and Shareholder Information - The company declared cash dividends of $0.05 per share, totaling $893,000 for the quarter ended September 30, 2023, consistent with the previous year's dividend declaration[19]. - The number of common shares outstanding decreased from 17,920,571 as of September 30, 2022, to 17,816,922 as of September 30, 2023, representing a reduction of approximately 0.6%[19]. - The company repurchased 100,000 shares during the quarter, resulting in a total cost of $2,815,000[19]. Fair Value Measurements - The company’s fair value measurements as of September 30, 2023, included total assets of $588,416,000, with $575,835,000 classified as Level 2 inputs[157]. - The fair value of securities available for sale as of September 30, 2023, was $521,005 thousand, with no Level 1 inputs reported[161]. - The total liabilities related to derivatives as of September 30, 2023, were $38,265 thousand, all classified under Level 2 inputs[161]. Other Operating Expenses - Total other operating expenses for Q3 2023 were $6,194, compared to $5,860 in Q3 2022, marking an increase of 5.7%[173]. - Professional and legal fees rose to $1,619 in Q3 2023 from $1,180 in Q3 2022, a significant increase of 37%[173].