NASDAQ$PGC

Peapack-Gladstone Financial Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Peapack-Gladstone's financial performance decreased due to increased provision for loan losses, but revenue increased, driven by wealth management, commercial banking and capital markets activities.

Peapack-Gladstone Financial Corporation reported a decrease in net income and EPS for Q1 2020, primarily due to a $20.0 million provision for loan losses related to the COVID-19 pandemic. However, total revenue increased by 11% compared to the same period last year, driven by wealth management, commercial banking, and capital markets activities. The company also benefited from a $3.2 million tax benefit related to changes in tax net operating losses under the CARES Act.

  • Net income decreased due to a $20.0 million provision for loan losses related to the COVID-19 pandemic.
  • Total revenue increased by 11% compared to the same period last year, driven by wealth management, commercial banking, and capital markets activities.
  • The company completed its 960,000 share repurchase program, purchasing 220,222 shares in Q1 2020 at an average price of $29.45.
  • Deposits totaled $4.44 billion, reflecting net growth of $522 million (13%) when compared to March 31, 2019.

Headline financials

Total Revenue

$46.3M

Previous: $41.7M+10.8%
EPS (adj)

$0.07

Previous: $0.58-87.9%
Net Interest Margin

2.6%

No prior period
Capital Expenditures

-$914K

Previous: -$173K-428.3%
Free Cash Flow

$459K

Previous: $11.3M-95.9%
Net Income

$1.37M

Previous: $11.4M-88.0%
Operating Income

-$6.69M

Previous: $19.5M-134.2%
Gross Profit

$46.3M

Previous: $41.7M+10.8%
Cash & Equivalents

$774M

Previous: $240M+222.2%
Total Assets

$5.83B

Previous: $4.66B+25.1%

Revenue & EPS history

Peapack-Gladstone · Revenue · Quarterly

$46.3M

Q1 2020+10.8%vs Q1 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Peapack-Gladstone · $12.7M total across 2 segments · Q1 2020

  • Wealth Mgmt Fees
    $9.96M+8.6%
  • Capital Markets
    $2.76M+273.0%

Forward guidance

Given the environment created by the COVID-19 pandemic, the company's near-term priorities include emphasis on the health and safety of our employees and clients, adapt the way in which we interact with clients and prospects to reflect the current environment, actively manage emerging credit risk associated with the environment caused by the COVID-19 pandemic, conservatively manage capital and liquidity in response to current market conditions, pursue new client opportunities presented by the PPP, and continue to grow and expand our wealth management and commercial banking businesses.

Tailwinds

  • Emphasis on the health and safety of our employees and clients.
  • Adapt the way in which we interact with clients and prospects to reflect the current environment.
  • Actively manage emerging credit risk associated with the environment caused by the COVID-19 pandemic.
  • Conservatively manage capital and liquidity in response to current market conditions.
  • Pursue new client opportunities presented by the PPP.

Headwinds

  • Demand for our products and services may decline, making it difficult to grow assets and income
  • If the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income
  • Collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase
  • Our allowance for loan losses may have to be increased if borrowers experience financial difficulties, which will adversely affect our net income
  • As the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.4%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+4.1%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+9.7%

Q3 2024

Best reaction

-12.3%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%+8.9%+8.8%
Q3 2025+1.0%+2.0%+9.8%
Q2 2025-0.9%+1.8%+9.3%
Q1 2025-1.2%-0.8%-5.0%
Q4 2024-1.2%-3.5%-1.1%
Q3 2024+9.7%+10.3%+25.7%
Q2 2024+1.4%+7.6%-1.8%
Q1 2024-6.6%-7.2%-8.2%
Q4 2023+4.0%+4.6%-18.7%
Q3 2023-7.0%-8.0%+5.4%
Q2 2023+2.5%-1.2%-9.0%
Q1 2023-2.2%-2.4%+0.1%
Q4 2022+1.0%+5.0%+6.2%
Q3 2022+4.9%+4.3%+10.0%
Q2 2022+5.1%+6.9%+9.3%
Q1 2022-2.6%+1.3%+4.6%
Q4 2021+6.7%+8.7%+9.2%
Q3 2021+2.4%+2.9%+2.4%
Q2 2021+5.6%+3.8%+9.4%
Q1 2021+2.3%+4.4%+6.2%
Q4 2020+5.6%+8.9%+23.4%
Q3 2020+2.3%+3.1%+36.6%
Q2 2020+1.8%-3.3%+2.5%
Q1 2020-12.3%-1.7%+8.9%
Q4 2019+3.0%+4.0%-4.7%
Q3 2019+3.3%+4.5%+7.4%
Q2 2019+1.3%+2.0%-2.8%
Q1 2019+8.4%+5.1%+2.0%
Q4 2018+1.4%-0.4%+10.6%
Q3 2018-2.4%-3.8%-1.4%
Q2 2018-2.7%-3.4%-2.1%
Q1 2018-2.7%-4.8%+3.8%
Q4 2017+3.8%+1.2%-6.3%
Q3 2017-0.6%+1.2%-4.3%
Q2 2017-3.6%-2.2%-6.1%
Q1 2017+6.4%+3.3%-3.5%
Q4 2016-4.3%-2.2%+1.1%
Q3 2016-2.5%-2.9%+22.2%
Q2 2016+0.0%+0.9%-0.2%
Q1 2016+2.7%
Q4 2015-6.5%
Q3 2015+5.5%
Q2 2015+1.4%
Q1 2015+3.3%
Q4 2014+0.6%
Q3 2014-4.2%
Q2 2014-0.2%
Q1 2014+2.9%
Q4 2013-1.5%
Q3 2013-2.6%
Q2 2013-1.3%
Q1 2013-1.7%
Q4 2009-1.5%
Q1 2010-1.5%
Q4 2012-1.5%
Q3 2012+0.1%
Q2 2012-3.0%
Q1 2011-1.5%
Q1 2012+3.7%
Q4 2011-1.7%
Q3 2011+0.3%
Q3 2010+0.3%
Q2 2010+1.4%
Q2 2011+1.4%
Q4 2010+1.4%

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