NASDAQ$PGC

Peapack-Gladstone Financial Corporation · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Peapack-Gladstone's financial performance showed a strong start to the year, marked by growth in deposits, loans, and capital, despite industry headwinds.

Peapack-Gladstone Financial Corporation reported a strong first quarter in 2023, with total revenue of $62.0 million, net income of $18.4 million, and diluted earnings per share of $1.01. The company experienced growth in deposits and loans, and its capital position remained strong. However, net interest margin compression was experienced due to an increase in the cost of funds.

  • Total revenue reached $62.0 million, up from $54.3 million in Q1 2022.
  • Net income was $18.4 million, compared to $13.4 million in the same quarter last year.
  • Diluted earnings per share were $1.01, an increase from $0.71 in Q1 2022.
  • Deposits grew by $104 million to $5.3 billion during the quarter.

Headline financials

Total Revenue

$62M

Previous: $54.3M+14.2%
EPS (adj)

$1.01

Previous: $0.71+42.3%
Net Interest Margin

2.9%

Previous: 2.7%+7.1%
Capital Expenditures

-$643K

Previous: -$568K-13.2%
Free Cash Flow

$17.7M

Previous: $12.9M+37.6%
Net Income

$18.4M

Previous: $13.4M+36.6%
Operating Income

$17.5M

Previous: $9.49M+84.8%
Gross Profit

$60.5M

Previous: $52M+16.5%
Cash & Equivalents

$251M

Previous: $114M+120.5%
Total Assets

$6.48B

Previous: $6.26B+3.6%

Revenue & EPS history

Peapack-Gladstone · Revenue · Quarterly

$62M

Q1 2023+14.2%vs Q1 2022
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Peapack-Gladstone · $14.5M total across 2 segments · Q2 2021

  • Wealth Mgmt Fees
    $13M+30.3%
  • Capital Markets
    $1.46M+44.6%

Forward guidance

Given economic uncertainty and rising interest rates, the company believes loan demand will subside somewhat as we look further into 2023 and expects modest loan growth.

Tailwinds

  • The company continues to actively engage with deposit customers to address concerns and provide assurance regarding the institution's safety and soundness.
  • The company migrated $63 million of uninsured deposits into fully-insured FDIC products for customers desiring that type of protection.
  • 92% of the company's deposits are demand, savings, or money market accounts, reflecting the core nature of the majority of the deposit base.
  • The company maintains additional liquidity resources of approximately $3.3 billion through secured available funding.
  • The company has access to the Bank Term Funding Program offered by the Federal Reserve Bank for the next twelve months if needed.

Headwinds

  • Net interest margin compression of 24 basis points resulting in a decline in net interest income of $4.1 million compared to the fourth quarter of 2022.
  • The margin compression was primarily driven by an increase in our cost of funds during the first quarter of 2023, as clients moved funds from noninterest bearing accounts to higher yielding deposit accounts.
  • Noninterest-bearing demand deposits declined by $150 million during the first quarter.
  • The increase in our deposit betas during Q4 2022 and Q1 2023 has begun to accelerate as the competition for deposit balances intensifies.
  • Nonperforming assets increased primarily due to one multifamily relationship of $9.7 million that transferred to a nonaccrual status during the quarter.

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 2023

Historical avgQ1 2023

+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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