NASDAQ$PGC

Peapack-Gladstone Financial Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Strong second quarter results reported as net interest margin continued to expand.

Peapack-Gladstone Financial Corporation reported strong second quarter results, driven by improvement in net interest income and net interest margin, which improved 45 basis points compared to the June 2021 quarter. The quarter also included increases in wealth management fee income and SBA fee income, when compared to the June 2021 quarter.

  • AUM/AUA in Peapack Private Wealth Management Division totaled $9.5 billion.
  • Wealth Management fee income increased 7% to $13.9 million compared to Q2 2021.
  • Total loans grew 7% (13% annualized) to $5.17 billion compared to December 31, 2021.
  • U.S. Small Business Association (“SBA”) Income continues to be a driver in fee income recording $2.7 million.

Headline financials

Total Revenue

$61.4M

Previous: $51.5M+19.2%
EPS (adj)

$1.08

Previous: $0.74+45.9%
Net Interest Margin

2.8%

Previous: 2.4%+18.9%
Capital Expenditures

-$1.08M

Previous: -$2.9M+62.6%
Free Cash Flow

$19M

Previous: $11.5M+65.0%
Net Income

$20.1M

Previous: $14.4M+39.4%
Operating Income

$17.8M

Previous: $13.8M+29.5%
Gross Profit

$57.6M

Previous: $51.5M+11.8%
Cash & Equivalents

$153M

Previous: $203M-24.6%
Total Assets

$6.15B

Previous: $5.79B+6.2%

Revenue & EPS history

Peapack-Gladstone · Revenue · Quarterly

$61.4M

Q2 2022+19.2%vs Q2 2021
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

Company believes it will achieve modest loan growth for the remainder of 2022, resulting in mid to high single digit growth for all of 2022. Current modeling indicates net interest income will improve approximately 3% in year one and 8% in year two, after a 200-basis point rate shock.

Tailwinds

  • Company is positioned to continue to benefit from a rise in interest rates.
  • 25% of loan portfolio reprices within one-month.
  • 37% of loan portfolio reprices within three-months.
  • 47% of loan portfolio reprices within one-year.
  • Tangible book value per share improved slightly during Q2 2022 to $25.96.

Headwinds

  • Economic uncertainty and rising interest rates may cause loan demand to subside somewhat.
  • Company has tightened initial underwriting in anticipation of a potential economic downturn and higher rate environment.
  • Capital spent on stock repurchases.
  • Capital affected by the increased unrealized loss on AFS securities.
  • Continued market declines in 2022 further impacted the results in the June 2022 quarter, as the S&P was down another 16% in Q2 2022 (and YTD down 21%).

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 Q2 2022

Historical avgQ2 2022

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro