Key Points – Strong quarterly performance: Second-quarter net income available to common shareholders rose 11% sequentially and 99% year over year to $15.8 million, while revenue increased 23% year over year to $86.1 million.
Management said it remains on track to reach a 1% return on assets and 10% return on equity by late this year or early next year. – Balance-sheet and operating momentum: Net interest income rose to $63.9 million, net interest margin expanded to 3.32%, deposits grew to $7.1 billion and loans reached $6.7 billion
Wealth-management fees increased, expenses remained nearly flat, and the efficiency ratio improved to 65% for the seventh consecutive quarter. – Credit risks remain concentrated: Nonperforming assets rose to $72.2 million, primarily due to a multifamily relationship now in foreclosure proceedings, while net charge-offs totaled $5.9 million. Management said it saw no broad-based portfolio deterioration but expects quarterly provisions of about $7.5 million through year-end. Peapack-Gladstone Financial (NASDAQ:PGC) reported second-quarter net income available to common shareholders of $15.8 million, or $0.85 per diluted share, as higher net interest income, wealth-management fees and loan growth supported results.
The quarter’s net income increased 11% from $14.2 million, or $0.80 per share, in the first quarter and was 99% higher than a year earlier, President and CEO Doug Kennedy said during the company’s earnings call. Total revenue rose 4% sequentially and 23% year over year to $86.1 million. Kennedy said the company’s revenue and profitability have improved for seven consecutive quarters and that management remains on track to reach a 1% return on assets and 10% return on equity by the fourth quarter, potentially extending into the first quarter of next year.