Peapack-Gladstone Financial Corporation (PGC) Q4 2024 earnings summary

Executive summary

• Core relationship deposits grew $438M in Q4 2024, annualized growth rate of 36%, reaching $5.3B; total deposits up $855M year-over-year to $6.1B.

• Net income for Q4 2024 was $9.2M, up 22% sequentially and 7% year-over-year; diluted EPS was $0.52, up from $0.43 in Q3 2024.

• Net interest income rose 11% sequentially to $41.9M; net interest margin improved to 2.46% from 2.34% in Q3 2024 and 2.29% in Q4 2023.

• Wealth management AUM/AUA reached $11.9B, up from $10.9B a year ago; fee income was $15.5M, 25% of total revenue.

• Rebranded as Peapack Private Bank & Trust effective January 1, 2025.

Financial highlights

• Total revenue for Q4 2024 was $61.8M, up 9% sequentially and 14% year-over-year.

• Operating expenses increased to $47.9M in Q4 2024, up from $44.6M in Q3 2024 and $37.6M in Q4 2023, driven by NYC expansion and rebranding costs.

• Return on average assets (ROAA) for Q4 2024 was 0.54%; return on average equity (ROAE) was 6.15%.

• Tangible book value per share rose 5% year-over-year to $31.89; book value per share also up 5% to $34.45.

• Allowance for credit losses at $73.0M (1.32% of total loans) at year-end.

Outlook and guidance

• Management expects higher operating expenses in 2025 due to ongoing investments in NYC expansion and client experience enhancements.

• Strong loan and deposit pipelines heading into 2025, with continued focus on middle market commercial banking and wealth management growth.