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Peapack-Gladstone Financial Corporation Reports First Quarter Results
Bedminster, N.J., May 05, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the
About this update from Peapack-gladstone Financial Corporation
[{"type":"text","content":"Bedminster, N.J., May 05, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the “Company”) announces its first quarter 2020 results.\n This earnings release should be read in conjunction with the Company’s Q1 2020 Investor Update (and Supplemental Financial Information), a copy of which is available on our website at www.pgbank.com and as via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. For the quarter ended March 31, 2020, the Company recorded revenue of $46.26 million, net income of $1.37 million and diluted earnings per share (“EPS”) of $0.07, compared to $41.74 million, $11.43 million and $0.58, respectively, for the same three-month period last year. The decrease in net income and EPS for the 2020 quarter reflected a $20.0 million provision for loan losses, which was due to the current environment created by the COVID-19 pandemic, which led to increased qualitative loss factors when calculating the allowance for loan losses as described in the Q1 2020 Investor Update (and Supplemental Financial Information). The 2020 quarter included increased net interest income and non-interest income offset by increased operating expenses (due in part to the wealth management firm acquired in September 2019) and an increased provision for loan and lease losses. The 2020 quarter also included a tax benefit of $3.2 million caused by the changes in the treatment of tax net operating losses (“NOL”) under the provisions of The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. As previously announced, on July 25, 2019, the Company authorized the repurchase of up to 960,000 shares, or approximately 5% of its outstanding shares, through June 30, 2020. Early in the first quarter of 2020, under this program, the Company purchased 220,222 shares, at an average price of $29.45, for a total cost of $6.5 million. With these purchases, the Company completed its 960,000 share repurchase program, at an average price of $28.63, for a total cost of $27.5 million. Douglas L. Kennedy, President and CEO, said, “The COVID-19 pandemic has had a devastating effect on businesses both locally and nationally. As a result, Congress passed the CARES Act to provide fast and direct economic assistance to American workers, families ...