Peapack-Gladstone Q2 revenue beats estimates on higher net interest income

Overview

• US commercial and wealth bank's Q2 revenue rose 23% yr/yr, beating analyst expectations

• EPS for Q2 missed analyst expectations

• Company issued $20 mln in convertible preferred stock to support growth and capital

Outlook

• Company did not provide specific guidance for the current quarter or full year

Result Drivers

• NET INTEREST INCOME - Co said revenue growth was primarily driven by higher net interest income, supported by balance sheet repositioning, disciplined pricing, and improved earning-asset yields

• LOAN GROWTH - Loan growth, especially in commercial and industrial and commercial real estate segments, contributed to higher interest income and overall revenue

• WEALTH MANAGEMENT INFLOWS - Wealth management delivered strong results, with client inflows and favorable market performance supporting fee income growth

Company press release: ID:nGNX6mWWmb

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Peapack-Gladstone Financial Corp is $51.50, about 11% above its July 24 closing price of $46.38

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 27 - Northwest Bancshares Q2 net income rises 59% to record on higher net interest income

• July 27 - Park National Q2 net income rises 22% on loan growth

• July 27 - Capital Bancorp Q2 net income, EPS beat estimates as loans and deposits grow

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)