Peapack-Gladstone Financial Corp. in New Jersey announced after the market closed Tuesday that it will likely take an other-than-temporary impairment charge for the fourth quarter on its portfolio of trust-preferred pooled securities.
The charge could be as large as $54.4 million, the $1.4 billion-asset Peapack-Gladstone said.
It also said it is still evaluating the value of its 46 trust-preferred securities, but even if they were written down from the amortized cost of $67.1 million to zero, the company would still be adequately capitalized.
Peapack-Gladstone's third-quarter earnings increased 32% from a year earlier, to $3.5 million, and as of Sept. 30, it reported a total risk-based capital ratio of 13.36% of assets. The company said it expects to receive $28.7 million from the Treasury Department's Troubled Asset Relief Program in January.