Peapack-Gladstone Financial Corp. in Gladstone, N.J., said Monday that its third-quarter net income increased 33% from a year earlier, to $3.5 million.
Its total loans grew 10%, or $93 million, and commercial loan growth was particularly strong, the $1.3 billion-asset company said. Its average commercial mortgage portfolio fattened by 35%, or $67.8 million.
But because of competitive pressure and lower market rates, the yield on its loans declined by 33 basis points, to 5.85%.
Its loan quality improved from a year earlier. Nonperforming assets shrank by 11%, to $5 million, and the ratio to total assets declined by five basis points, to 0.37%. However, the company increased its loan-loss provision fivefold, to $780,000, citing its commercial loan growth and continued weakness in the housing market.