Peapack-Gladstone Financial (PGC) in Bedminster, N.J., said that it doesn’t expect any material losses tied to damage Hurricane Sandy inflicted on collateral properties.
The company reported that about $15.9 million of residential and commercial mortgage loans were tied to properties in New Jersey that the government designated as flood zones. That represents about 1.5% of Peapack-Gladstone’s outstanding loan portfolio at Sept. 30, the company said in a press release Wednesday.
The company estimated the value of property securing the loans at $28 million, based on a 56% loan-to-value ratio when the loans were originated. The borrowers, who were required to carry flood insurance, may be eligible for a combined $8.8 million in coverage.
“The lower loan-to-value ratios, and the existence of flood insurance in appropriate amounts, reflect our strong underwriting and administration of our loan portfolios,” Doug Kennedy, Peapack-Gladstone’s chief executive, said in the release. “Given this information, we believe we will not incur any material losses from this portion of our portfolio due to the effects of the storm.”
Peapack-Gladstone said it would continue to assess the storm’s impact on its loan book, though the company said it expects the hurricane to have little effect on its financial performance.