SOURCE: Peapack-Gladstone Financial Corp

October 28, 2015 16:20 ET

Peapack-Gladstone Financial Corporation Reports Another Quarter of Strong Results

BEDMINSTER, NJ--(Marketwired - Oct 28, 2015) - Peapack-Gladstone Financial Corporation (NASDAQ: PGC) (the "Corporation" or the "Company") recorded net income of $15.63 million and diluted earnings per share of $1.02 for the nine months ended September 30, 2015, compared to $10.68 million and $0.90, respectively, for the same nine month period last year, reflecting growth of 46 percent and 13 percent, respectively. The Company's provision for loan losses for the nine months of 2015 of $5.15 million reflected an increase of $1.53 million from the $3.63 million for the same 2014 period.

For the quarter ended September 30, 2015, the Corporation recorded net income of $5.38 million and diluted earnings per share of $0.35, compared to $3.86 million and diluted earnings per share of $0.32 for the same three month period last year, reflecting in of 39 percent and 9 percent, respectively. The Company's provision for loan losses for the third quarter of 2015 of $1.60 million reflected an increase of $450 thousand from the $1.15 million for the third quarter of 2014.

The following table summarizes earnings for the quarters ended:

                   
    September     September     Increase/  
(Dollars in millions, except EPS)   2015     2014     (Decrease)  
Net interest income   $ 21.71     $ 17.05     $ 4.66     27 %
Provision for loan losses   $ 1.60     $ 1.15     $ 0.45     39 %
Pretax income   $ 8.82     $ 6.26     $ 2.56     41 %
Net income   $ 5.38     $ 3.86     $ 1.52     39 %
Diluted EPS   $ 0.35     $ 0.32     $ 0.03     9 %
Total revenue   $ 27.32     $ 22.10     $ 5.22     24 %
                               
Return on average assets     0.66 %     0.63 %     0.03        
Return on average equity     8.19 %     8.35 %     (0.16 )      
Efficiency ratio (A)     61.14 %     66.58 %     (5.44 )      
   
(A) See Non-GAAP financial measures reconciliation table on page 26.  
   

Doug Kennedy, President and CEO, said, "We continue to generate strong results and drive operating efficiencies, as we continue to successfully execute on our Growth Strategy -- Expanding Our Reach."

Q3 2015 highlights follow:

  • Earnings and performance ratios for the third quarter of 2015 reflected improvement when compared to the third quarter of 2014's results (as reflected just above). Year over year growth in EPS was 9 percent, despite 2.776 million common shares issued in the December 2014 capital raise.
  • Loans at September 30, 2015 totaled $2.86 billion. This reflected growth of $814 million when compared to $2.04 billion at September 30, 2014. Year over year loan growth was 40 percent.
  • Multifamily loan participations sold in the third quarter of 2015 totaled $40 million. Additionally, as of September 30, 2015, $27 million of multifamily loans were classified as loans held for sale representing a participation transaction that is anticipated to close during Q4 2015.
  • Asset quality metrics continued to be strong at September 30, 2015. Nonperforming assets at September 30, 2015 were $7.9 million or 0.24 percent of total assets. Total loans past due 30 through 89 days and still accruing were $2.7 million at September 30, 2015. 
  • Commercial & Industrial (C&I) loans at September 30, 2015 totaled $457 million. This reflected growth of $231 million when compared to the $226 million at September 30, 2014. Year over year C&I loan growth was 102 percent. (Not included in totals above are $20 million of C&I loans which closed in early October.)
  • Total "customer" deposit balances (defined as deposits excluding brokered CDs and brokered "overnight" interest-bearing demand deposits) grew to $2.55 billion at September 30, 2015 from $1.93 billion at September 30, 2014. Year over year customer deposit growth totaled 32 percent.
  • The Company's net interest income for the third quarter of 2015 was $21.71 million. This reflected improvement when compared to $17.05 million for the third quarter of 2014. Year over year growth in net interest income was 27 percent.
  • At September 30, 2015, the market value of assets under administration at the Private Wealth Management Division of Peapack-Gladstone Bank ("the Bank") was nearly $3.3 billion, including the acquisition of Wealth Management Consultants, which occurred in May 2015.
  • Fee income from the Private Wealth Management Division totaled $4.17 million for the third quarter of 2015, growing from $3.66 million for the third quarter of 2014. Year over year growth in wealth management fee income was 14 percent.
  • The Company continued to leverage the capital raised in the fourth quarter of 2014. The Company believes it has sufficient capital to support its continued growth and expansion for the immediate future.
  • The book value per share at September 30, 2015 of $17.33 reflected improvement when compared to $15.80 at September 30, 2014. Year over year growth in book value per share totaled 10 percent.

Net Interest Income / Net Interest Margin

Net interest income was $21.71 million for the third quarter of 2015, compared to $17.05 million for the same quarter last year, reflecting growth of $4.66 million or 27 percent when compared to the prior year period. Net interest income for the third quarter of 2015 benefitted from significant loan growth during the fourth quarter of 2014, as well as during the first nine months of 2015. 

While net interest income for the third quarter of 2015 improved compared to prior periods, the net interest margin, on a fully tax-equivalent basis, was 2.75 percent for the September 2015 quarter compared to 2.89 percent for the September 2014 quarter. Net interest margin continued to be impacted by the effect of low market yields, as well as competitive pressures in attracting new loans and deposits. The Company expects continued loan and deposit growth in this competitive environment.

Net interest margin is also affected by the maintenance of larger average interest earning deposit/cash balances, as well as larger balances of liquid investment securities. During 2014, the Company began maintaining greater liquidity on its balance sheet to support its expansive loan program. Mr. Kennedy said, "As I have said before, given our rapid growth, we had decided to maintain and will continue to maintain higher liquidity on our balance sheet than typically needed for operations." Mr. Kennedy went on to note, "In addition to liquidity from cash equivalents and investment securities on our balance sheet, we also have close to $900 million of net secured funding available from the Federal Home Loan Bank."

Loan Originations / Loans

Total loan originations were $1.05 billion for the nine months ended September 30, 2015 compared to $772 million for the same nine month period in 2014.

For the third quarter ended September 30, 2015 loan originations were $290 million, down from $417 million for the June 2015 quarter, but up from $221 million for the September 2014 quarter. At September 30, 2015, loans totaled $2.86 billion compared to $2.74 billion three months ago at June 30, 2015 and compared to $2.04 billion one year ago at September 30, 2014, representing net increases of $113 million or 4 percent sequentially and $814 million or 40 percent, year over year.

At September 30, 2015, the multifamily loan portfolio loans totaled $1.44 billion compared to $1.37 billion three months ago at June 30, 2015 and compared to $928 million one year ago at September 30, 2014, representing net increases of $73 million or 5 percent sequentially and $516 million or 56 percent, year over year. The increases were net of participations sold, including $40 million of participations sold in the current September 2015 quarter, and $139 million for the nine months ended September 30, 2015. These participations were part of the Company's balance sheet management strategy and will likely continue in 2015 and beyond.

The commercial mortgage loan portfolio grew by $24 million from June 30, 2015 to September 30, 2015, reflecting linked quarter growth of 6 percent, and grew by $67 million from September 30, 2014 to September 30, 2015, reflecting year over year growth of 20 percent.

The net increases in both the multifamily and commercial mortgage portfolios were attributable to: the addition of seasoned banking professionals; continued attention to the client service aspect of the lending process; an expansion of New Jersey-based real estate marketing activities; and a focus on the Boroughs of New York City multifamily markets beginning in mid-2013. The increase was also due to demand from borrowers looking to refinance multifamily and other commercial mortgages held by other institutions.

Mr. Kennedy said, "As I explained last quarter, we anticipated multifamily loan growth would be less than past quarters, as we manage our balance sheet such that the C&I loan portfolio becomes a larger percentage of our overall loan portfolio. Our C&I pipeline remains robust and we believe we will continue to deliver strong growth." 

For the quarter and nine months ended September 30, 2015 the Company closed $37 million and $215 million of commercial loans, respectively. Additionally, not included in these amounts are $20 million of C&I loans which closed in early October. When comparing September 30, 2015 to September 30, 2014, commercial loans grew $231 million or 102 percent, to $457 million at September 30, 2015 from $226 million one year ago at September 30, 2014. At September 30, 2015 the commercial loan portfolio comprised 16 percent of the overall loan portfolio, up from 11 percent one year ago at September 30, 2014. 

Mr. Kennedy said, "As a result of our investment in and commitment to C&I banking, including the addition in 2014 and 2015 of highly regarded bankers with industry and capital markets expertise, and the addition of Eric H. Waser, Head of Commercial Banking in February 2015, we have seen, and believe will continue to see, our C&I client base and corresponding loan portfolio grow and consume a larger percentage of our overall loan portfolio. However, due to the nature of this business, this growth will likely not be linear each quarter, but rather will be apparent over longer periods of time."

Mr. Kennedy went on to say, "We believe our private banking business model of addressing the sophisticated needs and expectations of successful business owners and entrepreneurs is being well received. The ability to engage in high level strategic debt, capital and valuation analysis coupled with succession, estate and wealth planning strategies, enables us to provide a unique boutique level of service to business owners and middle market clients." 

Deposits / Funding / Balance Sheet Management

Net asset growth of $151 million and paydowns of overnight borrowings of $88 million and brokered (overnight) interest-bearing deposits of $50 million in the September 2015 quarter were principally funded by customer deposit growth of $274 million. Mr. Kennedy said, "As I noted in last quarter's release, we saw much of our June 30 deposit pipeline fund throughout July, eliminating our June 30th overnight borrowing position." Mr. Kennedy went on to say, "Customer deposit growth throughout the September quarter was very strong. A portion of this growth was due to a New York City based family office which opened a multiple account core deposit relationship." 

Although brokered interest-bearing demand ("overnight") deposits decreased $50 million to $243 million at September 30, 2015, these deposits continue to be maintained as an additional source of liquidity. The interest rate paid on these deposits allows the Bank to fund at attractive rates and engage in interest rate swaps to hedge its asset-liability interest rate risk. The Company ensures ample available collateralized liquidity as a backup to these short term brokered deposits.

From a liquidity/funding perspective, such brokered deposits, at a direct cost of approximately 25 basis points (excluding costs of hedging), are generally a more cost effective alternative than borrowings which require pledged collateral when drawn, as secured wholesale borrowings do. From a balance sheet management perspective, the rate paid on these short term brokered deposits enables their use in swap transactions for an efficient hedging/interest rate risk management program. As of September 30, 2015, the Company had transacted pay fixed, receive floating interest rate swaps totaling $180 million notional amount.

Certificates of deposit have also been utilized more extensively in 2015 compared to prior periods. The majority of these deposits have been longer term and have generally been transacted as part of the Company's interest rate risk management. These certificates of deposit are also a more cost effective alternative than other borrowings of similar duration. 

Mr. Kennedy noted, "The Company will continue to place an intense focus on providing high touch client service and growing its core deposit base. Our full array of treasury management products will help support both core deposit growth and commercial lending opportunities."

Wealth Management Business

In the September 2015 quarter, Peapack-Gladstone Bank's wealth management business generated $4.17 million in fee income compared to $4.53 million for the June 2015 quarter. The June quarter included $399 thousand of fees related to tax return preparation which is seasonal to that quarter. John P. Babcock, President of Private Wealth Management, noted, "Excluding the effect of the tax return preparation fees, wealth management fees for the September 2015 quarter were generally flat to the fee income in the June 2015 quarter, notwithstanding an approximate 8 percent decline in the S&P index during the September 2015 quarter. The effect of the associated market value declines were positively offset by continued strong new business and new client acquisitions."

The September 2015 quarter's wealth management fees reflected an increase of $508 thousand or 14 percent when compared to fees for the same 2014 quarter. The growth in fee income was due to a combination of our acquisition of Wealth Management Consultants, LLC (WMC) which closed in May 2015, as well as new business.

The market value of the assets under administration (AUA) of the wealth management division was $3.25 billion at September 30, 2015, down approximately 6 percent from $3.45 billion at June 30, 2015 due to investment value depreciation due to market conditions, but up 14 percent from $2.86 billion at September 30, 2014 due to the WMC acquisition as well as new business. 

Mr. Babcock said, "We continue to incorporate wealth into every conversation we have with all of the Company's clients, across all business lines. We have expanded our wealth management team and will continue to grow our team and expand the products, services, and advice we deliver to our clients. Despite the headwinds from Q3 market action going into the fourth quarter, we continue to remain optimistic and see continued strong growth in this business segment."

Other Noninterest Income

Service charges and fees for the September 2015 quarter were $832 thousand, compared to $829 thousand for the September 2014 quarter. Several categories reflected improvement in the quarter, including income from debit card usage as well as account analysis fees. These increases were offset by reduced overdraft/NSF fees.

The September 2015 quarter included $102 thousand of income from the sale of newly originated residential mortgage loans (mortgage banking), up from $87 thousand in the same 2014 quarter. The volume of residential loans originated for sale was slightly greater in the 2015 period compared to the 2014 period. 

Securities gains were $83 thousand for the September 2015 quarter compared to $39 thousand for the September 2014 quarter. Sales of securities have been generally employed to benefit interest rate risk, prepayment risk, and/or liquidity risk. Given the duration of our investment portfolio and the interest rate environment, as well as the future outlook, we anticipate such sales will continue to be a very small component of the Company's operations.

Other income of $164 thousand for the September 2015 quarter was generally flat to the September 2014 quarter, but down $381 thousand from the June 2015 quarter. The June 2015 quarter included $373 thousand of fee income related to the Company's loan level / back-to-back swap program, while the September quarter did not include any fee income from this program. The program utilizes mirror interest rate swaps, one directly with the loan customer and one directly with a well-established counterparty. This enables a loan customer to benefit from a fixed rate loan, while the Company records a floating rate loan. The program provides enhanced interest rate risk management, as well as the potential for fee income for the Company. While the Company cannot predict the amount of fee income that may be recognized each period, this program is a part of ongoing operations. 

Operating Expenses

The Company's total operating expenses were $16.90 million for the quarter ended September 30, 2015 compared to $14.69 million in the same 2014 quarter, reflecting a net increase of $2.21 million. The increase in total operating expenses is in line with our Strategic Plan.

Salary and benefits expense increased in the September 2015 quarter when compared to the same quarter last year due to strategic hiring in line with the Company's Plan. Also contributing to the increase was the acquisition of WMC. Additionally, normal salary increases and increased bonus/incentive accruals associated with the Company's growth contributed to the increase.

Premises and equipment expense and FDIC insurance expense for the quarter ended September 30, 2015 increased when compared to the same quarter last year. The increases were consistent with the Company's continued growth. 

Other expenses for the September 2015 quarter increased when compared to the September 2014 quarter. The current 2015 period included: a $250 thousand provision for losses on REO, increased wealth management division expenses due to growth in the business as well as the WMC acquisition, and increased professional fee expenses associated with the Company's growth, as well as various project work. 

Mr. Kennedy noted, "Expense increases continue to track to our Plan. We expect that the trend of higher operating expenses will continue, as we continue to bring on high caliber revenue producers and invest in our infrastructure, in line with our Plan. Further, we generally expect revenue and profitability related to new revenue producers to lag those expenses by several quarters. It is important to note, however, that our plan has delivered positive operating leverage as evidenced by revenue growth outpacing expense growth, which has caused our Efficiency Ratio to improve. Our Efficiency Ratio was 61 percent for the September 2015 quarter, reflecting an improvement from 67 percent for the September 2014 quarter. Additionally, total expenses as a percentage of average assets has improved to 2.07 percent for the September 2015 quarter from 2.39 percent for the September 2014."

Mr. Kennedy also said, "After completing a comprehensive analysis of our branch locations, we have decided to close two of our branch offices. Our analysis included review of transaction volume; deposit source, mix and balances; deposit growth opportunities; market share; and profitability. Our branches located at 1038 Stelton Road in Piscataway ("Piscataway") and at 54 Morris and Essex Turnpike on the Short Hills/Summit border ("Short Hills") will be closed in December 2015. However, we plan on repositioning our Short Hills office as a non-branch financial services office. Due to the nature of the deposits in both locations, as well as the close proximity of our other Summit branch to the Short Hills location, we anticipate that we will retain the majority of deposits. While we anticipate an approximate $2.4 million to $3.0 million pretax charge (approximately $1.5 million to $1.8 million after tax) in Q4 2015 related to these closures, we expect expense saves that will recoup that charge in three years or less." 

Provision for Loan Losses / Asset Quality

For the quarter ended September 30, 2015, the Company's provision for loan losses was $1.60 million, compared to $1.15 million for the September 2014 quarter. Charge-offs, net of recoveries, for the third quarter of 2015 year were only $195 thousand. The larger provision in 2015 was due to loan growth, as well as greater qualitative factor allocations of the allowance to C&I and Commercial Real Estate loans.

At September 30, 2015 the allowance for loan losses was $24.37 million, 320 percent of nonperforming loans and 0.85 percent of total loans, compared to $18.30 million, 208 percent of nonperforming loans and 0.90 percent of total loans one year prior, at September 30, 2014.

The Company's provision for loan losses and its allowance for loan losses continue to track consistently with the Company's net loan growth and asset quality metrics.

Nonperforming assets at September 30, 2015 were just $7.9 million or 0.24 percent of total assets. Total loans past due 30 through 89 days and still accruing were only $2.7 million at September 30, 2015.

Capital / Dividends

The Company's capital position in the September 2015 quarter was benefitted by net income of $5.4 million and also by $4.3 million of voluntary share purchases in the Dividend Reinvestment Plan, which continue to be a source of capital for the company.

At September 30, 2015, the Company's leverage, common equity tier 1, tier 1 and total risk based capital ratios were 8.10 percent, 12.44 percent, 12.44 percent and 13.59 percent, respectively. The Company's ratios are all above the respective 5 percent, 6.5 percent, 8 percent, and 10 percent levels required to be considered well capitalized under regulatory guidelines applicable to banks.

As previously announced on October 22, 2015, the Board of Directors declared a regular cash dividend of $0.05 per share payable on November 20, 2015 to shareholders of record on November 5, 2015.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $3.27 billion as of September 30, 2015. Founded in 1921, Peapack-Gladstone Bank is a commercial bank that provides innovative private banking services to businesses, non-profits and consumers, which help them to establish, maintain and expand their legacy. Through its private banking locations in Bedminster, Morristown, Princeton and Teaneck, its wealth management division, and its branch network and online platforms, Peapack-Gladstone Bank offers an unparalleled commitment to client service.

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's expectations about new and existing programs and products, investments, relationships, opportunities and market conditions. These statements may be identified by such forward-looking terminology as "expect", "look", "believe", "anticipate", "may", or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to

  • inability to successfully grow our business and implement our strategic plan, including an inability to generate revenues to offset the increased personnel and other costs related to the strategic plan;
  • inability to manage our growth;
  • inability to successfully integrate our expanded employee base;
  • a continued or unexpected decline in the economy, in particular in our New Jersey and New York market areas;
  • declines in our net interest margin caused by the low interest rate environment and highly competitive market;
  • declines in value in our investment portfolio
  • higher than expected increases in our allowance for loan losses;
  • higher than expected increases in loan losses or in the level of nonperforming loans;
  • unexpected changes in interest rates;
  • a continued or unexpected decline in real estate values within our market areas;
  • legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Basel III and related regulations) subject us to additional regulatory oversight which may result in increased compliance costs;
  • successful cyberattacks against our IT infrastructure and that of our IT providers;
  • higher than expected FDIC insurance premiums;
  • adverse weather conditions;
  • inability to successfully generate new business in new geographic markets;
  • inability to execute upon new business initiatives;
  • lack of liquidity to fund our various cash obligations;
  • reduction in our lower-cost funding sources;
  • our inability to adapt to technological changes;
  • claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters; and
  • other unexpected material adverse changes in our operations or earnings.

A discussion of these and other factors that could affect our results is included in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2014. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Corporation's expectations.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

(Tables to follow)

 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)
  As of
  Sept 30,   June 30,   March 31,   Dec 31,   Sept 30,
  2015   2015   2015   2014   2014
ASSETS                            
Cash and due from banks $ 10,695   $ 6,205   $ 7,439   $ 6,621   $ 6,596
Federal funds sold   101     101     101     101     101
Interest-earning deposits   65,402     32,382     65,283     24,485     114,124
  Total cash and cash equivalents   76,198     38,688     72,823     31,207     120,821
                             
Securities available for sale   220,930     245,897     276,119     332,652     269,550
FHLB and FRB stock, at cost   11,737     15,590     10,598     11,593     9,121
                             
Loans held for sale   27,524     745     4,245     839     351
                             
Residential mortgage   469,865     470,863     466,333     466,760     470,030
Multifamily mortgage   1,444,334     1,371,139     1,214,714     1,080,256     928,054
Commercial mortgage   399,592     375,440     339,037     308,491     332,507
Commercial loans   456,611     438,461     336,079     308,743     225,814
Construction loans   1,409     1,417     5,777     5,998     6,025
Consumer loans   32,563     29,996     28,206     28,040     27,597
Home equity lines of credit   50,370     51,675     50,399     50,141     48,200
Other loans   483     2,947     1,755     1,838     2,560
  Total loans   2,855,227     2,741,938     2,442,300     2,250,267     2,040,787
  Less: Allowances for loan losses   24,374     22,969     20,816     19,480     18,299
  Net loans   2,830,853     2,718,969     2,421,484     2,230,787     2,022,488
                             
Premises and equipment   31,310     31,637     32,068     32,258     30,825
Other real estate owned   330     956     1,103     1,324     949
Accrued interest receivable   6,839     6,451     5,943     5,371     5,126
Bank owned life insurance   32,727     32,565     32,404     32,634     32,448
Deferred tax assets, net   14,613     12,673     10,458     10,491     11,661
Other assets   15,902     13,999     12,212     13,241     11,181
  TOTAL ASSETS $ 3,268,963   $ 3,118,170   $ 2,879,457   $ 2,702,397   $ 2,514,521
                             
LIABILITIES                            
Deposits:                            
  Noninterest-bearing demand deposits $ 399,200   $ 386,588   $ 377,399   $ 366,371   $ 383,268
  Interest-bearing demand deposits   829,970     667,847     634,580     600,889     558,537
  Savings   117,665     120,606     115,515     112,878     111,897
  Money market accounts   792,685     717,246     714,466     700,069     713,383
  Certificates of deposit - Retail   411,335     384,235     310,678     198,819     165,834
Subtotal "customer" deposits   2,550,855     2,276,522     2,152,638     1,979,026     1,932,919
  IB Demand - Brokered   243,000     293,000     263,000     188,000     138,000
  Certificates of deposit - Brokered   93,690     94,224     106,694     131,667     132,500
Total deposits   2,887,545     2,663,746     2,522,332     2,298,693     2,203,419
                             
Overnight borrowings   -     87,500     -     54,600     -
Federal home loan bank advances   83,692     83,692     83,692     83,692     83,692
Capital lease obligation   10,350     10,475     10,594     10,712     9,734
Other liabilities   19,448     14,881     13,486     12,433     12,646
Due to brokers, securities settlements   1,528     -     -     -     16,960
  TOTAL LIABILITIES   3,002,563     2,860,294     2,630,104     2,460,130     2,326,451
Shareholders' equity   266,400     257,876     249,353     242,267     188,070
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,268,963   $ 3,118,170   $ 2,879,457   $ 2,702,397   $ 2,514,521
                             
                             
Assets under administration at Peapack-Gladstone Bank's Wealth Management Division (market value, not included above) $ 3,250,835   $ 3,445,939   $ 3,053,110   $ 2,986,623   $ 2,857,727
                             
                             
                             
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED BALANCE SHEET DATA  
(Dollars in Thousands)  
(Unaudited)  
     
  As of  
  Sept 30,     June 30,     March 31,     Dec 31,     Sept 30,  
  2015     2015     2015     2014     2014  
Asset Quality:                                      
Loans past due over 90 days and still accruing $ -     $ -     $ -     $ -     $ -  
Nonaccrual loans   7,615       7,111       6,335       6,850       8,790  
Other real estate owned   330       956       1,103       1,324       949  
  Total nonperforming assets $ 7,945     $ 8,067     $ 7,438     $ 8,174     $ 9,739  
                                       
Nonperforming loans to total loans   0.27 %     0.26 %     0.26 %     0.30 %     0.43 %
Nonperforming assets to total assets   0.24 %     0.26 %     0.26 %     0.30 %     0.39 %
                                       
Accruing TDR's (A) $ 14,609     $ 13,695     $ 13,561     $ 13,601     $ 13,045  
                                       
Loans past due 30 through 89 days and still accruing $ 2,748     $ 1,744     $ 2,481     $ 1,755     $ 2,278  
                                       
Classified loans $ 41,985     $ 38,676     $ 38,450     $ 35,809     $ 34,752  
                                       
Impaired loans $ 22,224     $ 20,806     $ 19,896     $ 20,451     $ 21,834  
                                       
Allowance for loan losses:                                      
  Beginning of period $ 22,969     $ 20,816     $ 19,480     $ 18,299     $ 17,204  
  Provision for loan losses   1,600       2,200       1,350       1,250       1,150  
  Charge-offs, net   (195 )     (47 )     (14 )     (69 )     (55 )
  End of period $ 24,374     $ 22,969     $ 20,816     $ 19,480     $ 18,299  
                                       
                                       
ALLL to nonperforming loans   320.08 %     323.01 %     328.59 %     284.38 %     208.18 %
ALLL to total loans   0.85 %     0.84 %     0.85 %     0.87 %     0.90 %
                                       
Capital Adequacy                                      
Tier I leverage   8.10 %     8.48 %     8.80 %     9.11 %     7.57 %
                                       
Tier I capital to risk weighted assets   12.44 %     12.46 %     13.57 %     14.38 %     12.16 %
                                       
Common equity tier I capital ratio to risk-weighted assets (B)   12.44 %     12.46 %     13.57 %     N/A       N/A  
                                       
Tier I & II capital to risk-weighted assets   13.59 %     13.58 %     14.71 %     15.55 %     13.36 %
                                       
Equity to total assets (end of period)   8.15 %     8.27 %     8.66 %     8.96 %     7.48 %
                                       
Book value per share (C) (D) $ 17.33     $ 17.02     $ 16.61     $ 16.36     $ 15.80  
                                       
     
  (A) Does not include $2.8 million at September 30, 2015, $2.2 million at June 30, 2015, $1.4 million at March 31, 2015, $1.4 million at December 31, 2014, and $2.4 million at September 30, 2014 of TDR's included in nonaccrual loans.
  (B) New capital ratio required under Basel III effective March 31, 2015.
  (C) Shares included in the book value per share calculation are shares outstanding at period end less the restricted shares that have not yet vested.
  (D) Tangible book value per share was $17.12 at September 30, 2015, $16.80 at June 30, 2015, $16.57 at March 31, 2015, $16.32 at December 31, 2014, and $15.75 at September 30, 2014. Tangible book value per share is different than book value per share because it excludes intangible assets. See Non-GAAP financial measures reconciliation included in these tables.
     
     
     
PEAPACK-GLADSTONE FINANCIAL CORPORATION
LOANS CLOSED
(Dollars in Thousands)
(Unaudited)
                   
  For the Quarters Ended
  Sept 30,   June 30,   March 31,   Dec 31,   Sept 30,
  2015   2015   2015   2014   2014
                             
Residential loans retained $ 20,623   $ 23,117   $ 16,986   $ 10,661   $ 20,540
Residential loans sold   6,078     10,978     8,938     8,230     5,561
Total residential loans   26,701     34,095     25,924     18,891     26,101
                             
CRE (includes Community banking)   47,450     29,561     57,787     14,953     3,208
Multifamily (includes Community banking)   149,763     206,803     209,034     172,021     105,584
Commercial loans (includes Community banking)   37,361     136,483     40,696     89,905     74,029
Wealth lines of credit   24,000     6,150     10,260     -     -
Total commercial loans   258,574     378,997     317,777     276,879     182,821
                             
Installment loans   933     1,128     344     2,015     9,410
                             
Home equity lines of credit   3,775     3,225     3,377     4,140     2,550
                             
Total loans closed $ 289,983   $ 417,445   $ 347,422   $ 301,925   $ 220,882
                             
                             
                             
  For the Nine Months Ended
  Sept 30,   Sept 30,
  2015   2014
Residential loans retained $ 60,726   $ 49,438
Residential loans sold   25,994     19,916
Total residential loans   86,720     69,354
           
CRE (includes Community banking)   134,798     39,224
Multifamily (includes Community banking)   565,600     480,664
Commercial loans (includes Community banking)   214,540     152,654
Wealth lines of credit   40,410     -
Total commercial loans   955,348     672,542
           
Installment loans   2,405     16,471
           
Home equity lines of credit   10,377     13,927
           
Total loans closed $ 1,054,850   $ 772,294
           
           
           

Includes loans and lines of credit that closed in the period, but not necessarily funded.

   
   
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED CONSOLIDATED FINANCIAL DATA  
(Dollars in Thousands, except share data)  
(Unaudited)  
   
  For the Three Months Ended  
  Sept 30,     June 30,     March 31,     Dec 31,     Sept 30,  
  2015     2015     2015     2014     2014  
Income Statement Data:                                      
Interest income $ 25,806     $ 23,852     $ 22,361     $ 20,786     $ 19,210  
Interest expense   4,100       3,508       2,778       2,434       2,162  
  Net interest income   21,706       20,344       19,583       18,352       17,048  
Provision for loan losses   1,600       2,200       1,350       1,250       1,150  
  Net interest income after provision for loan losses   20,106       18,144       18,233       17,102       15,898  
Wealth management fee income   4,169       4,532       4,031       3,822       3,661  
Service charges and fees   832       837       805       880       829  
Bank owned life insurance   260       248       537       274       276  
Gain on loans held for sale at fair value (Mortgage banking)   102       161       148       128       87  
(Loss)/gain on loans held for sale at lower of cost or fair value   -       -       -       (3 )     (7 )
Other income   164       545       93       142       167  
Securities gains, net   83       176       268       44       39  
  Total other income   5,610       6,499       5,882       5,287       5,052  
Salaries and employee benefits   10,322       9,872       9,425       9,188       9,116  
Premises and equipment   2,785       2,778       2,616       2,627       2,564  
FDIC insurance expense   416       431       482       453       350  
Other expenses   3,376       3,185       3,245       3,310       2,663  
  Total operating expenses   16,899       16,266       15,768       15,578       14,693  
Income before income taxes   8,817       8,377       8,347       6,811       6,257  
Income tax expense   3,434       3,139       3,339       2,599       2,393  
Net income $ 5,383     $ 5,238     $ 5,008     $ 4,212     $ 3,864  
                                       
                                       
Total revenue $ 27,316     $ 26,843     $ 25,465     $ 23,639     $ 22,100  
                                       
                                       
Per Common Share Data:                                      
                                       
Earnings per share (basic) $ 0.35     $ 0.34     $ 0.34     $ 0.32     $ 0.33  
Earnings per share (diluted)   0.35       0.34       0.33       0.32       0.32  
                                       
Weighted average number of                                      
common shares outstanding:                                    
Basic   15,253,009       15,082,516       14,909,722       13,037,947       11,841,777  
Diluted   15,435,939       15,233,151       15,070,352       13,163,877       11,956,356  
                                       
Performance Ratios:                                      
                                       
Return on average assets annualized   0.66 %     0.70 %     0.71 %     0.64 %     0.63 %
Return on average common equity annualized   8.19 %     8.24 %     8.13 %     8.01 %     8.35 %
Net interest margin (taxable equivalent basis)   2.75 %     2.80 %     2.88 %     2.89 %     2.89 %
Efficiency ratio (A)   61.14 %     61.00 %     62.58 %     66.01 %     66.58 %
Operating expenses / average assets annualized   2.07 %     2.16 %     2.24 %     2.36 %     2.39 %
                                       
   
(A) Calculated as (total operating expenses, excluding provision for losses on REO) as a percentage of (net interest income plus noninterest income less gain on securities and loss or gain on loans held for sale at lower of cost or fair value). See Non-GAAP financial measures reconciliation included in these tables.
   
   
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED CONSOLIDATED FINANCIAL DATA  
(Dollars in Thousands, except share data)  
(Unaudited)  
                 
  For the              
  Nine Months Ended              
  September 30,     Change  
Income Statement Data: 2015     2014     $     %  
Interest income $ 72,019     $ 54,789     $ 17,230     31 %
Interest expense   10,386       5,247       5,139     98 %
  Net interest income   61,633       49,542       12,091     24 %
Provision for loan losses   5,150       3,625       1,525     42 %
  Net interest income after provision for loan losses   56,483       45,917       10,566     23 %
Wealth management fee income   12,732       11,420       1,312     11 %
Service charges and fees   2,474       2,231       243     11 %
Bank owned life insurance   1,045       818       227     28 %
Gain on loans held for sale at fair                            
Value (Mortgage banking)   411       310       101     33 %
(Loss)/gain on loans held for sale at lower of cost or fair value   -       169       (169 )   -100 %
Other income   802       356       446     125 %
Securities gains, net   527       216       311     144 %
  Total other income   17,991       15,520       2,471     16 %
Salaries and employee benefits   29,619       27,053       2,566     9 %
Premises and equipment   8,179       7,336       843     11 %
FDIC insurance expense   1,329       928       401     43 %
Other expenses   9,806       8,645       1,161     13 %
  Total operating expenses   48,933       43,962       4,971     11 %
Income before income taxes   25,541       17,475       8,066     46 %
Income tax expense   9,912       6,797       3,115     46 %
Net income $ 15,629     $ 10,678       4,951     46 %
                             
                             
Total revenue (See footnote (A) below) $ 79,624     $ 65,062       14,562     22 %
                             
                             
Per Common Share Data:                            
                             
Earnings per share (basic) $ 1.04     $ 0.91     $ 0.13     14 %
Earnings per share (diluted)   1.02       0.90       0.12     13 %
                             
Weighted average number of common shares outstanding:                            
Basic   15,083,006       11,723,873       3,359,133     29 %
Diluted   15,293,747       11,833,507       3,460,240     29 %
                             
Performance Ratios:                            
                             
Return on average assets annualized   0.69 %     0.63 %     0.06 %   10 %
Return on average common equity annualized   8.19 %     7.95 %     0.24 %   3 %
                             
Net interest margin (taxable equivalent basis)   2.81 %     3.06 %     -0.25     -8 %
                             
Efficiency ratio (B)   61.55 %     67.35 %     -5.80     -9 %
                             
Operating expenses / average assets annualized   2.15 %     2.60 %     -0.45     -17 %
     
  (A) Total revenue includes a $169 thousand gain (for 2014) from sale of loans held for sale at lower of cost or fair value. Excluding this gain, total revenue was $64,893 (for 2014).
  (B) Calculated as (total operating expenses, excluding provision for losses on REO) as a percentage of (net interest income plus noninterest income less gain on securities and loss or gain on loans held for sale at lower of cost or fair value). See Non-GAAP financial measures reconciliation included in these tables.
     
     
     
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
AVERAGE BALANCE SHEET  
UNAUDITED  
THREE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
     
  September 30, 2015     September 30, 2014  
  Average     Income/         Average     Income/      
  Balance     Expense   Yield     Balance     Expense   Yield  
ASSETS:                                      
Interest-earning assets:                                      
  Investments:                                      
    Taxable (1) $ 214,967     $ 959   1.78 %   $ 192,207     $ 960   2.00 %
    Tax-exempt (1) (2)   30,682       211   2.76       47,701       268   2.25  
  Loans held for sale   1,075       10   3.76       1,026       10   3.90  
Loans (2) (3):                                      
    Mortgages   465,603       3,796   3.26       464,227       3,879   3.34  
    Commercial mortgages   1,839,312       16,119   3.51       1,231,798       11,790   3.83  
    Commercial   454,239       4,132   3.64       166,092       1,597   3.85  
    Commercial construction   1,742       18   4.13       6,029       65   4.31  
    Installment   31,361       268   3.42       24,965       249   3.99  
    Home equity   51,012       415   3.25       48,371       394   3.26  
    Other   510       12   9.41       563       13   9.24  
    Total loans   2,843,779       24,760   3.48       1,942,045       17,987   3.70  
Federal funds sold   101       -   0.10       101       -   0.10  
Interest-earning deposits   96,308       46   0.19       197,705       109   0.22  
Total interest-earning assets   3,186,912       25,986   3.26 %     2,380,785       19,334   3.25 %
Noninterest-Earning Assets:                                      
Cash and due from banks   7,434                   6,262              
Allowance for loan losses   (23,726 )                 (17,720 )            
Premises and equipment   31,574                   30,985              
Other assets   68,067                   60,717              
Total noninterest-earning assets   83,349                   80,244              
Total assets $ 3,270,261                 $ 2,461,029              
                                       
LIABILITIES:                                      
Interest-bearing deposits:                                      
  Checking $ 810,106     $ 356   0.18 %   $ 541,920     $ 232   0.17 %
  Money markets   757,135       546   0.29       689,721       430   0.25  
  Savings   118,329       17   0.06       113,802       15   0.05  
  Certificates of deposit - retail   403,593       1,296   1.28       158,472       357   0.90  
    Subtotal interest-bearing deposits   2,089,163       2,215   0.42       1,503,915       1,034   0.28  
  Interest-bearing demand - brokered   292,456       857   1.17       138,000       84   0.24  
  Certificates of deposit - brokered   93,907       504   2.15       144,872       550   1.52  
    Total interest-bearing deposits   2,475,526       3,576   0.58       1,786,787       1,668   0.37  
  Borrowings   107,770       399   1.48       83,692       377   1.80  
  Capital lease obligation   10,394       125   4.81       9,770       117   4.79  
  Total interest-bearing liabilities   2,593,690       4,100   0.63       1,880,249       2,162   0.46  
Noninterest-bearing liabilities:                                      
  Demand deposits   398,181                   383,423              
  Accrued expenses and other liabilities   15,619                   12,165              
  Total noninterest-bearing liabilities   413,800                   395,588              
Shareholders' equity   262,771                   185,192              
  Total liabilities and shareholders' equity $ 3,270,261                 $ 2,461,029              
  Net interest income         $ 21,886                 $ 17,172      
    Net interest spread               2.63 %                 2.79 %
    Net interest margin (4)               2.75 %                 2.89 %
  (1) Average balances for available for sale securities are based on amortized cost.
  (2) Interest income is presented on a tax-equivalent basis using a 35 percent federal tax rate.
  (3) Loans are stated net of unearned income and include nonaccrual loans.
  (4) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
     
     
     
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
       
  September 30, 2015   June 30, 2015
  Average   Income/       Average   Income/    
  Balance   Expense   Yield   Balance   Expense   Yield
ASSETS:                              
Interest-earning assets:                              
  Investments:                              
    Taxable (1) $ 214,967   $ 959   1.78%   $ 244,087   $ 1,037   1.70%
    Tax-exempt (1) (2)   30,682     211   2.76     30,941     210   2.71
  Loans held for sale   1,075     10   3.76     2,049     24   4.64
  Loans (2) (3):                              
  Mortgages   465,603     3,796   3.26     466,033     3,800   3.26
  Commercial mortgages   1,839,312     16,119   3.51     1,663,150     14,767   3.55
  Commercial   454,239     4,132   3.64     360,517     3,347   3.71
  Commercial construction   1,742     18   4.13     5,713     61   4.27
  Installment   31,361     268   3.42     29,169     256   3.51
  Home equity   51,012     415   3.25     51,710     417   3.23
  Other   510     12   9.41     527     12   9.11
  Total loans   2,843,779     24,760   3.48     2,576,819     22,660   3.52
Federal funds sold   101     -   0.10     101     -   0.10
Interest-earning deposits   96,308     46   0.19     69,780     39   0.22
    Total interest-earning assets   3,186,912     25,986   3.26%     2,923,777     23,970   3.28%
Noninterest-Earning Assets:                              
  Cash and due from banks   7,434               6,385          
  Allowance for loan losses   (23,726)               (21,493)          
  Premises and equipment   31,574               31,983          
  Other assets   68,067               66,131          
    Total noninterest-earning assets   83,349               83,006          
Total assets $ 3,270,261             $ 3,006,783          
                               
LIABILITIES:                              
Interest-bearing deposits:                              
  Checking $ 810,106   $ 356   0.18%   $ 670,473   $ 359   0.21%
  Money markets   757,135     546   0.29     703,236     461   0.26
  Savings   118,329     17   0.06     117,411     16   0.05
  Certificates of deposit - retail   403,593     1,296   1.28     343,781     1,051   1.22
    Subtotal interest-bearing deposits   2,089,163     2,215   0.42     1,834,901     1,887   0.41
  Interest-bearing demand - brokered   292,456     857   1.17     265,802     563   0.85
  Certificates of deposit - brokered   93,907     504   2.15     98,191     504   2.05
    Total interest-bearing deposits   2,475,526     3,576   0.58     2,198,894     2,954   0.54
  Borrowings   107,770     399   1.48     146,441     428   1.17
  Capital lease obligation   10,394     125   4.81     10,515     126   4.79
  Total interest-bearing liabilities   2,593,690     4,100   0.63     2,355,850     3,508   0.60
Noninterest-bearing liabilities:                              
  Demand deposits   398,181               384,604          
  Accrued expenses and other liabilities   15,619               12,133          
  Total noninterest-bearing liabilities   413,800               396,737          
Shareholders' equity   262,771               254,196          
  Total liabilities and shareholders' equity $ 3,270,261             $ 3,006,783          
  Net interest income       $ 21,886             $ 20,462    
    Net interest spread             2.63%               2.68%
    Net interest margin (4)             2.75%               2.80%
  (1) Average balances for available for sale securities are based on amortized cost.
  (2) Interest income is presented on a tax-equivalent basis using a 35 percent federal tax rate.
  (3) Loans are stated net of unearned income and include nonaccrual loans.
  (4) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
     
   
   
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
AVERAGE BALANCE SHEET  
UNAUDITED  
NINE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
   
  September 30, 2015     September 30, 2014  
  Average     Income/         Average     Income/      
  Balance     Expense   Yield     Balance     Expense   Yield  
ASSETS:                                      
Interest-earning assets:                                      
  Investments:                                      
    Taxable (1) $ 244,117     $ 3,178   1.74 %   $ 196,313     $ 2,998   2.04 %
    Tax-exempt (1) (2)   33,059       652   2.63       55,209       917   2.21  
  Loans held for sale   1,301       44   4.49       1,124       35   4.17  
  Loans (2) (3):                                      
    Mortgages   465,785       11,380   3.26       497,692       12,635   3.38  
    Commercial mortgages   1,655,501       44,475   3.58       1,108,732       31,943   3.84  
    Commercial   377,461       10,376   3.67       147,666       4,442   4.01  
    Commercial construction   4,446       141   4.23       5,989       197   4.39  
    Installment   29,454       776   3.51       22,906       710   4.13  
    Home equity   51,129       1,237   3.23       47,569       1,149   3.22  
    Other   522       37   9.45       562       39   9.25  
    Total loans   2,584,298       68,422   3.53       1,831,116       51,115   3.72  
  Federal funds sold   101       -   0.10       101       -   0.10  
  Interest-earning deposits   85,932       128   0.20       94,120       142   0.20  
      Total interest-earning assets   2,948,808       72,424   3.27 %     2,177,983       55,207   3.38 %
Noninterest-Earning Assets:                                      
  Cash and due from banks   6,877                   6,548              
  Allowance for loan losses   (21,772 )                 (17,012 )            
  Premises and equipment   31,935                   30,966              
  Other assets   66,038                   60,216              
    Total noninterest-earning assets   83,078                   80,718              
Total assets $ 3,031,886                 $ 2,258,701              
                                       
LIABILITIES:                                      
Interest-bearing deposits:                                      
  Checking $ 704,558     $ 1,028   0.19 %   $ 458,811     $ 438   0.13 %
  Money markets   723,824       1,470   0.27       666,986       1,137   0.23  
  Savings   116,410       48   0.05       115,746       45   0.05  
  Certificates of deposit - retail   332,315       3,010   1.21       154,091       1,081   0.94  
    Subtotal interest-bearing deposits   1,877,107       5,556   0.39       1,395,634       2,701   0.26  
  Interest-bearing demand - brokered   266,443       1,700   0.85       117,348       198   0.22  
  Certificates of deposit - brokered   106,048       1,532   1.93       86,986       845   1.30  
    Total interest-bearing deposits   2,249,598       8,788   0.52       1,599,968       3,744   0.31  
  Borrowings   121,277       1,219   1.34       97,359       1,149   1.57  
  Capital lease obligation   10,514       379   4.81       9,861       354   4.79  
  Total interest-bearing liabilities   2,381,389       10,386   0.58       1,707,188       5,247   0.41  
Noninterest-bearing liabilities:                                      
  Demand deposits   383,161                   361,726              
  Accrued expenses and other liabilities   12,852                   10,597              
  Total noninterest-bearing liabilities   396,013                   372,323              
Shareholders' equity   254,484                   179,190              
  Total liabilities and shareholders' equity $ 3,031,886                 $ 2,258,701              
Net interest income         $ 62,038                 $ 49,960      
  Net interest spread               2.69 %                 2.97 %
  Net interest margin (4)               2.81 %                 3.06 %
   
  (1) Average balances for available for sale securities are based on amortized cost.
  (2) Interest income is presented on a tax-equivalent basis using a 35 percent federal tax rate.
  (3) Loans are stated net of unearned income and include nonaccrual loans.
  (4) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
     
     
     

PEAPACK-GLADSTONE FINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES RECONCILIATION

Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders' equity and total assets, respectively. We calculate tangible book value per share by dividing tangible equity by period end common shares outstanding less restricted shares not yet vested, as compared to book value per common share, which we calculate by dividing shareholders' equity by period end common shares outstanding less restricted shares not yet vested. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.

The efficiency ratio is a non-GAAP measure of expense control relative to recurring revenue. We calculate the efficiency ratio by dividing total noninterest expenses, excluding ORE provision, as determined under GAAP, by net interest income and total noninterest income as determined under GAAP, but excluding net gains/(losses) on loans held for sale at lower of cost or fair value and excluding net gains on securities from this calculation, which we refer to below as recurring revenue. We believe that this provides one reasonable measure of core expenses relative to core revenue.

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titles measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share and efficiency ratio to the underlying GAAP numbers is set forth below.

Non-GAAP Financial Reconciliation

(Dollars in thousands, except share data)

  Three Months Ended
  Sept 30,   June 30,   March 31,   Dec 31,   Sept 30,
Tangible Book Value Per Share 2015   2015   2015   2014   2014
Shareholders' equity $ 266,400   $ 257,876   $ 249,353   $ 242,267   $ 188,070
Less: Intangible assets   3,311     3,342     563     563     563
  Tangible equity   263,089     254,534     248,790     241,704     187,507
                             
Period end shares outstanding   15,805,815     15,592,168     15,440,430     15,155,717     12,286,821
Less: Restricted shares not yet vested   435,312     436,908     429,642     345,095     382,252
Total outstanding shares   15,370,503     15,155,260     15,010,788     14,810,622     11,904,569
Tangible book value per share   17.12     16.80     16.57     16.32     15.75
Book value per share   17.33     17.02     16.61     16.36     15.80
                             
Tangible Equity to Tangible Assets                            
Total Assets   3,268,963     3,118,170     2,879,457     2,702,397     2,514,521
Less: Intangible assets   3,311     3,342     563     563     563
  Tangible assets   3,265,652     3,114,828     2,878,894     2,701,834     2,513,958
Tangible equity to tangible assets   8.06%     8.17%     8.64%     8.95%     7.46%
Equity to assets   8.15%     8.27%     8.66%     8.96%     7.48%
                             
                             
  Three Months Ended
  Sept 30,   June 30,   March 31,   Dec 31,   Sept 30,
Efficiency Ratio 2015   2015   2015   2014   2014
                             
Net interest income $ 21,706   $ 20,344   $ 19,583   $ 18,352   $ 17,048
Total other income   5,610     6,499     5,882     5,287     5,052
Less: (Loss)/gain on loans held for sale at lower of cost or fair value   -     -     -     (3)     (7)
Less: Securities gains, net   83     176     268     44     39
Total recurring revenue   27,233     26,667     25,197     23,598     22,068
                             
Operating expenses   16,899     16,266     15,768     15,578     14,693
Less: ORE provision   250     -     -     -     -
Total operating expenses   16,649     16,266     15,768     15,578     14,693
                             
Efficiency ratio   61.14%     61.00%     62.58%     66.01%     66.58%
                             
                             
  Nine Months Ended
  Sept 30,   Sept 30,
Efficiency Ratio 2015   2014
           
Net interest income $ 61,633   $ 49,542
Total other income   17,991     15,520
Less: Gain on loans held for sale at lower of cost or fair value   -     169
Less: Securities gains, net   527     216
Total recurring revenue   79,097     64,677
           
Operating expenses   48,933     43,962
Less: ORE provision   250     400
Total operating expenses   48,683     43,562
           
Efficiency ratio   61.55%     67.35%
           

Contact Information

  • Contact:
    Jeffrey J. Carfora
    SEVP and CFO
    Peapack-Gladstone Financial Corporation
    T: 908-719-4308