SOURCE: Peapack-Gladstone Financial Corporation

January 30, 2014 16:55 ET

Peapack-Gladstone Financial Corporation Reports Another Solid Quarter of Accomplishment

BEDMINSTER, NJ--(Marketwired - Jan 30, 2014) - Peapack-Gladstone Financial Corporation (NASDAQ: PGC) (the "Corporation" or the "Company") recorded net income of $2.40 million and diluted earnings per share of $0.25 for the quarter ended December 31, 2013.

Doug Kennedy, President and CEO, said, "We had another solid quarter of accomplishment, including achieving several new records."

  • We continued to implement and follow through on our Strategic Plan -- "Expanding Our Reach." The Plan focuses on the client experience and aggressively building and maintaining a private banking platform. 
  • In support of the growth associated with the Plan, we successfully raised $42 million (gross) of common equity in a rights offering and sale to standby investors that closed on December 12, 2013. Over 52 percent of the offering was subscribed by existing shareholders. The remainder was purchased by nine pre-arranged standby investors, the majority of which were new institutional shareholders in the Company. 
  • Total end of year loan balances reached another record level for the Company -- $1.57 billion. This level reflected an increase of $442 million or 39 percent from the balance at December 31, 2012, and included an increase of $177 million in the fourth quarter of 2013.
  • Total deposits also reached another record level. The end of year balance of $1.65 billion reflected an increase of $131 million or nearly nine percent from the balance at December 31, 2012, and included an increase of $75 million in the fourth quarter of 2013.
  • The Company's net interest income for the December 2013 quarter reached another quarterly record level -- $14.53 million. This level reflected improvement when compared to $12.76 million for the December 2012 quarter, and also reflected improvement when compared to $13.37 million for the immediately preceding September 2013 quarter.
  • At December 31, 2013, the market value of assets under administration at the Bank's Wealth Management Division of $2.69 billion was also another record for the Company. This level reflected an increase of 17 percent from the balance at December 31, 2012.
  • Fee income from Peapack-Gladstone Bank's Wealth Management Division of $3.55 million for the December 2013 quarter reflected growth of over 21 percent when compared to the $2.93 million for the December 2012 quarter.
  • Total revenue (net interest income plus other income) of $19.50 million for the December 2013 quarter reflected improvement when compared to prior quarters in 2013.
  • Trends in asset quality continue to demonstrate strong improvement when compared to prior periods. For example, nonperforming assets declined in both dollars and as a percentage of assets, to just 0.44 percent of total assets as of December 31, 2013, compared to 0.91 percent of total assets as of December 31, 2012.
  • The book value per share at December 31, 2013 of $14.79 reflected improvement when compared to $14.12 at September 30, 2013 and $13.87 at December 31, 2012. 
  • Capital ratios were benefitted by the December 2013 capital raise and were improved and very strong as of December 31, 2013, even with nearly $300 million growth in assets for the year, as well as migration of lower risk weighted investment security cash flows into loans. 

The $3.53 million pre-tax income, $2.40 million net income and $0.25 fully diluted earnings per share for the December 2013 quarter were negatively impacted by a $204 thousand ($128 thousand net of tax) search fee related to the new head of Wealth Management and also $602 thousand ($378 thousand net of tax) of accelerated depreciation expense related to the closing of our Operations Center and consolidation of the staff into our Administration building and equipment to an off-premises third party location. 

Mr. Kennedy noted, "As we previously announced, John Babcock will join the Company, effective March 10, 2014, as the head of private wealth management. John is a proven leader in the wealth management space and will be a tremendous asset to the Company as we continue to execute our strategy." 

Finn Caspersen Jr., Senior Executive Vice President and Chief Operating Officer of the Company, commented, "We are pleased to now have all of our operations support staff consolidated into our Administration building and our core operating system equipment located at an off-premises third party location. These moves have created operating efficiencies; reduced risk from a disaster preparedness perspective; and created a savings relative to ongoing premises and equipment expenses." 

Net Interest Income and Margin
Net interest income was $14.53 million for the fourth quarter of 2013, reflecting an increase of $1.77 million from the same quarter last year. The net interest margin, on a fully tax-equivalent basis, was 3.26 percent for the December 2013 quarter compared to 3.42 percent for the December 2012 quarter.

Net interest income for the current 2013 quarter benefitted from significant loan growth during 2013, principally multifamily and commercial mortgage, funded by deposits, borrowings, and a decline in lower yielding investment securities and interest earning cash balances.

Net interest margin for the December 2013 quarter declined when compared to the December 2012 quarter due to the effect of low market yields, which compressed asset yields more than deposit costs. The 3.26 percent net interest margin for the December 2013 quarter showed only minor compression when compared to the 3.28 percent for the immediately preceding September 2013 quarter.

Average Loans/Loan Originations
For the fourth quarter of 2013, average loans totaled $1.49 billion as compared to $1.13 billion for the same quarter in 2012, reflecting an increase of $366 million, or 33 percent. The average commercial mortgage and commercial loan portfolio for the quarter ended December 2013 increased $358 million, or 68 percent, from the same quarter of 2012. The increase was attributable to a more concerted focus on this type of business in both the New Jersey and New York City markets, as well as demand from high-quality borrowers looking to refinance multifamily and other commercial mortgages held by other institutions.

Total loan originations were $243 million for the fourth quarter of 2013, up significantly from $116 million for the same quarter of 2012. Loan originations were $779 million for the twelve months ended December 31, 2013, also up significantly from $397 million for the same twelve month period of 2012. Included in the total were commercial mortgage (principally multifamily) / commercial loan originations of $551 million and $202 million for the twelve months and three months ended December 31, 2013, respectively, compared to $150 million and $55 million for the 2012 periods, respectively. 

Mr. Kennedy said, "We are focused on generating solid lending growth, and we have been successful. As part of our Strategic Plan, we introduced a comprehensive Commercial & Industrial (C&I) lending program and we have closed $97 million of volume for the year. We expect such volume to continue to increase in future periods. Further, our multifamily and commercial real estate lenders have generated significant closed volume and continue to maintain very robust pipelines."

Average Deposits
For the December 2013 quarter, average total deposits (interest-bearing and noninterest-bearing) increased $216 million or 15 percent when compared to the same quarter last year. Over that same period, the Company saw growth in each of its deposit categories, except certificates of deposit. For the fourth quarter of 2013, average certificates of deposit (CDs) declined $23 million from the same 2012 quarter. These higher-cost CDs were replaced with lower-cost, more stable core deposits.

The Company continues to successfully focus on:

  • Business and personal relationships;
  • Municipal relationships within its market territory; and
  • Growth in deposits associated with its private banking and its lending activities.

Mr. Kennedy commented, "We will continue to place intense focus on providing high touch client service and growing our strong core deposit base. Service is a key differentiator for us that will enable us to grow our business. In addition, we now have a full array of Cash Management products in place that will help support our growth in C&I lending." 

Wealth Management Business
In the fourth quarter of 2013, Peapack-Gladstone Bank's wealth management business generated $3.55 million in fee income compared to $2.93 million for the fourth quarter of 2012, reflecting growth of 21 percent. The market value of the assets under administration (AUA) of the wealth management division was $2.69 billion at December 31, 2013, up from $2.30 billion at December 31, 2012 and $2.58 billion reported at September 30, 2013. The growth in fee income and AUA was due to new business, market value improvement, as well as solid investment advisory and management.

Mr. Kennedy noted, "We were pleased with the results of our Delaware Trust & Investment subsidiary which ended the year with nearly $100 million in assets under administration." Our wealth management business differentiates us from many of our competitors and adds significant value to our Company. Conversations with all clients and potential clients across all lines of business include a wealth discussion, which will help them to establish, maintain, and/or expand their legacy.

Other Noninterest Income
In the December 2013 quarter, other noninterest income, exclusive of wealth management fees and securities gains, totaled $1.30 million, reflecting a decrease of $42 thousand or 3 percent when compared to the same quarter a year ago. The fourth quarter of 2013 included $171 thousand of income from the sale of newly originated residential mortgage loans, down from $370 thousand in the same 2012 quarter. Mr. Kennedy noted, "Due to the rise in mortgage rates earlier this year, a decrease in residential mortgage loan originations and resultant mortgage banking income was expected and planned for. Reduced levels of mortgage banking income are expected to be ongoing. Fortunately, mortgage banking income is not a significant portion of revenue (under two percent of total revenue for the twelve months ended December 31, 2013). Further, we have reduced our overhead expense associated with mortgage banking; we have taken steps to improve our loan volume on the commercial front which has and will improve net interest income; and we have introduced Cash Management services/products, which we expect will contribute to noninterest income in the future."

Securities gains were $125 thousand for the December 2013 quarter compared to $3.08 million for the December 2012 quarter. The December 2012 quarter included a $2.87 million gain on the Company's negotiated sale of its entire pooled trust preferred securities portfolio. 

Operating Expenses
The Company's total operating expenses were $14.65 million for the fourth quarter of 2013 compared to $13.55 million in the same 2012 quarter. The 2013 quarter included the previously mentioned $204 thousand search fee for the new head of our Wealth Management Division and the $602 thousand accelerated depreciation expense related to the consolidation of the operations center staff and equipment. The 2012 quarter included a $929 thousand severance accrual related to certain senior management changes, and $336 thousand of costs related to the CEO search which brought Mr. Kennedy to the Company in October 2012. After excluding these items, operating expenses increased $1.59 million in the December 2013 quarter compared to the December 2012 quarter. Salary and benefits expense rose in the 2013 quarter from the 2012 quarter principally due to strategic hiring in line with the Company's Strategic Plan, as well as normal salary increases and increased bonus/incentive and profit sharing accruals. The 2013 expense levels also included various professional and other fees associated with various training and consulting, some of which was associated with the Strategic Plan.

Mr. Kennedy noted, "We expected higher operating expenses in 2013 relative to 2012. We expect that the trend of higher operating expenses will continue in 2014 as we bring on high caliber revenue producers, and continue to invest in our infrastructure in line with our Strategic Plan. Further, we generally expect revenue and profitability related to new personnel to lag those expenses by several quarters. It is important to note, however, that we did see an improvement in revenue in each of the quarters this year, and particularly in the December 2013 quarter as our plan began to gain momentum later in the year."

Provision for Loan Losses / Asset Quality
For the quarter ended December 31, 2013, the Company's provision for loan losses was $1.33 million compared to a $4.53 million provision recorded in the fourth quarter of 2012. Charge-offs, net of recoveries, for the fourth quarter of 2013 were $8 thousand compared to $5.68 million for the December 2012 quarter. The 2012 charge-off level included charge-offs related to $19 million of classified loans strategically moved to loans held for sale at December 31, 2012. These loans were sold in the first quarter of 2013 resulting in a gain of $522 thousand. 

At December 31, 2013 the allowance for loan losses was 232 percent of nonperforming loans and 0.98 percent of total loans. Nonperforming assets totaled $8.6 million or just 0.44 percent of total assets at December 31, 2013 compared to $15.2 million or 0.91 percent of assets at December 31, 2012. The 0.44 percent nonperforming asset ratio, at December 31, 2013, compares favorably to a 1.20 percent weighted average for all Mid-Atlantic banks. 

Capital / Dividends
At December 31, 2013, after accounting for the capital raise, the Company's leverage ratio, tier 1 and total risk based capital ratios were 9.00 percent, 14.07 percent and 15.33 percent, respectively. The Company's ratios are all significantly above the levels required to be considered well-capitalized under regulatory guidelines applicable to banks. The Company's common equity ratio (common equity to total assets) at December 31, 2013 was 8.68 percent of total assets, up when compared to 7.32 percent at December 31, 2012.

On January 23, 2014, the Board of Directors declared a regular cash dividend of $0.05 per share payable on February 21, 2014 to shareholders of record on February 6, 2014.

ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $1.97 billion as of December 31, 2013. 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;
  • 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 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 cyber attacks against our IT infrastructure and that of our IT providers;
  • higher than expected FDIC insurance premiums;
  • 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, 2012. 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
    Dec 31,   Sept 30,   June 30,   March 31,   Dec 31,
    2013   2013   2013   2013   2012
ASSETS                              
Cash and due from banks   $ 6,534   $ 5,886   $ 5,978   $ 5,030   $ 6,733
Federal funds sold     101     101     101     100     100
Interest-earning deposits     28,512     33,528     60,783     94,147     112,395
  Total cash and cash equivalents     35,147     39,515     66,862     99,277     119,228
                               
Securities held to maturity     -     -     -     -     -
Securities available for sale     268,447     273,952     270,334     283,448     304,479
FHLB and FRB Stock, at cost     10,032     7,707     4,729     4,643     4,639
                               
Loans held for sale, at fair value     2,001     724     4,684     1,828     6,461
Loans held for sale, at lower of cost or fair value    
-
   
-
   
-
   
-
   
13,749
                               
Residential mortgage     532,911     527,927     532,356     523,051     515,014
Commercial mortgage     831,997     680,762     534,371     455,670     420,086
Commercial loans     131,795     110,843     106,598     105,305     115,372
Construction loans     5,893     8,390     9,179     9,180     9,328
Consumer loans     21,852     19,932     19,552     20,782     21,188
Home equity lines of credit     47,905     47,020     47,583     46,778     49,635
Other loans     1,848     2,075     2,545     997     1,961
  Total loans     1,574,201     1,396,949     1,252,184     1,161,763     1,132,584
  Less: Allowance for loan losses     15,373     14,056     13,438     13,279     12,735
  Net loans     1,558,828     1,382,893     1,238,746     1,148,484     1,119,849
                               
Premises and equipment     28,990     29,022     29,021     29,429     30,030
Other real estate owned     1,941     2,759     3,347     4,141     3,496
Accrued interest receivable     4,086     4,017     3,972     3,768     3,864
Bank owned life insurance     31,882     31,691     31,490     31,283     31,088
Deferred tax assets, net     9,762     7,951     8,608     10,384     9,478
Other assets     15,832     17,473     17,797     18,647     21,475
  TOTAL ASSETS   $ 1,966,948   $ 1,797,704   $ 1,679,590   $ 1,635,332   $ 1,667,836
                               
LIABILITIES                              
Deposits:                              
  Noninterest-bearing demand deposits   $ 356,119   $ 345,736   $ 326,916   $ 307,730   $ 298,095
  Interest-bearing deposits                              
    Checking     388,340     338,626     352,196     336,934     346,877
    Savings     115,785     115,571     115,823     114,804     109,686
    Money market accounts     630,173     611,498     559,439     547,302     583,197
    CD's $100,000 and over     61,128     62,136     65,607     67,902     68,741
    CD's less than $100,000     95,705     98,996     102,945     106,432     109,831
  Total deposits     1,647,250     1,572,563     1,522,926     1,481,104     1,516,427
Overnight borrowings     54,900     30,361     -     -     -
Federal home loan bank advances     74,692     47,692     12,000     12,099     12,218
Capital lease obligation     8,754     8,809     8,864     8,918     8,971
Other Liabilities     10,695     11,861     11,687     8,605     8,163
  TOTAL LIABILITIES     1,796,291     1,671,286     1,555,477     1,510,726     1,545,779
Shareholders' equity     170,657     126,418     124,113     124,606     122,057
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $
1,966,948
  $
1,797,704
  $
1,679,590
  $
1,635,332
  $
1,667,836
                               
Assets under administration at PGB Trust & Investments (market value, not included above)   $

2,690,601
  $

2,581,813
  $

2,520,424
  $

2,544,465
  $

2,303,612
                               
                               
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED BALANCE SHEET DATA  
(Dollars in Thousands)  
(Unaudited)  
                                     
             
    Dec 31,     Sept 30,     June 30,     March 31,     Dec 31,        
    2013     2013     2013     2013     2012        
Asset Quality:                                              
Loans past due over 90 days and still accruing   $ -     $ -     $ -     $ -     $ -        
Nonaccrual loans     6,630       6,891       8,075       11,290       11,732     (C )
Other real estate owned     1,941       2,759       3,347       4,141       3,496        
  Total nonperforming assets   $ 8,571     $ 9,650     $ 11,422     $ 15,431     $ 15,228     (C )
                                               
Nonperforming loans to total loans      0.42 %      0.49 %      0.64 %      0.97 %      1.04 %   (C )
Nonperforming assets to total assets     0.44 %      0.54 %      0.68 %      0.94 %      0.91 %   (C )
                                               
Accruing TDR's (A)   $ 11,114     $ 6,133     $ 6,131     $ 5,986     $ 6,415     (C )
                                               
Loans past due 30 through 89 days and still accruing   $
2,953
    $
2,039
    $
1,544
    $
1,791
    $
3,786
       
                                               
Classified loans (B)   $ 33,827     $ 32,430     $ 32,123     $ 35,945     $ 32,014     (C )
                                               
Impaired loans (B)   $ 17,744     $ 16,794     $ 17,977     $ 21,046     $ 18,147     (C )
                                               
Allowance for loan losses:                                              
  Beginning of period   $ 14,056     $ 13,438     $ 13,279     $ 12,735     $ 13,893        
  Provision for loan losses     1,325       750       500       850       4,525        
  Charge-offs, net     (8 )     (132 )     (341 )     (306 )     (5,683 )      
  End of period   $ 15,373     $ 14,056     $ 13,438     $ 13,279     $ 12,735        
                                               
ALLL to nonperforming loans     231.87 %     203.98 %     166.41 %     117.62 %     108.55 %   (C )
ALLL to total loans     0.98 %     1.01 %     1.07 %     1.14 %     1.12 %   (C )
                                               
Capital Adequacy:                                              
Tier I leverage     9.00 %     7.20 %     7.39 %     7.37 %     7.27 %      
                                               
Tier I capital to risk-weighted assets     14.07 %     11.30 %     11.84 %     12.16 %     11.83 %      
                                               
Tier I & II capital torisk-weighted assets     15.33 %     12.55 %     13.09 %     13.41 %     13.08 %      
                                               
Common equity to total assets     8.68 %     7.03 %     7.39 %     7.62 %     7.32 %      
(End of period)                                              
                                               
Book value per common share   $ 14.79     $ 14.12     $ 13.93     $ 14.05     $ 13.87        
                                               
(A) Does not include $2.9 million at December 31, 2013, $3.3 million at September 30, 2013, $3.3 million at June 30, 2013, $3.3 million at March 31, 2013 and $2.9 million at December 31, 2012 of TDR's included in nonaccrual loans.
   
(B) Classified loans include all impaired loans. Impaired loans include all nonaccrual loans and all TDRs.
   
(C) Does not include classified Loans Held for Sale, as these loans were carried at lower of cost or fair value and were being marketed for sale as of 12/31/12. The sale closed during Q1 2013.
   
   
 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
LOANS CLOSED AND FUNDED
(Dollars in Thousands)
(Unaudited)
 
    For the Quarters Ended
    Dec 31,   Sept 30,   June 30,   March 31,   Dec 31,
    2013   2013   2013   2013   2012
                               
Residential loans retained   $ 20,135   $ 31,517   $ 37,352   $ 31,430   $ 34,699
Residential loans sold     11,743     13,516     26,651     25,402     20,677
Total residential loans     31,878     45,033     64,003     56,832     55,376
                               
CRE     11,972     20,357     17,080     9,490     13,125
Multifamily     152,456     143,727     70,645     27,880     39,160
Commercial loans     37,188     38,433     7,120     14,493     2,790
                               
Small business banking & Installment loans     5,427     4,710     2,866     2,693     2,657
                               
Home equity lines of credit     3,746     3,982     2,619     4,452     2,501
                               
Total loan originations   $ 242,667   $ 256,242   $ 164,333   $ 115,840   $ 115,609
                               
   
      For the Twelve Months Ended
    Dec 31,   Dec 31,
    2013   2012
             
Residential loans retained   $ 120,434   $ 140,504
Residential loans sold     77,312     79,737
Total residential loans     197,746     220,241
             
CRE     58,899     64,072
Multifamily     394,707     69,360
Commercial loans     97,234     16,864
             
Small business banking & Installment loans     15,696     12,673
             
Home equity lines of credit     14,799     13,460
             
Total loan originations   $ 779,081   $ 396,670
             
             
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED CONSOLIDATED FINANCIAL DATA  
(Dollars in thousands, except share data)  
(Unaudited)  
   
           
    Dec 31,   Sept 30,   June 30,   March 31,         Dec 31,      
    2013   2013   2013   2013         2012      
Income Statement Data:                                          
Interest income   $ 15,738   $ 14,423   $ 13,460   $ 13,432         $ 13,792      
Interest expense     1,210     1,050     1,012     1,005           1,033      
  Net interest income     14,528     13,373     12,448     12,427           12,759      
Provision for loan losses     1,325     750     500     850           4,525      
  Net interest income after provision for loan losses     13,203     12,623     11,948     11,577           8,234      
Trust fees     3,547     3,295     3,628     3,368           2,929      
Gain on sale of classified loans     -     -     -     522           -      
Gain on loans sold (Mortgage Banking)     171     277     412     470           370      
Other income     1,130     1,022     958     955           973      
Securities gains, net     125     188     238     289           3,078      
  Total other income     4,973     4,782     5,236     5,604           7,350      
Salaries and employee benefits     8,308     8,927     7,935     7,079           8,045      
Premises and equipment     2,947     2,325     2,338     2,304           2,433      
FDIC insurance expense     286     275     280     280           267      
Other expenses     3,105     2,638     3,526     2,630           2,808      
  Total operating expenses     14,646     14,165     14,079     12,293           13,553      
Income before income taxes     3,530     3,240     3,105     4,888           2,031      
Income tax expense     1,135     1,276     1,096     1,995           973      
Net income     2,395     1,964     2,009     2,893           1,058      
Dividends and accretion on preferred stock     -     -     -     -           -      
Net income available to common shareholders   $ 2,395   $ 1,964   $ 2,009   $ 2,893         $ 1,058      
                                           
Total revenue   $ 19,501   $ 18,155   $ 17,684   $ 17,509   (A )   $ 17,239   (B )
(See footnotes below)                                          
                                           
Per Common Share Data:                                          
                                           
Earnings per share (basic)   $ 0.25   $ 0.22   $ 0.23   $ 0.33         $ 0.12      
Earnings per share (diluted)     0.25     0.22     0.22     0.32           0.12      
                                           
Performance Ratios:                                          
                                           
Return on average assets     0.51 %   0.45 %   0.48 %   0.71 %         0.26 %    
Return on average common equity     7.42 %   6.28 %   6.41 %   9.40 %         3.52 %    
                                           
Net interest margin                                          
  (Taxable equivalent basis)     3.26 %   3.28 %   3.22 %   3.28 %         3.42 %    
                                           
                                           
(A) Excludes a $522 thousand gain from sale of classified loans. Including this gain, total revenue was $18,031.
(B) Excludes a $2.9 million gain from sale of the Company's Pooled Trust Preferred Securities portfolio. Including this gain, total revenue was $20,109.
   
   
 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
 
    For the  
    Twelve Months Ended  
    December 31,  
    2013         2012      
                         
                         
Income Statement Data:                        
Interest income   $ 57,053         $ 56,090      
Interest expense     4,277           4,687      
  Net interest income     52,776           51,403      
Provision for loan losses     3,425           8,275      
  Net interest income after provision for loan losses     49,351           43,128      
Trust fees     13,838           12,282      
Gain on sale of classified loans     522           -      
Gain on loans sold (Mortgage Banking)     1,330           1,195      
Other income     4,065           4,016      
Securities gains, net     840           3,810      
  Total other income     20,595           21,303      
Salaries and employee benefits     32,249           27,595      
Premises and equipment     9,914           9,467      
FDIC insurance expense     1,121           1,208      
Other expenses     11,899           10,060      
  Total operating expenses     55,183           48,330      
Income before income taxes     14,763           16,101      
Income tax expense     5,502           6,405      
Net income     9,261           9,696      
Dividends and accretion on preferred stock     -           474      
Net income available to common shareholders   $ 9,261         $ 9,222      
                         
Total revenue   $ 72,849   (A )   $ 69,836   (B )
(See footnotes below)                        
                         
Per Common Share Data:                        
                         
Earnings per share (basic)   $ 1.02         $ 1.05      
Earnings per share (diluted)     1.01           1.05      
                         
Performance Ratios:                        
                         
Return on average assets     0.54 %         0.61 %    
Return on average common equity     7.37 %         8.03 %    
                         
Net interest margin                        
  (Tax equivalent basis)     3.26 %         3.50 %    
                           
                           
(A) Excludes a $522 thousand gain from sale of classified loans in the March 2013 quarter. Including this gain, total revenue would have been $73,371.
(B) Excludes a $2.87 million gain from sale of the Company's Pooled Trust Preferred Securities portfolio in the December 2012 quarter. Including this gain, total revenue would have been $72,706.
   
   
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
AVERAGE BALANCE SHEET  
UNAUDITED  
THREE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
                 
    December 31, 2013     December 31, 2012  
    Average     Income/         Average     Income/      
    Balance     Expense   Yield     Balance     Expense   Yield  
ASSETS:                                        
Interest-Earning Assets:                                        
  Investments:                                        
    Taxable (1)   $ 213,779     $ 1,103   2.06 %   $ 267,890     $ 1,423   2.12 %
    Tax-exempt (1) (2)     57,358       333   2.32       47,262       327   2.77  
  Loans held for sale     1,186       17   5.76       4,355       48   4.40  
  Loans (2) (3)     1,491,667       14,422   3.87       1,125,490       12,107   4.30  
  Federal funds sold     101       -   0.10       100       -   0.10  
  Interest-earning deposits     38,351       17   0.18       66,942       41   0.24  
  Total interest-earning assets     1,802,442     $ 15,892   3.53 %     1,512,039     $ 13,946   3.69 %
Noninterest-Earning Assets:                                        
  Cash and due from banks     6,217                   6,885              
  Allowance for loan losses     (14,385 )                 (14,020 )            
  Premises and equipment     29,220                   30,350              
  Other assets     64,818                   76,251              
    Total noninterest-earning assets     85,870                   99,466              
Total assets   $ 1,888,312                 $ 1,611,505              
                                         
LIABILITIES:                                        
Interest-Bearing Deposits:                                        
  Checking   $ 410,409     $ 98   0.10 %   $ 346,373     $ 87   0.10 %
  Money markets     629,580       319   0.20       517,470       202   0.16  
  Savings     115,186       15   0.05       105,228       14   0.05  
  Certificates of deposit     158,085       393   0.99       180,941       528   1.17  
    Total interest-bearing deposits     1,313,260       825   0.25       1,150,012       831   0.29  
  Borrowings     61,585       281   1.83       12,258       95   3.10  
  Capital lease obligation     8,773       104   4.74       8,990       107   4.76  
  Total interest-bearing liabilities     1,383,618       1,210   0.35       1,171,260       1,033   0.35  
Noninterest -Bearing Liabilities:                                        
  Demand deposits     364,463                   311,920              
  Accrued expenses and other liabilities     11,159                   8,144              
  Total noninterest-bearing liabilities     375,622                   320,064              
Shareholders' equity     129,072                   120,181              
  Total liabilities and shareholders' equity   $ 1,888,312                 $ 1,611,505              
Net interest income           $ 14,682                 $ 12,913      
  Net interest spread                 3.18 %                 3.34 %
  Net interest margin (4)                 3.26 %                 3.42 %
                                         
                                         
(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)
                                 
    December 31, 2013     September 30, 2013  
    Average Balance     Income/ Expense   Yield     Average Balance     Income/ Expense   Yield  
ASSETS:                                        
Interest-Earning Assets:                                        
  Investments:                                        
    Taxable (1)   $ 213,779     $ 1,103   2.06 %   $ 237,559     $ 1,141   1.92 %
    Tax-exempt (1) (2)     57,358       333   2.32       54,465       328   2.41  
  Loans held for sale     1,186       17   5.76       1,617       21   5.27  
  Loans (2) (3)     1,491,667       14,422   3.87       1,322,842       13,065   3.95  
  Federal funds sold     101       -   0.10       101       -   0.10  
  Interest-earning deposits     38,351       17   0.18       35,168       21   0.24  
  Total interest-earning assets     1,802,442     $ 15,892   3.53 %     1,651,752     $ 14,576   3.53 %
Noninterest-Earning Assets:                                        
  Cash and due from banks     6,217                   5,962              
  Allowance for loan losses     (14,385 )                 (13,615 )            
  Premises and equipment     29,220                   28,984              
  Other assets     64,818                   65,163              
    Total noninterest-earning assets     85,870                   86,494              
Total assets   $ 1,888,312                 $ 1,738,246              
                                         
LIABILITIES:                                        
Interest-Bearing Deposits:                                        
  Checking   $ 410,409     $ 98   0.10 %   $ 349,392     $ 73   0.08 %
  Money markets     629,580       319   0.20       580,819       275   0.19  
  Savings     115,186       15   0.05       115,711       15   0.05  
  Certificates of deposit     158,085       393   0.99       165,347       444   1.07  
    Total interest-bearing deposits     1,313,260       825   0.25       1,211,269       807   0.27  
  Borrowings     61,585       281   1.83       45,149       138   1.22  
  Capital lease obligation     8,773       104   4.74       8,828       105   4.76  
  Total interest-bearing liabilities     1,383,618       1,210   0.35       1,265,246       1,050   0.33  
Noninterest -Bearing Liabilities:                                        
  Demand deposits     364,463                   337,684              
  Accrued expenses and other liabilities     11,159                   10,241              
  Total noninterest-bearing liabilities     375,622                   347,925              
Shareholders' equity     129,072                   125,075              
  Total liabilities and shareholders' equity   $ 1,888,312                 $ 1,738,246              
Net interest income           $ 14,682                 $ 13,526      
Net interest spread                 3.18 %                 3.20 %
Net interest margin (4)                 3.26 %                 3.28 %
                                         
                                         
(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  
TWELVE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
                                 
    December 31, 2013     December 31, 2012  
    Average     Income/         Average     Income/      
    Balance     Expense   Yield     Balance     Expense   Yield  
ASSETS:                                        
Interest-Earning Assets:                                        
  Investments:                                        
    Taxable (1)   $ 230,158     $ 4,606   2.00 %   $ 303,599     $ 7,033   2.32 %
    Tax-exempt (1) (2)     53,038       1,307   2.46       46,780       1,363   2.91  
  Loans held for sale     5,498       285   5.18       2,487       123   4.94  
  Loans (2) (3)     1,290,247       51,311   3.98       1,094,696       48,112   4.40  
  Federal funds sold     101       -   0.10       100       -   0.10  
  Interest-earning deposits     60,685       152   0.25       41,303       98   0.24  
    Total interest-earning assets     1,639,727     $ 57,661   3.52 %     1,488,965     $ 56,729   3.81 %
Noninterest-Earning Assets:                                        
  Cash and due from banks     5,970                   6,506              
  Allowance for loan losses     (13,653 )                 (13,942 )            
  Premises and equipment     29,312                   31,049              
  Other assets     69,197                   77,048              
    Total noninterest-earning assets     90,826                   100,661              
Total assets   $ 1,730,553                 $ 1,589,626              
                                         
LIABILITIES:                                        
Interest-Bearing Deposits:                                        
  Checking   $ 366,703     $ 323   0.09 %   $ 336,228     $ 379   0.11 %
  Money markets     578,819       1,048   0.18       510,633       1,022   0.20  
  Savings     113,914       59   0.05       101,068       70   0.07  
  Certificates of deposit     167,921       1,823   1.09       188,918       2,237   1.18  
    Total interest-bearing deposits     1,227,357       3,253   0.27       1,136,847       3,708   0.33  
  Borrowings     32,894       603   1.83       25,277       548   2.17  
  Capital lease obligation     8,855       421   4.75       9,067       431   4.75  
  Total interest-bearing liabilities     1,269,106       4,277   0.34       1,171,191       4,687   0.40  
Noninterest -BearingLiabilities:                                        
  Demand deposits     326,286                   296,250              
  Accrued expenses and other liabilities     9,460                   6,977              
  Total noninterest-bearing liabilities     335,746                   303,227              
Shareholders' equity     125,701                   115,208              
  Total liabilities and shareholders' equity   $ 1,730,553                 $ 1,589,626              
Net interest income           $ 53,384                 $ 52,042      
  Net interest spread                 3.18 %                 3.41 %
  Net interest margin (4)                 3.26 %                 3.50 %
                                         
                                         
(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.
   
   

Contact Information

  • Contact:

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