SOURCE: Peapack-Gladstone Financial Corporation

April 22, 2014 09:35 ET

Peapack-Gladstone Financial Corporation Reports Another Solid Quarter as It Continues to Execute Its Strategic Plan

BEDMINSTER, NJ--(Marketwired - Apr 22, 2014) - Peapack-Gladstone Financial Corporation (NASDAQ: PGC) (the "Corporation" or the "Company") recorded pretax income of $4.90 million, net income of $3.03 million and diluted earnings per share of $0.26 for the quarter ended March 31, 2014.

Doug Kennedy, President and CEO, said, "We had another solid quarter of accomplishment, as we continued to execute on our Strategic Plan -- 'Expanding Our Reach.' The plan focuses on the client experience and aggressively building and maintaining our private banking platform."

  • Total end of quarter loan balances reached another record level for the Company -- $1.76 billion. This level reflected an increase when compared to $1.57 billion at December 31, 2013, and $1.16 billion one year ago at March 31, 2013.
  • The Company's net interest income for the March 2014 quarter reached another quarterly record level -- $15.57 million. This level reflected improvement when compared to $14.53 million for the December 2013 quarter, and when compared to $12.43 million for the same quarter last year.
  • As previously announced, John Babcock joined the Company, effective March 10, 2014, as the head of private wealth management. Mr. Babcock is a proven leader in the wealth management space and will be a tremendous asset to the Company as it executes its strategy.
  • Also as previously announced, three seasoned wealth advisors have joined the Company from larger wealth management companies.
  • At March 31, 2014, the market value of assets under administration at the Private Wealth Management Division of Peapack-Gladstone Bank ("The Bank") was $2.75 billion, also another record for the Company. 
  • Fee income from the Private Wealth Management Division totaled $3.75 million for the March 2014 quarter reflecting growth when compared to $3.55 million for the December 2013 quarter, and $3.37 million for the March 2013 quarter.
  • Total revenue (net interest income plus other income) of $20.57 million for the March 2014 quarter reflected improvement when compared to $19.50 million for the December 2013 quarter, and to $17.51 million (after removing the $522 thousand gain on sale of classified loans) for the March 2013 quarter.
  • Asset quality metrics remained strong at March 31, 2014 when compared to prior periods. For example, nonperforming assets stood at just 0.42 percent of total assets as of March 31, 2014, compared to 0.44 percent of total assets of December 31, 2013, and 0.94 percent of total assets at March 31, 2013. Additionally, the Company's nonperforming asset ratio compares very favorably to the weighted average for all Mid-Atlantic banks of 1.1 percent. 
  • The book value per share at March 31, 2014 of $15.08 reflected improvement when compared to $14.79 at December 31, 2013 and $14.05 at March 31, 2013.
  • Capital ratios remain very strong as of March 31, 2014, even with significant asset growth for the quarter, as well as migration of lower risk weighted investment security cash flows into loans.

The following table summarizes earnings for the quarters ended:

    March   December   March
    2014   2013   2013
(Dollars in millions, except EPS)   (1)   (2)   (3)
Pretax income   $ 4.90   $ 3.53   $ 4.89
Net income     3.03     2.40     2.89
Diluted EPS   $ 0.26   $ 0.25   $ 0.32
                   
(1)   The March 2014 earnings per share calculations include all of the 2.47 million shares issued in the December 12, 2013 capital raise. 
(2)   As previously reported, the December 2013 quarter included certain expenses related to two specific items totaling $806 thousand ($506 thousand net of tax), the largest of which was accelerated depreciation expense related to the Operations Center consolidation.
(3)   The March 2013 quarter included a $522 thousand ($328 thousand net of tax) gain on sale of classified loans. 
     
     

Net Interest Income / Net Interest Margin

Net interest income was $15.57 million for the first quarter of 2014, reflecting an increase of $1.04 million from the December 2013 quarter and an increase of $3.14 million from the same quarter last year. The net interest margin, on a fully tax-equivalent basis, was 3.18 percent for the March 2014 quarter compared to 3.26 percent for the December 2013 quarter and 3.28 percent for the March 2013 quarter.

Net interest income for the current 2014 quarter benefitted from significant loan growth during the first quarter of 2014 as well as the last half of 2013, principally multifamily and commercial mortgages.

Net interest margin for the March 2014 quarter declined slightly when compared to the December 2013 and March 2013 quarters due to the continued effect of low market yields and tighter market spreads. 

Funding / Deposits

The asset growth in the March 2014 quarter was funded by a diversified source of funding alternatives. During the quarter, $58.0 million of customer deposits, $60.0 million of brokered certificates of deposit ("CDs"), and $9.0 million of FHLB advances were added. And, investment securities cash flows of $20.4 million and capital growth of $5.2 million also funded the asset growth. Lastly, short term funding (which includes overnight wholesale borrowings plus short term brokered interest bearing demand deposit balances) provided $152.5 million of additional funding in the March 2014 quarter. Brokered interest bearing demand deposits have been utilized in place of wholesale overnight borrowings as a more cost effective alternative. The Company does ensure ample available collateralized liquidity as a backup to these short term brokered deposits. 

Mr. Kennedy commented, "Our private bankers, commercial bankers, relationship bankers and our treasury management team have robust pipelines of client deposits. Given these pipelines, the Company utilized brokered CDs and borrowings with terms laddered in such a way to mature as we expect new client deposits to be added." Mr. Kennedy went on to note, "A large portion of our short term funding at March 31, 2014 was or will be paid down in April 2014."

Excess cash on hand held as of March 31, 2014 was used to pay down $50 million of overnight borrowings on April 1, 2014. $25 million of medium/longer term brokered CDs were added in mid-April with proceeds used to reduce overnight borrowings. Finally, the Company anticipates that the sale of the $51.2 million of one-to-four family residential mortgage loans held for sale as of March 31, 2014 will close in late April with the proceeds used to reduce short term funding. 

Mr. Kennedy further commented, "We will continue to place intense focus on providing high touch client service and growing our core deposit base. Service is a key differentiator for us that will enable us to grow our business. In addition, we have a full array of treasury management products in place that will help support our core deposit growth and also our commercial lending opportunities." 

Loan Originations / Loans

Total multifamily and commercial mortgage originations were $241 million for the March 2014 quarter, compared to $164 million for the December 2013 quarter, and $37 million for the March 2013 quarter. At March 31, 2014, loans totaled $1.76 billion as compared to $1.16 billion at March 31, 2013. The multifamily and commercial mortgage loan portfolio more than doubled when comparing the March 2014 balance to the March 2013 balance. The increase was attributable to the addition of seasoned banking professionals over the course of 2013; a more concerted focus on the client service aspect of the lending process; more of a focus on New Jersey markets; and a focus on New York City multifamily markets beginning in mid-2013. The increase was also due to demand from high quality borrowers looking to refinance multifamily and other commercial mortgages held by other institutions. Mr. Kennedy noted, "Our analysis showed that multifamily lending could be grown quickly without undue risk and that this lending provides solid risk-adjusted returns." The multifamily and commercial mortgage pipeline stood at $340 million as of March 31, 2014.

The commercial loan portfolio increased $38 million when comparing the March 2014 balance to the March 2013 balance. Mr. Kennedy said, "As part of our Strategic Plan, we introduced a comprehensive Commercial & Industrial (C&I) lending program. We closed $97 million of C&I loans in 2013 and an additional $16 million in the March 2014 quarter. And, our C&I pipeline stood at $110 million as of March 31, 2014. Given our pipeline and our strategic focus, we expect C&I loan volume to increase in future periods."

Wealth Management Business

In the March 2014 quarter, Peapack-Gladstone Bank's Wealth Management business generated $3.75 million in fee income compared to $3.55 million for the December 2013 quarter, and compared to $3.37 million for the March 2013 quarter. The market value of the assets under administration (AUA) of the wealth management division was $2.75 billion at March 31, 2014, up from $2.54 billion at March 31, 2013. The growth in fee income and AUA was due to a combination of new business and market value improvement.

John P. Babcock, President of Private Wealth Management, noted, "Our wealth management business differentiates us from our peer group competitors, adds significant value to our Company, and is a key component of our overall strategy to incorporate wealth in to every conversation we have with all of our clients, across all lines of business." Mr. Babcock went on to comment, "I am very excited to have joined the existing high-caliber team of wealth professionals here at PGB. The quality of this existing team and the level of advice and service it delivers to clients, combined with our forward vision, has enabled me to attract other proven, high-performing wealth advisors. I look forward to continuing to build-out and grow the size of our team as well as expanding the platform of products, services and advice we can deliver to our clients."

Other Noninterest Income

In the March 2014 quarter, other noninterest income, exclusive of wealth management fees and securities gains, totaled $1.14 million, reflecting a decrease of $282 thousand when compared to the same quarter a year ago. The March 2014 quarter included $112 thousand of income from the sale of newly originated residential mortgage loans, down from $470 thousand in the same 2013 quarter.

Mr. Kennedy commented, "As noted in prior quarters, the rise in mortgage rates in the middle of 2013 caused a decrease in residential mortgage loan originations and resultant mortgage banking income. Reduced levels of mortgage banking income was expected and planned for, and reduced levels of mortgage banking income are expected to be ongoing. Fortunately, mortgage banking income is not a significant portion of revenue. Further, we have reduced our overhead expense associated with mortgage banking; we have improved our loan volume on the commercial front which has and will improve net interest income; and we have introduced treasury management services/products, which we expect will contribute to noninterest income in the future."

Securities gains were $98 thousand for the March 2014 quarter compared to $289 thousand for the March 2013 quarter. Sales of securities have been generally employed to benefit interest rate risk, prepayment risk, and/or liquidity risk. Given the short duration of the securities portfolio, sales have been employed less often in recent periods. 

Operating Expenses

The Company's total operating expenses were $14.34 million for the quarter ended March 31, 2014 compared to $12.29 million in the same 2013 quarter, reflecting an increase of $2.05 million. Salary and benefits expense accounted for the bulk of the increase, due to strategic hiring in line with the Company's Strategic Plan, including hires associated with implementation of Enterprise Risk Management, as well as normal salary increases and increased bonus/incentive accruals. Also, when comparing the March 2014 expense levels to those in March 2013, 2014 included increased occupancy costs associated with the new Princeton and Teaneck Private Banking offices, as well as 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 as we execute our Strategic Plan. 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 quarterly revenue since we launched our Plan, particularly in the December 2013 and March 2014 quarters, as our Plan began to gain momentum late in 2013."

When comparing the March 2014 expense levels to those of December 2013, operating expenses declined $307 thousand. However, the December 2013 quarter included certain expenses related to two specific items totaling $806 thousand, the largest of which was accelerated depreciation expense related to the Operations Center consolidation. Excluding these items, operating expenses would have increased $499 thousand, as contemplated in our Plan.

Provision for Loan Losses / Asset Quality

For the quarter ended March 2014, the Company's provision for loan losses was $1.33 million, the same amount as the December 2013 provision, and up $475 thousand when compared to the $850 thousand provision for the March 2013 quarter. Charge-offs, net of recoveries, for the March 2014 quarter were only $111 thousand. 

At March 31, 2014 the allowance for loan losses was 222 percent of nonperforming loans and 0.94 percent of total loans. Nonperforming assets totaled $9.5 million or just 0.42 percent of total assets at March 31, 2014 compared to $15.4 million or 0.94 percent of assets at March 31, 2013.

Capital / Dividends

During the March 2014 quarter, the Company continued to employ the capital raised in December 2013 by continuing to grow loans. At March 31, 2014, the Company's leverage ratio, tier 1 and total risk based capital ratios were 8.5 percent, 13.1 percent and 14.3 percent, respectively. The Company's ratios are all significantly above the levels required to be considered well capitalized under regulatory guidelines applicable to banks.

On April 17, 2014, the Board of Directors declared a regular cash dividend of $0.05 per share payable on May 15, 2014 to shareholders of record on May 1, 2014.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $2.25 billion as of March 31, 2014. 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, 2013. 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
    March 31,   Dec 31,   Sept 30,   June 30,   March 31,
    2014   2013   2013   2013   2013
ASSETS                              
Cash and due from banks   $ 6,373   $ 6,534   $ 5,886   $ 5,978   $ 5,030
Federal funds sold     101     101     101     101     100
Interest-earning deposits     95,059     28,512     33,528     60,783     94,147
  Total cash and cash equivalents     101,533     35,147     39,515     66,862     99,277
                               
Securities available for sale     248,070     268,447     273,952     270,334     283,448
FHLB and FRB Stock, at cost     12,765     10,032     7,707     4,729     4,643
                               
Loans held for sale, at fair value     1,769     2,001     724     4,684     1,828
Loans held for sale, at lower of cost or fair value     51,184     -     -     -     -
                               
Residential mortgage     481,850     532,911     527,927     532,356     523,051
Commercial mortgage     1,063,470     831,997     680,762     534,371     455,670
Commercial loans     143,389     131,795     110,843     106,598     105,305
Construction loans     6,075     5,893     8,390     9,179     9,180
Consumer loans     20,945     21,852     19,932     19,552     20,782
Home equity lines of credit     45,820     47,905     47,020     47,583     46,778
Other loans     1,851     1,848     2,075     2,545     997
  Total loans     1,763,400     1,574,201     1,396,949     1,252,184     1,161,763
  Less: Allowances for loan losses     16,587     15,373     14,056     13,438     13,279
  Net loans     1,746,813     1,558,828     1,382,893     1,238,746     1,148,484
                               
Premises and equipment     31,087     28,990     29,022     29,021     29,429
Other real estate owned     2,062     1,941     2,759     3,347     4,141
Accrued interest receivable     4,788     4,086     4,017     3,972     3,768
Bank owned life insurance     32,065     31,882     31,691     31,490     31,283
Deferred tax assets, net     9,366     9,762     7,951     8,608     10,384
Other assets     9,983     15,832     17,473     17,797     18,647
  TOTAL ASSETS   $ 2,251,485   $ 1,966,948   $ 1,797,704   $ 1,679,590   $ 1,635,332
                               
LIABILITIES                              
Deposits:                              
  Noninterest-bearing demand deposits   $ 350,987   $ 356,119   $ 345,736   $ 326,916   $ 307,730
  Interest-bearing demand deposits     407,127     378,340     338,626     352,196     336,934
  Savings     119,750     115,785     115,571     115,823     114,804
  Money market accounts     660,691     630,173     611,498     559,439     547,302
  Certificates of deposit - Retail     151,730     151,833     156,132     163,552     169,334
  Certificates of deposit - Brokered     65,000     5,000     5,000     5,000     5,000
Subtotal deposits:     1,755,285     1,637,250     1,572,563     1,522,926     1,481,104
  IB Demand - Brokered     138,011     10,000     -     -     -
Total deposits:     1,893,296     1,647,250     1,572,563     1,522,926     1,481,104
                               
Overnight borrowings     79,400     54,900     30,361     -     -
Federal home loan bank advances     83,692     74,692     47,692     12,000     12,099
Capital lease obligation     9,917     8,754     8,809     8,864     8,918
Other liabilities     9,308     10,695     11,861     11,687     8,605
  TOTAL LIABILITIES     2,075,613     1,796,291     1,671,286     1,555,477     1,510,726
Shareholders' equity     175,872     170,657     126,418     124,113     124,606
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 2,251,485   $ 1,966,948   $ 1,797,704   $ 1,679,590   $ 1,635,332
                               
                               
Assets under administration at PGB Trust & Investments (market value, not included above)   $ 2,745,955   $ 2,690,601   $ 2,581,813   $ 2,520,424   $ 2,544,465
                               
                               
                               
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED BALANCE SHEET DATA  
(Dollars in Thousands)  
(Unaudited)  
   
    As of  
    March 31,     Dec 31,     Sept 30,     June 30,     March 31,  
    2014     2013     2013     2013     2013  
Asset Quality:                                        
Loans past due over 90 days and still accruing   $ -     $ -     $ -     $ -     $ -  
Nonaccrual loans     7,473       6,630       6,891       8,075       11,290  
Other real estate owned     2,062       1,941       2,759       3,347       4,141  
  Total nonperforming assets   $ 9,535     $ 8,571     $ 9,650     $ 11,422     $ 15,431  
                                         
Nonperforming loans to total loans     0.42 %     0.42 %     0.49 %     0.64 %     0.97 %
Nonperforming assets to total assets     0.42 %     0.44 %     0.54 %     0.68 %     0.94 %
                                         
Accruing TDR's (A)   $ 12,340     $ 11,114     $ 6,133     $ 6,131     $ 5,986  
                                         
Loans past due 30 through 89 days and still accruing (B)   $ 5,027     $ 2,953     $ 2,039     $ 1,544     $ 1,791  
                                         
Classified loans   $ 35,075     $ 33,827     $ 32,430     $ 32,123     $ 35,945  
                                         
Impaired loans   $ 19,814     $ 17,744     $ 16,794     $ 17,977     $ 21,046  
                                         
Allowance for loan losses:                                        
  Beginning of period   $ 15,373     $ 14,056     $ 13,438     $ 13,279     $ 12,735  
  Provision for loan losses     1,325       1,325       750       500       850  
  Charge-offs, net     (111 )     (8 )     (132 )     (341 )     (306 )
  End of period     16,587       15,373       14,056       13,438       13,279  
                                         
                                         
ALLL to nonperforming loans     221.96 %     231.87 %     203.98 %     166.41 %     117.62 %
ALLL to total loans     0.94 %     0.98 %     1.01 %     1.07 %     1.14 %
                                         
Capital Adequacy                                        
Tier 1 leverage     8.48 %     9.00 %     7.20 %     7.39 %     7.37 %
                                         
                                         
Tier I capital to risk weighted assets     13.09 %     14.07 %     11.30 %     11.84 %     12.16 %
                                         
Tier I & II capital to risk-weighted assets     14.34 %     15.33 %     12.55 %     13.09 %     13.41 %
                                         
                                         
Common equity to total assets     7.81 %     8.68 %     7.03 %     7.39 %     7.62 %
(End of period)                                        
                                         
Book value per share (C)   $ 15.08     $ 14.79     $ 14.12     $ 13.93     $ 14.05  
                                         
(A) Does not include $3.0 million at March 31, 2014, $2.9 million at December 31, 2013, $3.3 million at September 30, 2013, $3.3 million at June 30, 2013 and $3.3 million at March 31, 2013 of TDR's included in nonaccrual loans
(B) From 12/31/13 to 3/31/14, the Company had an increase of $2.074 million in loans that are 30-89 days past due. This is due to one commercial real estate loan in the amount of $2.019 million. The borrower has informed the Company that the property is under contract for sale and that repayment would be made in full upon sale.
(C) Tangible book value per share was $15.03 at March 31, 2014, $14.75 at December 31, 2013, $14.02 at September 30, 2013, $13.84 at June 30, 2013, and 13.95 at March 31, 2013. Tangible book value per share is different than book value per share because it excludes intangible assets.
   
   
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION
LOANS CLOSED AND FUNDED
(Dollars in Thousands)
(Unaudited)
 
    For the Quarters Ended
    March 31,   Dec 31,   Sept 30,   June 30,   March 31,
    2014   2013   2013   2013   2013
                     
Residential loans retained   $ 11,653   $ 20,135   $ 31,517   $ 37,352   $ 31,430
Residential loans sold     7,011     11,743     13,516     26,651     25,402
Total residential loans     18,664     31,878     45,033     64,003     56,832
                               
CRE     15,841     11,972     20,357     17,080     9,490
Multifamily     225,143     152,456     143,727     70,645     27,880
Commercial loans (includes Community banking)     15,957     39,534     40,654     8,788     15,958
                               
Installment loans     1,877     3,081     2,489     1,198     1,228
                               
Home equity lines of credit     4,668     3,746     3,982     2,619     4,452
                               
Total loan originations   $ 282,150   $ 242,667   $ 256,242   $ 164,333   $ 115,840
                               
                               
                               
    For the Three Months Ended
    March 31,   March 31,
    2014   2013
             
Residential loans retained   $ 11,653   $ 31,430
Residential loans sold     7,011     25,402
Total residential loans     18,664     56,832
             
CRE     15,841     9,490
Multifamily     225,143     27,880
Commercial loans (includes Community banking)     15,957     15,958
             
Installment loans     1,877     1,228
             
Home equity lines of credit     4,668     4,452
             
Total loan originations   $ 282,150   $ 115,840
             
             
             
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except share data)
(Unaudited)
 
  For the Three Months Ended    
  March 31,   Dec 31,   Sept 30,   June 30,   March 31,    
  2014   2013   2013   2013   2013    
Income Statement Data:                                
Interest income $ 16,949   $ 15,738   $ 14,423   $ 13,460   $ 13,432    
Interest expense   1,378     1,210     1,050     1,012     1,005    
  Net interest income   15,571     14,528     13,373     12,448     12,427    
Provision for loan losses   1,325     1,325     750     500     850    
  Net interest income after provision for loan losses   14,246     13,203     12,623     11,948     11,577    
Wealth management fee income   3,754     3,547     3,295     3,628     3,368    
Gain on sale of classified loans   -     -     -     -     522    
Gain on loans sold (Mortgage banking)   112     171     277     412     470    
Other income   1,031     1,130     1,022     958     955    
Securities gains, net   98     125     188     238     289    
  Total other income   4,995     4,973     4,782     5,236     5,604    
Salaries and employee benefits   8,848     8,308     8,927     7,935     7,079    
Premises and equipment   2,438     2,947     2,325     2,338     2,304    
FDIC insurance expense   275     286     275     280     280    
Other expenses   2,778     3,105     2,638     3,526     2,630    
  Total operating expenses   14,339     14,646     14,165     14,079     12,293    
Income before income taxes   4,902     3,530     3,240     3,105     4,888    
Income tax expense   1,871     1,135     1,276     1,096     1,995    
Net income $ 3,031   $ 2,395   $ 1,964   $ 2,009   $ 2,893    
                                 
Total revenue $ 20,566   $ 19,501   $ 18,155   $ 17,684   $ 17,509   (A)
(See footnote below)                                
                                 
                                 
Per Common Share Data:                                
                                 
Earnings per share (basic) $ 0.26   $ 0.25   $ 0.22   $ 0.23   $ 0.33    
Earnings per share (diluted)   0.26     0.25     0.22     0.22     0.32    
                                 
Weighted average number of                                
Common shares outstanding:                                
Basic   11,606,933     9,638,913     8,950,931     8,909,170     8,870,559    
Diluted   11,710,940     9,746,550     9,013,419     8,955,359     8,917,180    
                                 
Performance Ratios:                                
                                 
Return on average assets                                
  Annualized   0.59 %   0.51 %   0.45 %   0.48 %   0.71 %  
Return on average common                                
  Equity annualized   7.01 %   7.42 %   6.28 %   6.41 %   9.40 %  
                                 
Net interest margin                                
  (Taxable equivalent basis)   3.18 %   3.26 %   3.28 %   3.22 %   3.28 %  
                                 
Operating expenses / average                                
  Assets annualized   2.78 %   3.10 %   3.26 %   3.39 %   3.01 %  
                                 
(A) Excludes a $522 thousand gain from sale of classified loans. Including this gain, total revenue was $18,031.
   
   
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
AVERAGE BALANCE SHEET  
UNAUDITED  
THREE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
   
    March 31, 2014     March 31, 2013  
    Average   Income/         Average   Income/      
    Balance   Expense   Yield     Balance   Expense   Yield  
ASSETS:                                    
Interest-Earning Assets:                                    
  Investments:                                    
      Taxable (1)   $ 207,649   $ 1,061   2.04 %   $ 248,641   $ 1,277   2.05 %
      Tax-exempt (1) (2)     60,217     337   2.24       49,749     325   2.61  
  Loans held for sale     1,324     10   3.04       16,890     196   4.63  
  Loans (2) (3):                                    
    Mortgages     533,377     4,553   3.41       521,594     4,740   3.63  
    Commercial mortgages     935,784     9,045   3.87       431,158     4,963   4.60  
    Commercial     132,549     1,402   4.23       111,493     1,307   4.69  
    Commercial construction     5,872     67   4.58       9,217     104   4.53  
    Installment     21,563     228   4.24       20,930     230   4.40  
    Home equity     46,832     373   3.18       48,038     379   3.16  
    Other     563     13   8.94       626     15   9.48  
    Total loans     1,676,540     15,681   3.74       1,143,056     11,738   4.11  
  Federal funds sold     101     -   0.10       101     -   0.10  
  Interest-earning deposits     31,652     12   0.15       77,612     48   0.25  
    Total interest-earning assets     1,977,483   $ 17,101   3.46 %     1,536,049   $ 13,584   3.54 %
Noninterest-Earning Assets:                                    
  Cash and due from banks     6,395                 5,833            
  Allowance for loan losses     (15,988 )               (13,075 )          
  Premises and equipment     30,748                 29,808            
  Other assets     61,009                 75,111            
      Total noninterest-earning assets     82,164                 97,677            
Total assets   $ 2,059,647               $ 1,633,726            
                                     
LIABILITIES:                                    
Interest-Bearing Deposits:                                    
  Checking   $ 476,666   $ 135   0.11 %   $ 350,483   $ 79   0.09 %
  Money markets     653,624     333   0.20       552,863     214   0.15  
  Savings     116,518     15   0.05       110,662     14   0.05  
  Certificates of deposit     163,169     386   0.95       176,551     500   1.13  
      Total interest-bearing deposits     1,409,977     869   0.25       1,190,559     807   0.27  
  Borrowings     115,585     390   1.35       12,139     92   3.03  
  Capital lease obligation     9,947     119   4.79       8,936     106   4.74  
  Total interest-bearing liabilities     1,535,509     1,378   0.36       1,211,634     1,005   0.33  
Noninterest -Bearing                                    
      Liabilities:                                    
  Demand deposits     341,196                 290,835            
  Accrued expenses and other liabilities     9,999                 8,107            
  Total noninterest-bearing liabilities     351,195                 298,942            
Shareholders' equity     172,943                 123,150            
  Total liabilities and shareholders' equity   $ 2,059,647               $ 1,633,726            
Net interest income         $ 15,723               $ 12,579      
  Net interest spread               3.10 %               3.21 %
  Net interest margin (4)               3.18 %               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  
THREE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
   
                             
  March 31, 2014     December 31, 2013  
  Average     Income/         Average   Income/      
  Balance     Expense   Yield     Balance   Expense   Yield  
ASSETS:                                    
Interest-Earning Assets:                                    
  Investments:                                    
      Taxable (1) $ 207,649     $ 1,061   2.04 %   $ 213,779   $ 1,103   2.06 %
      Tax-exempt (1) (2)   60,217       337   2.24       57,358     333   2.32  
  Loans held for sale   1,324       10   3.04       1,186     17   5.76  
  Loans (2) (3):                                    
    Mortgages   533,377       4,553   3.41       529,451     4,552   3.44  
    Commercial mortgages   935,784       9,045   3.87       767,671     7,795   4.06  
    Commercial   132,549       1,402   4.23       115,965     1,330   4.59  
    Commercial construction   5,872       67   4.58       9,264     110   4.76  
    Installment   21,563       228   4.24       21,139     232   4.39  
    Home equity   46,832       373   3.18       47,613     389   3.27  
    Other   563       13   8.94       564     14   9.82  
    Total loans   1,676,540       15,681   3.74       1,491,667     14,422   3.87  
  Federal funds sold   101       -   0.10       101     -   0.10  
  Interest-earning deposits   31,652       12   0.15       38,351     17   0.18  
    Total interest-earning assets   1,977,483     $ 17,101   3.46 %     1,802,442   $ 15,892   3.53 %
Noninterest-Earning Assets:                                    
  Cash and due from banks   6,395                   6,217            
  Allowance for loan losses   (15,988 )                 (14,385 )          
  Premises and equipment   30,748                   29,220            
  Other assets   61,009                   64,818            
      Total noninterest-earning assets   82,164                   85,870            
Total assets $ 2,059,647                 $ 1,888,312            
                                     
LIABILITIES:                                    
Interest-Bearing Deposits:                                    
  Checking $ 476,666     $ 135   0.11 %   $ 410,409   $ 98   0.10 %
  Money markets   653,624       333   0.20       629,580     319   0.20  
  Savings   116,518       15   0.05       115,186     15   0.05  
  Certificates of deposit   163,169       386   0.95       158,085     393   0.99  
      Total interest-bearing deposits   1,409,977       869   0.25       1,313,260     825   0.25  
  Borrowings   115,585       390   1.35       61,585     281   1.83  
  Capital lease obligation   9,947       119   4.79       8,773     104   4.74  
  Total interest-bearing liabilities   1,535,509       1,378   0.36       1,383,618     1,210   0.35  
Noninterest -Bearing                                    
      Liabilities:                                    
  Demand deposits   341,196                   364,463            
  Accrued expenses and other liabilities   9,999                   11,159            
  Total noninterest-bearing liabilities   351,195                   375,622            
Shareholders' equity   172,943                   129,072            
  Total liabilities and shareholders' equity $ 2,059,647                 $ 1,888,312            
Net interest income         $ 15,723               $ 14,682      
  Net interest spread               3.10 %               3.18 %
  Net interest margin (4)               3.18 %               3.26 %
(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