SOURCE: Peapack-Gladstone Financial Corporation

April 23, 2013 09:20 ET

Peapack-Gladstone Financial Corporation Reports Results for the First Quarter of 2013

BEDMINSTER, NJ--(Marketwired - Apr 23, 2013) - Peapack-Gladstone Financial Corporation (NASDAQ: PGC) (the Corporation) recorded net income available to common shareholders of $2.89 million and diluted earnings per share of $0.32 for the first quarter of 2013. This compared to $2.61 million and $0.30, respectively, for the same quarter last year.

Doug Kennedy, President and CEO, said, "I am pleased to report another quarter of accomplishment. First and foremost, after an extensive assessment of our Company and the market in Q4 2012 and into Q1 2013, we developed and presented, to our Board of Directors, a comprehensive plan for our future. This Strategic Plan -- known as "Expanding Our Reach" -- focuses on the client experience and organic growth across all lines of business. The Plan calls for expansion of existing lines of business, and establishment of a new commercial and industrial (C&I) lending platform, through the use of private banking teams, who will lead with deposit gathering and wealth management discussions. The Plan further calls for establishment of a sales force that supports our branches and will serve as a primary point of contact for clients. The Plan was accepted and approved by the Board in March 2013 and implementation began immediately."

Mr. Kennedy went on to note the following additional highlights for the first quarter of 2013:

  • The Company continued to generate strong earnings.
  • In March 2013, the Company closed on the sale of the pool of classified loans which were transferred to loans held for sale at December 31, 2012. An after tax gain of $309 thousand, was recorded upon such sale in the first quarter.
  • Total loan balances of $1.16 billion reached a record level for the Company. This level reflected an increase of 8 percent from the end of March 2012 and an increase of nearly 3 percent (or over 10 percent on an annualized basis) from year end 2012.
  • Fee income from PGB Trust & Investments reflected growth of over 6 percent when compared to the same quarter last year.
  • At March 31, 2013, the market value of assets under administration at PGB Trust & Investments, reached $2.54 billion, also a record level for the Company. This level reflected an increase of 23 percent from the end of March 2012 and an increase of 10 percent (or 40 percent on an annualized basis) from year end 2012.
  • Mortgage banking income (gain on sale of loans) for the March 2013 quarter more than doubled when compared to the first quarter of 2012.
  • Despite a much reduced provision for loan losses in the current quarter compared to the same quarter last year, the allowance for loan losses as a percentage of nonperforming loans and as a percentage of gross loans both reflected improvement when compared to year end 2012.
  • Asset quality metrics continue to be strong and improved when compared to a year ago.
  • The common equity ratio at March 31, 2013 reflected improvement when compared to the ratio one year ago. 
  • Book value per common share at the end of the first quarter 2013 reflected growth of nearly 11 percent when compared to the book value as of March 31, 2012.

Net Interest Income and Margin

On a fully tax-equivalent basis, net interest income was $12.58 million for the first quarter of 2013, reflecting a decrease of $488 thousand from the same quarter last year. The net interest margin, on a fully tax-equivalent basis, was 3.28 percent and 3.54 percent for the March 2013 and 2012 quarters, respectively.

Net interest income and the net interest margin for the current quarter reflected declines from the same quarter last year, due to the effect of the lower market yields, which compressed asset yields more than deposit costs. Additionally, a much higher overnight cash balance position maintained during the current quarter also contributed to the compressed margin. Partially offsetting these effects, net interest income and margin were benefitted in the current quarter by the positive effect of increased loans funded by cash flows from lower yielding investment securities.

Loans

For the first quarter of 2013, average loans totaled $1.14 billion as compared to $1.05 billion for the same quarter in 2012, which was an increase of $90.1 million, or 8.6 percent.

The average commercial mortgage and commercial loan portfolio for the quarter ended March 2013 increased $84.2 million, or 18.4 percent, from the same quarter of 2012. The increase was attributable to a more concerted focus on this type of business, as well as demand from high-quality borrowers looking to refinance multi-family and other commercial mortgages held by other institutions.

Total loans at March 31, 2013 grew $83.9 million or 7.8 percent when compared to total loans at March 31, 2012.

Total loan originations were $116.9 million for the first quarter of 2013, up from $99.8 million for the same quarter of 2012. Included in the total were commercial mortgage/commercial loan originations of $52.5 million for the 2013 quarter compared to $36.7 million for the 2012 quarter.

Mr. Kennedy said "I was pleased with our success in generating solid lending growth this past quarter. As part of our Strategic Plan, we have begun to introduce a comprehensive Commercial & Industrial (C&I) lending program and expect to begin closing loans from this effort in the next several months. We have also added a seasoned multi-family lender in the current quarter who had a very robust pipeline at the end of the quarter."

Deposits

For the March 2013 quarter, average total deposits (interest-bearing and noninterest-bearing) increased $64.6 million when compared to the same quarter last year. Over that same period, the Company saw growth in all deposit categories, except certificates of deposit. For the first quarter of 2013, average certificates of deposit (CDs) declined $17.4 million from the same 2012 quarter. These higher-cost CDs were replaced with lower-cost, more stable core deposits.

Total deposits at March 31, 2013 increased $69.5 million, or 4.9 percent from March 31, 2012. The Company continues to successfully focus on:

  • Business and personal core deposit generation, particularly checking;
  • Municipal relationships within its market territory; and
  • Growth in deposits associated with its commercial mortgage/commercial loan growth.

 Mr. Kennedy commented, "Our strong and valuable low cost core deposit base and our traditional focus on providing high touch client service are key as we implement our Strategic Plan."

PGB Trust & Investments

In the first quarter of 2013, PGB Trust & Investments generated $3.37 million in fee income compared to $3.18 million for the first quarter of 2012, reflecting growth of 6.0 percent. The growth was due to new business, as well as market action coupled with solid investment advisory and management. The market value of the assets under administration of the wealth management division was $2.54 billion at March 31, 2013, up from $2.30 billion at December 31, 2012 and $2.06 billion reported at March 31, 2012.

Mr. Kennedy noted, "The wealth management business adds significant value to our Company. As part of our Strategic Plan, conversations with clients and potential clients across all lines of business will include a wealth discussion."

Other Noninterest Income

In the March 2013 quarter, other noninterest income, exclusive of Trust fees and securities gains, totaled $1.95 million, reflecting an increase of $790 thousand or 68.3 percent when compared to the same quarter a year ago. The first quarter of 2013 included $470 thousand of income from the sale of newly originated longer duration residential mortgage loans, compared to $188 thousand in the same 2012 quarter. The increase was due to a balance sheet management decision to retain less longer duration loans in the portfolio, as well as a decision to target a higher sale price. The first quarter of 2013 also included a $522 thousand gain from the March sale of the Company's classified loans which were transferred to loans held for sale at year end 2012.

Operating Expenses

The Company's total operating expenses were $12.29 million for the first quarter of 2013 quarter compared to $11.08 million in the same 2012 quarter. Salary and benefits expense rose due to: additions to staff as we begin to implement the Strategic Plan; increased commissions related to residential loan originations; normal salary increases; and increased bonus/incentive and profit sharing accruals. The 2013 expense levels also included various professional and other fees associated with the Delaware subsidiary; the Amended Stock Incentive Plan; the "Shelf Registration" (defined later); and various training and consulting, some of which was associated with the Strategic Plan.

Mr. Kennedy noted, "We expected higher operating expenses this first quarter of 2013, and we expect that trend will continue as we move forward with the implementation of our Strategic Plan. Further, we expect revenue and related profitability associated with the Plan to generally lag expenses by several quarters."

Provision for Loan Losses / Asset Quality

For the quarter ended March 31, 2013, the Company's provision for loan losses was $850 thousand compared to $4.5 million recorded in the immediately preceding December 2012 quarter and $1.5 million provision recorded in the first quarter of 2012. Charge-offs, net of recoveries, for the first quarter of 2013 were $306 thousand compared to $5.7 million for the immediately preceding December 2012 quarter and $1.2 million for the March 2012 quarter.

The higher provisioning and net charge-off levels in the December 2012 quarter were due to a fourth quarter strategic initiative - moving approximately $19 million of classified loans to loans held for sale, which resulted in an additional provision for loan losses of $4.0 million and charge-offs of $5.4 million.

Nonperforming assets totaled $15.4 million or 0.94 percent of total assets at March 31, 2013 compared to $22.0 million or 1.39 percent of assets at March 31, 2012. 

Capital / Dividends

As noted in prior quarters, the preferred stock issued in January 2009 under Treasury's Capital Purchase Program (CPP) was fully redeemed early in the first quarter of 2012. At March 31, 2013, the Company's leverage ratio, tier 1 and total risk based capital ratios were 7.37 percent, 12.16 percent and 13.41 percent, respectively. The Company's ratios are all above the levels necessary to be considered well-capitalized under regulatory guidelines applicable to banks. Additionally, the Company's common equity ratio (common equity to total assets) at March 31, 2013 was 7.62 percent of total assets, reflecting growth from 7.32 percent at December 31, 2012 and from 7.04 percent of total assets at March 31, 2012.

As previously announced, on April 18, 2013, the Board of Directors declared a regular cash dividend of $0.05 per share payable on May 16, 2013 to shareholders of record on May 2, 2013.

On April 19, 2013 the Company filed a Form S-3 Registration Statement registering an indeterminate amount of shares/securities not to exceed $50 million, to be issued in the future from time to time at indeterminate prices ("Shelf Registration"). Mr. Kennedy noted, "This Shelf Registration will enable us to efficiently take advantage of the capital markets from time to time in the future, as needed to support growth associated with our Strategic Plan." Mr. Kennedy went on to say, "We will be very careful in any decision to issue capital, making our decision only after appropriate and comprehensive analysis and vetting." 

In accordance with its By-Laws, the Company's Annual Meeting will be held on April 23, 2013, at 2:00 p.m. on the first floor of its headquarters building at 500 Hills Drive, Bedminster, New Jersey. 

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.64 billion as of March 31, 2013. Peapack-Gladstone Bank, its wholly-owned commercial bank, was established in 1921, and has 23 branches in Somerset, Hunterdon, Middlesex, Morris and Union Counties. The Bank's wealth management division, PGB Trust & Investments, operates at the Bank's corporate offices located at 500 Hills Drive in Bedminster and at four other locations in Clinton, Morristown and Summit, New Jersey, and at the Bank's new subsidiary, PGB Trust & Investments of Delaware in Greenville, Delaware. To learn more about Peapack-Gladstone Financial Corporation and Peapack-Gladstone Bank's products and services please visit our website at www.pgbank.com or call 908-234-0700.

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

  • a continued or unexpected decline in the economy, in particular in our New Jersey market area;
  • 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;
  • inability to successfully grow our business and implement our strategic plan;
  • inability to manage our growth;
  • 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 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.

 
 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)
 
    As of
    March 31,   Dec 31,   Sept 30,   June 30,   March 31,
    2013   2012   2012   2012   2012
ASSETS                              
Cash and due from banks   $ 5,030   $ 6,733   $ 5,466   $ 5,639   $ 5,146
Federal funds sold     100     100     100     100     100
Interest-earning deposits     94,147     112,395     49,354     29,024     28,144
  Total cash and cash equivalents     99,277     119,228     54,920     34,763     33,390
                               
Securities held to maturity     -     -     76,698     84,779     88,667
Securities available for sale     283,448     304,479     253,489     257,318     281,770
FHLB and FRB Stock, at cost     4,643     4,639     4,639     4,818     5,594
                               
Loans held for sale, at fair value     1,828     6,461     8,443     2,259     3,214
Loans held for sale, at lower of cost or fair value     -     13,749     -     -     -
                               
Residential mortgage     523,051     515,014     504,407     526,726     518,111
Commercial mortgage     455,670     420,086     391,976     384,289     358,822
Commercial loans     105,305     115,372     115,602     116,493     119,351
Construction loans     9,180     9,328     9,639     6,804     12,517
Consumer loans     20,782     21,188     21,542     20,885     19,769
Home equity lines of credit     46,778     49,635     51,440     49,057     47,831
Other loans     997     1,961     1,876     2,128     1,504
  Total loans     1,161,763     1,132,584     1,096,482     1,106,382     1,077,905
  Less: Allowance for loan losses     13,279     12,735     13,893     13,686     13,496
  Net loans     1,148,484     1,119,849     1,082,589     1,092,696     1,064,409
                               
Premises and equipment     29,429     30,030     30,472     30,979     31,482
Other real estate owned     4,141     3,496     3,392     3,073     3,391
Accrued interest receivable     3,768     3,864     4,040     3,447     3,842
Bank owned life insurance     31,283     31,088     30,887     30,688     30,490
Deferred tax assets, net     10,384     9,478     25,861     26,430     26,767
Other assets     18,647     21,475     8,060     7,355     6,524
  TOTAL ASSETS   $ 1,635,332   $ 1,667,836   $ 1,583,490   $ 1,578,605   $ 1,579,540
                               
LIABILITIES                              
Deposits:                              
  Noninterest-bearing demand deposits   $ 307,730   $ 298,095   $ 306,711   $ 304,651   $ 288,130
  Interest-bearing deposits                              
    Checking     336,934     346,877     332,786     323,813     318,239
    Savings     114,804     109,686     103,572     104,631     98,743
    Money market accounts     547,302     583,197     504,863     495,929     512,464
    CD's $100,000 and over     67,902     68,741     72,168     78,268     73,927
    CD's less than $100,000     106,432     109,831     112,586     115,793     120,140
  Total deposits     1,481,104     1,516,427     1,432,686     1,423,085     1,411,643
Overnight borrowings     -     -     -     -     22,900
Federal home loan bank advances     12,099     12,218     12,335     16,451     17,566
Capital lease obligation     8,918     8,971     9,024     9,076     9,127
Other Liabilities     8,605     8,163     11,967     15,758     7,170
  TOTAL LIABILITIES     1,510,726     1,545,779     1,466,012     1,464,370     1,468,406
Shareholders' equity     124,606     122,057     117,478     114,235     111,134
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 1,635,332   $ 1,667,836   $ 1,583,490   $ 1,578,605   $ 1,579,540
                               
Assets under administration at PGB Trust & Investments (market value, not included above)   $ 2,544,465   $ 2,303,612   $ 2,146,920   $ 2,062,798   $ 2,063,729
                               
                               
   
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED BALANCE SHEET DATA  
(Dollars in Thousands)  
(Unaudited)  
   
    As of  
    March 31,     Dec 31,           Sept 30,     June 30,     March 31,  
    2013     2012           2012     2012     2012  
Asset Quality:                                              
Loans past due over 90 days and still accruing   $ -     $ -           $ -     $ -     $ -  
Nonaccrual loans     11,290       11,732     (C )     16,958       19,011       18,598  
Other real estate owned     4,141       3,496             3,392       3,073       3,391  
  Total nonperforming assets   $ 15,431     $ 15,228     (C )   $ 20,350     $ 22,084     $ 21,989  
                                               
Nonperforming loans to total loans     0.97 %     1.04 %   (C )     1.55 %     1.72 %     1.73 %
Nonperforming assets to total assets     0.94 %     0.91 %   (C )     1.29 %     1.40 %     1.39 %
                                               
Accruing TDR's (A)   $ 5,986     $ 6,415     (C )   $ 7,625     $ 7,647     $ 7,842  
                                               
Loans past due 30 through 89 days and still accruing   $ 1,791     $ 3,786           $ 2,536     $ 2,836     $ 7,619  
                                               
Classified loans (B)   $ 35,945     $ 32,014     (C )   $ 47,017     $ 47,102     $ 48,546  
                                               
Impaired loans (B)   $ 21,046     $ 18,147     (C )   $ 24,584     $ 26,658     $ 26,568  
                                               
Allowance for loan losses:                                              
  Beginning of period   $ 12,735     $ 13,893           $ 13,686     $ 13,496     $ 13,223  
  Provision for loan losses     850       4,525             750       1,500       1,500  
  Charge-offs, net     (306 )     (5,683 )           (543 )     (1,310 )     (1,227 )
  End of period   $ 13,279     $ 12,735           $ 13,893     $ 13,686     $ 13,496  
                                               
ALLL to nonperforming loans     117.62 %     108.55 %   (C )     81.93 %     71.99 %     72.57 %
ALLL to total loans     1.14 %     1.12 %   (C )     1.27 %     1.24 %     1.25 %
                                               
Capital Adequacy:                                              
Tier I leverage     7.37 %     7.27 %           7.31 %     7.15 %     7.00 %
                                               
Tier I capital to risk-weighted assets     12.16 %     11.83 %           11.51 %     11.27 %     11.21 %
                                               
Tier I & II capital to risk-weighted assets     13.41 %     13.08 %           12.76 %     12.52 %     12.46 %
                                               
                                               
Common equity to total assets     7.62 %     7.32 %           7.42 %     7.24 %     7.04 %
                                               
Book value per common share   $ 14.05     $ 13.87           $ 13.38     $ 13.02     $ 12.70  
(A) Does not include $3.3 million at March 31, 2013, $2.9 million at December 31, 2012, $5.7 million at September 30, 2012, $6.1 million at June 30, 2012 and $6.0 million at March 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  
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,  
    2013     2012     2012     2012     2012  
Income Statement Data:                                        
Interest income   $ 13,432     $ 13,792     $ 13,982     $ 14,102     $ 14,214  
Interest expense     1,005       1,033       1,132       1,199       1,323  
  Net interest income     12,427       12,759       12,850       12,903       12,891  
Provision for loan losses     850       4,525       750       1,500       1,500  
  Net interest income after provision for loan losses     11,577       8,234       12,100       11,403       11,391  
Trust fees     3,368       2,929       2,918       3,259       3,176  
Other income     1,947       1,343       1,406       1,305       1,157  
Securities gains, net     289       3,078       235       107       390  
  Total other income     5,604       7,350       4,559       4,671       4,723  
Salaries and employee benefits     7,079       8,045       7,029       6,408       6,113  
Premises and equipment     2,304       2,433       2,290       2,413       2,331  
FDIC insurance expense     280       267       299       290       352  
Other expenses     2,630       2,808       2,375       2,593       2,284  
  Total operating expenses     12,293       13,553       11,993       11,704       11,080  
Income before income taxes     4,888       2,031       4,666       4,370       5,034  
Income tax expense     1,995       973       1,834       1,647       1,951  
Net income     2,893       1,058       2,832       2,723       3,083  
Dividends and accretion on preferred stock     -       -       -       -       474  
Net income available to common shareholders   $ 2,893     $ 1,058     $ 2,832     $ 2,723     $ 2,609  
                                         
Per Common Share Data:                                        
                                         
Earnings per share (basic)   $ 0.33     $ 0.12     $ 0.32     $ 0.31     $ 0.30  
Earnings per share (diluted)     0.32       0.12       0.32       0.31       0.30  
                                         
Performance Ratios:                                        
                                         
Return on average assets     0.71 %     0.26 %     0.72 %     0.69 %     0.78 %
Return on average common equity     9.40 %     3.52 %     9.77 %     9.65 %     9.47 %
                                         
Net interest margin (Taxable equivalent basis)     3.28 %     3.42 %     3.50 %     3.52 %     3.54 %
                                         
                                         
   
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED CONSOLIDATED FINANCIAL DATA  
(Dollars in thousands, except share data)  
(Unaudited)  
   
    For the  
    Three Months Ended  
    March 31,  
    2013     2012  
Income Statement Data:                
Interest income   $ 13,432     $ 14,214  
Interest expense     1,005       1,323  
  Net interest income     12,427       12,891  
Provision for loan losses     850       1,500  
  Net interest income after provision for loan losses     11,577       11,391  
Trust fees     3,368       3,176  
Other income     1,947       1,157  
Securities gains, net     289       390  
  Total other income     5,604       4,723  
Salaries and employee benefits     7,079       6,113  
Premises and equipment     2,304       2,331  
FDIC insurance expense     280       352  
Other expenses     2,630       2,284  
  Total operating expenses     12,293       11,080  
Income before income taxes     4,888       5,034  
Income tax expense     1,995       1,951  
Net income     2,893       3,083  
Dividends and accretion on preferred stock     -       474  
Net income available to common shareholders   $ 2,893     $ 2,609  
                 
Per Common Share Data:                
                 
Earnings per share (basic)   $ 0.33     $ 0.30  
Earnings per share (diluted)     0.32       0.30  
                 
Performance Ratios:                
                 
Return on average assets     0.71 %     0.78 %
Return on average common equity     9.40 %     9.47 %
                 
Net interest margin                
  (Tax equivalent basis)     3.28 %     3.54 %
                   
                   
   
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
AVERAGE BALANCE SHEET  
UNAUDITED  
THREE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
   
    March 31, 2013     March 31, 2012  
    Average     Income/         Average     Income/      
    Balance     Expense   Yield     Balance     Expense   Yield  
ASSETS:                                        
Interest-Earning Assets:                                        
  Investments:                                        
    Taxable (1)   $ 248,641     $ 1,277   2.05 %   $ 350,306     $ 2,052   2.34 %
    Tax-exempt (1) (2)     49,749       325   2.61       49,843       381   3.06  
  Loans held for sale     16,890       196   4.63       1,602       23   5.60  
  Loans (2) (3)     1,143,056       11,738   4.11       1,052,960       11,917   4.53  
  Federal funds sold     101       -   0.10       100       -   0.10  
  Interest-earning deposits     77,612       48   0.25       21,988       17   0.30  
    Total interest-earning assets     1,536,049     $ 13,584   3.54 %     1,476,799     $ 14,390   3.90 %
Noninterest-Earning Assets:                                        
  Cash and due from banks     5,833                   7,687              
  Allowance for loan losses     (13,075 )                 (13,753 )            
  Premises and equipment     29,808                   31,751              
  Other assets     75,111                   78,781              
    Total noninterest-earning assets     97,677                   104,466              
Total assets   $ 1,633,726                 $ 1,581,265              
                                         
LIABILITIES:                                        
Interest-Bearing Deposits:                                        
  Checking   $ 350,483     $ 79   0.09 %   $ 336,541     $ 113   0.13 %
  Money markets     552,863       214   0.15       516,357       304   0.24  
  Savings     110,662       14   0.05       94,732       29   0.12  
  Certificates of deposit     176,551       500   1.13       193,992       596   1.23  
    Total interest-bearing deposits     1,190,559       807   0.27       1,141,622       1,042   0.37  
  Borrowings     12,139       92   3.03       37,237       172   1.85  
  Capital lease obligation     8,936       106   4.74       9,145       109   4.77  
  Total interest-bearing liabilities     1,211,634       1,005   0.33       1,188,004       1,323   0.45  
                                         
Noninterest -Bearing Liabilities:                                        
  Demand deposits     290,835                   275,157              
  Accrued expenses and other liabilities     8,107                   6,407              
  Total noninterest-bearing liabilities     298,942                   281,564              
Shareholders' equity     123,150                   111,697              
  Total liabilities and shareholders' equity   $ 1,633,726                 $ 1,581,265              
Net interest income           $ 12,579                 $ 13,067      
  Net interest spread                 3.21 %                 3.45 %
  Net interest margin (4)                 3.28 %                 3.54 %
                                           
                                           
   
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
AVERAGE BALANCE SHEET  
UNAUDITED  
THREE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
                                 
    March 31, 2013     December 31, 2012  
    Average     Income/         Average     Income/      
    Balance     Expense   Yield     Balance     Expense   Yield  
ASSETS:                                        
Interest-Earning Assets:                                        
  Investments:                                        
    Taxable (1)   $ 248,641     $ 1,277   2.05 %   $ 267,890     $ 1,423   2.12 %
    Tax-exempt (1) (2)     49,749       325   2.61       47,262       327   2.77  
  Loans held for sale     16,890       196   4.63       4,355       48   4.40  
  Loans (2) (3)     1,143,056       11,738   4.11       1,125,490       12,107   4.30  
  Federal funds sold     101       -   0.10       100       -   0.10  
  Interest-earning deposits     77,612       48   0.25       66,942       41   0.24  
    Total interest-earning assets     1,536,049     $ 13,584   3.54 %     1,512,039     $ 13,946   3.69 %
Noninterest-Earning Assets:                                        
  Cash and due from banks     5,833                   6,885              
  Allowance for loan losses     (13,075 )                 (14,020 )            
  Premises and equipment     29,808                   30,350              
  Other assets     75,111                   76,251              
    Total noninterest-earning assets     97,677                   99,466              
Total assets   $ 1,633,726                 $ 1,611,505              
                                         
LIABILITIES:                                        
Interest-Bearing Deposits:                                        
  Checking   $ 350,483     $ 79   0.09 %   $ 346,373     $ 87   0.10 %
  Money markets     552,863       214   0.15       517,470       202   0.16  
  Savings     110,662       14   0.05       105,228       14   0.05  
  Certificates of deposit     176,551       500   1.13       180,941       528   1.17  
    Total interest-bearing deposits     1,190,559       807   0.27       1,150,012       831   0.29  
  Borrowings     12,139       92   3.03       12,258       95   3.10  
  Capital lease obligation     8,936       106   4.74       8,990       107   4.76  
  Total interest-bearing liabilities     1,211,634       1,005   0.33       1,171,260       1,033   0.35  
Noninterest -Bearing Liabilities:                                        
  Demand deposits     290,835                   311,920              
  Accrued expenses and other liabilities     8,107                   8,144              
  Total noninterest-bearing liabilities     298,942                   320,064              
Shareholders' equity     123,150                   120,181              
  Total liabilities and shareholders' equity   $ 1,633,726                 $ 1,611,505              
Net interest income           $ 12,579                 $ 12,913      
  Net interest spread                 3.21 %                 3.34 %
  Net interest margin (4)                 3.28 %                 3.42 %
                                           
                                           

Contact Information

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