SOURCE: Peapack-Gladstone Financial Corporation

October 21, 2013 17:59 ET

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

BEDMINSTER, NJ--(Marketwired - Oct 21, 2013) - Peapack-Gladstone Financial Corporation (NASDAQ: PGC) (the "Corporation" or the "Company") recorded net income available to common shareholders of $6.87 million and diluted earnings per share of $0.76 for the nine months ended September 30, 2013. This compared to $8.16 million and $0.93, respectively, for the same nine month period last year.

The 2013 nine months included: 1) a $933 thousand compensation expense accrual related to certain staff restructurings, resulting in an after-tax charge of approximately $569 thousand or approximately six cents per fully diluted share; and 2) a $930 thousand write-down of an REO property, resulting in an after tax charge of approximately $595 thousand or approximately seven cents per diluted share.

For the quarter ended September 30, 2013, the Corporation recorded net income available to common shareholders of $1.96 million and diluted earnings per share of $0.22. This compared to $2.83 million and $0.32, respectively, for the same quarter last year.

The 2013 third quarter included the $933 thousand compensation expense accrual described above.

Doug Kennedy, President and CEO, said, "We had another quarter of solid accomplishment. Most importantly, we continued to implement and follow through on our Strategic Plan -- known as 'Expanding Our Reach.' As previously reported, this Plan 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 community based sales force that supports our branches and will serve as a primary point of contact for clients.

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

  • Total revenue (net interest income plus other income) of $18.16 million for the September 2013 quarter reflected improvement when compared to $17.41 million for the September quarter of last year, and also reflected improvement when compared to $17.68 million for the immediately preceding June 2013 quarter.
  • Total loan balances of $1.40 billion reached another record level for the Company. This level reflected an increase of 27 percent from the end of September 2012 and an increase of nearly 23 percent (or over 31 percent on an annualized basis) from year end 2012.
  • The Company's net interest income of $13.37 million for the September 2013 quarter reflected improvement when compared to $12.85 million for the September quarter of last year, and also reflected improvement when compared to $12.45 million for the immediately preceding June 2013 quarter.
  • Fee income from the Trust & Investment Division of $3.30 million for the September 2013 quarter reflected growth of nearly 13 percent when compared to the same quarter last year.
  • At September 30, 2013, the market value of assets under administration at Peapack-Gladstone Bank's Trust & Investment Division was $2.58 billion. This level reflected an increase of 20 percent from the end of September 2012 and an increase of 12 percent (or 16 percent on an annualized basis) from year end 2012.
  • Asset quality continues to be strong and improved when compared to prior periods. For example, nonperforming assets declined in both dollars and as a percentage of assets, to just 0.54 percent of total assets as of September 30, 2013.
  • The book value per share at September 30, 2013 of $14.12 reflected improvement when compared to one year ago, despite the negative impact to GAAP capital of the mark-to-market of the investment portfolio available for sale, due to the rise in market interest rates.
  • The tier I leverage and the total risk-based regulatory capital ratios remained strong at 7.20 percent and 12.55 percent, and only declined slightly compared to year ago, even with over $200 million growth in assets, as well as migration of lower risk weighted investment security cash flows into loans.

Net Interest Income and Margin

 Net interest income was $13.37 million for the third quarter of 2013, reflecting an increase of $523 thousand from the same quarter last year. The net interest margin, on a fully tax-equivalent basis, was 3.28 percent for the September 2013 quarter compared to 3.50 percent for the September 2012 quarter.

 Net interest income for the current 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 current 2013 quarter declined when compared to the same quarter last year due to the effect of low market yields, which compressed asset yields more than deposit costs. Partially offsetting this effect, net interest margin benefitted in the current quarter from the positive effect of increased loans funded by deposits and cash flows from lower yielding investment securities and interest earning cash balances.

Loans

For the third quarter of 2013, average loans totaled $1.32 billion as compared to $1.10 billion for the same quarter in 2012, reflecting an increase of $224 million, or 20 percent.

The average commercial mortgage and commercial loan portfolio for the quarter ended September 2013 increased $206 million, or 41 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 loans at September 30, 2013 grew $300 million or 27 percent when compared to total loans at September 30, 2012.

Total loan originations were $255 million for the third quarter of 2013, up significantly from $81 million for the same quarter of 2012. Loan originations were $536 million for the first nine months of 2013, also up significantly from $281 million for the same nine month period of 2012. Included in the total were commercial mortgage (principally multifamily) / commercial loan originations of $349 million and $201 million for the 2013 nine months and quarter, respectively, compared to only $95 million and $22 million for the 2012 periods, respectively.

Mr. Kennedy said, "We continue to be successful in generating solid lending growth. As part of our Strategic Plan, we introduced a comprehensive Commercial & Industrial (C&I) lending program and we have closed $44 million of volume so far this year. We expect such volume to continue to increase in future periods. Further, our multifamily lenders have generated significant closed volume and continue to maintain very robust pipelines."

Deposits

For the September 2013 quarter, average total deposits (interest-bearing and noninterest-bearing) increased $113 million 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 third 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.

Total deposits at September 30, 2013 increased $140 million, or nearly 10 percent from September 30, 2012. The Company continues to successfully focus on:

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

Mr. Kennedy commented, "I continue to believe that our focus on providing high touch client service and our strong and valuable core deposit base are key differentiators for us as we grow our business." Additionally, as previously announced, Anthony V. Bilotta, Jr. has joined the Company as Executive Vice President, Head of Retail Banking and Marketing. Anthony joins us with over 30 years of industry experience.

Peapack-Gladstone Bank Trust & Investments

In the third quarter of 2013, Peapack-Gladstone Bank Trust & Investments generated $3.30 million in fee income compared to $2.92 million for the third quarter of 2012, reflecting growth of 13 percent. The market value of the assets under administration (AUA) of the wealth management division was $2.58 billion at September 30, 2013, up from $2.30 billion at December 31, 2012 and $2.15 billion reported at September 30, 2012. 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, "The wealth management business adds significant value to our Company, and differentiates us from many of our competitors. Conversations with all clients and potential clients across all lines of business include a wealth discussion."

Other Noninterest Income

In the September 2013 quarter, other noninterest income, exclusive of trust fees and securities gains, totaled $1.30 million, reflecting a decrease of $107 thousand or 8 percent when compared to the same quarter a year ago. The third quarter of 2013 included $277 thousand of income from the sale of newly originated residential mortgage loans, down from $358 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 for the quarter. A reduced level of mortgage banking income is expected in the foreseeable future. Mortgage banking income is not a significant portion of revenue (only 2 percent of total revenue for the nine months ended September 30, 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 Treasury Management services/products, which will contribute to non-interest income in the future."

Operating Expenses

The Company's total operating expenses were $14.17 million for the third quarter of 2013 compared to $11.99 million in the same 2012 quarter. The 2013 quarter included the previously mentioned $933 thousand compensation expense accrual related to certain staff restructurings. Excluding this expense accrual, salary and benefits expense rose $965 thousand 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 total 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. And we expect that the trend of higher operating expenses will continue in the future in line with our Strategic Plan. Further, we generally expect revenue and profitability related to those increased expenses to lag those expenses by several quarters. It is important to note, however, that we did see an improvement in revenue in this current quarter relative to the June 2013 quarter, as well as the September 2012 quarter."

Provision for Loan Losses / Asset Quality

For the quarter ended September 30, 2013, the Company's provision for loan losses was $750 thousand compared to the same amount of provision recorded in the third quarter of 2012. Charge-offs, net of recoveries, for the third quarter of 2013 were $132 thousand compared to $543 thousand for the September 2012 quarter. At September 30, 2013 the allowance for loan losses was 204 percent of nonperforming loans and 1.01 percent of total loans.

Nonperforming assets totaled $9.7 million or just 0.54 percent of total assets at September 30, 2013 compared to $20.4 million or 1.29 percent of assets at September 30, 2012. The 0.54 percent nonperforming asset ratio, at September 30, 2013, compares favorably to a 1.20 percent weighted average for all Mid-Atlantic banks.

Capital / Dividends

At September 30, 2013, the Company's leverage ratio, tier 1 and total risk based capital ratios were 7.20 percent, 11.30 percent and 12.55 percent, respectively. The Company's ratios are all above the levels necessary to be considered well-capitalized under regulatory guidelines applicable to banks. The Company's common equity ratio (common equity to total assets) at September 30, 2013 was 7.03 percent of total assets, only down slightly when compared to 7.32 percent at December 31, 2012 and still strong, despite the negative impact to GAAP capital of the September 30, 2013 mark-to-market of the investment portfolio available for sale, due to the rise in market interest rates.

On October 17, 2013, the Board of Directors declared a regular cash dividend of $0.05 per share payable on November 14, 2013 to shareholders of record on October 31, 2013.

As previously announced, on April 19, 2013 the Company filed a Form S-3 Registration Statement registering $50 million in securities, to be issued in the future from time to time at indeterminate prices ("Shelf Registration"). This Shelf Registration was filed to enable the Company to efficiently take advantage of the capital markets from time to time in the future, as needed to support growth associated with its Strategic Plan.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.80 billion as of September 30, 2013. Established in 1921, Peapack-Gladstone Bank is a commercial bank that offers a full range of quality products and services to businesses, non-profits and consumers through its New Jersey locations, online access, a wealth management division, and its subsidiary, PGB Trust & Investments of Delaware. For additional information about Peapack-Gladstone Bank or to open an account online, visit www.pgbank.com or call 908-234-0700. Member FDIC. Equal Housing Lender.

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
    Sept 30,   June 30,   March 31,   Dec 31,   Sept 30,
    2013   2013   2013   2012   2012
ASSETS                              
Cash and due from banks   $ 5,886   $ 5,978   $ 5,030   $ 6,733   $ 5,466
Federal funds sold     101     101     100     100     100
Interest-earning deposits     33,528     60,783     94,147     112,395     49,354
  Total cash and cash equivalents     39,515     66,862     99,277     119,228     54,920
                               
Securities held to maturity     -     -     -     -     76,698
Securities available for sale     273,952     270,334     283,448     304,479     253,489
FHLB and FRB Stock, at cost     7,707     4,729     4,643     4,639     4,639
                               
Loans held for sale, at fair value     724     4,684     1,828     6,461     8,443
Loans held for sale, at lower of cost or fair value     -     -     -     13,749     -
                               
Residential mortgage     527,927     532,356     523,051     515,014     504,407
Commercial mortgage     680,762     534,371     455,670     420,086     391,976
Commercial loans     110,843     106,598     105,305     115,372     115,602
Construction loans     8,390     9,179     9,180     9,328     9,639
Consumer loans     19,932     19,552     20,782     21,188     21,542
Home equity lines of credit     47,020     47,583     46,778     49,635     51,440
Other loans     2,075     2,545     997     1,961     1,876
  Total loans     1,396,949     1,252,184     1,161,763     1,132,584     1,096,482
  Less: Allowance for loan losses     14,056     13,438     13,279     12,735     13,893
  Net loans     1,382,893     1,238,746     1,148,484     1,119,849     1,082,589
                               
Premises and equipment     29,022     29,021     29,429     30,030     30,472
Other real estate owned     2,759     3,347     4,141     3,496     3,392
Accrued interest receivable     4,017     3,972     3,768     3,864     4,040
Bank owned life insurance     31,691     31,490     31,283     31,088     30,887
Deferred tax assets, net     7,951     8,608     10,384     9,478     25,861
Other assets     17,473     17,797     18,647     21,475     8,060
  TOTAL ASSETS   $ 1,797,704   $ 1,679,590   $ 1,635,332   $ 1,667,836   $ 1,583,490
                               
LIABILITIES                              
Deposits:                              
  Noninterest-bearing demand deposits   $ 345,736   $ 326,916   $ 307,730   $ 298,095   $ 306,711
  Interest-bearing deposits                              
    Checking     338,626     352,196     336,934     346,877     332,786
    Savings     115,571     115,823     114,804     109,686     103,572
    Money market accounts     611,498     559,439     547,302     583,197     504,863
    CD's $100,000 and over     62,136     65,607     67,902     68,741     72,168
    CD's less than $100,000     98,996     102,945     106,432     109,831     112,586
  Total deposits     1,572,563     1,522,926     1,481,104     1,516,427     1,432,686
Overnight borrowings     30,361     -     -     -     -
Federal home loan bank advances     47,692     12,000     12,099     12,218     12,335
Capital lease obligation     8,809     8,864     8,918     8,971     9,024
Other Liabilities     11,861     11,687     8,605     8,163     11,967
  TOTAL LIABILITIES     1,671,286     1,555,477     1,510,726     1,545,779     1,466,012
Shareholders' equity     126,418     124,113     124,606     122,057     117,478
  TOTAL LIABILITIES AND                              
    SHAREHOLDERS' EQUITY   $ 1,797,704   $ 1,679,590   $ 1,635,332   $ 1,667,836   $ 1,583,490
                               
Assets under administration at Peapack-Gladstone Bank Trust & Investments (market value, not included above)   $


2,581,813
  $


2,520,424
  $


2,544,465
  $


2,303,612
  $


2,146,920
                               
                               
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED BALANCE SHEET DATA  
(Dollars in Thousands)  
(Unaudited)  
   
       As of  
    Sept 30,     June 30,     March 31,     Dec 31,           Sept 30,  
    2013     2013     2013     2012           2012  
Asset Quality:                                              
Loans past due over 90 days and still accruing   $ -     $ -     $ -     $ -           $ -  
Nonaccrual loans     6,891       8,075       11,290       11,732     (C )     16,958  
Other real estate owned     2,759       3,347       4,141       3,496             3,392  
  Total nonperforming assets   $ 9,650     $ 11,422     $ 15,431     $ 15,228     (C )   $ 20,350  
                                               
Nonperforming loans to total loans     0.49 %     0.64 %     0.97 %     1.04 %   (C )     1.55 %
Nonperforming assets to total assets     0.54 %     0.68 %     0.94 %     0.91 %   (C )     1.29 %
                                               
Accruing TDR's (A)   $ 6,133     $ 6,131     $ 5,986     $ 6,415     (C )   $ 7,625  
                                               
Loans past due 30 through 89 days and still accruing   $ 2,039     $ 1,544     $ 1,791     $ 3,786           $ 2,536  
                                               
Classified loans (B)   $ 32,430     $ 32,123     $ 35,945     $ 32,014     (C )   $ 47,017  
                                               
Impaired loans (B)   $ 16,794     $ 17,977     $ 21,046     $ 18,147     (C )   $ 24,584  
                                               
Allowance for loan losses:                                              
  Beginning of period   $ 13,438     $ 13,279     $ 12,735     $ 13,893           $ 13,686  
  Provision for loan losses     750       500       850       4,525             750  
  Charge-offs, net     (132 )     (341 )     (306 )     (5,683 )           (543 )
  End of period   $ 14,056     $ 13,438     $ 13,279     $ 12,735           $ 13,893  
                                               
ALLL to nonperforming loans     203.98 %     166.41 %     117.62 %     108.55 %   (C )     81.93 %
ALLL to total loans     1.01 %     1.07 %     1.14 %     1.12 %   (C )     1.27 %
                                               
Capital Adequacy:                                              
Tier I leverage     7.20 %     7.39 %     7.37 %     7.27 %           7.31 %
                                               
Tier I capital to risk-weighted assets     11.30 %     11.84 %     12.16 %     11.83 %           11.51 %
                                               
Tier I & II capital to risk-weighted assets     12.55 %     13.09 %     13.41 %     13.08 %           12.76 %
                                               
                                               
Common equity to total assets     7.03 %     7.39 %     7.62 %     7.32 %           7.42 %
                                               
Book value per common share   $ 14.12     $ 13.93     $ 14.05     $ 13.87           $ 13.38  
                                               
                                               
 
(A)   Does not include $3.3 million at September 30, 2013, $3.3 million at June 30, 2013, $3.3 million at March 31, 2013, $2.9 million at December 31, 2012 and $5.7 million at September 30, 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
    Sept 30,   June 30,   March 31,   Dec 31,   Sept 30,
    2013   2013   2013   2012   2012
                               
Residential loans retained   $ 31,517   $ 37,352   $ 31,430   $ 34,699   $ 24,334
Residential loans sold     13,516     26,651     25,402     20,677     28,046
Total residential loans     45,033     64,003     56,832     55,376     52,380
                               
CRE/multifamily     173,692     88,675     42,608     52,925     20,775
Commercial loans     27,525     6,170     9,930     2,150     1,000
                               
Small business banking & Installment loans     4,710     2,866     2,693     2,657     3,677
                               
Home equity lines of credit     3,982     2,619     4,452     2,501     3,346
                               
  Total loan originations   $ 254,942   $ 164,333   $ 116,515   $ 115,609   $ 81,178
                               
                               
 
     
    For the Nine Months Ended
    Sept 30,   Sept 30,
    2013   2012
             
Residential loans retained   $ 100,299   $ 105,805
Residential loans sold     65,569     59,060
Total residential loans     165,868     164,865
             
CRE/multifamily     304,975     90,611
Commercial loans     43,625     4,610
             
Small business banking & Installment loans     10,269     10,016
             
Home equity lines of credit     11,053     10,959
             
  Total loan originations   $ 535,790   $ 281,061
             
             
 
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED CONSOLIDATED FINANCIAL DATA  
(Dollars in thousands, except share data)  
(Unaudited)  
   
    For the Three Months Ended  
    Sept 30,     June 30,     March 31,     Dec 31,     Sept 30,  
    2013     2013     2013     2012     2012  
Income Statement Data:                                        
Interest income   $ 14,423     $ 13,460     $ 13,432     $ 13,792     $ 13,982  
Interest expense     1,050       1,012       1,005       1,033       1,132  
  Net interest income     13,373       12,448       12,427       12,759       12,850  
Provision for loan losses     750       500       850       4,525       750  
  Net interest income after provision for loan losses     12,623       11,948       11,577       8,234       12,100  
Trust fees     3,295       3,628       3,368       2,929       2,918  
Gain on sale of classified loans     -       -       522       -       -  
Gain on loans sold (Mortgage Banking)     277       412       470       370       358  
Other income     1,022       958       955       973       1,048  
Securities gains, net     188       238       289       3,078       235  
  Total other income     4,782       5,236       5,604       7,350       4,559  
Salaries and employee benefits     8,927       7,935       7,079       8,045       7,029  
Premises and equipment     2,325       2,338       2,304       2,433       2,290  
FDIC insurance expense     275       280       280       267       299  
Other expenses     2,638       3,526       2,630       2,808       2,375  
  Total operating expenses     14,165       14,079       12,293       13,553       11,993  
Income before income taxes     3,240       3,105       4,888       2,031       4,666  
Income tax expense     1,276       1,096       1,995       973       1,834  
Net income     1,964       2,009       2,893       1,058       2,832  
Dividends and accretion on preferred stock     -       -       -       -       -  
Net income available to common shareholders   $ 1,964     $ 2,009     $ 2,893     $ 1,058     $ 2,832  
                                         
Per Common Share Data:                                        
                                         
Earnings per share (basic)   $ 0.22     $ 0.23     $ 0.33     $ 0.12     $ 0.32  
Earnings per share (diluted)     0.22       0.22       0.32       0.12       0.32  
                                         
Performance Ratios:                                        
                                         
Return on average assets     0.45 %     0.48 %     0.71 %     0.26 %     0.72 %
Return on average common equity     6.28 %     6.41 %     9.40 %     3.52 %     9.77 %
                                         
Net interest margin                                        
  (Taxable equivalent basis)     3.28 %     3.22 %     3.28 %     3.42 %     3.50 %
                                         
                                         
 
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED CONSOLIDATED FINANCIAL DATA  
(Dollars in thousands, except share data)  
(Unaudited)  
   
    For the  
    Nine Months Ended  
    September 30,  
    2013     2012  
Income Statement Data:                
Interest income   $ 41,315     $ 42,298  
Interest expense     3,067       3,654  
  Net interest income     38,248       38,644  
Provision for loan losses     2,100       3,750  
  Net interest income after provision for loan losses     36,148       34,894  
Trust fees     10,291       9,353  
Gain on loans sold (Mortgage Banking)     1,138       825  
Other income     3,478       3,043  
Securities gains, net     715       732  
  Total other income     15,622       13,953  
Salaries and employee benefits     23,941       19,550  
Premises and equipment     6,967       7,034  
FDIC insurance expense     835       941  
Other expenses     8,794       7,252  
  Total operating expenses     40,537       34,777  
Income before income taxes     11,233       14,070  
Income tax expense     4,367       5,432  
Net income     6,866       8,638  
Dividends and accretion on preferred stock     -       474  
Net income available to common shareholders   $ 6,866     $ 8,164  
                 
Per Common Share Data:                
                 
Earnings per share (basic)   $ 0.77     $ 0.93  
Earnings per share (diluted)     0.76       0.93  
                 
Performance Ratios:                
                 
Return on average assets     0.55 %     0.73 %
Return on average common equity     7.35 %     9.63 %
                 
Net interest margin                
  (Tax equivalent basis)     3.26 %     3.52 %
         
                 
 
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
AVERAGE BALANCE SHEET  
UNAUDITED  
THREE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
                                 
    September 30, 2013     September 30, 2012  
    Average     Income/         Average     Income/      
    Balance     Expense   Yield     Balance     Expense   Yield  
ASSETS:                                        
Interest-Earning Assets:                                        
  Investments:                                        
    Taxable (1)   $ 237,559     $ 1,141   1.92 %   $ 284,440     $ 1,787   2.51 %
    Tax-exempt (1) (2)     54,465       328   2.41       44,481       322   2.90  
  Loans held for sale     1,617       21   5.27       2,829       34   4.77  
  Loans (2) (3)     1,322,842       13,065   3.95       1,098,857       11,965   4.36  
  Federal funds sold     101       -   0.10       100       -   0.10  
  Interest-earning deposits     35,168       21   0.24       53,560       27   0.20  
  Total interest-earning assets     1,651,752     $ 14,576   3.53 %     1,484,267     $ 14,135   3.81 %
Noninterest-Earning Assets:                                        
  Cash and due from banks     5,962                   5,611              
  Allowance for loan losses     (13,615 )                 (14,005 )            
  Premises and equipment     28,984                   30,820              
  Other assets     65,163                   77,232              
    Total noninterest-earning assets     86,494                   99,658              
Total assets   $ 1,738,246                 $ 1,583,925              
                                         
LIABILITIES:                                        
Interest-Bearing Deposits:                                        
  Checking   $ 349,392     $ 73   0.08 %   $ 334,982     $ 89   0.11 %
  Money markets     580,819       275   0.19       503,180       259   0.21  
  Savings     115,711       15   0.05       104,273       14   0.05  
  Certificates of deposit     165,347       444   1.07       188,568       550   1.17  
    Total interest-bearing deposits     1,211,269       807   0.27       1,131,003       912   0.32  
  Borrowings     45,149       138   1.22       15,281       113   2.96  
  Capital lease obligation     8,828       105   4.76       9,043       107   4.73  
  Total interest-bearing liabilities     1,265,246       1,050   0.33       1,155,327       1,132   0.39  
Noninterest-Bearing Liabilities:                                        
  Demand deposits     337,684                   305,192              
  Accrued expenses and other liabilities     10,241                   7,434              
  Total noninterest-bearing liabilities     347,925                   312,626              
Shareholders' equity     125,075                   115,972              
  Total liabilities and shareholders' equity   $ 1,738,246                 $ 1,583,925              
Net interest income           $ 13,526                 $ 13,003      
  Net interest spread                 3.20 %                 3.42 %
  Net interest margin (4)                 3.28 %                 3.50 %
                                           
                                           
 
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
AVERAGE BALANCE SHEET  
UNAUDITED  
THREE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
                                 
    September 30, 2013     June 30, 2013  
    Average     Income/         Average     Income/      
    Balance     Expense   Yield     Balance     Expense   Yield  
ASSETS:                                        
Interest-Earning Assets:                                        
  Investments:                                        
    Taxable (1)   $ 237,559     $ 1,141   1.92 %   $ 220,954     $ 1,085   1.96 %
    Tax-exempt (1) (2)     54,465       328   2.41       50,479       322   2.55  
  Loans held for sale     1,617       21   5.27       2,512       50   8.12  
  Loans (2) (3)     1,322,842       13,065   3.95       1,199,235       12,087   4.03  
  Federal funds sold     101       -   0.10       101       -   0.10  
  Interest-earning deposits     35,168       21   0.24       92,319       66   0.29  
  Total interest-earning assets     1,651,752     $ 14,576   3.53 %     1,565,600     $ 13,610   3.48 %
Noninterest-Earning Assets:                                        
  Cash and due from banks     5,962                   5,865              
  Allowance for loan losses     (13,615 )                 (13,523 )            
  Premises and equipment     28,984                   29,248              
  Other assets     65,163                   71,862              
    Total noninterest-earning assets     86,494                   93,452              
Total assets   $ 1,738,246                 $ 1,659,052              
                                         
LIABILITIES:                                        
Interest-Bearing Deposits:                                        
  Checking   $ 349,392     $ 73   0.08 %   $ 356,060     $ 74   0.08 %
  Money markets     580,819       275   0.19       551,150       239   0.17  
  Savings     115,711       15   0.05       114,028       15   0.05  
  Certificates of deposit     165,347       444   1.07       171,931       486   1.13  
    Total interest-bearing deposits     1,211,269       807   0.27       1,193,169       814   0.27  
  Borrowings     45,149       138   1.22       12,025       92   3.06  
  Capital lease obligation     8,828       105   4.76       8,884       106   4.77  
  Total interest-bearing liabilities     1,265,246       1,050   0.33       1,214,078       1,012   0.33  
Noninterest-Bearing Liabilities:                                        
  Demand deposits     337,684                   311,227              
  Accrued expenses and other liabilities     10,241                   8,298              
  Total noninterest-bearing liabilities     347,925                   319,525              
Shareholders' equity     125,075                   125,449              
  Total liabilities and shareholders' equity   $ 1,738,246                 $ 1,659,052              
Net interest income           $ 13,526                 $ 12,598      
  Net interest spread                 3.20 %                 3.15 %
  Net interest margin (4)                 3.28 %                 3.22 %
                                         
                                         
 
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
AVERAGE BALANCE SHEET  
UNAUDITED  
NINE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
                                 
    September 30, 2013     September 30, 2012  
    Average     Income/         Average     Income/      
    Balance     Expense   Yield     Balance     Expense   Yield  
ASSETS:                                        
Interest-Earning Assets:                                        
  Investments:                                        
    Taxable (1)   $ 235,677     $ 3,503   1.98 %   $ 315,589     $ 5,609   2.37 %
    Tax-exempt (1) (2)     51,582       974   2.52       46,619       1,036   2.96  
  Loans held for sale     6,950       268   5.14       1,859       75   5.37  
  Loans (2) (3)     1,222,369       36,889   4.02       1,084,357       36,005   4.43  
  Federal funds sold     101       -   0.10       100       -   0.10  
  Interest-earning deposits     68,211       135   0.26       32,694       58   0.24  
    Total interest-earning assets     1,584,890     $ 41,769   3.51 %     1,481,218     $ 42,783   3.85 %
Noninterest-Earning Assets:                                        
  Cash and due from banks     5,887                   6,378              
  Allowance for loan losses     (13,406 )                 (13,916 )            
  Premises and equipment     29,344                   31,284              
  Other assets     70,674                   77,323              
    Total noninterest-earning assets     92,499                   101,069              
Total assets   $ 1,677,389                 $ 1,582,287              
                                         
LIABILITIES:                                        
Interest-Bearing Deposits:                                        
  Checking   $ 351,975     $ 225   0.09 %   $ 332,822     $ 292   0.12 %
  Money markets     561,713       729   0.17       508,337       820   0.22  
  Savings     113,486       44   0.05       99,671       56   0.07  
  Certificates of deposit     171,235       1,430   1.11       191,596       1,709   1.19  
    Total interest-bearing deposits     1,198,409       2,428   0.27       1,132,426       2,877   0.34  
  Borrowings     23,226       322   1.85       29,649       453   2.04  
  Capital lease obligation     8,882       317   4.76       9,094       324   4.75  
  Total interest-bearing liabilities     1,230,517       3,067   0.33       1,171,169       3,654   0.42  
Noninterest-Bearing Liabilities:                                        
  Demand deposits     313,420                   290,988              
  Accrued expenses and other liabilities     8,887                   6,592              
  Total noninterest-bearing liabilities     322,307                   297,580              
Shareholders' equity     124,565                   113,538              
  Total liabilities and shareholders' equity   $ 1,677,389                 $ 1,582,287              
Net interest income           $ 38,702                 $ 39,129      
  Net interest spread                 3.18 %                 3.43 %
  Net interest margin (4)                 3.26 %                 3.52 %
                                         
                                         

Contact Information

  • Contact:

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