SOURCE: Peapack-Gladstone Financial Corporation

July 30, 2012 09:20 ET

Peapack-Gladstone Financial Corporation Reports Strong Results for the Second Quarter of 2012

BEDMINSTER, NJ--(Marketwire - Jul 30, 2012) - For the quarter ended June 30, 2012, Peapack-Gladstone Financial Corporation (NASDAQ: PGC) (the Corporation) recorded net income available to common shareholders of $2.72 million and diluted earnings per share (EPS) of $0.31. This quarter's EPS reflected growth of 40.9 percent when compared to diluted earnings per share of $0.22, for the quarter ended June 30, 2011. The current quarter's EPS also reflected growth when compared to diluted earnings per share of $0.30 for the immediately preceding quarter ended March 31, 2012.

For the six months ended June 30, 2012, the Corporation recorded net income available to common shareholders of $5.33 million and diluted earnings per share of $0.61. EPS for the current six month period reflected growth of 52.5 percent when compared to $0.40, for the same six month period last year.

Frank A. Kissel, Chairman and CEO, stated, "This was another solid quarter for us, reflecting the strength of the Corporation and reinforcing our belief that the local economy continues to stabilize."

Mr. Kissel also noted that this was the first quarter since the fourth quarter of 2008 that the Corporation was not required to pay a preferred dividend, as the preferred stock issued in January 2009 to the Treasury under its Capital Purchase Program (CPP) was fully redeemed early in the first quarter of 2012.

Net Interest Income and Margin
Net interest income, on a fully tax-equivalent basis, was $13.06 million for the second quarter of 2012, up from $12.34 million for the same quarter last year.

On a fully tax-equivalent basis, the net interest margin was 3.52 percent for the June 2012 quarter compared to 3.49 percent for the June 2011 quarter.

In comparing the June 2012 quarter to the June 2011 quarter, the positive effect of increased loans, funded by core deposit growth, reduced investment securities and a slight increase in overnight borrowings, was partially offset by the effect of lower Treasury yields, which compressed asset yields more than deposit costs.

Loans
Average loans totaled $1.10 billion for the second quarter of 2012 as compared to $968 million for the same 2011 quarter, an increase of $133 million.

The average residential mortgage loan portfolio for the second quarter of 2012 increased $92 million when compared to the same quarter of 2011. The increase is attributable to originations retained in the portfolio that have outpaced loan paydowns. During this period of lower interest rates, refinance activity has generally been robust. Many of these loans have been retained in portfolio. However, the Corporation does sell much of its longer-term, fixed rate loan production as a source of noninterest income and as part of its interest rate risk management strategy in the lower rate environment.

The average commercial mortgage and commercial loan portfolio for the second quarter of 2012 increased $45 million from the second quarter of 2011. The increase was attributable to commercial mortgage demand, principally from high quality borrowers looking to refinance multifamily and other commercial mortgages held by other institutions.

Mr. Kissel stated, "We continue to be successful in finding new solid lending opportunities. This has been the sixth quarter in a row where we have reflected growth in our loan portfolio." Loan originations were $200 million for the first six months of 2012, up from $153 million for the same six month period of 2011. Included in the total were commercial mortgage/commercial loan originations of $73 million for the 2012 period. Mr. Kissel noted, "We still have room to continue to benefit from funding our loan production with cash flows from our investment portfolio. However, we will continue to conservatively underwrite our loans, as we have in the past."

As of June 30, 2012, the residential first mortgage loan and the commercial mortgage/commercial loan pipelines (loans approved, but not closed and funded) stood at $47 million and $38 million, respectively, with many other lending opportunities in the discussion stage.

Deposits

Average total deposits (interest-bearing and noninterest-bearing) increased $59 million for the June 2012 quarter from the same quarter last year.

Average noninterest-bearing checking balances grew $55 million for the second quarter of 2012 when compared to the second quarter of 2011. Average interest-bearing checking balances for the quarter ended June 30, 2012 grew $18 million from the same quarter in 2011. Average savings accounts increased $14 million from the second quarter of 2011 to the second quarter of 2012.

Overall checking and savings growth continues to be attributable to the Corporation's relationship orientation. The Corporation has successfully focused on:

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

Average certificates of deposit (CDs) declined $16 million for the June 2012 quarter from the June 2011 quarter. These higher-cost CDs were basically replaced with lower cost, more stable core deposits.

From December 31, 2011 to June 30, 2012, total deposits declined $21 million, as various municipalities utilized funds that were held on deposit at year end. 

Mr. Kissel commented, "The Corporation's deposit mix continues to consist primarily of lower-cost, more stable core deposits (checking, savings and money markets), which benefits our cost of funds and our franchise value."

PGB Trust and Investments
PGB Trust and Investments generated $3.26 million in fee income in the second quarter of 2012 compared to $2.83 million for the second quarter of 2011, reflecting 15.2 percent growth. The market value of the assets under administration of the Trust Division stood at $2.06 billion at June 30, 2012, up from $1.96 billion reported at December 31, 2011 and up from $2.01 billion reported at June 30, 2011.

Craig C. Spengeman, President of PGB Trust & Investments, commented, "We continue to see growth in new relationships engaging our services and advice, as a result of our success in guiding clients through these challenging and volatile markets. Mr. Spengeman further noted, "Recent key additions to staff enhance our ability to both grow and service our valued client base."

Other Noninterest Income
Other noninterest income, exclusive of Trust fees, totaled $1.41 million in the June 2012 quarter compared to $1.50 million in the same quarter a year ago. Compared to the second quarter of 2011, the 2012 quarter included: reduced gains from the strategic sales of securities; reduced service charges, as customers have been more diligent in managing their accounts; and a $26 thousand net loss on disposition of REO. The effect of these was almost fully offset by increased fee income from sale of longer term, fixed rate residential mortgage loans, due to higher origination levels, as well as a decision to retain less fixed rate loans in portfolio.

Operating Expenses
The Corporation's total operating expenses were $11.70 million in the June 2012 quarter compared to $11.04 million in the June 2011 quarter. The 2012 expense levels included: costs for the Corporation to keep up with the increased regulatory burden on financial institutions; costs associated with key additions to staff in PGB Trust & Investments, to enhance their ability to grow and service their client base; increased commissions related to increased loan originations; and normal salary increases. The net effect of those additional costs was partially offset by various operational efficiencies.

Provision for Loan Losses / Asset Quality
The Corporation's provision for loan losses for the quarter ended June 30, 2012 was $1.50 million, lower than the $2.00 million provision recorded in the June 2011 quarter.

At June 30, 2012, nonperforming assets totaled $22.1 million or 1.40 percent of total assets, compared to $26.3 million or 1.65 percent of assets at December 31, 2011 and $18.4 million or 1.21 percent of assets at June 30, 2011. Mr. Kissel commented, "We have continued to make progress in resolving problem assets, and we believe that progress will continue. In fact, we expect that several more problem loan/property workouts are on the immediate horizon."

Capital / Dividends
As noted last quarter, 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 June 30, 2012, including the effect from this redemption, the Corporation's leverage ratio, tier 1 and total risk based capital ratios were 7.15 percent, 11.27 percent and 12.52 percent, respectively. The Corporation's ratios are all above the levels necessary to be considered well capitalized under regulatory guidelines applicable to Banks. Additionally, the Corporation's common equity ratio (common equity to total assets) at June 30, 2012 was 7.24 percent of total assets, reflecting growth from 6.81 percent of total assets at December 31, 2011.

As previously announced, on July 19, 2012, the Board of Directors declared a regular cash dividend of $0.05 per share payable on August 16, 2012 to shareholders of record on August 2, 2012.

ABOUT THE CORPORATION
Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.58 billion as of June 30, 2012. Peapack-Gladstone Bank, its wholly owned community bank, was established in 1921, and has 23 branches in Somerset, Hunterdon, Morris, Middlesex and Union Counties. The Bank's Trust Division, PGB Trust and 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 Bethlehem, Pennsylvania. To learn more about Peapack-Gladstone Financial Corporation and its 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;
  • 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 funds 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, 2011 and our subsequent Quarterly Reports on Form 10-Q. 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
    June 30,   March 31,   December 31,   September 30,   June 30,
    2012   2012   2011   2011   2011
ASSETS                              
Cash and due from banks   $ 5,639   $ 5,146   $ 7,097   $ 8,135   $ 8,678
Federal funds sold     100     100     100     100     100
Interest-earning deposits     29,024     28,144     35,856     66,424     51,606
  Total cash and cash equivalents     34,763     33,390     43,053     74,659     60,384
                               
Securities held to maturity     84,779     88,667     100,719     121,241     140,572
Securities available for sale     257,318     281,770     319,520     311,927     249,837
FHLB and FRB Stock, at cost     4,818     5,594     4,569     4,699     4,704
                               
Loans held for sale, at fair value     2,259     3,214     2,841     722     1,813
                               
Residential mortgage     526,726     518,111     498,482     438,828     432,735
Commercial mortgage     384,289     358,822     330,559     317,066     316,197
Commercial loans     116,493     119,351     123,845     129,039     128,839
Construction loans     6,804     12,517     13,713     14,893     15,385
Consumer loans     20,885     19,769     19,439     20,345     20,184
Home equity lines of credit     49,057     47,831     50,291     51,458     48,805
Other loans     2,128     1,504     2,016     1,564     3,612
  Total loans     1,106,382     1,077,905     1,038,345     973,193     965,757
  Less: Allowance for loan losses     13,686     13,496     13,223     13,843     14,056
  Net loans     1,092,696     1,064,409     1,025,122     959,350     951,701
                               
Premises and equipment     30,979     31,482     31,941     32,497     33,098
Other real estate owned     3,073     3,391     7,137     3,264     3,000
Accrued interest receivable     3,447     3,842     4,078     3,788     4,391
Bank owned life insurance     30,688     30,490     27,296     27,767     27,537
Deferred tax assets, net     26,430     26,767     26,731     27,543     24,689
Other assets     7,355     6,524     7,328     7,831     9,014
  TOTAL ASSETS   $ 1,578,605   $ 1,579,540   $ 1,600,335   $ 1,575,288   $ 1,510,740
                               
LIABILITIES                              
Deposits:                              
  Noninterest-bearing demand deposits   $ 304,651   $ 288,130   $ 297,459   $ 254,646   $ 238,788
  Interest-bearing deposits                              
    Checking     323,813     318,239     341,180     337,900     322,801
    Savings     104,631     98,743     92,322     89,527     86,828
    Money market accounts     495,929     512,464     516,920     511,059     507,159
    CD's $100,000 and over     78,268     73,927     71,783     76,100     73,186
    CD's less than $100,000     115,793     120,140     124,228     127,778     132,949
  Total deposits     1,423,085     1,411,643     1,443,892     1,397,010     1,361,711
Overnight borrowings     -     22,900     -     -     -
Federal home loan bank advances     16,451     17,566     17,680     20,793     20,905
Capital lease obligation     9,076     9,127     9,178     6,396     6,426
Other Liabilities     15,758     7,170     6,614     30,406     6,489
  TOTAL LIABILITIES     1,464,370     1,468,406     1,477,364     1,454,605     1,395,531
Shareholders' equity     114,235     111,134     122,971     120,683     115,209
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 1,578,605   $ 1,579,540   $ 1,600,335   $ 1,575,288   $ 1,510,740
                               
Trust division assets under administration (market value, not included above)   $ 2,062,798   $ 2,063,729   $ 1,957,146   $ 1,857,527   $ 2,005,859
                               
                       
                       
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED BALANCE SHEET DATA  
(Dollars in Thousands)  
(Unaudited)  
                       
            As of          
    June 30,   March 31,   December 31,   September 30,   June 30,  
    2012   2012   2011   2011   2011  
Asset Quality:                                
Loans past due over 90 days and still accruing   $ -   $ -   $ 345   $ 836   $ 412  
Nonaccrual loans     19,011     18,598     18,865     22,103     14,943  
Other real estate owned     3,073     3,391     7,137     3,264     3,000  
  Total nonperforming assets   $ 22,084   $ 21,989   $ 26,347   $ 26,203   $ 18,355  
                                 
                                 
Nonperforming loans to total loans     1.72 %   1.73 %   1.85 %   2.36 %   1.59 %
Nonperforming assets to total assets     1.40 %   1.39 %   1.65 %   1.66 %   1.21 %
                                 
Accruing TDR's (A)   $ 7,647   $ 7,842   $ 7,281   $ 5,519   $ 8,171  
                                 
Loans past due 30 through 89 days and still accruing   $ 2,836   $ 7,619   $ 11,632   $ 9,706   $ 8,200  
                                 
Classified loans   $ 47,102   $ 48,546   $ 49,101   $ 52,031   $ 51,586  
                                 
Impaired loans   $ 26,658   $ 26,568   $ 26,212   $ 27,529   $ 23,115  
                                 
Allowance for loan losses:                                
  Beginning of period   $ 13,496   $ 13,223   $ 13,843   $ 14,056   $ 14,386  
  Provision for loan losses     1,500     1,500     1,750     1,500     2,000  
  Charge-offs, net     (1,310 )   (1,227 )   (2,370 )   (1,713 )   (2,330 )
  End of period   $ 13,686   $ 13,496   $ 13,223   $ 13,843   $ 14,056  
                                 
ALLL to nonperforming loans     71.99 %   72.57 %   68.83 %   60.35 %   91.54 %
ALLL to total loans     1.24 %   1.25 %   1.27 %   1.42 %   1.46 %
                                 
Capital Adequacy:                                
Tier I leverage     7.15 %   7.00 %   7.73 %   7.86 %   7.63 %
                                 
Tier I capital to risk-weighted assets     11.27 %   11.21 %   12.51 %   12.73 %   12.67 %
                                 
Tier I & II capital to risk-weighted assets     12.52 %   12.46 %   13.76 %   13.98 %   13.92 %
                                 
Common equity to total assets     7.24 %   7.04 %   6.81 %   6.78 %   6.71 %
                                 
Book value per common share   $ 13.02   $ 12.70   $ 12.47   $ 12.09   $ 11.48  
                                 
(A)  Does not include $6.1 million at June 30, 2012, $6.0 million at March 31, 2012, $3.8 million at December 31, 2011, $3.9 million at September 30, 2011 and $1.3 million at June 30, 2011 of TDR's included in nonaccrual loans.
   
                               
                               
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED CONSOLIDATED FINANCIAL DATA  
(Dollars in thousands, except share data)  
(Unaudited)  
                               
    For the Three Months Ended  
    June 30,   March 31,   December 31,   September 30,           June 30,  
    2012   2012   2011   2011           2011  
Income Statement Data:                                        
Interest income   $ 14,102   $ 14,214   $ 14,101   $ 13,594           $ 14,099  
Interest expense     1,199     1,323     1,485     1,699             1,916  
  Net interest income     12,903     12,891     12,616     11,895             12,183  
Provision for loan losses     1,500     1,500     1,750     1,500             2,000  
  Net interest income after provision for loan losses     11,403     11,391     10,866     10,395             10,183  
Trust fees     3,259     3,176     2,584     2,555             2,829  
Other income     1,305     1,157     1,350     1,170             1,218  
Securities gains/(losses), net     107     390     316     248             277  
  Total other income     4,671     4,723     4,250     3,973             4,324  
Salaries and employee benefits     6,408     6,113     5,651     5,789             5,817  
Premises and equipment     2,413     2,331     2,313     2,322             2,386  
FDIC insurance expense     290     352     278     253             397  
Other expenses     2,593     2,284     3,306     2,209             2,435  
  Total operating expenses     11,704     11,080     11,548     10,573             11,035  
Income before income taxes     4,370     5,034     3,568     3,795             3,472  
Income tax expense/(benefit)     1,647     1,951     1,041     (1,537 )   (A )     1,304  
Net income     2,723     3,083     2,527     5,332     (B )     2,168  
Dividends and accretion on preferred stock     -     474     220     219             219  
Net income available to common shareholders   $ 2,723   $ 2,609   $ 2,307   $ 5,113     (B )   $ 1,949  
                                         
Per Common Share Data:                                        
                                         
Earnings per share (basic)   $ 0.31   $ 0.30   $ 0.26   $ 0.58     (C )   $ 0.22  
Earnings per share (diluted)     0.31     0.30     0.26     0.58     (C )     0.22  
                                         
Performance Ratios:                                        
                                         
Return on average assets     0.69 %   0.78 %   0.64 %   1.39 %   (D )     0.57 %
Return on average common equity     9.65 %   9.47 %   8.61 %   19.87 %   (E )     7.82 %
                                         
Net interest margin (Taxable equivalent basis)     3.52 %   3.54 %   3.46 %   3.37 %           3.49 %
   
(A) Income taxes for the third quarter includes a one-time state tax benefit of $2.988 million related to the reversal of a previously recorded valuation allowance against net state tax benefits related to security impairment charges recorded in the year ended December 31, 2008. Circumstances and projections now indicate that this deferred tax asset can be utilized when it is realized in future periods.
(B) Net income and net income available to common shareholders, excluding the one-time state tax benefit of $2.988 million would be $2.344 million and $2.125 million, respectively for the third quarter.
(C) EPS excluding the one-time state tax benefit of $2.988 million is $0.24 for the third quarter. See below for more information on this non-GAAP measure.
(D) ROA excluding the one-time state tax benefit of $2.988 million is 0.61% for the third quarter. See below for more information on this non-GAAP measure.
(E) ROE excluding the one-time state tax benefit of $2.988 million is 8.26% for the third quarter. See below for more information on this non-GAAP measure.
   
             
             
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED CONSOLIDATED FINANCIAL DATA  
(Dollars in thousands, except share data)  
(Unaudited)  
             
    For the  
    Six Months Ended  
    June 30,  
    2012     2011  
Income Statement Data:                
Interest income   $ 28,316     $ 28,356  
Interest expense     2,522       3,952  
  Net interest income     25,794       24,404  
Provision for loan losses     3,000       4,000  
  Net interest income after provision for loan losses     22,794       20,404  
Trust fees     6,435       5,547  
Other income     2,462       2,473  
Securities gains/(losses), net     497       473  
  Total other income     9,394       8,493  
Salaries and employee benefits     12,521       11,790  
Premises and equipment     4,744       4,736  
FDIC insurance expense     642       1,001  
Other expenses     4,877       4,751  
  Total operating expenses     22,784       22,278  
Income before income taxes     9,404       6,619  
Income tax expense     3,598       2,310  
Net income     5,806       4,309  
Dividends and accretion on preferred stock     474       789  
Net income available to common shareholders   $ 5,332     $ 3,520  
                 
Per Common Share Data:                
                 
Earnings per share (basic)   $ 0.61     $ 0.40  
Earnings per share (diluted)     0.61       0.40  
                 
Performance Ratios:                
                 
Return on average assets     0.73 %     0.57 %
Return on average common equity     9.56 %     7.14 %
                 
Net interest margin (Tax equivalent basis)     3.53 %     3.51 %
                 
                 
 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
NON-GAAP RECONCILIATION
(Dollars in thousands, except share data)
 

This press release contains certain supplemental financial information, described below, which has been determined by methods other that U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of the Corporation's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding the Corporation's financial results. Management believes that the Corporation's presentation and discussion, together with the accompanying reconciliation, provides a complete understanding of factors and trends affecting the Corporation's business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and the Corporation strongly encourages investors to review it consolidated financial statements in their entirety and not to rely on any single financial measure.

       
    For the Three  
    Months Ended  
    September 30, 2011  
Net Income:        
As reported   $ 5,332  
Less: Valuation allowance reversal     2,988  
  Net income, excluding valuation allowance reversal     2,344  
         
Net Income Available to Common Shareholders:        
As reported   $ 5,113  
Less: Valuation allowance reversal     2,988  
  Net income, excluding valuation allowance reversal     2,125  
         
Per Common Share Data:        
Earnings per share (basic):        
As reported   $ 0.58  
Less: Valuation allowance reversal     0.34  
Earnings per share (basic), excluding valuation allowance reversal     0.24  
         
Earnings per share (diluted):        
As reported   $ 0.58  
Less: Valuation allowance reversal     0.34  
Earnings per share (diluted), excluding valuation allowance reversal     0.24  
         
Performance Ratios:        
Return on average assets:        
As reported     1.39 %
Return on average assets, excluding valuation allowance reversal     0.61 %
         
Return on average common equity:        
As reported     19.87 %
Return on average common equity, excluding valuation allowance reversal     8.26 %
         
         
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
AVERAGE BALANCE SHEET  
UNAUDITED  
THREE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
   
  June 30, 2012     June 30, 2011  
  Average Balance   Income/
Expense
Yield     Average Balance   Income/
Expense
Yield  
ASSETS:                              
Interest-Earning Assets:                              
  Investments:                              
    Taxable (1) $ 312,362   $ 1,770 2.27 %   $ 375,216   $ 2,209 2.35 %
    Tax-exempt (1) (2)   45,556     332 2.92       36,855     347 3.77  
  Loans held for sale   1,137     18 6.57       510     5 3.78  
  Loans (2) (3)   1,101,095     12,124 4.40       968,179     11,674 4.82  
  Federal funds sold   100     - 0.10       100     - 0.25  
  Interest-earning deposits   22,306     14 0.26       32,598     20 0.24  
    Total interest-earning assets   1,482,556   $ 14,258 3.85 %     1,413,458   $ 14,255 4.03 %
Noninterest-Earning Assets:                              
  Cash and due from banks   5,846               8,231          
  Allowance for loan losses   (13,990 )             (15,086 )        
  Premises and equipment   31,284               33,393          
  Other assets   76,469               71,868          
    Total noninterest-earning assets   99,609               98,406          
Total assets $ 1,582,165             $ 1,511,864          
                               
LIABILITIES:                              
Interest-Bearing Deposits:                              
  Checking $ 326,920   $ 90 0.11 %   $ 309,310   $ 292 0.38 %
  Money markets   505,532     257 0.20       516,739     577 0.45  
  Savings   99,958     13 0.05       86,150     56 0.26  
  Certificates of deposit   192,261     563 1.17       208,697     713 1.37  
    Total interest-bearing deposits   1,124,671     923 0.33       1,120,896     1,638 0.58  
  Borrowings   36,586     168 1.84       26,242     198 3.02  
  Capital lease obligation   9,093     108 4.75       6,410     80 4.98  
  Total interest-bearing liabilities   1,170,350     1,199 0.41       1,153,548     1,916 0.66  
Noninterest-Bearing                              
Liabilities:                              
  Demand deposits   292,459               237,651          
  Accrued expenses and other liabilities   6,438               7,104          
  Total noninterest-bearing liabilities   298,897               244,755          
Shareholders' equity   112,918               113,561          
  Total liabilities and shareholders' equity $ 1,582,165             $ 1,511,864          
Net interest income       $ 13,059             $ 12,339    
  Net interest spread           3.44 %             3.37 %
  Net interest margin (4)           3.52 %             3.49 %
                               
                               
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
AVERAGE BALANCE SHEET  
UNAUDITED  
THREE MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
   
    June 30, 2012     March 31, 2012  
    Average Balance   Income/
Expense
Yield     Average Balance   Income/
Expense
Yield  
ASSETS:                                
Interest-Earning Assets:                                
  Investments:                                
    Taxable (1)   $ 312,362   $ 1,770 2.27 %   $ 350,306   $ 2,052 2.34 %
    Tax-exempt (1) (2)     45,556     332 2.92       49,843     381 3.06  
  Loans held for sale     1,137     18 6.57       1,602     23 5.60  
  Loans (2) (3)     1,101,095     12,124 4.40       1,052,960     11,917 4.53  
  Federal funds sold     100     - 0.10       100     - 0.10  
  Interest-earning deposits     22,306     14 0.26       21,988     17 0.30  
    Total interest-earning assets     1,482,556   $ 14,258 3.85 %     1,476,799   $ 14,390 3.90 %
Noninterest-Earning Assets:                                
  Cash and due from banks     5,846               7,687          
  Allowance for loan losses     (13,990 )             (13,753 )        
  Premises and equipment     31,284               31,751          
  Other assets     76,469               78,781          
    Total noninterest-earning assets     99,609               104,466          
Total assets   $ 1,582,165             $ 1,581,265          
                                 
LIABILITIES:                                
Interest-Bearing Deposits:                                
  Checking   $ 326,920   $ 90 0.11 %   $ 336,541   $ 113 0.13 %
  Money markets     505,532     257 0.20       516,357     304 0.24  
  Savings     99,958     13 0.05       94,732     29 0.12  
  Certificates of deposit     192,261     563 1.17       193,992     596 1.23  
    Total interest-bearing deposits     1,124,671     923 0.33       1,141,622     1,042 0.37  
  Borrowings     36,586     168 1.84       37,237     172 1.85  
  Capital lease obligation     9,093     108 4.75       9,145     109 4.77  
  Total interest-bearing liabilities     1,170,350     1,199 0.41       1,188,004     1,323 0.45  
Noninterest-Bearing Liabilities:                                
  Demand deposits     292,459               275,157          
  Accrued expenses and other liabilities     6,438               6,407          
  Total noninterest-bearing liabilities     298,897               281,564          
Shareholders' equity     112,918               111,697          
  Total liabilities and shareholders' equity   $ 1,582,165             $ 1,581,265          
Net interest income         $ 13,059             $ 13,067    
  Net interest spread             3.44 %             3.45 %
  Net interest margin (4)             3.52 %             3.54 %
                                   
                                   
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
AVERAGE BALANCE SHEET  
UNAUDITED  
SIX MONTHS ENDED  
(Tax-Equivalent Basis, Dollars in Thousands)  
   
    June 30, 2012     June 30, 2011  
    Average Balance   Income/
Expense
Yield     Average Balance   Income/
Expense
Yield  
ASSETS:                                
Interest-Earning Assets:                                
  Investments:                                
    Taxable (1)   $ 331,334   $ 3,822 2.31 %   $ 379,625   $ 4,478 2.36 %
    Tax-exempt (1) (2)     47,699     714 2.99       36,224     700 3.86  
  Loans held for sale     1,370     41 6.00       621     21 6.66  
  Loans (2) (3)     1,077,028     24,041 4.46       952,712     23,421 4.92  
  Federal funds sold     100     - 0.10       100     - 0.26  
  Interest-earning deposits     22,147     31 0.28       37,237     48 0.26  
    Total interest-earning assets     1,479,678   $ 28,649 3.87 %     1,406,519   $ 28,668 4.08 %
Noninterest-Earning Assets:                                
  Cash and due from banks     6,766               8,055          
  Allowance for loan losses     (13,872 )             (15,010 )        
  Premises and equipment     31,518               33,516          
  Other assets     77,369               71,457          
    Total noninterest-earning assets     101,781               98,018          
Total assets   $ 1,581,459             $ 1,504,537          
                                 
LIABILITIES:                                
Interest-Bearing Deposits:                                
  Checking   $ 331,731   $ 203 0.12 %   $ 303,688   $ 595 0.39 %
  Money markets     510,944     561 0.22       519,590     1,200 0.46  
  Savings     97,345     42 0.09       84,170     109 0.26  
  Certificates of deposit     193,127     1,159 1.20       213,998     1,488 1.39  
    Total interest-bearing deposits     1,133,147     1,965 0.35       1,121,446     3,392 0.60  
  Borrowings     36,912     340 1.84       25,445     401 3.15  
  Capital lease obligation     9,119     217 4.76       6,372     159 4.97  
  Total interest-bearing liabilities     1,179,178     2,522 0.43       1,153,263     3,952 0.69  
Noninterest-Bearing Liabilities:                                
  Demand deposits     283,808               230,075          
  Accrued expenses and other liabilities     6,166               6,408          
  Total noninterest-bearing liabilities     289,974               236,483          
Shareholders' equity     112,307               114,791          
  Total liabilities and shareholders' equity   $ 1,581,459             $ 1,504,537          
Net interest income         $ 26,127             $ 24,716    
  Net interest spread             3.44 %             3.39 %
  Net interest margin (4)             3.53 %             3.51 %
                                   
(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
    EVP and CFO
    Peapack-Gladstone Financial Corporation
    T: 908-719-4308