Attached files
| file | filename |
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| 8-K - FORM 8-K - PEAPACK GLADSTONE FINANCIAL CORP | form8k-106773_pgfc.htm |
Contact:
Jeffrey
J. Carfora, EVP and CFO
Peapack-Gladstone
Financial Corporation
T: 908-719-4308
PEAPACK-GLADSTONE
FINANCIAL CORPORATION
REPORTS
FIRST QUARTER RESULTS OF OPERATIONS
GLADSTONE, N.J.—(BUSINESS WIRE)—April
27, 2010 – Peapack-Gladstone Financial Corporation (NASDAQ Global Select
Market:PGC) (the Corporation) recorded net income of $2.1 million and
diluted earnings per common share of $0.16, for the quarter ended March 31,
2010. These results compared to net income of $1.4 million and diluted earnings
per common share of $0.11 for the quarter ended December 31,
2009. Net income and diluted earnings per share for the quarter ended
March 31, 2009 were $2.5 million and $0.26, respectively.
When
compared to the quarter ended December 31, 2009, the quarter ended March 31,
2010 included an increase in net interest income and trust fees and other income
and a decrease in the provision for loan losses. These positive effects were
partially offset, with respect to diluted earnings per share, by an increase in
preferred dividends and accretion, due to the January 6, 2010 partial redemption
of the preferred shares previously issued under the U.S. Treasury’s Capital
Purchase Program (“CPP”).
When
compared to the March 2009 quarter, the March 2010 quarter included a greater
provision for loan losses, additional expenses partially due to two new
locations opened in 2009, and, with respect to diluted earnings per share, an
increase in preferred dividends and accretion, due to the January 2010 partial
redemption of the CPP. The effects of these were partially offset by increased
net interest income and increased trust fees and other noninterest income in the
2010 period.
Frank A.
Kissel, Chairman and CEO, stated, “We are pleased to once
again report positive earnings and generate capital in excess
of common and preferred dividends, as we have throughout 2009, despite the
significant impact the recession has had on financial institutions and their
borrowers. This internal capital generation enabled us to redeem 25 percent of
the preferred shares issued previously under the CPP.” Mr. Kissel continued,
“Building capital internally, remaining well capitalized and redeeming the
Treasury’s CPP investment over time continue to be important business objectives
of the Corporation.”
The
Corporation’s provision for loan losses increased substantially throughout 2009
starting at $2.0 million for the quarter ended March 31, 2009 and reaching its
highest quarterly level of $3.0 million for the quarter ended December 31, 2009,
as the continued weakness in the overall economy and in the real estate markets
negatively impacted our borrowers and their property values, causing an increase
in problem loans. Mr. Kissel noted “the provision for loan losses for
the first quarter of 2010 was lower than the level for the fourth
quarter of 2009 and it still contributed to an overall increase in the allowance
for loan losses from $13.2 million or 1.34 percent of loans at December 31, 2009
to $13.7 million or 1.41 percent of loans at March 31, 2010”.
Mr.
Kissel continued “We have not seen the same significant deterioration in our
loan portfolio as many other institutions have because of our conservative
underwriting at the time of origination and our continued diligence in managing
our loan portfolio. Further, we are pleased with the progress we have made over
the past several quarters in resolving certain problem assets.”
Net
Interest Income and Margin
In the
first quarter of 2010, net interest income, on a fully tax-equivalent basis, was
$12.7 million, reflecting an increase from $12.4 million for the fourth quarter
of 2009, as well as an increase from the $12.1 million for the first quarter of
2009. On a fully tax-equivalent basis, the net interest margin was
3.67 percent for the March 2010 quarter, 3.44 percent for the December 2009
quarter and 3.70 percent for the March 2009 quarter.
The
intentional run-off of higher cost certificates of deposit and the growth of
core deposits, coupled with a reduction in cash balances contributed to the
increased margin in the first quarter of 2010 when compared to the fourth
quarter of 2009.
In
comparing the March 2010 quarter to the same quarter last year, the effect of
growth in lower yielding, but less risky and shorter duration cash deposits and
investment securities coupled with declining loan balances, contributed to the
reduced margin. Mr. Kissel stated, “We have built substantial short
and medium-term liquidity into our balance sheet over the last several quarters,
so as to be better positioned in the future when we expect loan demand will
increase and interest rates will rise.”
Loans
Average
loans totaled $978.5 million for the first quarter of 2010 as compared to $1.05
billion for the same 2009 quarter, reflecting a decrease of $69.4 million or 6.6
percent. The average residential mortgage loan portfolio declined $52.5 million
or 10.5 percent to $449.4 million from the same quarter of 2009, as the
Corporation has opted to sell its longer-term, fixed-rate loan production as an
interest rate risk management strategy in the lower rate environment and loan
payments have outpaced originations retained in portfolio. The average
commercial portfolio declined $18.2 million or 12.9 percent to $122.7 million,
as loan demand and quality borrowers on the commercial front have remained
scarce.
The
average home equity line portfolio rose $7.0 million or 21.7 percent to $39.1
million for the first quarter of 2010 compared to the same quarter in
2009. The Corporation focused on the origination of these
adjustable-rate loans, and loan originations outpaced principal paydowns over
the year.
Deposits
Average
total deposits (interest-bearing and noninterest-bearing) grew 6.9 percent from
$1.24 billion in the first quarter of 2009 to $1.32 billion in the first quarter
of 2010. Average noninterest-bearing checking grew $15.9 million or
8.3 percent to $208.0 million in the first quarter of 2010 from the first
quarter of 2009. Average interest-bearing checking balances totaled $238.3
million in the first quarter of 2010, rising $70.2 million or 41.8 percent from
the same quarter in 2009. Checking growth is attributable to the
Corporation’s focus on core deposit growth, particularly checking, coupled with
growth in the Ultimate Checking product, which provides customers with a
low-cost checking product and a higher yield for larger balances.
Average
money market accounts also rose, from $381.5 million in the first quarter of
2009 to $494.7 million for the same quarter of 2010, an increase of $113.1
million or 29.7 percent. The Corporation’s focus on core deposit
growth, as well as certain customers tending to “park” funds in money market
accounts in lower interest rate environments accounted for this
growth.
In
comparing balances at March 31, 2010 to balances at December 31, 2009,
noninterest-bearing checking, savings and money market accounts have continued
to increase, while higher costing certificates of deposit and interest-bearing
checking have declined. The Corporation has opted not to pay above
market rates on maturing certificates of deposit, as the Corporation has ample
liquidity from core deposit growth and principal paydowns on loans.
Mr.
Kissel commented, “Our continued core deposit growth and reduced reliance on
certificates of deposit continues to strengthen our customer relationships,
reduce our overall cost of funds, contribute to our profitability and enhance
the value of our franchise.”
PGB
Trust and Investments
PGB Trust
and Investments generated $2.4 million in fee income in the first quarter of
2010, compared to $2.3 million in both the December 2009 quarter and the March
2009 quarter. The market value of the assets under administration of the Trust
Division increased from $1.60 billion at March 31, 2009 to $1.89 billion at
March 31, 2010.
Craig C.
Spengeman, President of PGB Trust & Investments commented, “We are pleased
with the recovery and performance of our assets under administration throughout
2009 and into 2010 as the financial markets have been enduring the worst
financial crisis since the Great Depression. The recovery and performance
reflects the sound financial management of our trust and investment
professionals as well as the quality of new business booked as prospective
clients continue to seek professional advice during these challenging
times.”
Other
Income
For the
first quarter of 2010, other income totaled $1.1 million compared to the same
amount for the December 2009 quarter and compared to $983 thousand for the first
quarter of 2009. Fee income earned on the sale of mortgage loans at
origination increased $84 thousand to $177 thousand in the first quarter of 2010
from $93 thousand in the same 2009 period. The increase for 2010 resulted from
greater longer-term, fixed-rate mortgage originations, which are sold, as well
as a greater targeted sale price for such originations.
Operating
Expenses
The
Corporation’s total operating expenses were $10.5 million for the March 2010
quarter compared to $10.6 million in the December 2009 quarter and compared to
$9.5 million for the March 2009 quarter. The increase for 2010, when compared to
the year ago quarter, was principally due to expenses associated with a new
Trust office opened in June 2009 and a new branch office opened in September
2009, increased expenses related to problem loans and REO, and an increase in
FDIC insurance due to an industry-wide increase in the FDIC assessment
rates.
ASSET
QUALITY
At March 31, 2010, nonperforming assets
increased slightly to $12.9 million or 0.87 percent of total assets as compared
to $12.1 million or 0.80 percent of total assets at December 31, 2009. Mr.
Kissel noted, “We continue to be proactive in our loan portfolio management in
an effort to identify and stay ahead of potential problems. We are
well capitalized and we are ready to lend to well-qualified individuals and
businesses. However, we remain committed to our conservative
underwriting standards that have served us well in the past and which we believe
will continue to serve us well in the future.”
The
allowance for loan losses was $13.7 million or 1.41 percent of total loans at
March 31, 2010 as compared to $13.2 million or 1.34 percent of total loans at
December 31, 2009.
CAPITAL
At March 31, 2010, the Corporation’s
leverage ratio, tier 1 and total risk based capital ratios were 7.80 percent,
12.01 percent and 13.27 percent, respectively. All ratios are above
the levels necessary to be considered well capitalized under applicable
regulatory guidelines, despite the $7.2 million reduction in regulatory capital
due to the partial redemption of the preferred shares previously issued under
the CPP. Additionally, the Corporation’s common equity ratio (common equity to
total assets) at March 31, 2010 stands at 6.29 percent.
As
previously announced, on April 15, 2010 the Board of Directors declared a
regular cash dividend of $0.05 per share payable on May 13, 2010 to shareholders
of record on April 29, 2010.
ABOUT
THE CORPORATION
Peapack-Gladstone
Financial Corporation is a bank holding company with total assets of $1.48
billion as of March 31, 2010. Peapack-Gladstone Bank, its wholly
owned community bank, was established in 1921, and has 24 branches in Somerset,
Hunterdon, Morris, Middlesex and Union Counties. Its Trust Division,
PGB Trust and Investments, operates at the Bank’s main office located at 190
Main Street in Gladstone 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 web
site 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
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·
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a
continued or unexpected decline in the economy, in particular in our New
Jersey market area;
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declines
in value in our investment
portfolio;
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·
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higher
than expected increases in our allowance for loan
losses;
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·
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increases
in loan losses or in the level of nonperforming
loans;
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·
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unexpected
changes in interest rates;
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·
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we
may be unable to successfully grow our
business;
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we
may be unable to manage our growth;
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·
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a
continued or unexpected decline in real estate values within our market
areas;
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·
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increased
or unexpected competition from our
competitors;
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significant
regulatory oversight which may adversely affect our
business;
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·
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higher
than expected FDIC insurance
premiums;
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·
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lack
of liquidity to fund our various cash
obligations;
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·
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repurchase
of our preferred shares issued under the Treasury’s Capital Purchase
Program which will impact net income available to our common shareholders
and our earnings per share;
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further
offerings of our equity securities may result in dilution of our common
stock;
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reduction
in our lower-cost funding sources;
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changes
in accounting policies or accounting
standards;
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we
may be unable to adapt to technological
changes;
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our
internal controls and procedures may not be
adequate;
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claims
and litigation pertaining to fiduciary responsibility, environmental laws
and other matters;
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·
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future
earnings volatility caused by economic or other factors;
and
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·
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other
unexpected material adverse changes in our operations or
earnings.
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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, 2009. 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
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||||||||||||||||||||
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March
31,
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December
31,
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September
30,
|
June
30,
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March
31,
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||||||||||||||||
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2010
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2009
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2009
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2009
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2009
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ASSETS
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||||||||||||||||||||
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Cash
and due from banks
|
$ | 8,999 | $ | 7,864 | $ | 9,343 | $ | 50,921 | $ | 20,525 | ||||||||||
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Federal
funds sold
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201 | 201 | 200 | 200 | 201 | |||||||||||||||
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Interest-earning
deposits
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33,915 | 71,907 | 46,876 | 513 | 59,063 | |||||||||||||||
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Total
cash and cash equivalents
|
43,115 | 79,972 | 56,419 | 51,634 | 79,789 | |||||||||||||||
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Securities
held to maturity
|
105,258 | 89,459 | 86,703 | 77,216 | 48,379 | |||||||||||||||
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Securities
available for sale
|
278,052 | 272,484 | 252,786 | 227,414 | 178,676 | |||||||||||||||
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FHLB
and FRB Stock, at cost
|
5,305 | 5,315 | 5,329 | 5,343 | 4,202 | |||||||||||||||
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Residential
mortgage
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443,085 | 452,641 | 466,601 | 483,330 | 494,208 | |||||||||||||||
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Commercial
mortgage
|
281,323 | 279,595 | 279,336 | 275,915 | 275,675 | |||||||||||||||
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Commercial
loans
|
133,288 | 120,554 | 129,671 | 133,659 | 137,304 | |||||||||||||||
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Construction
loans
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48,044 | 64,816 | 65,760 | 67,075 | 69,474 | |||||||||||||||
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Consumer
loans
|
24,936 | 25,638 | 26,571 | 27,302 | 27,959 | |||||||||||||||
|
Home
equity lines of credit
|
39,487 | 38,728 | 38,450 | 35,357 | 32,648 | |||||||||||||||
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Other
loans
|
902 | 1,565 | 1,592 | 1,079 | 1,958 | |||||||||||||||
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Total
loans
|
971,065 | 983,537 | 1,007,981 | 1,023,717 | 1,039,226 | |||||||||||||||
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Less: Allowance
for loan losses
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13,720 | 13,192 | 12,947 | 11,054 | 9,762 | |||||||||||||||
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Net
loans
|
957,345 | 970,345 | 995,034 | 1,012,663 | 1,029,464 | |||||||||||||||
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Premises
and equipment
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27,942 | 27,911 | 28,011 | 27,189 | 26,740 | |||||||||||||||
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Other
real estate owned
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40 | 360 | 680 | 700 | 965 | |||||||||||||||
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Accrued
interest receivable
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5,112 | 4,444 | 5,359 | 4,652 | 4,635 | |||||||||||||||
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Bank
owned life insurance
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26,473 | 26,292 | 26,087 | 25,865 | 25,672 | |||||||||||||||
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Deferred
tax assets, net
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23,999 | 23,522 | 22,154 | 23,653 | 22,927 | |||||||||||||||
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Other
assets
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10,670 | 12,249 | 9,117 | 2,550 | 2,858 | |||||||||||||||
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TOTAL
ASSETS
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$ | 1,483,311 | $ | 1,512,353 | $ | 1,487,679 | $ | 1,458,879 | $ | 1,424,307 | ||||||||||
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LIABILITIES
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Deposits:
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Noninterest
bearing
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demand
deposits
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$ | 223,184 | $ | 216,127 | $ | 199,804 | $ | 194,888 | $ | 195,175 | ||||||||||
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Interest-bearing
deposits
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Checking
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241,887 | 255,058 | 212,687 | 203,378 | 178,430 | |||||||||||||||
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Savings
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77,064 | 73,866 | 73,308 | 71,464 | 70,426 | |||||||||||||||
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Money
market accounts
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502,548 | 458,303 | 470,123 | 418,208 | 400,692 | |||||||||||||||
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CD’s
$100,000 and over
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109,347 | 147,138 | 159,942 | 187,516 | 192,708 | |||||||||||||||
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CD’s
less than $100,000
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173,219 | 199,177 | 209,994 | 220,779 | 225,608 | |||||||||||||||
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Total
deposits
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1,327,249 | 1,349,669 | 1,325,858 | 1,296,233 | 1,263,039 | |||||||||||||||
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Borrowings
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36,140 | 36,499 | 36,815 | 37,128 | 39,439 | |||||||||||||||
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Other
liabilities
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5,998 | 6,676 | 5,862 | 9,844 | 7,654 | |||||||||||||||
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TOTAL
LIABILITIES
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1,369,387 | 1,392,844 | 1,368,535 | 1,343,205 | 1,310,132 | |||||||||||||||
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Shareholders’
Equity
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113,924 | 119,509 | 119,144 | 115,674 | 114,175 | |||||||||||||||
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TOTAL
LIABILITIES AND
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SHAREHOLDERS’
EQUITY
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$ | 1,483,311 | $ | 1,512,353 | $ | 1,487,679 | $ | 1,458,879 | $ | 1,424,307 | ||||||||||
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Trust
division assets under
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||||||||||||||||||||
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management
(market value,
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not
included above)
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$ | 1,894,971 | $ | 1,856,229 | $ | 1,803,862 | $ | 1,702,782 | $ | 1,602,752 | ||||||||||
PEAPACK-GLADSTONE
FINANCIAL CORPORATION
SELECTED
BALANCE SHEET DATA
(Dollars
in thousands)
(Unaudited)
|
As
of
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March
31,
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December
31,
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September
30,
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June
30,
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March
31,
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2010
|
2009
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2009
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2009
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2009
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Asset
Quality:
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Loans
past due over 90 days
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and
still accruing
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$ | 638 | $ | 496 | $ | 1,118 | $ | 104 | $ | - | ||||||||||
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Nonaccrual
loans
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12,200 | 11,256 | 13,082 | 12,998 | 11,139 | |||||||||||||||
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Other
real estate owned
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40 | 360 | 680 | 700 | 965 | |||||||||||||||
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Total
nonperforming assets
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$ | 12,878 | $ | 12,112 | $ | 14,880 | $ | 13,802 | $ | 12,104 | ||||||||||
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Nonperforming
loans to
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||||||||||||||||||||
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total
loans
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1.32 | % | 1.19 | % | 1.41 | % | 1.28 | % | 1.07 | % | ||||||||||
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Nonperforming
assets to
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||||||||||||||||||||
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total
assets
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0.87 | % | 0.80 | % | 1.00 | % | 0.95 | % | 0.85 | % | ||||||||||
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Troubled
debt restructured loans
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$ | 11,817 | $ | 11,123 | $ | 18,671 | $ | 7,766 | $ | - | ||||||||||
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Loans
past due 30 through 89
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days
and still accruing
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$ | 10,056 | $ | 6,015 | $ | 7,362 | $ | 5,524 | $ | 8,458 | ||||||||||
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Allowance
for loan losses:
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Beginning
of period
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$ | 13,192 | $ | 12,947 | $ | 11,054 | $ | 9,762 | $ | 9,688 | ||||||||||
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Provision
for loan losses
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2,400 | 2,950 | 2,750 | 2,000 | 2,000 | |||||||||||||||
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Charge-offs,
net
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(1,872 | ) | (2,705 | ) | (857 | ) | (708 | ) | (1,926 | ) | ||||||||||
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End
of period
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$ | 13,720 | $ | 13,192 | $ | 12,947 | $ | 11,054 | $ | 9,762 | ||||||||||
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ALLL
to nonperforming loans
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106.87 | % | 112.25 | % | 91.18 | % | 84.37 | % | 87.64 | % | ||||||||||
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ALLL
to total loans
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1.41 | % | 1.34 | % | 1.28 | % | 1.08 | % | 0.94 | % | ||||||||||
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Capital
Adequacy:
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Tier
I leverage
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(5%
minimum to be
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considered
well
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capitalized)
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7.80 | % | 7.93 | % | 8.17 | % | 8.25 | % | 8.21 | % | ||||||||||
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Tier
I capital to risk-
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||||||||||||||||||||
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weighted
assets
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(6%
minimum to be
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considered
well
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capitalized)
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12.01 | % | 12.45 | % | 12.23 | % | 12.30 | % | 11.73 | % | ||||||||||
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Tier
I & II capital to
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risk-weighted
assets
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(10%
minimum to be
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considered
well
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||||||||||||||||||||
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capitalized)
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13.27 | % | 13.71 | % | 13.48 | % | 13.44 | % | 12.73 | % | ||||||||||
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Common
equity to
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||||||||||||||||||||
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Total
assets
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6.29 | % | 6.09 | % | 6.17 | % | 6.06 | % | 6.11 | % | ||||||||||
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Book
value per
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||||||||||||||||||||
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Common
share
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$ | 10.70 | $ | 10.57 | $ | 10.54 | $ | 10.15 | $ | 9.99 | ||||||||||
PEAPACK-GLADSTONE
FINANCIAL CORPORATION
SELECTED
CONSOLIDATED FINANCIAL DATA
(Dollars
in thousands, except share data)
(Unaudited)
|
For
The Three Months Ended
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March
31,
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December
31,
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September
30,
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June
30,
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March
31,
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2010
|
2009
|
2009
|
2009
|
2009
|
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Income
Statement Data:
|
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Interest
income
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$ | 15,791 | $ | 16,123 | $ | 16,379 | $ | 16,709 | $ | 16,795 | ||||||||||
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Interest
expense
|
3,243 | 4,000 | 4,129 | 4,543 | 4,987 | |||||||||||||||
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Net
interest income
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12,548 | 12,123 | 12,250 | 12,166 | 11,808 | |||||||||||||||
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Provision
for loan losses
|
2,400 | 2,950 | 2,750 | 2,000 | 2,000 | |||||||||||||||
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Net
interest income after
|
||||||||||||||||||||
|
provision
for loan losses
|
10,148 | 9,173 | 9,500 | 10,166 | 9,808 | |||||||||||||||
|
Trust
fees
|
2,364 | 2,346 | 2,200 | 2,550 | 2,332 | |||||||||||||||
|
Other
income
|
1,108 | 1,067 | 1,137 | 1,114 | 983 | |||||||||||||||
|
Securities
gains, net
|
- | (42 | ) | (2 | ) | 108 | 5 | |||||||||||||
|
Salaries
and employee benefits
|
5,709 | 5,291 | 5,622 | 5,430 | 5,534 | |||||||||||||||
|
Premises
and equipment
|
2,372 | 2,358 | 2,185 | 2,171 | 2,089 | |||||||||||||||
|
FDIC
insurance expense
|
586 | 834 | 724 | 1,378 | 373 | |||||||||||||||
|
Other
expenses
|
1,863 | 2,124 | 2,409 | 2,216 | 1,528 | |||||||||||||||
|
Income
before income taxes
|
3,090 | 1,937 | 1,895 | 2,743 | 3,604 | |||||||||||||||
|
Income
tax expense
|
965 | 536 | 583 | 813 | 1,122 | |||||||||||||||
|
Net
income
|
2,125 | 1,401 | 1,312 | 1,930 | 2,482 | |||||||||||||||
|
Dividends
and accretion
|
||||||||||||||||||||
|
on
preferred stock
|
710 | 430 | 430 | 428 | 205 | |||||||||||||||
|
Net
income available to
|
||||||||||||||||||||
|
Common
shareholders
|
$ | 1,415 | $ | 971 | $ | 882 | $ | 1,502 | $ | 2,277 | ||||||||||
|
Per
Common Share Data:
|
||||||||||||||||||||
|
Earnings
per share (basic)
|
$ | 0.16 | $ | 0.11 | $ | 0.10 | $ | 0.17 | $ | 0.26 | ||||||||||
|
Earnings
per share (diluted)
|
0.16 | 0.11 | 0.10 | 0.17 | 0.26 | |||||||||||||||
|
Performance
Ratios:
|
||||||||||||||||||||
|
Return
on Average Assets
|
0.58 | % | 0.37 | % | 0.36 | % | 0.54 | % | 0.71 | % | ||||||||||
|
Return
on Average Common
|
||||||||||||||||||||
|
Equity
|
6.10 | % | 4.18 | % | 3.89 | % | 6.75 | % | 10.45 | % | ||||||||||
|
Net
Interest Margin
|
||||||||||||||||||||
|
(Taxable
Equivalent Basis)
|
3.67 | % | 3.44 | % | 3.61 | % | 3.71 | % | 3.70 | % | ||||||||||
|
Note: Per
share amounts have been restated for a 5% stock dividend declared on June
18, 2009, and payable on August 3, 2009 to shareholders
of record on July 9, 2009.
|
||||||||||||||||||||
|
|
||||||||||||||||||||
PEAPACK-GLADSTONE
FINANCIAL CORPORATION
SELECTED
CONSOLIDATED FINANCIAL DATA
(Dollars
in thousands, except share data)
(Unaudited)
|
For
The
|
||||||||
|
Three
Months Ended
|
||||||||
|
March
31,
|
||||||||
|
2010
|
2009
|
|||||||
|
Income
Statement Data:
|
||||||||
|
Interest
income
|
$ | 15,791 | $ | 16,795 | ||||
|
Interest
expense
|
3,243 | 4,987 | ||||||
|
Net
interest income
|
12,548 | 11,808 | ||||||
|
Provision
for loan losses
|
2,400 | 2,000 | ||||||
|
Net
interest income after
|
||||||||
|
provision
for loan losses
|
10,148 | 9,808 | ||||||
|
Trust
fees
|
2,364 | 2,332 | ||||||
|
Other
income
|
1,108 | 983 | ||||||
|
Securities
gains, net
|
- | 5 | ||||||
|
Salaries
and employee benefits
|
5,709 | 5,534 | ||||||
|
Premises
and equipment
|
2,372 | 2,089 | ||||||
|
FDIC
insurance expense
|
586 | 373 | ||||||
|
Other
expenses
|
1,863 | 1,528 | ||||||
|
Income
before income taxes
|
3,090 | 3,604 | ||||||
|
Income
tax expense
|
965 | 1,122 | ||||||
|
Net
income
|
2,125 | 2,482 | ||||||
|
Dividends
and accretion
|
||||||||
|
on
preferred stock
|
710 | 205 | ||||||
|
Net
income available to
|
||||||||
|
Common
shareholders
|
$ | 1,415 | $ | 2,277 | ||||
|
Per
Common Share Data:
|
||||||||
|
Earnings
per share (basic)
|
$ | 0.16 | $ | 0.26 | ||||
|
Earnings
per share (diluted)
|
0.16 | 0.26 | ||||||
|
Performance
Ratios:
|
||||||||
|
Return
on Average Assets
|
0.58 | % | 0.71 | % | ||||
|
Return
on Average Common
|
||||||||
|
Equity
|
6.10 | % | 10.45 | % | ||||
|
Net
Interest Margin
|
||||||||
|
(Taxable
Equivalent Basis)
|
3.67 | % | 3.70 | % | ||||
|
Note: Per
share amounts have been restated for a 5% stock dividend declared on June
18, 2009, and payable on August 3, 2009
to shareholders of record on July 9, 2009.
|
||||||||
|
|
||||||||
PEAPACK-GLADSTONE
FINANCIAL CORPORATION
AVERAGE
BALANCE SHEET
UNAUDITED
THREE
MONTHS ENDED
(Tax-Equivalent
Basis, Dollars in Thousands)
|
March
31, 2010
|
March
31, 2009
|
|||||||||||||||||||||||
|
Average
|
Income/
|
Average
|
Income/
|
|||||||||||||||||||||
|
Balance
|
Expense
|
Yield
|
Balance
|
Expense
|
Yield
|
|||||||||||||||||||
|
ASSETS:
|
||||||||||||||||||||||||
|
Interest-Earning
Assets:
|
||||||||||||||||||||||||
|
Investments:
|
||||||||||||||||||||||||
|
Taxable
(1)
|
$ | 325,379 | $ | 2,511 | 3.09 | % | $ | 179,304 | $ | 2,139 | 4.77 | % | ||||||||||||
|
Tax-Exempt
(1) (2)
|
37,800 | 450 | 4.76 | 49,976 | 653 | 5.24 | ||||||||||||||||||
|
Loans
(2) (3)
|
978,470 | 12,994 | 5.31 | 1,047,911 | 14,258 | 5.44 | ||||||||||||||||||
|
Federal
Funds Sold
|
201 | - | 0.20 | 200 | - | 0.20 | ||||||||||||||||||
|
Interest-Earning
Deposits
|
44,591 | 24 | 0.21 | 28,054 | 9 | 0.13 | ||||||||||||||||||
|
Total
Interest-Earning
|
||||||||||||||||||||||||
|
Assets
|
1,386,441 | $ | 15,979 | 4.61 | % | 1,305,445 | $ | 17,059 | 5.23 | % | ||||||||||||||
|
Noninterest-Earning
Assets:
|
||||||||||||||||||||||||
|
Cash
and Due from Banks
|
8,334 | 19,697 | ||||||||||||||||||||||
|
Allowance
for Loan
|
||||||||||||||||||||||||
|
Losses
|
(13,773 | ) | (9,612 | ) | ||||||||||||||||||||
|
Premises
and Equipment
|
27,992 | 26,854 | ||||||||||||||||||||||
|
Other
Assets
|
68,845 | 54,654 | ||||||||||||||||||||||
|
Total
Noninterest-Earning
|
||||||||||||||||||||||||
|
Assets
|
91,398 | 91,593 | ||||||||||||||||||||||
|
Total
Assets
|
$ | 1,477,839 | $ | 1,397,038 | ||||||||||||||||||||
|
LIABILITIES:
|
||||||||||||||||||||||||
|
Interest-Bearing
Deposits
|
||||||||||||||||||||||||
|
Checking
|
$ | 238,285 | $ | 407 | 0.68 | % | $ | 168,041 | $ | 297 | 0.71 | % | ||||||||||||
|
Money
Markets
|
494,670 | 1,118 | 0.90 | 381,532 | 1,171 | 1.23 | ||||||||||||||||||
|
Savings
|
75,186 | 77 | 0.41 | 68,087 | 78 | 0.46 | ||||||||||||||||||
|
Certificates
of Deposit
|
305,654 | 1,317 | 1.72 | 427,011 | 3,090 | 2.89 | ||||||||||||||||||
|
Total
Interest-Bearing
|
||||||||||||||||||||||||
|
Deposits
|
1,113,795 | 2,919 | 1.05 | 1,044,671 | 4,636 | 1.78 | ||||||||||||||||||
|
Borrowings
|
36,290 | 324 | 3.57 | 41,646 | 351 | 3.37 | ||||||||||||||||||
|
Total
Interest-Bearing
|
||||||||||||||||||||||||
|
Liabilities
|
1,150,085 | 3,243 | 1.13 | 1,086,317 | 4,987 | 1.84 | ||||||||||||||||||
|
Noninterest
Bearing
|
||||||||||||||||||||||||
|
Liabilities
|
||||||||||||||||||||||||
|
Demand
Deposits
|
208,044 | 192,166 | ||||||||||||||||||||||
|
Accrued
Expenses and
|
||||||||||||||||||||||||
|
Other
Liabilities
|
6,087 | 6,729 | ||||||||||||||||||||||
|
Total
Noninterest-Bearing
|
||||||||||||||||||||||||
|
Liabilities
|
214,131 | 198,895 | ||||||||||||||||||||||
|
Shareholders’
Equity
|
113,623 | 111,826 | ||||||||||||||||||||||
|
Total
Liabilities and
|
||||||||||||||||||||||||
|
Shareholders’
Equity
|
$ | 1,477,839 | $ | 1,397,038 | ||||||||||||||||||||
|
Net
Interest Income
|
$ | 12,736 | $ | 12,072 | ||||||||||||||||||||
|
Net
Interest Spread
|
3.48 | % | 3.39 | % | ||||||||||||||||||||
|
Net
Interest Margin (4)
|
3.67 | % | 3.70 | % | ||||||||||||||||||||
PEAPACK-GLADSTONE
FINANCIAL CORPORATION
AVERAGE
BALANCE SHEET
UNAUDITED
THREE
MONTHS ENDED
(Tax-Equivalent
Basis, Dollars in Thousands)
|
March
31, 2010
|
December
31, 2009
|
|||||||||||||||||||||||
|
Average
|
Income/
|
Average
|
Income/
|
|||||||||||||||||||||
|
Balance
|
Expense
|
Yield
|
Balance
|
Expense
|
Yield
|
|||||||||||||||||||
|
ASSETS:
|
||||||||||||||||||||||||
|
Interest-Earning
Assets:
|
||||||||||||||||||||||||
|
Investments:
|
||||||||||||||||||||||||
|
Taxable
(1)
|
$ | 325,379 | $ | 2,511 | 3.09 | % | $ | 304,301 | $ | 2,506 | 3.29 | % | ||||||||||||
|
Tax-Exempt
(1) (2)
|
37,800 | 450 | 4.76 | 47,749 | 578 | 4.83 | ||||||||||||||||||
|
Loans
(2) (3)
|
978,470 | 12,994 | 5.31 | 996,601 | 13,232 | 5.31 | ||||||||||||||||||
|
Federal
Funds Sold
|
201 | - | 0.20 | 201 | - | 0.20 | ||||||||||||||||||
|
Interest-Earning
Deposits
|
44,591 | 24 | 0.21 | 90,663 | 47 | 0.21 | ||||||||||||||||||
|
Total
Interest-Earning
|
||||||||||||||||||||||||
|
Assets
|
1,386,441 | $ | 15,979 | 4.61 | % | 1,439,515 | $ | 16,363 | 4.55 | % | ||||||||||||||
|
Noninterest-Earning
Assets:
|
||||||||||||||||||||||||
|
Cash
and Due from Banks
|
8,334 | 9,493 | ||||||||||||||||||||||
|
Allowance
for Loan
|
||||||||||||||||||||||||
|
Losses
|
(13,773 | ) | (12,872 | ) | ||||||||||||||||||||
|
Premises
and Equipment
|
27,992 | 27,981 | ||||||||||||||||||||||
|
Other
Assets
|
68,845 | 61,689 | ||||||||||||||||||||||
|
Total
Noninterest-Earning
|
||||||||||||||||||||||||
|
Assets
|
91,398 | 86,291 | ||||||||||||||||||||||
|
Total
Assets
|
$ | 1,477,839 | $ | 1,525,806 | ||||||||||||||||||||
|
LIABILITIES:
|
||||||||||||||||||||||||
|
Interest-Bearing
Deposits
|
||||||||||||||||||||||||
|
Checking
|
$ | 238,285 | $ | 407 | 0.68 | % | $ | 226,851 | $ | 426 | 0.75 | % | ||||||||||||
|
Money
Markets
|
494,670 | 1,118 | 0.90 | 469,635 | 1,103 | 0.94 | ||||||||||||||||||
|
Savings
|
75,186 | 77 | 0.41 | 72,326 | 76 | 0.42 | ||||||||||||||||||
|
Certificates
of Deposit
|
305,654 | 1,317 | 1.72 | 381,984 | 2,062 | 2.16 | ||||||||||||||||||
|
Total
Interest-Bearing
|
||||||||||||||||||||||||
|
Deposits
|
1,113,795 | 2,919 | 1.05 | 1,150,796 | 3,667 | 1.27 | ||||||||||||||||||
|
Borrowings
|
36,290 | 324 | 3.57 | 36,605 | 333 | 3.64 | ||||||||||||||||||
|
Total
Interest-Bearing
|
||||||||||||||||||||||||
|
Liabilities
|
1,150,085 | 3,243 | 1.13 | 1,187,401 | 4,000 | 1.35 | ||||||||||||||||||
|
Noninterest
Bearing
|
||||||||||||||||||||||||
|
Liabilities
|
||||||||||||||||||||||||
|
Demand
Deposits
|
208,044 | 209,458 | ||||||||||||||||||||||
|
Accrued
Expenses and
|
||||||||||||||||||||||||
|
Other
Liabilities
|
6,087 | 8,676 | ||||||||||||||||||||||
|
Total
Noninterest-Bearing
|
||||||||||||||||||||||||
|
Liabilities
|
214,131 | 218,134 | ||||||||||||||||||||||
|
Shareholders’
Equity
|
113,623 | 120,271 | ||||||||||||||||||||||
|
Total
Liabilities and
|
||||||||||||||||||||||||
|
Shareholders’
Equity
|
$ | 1,477,839 | $ | 1,525,806 | ||||||||||||||||||||
|
Net
Interest Income
|
$ | 12,736 | $ | 12,363 | ||||||||||||||||||||
|
Net
Interest Spread
|
3.48 | % | 3.20 | % | ||||||||||||||||||||
|
Net
Interest Margin (4)
|
3.67 | % | 3.44 | % | ||||||||||||||||||||
|
(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.
|