PEAPACK GLADSTONE FINANCIAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
8-K - FORM 8K - PEAPACK GLADSTONE FINANCIAL CORP	form8k-112046_pgfc.htm

Contact:

Jeffrey J. Carfora, EVP and CFO

Peapack-Gladstone Financial Corporation

T: 908-719-4308

PEAPACK-GLADSTONE FINANCIAL CORPORATION

REPORTS FOURTH QUARTER RESULTS OF OPERATIONS

BEDMINSTER, N.J.—(BUSINESS WIRE)—February 1, 2011 – Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market:PGC) (the Corporation) recorded net income of $1.9 million and diluted earnings per share of $0.18 for the quarter ended December 31, 2010. This compared to diluted earnings per share of $0.18 for the quarter ended September 30, 2010, and diluted earnings per share of $0.11 for the quarter ended December 31, 2009.

For the year ended December 31, 2010, the Corporation recorded net income of $7.7 million and diluted earnings per share of $0.68, reflecting an increase when compared to $7.1 million and $0.64 for the 2009 year.

When compared to the quarter ended December 31, 2009, the December 2010 quarter included increased net interest income, increased income from the PGB Trust and Investment business and increased other income.

Frank A. Kissel, Chairman and CEO, stated, “We are pleased to have shown earnings growth for this quarter and for the year. As I have noted in the past, building capital internally to redeem the Treasury’s Capital Purchase Program investment over time continues to be an important business objective of the Corporation.”

The Corporation’s provision for loan losses for the quarter ended December 31, 2010, was $2.9 million, just slightly below the $3.0 million provision recorded in the December 2009 quarter, but above the $2.0 million provision recorded in the September 2010 quarter. Mr. Kissel noted that progress continues in resolving problem assets. During the fourth quarter of 2010, $2.5 million of problem loans were paid off. During January 2011 an additional $2.4 million of problem loans were paid off. Further, there are two properties totaling $4.0 million in other real estate owned and both are under contract for sale.

Net Interest Income and Margin

Net interest income, on a fully tax-equivalent basis, was $12.6 million for the fourth quarter of 2010, up from $12.4 million for the same quarter in 2009.

On a fully tax-equivalent basis, the net interest margin was 3.62 percent for the December 2010 quarter compared to 3.44 percent for the December 2009 quarter. In comparing the December 2010 quarter to the same quarter last year, the growth of lower cost core deposits, the allowed run-off of higher cost certificates of deposit and the maturity of higher cost FHLB advances all contributed to the improved margin. This effect was partially offset by the effect of growth in lower yielding investment securities coupled with declining loan balances.

Mr. Kissel stated, “Given our shorter duration investment portfolio, we believe our balance sheet is positioned well for the future, when we expect loan demand will increase and interest rates will rise.”

Loans

Average loans totaled $942.5 million for the fourth quarter of 2010 as compared to $996.6 million for the same 2009 quarter, reflecting a decrease of $54.1 million or 5.4 percent.

The average residential mortgage loan portfolio declined $32.8 million or 7.1 percent to $428.4 million in the fourth quarter of 2010 from the same quarter of 2009 and is attributable to loan paydowns that have outpaced the originations retained in portfolio. The Corporation sells the majority 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. Total mortgage loan originations were $57.5 million for the fourth quarter of 2010, of which $29.7 million were sold, as compared to $34.8 for the fourth quarter of 2009, of which $16.1 million were sold. Total mortgage loan originations reflect an increase of $22.7 million or 65.3 percent, in comparing the 2010 quarter to the 2009 quarter.

The average commercial mortgage and commercial loan portfolio increased $5.9 million or 1.5 percent from the fourth quarter of 2009 to $409.2 million for the same quarter in 2010. The average commercial construction loan portfolio declined $29.8 million or 44.8 percent from the fourth quarter of 2009 to the fourth quarter of 2010, as the Bank has significantly decreased its exposure to construction lending. Mr. Kissel commented, “Loan demand from quality borrowers on the commercial front was generally scarce through the first nine months of 2010. However, over the last few months we have seen commercial loan demand from quality borrowers increase. The commercial loan pipeline stands at $42.0 million at December 31, 2010.”

The average home equity line portfolio rose $7.1 million or 18.3 percent to $45.8 million for the fourth 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.

Mr. Kissel continued, “We have the liquidity and capital to lend to qualified individuals and businesses; however, in doing so, we will remain committed to our conservative underwriting standards.”

Deposits

Average total deposits (interest-bearing and noninterest-bearing) decreased $18.9 million, or 1.4 percent, from $1.36 billion in the fourth quarter of 2009 to $1.34 billion in the fourth quarter of 2010. Average certificates of deposit declined from $382.0 million in the December 2009 quarter to $234.1 million in the December 2010 quarter, a decline of $147.9 million or 38.7 percent. The Corporation allowed higher cost certificates of deposit to run-off and replaced those funds with lower cost, more stable core deposits.

Average noninterest-bearing checking balances grew $15.8 million or 7.5 percent to $225.2 million in the fourth quarter of 2010 from the fourth quarter of 2009. Average interest-bearing checking balances totaled $283.4 million in the fourth quarter of 2010, rising $56.5 million or 24.9 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 $469.6 million in the fourth quarter of 2009 to $520.0 million for the same quarter of 2010, an increase of $50.4 million or 10.7 percent. The Corporation’s reduction in certificate of deposit balances and its 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.

Mr. Kissel commented, “Our reduced reliance on higher cost certificates of deposit, coupled with our growth in core deposits has reduced our cost of funds, and enhanced our franchise value.”

PGB Trust and Investments

PGB Trust and Investments generated $2.6 million in fee income in the fourth quarter of 2010, compared to $2.3 million in the same quarter of 2009. The market value of the assets under administration of the Trust Division increased from $1.86 billion at December 31, 2009 to $1.94 billion at December 31, 2010.

Craig C. Spengeman, President of PGB Trust & Investments commented, “We are pleased with the recovery and performance of our assets under administration. We continue to see increases in our managed asset business and related recurring fee income. We also continue to add new clients, as individuals continue to seek our professional advice. Our performance reflects the sound financial management of our trust and investment professionals.”

Other Income

Other income totaled $1.6 million in the December 2010 quarter compared to $1.1 million in the December 2009 quarter. Fee income earned on the sale of mortgage loans at origination increased, as there were greater mortgage originations in the December 2010 quarter and mortgages were sold at greater targeted premiums than in the December 2009 quarter.

During the fourth quarter of 2010, the Corporation recorded $396 thousand (net of tax) of impairment charges related to several of its pooled trust preferred securities. This writedown was due to a decline in the expected future cash flows, based on discounted cash flow modeling specific to each security.

Operating Expenses

The Corporation’s total operating expenses were $10.7 million in the December 2010 quarter compared to $10.6 million in the December 2009 quarter. The 2010 quarter included increased expenses associated with a new corporate headquarters occupied in June 2010 and increased problem loan expenses, partially offset by decreased FDIC insurance expense.

ASSET QUALITY

At December 31, 2010, nonperforming loans increased slightly to $18.8 million or 2.01 percent of total loans as compared to $18.0 million or 1.90 percent of total loans at September 30, 2010. Other real estate owned totaled $4.0 million as of December 31, 2010 compared to $1.0 million as of September 30, 2010. As noted earlier, during January 2011 $2.4 million of problem loans were paid off. Further, there are two properties totaling $4.0 million in other real estate owned and both are under contract for sale.

The allowance for loan losses was $14.3 million or 1.53 percent of total loans at December 31, 2010 as compared to $14.0 million or 1.49 percent of total loans at September 30, 2010 and $13.2 million or 1.34 percent of total loans at December 31, 2009.

CAPITAL

At December 31, 2010, the Corporation’s leverage ratio, tier 1 and total risk based capital ratios were 7.96 percent, 12.91 percent and 14.16 percent, respectively. All ratios reflect the $7.2 million reduction in regulatory capital due to the partial redemption in January 2010 of the preferred shares previously issued under the Treasury’s Capital Purchase Program. The Corporation’s ratios are all above the levels necessary to be considered well capitalized under applicable regulatory guidelines. Additionally, the Corporation’s common equity ratio (common equity to total assets) at December 31, 2010 is 6.44 percent compared to 6.09 percent at December 31, 2009.

As previously announced, on January 20, 2011, the Board of Directors declared a regular cash dividend of $0.05 per share payable on February 17, 2011 to shareholders of record on February 3, 2011.

ABOUT THE CORPORATION

Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.51 billion as of December 31, 2010. 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 new 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 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

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;

higher than expected FDIC insurance premiums;

lack of liquidity to fund our various cash obligations;

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;

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, 2009 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.

(Tables to Follow)

PEAPACK-GLADSTONE FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

	As of
	December 31,		September 30,		June 30,		March 31,		December 31,
	2010		2010		2010		2010		2009

ASSETS
Cash and due from banks	$	6,490	$	9,935	$	10,735	$	8,999	$	7,864
Federal funds sold		100		100		201		201		201
Interest-earning deposits		56,097		84,566		59,356		33,915		71,907
Total cash and cash equivalents		62,687		94,601		70,292		43,115		79,972

Securities held to maturity		140,277		102,032		101,603		105,258		89,459
Securities available for sale		275,076		246,334		252,646		278,052		272,484
FHLB and FRB Stock, at cost		4,624		4,623		4,807		5,305		5,315

Residential mortgage		419,653		425,315		430,021		443,085		452,641
Commercial mortgage		288,183		280,486		280,513		281,323		279,595
Commercial loans		131,408		128,220		133,881		133,288		120,554
Construction loans		25,367		39,989		46,286		48,044		64,816
Consumer loans		20,622		22,410		23,811		24,936		25,638
Home equity lines of credit		45,775		45,345		41,956		39,487		38,728
Other loans		1,489		2,626		2,788		902		1,565
Total loans		932,497		944,391		959,256		971,065		983,537
Less: Allowance for loan losses		14,282		14,025		13,856		13,720		13,192
Net loans		918,215		930,366		945,400		957,345		970,345

Premises and equipment		33,820		33,901		34,626		27,942		27,911
Other real estate owned		4,000		1,000		210		40		360
Accrued interest receivable		4,231		4,594		4,533		5,112		4,444
Bank owned life insurance		27,074		26,877		26,672		26,473		26,292
Deferred tax assets, net		26,083		23,903		23,438		23,999		23,522
Other assets		9,338		12,030		13,036		10,670		12,249
TOTAL ASSETS	$	1,505,425	$	1,480,261	$	1,477,263	$	1,483,311	$	1,512,353

LIABILITIES
Deposits:
Noninterest bearing
demand deposits	$	228,764	$	219,700	$	216,314	$	223,184	$	216,127
Interest-bearing deposits
Checking		290,322		255,665		249,472		241,887		255,058
Savings		80,799		78,819		76,937		77,064		73,866
Money market accounts		524,449		525,264		503,829		502,548		458,303
CD’s $100,000 and over		79,311		85,703		101,034		109,347		147,138
CD’s less than $100,000		147,901		155,268		163,769		173,219		199,177
Total deposits		1,351,546		1,320,419		1,311,355		1,327,249		1,349,669
Borrowings		24,126		24,234		28,342		36,140		36,499
Capital lease obligation		6,304		6,226		6,148		-		-
Other liabilities		5,733		11,903		15,435		5,998		6,676
TOTAL LIABILITIES		1,387,709		1,362,782		1,361,280		1,369,387		1,392,844
Shareholders’ Equity		117,716		117,479		115,983		113,924		119,509
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY	$	1,505,425	$	1,480,261	$	1,477,263	$	1,483,311	$	1,512,353

Trust division assets under
administration (market value,
not included above)	$	1,940,404	$	1,929,565	$	1,830,944	$	1,894,971	$	1,856,229

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in thousands)

(Unaudited)

	As of
	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009

Asset Quality:
Loans past due over 90 days
and still accruing	$	666		$	442		$	736		$	638		$	496
Nonaccrual loans		18,114			17,535			20,361			12,200			11,256
Other real estate owned		4,000	*		1,000			210			40			360
Total nonperforming assets	$	22,780		$	18,977		$	21,307		$	12,878		$	12,112


Nonperforming loans to
total loans		2.01	%		1.90	%		2.20	%		1.32	%		1.19	%
Nonperforming assets to
total assets		1.51	%		1.28	%		1.44	%		0.87	%		0.80	%

Troubled debt restructured loans	$	12,832		$	10,639		$	10,613		$	11,817		$	11,123

Loans past due 30 through 89
days and still accruing	$	5,475		$	9,487		$	9,444		$	10,056		$	6,015

Allowance for loan losses:
Beginning of period	$	14,025		$	13,856		$	13,720		$	13,192		$	12,947
Provision for loan losses		2,850			2,000			2,750			2,400			2,950
Charge-offs, net		(2,593	)		(1,831	)		(2,614	)		(1,872	)		(2,705	)
End of period	$	14,282		$	14,025		$	13,856		$	13,720		$	13,192

ALLL to nonperforming loans		76.05	%		78.02	%		65.68	%		106.87	%		112.25	%
ALLL to total loans		1.53	%		1.49	%		1.44	%		1.41	%		1.34	%


Capital Adequacy:
Tier I leverage
(5% minimum to be
considered well
capitalized)		7.96	%		8.00	%		7.85	%		7.80	%		7.93	%
Tier I capital to risk-
weighted assets
(6% minimum to be
considered well
capitalized)		12.91	%		12.62	%		12.28	%		12.01	%		12.45	%
Tier I & II capital to
risk-weighted assets
(10% minimum to be
considered well
capitalized)		14.16	%		13.88	%		13.53	%		13.27	%		13.71	%

Common equity to
Total assets		6.44	%		6.54	%		6.45	%		6.29	%		6.09	%

Book value per
Common share	$	11.03		$	11.01		$	10.85		$	10.70		$	10.57

*Other real estate owned includes two properties, both of which are under contract.

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except share data)

(Unaudited)

	For The Three Months Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2010			2010			2010			2010			2009
Income Statement Data:
Interest income	$	14,707		$	14,974		$	15,450		$	15,791		$	16,123
Interest expense		2,214			2,612			2,963			3,243			4,000
Net interest income		12,493			12,362			12,487			12,548			12,123
Provision for loan losses		2,850			2,000			2,750			2,400			2,950
Net interest income after
provision for loan losses		9,643			10,362			9,737			10,148			9,173
Trust fees		2,598			2,254			2,686			2,364			2,346
Other income		1,621			1,203			1,098			1,108			1,067
Securities gains/(losses), net		(4	)		126			2			-			(42	)
Other-than-temporary impairment
charge, equity securities		(581	)		(360	)		-			-			-
Salaries and employee benefits		5,469			5,647			5,704			5,709			5,291
Premises and equipment		2,248			2,416			2,588			2,372			2,358
FDIC insurance expense		598			586			552			586			834
Other expenses		2,374			2,237			2,161			1,863			2,124
Income before income taxes		2,588			2,699			2,518			3,090			1,937
Income tax expense		711			793			762			965			536
Net income		1,877			1,906			1,756			2,125			1,401
Dividends and accretion
on preferred stock		326			326			324			710			430
Net income available to
Common shareholders	$	1,551		$	1,580		$	1,432		$	1,415		$	971

Per Common Share Data:
Earnings per share (basic)	$	0.18		$	0.18		$	0.16		$	0.16		$	0.11
Earnings per share (diluted)		0.18			0.18			0.16			0.16			0.11


Performance Ratios:
Return on Average Assets		0.50	%		0.52	%		0.47	%		0.58	%		0.37	%
Return on Average Common
Equity		6.34	%		6.55	%		6.06	%		6.10	%		4.18	%

Net Interest Margin
(Taxable Equivalent Basis)		3.62	%		3.64	%		3.64	%		3.67	%		3.44	%

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except share data)

(Unaudited)

	For The
	Twelve Months Ended
	December 31,
	2010			2009
Income Statement Data:
Interest income	$	60,922		$	66,007
Interest expense		11,032			17,659
Net interest income		49,890			48,348
Provision for loan losses		10,000			9,700
Net interest income after
provision for loan losses		39,890			38,648
Trust fees		9,901			9,428
Other income		5,031			4,301
Securities gains, net		124			69
Other-than-temporary impairment
charge, equity securities		(941	)		-
Salaries and employee benefits		22,529			21,877
Premises and equipment		9,624			8,803
FDIC insurance expense		2,322			3,309
Other expenses		8,635			8,277
Income before income taxes		10,895			10,180
Income tax expense		3,231			3,054
Net income		7,664			7,126
Dividends and accretion
on preferred stock		1,686			1,493
Net income available to
Common shareholders	$	5,978		$	5,633

Per Common Share Data:
Earnings per share (basic)	$	0.68		$	0.64
Earnings per share (diluted)		0.68			0.64


Performance Ratios:
Return on Average Assets		0.52	%		0.49	%
Return on Average Common
Equity		6.26	%		6.26	%

Net Interest Margin
(Taxable Equivalent Basis)		3.64	%		3.58	%

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

	December 31, 2010								December 31, 2009
	Average			Income/					Average			Income/
	Balance			Expense		Yield			Balance			Expense		Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1)	$	356,763		$	2,170		2.43	%	$	304,301		$	2,506		3.29	%
Tax-Exempt (1) (2)		34,547			354		4.10			47,749			578		4.83
Loans (2) (3)		942,542			12,287		5.21			996,601			13,232		5.31
Federal Funds Sold		100			1		0.35			201			-		0.20
Interest-Earning Deposits		64,020			47		0.29			90,663			47		0.21
Total Interest-Earning
Assets		1,397,972		$	14,859		4.25	%		1,439,515		$	16,363		4.55	%
Noninterest-Earning Assets:
Cash and Due from Banks		9,138								9,493
Allowance for Loan
Losses		(14,245	)							(12,872	)
Premises and Equipment		33,952								27,981
Other Assets		70,506								61,689
Total Noninterest-Earning
Assets		99,351								86,291
Total Assets	$	1,497,323							$	1,525,806

LIABILITIES:
Interest-Bearing Deposits
Checking	$	283,355		$	352		0.50	%	$	226,851		$	426		0.75	%
Money Markets		519,991			642		0.49			469,635			1,103		0.94
Savings		78,706			54		0.27			72,326			76		0.42
Certificates of Deposit		234,079			880		1.50			381,984			2,062		2.16
Total Interest-Bearing
Deposits		1,116,131			1,928		0.69			1,150,796			3,667		1.27
Borrowings		24,162			208		3.44			36,605			333		3.64
Capital Lease Obligation		6,255			78		4.98			-			-		-
Total Interest-Bearing
Liabilities		1,146,548			2,214		0.77			1,187,401			4,000		1.35
Noninterest Bearing
Liabilities
Demand Deposits		225,228								209,458
Accrued Expenses and
Other Liabilities		6,944								8,676
Total Noninterest-Bearing
Liabilities		232,172								218,134
Shareholders’ Equity		118,603								120,271
Total Liabilities and
Shareholders’ Equity	$	1,497,323							$	1,525,806
Net Interest Income				$	12,645							$	12,363
Net Interest Spread							3.48	%							3.20	%
Net Interest Margin (4)							3.62	%							3.44	%

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

	December 31, 2010								September 30, 2010
	Average			Income/					Average			Income/
	Balance			Expense		Yield			Balance			Expense		Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1)	$	356,763		$	2,170		2.43	%	$	314,213		$	2,230		2.84	%
Tax-Exempt (1) (2)		34,547			354		4.10			32,545			384		4.72
Loans (2) (3)		942,542			12,287		5.21			949,301			12,473		5.26
Federal Funds Sold		100			1		0.35			193			-		0.22
Interest-Earning Deposits		64,020			47		0.29			78,501			50		0.26
Total Interest-Earning
Assets		1,397,972		$	14,859		4.25	%		1,374,753		$	15,137		4.40	%
Noninterest-Earning Assets:
Cash and Due from Banks		9,138								8,314
Allowance for Loan
Losses		(14,245	)							(14,180	)
Premises and Equipment		33,952								34,589
Other Assets		70,506								70,056
Total Noninterest-Earning
Assets		99,351								98,779
Total Assets	$	1,497,323							$	1,473,532

LIABILITIES:
Interest-Bearing Deposits
Checking	$	283,355		$	352		0.50	%	$	259,816		$	409		0.63	%
Money Markets		519,991			642		0.49			515,734			839		0.65
Savings		78,706			54		0.27			78,058			78		0.40
Certificates of Deposit		234,079			880		1.50			251,511			986		1.57
Total Interest-Bearing
Deposits		1,116,131			1,928		0.69			1,105,119			2,312		0.84
Borrowings		24,162			208		3.44			25,532			223		3.51
Capital Lease Obligation		6,255			78		4.98			6,177			77		4.98
Total Interest-Bearing
Liabilities		1,146,548			2,214		0.77			1,136,828			2,612		0.92
Noninterest Bearing
Liabilities
Demand Deposits		225,228								211,390
Accrued Expenses and
Other Liabilities		6,944								8,216
Total Noninterest-Bearing
Liabilities		232,172								219,606
Shareholders’ Equity		118,603								117,098
Total Liabilities and
Shareholders’ Equity	$	1,497,323							$	1,473,532
Net Interest Income				$	12,645							$	12,525
Net Interest Spread							3.48	%							3.48	%
Net Interest Margin (4)							3.62	%							3.64	%

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

TWELVE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

	December 31, 2010								December 31, 2009
	Average			Income/					Average			Income/
	Balance			Expense		Yield			Balance			Expense		Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1)	$	329,605		$	9,315		2.83	%	$	247,500		$	9,395		3.80	%
Tax-Exempt (1) (2)		34,985			1,607		4.59			49,652			2,474		4.98
Loans (2) (3)		958,472			50,529		5.27			1,021,457			55,059		5.39
Federal Funds Sold		174			1		0.23			201			-		0.20
Interest-Earning Deposits		64,182			149		0.23			58,364			90		0.15
Total Interest-Earning
Assets		1,387,418		$	61,601		4.44	%		1,377,174		$	67,018		4.87	%
Noninterest-Earning Assets:
Cash and Due from Banks		8,567								7,958
Allowance for Loan
Losses		(14,070	)							(10,879	)
Premises and Equipment		31,826								27,361
Other Assets		69,309								57,802
Total Noninterest-Earning
Assets		95,632								82,242
Total Assets	$	1,483,050							$	1,459,416

LIABILITIES:
Interest-Bearing Deposits
Checking	$	258,995		$	1,586		0.61	%	$	201,399		$	1,476		0.73	%
Money Markets		510,331			3,619		0.71			428,063			4,510		1.05
Savings		77,023			289		0.38			70,850			320		0.45
Certificates of Deposit		266,134			4,286		1.61			397,329			9,985		2.51
Total Interest-Bearing
Deposits		1,112,483			9,780		0.88			1,097,641			16,291		1.48
Borrowings		29,552			1,046		3.54			38,507			1,368		3.55
Capital Lease Obligation		3,637			206		5.64			-			-		-
Total Interest-Bearing
Liabilities		1,145,672			11,032		0.96			1,136,148			17,659		1.55
Noninterest Bearing
Liabilities
Demand Deposits		214,753								199,543
Accrued Expenses and
Other Liabilities		6,490								7,144
Total Noninterest-Bearing
Liabilities		221,243								206,687
Shareholders’ Equity		116,135								116,581
Total Liabilities and
Shareholders’ Equity	$	1,483,050							$	1,459,416
Net Interest Income				$	50,569							$	49,359
Net Interest Spread							3.48	%							3.32	%
Net Interest Margin (4)							3.64	%							3.58	%

(1)	Average balances for available-for sale securities are based on amortized cost.
(2)	Interest income is presented on a tax-equivalent basis using a 35 percent federal tax rate.
(3)	Loans are stated net of unearned income and include nonaccrual loans.
(4)	Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

PEAPACK GLADSTONE FINANCIAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - February 2, 2011

Attached files

PEAPACK GLADSTONE FINANCIAL CORP Reports