BEDMINSTER, NJ--(Marketwire -07/30/12)- For the quarter ended June 30, 2012, Peapack-Gladstone Financial Corporation (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
---------------------------------------------------
March December September
June 30, 31, 31, 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 Income/ Average Income/
Balance Expense Yield Balance 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 Income/ Average Income/
Balance Expense Yield Balance 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 Income/ Average Income/
Balance Expense Yield Balance 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.
Jeffrey J. Carfora
EVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-719-4308
