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

Marketwired

BEDMINSTER, NJ--(Marketwire - Nov 1, 2012) - For the quarter ended September 30, 2012, Peapack-Gladstone Financial Corporation (NASDAQ: PGC) (the Company) recorded net income available to common shareholders of $2.83 million and diluted earnings per share (EPS) of $0.32. For the nine months ended September 30, 2012, the Company recorded net income available to common shareholders of $8.16 million and diluted earnings per share of $0.93.

Frank A. Kissel, Chairman stated, "This was another solid quarter for us and it reflects the strength and positive momentum of the Company. We are in a great position as Doug Kennedy takes the reins as CEO. I am confident that Doug's leadership will further energize the Company as we continue on the offensive to grow the business."

Income taxes for the 2011 quarter and nine months ended September 30 included a one-time state tax benefit of $2.99 million, or $0.34 per diluted share, related to the reversal of a previously recorded valuation allowance.

For comparative purposes, the Company believes that comparing earnings excluding the one-time state tax benefit provides a better analysis of earnings trends. The information discussed in the next two paragraphs is a non-GAAP measure.

As detailed in the financial table on page 14, net income available to common shareholders and diluted earnings per share for the quarter ended September 30, 2011, excluding the one-time state tax benefit, was $2.13 million and $0.24. When the 2012 quarter is compared to the 2011 quarter, the 2012 quarter reflects increases of $707 thousand or 33 percent in net income available to common shareholders and 8 cents, also 33 percent, in diluted earnings per share.

Net income and diluted earnings per share for the nine months ended September 30, 2011, excluding the one-time state tax benefit, was $5.65 million and $0.64. When the 2012 nine month period is compared to the 2011 nine month period, the 2012 period reflects increases of $2.52 million or 45 percent in net income available to common shareholders and $0.29 cents, also 45 percent, in diluted earnings per share.

Net Interest Income and Margin
Net interest income, on a fully tax-equivalent basis, was $13.00 million for the third quarter of 2012, up from $12.06 million for the same quarter last year.

On a fully tax-equivalent basis, the net interest margin was 3.50 percent for the September 2012 quarter compared to 3.37 percent for the September 2011 quarter.

In comparing the September 2012 quarter to the September 2011 quarter, the positive effect of increased loans, funded by reduced lower yielding investment securities and increased lower cost core deposits, 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 third quarter of 2012 as compared to $964 million for the same 2011 quarter, an increase of $134 million.

The average residential mortgage loan portfolio for the third quarter of 2012 increased $87 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. All of the shorter duration loan production and select longer duration production has been retained in portfolio. However, the Company does sell much of its longer duration, 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 third quarter of 2012 increased $53 million from the third 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.

From December 31, 2011 to September 30, 2012, total loans grew $58 million or 7.5% annualized. Total loan originations were $281 million for the first nine months of 2012, up from $206 million for the same nine month period of 2011. Included in the total were commercial mortgage/commercial loan originations of $95 million for the 2012 nine month period, up from $76 million for the 2011 nine month period. 

Douglas L. Kennedy, CEO said, "I am pleased to have joined a Company that has been so successful in generating new solid lending opportunities. I look forward to continuing to grow our loan book as we move into 2013."

As of September 30, 2012, the residential first mortgage loan pipeline (loans approved, but not closed and funded) stood at $49 million and the commercial mortgage/commercial loan pipeline stood at a record $81 million, with many other lending opportunities in the discussion stage.

Deposits
Average total deposits (interest-bearing and noninterest-bearing) increased $57 million for the September 2012 quarter from the same quarter last year.

Average noninterest-bearing checking balances grew $59 million for the third quarter of 2012 when compared to the third quarter of 2011. Average interest-bearing checking balances for the quarter ended September 30, 2012 grew $14 million from the same quarter in 2011. Average savings accounts increased $16 million from the third quarter of 2011 to the third quarter of 2012.

Overall checking and savings growth continues to be attributable to the Company's relationship orientation. The Company 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 $15 million for the September 2012 quarter from the September 2011 quarter. These higher-cost CDs were replaced with lower cost, more stable core deposits.

From December 31, 2011 to September 30, 2012, total deposits declined slightly, as various municipalities utilized funds in 2012 that were held on deposit at year end. 

Mr. Kennedy commented, "This is a strong and valuable deposit franchise, as evidenced by our high level of lower-cost, more stable core deposits. Additionally, I see lots of opportunities in our core markets."

PGB Trust & Investments
PGB Trust & Investments generated $2.92 million in fee income in the third quarter of 2012 compared to $2.56 million for the third quarter of 2011, reflecting 14 percent growth. The market value of the assets under administration of the wealth management division stood at $2.15 billion at September 30, 2012, up from $1.96 billion reported at December 31, 2011 and up from $1.86 billion reported at September 30, 2011.

Mr. Kennedy noted, "The Wealth Management business adds significant value to the Company. I look forward to our Company continuing to grow and provide personalized service to this valued client base."

Other Noninterest Income
Other noninterest income, exclusive of Trust fees, totaled $1.64 million in the September 2012 quarter compared to $1.42 million in the same quarter a year ago, reflecting an increase of $223 thousand. The 2012 quarter included $358 thousand of fee income from sale of longer term, fixed rate residential mortgage loans, compared to $115 thousand in the same 2011 quarter. The $243 thousand increase was due to higher residential mortgage loan origination levels, as well as a decision to retain less fixed rate loans in the portfolio. The 2012 quarter also included $22 thousand of gains from sales of other real estate owned. These positives were slightly offset by reduced gains from the strategic sales of securities and reduced service charges, as customers have been more diligent in managing their accounts.

Operating Expenses
The Company's total operating expenses were $11.99 million in the September 2012 quarter compared to $10.57 million in the September 2011 quarter. The 2012 expense levels included: costs for the Company 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; normal salary increases; and increased bonus and profit sharing accruals. Additionally, the valuation of post retirement benefits for non-employee directors contributed approximately $475 thousand to operating expenses this quarter, due to an increase in the estimated future benefit amounts and, to a lesser extent, lower market rates required to be used in discounting such benefits. Also, initial expenses associated with the CEO search contributed approximately $75 thousand to expense levels this quarter. With the CEO search completed in the fourth quarter of 2012, the Company anticipates additional final costs to be recorded in that quarter. The net effect of the additional costs in the third quarter of 2012 were partially offset by various operational efficiencies.

Provision for Loan Losses / Asset Quality
The Company's provision for loan losses for the quarter ended September 30, 2012 was $750 thousand, lower than the $1.50 million provision recorded in the September 2011 quarter.

The Company continues to see improvement in credit metrics, as well as the overall condition of borrowers. Charge-offs, net of recoveries, for the third quarter of 2012 were $543 thousand, compared to $1.7 million for the same quarter of 2011. For the September 2012 quarter, nonperforming loans have declined and loans 30 through 89 days past due have declined significantly. 

At September 30, 2012, nonperforming assets totaled $20.4 million or 1.29 percent of total assets, compared to $26.3 million or 1.65 percent of assets at December 31, 2011 and $26.2 million or 1.66 percent of assets at September 30, 2011. 

Capital / Dividends
As noted in prior quarters, 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 September 30, 2012, including the effect from this redemption, the Company's leverage ratio, tier 1 and total risk based capital ratios were 7.31 percent, 11.51 percent and 12.76 percent, respectively. The Company's ratios are all above the levels necessary to be considered well capitalized under regulatory guidelines applicable to banks. Additionally, the Company's common equity ratio (common equity to total assets) at September 30, 2012 was 7.42 percent of total assets, reflecting growth from 6.81 percent of total assets at December 31, 2011.

As previously announced, on October 18, 2012, the Board of Directors declared a regular cash dividend of $0.05 per share payable on November 16, 2012 to shareholders of record on November 1, 2012.

ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.58 billion as of September 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 wealth management division, PGB Trust & 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.

(Tables to Follow)

PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)
 
    As of
    Sept 30,   June 30,   March 31,   Dec 31,   Sept 30,
    2012   2012   2012   2011   2011
ASSETS                              
Cash and due from banks   $ 5,466   $ 5,639   $ 5,146   $ 7,097   $ 8,135
Federal funds sold     100     100     100     100     100
Interest-earning deposits     49,354     29,024     28,144     35,856     66,424
  Total cash and cash equivalents     54,920     34,763     33,390     43,053     74,659
                               
Securities held to maturity     76,698     84,779     88,667     100,719     121,241
Securities available for sale     253,489     257,318     281,770     319,520     311,927
FHLB and FRB Stock, at cost     4,639     4,818     5,594     4,569     4,699
                               
Loans held for sale, at fair value     8,443     2,259     3,214     2,841     722
                               
Residential mortgage     504,407     526,726     518,111     498,482     438,828
Commercial mortgage     391,976     384,289     358,822     330,559     317,066
Commercial loans     115,602     116,493     119,351     123,845     129,039
Construction loans     9,639     6,804     12,517     13,713     14,893
Consumer loans     21,542     20,885     19,769     19,439     20,345
Home equity lines of credit     51,440     49,057     47,831     50,291     51,458
Other loans     1,876     2,128     1,504     2,016     1,564
  Total loans     1,096,482     1,106,382     1,077,905     1,038,345     973,193
  Less: Allowance for loan losses     13,893     13,686     13,496     13,223     13,843
  Net loans     1,082,589     1,092,696     1,064,409     1,025,122     959,350
                               
Premises and equipment     30,472     30,979     31,482     31,941     32,497
Other real estate owned     3,392     3,073     3,391     7,137     3,264
Accrued interest receivable     4,040     3,447     3,842     4,078     3,788
Bank owned life insurance     30,887     30,688     30,490     27,296     27,767
Deferred tax assets, net     25,861     26,430     26,767     26,731     27,543
Other assets     8,060     7,355     6,524     7,328     7,831
  TOTAL ASSETS   $ 1,583,490   $ 1,578,605   $ 1,579,540   $ 1,600,335   $ 1,575,288
                               
LIABILITIES                              
Deposits:                              
  Noninterest-bearing demand deposits   $ 306,711   $ 304,651   $ 288,130   $ 297,459   $ 254,646
  Interest-bearing deposits                              
    Checking     332,786     323,813     318,239     341,180     337,900
    Savings     103,572     104,631     98,743     92,322     89,527
    Money market accounts     504,863     495,929     512,464     516,920     511,059
    CD's $100,000 and over     72,168     78,268     73,927     71,783     76,100
    CD's less than $100,000     112,586     115,793     120,140     124,228     127,778
  Total deposits     1,432,686     1,423,085     1,411,643     1,443,892     1,397,010
Overnight borrowings     -     -     22,900     -     -
Federal home loan bank advances     12,335     16,451     17,566     17,680     20,793
Capital lease obligation     9,024     9,076     9,127     9,178     6,396
Other Liabilities     11,967     15,758     7,170     6,614     30,406
  TOTAL LIABILITIES     1,466,012     1,464,370     1,468,406     1,477,364     1,454,605
Shareholders' equity     117,478     114,235     111,134     122,971     120,683
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY   $ 1,583,490   $ 1,578,605   $ 1,579,540   $ 1,600,335   $ 1,575,288
                               
Trust division assets under administration (market value, not included above)   $ 2,146,920   $ 2,062,798   $ 2,063,729   $ 1,957,146   $ 1,857,527
   
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION  
SELECTED BALANCE SHEET DATA  
(Dollars in Thousands)  
(Unaudited)  
   
    As of  
    Sept 30,     June 30,     March 31,     Dec 31,     Sept 30,  
    2012     2012     2012     2011     2011  
Asset Quality:                                        
Loans past due over 90 days and still accruing   $ -     $ -     $ -     $ 345     $ 836  
Nonaccrual loans     16,958       19,011       18,598       18,865       22,103  
Other real estate owned     3,392       3,073       3,391       7,137       3,264  
  Total nonperforming assets   $ 20,350     $ 22,084     $ 21,989     $ 26,347     $ 26,203  
                                         
Nonperforming loans to total loans     1.55 %     1.72 %     1.73 %     1.85 %     2.36 %
                                         
Nonperforming assets to total assets     1.29 %     1.40 %     1.39 %     1.65 %     1.66 %
                                         
Accruing TDR's (A)   $ 7,626     $ 7,647     $ 7,842     $ 7,281     $ 5,519  
                                         
Loans past due 30 through 89 days and still accruing   $ 2,244     $ 2,836     $ 7,619     $ 11,632     $ 9,706  
                                         
Classified loans (B)   $ 47,017     $ 47,102     $ 48,546     $ 49,101     $ 52,031  
                                         
Impaired loans (B)   $ 24,584     $ 26,658     $ 26,568     $ 26,212     $ 27,529  
                                         
Allowance for loan losses:                                        
  Beginning of period   $ 13,686     $ 13,496     $ 13,223     $ 13,843     $ 14,056  
  Provision for loan losses     750       1,500       1,500       1,750       1,500  
  Charge-offs, net     (543 )     (1,310 )     (1,227 )     (2,370 )     (1,713 )
  End of period   $ 13,893     $ 13,686     $ 13,496     $ 13,223     $ 13,843  
                                         
ALLL to nonperforming loans     81.93 %     71.99 %     72.57 %     68.83 %     60.35 %
ALLL to total loans     1.27 %     1.24 %     1.25 %     1.27 %     1.42 %
                                         
Capital Adequacy:                                        
Tier I leverage     7.31 %     7.15 %     7.00 %     7.73 %     7.86 %
                                         
Tier I capital to risk-weighted assets     11.51 %     11.27 %     11.21 %     12.51 %     12.73 %
                                         
Tier I & II capital to risk-weighted assets     12.76 %     12.52 %     12.46 %     13.76 %     13.98 %
                                         
Common equity to total assets     7.42 %     7.24 %     7.04 %     6.81 %     6.78 %
                                         
Book value per common share   $ 13.38     $ 13.02     $ 12.70     $ 12.47     $ 12.09  
 
(A) Does not include $5.7 million at September 30, 2012, $6.1 million at June 30, 2012, $6.0 million at March 31, 2012, $3.8 million at December 31, 2011 and $3.9 million at September 30, 2011 of TDR's included in nonaccrual loans.
(B) Classified loans include all impaired loans. Impaired loans include all nonaccrual loans and all TDRs.
 
 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
         
    Sept 30,   June 30,   March 31,   Dec 31,   Sept 30,    
    2012   2012   2012   2011   2011    
Income Statement Data:                                  
Interest income   $ 13,982   $ 14,102   $ 14,214   $ 14,101   $ 13,594    
Interest expense     1,132     1,199     1,323     1,485     1,699    
  Net interest income     12,850     12,903     12,891     12,616     11,895    
Provision for loan losses     750     1,500     1,500     1,750     1,500    
  Net interest income after provision for loan losses     12,100     11,403     11,391     10,866     10,395    
Trust fees     2,918     3,259     3,176     2,584     2,555    
Other income     1,406     1,305     1,157     1,350     1,170    
Securities gains/(losses), net     235     107     390     316     248    
  Total other income     4,559     4,671     4,723     4,250     3,973    
Salaries and employee benefits     7,029     6,408     6,113     5,651     5,789    
Premises and equipment     2,290     2,413     2,331     2,313     2,322    
FDIC insurance expense     299     290     352     278     253    
Other expenses     2,375     2,593     2,284     3,306     2,209    
  Total operating expenses     11,993     11,704     11,080     11,548     10,573    
Income before income taxes     4,666     4,370     5,034     3,568     3,795    
Income tax expense/(benefit)     1,834     1,647     1,951     1,041     (1,537 ) (A)
Net income     2,832     2,723     3,083     2,527     5,332   (B)
Dividends and accretion on preferred stock     -     -     474     220     219    
Net income available to common shareholders   $ 2,832   $ 2,723   $ 2,609   $ 2,307   $ 5,113   (B)
                                   
Per Common Share Data:                                  
                                   
Earnings per share (basic)   $ 0.32   $ 0.31   $ 0.30   $ 0.26   $ 0.58   (C)
Earnings per share (diluted)     0.32     0.31     0.30     0.26     0.58   (C)
                                   
Performance Ratios:                                  
                                   
Return on average assets     0.72 %   0.69 %   0.78 %   0.64 %   1.39 % (D)
Return on average common equity     9.77 %   9.65 %   9.47 %   8.61 %   19.87 % (E)
                                   
Net interest margin                                  
  (Taxable equivalent basis)     3.50 %   3.52 %   3.54 %   3.46 %   3.37 %  
                                   
                                   
(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. See page 14 for more information on this non-GAAP measure.
(C) EPS excluding the one-time state tax benefit of $2.988 million is $0.24 for the third quarter. See page 14 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 page 14 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 page 14 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        
    Nine Months Ended        
    September 30,        
    2012     2011        
Income Statement Data:                      
Interest income   $ 42,298     $ 41,950        
Interest expense     3,654       5,651        
  Net interest income     38,644       36,299        
Provision for loan losses     3,750       5,500        
  Net interest income after provision for loan losses     34,894       30,799        
Trust fees     9,353       8,102        
Other income     3,868       3,643        
Securities gains/(losses), net     732       721        
  Total other income     13,953       12,466        
Salaries and employee benefits     19,550       17,579        
Premises and equipment     7,034       7,058        
FDIC insurance expense     941       1,254        
Other expenses     7,252       6,960        
  Total operating expenses     34,777       32,851        
Income before income taxes     14,070       10,414        
Income tax expense     5,432       773     (A )
Net income     8,638       9,641     (B )
Dividends and accretion on preferred stock     474       1,008        
Net income available to common shareholders   $ 8,164     $ 8,633     (B )
                       
Per Common Share Data:                      
                       
Earnings per share (basic)   $ 0.93     $ 0.98     (C )
Earnings per share (diluted)     0.93       0.98     (C )
                       
Performance Ratios:                      
                       
Return on average assets     0.73 %     0.85 %   (D )
Return on average common equity     9.63 %     11.50 %   (E )
                       
Net interest margin                      
  (Tax equivalent basis)     3.52 %     3.46 %      
 
(A) Income taxes for the nine months ended 9/30/11 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 $6.653 million and $5.645 million, respectively for the nine months ended 9/30/11. See page 14 for more information on this non-GAAP measure.
(C) EPS excluding the one-time state tax benefit of $2.988 million is $0.64 for the nine months ended 9/30/11. See page 14 for more information on this non-GAAP measure.
(D) ROA excluding the one-time state tax benefit of $2.988 million is 0.59% for the nine months ended 9/30/11. See page 14 for more information on this non-GAAP measure.
(E) ROE excluding the one-time state tax benefit of $2.988 million is 7.52% for the nine months ended 9/30/11. See page 14 for more information on this non-GAAP measure.
 
 
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     For the Nine  
    Months Ended     Months Ended  
    September 30, 2011     September 30, 2011  
Net Income:                
As reported   $ 5,332     $ 9,641  
Less: Valuation allowance reversal     2,988       2,988  
  Net income, excluding valuation allowance reversal     2,344       6,653  
                 
Net Income Available to Common Shareholders:                
As reported   $ 5,113     $ 8,633  
Less: Valuation allowance reversal     2,988       2,988  
  Net income, excluding valuation allowance reversal     2,125       5,645  
                 
Per Common Share Data:                
Earnings per share (basic):                
As reported   $ 0.58     $ 0.98  
Less: Valuation allowance reversal     0.34       0.34  
Earnings per share (basic), excluding valuation allowance reversal     0.24       0.64  
                 
Earnings per share (diluted):                
As reported   $ 0.58     $ 0.98  
Less: Valuation allowance reversal     0.34       0.34  
Earnings per share (diluted), excluding valuation allowance reversal     0.24       0.64  
                 
Performance Ratios:                
Return on average assets:                
As reported     1.39 %     0.85 %
Return on average assets, excluding valuation allowance reversal     0.61 %     0.59 %
                 
Return on average common equity:                
As reported     19.87 %     11.50 %
Return on average common equity, excluding valuation allowance reversal     8.26 %     7.52 %
                 
 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
  September 30, 2012     September 30, 2011  
  Average Balance   Income/ Expense   Yield     Average Balance   Income/ Expense   Yield  
                           
                           
ASSETS:                                  
Interest-Earning Assets:                                  
  Investments:                                  
    Taxable (1) $ 284,440   $ 1,787   2.51 %   $ 350,946   $ 1,762   2.01 %
    Tax-exempt (1) (2)   44,481     322   2.90       37,238     353   3.79  
  Loans held for sale   2,829     34   4.77       610     12   8.37  
  Loans (2) (3)   1,098,857     11,965   4.36       964,400     11,589   4.81  
  Federal funds sold   100     -   0.10       100     -   0.25  
  Interest-earning deposits   53,560     27   0.20       77,295     43   0.22  
    Total interest-earning assets   1,484,267   $ 14,135   3.81 %     1,430,589   $ 13,759   3.85 %
Noninterest-Earning Assets:                                  
  Cash and due from banks   5,611                 8,458            
  Allowance for loan losses   (14,005 )               (14,592 )          
  Premises and equipment   30,820                 32,876            
  Other assets   77,232                 72,428            
    Total noninterest-earning assets   99,658                 99,170            
Total assets $ 1,583,925               $ 1,529,759            
                                   
LIABILITIES:                                  
Interest-Bearing Deposits:                                  
  Checking $ 334,982   $ 89   0.11 %   $ 321,368   $ 269   0.33 %
  Money markets   503,180     259   0.21       519,918     438   0.34  
  Savings   104,273     14   0.05       87,863     51   0.23  
  Certificates of deposit   188,568     550   1.17       203,612     684   1.34  
    Total interest-bearing deposits   1,131,003     912   0.32       1,132,761     1,442   0.51  
  Borrowings   15,281     113   2.96       20,831     177   3.40  
  Capital lease obligation   9,043     107   4.73       6,406     80   4.99  
  Total interest-bearing liabilities   1,155,327     1,132   0.39       1,159,998     1,699   0.59  
Noninterest-Bearing Liabilities:                                  
  Demand deposits   305,192                 246,665            
  Accrued expenses and other liabilities   7,434                 6,287            
  Total noninterest-bearing liabilities   312,626                 252,952            
Shareholders' equity   115,972                 116,809            
  Total liabilities and shareholders' equity   $1,583,925                 $1,529,759            
Net interest income       $ 13,003               $ 12,060      
  Net interest spread             3.42 %               3.26 %
  Net interest margin (4)             3.50 %               3.37 %
                                     
 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
 
    September 30, 2012     June 30, 2012  
    Average Balance   Income/ Expense   Yield     Average Balance   Income/ Expense   Yield  
ASSETS:                                    
Interest-Earning Assets:                                    
  Investments:                                    
    Taxable (1)   $ 284,440   $ 1,787   2.51 %   $ 312,362   $ 1,770   2.27 %
    Tax-exempt (1) (2)     44,481     322   2.90       45,556     332   2.92  
  Loans held for sale     2,829     34   4.77       1,137     18   6.57  
  Loans (2) (3)     1,098,857     11,965   4.36       1,101,095     12,124   4.40  
  Federal funds sold     100     -   0.10       100     -   0.10  
  Interest-earning deposits     53,560     27   0.20       22,306     14   0.26  
    Total interest-earning assets     1,484,267   $ 14,135   3.81 %     1,482,556   $ 14,258   3.85 %
Noninterest-Earning Assets:                                    
  Cash and due from banks     5,611                 5,846            
  Allowance for loan losses     (14,005 )               (13,990 )          
  Premises and equipment     30,820                 31,284            
  Other assets     77,232                 76,469            
    Total noninterest-earning assets     99,658                 99,609            
Total assets   $ 1,583,925               $ 1,582,165            
                                     
LIABILITIES:                                    
Interest-Bearing Deposits:                                    
  Checking   $ 334,982   $ 89   0.11 %   $ 326,920   $ 90   0.11 %
  Money markets     503,180     259   0.21       505,532     257   0.20  
  Savings     104,273     14   0.05       99,958     13   0.05  
  Certificates of deposit     188,568     550   1.17       192,261     563   1.17  
    Total interest-bearing deposits     1,131,003     912   0.32       1,124,671     923   0.33  
  Borrowings     15,281     113   2.96       36,586     168   1.84  
  Capital lease obligation     9,043     107   4.73       9,093     108   4.75  
  Total interest-bearing liabilities     1,155,327     1,132   0.39       1,170,350     1,199   0.41  
Noninterest -Bearing Liabilities:                                    
  Demand deposits     305,192                 292,459            
  Accrued expenses and other liabilities     7,434                 6,438            
  Total noninterest-bearing liabilities     312,626                 298,897            
Shareholders' equity     115,972                 112,918            
  Total liabilities and shareholders' equity   $ 1,583,925               $ 1,582,165            
Net interest income         $ 13,003               $ 13,059      
  Net interest spread               3.42 %               3.44 %
  Net interest margin (4)               3.50 %               3.52 %
                                       
 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
NINE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
 
  September 30, 2012     September 30, 2011  
  Average Balance   Income/ Expense   Yield     Average Balance   Income/ Expense   Yield  
ASSETS:                                  
Interest-Earning Assets:                                  
  Investments:                                  
    Taxable (1) $ 315,589   $ 5,609   2.37 %   $ 369,960   $ 6,240   2.25 %
    Tax-exempt (1) (2)   46,619     1,036   2.96       36,566     1,053   3.84  
  Loans held for sale   1,859     75   5.37       617     33   7.22  
  Loans (2) (3)   1,084,357     36,005   4.43       956,651     35,011   4.88  
  Federal funds sold   100     -   0.10       100     -   0.26  
  Interest-earning deposits   32,694     58   0.24       50,736     91   0.24  
    Total interest-earning assets   1,481,218   $ 42,783   3.85 %     1,414,630   $ 42,428   4.00 %
Noninterest-Earning Assets:                                  
  Cash and due from banks   6,378                 8,191            
  Allowance for loan losses   (13,916 )               (14,869 )          
  Premises and equipment   31,284                 33,300            
  Other assets   77,323                 71,970            
    Total noninterest-earning assets   101,069                 98,592            
Total assets $ 1,582,287               $ 1,513,222            
                                   
LIABILITIES:                                  
Interest-Bearing Deposits:                                  
  Checking $ 332,822   $ 292   0.12 %   $ 309,646   $ 865   0.37 %
  Money markets   508,337     820   0.22       519,700     1,638   0.42  
  Savings   99,671     56   0.07       85,415     159   0.25  
  Certificates of deposit   191,596     1,709   1.19       210,498     2,172   1.38  
    Total interest-bearing deposits   1,132,426     2,877   0.34       1,125,259     4,834   0.57  
  Borrowings   29,649     453   2.04       23,890     578   3.23  
  Capital lease obligation   9,094     324   4.75       6,384     239   4.99  
  Total interest-bearing liabilities   1,171,169     3,654   0.42       1,155,533     5,651   0.65  
Noninterest-Bearing Liabilities:                                  
  Demand deposits   290,988                 235,666            
  Accrued expenses and other liabilities   6,592                 6,552            
  Total noninterest-bearing liabilities   297,580                 242,218            
Shareholders' equity   113,538                 115,471            
  Total liabilities and shareholders' equity $ 1,582,287               $ 1,513,222            
Net interest income       $ 39,129               $ 36,777      
  Net interest spread             3.43 %               3.35 %
  Net interest margin (4)             3.52 %               3.46 %
 
(1) Average balances for available for sale securities are based on amortized cost.
(2) Interest income is presented on a tax-equivalent basis using a 35 percent federal tax rate.
(3) Loans are stated net of unearned income and include nonaccrual loans.
(4) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
Contact:

Jeffrey J. Carfora
EVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-719-4308
View Comments (0)