Contact:
Jeffrey J. Carfora, EVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-719-4308
PEAPACK-GLADSTONE FINANCIAL CORPORATION
REPORTS IMPROVED RESULTS FOR THE THIRD QUARTER OF 2011
BEDMINSTER, N.J.—November 1, 2011 – For the nine months and quarter ended September 30, 2011, Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market:PGC) (the Corporation) recorded net income of $9.64 million (nine months) and $5.33 million (quarter), respectively, and diluted earnings per share, after considering the effects of preferred stock dividends and accretion, of $0.98 (nine months) and $0.58 (quarter), respectively.
Income taxes for the nine months and for the quarter 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 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 will be realized in future periods.
For comparative purposes, the Corporation 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.
Therefore, as detailed in the financial table on page 15, net income and diluted earnings per share for the nine months ended September 30, 2011, excluding the one-time state tax benefit, was $6.65 million and $0.64. This compared favorably to net income of $5.79 million and diluted earnings per share of $0.50 for the same nine month period last year.
Net income and diluted earnings per share for the quarter ended September 30, 2011, excluding the one-time state tax benefit, was $2.34 million and $0.24. This compared favorably to net income and diluted earnings per share of $2.17 million and $0.22 for the immediately preceding quarter ended June 30, 2011, and $1.91 million and $0.18 for the quarter ended September 30, 2010.
Frank A. Kissel, Chairman and CEO, stated, “We are pleased to continue to show growth in earnings this quarter and on a year-to-date basis. As I have noted many times in the past, building capital internally to redeem the Treasury’s Capital Purchase Program (“CPP”) investment over time continues to be an important business objective of the Corporation. As we reported previously, in the March 2010 and March 2011 quarters, we were successful in redeeming a combined $14.4 million, or 50 percent of the Treasury’s original CPP investment.”
The Corporation’s provision for loan losses for the quarter ended September 30, 2011 was $1.5 million, below the $2.0 million provision recorded in the June 2011 quarter, and also below the $2.0 million provision recorded in the September 2010 quarter.
Although loans on nonaccrual status increased in the September 2011 quarter due primarily to two commercial real estate loans, those loans were previously classified and reserved for. Further, net charge-offs recorded in the quarter were at the lowest level in any of the past five quarters. After considering the nonaccrual levels and the reduced charge-off levels, among other things, and after applying the Allowance for Loan Loss methodology/calculations, it was estimated that a $1.5 million provision for loan losses was appropriate. Mr. Kissel noted that he has been pleased with the overall progress in resolving and valuing problem assets, and believes that progress will continue.
Net Interest Income and Margin
Net interest income, on a fully tax-equivalent basis, was $12.06 million for the third quarter of 2011, down from $12.34 million for the second quarter of 2011, and down from $12.53 million for the third quarter of 2010.
On a fully tax-equivalent basis, the net interest margin was 3.37 percent for the September 2011 quarter compared to 3.49 percent for the June 2011 quarter, and 3.64 percent for the September 2010 quarter. Due to the lower Treasury yields and flatter Treasury yield curve environment, asset yields compressed more than the cost of funds.
In comparing the September 2011 quarter to the same quarter last year, the growth of lower cost core deposits and the allowed run-off of higher cost certificates of deposit contributed to the reduced cost of funds. Growth in lower yielding, but shorter duration investment securities coupled with yields on new loans being less than the yields on loans that paid down, contributed to the reduced overall asset yield.
Loans
Average loans totaled $964.4 million for the third quarter of 2011 as compared to $949.3 million for the same 2010 quarter, reflecting an increase of $15.1 million.
The average residential mortgage loan portfolio was $434.4 million for the September 2011 quarter, reflecting an increase of $6.0 million when compared to $428.4 million in the same quarter of 2010. 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 certain 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 increased to $444.3 million for the third quarter of 2011, reflecting an increase of $34.9 million from $409.5 million in the third quarter of 2010. Mr. Kissel commented, “We have seen increased commercial mortgage demand, principally from high quality borrowers looking to refinance multi-family property mortgages held by other institutions”.
The average commercial construction loan portfolio declined $29.8 million from the third quarter of 2010 to the third quarter of 2011, as many of the Bank’s problem loans were in this category and the Bank has resolved those loans, while not originating any new commercial construction loans. In doing this, the Bank believes it has significantly decreased its exposure to construction lending.
The average home equity line portfolio rose $7.6 million to $49.8 million for the third quarter of 2011 compared to the same quarter in 2010. The Corporation focuses on the origination of these adjustable-rate loans and loan originations outpaced principal paydowns over the year.
From December 31, 2010 to September 30, 2011, the total loan portfolio grew $40.7 million to $973.2 million. Mr. Kissel stated, “We were particularly pleased to have seen quality growth opportunities in our loan portfolio over the course of 2011. Loan originations increased to $205.7 million for the first nine months of 2011 from $136.8 million for the same nine month period of 2010. Included in the total were commercial mortgage/commercial loan originations of $75.8 million for the first nine months of 2011, up from $24.5 million for the first nine months of 2010.” Mr. Kissel went on to say, “We anticipate that we will benefit in the future from utilizing cash flows from our lower-yielding investment portfolio to fund our higher-yielding loan production. In doing so, however, we will continue to remain committed to our conservative underwriting standards.” As of September 30, 2011, the residential first mortgage loan pipeline stood at $76 million and the commercial mortgage/commercial loan pipeline stood at $26 million, with many other lending opportunities in the discussion stage.
Deposits
Average total deposits (interest-bearing and noninterest-bearing) increased $62.9 million to $1.38 billion for the September 2011 quarter from $1.32 billion for the same quarter last year.
Average noninterest-bearing checking balances grew $35.3 million to $246.7 million for the third quarter of 2011 from $211.4 million for the third quarter of 2010. Average interest-bearing checking balances totaled $321.4 million for the quarter ended September 30, 2011, rising $61.6 million from the same quarter in 2010. Overall checking growth is attributable to the Corporation’s relationship orientation, its continual focus on business and personal core deposit generation, particularly checking, and a successful focus on establishing municipal relationships within its market territory.
Average savings accounts rose slightly, from $78.1 million for the third quarter of 2010 to $87.9 million for the third quarter of 2011, reflecting an increase of $9.8 million. Average money market accounts rose slightly, from $515.7 million for the third quarter of 2010 to $519.9 million for the third quarter of 2011, reflecting an increase of $4.2 million. The Corporation’s reduction in certificate of deposit balances, its focus on core deposit growth and certain customers tending to “park” funds in money market and savings accounts in lower interest rate environments accounted for this growth.
Average certificates of deposit (CDs) declined from $251.5 million for the September 2010 quarter to $203.6 million for the September 2011 quarter, reflecting a decline of $47.9 million. The Corporation allowed higher cost CDs to run-off, and replaced those funds with lower cost, more stable core deposits.
From December 31, 2010 to September 30, 2011, total deposits increased $45.5 million. The Corporation’s checking and savings balances increased $82.2 million, while higher costing CD balances declined by $23.3 million and money market balances declined by $13.4 million.
Mr. Kissel commented, “Our reduced reliance on higher cost certificates of deposit coupled with our continued growth in core deposits, has significantly increased our franchise value and has reduced our cost of funds.”
PGB Trust and Investments
PGB Trust and Investments generated $2.56 million in fee income in the second quarter of 2011, compared to $2.25 million in the same quarter of 2010, despite the decline in market value of assets under administration due to the uncertain and volatile markets. The market value of the assets under administration of the Trust Division stood at $1.86 billion at September 30, 2011.
Craig C. Spengeman, President of PGB Trust & Investments commented, “We continue to see increases in both our fiduciary and asset management businesses resulting in higher recurring fee income. We also continue to add new clients, as individuals and their families seek out our professional advice. Our growth reflects sound financial management by our wealth advisors.”
Other Non-Interest Income
Other non-interest income, exclusive of Trust fees, totaled $1.42 million in the September 2011 quarter compared to $969 thousand in the same quarter a year ago. The 2011 quarter reflected: increased service charges and fees, principally due to increased core deposit accounts and activity from such account holders; increased income from Bank Owned Life Insurance, due to improved crediting rates; increased securities gains; and reduced broker fee income/gain on sale of loans, as more new loan originations were retained in portfolio in 2011 rather than sold. The 2010 quarter included a $360 thousand other-than-temporary-impairment charge on securities.
Operating Expenses
The Corporation’s total operating expenses were $10.6 million in the September 2011 quarter compared to $10.9 million in the September 2010 quarter. The 2011 expense levels include costs for the Corporation to keep up with the increased regulatory burden on financial institutions. The net effect of the new/additional costs were principally offset by various operational efficiencies and reduced FDIC insurance expense due to a regulatory change in the calculation of FDIC assessments. Both periods include costs associated with a new corporate headquarters occupied in June 2010 and a major system upgrade in our Trust Division in May 2010. Mr. Kissel commented, “Our investments in a new corporate headquarters and a new, significantly enhanced system in our Trust area have added convenience and efficiencies for our customers and our company.”
Asset Quality
At September 30, 2011, nonperforming assets totaled $26.2 million or 1.66 percent of total assets, compared to $18.4 million or 1.21 percent of assets at June 30, 2011 and $22.8 million or 1.51 percent of assets at December 31, 2010. During the September 2011 quarter, two larger loans, previously classified and reserved for, were moved into nonaccrual status.
Total net charge-offs against the allowance for loan losses were $1.7 million for the quarter ended September 30, 2011. As noted previously, this is the lowest level in any of the past five quarters. The allowance for loan losses at September 30, 2011 was $13.8 million, or 1.42 percent of total loans.
Capital / Dividends
At September 30, 2011, the Corporation’s leverage ratio, tier 1 and total risk based capital ratios were 7.86 percent, 12.73 percent and 13.98 percent, respectively. 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 September 30, 2011 was 6.78 percent.
The Company’s preferred dividend and accretion for the September 2011 quarter was $219 thousand, flat to the June 2011 quarter, but down from $326 thousand in the September 2010 quarter. The reduction reflects the March 2011 $7.2 million partial redemption of the preferred shares previously issued under the Treasury’s Capital Purchase Program.
As previously announced, on October 20, 2011 the Board of Directors declared a regular cash dividend of $0.05 per share payable on November 18, 2011 to shareholders of record on November 3, 2011.
ABOUT THE CORPORATION
Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.58 billion as of September 30, 2011. 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 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; |
| | · | 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, 2010 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 | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| | | 2011 | | | 2011 | | | 2011 | | | 2010 | | | 2010 | |
| | | | | | | | | | | | | | | | |
| ASSETS | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 8,135 | | | $ | 8,678 | | | $ | 7,348 | | | $ | 6,490 | | | $ | 9,935 | |
| Federal funds sold | | | 100 | | | | 100 | | | | 100 | | | | 100 | | | | 100 | |
| Interest-earning deposits | | | 66,424 | | | | 51,606 | | | | 42,234 | | | | 56,097 | | | | 84,566 | |
| Total cash and cash equivalents | | | 74,659 | | | | 60,384 | | | | 49,682 | | | | 62,687 | | | | 94,601 | |
| | | | | | | | | | | | | | | | | | | | | |
| Securities held to maturity | | | 121,241 | | | | 140,572 | | | | 151,993 | | | | 140,277 | | | | 102,032 | |
| Securities available for sale | | | 311,927 | | | | 249,837 | | | | 271,687 | | | | 275,076 | | | | 246,334 | |
| FHLB and FRB Stock, at cost | | | 4,699 | | | | 4,704 | | | | 4,619 | | | | 4,624 | | | | 4,623 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans held for sale, at fair value | | | 722 | | | | 1,813 | | | | 1,168 | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | | | | | |
| Residential mortgage | | | 438,828 | | | | 432,735 | | | | 432,413 | | | | 419,653 | | | | 425,315 | |
| Commercial mortgage | | | 317,066 | | | | 316,197 | | | | 300,659 | | | | 288,183 | | | | 280,486 | |
| Commercial loans | | | 129,039 | | | | 128,839 | | | | 133,614 | | | | 131,408 | | | | 128,220 | |
| Construction loans | | | 14,893 | | | | 15,385 | | | | 17,693 | | | | 25,367 | | | | 39,989 | |
| Consumer loans | | | 20,345 | | | | 20,184 | | | | 19,278 | | | | 20,622 | | | | 22,410 | |
| Home equity lines of credit | | | 51,458 | | | | 48,805 | | | | 45,512 | | | | 45,775 | | | | 45,345 | |
| Other loans | | | 1,564 | | | | 3,612 | | | | 1,130 | | | | 1,489 | | | | 2,626 | |
| Total loans | | | 973,193 | | | | 965,757 | | | | 950,299 | | | | 932,497 | | | | 944,391 | |
| Less: Allowance for loan losses | | | 13,843 | | | | 14,056 | | | | 14,386 | | | | 14,282 | | | | 14,025 | |
| Net loans | | | 959,350 | | | | 951,701 | | | | 935,913 | | | | 918,215 | | | | 930,366 | |
| | | | | | | | | | | | | | | | | | | | | |
| Premises and equipment | | | 32,497 | | | | 33,098 | | | | 33,386 | | | | 33,820 | | | | 33,901 | |
| Other real estate owned | | | 3,264 | | | | 3,000 | | | | 3,000 | | | | 4,000 | | | | 1,000 | |
| Accrued interest receivable | | | 3,788 | | | | 4,391 | | | | 4,587 | | | | 4,231 | | | | 4,594 | |
| Bank owned life insurance | | | 27,767 | | | | 27,537 | | | | 27,301 | | | | 27,074 | | | | 26,877 | |
| Deferred tax assets, net | | | 27,543 | | | | 24,689 | | | | 26,039 | | | | 26,083 | | | | 23,903 | |
| Other assets | | | 7,831 | | | | 9,014 | | | | 11,343 | | | | 9,338 | | | | 12,030 | |
| TOTAL ASSETS | | $ | 1,575,288 | | | $ | 1,510,740 | | | $ | 1,520,718 | | | $ | 1,505,425 | | | $ | 1,480,261 | |
| | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Noninterest bearing | | | | | | | | | | | | | | | | | | | | |
| demand deposits | | $ | 254,646 | | | $ | 238,788 | | | $ | 235,977 | | | $ | 228,764 | | | $ | 219,700 | |
| Interest-bearing deposits | | | | | | | | | | | | | | | | | | | | |
| Checking | | | 337,900 | | | | 322,801 | | | | 302,589 | | | | 290,322 | | | | 255,665 | |
| Savings | | | 89,527 | | | | 86,828 | | | | 85,741 | | | | 80,799 | | | | 78,819 | |
| Money market accounts | | | 511,059 | | | | 507,159 | | | | 526,355 | | | | 524,449 | | | | 525,264 | |
| CD’s $100,000 and over | | | 76,100 | | | | 73,186 | | | | 73,966 | | | | 79,311 | | | | 85,703 | |
| CD’s less than $100,000 | | | 127,778 | | | | 132,949 | | | | 139,022 | | | | 147,901 | | | | 155,268 | |
| Total deposits | | | 1,397,010 | | | | 1,361,711 | | | | 1,363,650 | | | | 1,351,546 | | | | 1,320,419 | |
| Borrowings | | | 20,793 | | | | 20,905 | | | | 24,016 | | | | 24,126 | | | | 24,234 | |
| Capital lease obligation | | | 6,396 | | | | 6,426 | | | | 6,383 | | | | 6,304 | | | | 6,226 | |
| Other liabilities | | | 30,406 | | | | 6,489 | | | | 14,585 | | | | 5,733 | | | | 11,903 | |
| TOTAL LIABILITIES | | | 1,454,605 | | | | 1,395,531 | | | | 1,408,634 | | | | 1,387,709 | | | | 1,362,782 | |
| Shareholders’ Equity | | | 120,683 | | | | 115,209 | | | | 112,084 | | | | 117,716 | | | | 117,479 | |
| TOTAL LIABILITIES AND | | | | | | | | | | | | | | | | | | | | |
| SHAREHOLDERS’ EQUITY | | $ | 1,575,288 | | | $ | 1,510,740 | | | $ | 1,520,718 | | | $ | 1,505,425 | | | $ | 1,480,261 | |
| | | | | | | | | | | | | | | | | | | | | |
| Trust division assets under | | | | | | | | | | | | | | | | | | | | |
| administration (market value, | | | | | | | | | | | | | | | | | | | | |
| not included above) | | $ | 1,857,527 | | | $ | 2,005,859 | | | $ | 1,997,214 | | | $ | 1,940,404 | | | $ | 1,929,565 | |
| | | | | | | | | | | | | | | | | | | | | |
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in thousands)
(Unaudited)
| | | As of | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| | | 2011 | | | 2011 | | | 2011 | | | 2010 | | | 2010 | |
| Asset Quality: | | | | | | | | | | | | | | | |
| Loans past due over 90 days | | | | | | | | | | | | | | | |
| and still accruing | | $ | 836 | | | $ | 412 | | | $ | 323 | | | $ | 666 | | | $ | 442 | |
| Nonaccrual loans (B) | | | 22,103 | | | | 14,943 | | | | 19,173 | | | | 18,114 | | | | 17,535 | |
| Other real estate owned | | | 3,264 | | | | 3,000 | | | | 3,000 | | | | 4,000 | | | | 1,000 | |
| Total nonperforming assets | | $ | 26,203 | | | $ | 18,355 | | | $ | 22,496 | | | $ | 22,780 | | | $ | 18,977 | |
| | | | | | | | | | | | | | | | | | | | | |
| Nonperforming loans to | | | | | | | | | | | | | | | | | | | | |
| total loans | | | 2.36 | % | | | 1.59 | % | | | 2.05 | % | | | 2.01 | % | | | 1.90 | % |
| Nonperforming assets to | | | | | | | | | | | | | | | | | | | | |
| total assets | | | 1.66 | % | | | 1.21 | % | | | 1.48 | % | | | 1.51 | % | | | 1.28 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Accruing TDR’s (A) | | $ | 5,519 | | | $ | 8,171 | | | $ | 3,787 | | | $ | 5,680 | | | $ | 7,468 | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans past due 30 through 89 | | | | | | | | | | | | | | | | | | | | |
| days and still accruing | | $ | 9,706 | | | $ | 8,200 | | | $ | 5,419 | | | $ | 5,475 | | | $ | 9,487 | |
| | | | | | | | | | | | | | | | | | | | | |
| Classified Loans (B) | | $ | 52,031 | | | $ | 51,586 | | | $ | 51,186 | | | $ | 41,979 | | | $ | 36,521 | |
| | | | | | | | | | | | | | | | | | | | | |
| Impaired Loans (B) | | $ | 27,529 | | | $ | 23,115 | | | $ | 26,056 | | | $ | 28,397 | | | $ | 36,521 | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
| Beginning of period | | $ | 14,056 | | | $ | 14,386 | | | $ | 14,282 | | | $ | 14,025 | | | $ | 13,856 | |
| Provision for loan losses | | | 1,500 | | | | 2,000 | | | | 2,000 | | | | 2,850 | | | | 2,000 | |
| Charge-offs, net | | | (1,713 | ) | | | (2,330 | ) | | | (1,896 | ) | | | (2,593 | ) | | | (1,831 | ) |
| End of period | | $ | 13,843 | | | $ | 14,056 | | | $ | 14,386 | | | $ | 14,282 | | | $ | 14,025 | |
| | | | | | | | | | | | | | | | | | | | | |
| ALLL to nonperforming loans | | | 60.35 | % | | | 91.54 | % | | | 73.79 | % | | | 76.05 | % | | | 78.02 | % |
| ALLL to total loans | | | 1.42 | % | | | 1.46 | % | | | 1.51 | % | | | 1.53 | % | | | 1.49 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Capital Adequacy: | | | | | | | | | | | | | | | | | | | | |
| Tier I leverage | | | | | | | | | | | | | | | | | | | | |
| (5% minimum to be considered | | | | | | | | | | | | | | | | | | | | |
| well capitalized) | | | 7.86 | % | | | 7.63 | % | | | 7.59 | % | | | 7.96 | % | | | 8.00 | % |
| Tier I capital to risk-weighted assets | | | | | | | | | | | | | | | | | | | | |
| (6% minimum to be considered | | | | | | | | | | | | | | | | | | | | |
| well capitalized) | | | 12.73 | % | | | 12.67 | % | | | 12.25 | % | | | 12.91 | % | | | 12.62 | % |
| Tier I & II capital to | | | | | | | | | | | | | | | | | | | | |
| risk-weighted assets | | | | | | | | | | | | | | | | | | | | |
| (10% minimum to be considered | | | | | | | | | | | | | | | | | | | | |
| well capitalized) | | | 13.98 | % | | | 13.92 | % | | | 13.51 | % | | | 14.16 | % | | | 13.88 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Common equity to | | | | | | | | | | | | | | | | | | | | |
| Total assets | | | 6.78 | % | | | 6.71 | % | | | 6.46 | % | | | 6.44 | % | | | 6.54 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Book value per | | | | | | | | | | | | | | | | | | | | |
| Common share | | $ | 12.09 | | | $ | 11.48 | | | $ | 11.13 | | | $ | 11.03 | | | $ | 11.01 | |
(A) Does not include $3.9 million at September 30, 2011, $1.3 million at June 30, 2011, $1.1 million at March 31, 2011, $379 thousand at December 31, 2010 and $387 thousand at September 30, 2010 of TDR’s included in nonaccrual loans. (B) At September 30, 2011, $27.5 million, at June 30, 2011, $23.1 million; at March 31, 2011, $26.1 million; and at December 31, 2010, $28.4 million of the classified loans were also considered impaired. In periods prior to December 31, 2010, all classified loans were also considered impaired. |
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
| | | For The Three Months Ended | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| | | 2011 | | | 2011 | | | 2011 | | | 2010 | | | 2010 | |
| Income Statement Data: | | | | | | | | | | | | | | | |
| Interest income | | $ | 13,594 | | | $ | 14,099 | | | $ | 14,257 | | | $ | 14,707 | | | $ | 14,974 | |
| Interest expense | | | 1,699 | | | | 1,916 | | | | 2,036 | | | | 2,214 | | | | 2,612 | |
| Net interest income | | | 11,895 | | | | 12,183 | | | | 12,221 | | | | 12,493 | | | | 12,362 | |
| Provision for loan losses | | | 1,500 | | | | 2,000 | | | | 2,000 | | | | 2,850 | | | | 2,000 | |
| Net interest income after | | | | | | | | | | | | | | | | | | | | |
| provision for loan losses | | | 10,395 | | | | 10,183 | | | | 10,221 | | | | 9,643 | | | | 10,362 | |
| Trust fees | | | 2,555 | | | | 2,829 | | | | 2,718 | | | | 2,598 | | | | 2,254 | |
| Other income | | | 1,170 | | | | 1,218 | | | | 1,255 | | | | 1,621 | | | | 1,203 | |
| Securities gains/(losses), net | | | 248 | | | | 277 | | | | 196 | | | | (4 | ) | | | 126 | |
| Other-than-temporary impairment | | | | | | | | | | | | | | | | | | | | |
| Charge, securities | | | - | | | | - | | | | - | | | | (581 | ) | | | (360 | ) |
| Total other income | | | 3,973 | | | | 4,324 | | | | 4,169 | | | | 3,634 | | | | 3,223 | |
| Salaries and employee benefits | | | 5,789 | | | | 5,817 | | | | 5,973 | | | | 5,469 | | | | 5,647 | |
| Premises and equipment | | | 2,322 | | | | 2,386 | | | | 2,322 | | | | 2,248 | | | | 2,416 | |
| FDIC insurance expense | | | 253 | | | | 397 | | | | 604 | | | | 598 | | | | 586 | |
| Other expenses | | | 2,209 | | | | 2,435 | | | | 2,344 | | | | 2,374 | | | | 2,237 | |
| Total operating expenses | | | 10,573 | | | | 11,035 | | | | 11,243 | | | | 10,689 | | | | 10,886 | |
| Income before income taxes | | | 3,795 | | | | 3,472 | | | | 3,147 | | | | 2,588 | | | | 2,699 | |
| Income tax (benefit)/expense | | | (1,537 | )(A) | | | 1,304 | | | | 1,006 | | | | 711 | | | | 793 | |
| Net income | | | 5,332 | (B) | | | 2,168 | | | | 2,141 | | | | 1,877 | | | | 1,906 | |
| Dividends and accretion | | | | | | | | | | | | | | | | | | | | |
| on preferred stock | | | 219 | | | | 219 | | | | 570 | | | | 326 | | | | 326 | |
| Net income available to | | | | | | | | | | | | | | | | | | | | |
| Common shareholders | | $ | 5,113 | (B) | | $ | 1,949 | | | $ | 1,571 | | | $ | 1,551 | | | $ | 1,580 | |
| | | | | | | | | | | | | | | | | | | | | |
| Per Common Share Data: | | | | | | | | | | | | | | | | | | | | |
| Earnings per share (basic) | | $ | 0.58 | (C) | | $ | 0.22 | | | $ | 0.18 | | | $ | 0.18 | | | $ | 0.18 | |
| Earnings per share (diluted) | | | 0.58 | (C) | | | 0.22 | | | | 0.18 | | | | 0.18 | | | | 0.18 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Performance Ratios: | | | | | | | | | | | | | | | | | | | | |
| Return on Average Assets | | | 1.39 | %(D) | | | 0.57 | % | | | 0.57 | % | | | 0.50 | % | | | 0.52 | % |
| Return on Average Common | | | | | | | | | | | | | | | | | | | | |
| Equity | | | 19.87 | %(E) | | | 7.82 | % | | | 6.44 | % | | | 6.34 | % | | | 6.55 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Net Interest Margin | | | | | | | | | | | | | | | | | | | | |
| (Taxable Equivalent Basis) | | | 3.37 | % | | | 3.49 | % | | | 3.54 | % | | | 3.62 | % | | | 3.64 | % |
| (A)Income taxes for the 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 quarter. |
(C) EPS excluding the one-time state tax benefit of $2.988 million is $0.24 for the quarter. See page 15, 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 quarter. See page 15, 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 quarter. See page 15, 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, | |
| | | 2011 | | | | 2010 | |
| Income Statement Data: | | | | | | | |
| Interest income | | $ | 41,950 | | | | $ | 46,215 | |
| Interest expense | | | 5,651 | | | | | 8,818 | |
| Net interest income | | | 36,299 | | | | | 37,397 | |
| Provision for loan losses | | | 5,500 | | | | | 7,150 | |
| Net interest income after | | | | | | | | | |
| provision for loan losses | | | 30,799 | | | | | 30,247 | |
| Trust fees | | | 8,102 | | | | | 7,303 | |
| Other income | | | 3,643 | | | | | 3,410 | |
| Securities gains, net | | | 721 | | | | | 128 | |
| Other-than-temporary impairment | | | | | | | | | |
| charge, equity securities | | | - | | | | | (360 | ) |
| Total other income | | | 12,466 | | | | | 10,481 | |
| Salaries and employee benefits | | | 17,579 | | | | | 17,060 | |
| Premises and equipment | | | 7,058 | | | | | 7,376 | |
| FDIC insurance expense | | | 1,254 | | | | | 1,724 | |
| Other expenses | | | 6,960 | | | | | 6,261 | |
| Total operating expenses | | | 32,851 | | | | | 32,421 | |
| Income before income taxes | | | 10,414 | | | | | 8,307 | |
| Income tax expense | | | 773 | | (A) | | | 2,520 | |
| Net income | | | 9,641 | | (B) | | | 5,787 | |
| Dividends and accretion | | | | | | | | | |
| on preferred stock | | | 1,008 | | | | | 1,360 | |
| Net income available to | | | | | | | | | |
| Common shareholders | | $ | 8,633 | | (B) | | $ | 4,427 | |
| | | | | | | | | | |
| Per Common Share Data: | | | | | | | | | |
| Earnings per share (basic) | | $ | 0.98 | | (C) | | $ | 0.50 | |
| Earnings per share (diluted) | | | 0.98 | | (C) | | | 0.50 | |
| | | | | | | | | | |
| | | | | | | | | | |
| Performance Ratios: | | | | | | | | | |
| Return on Average Assets | | | 0.85 | % | (D) | | | 0.52 | % |
| Return on Average Common | | �� | | | | | | | |
| Equity | | | 11.50 | % | (E) | | | 6.24 | % |
| | | | | | | | | | |
| Net Interest Margin | | | | | | | | | |
| (Taxable Equivalent Basis) | | | 3.46 | % | | | | 3.65 | % |
| (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. |
(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 15, 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 15, 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 15, for more information on this non-GAAP measure. |
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
This press release contains certain supplemental financial information, described below, which has been determined by methods other than 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 its 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, 2011 | | | September 30, 2010 | |
| | | Average | | | Income/ | | | | | | Average | | | Income/ | | | | |
| | | Balance | | | Expense | | | Yield | | | Balance | | | Expense | | | Yield | |
| ASSETS: | | | | | | | | | | | | | | | | | | |
| Interest-Earning Assets: | | | | | | | | | | | | | | | | | | |
| Investments: | | | | | | | | | | | | | | | | | | |
| Taxable (1) | | $ | 350,946 | | | $ | 1,762 | | | | 2.01 | % | | $ | 314,213 | | | $ | 2,230 | | | | 2.84 | % |
| Tax-Exempt (1) (2) | | | 37,238 | | | | 353 | | | | 3.79 | | | | 32,545 | | | | 384 | | | | 4.72 | |
| Loans Held for Sale | | | 610 | | | | 12 | | | | 8.37 | | | | N/A | | | | N/A | | | | N/A | |
| Loans (2) (3) | | | 964,400 | | | | 11,589 | | | | 4.81 | | | | 949,301 | | | | 12,473 | | | | 5.26 | |
| Federal Funds Sold | | | 100 | | | | - | | | | 0.25 | | | | 193 | | | | - | | | | 0.22 | |
| Interest-Earning Deposits | | | 77,295 | | | | 43 | | | | 0.22 | | | | 78,501 | | | | 50 | | | | 0.26 | |
| Total Interest-Earning | | | | | | | | | | | | | | | | | | | | | | | | |
| Assets | | | 1,430,589 | | | $ | 13,759 | | | | 3.85 | % | | | 1,374,753 | | | | 15,137 | | | | 4.40 | % |
| Noninterest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and Due from Banks | | | 8,458 | | | | | | | | | | | | 8,314 | | | | | | | | | |
| Allowance for Loan | | | | | | | | | | | | | | | | | | | | | | | | |
| Losses | | | (14,592 | ) | | | | | | | | | | | (14,180 | ) | | | | | | | | |
| Premises and Equipment | | | 32,876 | | | | | | | | | | | | 34,589 | | | | | | | | | |
| Other Assets | | | 72,428 | | | | | | | | | | | | 70,056 | | | | | | | | | |
| Total Noninterest-Earning | | | | | | | | | | | | | | | | | | | | | | | | |
| Assets | | | 99,170 | | | | | | | | | | | | 98,779 | | | | | | | | | |
| Total Assets | | $ | 1,529,759 | | | | | | | | | | | $ | 1,473,532 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-Bearing Deposits | | | | | | | | | | | | | | | | | | | | | | | | |
| Checking | | $ | 321,368 | | | $ | 269 | | | | 0.33 | % | | $ | 259,816 | | | | 409 | | | | 0.63 | % |
| Money Markets | | | 519,918 | | | | 438 | | | | 0.34 | | | | 515,734 | | | | 839 | | | | 0.65 | |
| Savings | | | 87,863 | | | | 51 | | | | 0.23 | | | | 78,058 | | | | 78 | | | | 0.40 | |
| Certificates of Deposit | | | 203,612 | | | | 684 | | | | 1.34 | | | | 251,511 | | | | 986 | | | | 1.57 | |
| Total Interest-Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 1,132,761 | | | | 1,442 | | | | 0.51 | | | | 1,105,119 | | | | 2,312 | | | | 0.84 | |
| Borrowings | | | 20,831 | | | | 177 | | | | 3.40 | | | | 25,532 | | | | 223 | | | | 3.49 | |
| Capital Lease Obligation | | | 6,406 | | | | 80 | | | | 4.99 | | | | 6,177 | | | | 77 | | | | 4.98 | |
| Total Interest-Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities | | | 1,159,998 | | | | 1,699 | | | | 0.59 | | | | 1,136,828 | | | | 2,612 | | | | 0.92 | |
| Noninterest Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand Deposits | | | 246,665 | | | | | | | | | | | | 211,390 | | | | | | | | | |
| Accrued Expenses and | | | | | | | | | | | | | | | | | | | | | | | | |
| Other Liabilities | | | 6,287 | | | | | | | | | | | | 8,216 | | | | | | | | | |
| Total Noninterest-Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities | | | 252,952 | | | | | | | | | | | | 219,606 | | | | | | | | | |
| Shareholders’ Equity | | | 116,809 | | | | | | | | | | | | 117,098 | | | | | | | | | |
| Total Liabilities and | | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders’ Equity | | $ | 1,529,759 | | | | | | | | | | | $ | 1,473,532 | | | | | | | | | |
| Net Interest Income | | | | | | $ | 12,060 | | | | | | | | | | | | 12,525 | | | | | |
| Net Interest Spread | | | | | | | | | | | 3.26 | % | | | | | | | | | | | 3.48 | % |
| Net Interest Margin (4) | | | | | | | | | | | 3.37 | % | | | | | | | | | | | 3.64 | % |
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
| | | September 30, 2011 | | | June 30, 2011 | |
| | | Average | | | Income/ | | | | | | Average | | | Income/ | | | | |
| | | Balance | | | Expense | | | Yield | | | Balance | | | Expense | | | Yield | |
| ASSETS: | | | | | | | | | | | | | | | | | | |
| Interest-Earning Assets: | | | | | | | | | | | | | | | | | | |
| Investments: | | | | | | | | | | | | | | | | | | |
| Taxable (1) | | $ | 350,946 | | | $ | 1,762 | | | | 2.01 | % | | $ | 375,216 | | | $ | 2,209 | | | | 2.35 | % |
| Tax-Exempt (1) (2) | | | 37,238 | | | | 353 | | | | 3.79 | | | | 36,855 | | | | 347 | | | | 3.77 | |
| Loans Held for Sale | | | 610 | | | | 12 | | | | 8.37 | | | | 510 | | | | 5 | | | | 3.78 | |
| Loans (2) (3) | | | 964,400 | | | | 11,589 | | | | 4.81 | | | | 968,179 | | | | 11,674 | | | | 4.82 | |
| Federal Funds Sold | | | 100 | | | | - | | | | 0.25 | | | | 100 | | | | - | | | | 0.25 | |
| Interest-Earning Deposits | | | 77,295 | | | | 43 | | | | 0.22 | | | | 32,598 | | | | 20 | | | | 0.24 | |
| Total Interest-Earning | | | | | | | | | | | | | | | | | | | | | | | | |
| Assets | | | 1,430,589 | | | $ | 13,759 | | | | 3.85 | % | | | 1,413,458 | | | $ | 14,255 | | | | 4.03 | % |
| Noninterest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and Due from Banks | | | 8,458 | | | | | | | | | | | | 8,231 | | | | | | | | | |
| Allowance for Loan | | | | | | | | | | | | | | | | | | | | | | | | |
| Losses | | | (14,592 | ) | | | | | | | | | | | (15,086 | ) | | | | | | | | |
| Premises and Equipment | | | 32,876 | | | | | | | | | | | | 33,393 | | | | | | | | | |
| Other Assets | | | 72,428 | | | | | | | | | | | | 71,868 | | | | | | | | | |
| Total Noninterest-Earning | | | | | | | | | | | | | | | | | | | | | | | | |
| Assets | | | 99,170 | | | | | | | | | | | | 98,406 | | | | | | | | | |
| Total Assets | | $ | 1,529,759 | | | | | | | | | | | $ | 1,511,864 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-Bearing Deposits | | | | | | | | | | | | | | | | | | | | | | | | |
| Checking | | $ | 321,368 | | | $ | 269 | | | | 0.33 | % | | $ | 309,310 | | | $ | 292 | | | | 0.38 | % |
| Money Markets | | | 519,918 | | | | 438 | | | | 0.34 | | | | 516,739 | | | | 577 | | | | 0.45 | |
| Savings | | | 87,863 | | | | 51 | | | | 0.23 | | | | 86,150 | | | | 56 | | | | 0.26 | |
| Certificates of Deposit | | | 203,612 | | | | 684 | | | | 1.34 | | | | 208,697 | | | | 713 | | | | 1.37 | |
| Total Interest-Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 1,132,761 | | | | 1,442 | | | | 0.51 | | | | 1,120,896 | | | | 1,638 | | | | 0.58 | |
| Borrowings | | | 20,831 | | | | 177 | | | | 3.40 | | | | 26,242 | | | | 198 | | | | 3.02 | |
| Capital Lease Obligation | | | 6,406 | | | | 80 | | | | 4.99 | | | | 6,410 | | | | 80 | | | | 4.98 | |
| Total Interest-Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities | | | 1,159,998 | | | | 1,699 | | | | 0.59 | | | | 1,153,548 | | | | 1,916 | | | | 0.66 | |
| Noninterest Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand Deposits | | | 246,665 | | | | | | | | | | | | 237,651 | | | | | | | | | |
| Accrued Expenses and | | | | | | | | | | | | | | | | | | | | | | | | |
| Other Liabilities | | | 6,287 | | | | | | | | | | | | 7,104 | | | | | | | | | |
| Total Noninterest-Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities | | | 252,952 | | | | | | | | | | | | 244,755 | | | | | | | | | |
| Shareholders’ Equity | | | 116,809 | | | | | | | | | | | | 113,561 | | | | | | | | | |
| Total Liabilities and | | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders’ Equity | | $ | 1,529,759 | | | | | | | | | | | $ | 1,511,864 | | | | | | | | | |
| Net Interest Income | | | | | | $ | 12,060 | | | | | | | | | | | $ | 12,339 | | | | | |
| Net Interest Spread | | | | | | | | | | | 3.26 | % | | | | | | | | | | | 3.37 | % |
| Net Interest Margin (4) | | | | | | | | | | | 3.37 | % | | | | | | | | | | | 3.49 | % |
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
NINE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
| | | September 30, 2011 | | | September 30, 2010 | |
| | | Average | | | Income/ | | | | | | Average | | | Income/ | | | | |
| | | Balance | | | Expense | | | Yield | | | Balance | | | Expense | | | Yield | |
| ASSETS: | | | | | | | | | | | | | | | | | | |
| Interest-Earning Assets: | | | | | | | | | | | | | | | | | | |
| Investments: | | | | | | | | | | | | | | | | | | |
| Taxable (1) | | $ | 369,960 | | | $ | 6,240 | | | | 2.25 | % | | $ | 320,452 | | | $ | 7,145 | | | | 2.97 | % |
| Tax-Exempt (1) (2) | | | 36,566 | | | | 1,053 | | | | 3.84 | | | | 35,133 | | | | 1,253 | | | | 4.76 | |
| Loans Held for Sale | | | 617 | | | | 33 | | | | 7.22 | | | | N/A | | | | N/A | | | | N/A | |
| Loans (2) (3) | | | 956,651 | | | | 35,011 | | | | 4.88 | | | | 963,840 | | | | 38,242 | | | | 5.29 | |
| Federal Funds Sold | | | 100 | | | | - | | | | 0.26 | | | | 198 | | | | - | | | | 0.21 | |
| Interest-Earning Deposits | | | 50,736 | | | | 91 | | | | 0.24 | | | | 64,237 | | | | 102 | | | | 0.21 | |
| Total Interest-Earning | | | | | | | | | | | | | | | | | | | | | | | | |
| Assets | | | 1,414,630 | | | $ | 42,428 | | | | 4.00 | % | | | 1,383,860 | | | $ | 46,742 | | | | 4.50 | % |
| Noninterest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and Due from Banks | | | 8,191 | | | | | | | | | | | | 8,375 | | | | | | | | | |
| Allowance for Loan | | | | | | | | | | | | | | | | | | | | | | | | |
| Losses | | | (14,869 | ) | | | | | | | | | | | (14,011 | ) | | | | | | | | |
| Premises and Equipment | | | 33,300 | | | | | | | | | | | | 31,110 | | | | | | | | | |
| Other Assets | | | 71,970 | | | | | | | | | | | | 69,234 | | | | | | | | | |
| Total Noninterest-Earning | | | | | | | | | | | | | | | | | | | | | | | | |
| Assets | | | 98,592 | | | | | | | | | | | | 94,708 | | | | | | | | | |
| Total Assets | | $ | 1,513,222 | | | | | | | | | | | $ | 1,478,568 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-Bearing Deposits | | | | | | | | | | | | | | | | | | | | | | | | |
| Checking | | $ | 309,646 | | | $ | 865 | | | | 0.37 | % | | $ | 250,785 | | | $ | 1,234 | | | | 0.66 | % |
| Money Markets | | | 519,700 | | | | 1,638 | | | | 0.42 | | | | 507,075 | | | | 2,977 | | | | 0.78 | |
| Savings | | | 85,415 | | | | 159 | | | | 0.25 | | | | 76,456 | | | | 235 | | | | 0.41 | |
| Certificates of Deposit | | | 210,498 | | | | 2,172 | | | | 1.38 | | | | 276,937 | | | | 3,406 | | | | 1.64 | |
| Total Interest-Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | 1,125,259 | | | | 4,834 | | | | 0.57 | | | | 1,111,253 | | | | 7,852 | | | | 0.94 | |
| Borrowings | | | 23,890 | | | | 578 | | | | 3.23 | | | | 31,369 | | | | 838 | | | | 3.56 | |
| Capital Lease Obligation | | | 6,384 | | | | 239 | | | | 4.99 | | | | 2,754 | | | | 128 | | | | 6.18 | |
| Total Interest-Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities | | | 1,155,533 | | | | 5,651 | | | | 0.65 | | | | 1,145,376 | | | | 8,818 | | | | 1.03 | |
| Noninterest Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand Deposits | | | 235,666 | | | | | | | | | | | | 211,223 | | | | | | | | | |
| Accrued Expenses and | | | | | | | | | | | | | | | | | | | | | | | | |
| Other Liabilities | | | 6,552 | | | | | | | | | | | | 6,665 | | | | | | | | | |
| Total Noninterest-Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities | | | 242,218 | | | | | | | | | | | | 217,888 | | | | | | | | | |
| Shareholders’ Equity | | | 115,471 | | | | | | | | | | | | 115,304 | | | | | | | | | |
| Total Liabilities and | | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders’ Equity | | $ | 1,513,222 | | | | | | | | | | | $ | 1,478,568 | | | | | | | | | |
| Net Interest Income | | | | | | $ | 36,777 | | | | | | | | | | | $ | 37,924 | | | | | |
| Net Interest Spread | | | | | | | | | | �� | 3.35 | % | | | | | | | | | | | 3.47 | % |
| Net Interest Margin (4) | | | | | | | | | | | 3.46 | % | | | | | | | | | | | 3.65 | % |
| | (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. | |
