Exhibit 99.1
Contact:
Jeffrey J. Carfora, SEVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-719-4308
PEAPACK-GLADSTONE FINANCIAL CORPORATION
REPORTS ANOTHER SOLID QUARTER OF ACCOMPLISHMENT
BEDMINSTER, N.J. – January 30, 2014– Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market:PGC) (the “Corporation” or the “Company”) recorded net income of $2.40 million and diluted earnings per share of $0.25 for the quarter ended December 31, 2013.
Doug Kennedy, President and CEO, said, “We had another solid quarter of accomplishment, including achieving several new records.”
| · | We continued to implement and follow through on our Strategic Plan – “Expanding Our Reach”. The Plan focuses on the client experience and aggressively building and maintaining a private banking platform. |
| · | In support of the growth associated with the Plan,we successfully raised $42 million (gross) of common equityin a rights offering and sale to standby investors, that closed on December 12, 2013. Over 52 percent of the offering was subscribed by existing shareholders. The remainder was purchased by nine pre-arranged standby investors, themajority of which were new institutional shareholders in the Company. |
| · | Total end of yearloan balances reached another record level for the Company – $1.57 billion. This level reflected an increase of $442 million or 39 percent from the balance at December 31, 2012, and included an increase of $177 million in the fourth quarter of 2013. |
| · | Totaldeposits also reached another record level. The end of year balance of $1.65 billion reflected an increase of $131 million or nearly nine percent from the balance at December 31, 2012, and included an increase of $75 million in the fourth quarter of 2013. |
| · | The Company’snet interest income for the December 2013 quarter reached another quarterly record level - $14.53 million. This level reflected improvement when compared to $12.76 million for the December 2012 quarter, and also reflected improvement when compared to $13.37 million for the immediately preceding September 2013 quarter. |
| · | At December 31, 2013, themarket value of assets under administration at the Bank’s Wealth Management Division of $2.69 billion was also another record for the Company. This level reflected an increase of 17 percent from the balance at December 31, 2012. |
| · | Fee income from Peapack-Gladstone Bank’s Wealth Management Division of $3.55 million for the December 2013 quarter reflectedgrowth of over 21 percent when compared to the $2.93 million for the December 2012 quarter. |
| · | Total revenue (net interest income plus other income) of $19.50 million for the December 2013 quarter reflected improvement when compared to prior quarters in 2013. |
| · | Trends in asset quality continue to demonstrate strong improvement when compared to prior periods. For example, nonperforming assets declined in both dollars and as a percentage of assets, to just 0.44 percent of total assets as of December 31, 2013, compared to 0.91 percent of total assets as of December 31, 2012. |
| · | The book value per share at December 31, 2013 of $14.79 reflected improvement when compared to $14.12 at September 30, 2013 and $13.87 at December 31, 2012. |
| · | Capital ratios were benefitted by the December 2013 capital raise and were improved and very strong as of December 31, 2013, even with nearly $300 million growth in assets for the year, as well as migration of lower risk weighted investment security cash flows into loans. |
The $3.53 million pre-tax income, $2.40 million net income and $0.25 fully diluted earnings per share for the December 2013 quarter were negatively impacted by a $204 thousand ($128 thousand net of tax) search fee related to the new head of Wealth Management and also $602 thousand ($378 thousand net of tax) of accelerated depreciation expense related to the closing of our Operations Center and consolidation of the staff into our Administration building and equipment to an off-premises third party location.
Mr. Kennedy noted, “As we previously announced, John Babcock will join the Company, effective March 10, 2014, as the head of private wealth management. John is a proven leader in the wealth management space and will be a tremendous asset to the Company as we continue to execute our strategy.”
Finn Caspersen Jr., Senior Executive Vice President and Chief Operating Officer of the Company, commented, “We are pleased to now have all of our operations support staff consolidated into our Administration building and our core operating system equipment located at an off-premises third party location. These moves have created operating efficiencies; reduced risk from a disaster preparedness perspective; and created a savings relative to ongoing premises and equipment expenses.”
Net Interest Income and Margin
Net interest income was $14.53 million for the fourth quarter of 2013, reflecting an increase of $1.77 million from the same quarter last year. The net interest margin, on a fully tax-equivalent basis, was 3.26 percent for the December 2013 quarter compared to 3.42 percent for the December 2012 quarter.
Net interest income for the current 2013 quarter benefitted from significant loan growth during 2013, principally multifamily and commercial mortgage, funded by deposits, borrowings, and a decline in lower yielding investment securities and interest earning cash balances.
Net interest margin for the December 2013 quarter declined when compared to the December 2012 quarter due to the effect of low market yields, which compressed asset yields more than deposit costs. The 3.26 percent net interest margin for the December 2013 quarter showed only minor compression when compared to the 3.28 percent for the immediately preceding September 2013 quarter.
Average Loans/Loan Originations
For the fourth quarter of 2013, average loans totaled $1.49 billion as compared to $1.13 billion for the same quarter in 2012, reflecting an increase of $366 million, or 33 percent. The average commercial mortgage and commercial loan portfolio for the quarter ended December 2013 increased $358 million, or 68 percent, from the same quarter of 2012. The increase was attributable to a more concerted focus on this type of business in both the New Jersey and New York City markets, as well as demand from high-quality borrowers looking to refinance multifamily and other commercial mortgages held by other institutions.
Total loan originations were $243 million for the fourth quarter of 2013, up significantly from $116 million for the same quarter of 2012. Loan originations were $779 million for the twelve months ended December 31, 2013, also up significantly from $397 million for the same twelve month period of 2012. Included in the total were commercial mortgage (principally multifamily) / commercial loan originations of $551 million and $202 million for the twelve months and three months ended December 31, 2013, respectively, compared to $150 million and $55 million for the 2012 periods, respectively.
Mr. Kennedy said “We are focused on generating solid lending growth, and we have been successful. As part of our Strategic Plan, we introduced a comprehensive Commercial & Industrial (C&I) lending program and we have closed $97 million of volume for the year. We expect such volume to continue to increase in future periods. Further, our multifamily and commercial real estate lenders have generated significant closed volume and continue to maintain very robust pipelines.”
Average Deposits
For the December 2013 quarter, average total deposits (interest-bearing and noninterest-bearing) increased $216 million or 15 percent when compared to the same quarter last year. Over that same period, the Company saw growth in each of its deposit categories, except certificates of deposit. For the fourth quarter of 2013, average certificates of deposit (CDs) declined $23 million from the same 2012 quarter. These higher-cost CDs were replaced with lower-cost, more stable core deposits.
The Company continues to successfully focus on:
| - | Business and personal relationships; |
| - | Municipal relationships within its market territory; and |
| - | Growth in deposits associated with its private banking and its lending activities. |
Mr. Kennedy commented, “We will continue to place intense focus on providing high touch client service and growing our strong core deposit base. Service is a key differentiator for us that will enable us to grow our business. In addition, we now have a full array of Cash Management products in place that will help support our growth in C&I lending.”
Wealth Management Business
In the fourth quarter of 2013, Peapack-Gladstone Bank’s wealth management business generated $3.55 million in fee income compared to $2.93 million for the fourth quarter of 2012, reflecting growth of 21 percent. The market value of the assets under administration (AUA) of the wealth management division was $2.69 billion at December 31, 2013, up from $2.30 billion at December 31, 2012 and $2.58 billion reported at September 30, 2013. The growth in fee income and AUA was due to new business, market value improvement, as well as solid investment advisory and management.
Mr. Kennedy noted, “We were pleased with the results of our Delaware Trust & Investment subsidiary which ended the year with nearly $100 million in assets under administration.” Our wealth management business differentiates us from many of our competitors and adds significant value to our Company. Conversations with all clients and potential clients across all lines of business include a wealth discussion, which will help them to establish, maintain, and/or expand their legacy.
Other Noninterest Income
In the December 2013 quarter, other noninterest income, exclusive of wealth management fees and securities gains, totaled $1.30 million, reflecting a decrease of $42 thousand or 3 percent when compared to the same quarter a year ago. The fourth quarter of 2013 included $171 thousand of income from the sale of newly originated residential mortgage loans, down from $370 thousand in the same 2012 quarter. Mr. Kennedy noted, “Due to the rise in mortgage rates earlier this year, a decrease in residential mortgage loan originations and resultant mortgage banking income was expected and planned for. Reduced levels of mortgage banking income are expected to be ongoing. Fortunately, mortgage banking income is not a significant portion of revenue (under two percent of total revenue for the twelve months ended December 31, 2013). Further, we have reduced our overhead expense associated with mortgage banking; we have taken steps to improve our loan volume on the commercial front which has and will improve net interest income; and we have introduced Cash Management services/products, which we expect will contribute to noninterest income in the future.”
Securities gains were $125 thousand for the December 2013 quarter compared to $3.08 million for the December 2012 quarter. The December 2012 quarter included a $2.87 million gain on the Company’s negotiated sale of its entire pooled trust preferred securities portfolio.
Operating Expenses
The Company’s total operating expenses were $14.65 million for the fourth quarter of 2013 compared to $13.55 million in the same 2012 quarter. The 2013 quarter included the previously mentioned $204 thousand search fee for the new head of our Wealth Management Division and the $602 thousand accelerated depreciation expense related to the consolidation of the operations center staff and equipment. The 2012 quarter included a $929 thousand severance accrual related to certain senior management changes, and $336 thousand of costs related to the CEO search which brought Mr. Kennedy to the Company in October 2012. After excluding these items, operating expenses increased $1.59 million in the December 2013 quarter compared to the December 2012 quarter. Salary and benefits expense rose in the 2013 quarter from the 2012 quarter principally due to strategic hiring in line with the Company’s Strategic Plan, as well as normal salary increases and increased bonus/incentive and profit sharing accruals. The 2013 expense levels also included various professional and other fees associated with various training and consulting, some of which was associated with the Strategic Plan.
Mr. Kennedy noted, “We expected higher operating expenses in 2013 relative to 2012. We expect that the trend of higher operating expenses will continue in 2014 as we bring on high caliber revenue producers, and continue to invest in our infrastructure in line with our Strategic Plan. Further, we generally expect revenue and profitability related to new personnel to lag those expenses by several quarters. It is important to note, however, that we did see an improvement in revenue in each of the quarters this year, and particularly in the December 2013 quarter as our plan began to gain momentum later in the year.”
Provision for Loan Losses / Asset Quality
For the quarter ended December 31, 2013, the Company’s provision for loan losses was $1.33 million compared to a $4.53 million provision recorded in the fourth quarter of 2012. Charge-offs, net of recoveries, for the fourth quarter of 2013 were $8 thousand compared to $5.68 million for the December 2012 quarter. The 2012 charge-off level included charge-offs related to $19 million of classified loans strategically moved to loans held for sale at December 31, 2012. These loans were sold in the first quarter of 2013 resulting in a gain of $522 thousand.
At December 31, 2013 the allowance for loan losses was 232 percent of nonperforming loans and 0.98 percent of total loans. Nonperforming assets totaled $8.6 million or just 0.44 percent of total assets at December 31, 2013 compared to $15.2 million or 0.91 percent of assets at December 31, 2012. The 0.44 percent nonperforming asset ratio, at December 31, 2013, compares favorably to a 1.20 percent weighted average for all Mid-Atlantic banks.
Capital / Dividends
At December 31, 2013, after accounting for the capital raise, the Company’s leverage ratio, tier 1 and total risk based capital ratios were 9.00 percent, 14.07 percent and 15.33 percent, respectively. The Company’s ratios are all significantly above the levels required to be considered well-capitalized under regulatory guidelines applicable to banks. The Company’s common equity ratio (common equity to total assets) at December 31, 2013 was 8.68 percent of total assets, up when compared to 7.32 percent at December 31, 2012.
On January 23, 2014, the Board of Directors declared a regular cash dividend of $0.05 per share payable on February 21, 2014 to shareholders of record on February 6, 2014.
ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $1.97 billion as of December 31, 2013. Founded in 1921, Peapack-Gladstone Bank is a commercial bank that provides innovative private banking services to businesses, non-profits and consumers which help them to establish, maintain and expand their legacy. Through its private banking locations in Bedminster, Morristown, Princeton and Teaneck, its wealth management division, and its branch network and online platforms, Peapack-Gladstone Bank offers an unparalleled commitment to client service.
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
| · | inability to successfully grow our business and implement our strategic plan, including an inability to generate revenues to offset the increased personnel and other costs related to the strategic plan; |
| · | inability to manage our growth; |
| · | a continued or unexpected decline in the economy, in particular in our New Jersey and New York market areas; |
| · | declines in our net interest margin caused by the low interest rate and highly competitive market; |
| · | 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; |
| · | 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, Basel III 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 fund 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, 2012. 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 | |
| | Dec 31, | | | Sept 30, | | | June 30, | | | March 31, | | | Dec 31, | |
| | 2013 | | | 2013 | | | 2013 | | | 2013 | | | 2012 | |
ASSETS | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | $ | 6,534 | | | $ | 5,886 | | | $ | 5,978 | | | $ | 5,030 | | | $ | 6,733 | |
Federal funds sold | | | 101 | | | | 101 | | | | 101 | | | | 100 | | | | 100 | |
Interest-earning deposits | | | 28,512 | | | | 33,528 | | | | 60,783 | | | | 94,147 | | | | 112,395 | |
Total cash and cash equivalents | | | 35,147 | | | | 39,515 | | | | 66,862 | | | | 99,277 | | | | 119,228 | |
| | | | | | | | | | | | | | | | | | | | |
Securities held to maturity | | | — | | | | — | | | | — | | | | — | | | | — | |
Securities available for sale | | | 268,447 | | | | 273,952 | | | | 270,334 | | | | 283,448 | | | | 304,479 | |
FHLB and FRB Stock, at cost | | | 10,032 | | | | 7,707 | | | | 4,729 | | | | 4,643 | | | | 4,639 | |
| | | | | | | | | | | | | | | | | | | | |
Loans held for sale, at fair value | | | 2,001 | | | | 724 | | | | 4,684 | | | | 1,828 | | | | 6,461 | |
Loans held for sale, at lower of cost | | | | | | | | | | | | | | | | | | | | |
or fair value | | | — | | | | — | | | | — | | | | — | | | | 13,749 | |
| | | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 532,911 | | | | 527,927 | | | | 532,356 | | | | 523,051 | | | | 515,014 | |
Commercial mortgage | | | 831,997 | | | | 680,762 | | | | 534,371 | | | | 455,670 | | | | 420,086 | |
Commercial loans | | | 131,795 | | | | 110,843 | | | | 106,598 | | | | 105,305 | | | | 115,372 | |
Construction loans | | | 5,893 | | | | 8,390 | | | | 9,179 | | | | 9,180 | | | | 9,328 | |
Consumer loans | | | 21,852 | | | | 19,932 | | | | 19,552 | | | | 20,782 | | | | 21,188 | |
Home equity lines of credit | | | 47,905 | | | | 47,020 | | | | 47,583 | | | | 46,778 | | | | 49,635 | |
Other loans | | | 1,848 | | | | 2,075 | | | | 2,545 | | | | 997 | | | | 1,961 | |
Total loans | | | 1,574,201 | | | | 1,396,949 | | | | 1,252,184 | | | | 1,161,763 | | | | 1,132,584 | |
Less: Allowance for loan losses | | | 15,373 | | | | 14,056 | | | | 13,438 | | | | 13,279 | | | | 12,735 | |
Net loans | | | 1,558,828 | | | | 1,382,893 | | | | 1,238,746 | | | | 1,148,484 | | | | 1,119,849 | |
| | | | | | | | | | | | | | | | | | | | |
Premises and equipment | | | 28,990 | | | | 29,022 | | | | 29,021 | | | | 29,429 | | | | 30,030 | |
Other real estate owned | | | 1,941 | | | | 2,759 | | | | 3,347 | | | | 4,141 | | | | 3,496 | |
Accrued interest receivable | | | 4,086 | | | | 4,017 | | | | 3,972 | | | | 3,768 | | | | 3,864 | |
Bank owned life insurance | | | 31,882 | | | | 31,691 | | | | 31,490 | | | | 31,283 | | | | 31,088 | |
Deferred tax assets, net | | | 9,762 | | | | 7,951 | | | | 8,608 | | | | 10,384 | | | | 9,478 | |
Other assets | | | 15,832 | | | | 17,473 | | | | 17,797 | | | | 18,647 | | | | 21,475 | |
TOTAL ASSETS | | $ | 1,966,948 | | | $ | 1,797,704 | | | $ | 1,679,590 | | | $ | 1,635,332 | | | $ | 1,667,836 | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing | | | | | | | | | | | | | | | | | | | | |
demand deposits | | $ | 356,119 | | | $ | 345,736 | | | $ | 326,916 | | | $ | 307,730 | | | $ | 298,095 | |
Interest-bearing deposits | | | | | | | | | | | | | | | | | | | | |
Checking | | | 388,340 | | | | 338,626 | | | | 352,196 | | | | 336,934 | | | | 346,877 | |
Savings | | | 115,785 | | | | 115,571 | | | | 115,823 | | | | 114,804 | | | | 109,686 | |
Money market accounts | | | 630,173 | | | | 611,498 | | | | 559,439 | | | | 547,302 | | | | 583,197 | |
CD’s $100,000 and over | | | 61,128 | | | | 62,136 | | | | 65,607 | | | | 67,902 | | | | 68,741 | |
CD’s less than $100,000 | | | 95,705 | | | | 98,996 | | | | 102,945 | | | | 106,432 | | | | 109,831 | |
Total deposits | | | 1,647,250 | | | | 1,572,563 | | | | 1,522,926 | | | | 1,481,104 | | | | 1,516,427 | |
Overnight borrowings | | | 54,900 | | | | 30,361 | | | | — | | | | — | | | | — | |
Federal home loan bank advances | | | 74,692 | | | | 47,692 | | | | 12,000 | | | | 12,099 | | | | 12,218 | |
Capital lease obligation | | | 8,754 | | | | 8,809 | | | | 8,864 | | | | 8,918 | | | | 8,971 | |
Other Liabilities | | | 10,695 | | | | 11,861 | | | | 11,687 | | | | 8,605 | | | | 8,163 | |
TOTAL LIABILITIES | | | 1,796,291 | | | | 1,671,286 | | | | 1,555,477 | | | | 1,510,726 | | | | 1,545,779 | |
Shareholders’ equity | | | 170,657 | | | | 126,418 | | | | 124,113 | | | | 124,606 | | | | 122,057 | |
TOTAL LIABILITIES AND | | | | | | | | | | | | | | | | | | | | |
SHAREHOLDERS’ EQUITY | | $ | 1,966,948 | | | $ | 1,797,704 | | | $ | 1,679,590 | | | $ | 1,635,332 | | | $ | 1,667,836 | |
Assets under administration at | | | | | | | | | | | | | | | | | | | | |
PGB Trust & Investments | | | | | | | | | | | | | | | | | | | | |
(market value, not included | | | | | | | | | | | | | | | | | | | | |
above) | | $ | 2,690,601 | | | $ | 2,581,813 | | | $ | 2,520,424 | | | $ | 2,544,465 | | | $ | 2,303,612 | |
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
| | Dec 31, | | | Sept 30, | | | June 30, | | | March 31, | | | Dec 31, | |
| | 2013 | | | 2013 | | | 2013 | | | 2013 | | | 2012 | |
Asset Quality: | | | | | | | | | | | | | | | | | | | | |
Loans past due over 90 days | | | | | | | | | | | | | | | | | | | | |
and still accruing | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Nonaccrual loans | | | 6,630 | | | | 6,891 | | | | 8,075 | | | | 11,290 | | | | 11,732 | (C) |
Other real estate owned | | | 1,941 | | | | 2,759 | | | | 3,347 | | | | 4,141 | | | | 3,496 | |
Total nonperforming assets | | $ | 8,571 | | | $ | 9,650 | | | $ | 11,422 | | | $ | 15,431 | | | $ | 15,228 | (C) |
| | | | | | | | | | | | | | | | | | | | |
Nonperforming loans to | | | | | | | | | | | | | | | | | | | | |
total loans | | | 0.42% | | | | 0.49% | | | | 0.64% | | | | 0.97% | | | | 1.04% | (C) |
Nonperforming assets to | | | | | | | | | | | | | | | | | | | | |
total assets | | | 0.44% | | | | 0.54% | | | | 0.68% | | | | 0.94% | | | | 0.91% | (C) |
| | | | | | | | | | | | | | | | | | | | |
Accruing TDR’s (A) | | $ | 11,114 | | | $ | 6,133 | | | $ | 6,131 | | | $ | 5,986 | | | $ | 6,415 | (C) |
| | | | | | | | | | | | | | | | | | | | |
Loans past due 30 through 89 | | | | | | | | | | | | | | | | | | | | |
days and still accruing | | $ | 2,953 | | | $ | 2,039 | | | $ | 1,544 | | | $ | 1,791 | | | $ | 3,786 | |
| | | | | | | | | | | | | | | | | | | | |
Classified loans (B) | | $ | 33,827 | | | $ | 32,430 | | | | 32,123 | | | $ | 35,945 | | | $ | 32,014 | (C) |
| | | | | | | | | | | | | | | | | | | | |
Impaired loans (B) | | $ | 17,744 | | | $ | 16,794 | | | $ | 17,977 | | | $ | 21,046 | | | $ | 18,147 | (C) |
| | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | $ | 14,056 | | | $ | 13,438 | | | | 13,279 | | | $ | 12,735 | | | $ | 13,893 | |
Provision for loan losses | | | 1,325 | | | | 750 | | | | 500 | | | | 850 | | | | 4,525 | |
Charge-offs, net | | | (8 | ) | | | (132 | ) | | | (341 | ) | | | (306 | ) | | | (5,683 | ) |
End of period | | $ | 15,373 | | | $ | 14,056 | | | $ | 13,438 | | | $ | 13,279 | | | $ | 12,735 | |
| | | | | | | | | | | | | | | | | | | | |
ALLL to nonperforming loans | | | 231.87% | | | | 203.98% | | | | 166.41% | | | | 117.62% | | | | 108.55% | (C) |
ALLL to total loans | | | 0.98% | | | | 1.01% | | | | 1.07% | | | | 1.14% | | | | 1.12% | (C) |
| | | | | | | | | | | | | | | | | | | | |
Capital Adequacy: | | | | | | | | | | | | | | | | | | | | |
Tier I leverage | | | 9.00% | | | | 7.20% | | | | 7.39% | | | | 7.37% | | | | 7.27% | |
| | | | | | | | | | | | | | | | | | | | |
Tier I capital to risk-weighted assets | | | 14.07% | | | | 11.30% | | | | 11.84% | | | | 12.16% | | | | 11.83% | |
| | | | | | | | | | | | | | | | | | | | |
Tier I & II capital to | | | | | | | | | | | | | | | | | | | | |
risk-weighted assets | | | 15.33% | | | | 12.55% | | | | 13.09% | | | | 13.41% | | | | 13.08% | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Common equity to total assets | | | 8.68% | | | | 7.03% | | | | 7.39% | | | | 7.62% | | | | 7.32% | |
(End of period) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Book value per common share | | $ | 14.79 | | | $ | 14.12 | | | $ | 13.93 | | | $ | 14.05 | | | $ | 13.87 | |
| (A) | Does not include $2.9 million at December 31, 2013, $3.3 million at September 30, 2013, $3.3 million at June 30, 2013, $3.3 million at March 31, 2013 and $2.9 million at December 31, 2012 of TDR’s included in nonaccrual loans. |
| (B) | Classified loans include all impaired loans. Impaired loans include all nonaccrual loans and all TDRs. |
| (C) | Does not include classified Loans Held for Sale, as these loans were carried at lower of cost or fair value and were being marketed for sale as of 12/31/12. The sale closed during Q1 2013. |
PEAPACK-GLADSTONE FINANCIAL CORPORATION
LOANS CLOSED AND FUNDED
(Dollars in Thousands)
(Unaudited)
| | For the Quarters Ended | |
| | Dec 31, | | | Sept 30, | | | June 30, | | | March 31, | | | Dec 31, | |
| | 2013 | | | 2013 | | | 2013 | | | 2013 | | | 2012 | |
| | | | | | | | | | | | | | | |
Residential loans retained | | $ | 20,135 | | | $ | 31,517 | | | $ | 37,352 | | | $ | 31,430 | | | $ | 34,699 | |
Residential loans sold | | | 11,743 | | | | 13,516 | | | | 26,651 | | | | 25,402 | | | | 20,677 | |
Total residential loans | | | 31,878 | | | | 45,033 | | | | 64,003 | | | | 56,832 | | | | 55,376 | |
| | | | | | | | | | | | | | | | | | | | |
CRE | | | 11,972 | | | | 20,357 | | | | 17,080 | | | | 9,490 | | | | 13,125 | |
Multifamily | | | 152,456 | | | | 143,727 | | | | 70,645 | | | | 27,880 | | | | 39,160 | |
Commercial loans | | | 37,188 | | | | 38,433 | | | | 7,120 | | | | 14,493 | | | | 2,790 | |
| | | | | | | | | | | | | | | | | | | | |
Small business banking & | | | | | | | | | | | | | | | | | | | | |
Installment loans | | | 5,427 | | | | 4,710 | | | | 2,866 | | | | 2,693 | | | | 2,657 | |
| | | | | | | | | | | | | | | | | | | | |
Home equity lines of credit | | | 3,746 | | | | 3,982 | | | | 2,619 | | | | 4,452 | | | | 2,501 | |
| | | | | | | | | | | | | | | | | | | | |
Total loan originations | | $ | 242,667 | | | $ | 256,242 | | | $ | 164,333 | | | $ | 115,840 | | | $ | 115,609 | |
| | For the Twelve Months Ended | |
| | Dec 31, | | | Dec 31, | |
| | 2013 | | | 2012 | |
| | | | | | |
Residential loans retained | | $ | 120,434 | | | $ | 140,504 | |
Residential loans sold | | | 77,312 | | | | 79,737 | |
Total residential loans | | | 197,746 | | | | 220,241 | |
| | | | | | | | |
CRE | | | 58,899 | | | | 64,072 | |
Multifamily | | | 394,707 | | | | 69,360 | |
Commercial loans | | | 97,234 | | | | 16,864 | |
| | | | | | | | |
Small business banking & | | | | | | | | |
Installment loans | | | 15,696 | | | | 12,673 | |
| | | | | | | | |
Home equity lines of credit | | | 14,799 | | | | 13,460 | |
| | | | | | | | |
Total loan originations | | $ | 779,081 | | | $ | 396,670 | |
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
| | Dec 31, | | | Sept 30, | | | June 30, | | | March 31, | | | Dec 31, | |
| | 2013 | | | 2013 | | | 2013 | | | 2013 | | | 2012 | |
Income Statement Data: | | | | | | | | | | | | | | | | | | | | |
Interest income | | $ | 15,738 | | | $ | 14,423 | | | $ | 13,460 | | | $ | 13,432 | | | $ | 13,792 | |
Interest expense | | | 1,210 | | | | 1,050 | | | | 1,012 | | | | 1,005 | | | | 1,033 | |
Net interest income | | | 14,528 | | | | 13,373 | | | | 12,448 | | | | 12,427 | | | | 12,759 | |
Provision for loan losses | | | 1,325 | | | | 750 | | | | 500 | | | | 850 | | | | 4,525 | |
Net interest income after | | | | | | | | | | | | | | | | | | | | |
provision for loan losses | | | 13,203 | | | | 12,623 | | | | 11,948 | | | | 11,577 | | | | 8,234 | |
Trust fees | | | 3,547 | | | | 3,295 | | | | 3,628 | | | | 3,368 | | | | 2,929 | |
Gain on sale of classified loans | | | — | | | | — | | | | — | | | | 522 | | | | — | |
Gain on loans sold (Mortgage | | | | | | | | | | | | | | | | | | | | |
Banking) | | | 171 | | | | 277 | | | | 412 | | | | 470 | | | | 370 | |
Other income | | | 1,130 | | | | 1,022 | | | | 958 | | | | 955 | | | | 973 | |
Securities gains, net | | | 125 | | | | 188 | | | | 238 | | | | 289 | | | | 3,078 | |
Total other income | | | 4,973 | | | | 4,782 | | | | 5,236 | | | | 5,604 | | | | 7,350 | |
Salaries and employee benefits | | | 8,308 | | | | 8,927 | | | | 7,935 | | | | 7,079 | | | | 8,045 | |
Premises and equipment | | | 2,947 | | | | 2,325 | | | | 2,338 | | | | 2,304 | | | | 2,433 | |
FDIC insurance expense | | | 286 | | | | 275 | | | | 280 | | | | 280 | | | | 267 | |
Other expenses | | | 3,105 | | | | 2,638 | | | | 3,526 | | | | 2,630 | | | | 2,808 | |
Total operating expenses | | | 14,646 | | | | 14,165 | | | | 14,079 | | | | 12,293 | | | | 13,553 | |
Income before income taxes | | | 3,530 | | | | 3,240 | | | | 3,105 | | | | 4,888 | | | | 2,031 | |
Income tax expense | | | 1,135 | | | | 1,276 | | | | 1,096 | | | | 1,995 | | | | 973 | |
Net income | | | 2,395 | | | | 1,964 | | | | 2,009 | | | | 2,893 | | | | 1,058 | |
Dividends and accretion | | | | | | | | | | | | | | | | | | | | |
on preferred stock | | | — | | | | — | | | | — | | | | — | | | | — | |
Net income available to | | | | | | | | | | | | | | | | | | | | |
common shareholders | | $ | 2,395 | | | $ | 1,964 | | | $ | 2,009 | | | $ | 2,893 | | | | $$1,058 | |
| | | | | | | | | | | | | | | | | | | | |
Total revenue | | $ | 19,501 | | | $ | 18,155 | | | $ | 17,684 | | | $ | 17,509 | (A) | | $ | 17,239 | (B) |
(See footnotes below) | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Per Common Share Data: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Earnings per share (basic) | | $ | 0.25 | | | $ | 0.22 | | | $ | 0.23 | | | $ | 0.33 | | | $ | 0.12 | |
Earnings per share (diluted) | | | 0.25 | | | | 0.22 | | | | 0.22 | | | | 0.32 | | | | 0.12 | |
| | | | | | | | | | | | | | | | | | | | |
Performance Ratios: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | 0.51% | | | | 0.45% | | | | 0.48% | | | | 0.71% | | | | 0.26% | |
Return on average common | | | | | | | | | | | | | | | | | | | | |
equity | | | 7.42% | | | | 6.28% | | | | 6.41% | | | | 9.40% | | | | 3.52% | |
| | | | | | | | | | | | | | | | | | | | |
Net interest margin | | | | | | | | | | | | | | | | | | | | |
(Taxable equivalent basis) | | | 3.26% | | | | 3.28% | | | | 3.22% | | | | 3.28% | | | | 3.42% | |
| | | | | | | | | | | | | | | | | | | | |
| (A) | Excludes a $522 thousand gain from sale of classified loans. Including this gain, total revenue was $18,031. |
| (B) | Excludes a $2.9 million gain from sale of the Company’s Pooled Trust Preferred Securities portfolio. Including this gain, total revenue was $20,109. |
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
| | For the | |
| | Twelve Months Ended | |
| | December 31, | |
| | 2013 | | | 2012 | |
Income Statement Data: | | | | | | | | |
Interest income | | $ | 57,053 | | | $ | 56,090 | |
Interest expense | | | 4,277 | | | | 4,687 | |
Net interest income | | | 52,776 | | | | 51,403 | |
Provision for loan losses | | | 3,425 | | | | 8,275 | |
Net interest income after | | | | | | | | |
provision for loan losses | | | 49,351 | | | | 43,128 | |
Trust fees | | | 13,838 | | | | 12,282 | |
Gain on sale of classified loans | | | 522 | | | | — | |
Gain on loans sold (Mortgage Banking) | | | 1,330 | | | | 1,195 | |
Other income | | | 4,065 | | | | 4,016 | |
Securities gains, net | | | 840 | | | | 3,810 | |
Total other income | | | 20,595 | | | | 21,303 | |
Salaries and employee benefits | | | 32,249 | | | | 27,595 | |
Premises and equipment | | | 9,914 | | | | 9,467 | |
FDIC insurance expense | | | 1,121 | | | | 1,208 | |
Other expenses | | | 11,899 | | | | 10,060 | |
Total operating expenses | | | 55,183 | | | | 48,330 | |
Income before income taxes | | | 14,763 | | | | 16,101 | |
Income tax expense | | | 5,502 | | | | 6,405 | |
Net income | | | 9,261 | | | | 9,696 | |
Dividends and accretion | | | | | | | | |
on preferred stock | | | — | | | | 474 | |
Net income available to | | | | | | | | |
common shareholders | | $ | 9,261 | | | $ | 9,222 | |
| | | | | | | | |
Total revenue | | $ | 72,849 | (A) | | $ | 69,836 | (B) |
(See footnotes below) | | | | | | | | |
| | | | | | | | |
Per Common Share Data: | | | | | | | | |
| | | | | | | | |
Earnings per share (basic) | | $ | 1.02 | | | $ | 1.05 | |
Earnings per share (diluted) | | | 1.01 | | | | 1.05 | |
| | | | | | | | |
Performance Ratios: | | | | | | | | |
| | | | | | | | |
Return on average assets | | | 0.54% | | | | 0.61% | |
Return on average common equity | | | 7.37% | | | | 8.03% | |
| | | | | | | | |
Net interest margin | | | | | | | | |
(Tax equivalent basis) | | | 3.26% | | | | 3.50% | |
| (A) | Excludes a $522 thousand gain from sale of classified loans in the March 2013 quarter. Including this gain, total revenue would have been $73,371. |
| (B) | Excludes a $2.87 million gain from sale of the Company’s Pooled Trust Preferred Securities portfolio in the December 2012 quarter. Including this gain, total revenue would have been $72,706. |
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
| | December 31, 2013 | | | December 31, 2012 | |
| | Average | | | Income/ | | | | | | Average | | | Income/ | | | | |
| | Balance | | | Expense | | | Yield | | | Balance | | | Expense | | | Yield | |
ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Investments: | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable (1) | | $ | 213,779 | | | $ | 1,103 | | | | 2.06 | % | | $ | 267,890 | | | $ | 1,423 | | | | 2.12 | % |
Tax-exempt (1) (2) | | | 57,358 | | | | 333 | | | | 2.32 | | | | 47,262 | | | | 327 | | | | 2.77 | |
Loans held for sale | | | 1,186 | | | | 17 | | | | 5.76 | | | | 4,355 | | | | 48 | | | | 4.40 | |
Loans (2) (3) | | | 1,491,667 | | | | 14,422 | | | | 3.87 | | | | 1,125,490 | | | | 12,107 | | | | 4.30 | |
Federal funds sold | | | 101 | | | | — | | | | 0.10 | | | | 100 | | | | — | | | | 0.10 | |
Interest-earning deposits | | | 38,351 | | | | 17 | | | | 0.18 | | | | 66,942 | | | | 41 | | | | 0.24 | |
Total interest-earning | | | | | | | | | | | | | | | | | | | | | | | | |
assets | | | 1,802,442 | | | $ | 15,892 | | | | 3.53 | % | | | 1,512,039 | | | $ | 13,946 | | | | 3.69 | % |
Noninterest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | 6,217 | | | | | | | | | | | | 6,885 | | | | | | | | | |
Allowance for loan losses | | | (14,385 | ) | | | | | | | | | | | (14,020 | ) | | | | | | | | |
Premises and equipment | | | 29,220 | | | | | | | | | | | | 30,350 | | | | | | | | | |
Other assets | | | 64,818 | | | | | | | | | | | | 76,251 | | | | | | | | | |
Total noninterest-earning | | | | | | | | | | | | | | | | | | | | | | | | |
assets | | | 85,870 | | | | | | | | | | | | 99,466 | | | | | | | | | |
Total assets | | $ | 1,888,312 | | | | | | | | | | | $ | 1,611,505 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Bearing Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
Checking | | $ | 410,409 | | | $ | 98 | | | | 0.10 | % | | $ | 346,373 | | | $ | 87 | | | | 0.10 | % |
Money markets | | | 629,580 | | | | 319 | | | | 0.20 | | | | 517,470 | | | | 202 | | | | 0.16 | |
Savings | | | 115,186 | | | | 15 | | | | 0.05 | | | | 105,228 | | | | 14 | | | | 0.05 | |
Certificates of deposit | | | 158,085 | | | | 393 | | | | 0.99 | | | | 180,941 | | | | 528 | | | | 1.17 | |
Total interest-bearing | | | | | | | | | | | | | | | | | | | | | | | | |
deposits | | | 1,313,260 | | | | 825 | | | | 0.25 | | | | 1,150,012 | | | | 831 | | | | 0.29 | |
Borrowings | | | 61,585 | | | | 281 | | | | 1.83 | | | | 12,258 | | | | 95 | | | | 3.10 | |
Capital lease obligation | | | 8,773 | | | | 104 | | | | 4.74 | | | | 8,990 | | | | 107 | | | | 4.76 | |
Total interest-bearing | | | | | | | | | | | | | | | | | | | | | | | | |
liabilities | | | 1,383,618 | | | | 1,210 | | | | 0.35 | | | | 1,171,260 | | | | 1,033 | | | | 0.35 | |
Noninterest –Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Demand deposits | | | 364,463 | | | | | | | | | | | | 311,920 | | | | | | | | | |
Accrued expenses and | | | | | | | | | | | | | | | | | | | | | | | | |
other liabilities | | | 11,159 | | | | | | | | | | | | 8,144 | | | | | | | | | |
Total noninterest-bearing | | | | | | | | | | | | | | | | | | | | | | | | |
liabilities | | | 375,622 | | | | | | | | | | | | 320,064 | | | | | | | | | |
Shareholders’ equity | | | 129,072 | | | | | | | | | | | | 120,181 | | | | | | | | | |
Total liabilities and | | | | | | | | | | | | | | | | | | | | | | | | |
shareholders’ equity | | $ | 1,888,312 | | | | | | | | | | | $ | 1,611,505 | | | | | | | | | |
Net interest income | | | | | | $ | 14,682 | | | | | | | | | | | $ | 12,913 | | | | | |
Net interest spread | | | | | | | | | | | 3.18 | % | | | | | | | | | | | 3.34 | % |
Net interest margin (4) | | | | | | | | | | | 3.26 | % | | | | | | | | | | | 3.42 | % |
| (1) | Average balances for available for sale securities are based on amortized cost. |
| (2) | Interest income is presented on a tax-equivalent basis using a 35 percent federal tax rate. |
| (3) | Loans are stated net of unearned income and include nonaccrual loans. |
| (4) | Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets. |
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
| | December 31, 2013 | | | September 30, 2013 | |
| | Average | | | Income/ | | | | | | Average | | | Income/ | | | | |
| | Balance | | | Expense | | | Yield | | | Balance | | | Expense | | | Yield | |
ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Investments: | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable (1) | | $ | 213,779 | | | $ | 1,103 | | | | 2.06 | % | | $ | 237,559 | | | $ | 1,141 | | | | 1.92 | % |
Tax-exempt (1) (2) | | | 57,358 | | | | 333 | | | | 2.32 | | | | 54,465 | | | | 328 | | | | 2.41 | |
Loans held for sale | | | 1,186 | | | | 17 | | | | 5.76 | | | | 1,617 | | | | 21 | | | | 5.27 | |
Loans (2) (3) | | | 1,491,667 | | | | 14,422 | | | | 3.87 | | | | 1,322,842 | | | | 13,065 | | | | 3.95 | |
Federal funds sold | | | 101 | | | | — | | | | 0.10 | | | | 101 | | | | — | | | | 0.10 | |
Interest-earning deposits | | | 38,351 | | | | 17 | | | | 0.18 | | | | 35,168 | | | | 21 | | | | 0.24 | |
Total interest-earning | | | | | | | | | | | | | | | | | | | | | | | | |
assets | | | 1,802,442 | | | $ | 15,892 | | | | 3.53 | % | | | 1,651,752 | | | $ | 14,576 | | | | 3.53 | % |
Noninterest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | 6,217 | | | | | | | | | | | | 5,962 | | | | | | | | | |
Allowance for loan losses | | | (14,385 | ) | | | | | | | | | | | (13,615 | ) | | | | | | | | |
Premises and equipment | | | 29,220 | | | | | | | | | | | | 28,984 | | | | | | | | | |
Other assets | | | 64,818 | | | | | | | | | | | | 65,163 | | | | | | | | | |
Total noninterest-earning | | | | | | | | | | | | | | | | | | | | | | | | |
assets | | | 85,870 | | | | | | | | | | | | 86,494 | | | | | | | | | |
Total assets | | $ | 1,888,312 | | | | | | | | | | | $ | 1,738,246 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Bearing Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
Checking | | $ | 410,409 | | | $ | 98 | | | | 0.10 | % | | $ | 349,392 | | | $ | 73 | | | | 0.08 | % |
Money markets | | | 629,580 | | | | 319 | | | | 0.20 | | | | 580,819 | | | | 275 | | | | 0.19 | |
Savings | | | 115,186 | | | | 15 | | | | 0.05 | | | | 115,711 | | | | 15 | | | | 0.05 | |
Certificates of deposit | | | 158,085 | | | | 393 | | | | 0.99 | | | | 165,347 | | | | 444 | | | | 1.07 | |
Total interest-bearing | | | | | | | | | | | | | | | | | | | | | | | | |
deposits | | | 1,313,260 | | | | 825 | | | | 0.25 | | | | 1,211,269 | | | | 807 | | | | 0.27 | |
Borrowings | | | 61,585 | | | | 281 | | | | 1.83 | | | | 45,149 | | | | 138 | | | | 1.22 | |
Capital lease obligation | | | 8,773 | | | | 104 | | | | 4.74 | | | | 8,828 | | | | 105 | | | | 4.76 | |
Total interest-bearing | | | | | | | | | | | | | | | | | | | | | | | | |
liabilities | | | 1,383,618 | | | | 1,210 | | | | 0.35 | | | | 1,265,246 | | | | 1,050 | | | | 0.33 | |
Noninterest –Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Demand deposits | | | 364,463 | | | | | | | | | | | | 337,684 | | | | | | | | | |
Accrued expenses and | | | | | | | | | | | | | | | | | | | | | | | | |
other liabilities | | | 11,159 | | | | | | | | | | | | 10,241 | | | | | | | | | |
Total noninterest-bearing | | | | | | | | | | | | | | | | | | | | | | | | |
liabilities | | | 375,622 | | | | | | | | | | | | 347,925 | | | | | | | | | |
Shareholders’ equity | | | 129,072 | | | | | | | | | | | | 125,075 | | | | | | | | | |
Total liabilities and | | | | | | | | | | | | | | | | | | | | | | | | |
shareholders’ equity | | $ | 1,888,312 | | | | | | | | | | | $ | 1,738,246 | | | | | | | | | |
Net interest income | | | | | | $ | 14,682 | | | | | | | | | | | $ | 13,526 | | | | | |
Net interest spread | | | | | | | | | | | 3.18 | % | | | | | | | | | | | 3.20 | % |
Net interest margin (4) | | | | | | | | | | | 3.26 | % | | | | | | | | | | | 3.28 | % |
| (1) | Average balances for available for sale securities are based on amortized cost. |
| (2) | Interest income is presented on a tax-equivalent basis using a 35 percent federal tax rate. |
| (3) | Loans are stated net of unearned income and include nonaccrual loans. |
| (4) | Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets. |
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
TWELVE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
| | December 31, 2013 | | | December 31, 2012 | |
| �� | Average | | | Income/ | | | | | | Average | | | Income/ | | | | |
| | Balance | | | Expense | | | Yield | | | Balance | | | Expense | | | Yield | |
ASSETS: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Investments: | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable (1) | | $ | 230,158 | | | $ | 4,606 | | | | 2.00 | % | | $ | 303,599 | | | $ | 7,033 | | | | 2.32 | % |
Tax-exempt (1) (2) | | | 53,038 | | | | 1,307 | | | | 2.46 | | | | 46,780 | | | | 1,363 | | | | 2.91 | |
Loans held for sale | | | 5,498 | | | | 285 | | | | 5.18 | | | | 2,487 | | | | 123 | | | | 4.94 | |
Loans (2) (3) | | | 1,290,247 | | | | 51,311 | | | | 3.98 | | | | 1,094,696 | | | | 48,112 | | | | 4.40 | |
Federal funds sold | | | 101 | | | | — | | | | 0.10 | | | | 100 | | | | — | | | | 0.10 | |
Interest-earning deposits | | | 60,685 | | | | 152 | | | | 0.25 | | | | 41,303 | | | | 98 | | | | 0.24 | |
Total interest-earning | | | | | | | | | | | | | | | | | | | | | | | | |
assets | | | 1,639,727 | | | $ | 57,661 | | | | 3.52 | % | | | 1,488,965 | | | $ | 56,729 | | | | 3.81 | % |
Noninterest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and due from banks | | | 5,970 | | | | | | | | | | | | 6,506 | | | | | | | | | |
Allowance for loan losses | | | (13,653 | ) | | | | | | | | | | | (13,942 | ) | | | | | | | | |
Premises and equipment | | | 29,312 | | | | | | | | | | | | 31,049 | | | | | | | | | |
Other assets | | | 69,197 | | | | | | | | | | | | 77,048 | | | | | | | | | |
Total noninterest-earning | | | | | | | | | | | | | | | | | | | | | | | | |
assets | | | 90,826 | | | | | | | | | | | | 100,661 | | | | | | | | | |
Total assets | | $ | 1,730,553 | | | | | | | | | | | $ | 1,589,626 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Bearing Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
Checking | | $ | 366,703 | | | $ | 323 | | | | 0.09 | % | | $ | 336,228 | | | $ | 379 | | | | 0.11 | % |
Money markets | | | 578,819 | | | | 1,048 | | | | 0.18 | | | | 510,633 | | | | 1,022 | | | | 0.20 | |
Savings | | | 113,914 | | | | 59 | | | | 0.05 | | | | 101,068 | | | | 70 | | | | 0.07 | |
Certificates of deposit | | | 167,921 | | | | 1,823 | | | | 1.09 | | | | 188,918 | | | | 2,237 | | | | 1.18 | |
Total interest-bearing | | | | | | | | | | | | | | | | | | | | | | | | |
deposits | | | 1,227,357 | | | | 3,253 | | | | 0.27 | | | | 1,136,847 | | | | 3,708 | | | | 0.33 | |
Borrowings | | | 32,894 | | | | 603 | | | | 1.83 | | | | 25,277 | | | | 548 | | | | 2.17 | |
Capital lease obligation | | | 8,855 | | | | 421 | | | | 4.75 | | | | 9,067 | | | | 431 | | | | 4.75 | |
Total interest-bearing | | | | | | | | | | | | | | | | | | | | | | | | |
liabilities | | | 1,269,106 | | | | 4,277 | | | | 0.34 | | | | 1,171,191 | | | | 4,687 | | | | 0.40 | |
Noninterest –Bearing | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Demand deposits | | | 326,286 | | | | | | | | | | | | 296,250 | | | | | | | | | |
Accrued expenses and | | | | | | | | | | | | | | | | | | | | | | | | |
other liabilities | | | 9,460 | | | | | | | | | | | | 6,977 | | | | | | | | | |
Total noninterest-bearing | | | | | | | | | | | | | | | | | | | | | | | | |
liabilities | | | 335,746 | | | | | | | | | | | | 303,227 | | | | | | | | | |
Shareholders’ equity | | | 125,701 | | | | | | | | | | | | 115,208 | | | | | | | | | |
Total liabilities and | | | | | | | | | | | | | | | | | | | | | | | | |
shareholders’ equity | | $ | 1,730,553 | | | | | | | | | | | $ | 1,589,626 | | | | | | | | | |
Net interest income | | | | | | $ | 53,384 | | | | | | | | | | | $ | 52,042 | | | | | |
Net interest spread | | | | | | | | | | | 3.18 | % | | | | | | | | | | | 3.41 | % |
Net interest margin (4) | | | | | | | | | | | 3.26 | % | | | | | | | | | | | 3.50 | % |
| (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. |