Exhibit 99.1
Contact:
Jeffrey J. Carfora, SEVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-719-4308
PEAPACK-GLADSTONE FINANCIAL CORPORATION
REPORTS STRONG SECOND QUARTER RESULTS, AS
NET INTEREST MARGIN CONTINUES TO EXPAND
Bedminster, N.J. – July 29, 2022 – Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the “Company”) announces its second quarter 2022 results.
This earnings release should be read in conjunction with the Company’s Q2 2022 Investor Update, a copy of which is available on our website at www.pgbank.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.
The Company recorded total revenue of $61.40 million, net income of $20.10 million and diluted earnings per share (“EPS”) of $1.08 for the quarter ended June 30, 2022, compared to revenue of $51.52 million, net income of $14.42 million and diluted EPS of $0.74 for the three months ended June 30, 2021.
The Company’s return on average assets, return on average equity, and return on average tangible equity totaled 1.30%, 15.43% and 17.00%, respectively, for the June 2022 quarter.
The June 2022 quarter results were driven by improvement in net interest income and net interest margin, which improved 45 basis points compared to the June 2021 quarter (and 14 basis points compared to the March 2022 quarter).
The June 2022 quarter also included increases in wealth management fee income and SBA fee income, when compared to the June 2021 quarter.
Douglas L. Kennedy, President and CEO said, “Our second quarter 2022 results reflect the asset sensitivity of our balance sheet, as loans continued to reprice upward in the rising rate environment.”
The following are select highlights:
Peapack Private Wealth Management:
Commercial Banking and Balance Sheet Management:
1
Capital Management:
SUMMARY INCOME STATEMENT DETAILS:
The following tables summarize specified financial details for the periods shown.
June 2022 Year Compared to Prior Year
|
| Six Months Ended |
|
| Six Months Ended |
|
|
|
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|
|
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| ||||
|
| June 30, |
|
| June 30, |
|
|
| Increase/ |
| |||||||
(Dollars in millions, except per share data) |
| 2022 |
|
| 2021 |
|
|
| (Decrease) |
| |||||||
Net interest income |
| $ | 82.51 |
|
| $ | 65.64 |
|
|
| $ | 16.87 |
|
|
| 26 | % |
Wealth management fee income (A) |
|
| 28.72 |
|
|
| 25.17 |
|
|
|
| 3.55 |
|
|
| 14 |
|
Capital markets activity (B) |
|
| 7.51 |
|
|
| 5.03 |
|
|
|
| 2.48 |
|
|
| 49 |
|
Other income (C) |
|
| (3.01 | ) |
|
| 5.30 |
|
|
|
| (8.31 | ) |
|
| (157 | ) |
Total other income |
|
| 33.22 |
|
|
| 35.50 |
|
|
|
| (2.28 | ) |
|
| (6 | ) |
Operating expenses (A) (D) |
|
| 66.83 |
|
|
| 62.28 |
|
|
|
| 4.55 |
|
|
| 7 |
|
Pretax income before provision for credit losses |
|
| 48.90 |
|
|
| 38.86 |
|
|
|
| 10.04 |
|
|
| 26 |
|
Provision for credit losses |
|
| 3.82 |
|
|
| 1.13 |
|
|
|
| 2.69 |
|
|
| 238 |
|
Pretax income |
|
| 45.08 |
|
|
| 37.73 |
|
|
|
| 7.35 |
|
|
| 19 |
|
Income tax expense/(benefit) |
|
| 11.54 |
|
|
| 10.13 |
|
|
|
| 1.41 |
|
|
| 14 |
|
Net income |
| $ | 33.54 |
|
| $ | 27.60 |
|
|
| $ | 5.94 |
|
|
| 22 | % |
Diluted EPS |
| $ | 1.79 |
|
| $ | 1.42 |
|
|
| $ | 0.37 |
|
|
| 26 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Revenue (E) |
| $ | 115.73 |
|
| $ | 101.14 |
|
|
| $ | 14.59 |
|
|
| 14 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Return on average assets annualized |
|
| 1.09 | % |
|
| 0.93 | % |
|
|
| 0.16 |
|
|
|
| |
Return on average equity annualized |
|
| 12.59 | % |
|
| 10.45 | % |
|
|
| 2.14 |
|
|
|
|
2
June 2022 Quarter Compared to Prior Year Quarter
|
| Three Months Ended |
|
|
| Three Months Ended |
|
|
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|
| June 30, |
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|
| June 30, |
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| Increase/ |
| |||||||
(Dollars in millions, except per share data) |
| 2022 |
|
|
| 2021 |
|
| (Decrease) |
| |||||||
Net interest income |
| $ | 42.89 |
|
|
| $ | 33.85 |
|
| $ | 9.04 |
|
|
| 27 | % |
Wealth management fee income (A) |
|
| 13.89 |
|
|
|
| 13.03 |
|
|
| 0.86 |
|
|
| 7 |
|
Capital markets activity (B) |
|
| 2.86 |
|
|
|
| 1.46 |
|
|
| 1.40 |
|
|
| 96 |
|
Other income (C) |
|
| 1.76 |
|
|
|
| 3.18 |
|
|
| (1.42 | ) |
|
| (45 | ) |
Total other income |
|
| 18.51 |
|
|
|
| 17.67 |
|
|
| 0.84 |
|
|
| 5 |
|
Operating expenses (A) (D) |
|
| 32.66 |
|
|
|
| 30.68 |
|
|
| 1.98 |
|
|
| 6 |
|
Pretax income before provision for credit losses |
|
| 28.74 |
|
|
|
| 20.84 |
|
|
| 7.90 |
|
|
| 38 |
|
Provision for credit losses |
|
| 1.45 |
|
|
|
| 0.90 |
|
|
| 0.55 |
|
|
| 61 |
|
Pretax income |
|
| 27.29 |
|
|
|
| 19.94 |
|
|
| 7.35 |
|
|
| 37 |
|
Income tax expense |
|
| 7.19 |
|
|
|
| 5.52 |
|
|
| 1.67 |
|
|
| 30 |
|
Net income |
| $ | 20.10 |
|
|
| $ | 14.42 |
|
| $ | 5.68 |
|
|
| 39 | % |
Diluted EPS |
| $ | 1.08 |
|
|
| $ | 0.74 |
|
| $ | 0.34 |
|
|
| 46 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Revenue (E) |
| $ | 61.40 |
|
|
| $ | 51.52 |
|
| $ | 9.88 |
|
|
| 19 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
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Return on average assets annualized |
|
| 1.30 | % |
|
|
| 0.97 | % |
|
| 0.33 |
|
|
|
| |
Return on average equity annualized |
|
| 15.43 | % |
|
|
| 10.86 | % |
|
| 4.57 |
|
|
|
|
3
June 2022 Quarter Compared to Linked Quarter
|
| Three Months Ended |
|
| Three Months Ended |
|
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|
| June 30, |
|
| March 31, |
|
|
| Increase/ |
| |||||||
(Dollars in millions, except per share data) |
| 2022 |
|
| 2022 |
|
|
| (Decrease) |
| |||||||
Net interest income |
| $ | 42.89 |
|
| $ | 39.62 |
|
|
| $ | 3.27 |
|
|
| 8 | % |
Wealth management fee income |
|
| 13.89 |
|
|
| 14.83 |
|
|
|
| (0.94 | ) |
|
| (6 | ) |
Capital markets activity (A) |
|
| 2.86 |
|
|
| 4.65 |
|
|
|
| (1.79 | ) |
|
| (38 | ) |
Other income (B) |
|
| 1.76 |
|
|
| (4.77 | ) |
|
|
| 6.53 |
|
| N/A |
| |
Total other income |
|
| 18.51 |
|
|
| 14.71 |
|
|
|
| 3.80 |
|
|
| 26 |
|
Operating expenses (C) |
|
| 32.66 |
|
|
| 34.17 |
|
|
|
| (1.51 | ) |
|
| (4 | ) |
Pretax income before provision for credit losses |
|
| 28.74 |
|
|
| 20.16 |
|
|
|
| 8.58 |
|
|
| 43 |
|
Provision for credit losses |
|
| 1.45 |
|
|
| 2.37 |
|
|
|
| (0.92 | ) |
|
| (39 | ) |
Pretax income |
|
| 27.29 |
|
|
| 17.79 |
|
|
|
| 9.50 |
|
|
| 53 |
|
Income tax expense |
|
| 7.19 |
|
|
| 4.35 |
|
|
|
| 2.84 |
|
|
| 65 |
|
Net income |
| $ | 20.10 |
|
| $ | 13.44 |
|
|
| $ | 6.66 |
|
|
| 50 | % |
Diluted EPS |
| $ | 1.08 |
|
| $ | 0.71 |
|
|
| $ | 0.37 |
|
|
| 52 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total Revenue (D) |
| $ | 61.40 |
|
| $ | 54.33 |
|
|
| $ | 7.07 |
|
|
| 13 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Return on average assets annualized |
|
| 1.30 | % |
|
| 0.87 | % |
|
|
| 0.43 |
|
|
|
| |
Return on average equity annualized |
|
| 15.43 | % |
|
| 9.88 | % |
|
|
| 5.55 |
|
|
|
|
SUPPLEMENTAL QUARTERLY DETAILS:
Peapack Private Wealth Management
In the June 2022 quarter, the Bank’s wealth management business, Peapack Private Wealth Management ("PPWM"), generated $13.89 million in fee income, compared to $14.83 million for the March 31, 2022 quarter and $13.03 million for the June 2021 quarter. Continued market declines in 2022 further impacted the results in the June 2022 quarter, as the S&P was down another 16% in Q2 2022 (and YTD down 21%).
John Babcock, President of Peapack Private Wealth Managed noted, “Our business is sound and continues to attract new clients as well as additions from existing relationships, despite overall market declines in the first half of the year. In Q2 2022, total new accounts and client additions totaled $210 million which brings our six-month 2022 total to a record $556 million. As we enter Q3 2022, our new business pipeline is strong. Our highly skilled professionals, our fiduciary powers and expertise, our financial planning capabilities and our high-touch client service model distinguishes PPWM in our market and are the drivers behind our growth and success. Additionally, as noted last quarter, we are nearing the completion of our integration of our eight acquisitions made since 2015 into a singular organizational structure and operating platform.”
Loans / Commercial Banking
Total loans grew 7% (13% annualized) to $5.17 billion at June 30, 2022 compared to $4.84 billion at December 31, 2021; and grew 13% from $4.58 billion at June 30, 2021.
Total C&I loans and leases at June 30, 2022 were $2.05 billion or 40% of the total loan portfolio.
4
Mr. Kennedy noted, “Our loan growth has been strong however, given economic uncertainty and rising interest rates, we believe loan demand will subside somewhat. Further, we have tightened our initial underwriting in anticipation of a potential economic downturn and higher rate environment. Given that, we believe we will achieve modest growth for the remainder of 2022, resulting in mid to high single digit growth for all of 2022.”
Mr. Kennedy also noted, “We are proud to have built a leading middle market commercial banking franchise, as evidenced by our C&I Portfolio, Treasury Management services, and Corporate Advisory and SBA businesses.”
Net Interest Income (NII)/Net Interest Margin (NIM)
| Six Months Ended |
| Six Months Ended |
|
|
|
|
| |||||||||
| June 30, 2022 |
| June 30, 2021 |
|
|
|
|
| |||||||||
| NII |
|
| NIM |
| NII |
|
| NIM |
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
NII/NIM excluding the below | $ | 81,804 |
|
| 2.76% |
| $ | 63,001 |
|
| 2.51% |
|
|
|
|
| |
Prepayment premiums received on loan paydowns |
| 606 |
|
| 0.02% |
|
| 1,205 |
|
| 0.05% |
|
|
|
|
| |
Effect of maintaining excess interest earning cash |
| 105 |
|
| -0.02% |
|
| (300 | ) |
| -0.18% |
|
|
|
|
| |
Effect of PPP loans |
| — |
|
| 0.00% |
|
| 1,732 |
|
| -0.06% |
|
|
|
|
| |
NII/NIM as reported | $ | 82,515 |
|
| 2.76% |
| $ | 65,638 |
|
| 2.32% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Three Months Ended |
| Three Months Ended |
| Three Months Ended | ||||||||||||
| June 30, 2022 |
| March 31, 2022 |
| June 30, 2021 | ||||||||||||
| NII |
|
| NIM |
| NII |
|
| NIM |
| NII |
|
| NIM | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
NII/NIM excluding the below | $ | 42,526 |
|
| 2.83% |
| $ | 39,274 |
|
| 2.68% |
| $ | 32,446 |
|
| 2.56% |
Prepayment premiums received on loan paydowns |
| 255 |
|
| 0.02% |
|
| 351 |
|
| 0.02% |
|
| 501 |
|
| 0.04% |
Effect of maintaining excess interest earning cash |
| 112 |
|
| -0.02% |
|
| (3 | ) |
| -0.01% |
|
| (115 | ) |
| -0.15% |
Effect of PPP loans |
| — |
|
| 0.00% |
|
| — |
|
| 0.00% |
|
| 1,013 |
|
| -0.07% |
NII/NIM as reported | $ | 42,893 |
|
| 2.83% |
| $ | 39,622 |
|
| 2.69% |
| $ | 33,845 |
|
| 2.38% |
As shown above, the Company’s reported NII and NIM for Q2 2022 increased $3.3 million and 14 basis points, respectively, compared to the linked quarter (Q1 2022) and $9.0 million and 45 basis points compared to the prior year quarter (Q2 2021). When comparing to the prior year quarter the Bank further lowered its cost of funds strategically and grew its average loan portfolio at rates/spreads beneficial to NIM, while reducing lower-yielding liquidity. Additionally, the Bank benefitted from the increases in LIBOR and Prime during 2022.
Mr. Kennedy stated, “As noted above, we benefitted from the increase in LIBOR and Prime during 2022 and we are positioned to continue to benefit from a rise in interest rates. 25% of our loan portfolio reprices within one-month; 37% within three-months and 47% within one-year. Our current modeling, with what we believe include very conservative deposit beta assumptions (average of 45%), indicates net interest income will improve approximately 3% in year one and 8% in year two, after a 200-basis point rate shock.”
Funding / Liquidity / Interest Rate Risk Management
The Company actively manages its deposit base to reduce reliance on wholesale funding, volatility, and/or operational risk. Total deposits at June 30, 2022 increased $138 million to $5.40 billion from $5.27 billion at December 31, 2021 and increased $508 million from $4.90 billion at June 30, 2021. Along with the deposit growth, the change in mix was favorable, as noninterest bearing demand deposits increased $84 million, interest-bearing demand accounts increased $478 million and savings and money market accounts increased $25 million, while higher costing CDs declined $71 million and brokered deposits declined $8 million, when comparing June 30, 2022 to June 30, 2021.
Mr. Kennedy noted, “90% of our deposits are demand, savings, or money market accounts, and our noninterest bearing deposits comprise nearly 20% of our total deposits; both metrics reflect the relationship aspect of our deposit base.”
5
At June 30, 2022, the Company’s balance sheet liquidity (investments available for sale, interest-earning deposits and cash) totaled $737.5 million (or 12% of assets).
The Company maintains backup liquidity of approximately $1.9 billion of secured available funding with the Federal Home Loan Bank and $1.6 billion of secured funding from the Federal Reserve Discount Window. The available funding from the Federal Home Loan Bank and the Federal Reserve are secured by the Company’s loan and investment portfolios.
Income from Capital Markets Activities
Noninterest income from Capital Markets activities (detailed below) totaled $2.86 million for the June 2022 quarter compared to $4.65 million for the March 2022 quarter and $1.46 million for the June 2021 quarter. The June 2022 quarter results were driven by $2.68 million in gains on sales of SBA loans. The March 2022 quarter results were driven by $2.84 million in gains on sale of SBA loans and $1.56 million in corporate advisory fee income. The June 2021 quarter reflected $932,000 in gains on the sale of SBA loans and increased mortgage banking activity due to greater refinance activity in the low-rate environment. The June 2022, March 2022 and June 2021 quarters included no income from loan level, back-to-back swap activities, as there has been minimal activity for such.
|
| Six Months Ended |
|
| Six Months Ended |
|
|
|
| |||
|
| June 30, |
|
| June 30, |
|
|
|
| |||
(Dollars in thousands, except per share data) |
| 2022 |
|
| 2021 |
|
|
|
| |||
Gain on loans held for sale at fair value (Mortgage banking) |
| $ | 398 |
|
| $ | 1,434 |
|
|
|
| |
Fee income related to loan level, back-to-back swaps |
|
| — |
|
|
| — |
|
|
|
| |
Gain on sale of SBA loans |
|
| 5,519 |
|
|
| 2,381 |
|
|
|
| |
Corporate advisory fee income |
|
| 1,594 |
|
|
| 1,219 |
|
|
|
| |
Total capital markets activity |
| $ | 7,511 |
|
| $ | 5,034 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |||
|
| Three Months Ended |
|
| Three Months Ended |
|
| Three Months Ended |
| |||
|
| June 30, |
|
| March 31, |
|
| June 30, |
| |||
(Dollars in thousands, except per share data) |
| 2022 |
|
| 2022 |
|
| 2021 |
| |||
Gain on loans held for sale at fair value (Mortgage banking) |
| $ | 151 |
|
| $ | 247 |
|
| $ | 409 |
|
Fee income related to loan level, back-to-back swaps |
|
| — |
|
|
| — |
|
|
| — |
|
Gain on sale of SBA loans |
|
| 2,675 |
|
|
| 2,844 |
|
|
| 932 |
|
Corporate advisory fee income |
|
| 33 |
|
|
| 1,561 |
|
|
| 121 |
|
Total capital markets activity |
| $ | 2,859 |
|
| $ | 4,652 |
|
| $ | 1,462 |
|
Other Noninterest Income (other than Wealth Management fee income and Income from Capital Markets Activities)
Other noninterest income was $1.76 million for Q2 2022 compared to a $(4.77) million loss for Q1 2022 and $3.18 million for Q2 2021. Q1 2022 included a $6.6 million loss on sale of securities associated with a balance sheet repositioning. Q2 2021 included $153,000 of bank owned life insurance income due to the receipt of life insurance proceeds; a $1.13 million gain on sale of PPP loans; $722,000 of fee income related to referral of PPP loans to a third party; and a cost of $842,000 on the termination of interest rate swaps.
Operating Expenses
The Company’s total operating expenses were $32.66 million for the quarter ended June 30, 2022, compared to $34.17 million for the March 2022 quarter and $30.68 million for the June 2021 quarter. The June 2022 and March 2022 quarters included a full quarter’s worth of expense related to the acquisition of Princeton Portfolio Strategies Group (“PPSG”), which closed on July 1, 2021. The first six months of 2022 included increased costs related to health insurance and corporate insurance, as well as the normal annual merit increases and year-end bonuses. The March 2022 quarter also included $1.5 million of severance expense related to certain staff reorganizations within several areas of the Bank. The June 2021 quarter included $648,000 of expense related to the redemption of subordinated debt.
6
Mr. Kennedy noted, “While we continue to manage expenses closely and prudently, we will invest in our existing people as the market demands in order to retain the talent we have acquired. We will also grow and expand our core wealth management and commercial banking businesses, including strategic hires and lift-outs, and invest in digital enhancements to further enhance the client experience.”
Income Taxes
The effective tax rate for the three months ended June 30, 2022 was 26.35%, as compared to 24.45% for the March 2022 quarter and 27.69% for the quarter ended June 30, 2021. The March 31, 2022 quarter benefitted from the vesting of restricted stock at prices higher than grant prices.
Asset Quality / Provision for Credit Losses
Nonperforming assets (which does not include troubled debt restructured loans that are performing in accordance with their terms) at June 30, 2022 were $15.2 million, or 0.25% of total assets. Loans past due 30 to 89 days and still accruing were $3.1 million.
Criticized and classified loans declined by $41 million from December 31, 2021 to June 30, 2022.
Loans on deferral and accruing, entered into during the COVID-19 pandemic, stand at just $13 million at June 30, 2022, down significantly from $914 million at June 30, 2020.
On January 1, 2022, the Company implemented Current Expected Credit Losses (“CECL”) methodology for calculating the Company’s Allowance for Credit Losses (“ACL”). The day one CECL adjustment totaled $5.5 million (a reduction to December 31, 2021 ACL, and benefit to Capital, net of tax effect).
For the quarter ended June 30, 2022, the Company’s provision for credit losses was $1.4 million compared to $2.4 million for the March 2022 quarter and $900,000 for the June 2021 quarter. The increased provision for credit losses in the June 2022 and March 2022 quarters, when compared to the June 2021 quarter was due principally to loan growth during the six-month period.
At June 30, 2022, the ACL was $59.02 million (1.14% of total loans), compared to $61.70 million at December 31, 2021 (1.27% of loans) and $63.51 million at June 30, 2021 (1.39% of total loans).
Capital
The Company’s capital position during the June 2022 quarter was benefitted by net income of $20.10 million which was offset by the purchase of approximately 200,000 shares through the Company’s stock repurchase program at a total cost of $6.4 million and the quarterly dividend of $919,000. U.S. Generally Accepted Accounting Principles (“GAAP”) Capital at June 30, 2022 was also impacted by an increase in the unrealized loss on available-for-sale securities in the second quarter of 2022 due to the significant rise in medium-term Treasury yields.
Mr. Kennedy noted, “Despite capital spent on stock repurchases, and capital being affected by the increased unrealized loss on AFS securities, our tangible book value per share improved slightly during Q2 2022 to $25.96 at June 30, 2022.”
The Company’s and Bank’s capital ratios at June 30, 2022 remain strong. Such ratios remain well above regulatory well capitalized standards.
The Company employs quarterly capital stress testing – adverse case and severely adverse case. In the most recent completed stress test on March 31, 2022, under the severely adverse case, and no growth scenarios, the Bank remains well capitalized over a two-year stress period. With a Pandemic stress overlay, the Bank still remains well capitalized over the two-year stress period.
On July 28, 2022, the Company declared a cash dividend of $0.05 per share payable on August 25, 2022, to shareholders of record on August 11, 2022.
7
ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $6.2 billion and assets under management/administration of $9.5 billion as of June 30, 2022. Founded in 1921, Peapack-Gladstone Bank is a commercial bank that provides innovative wealth management, commercial and retail solutions, including residential lending and online platforms, to businesses and consumers. Peapack Private, the bank’s wealth management division, offers comprehensive financial, tax, fiduciary and investment advice and solutions to individuals, families, privately-held businesses, family offices and not-for-profit organizations, which help them to establish, maintain and expand their legacy. Together, Peapack-Gladstone Bank and Peapack Private offer an unparalleled commitment to client service. Visit www.pgbank.com and www.peapackprivate.com for more information.
The foregoing may contain 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:
Further, given its ongoing and dynamic nature, it is difficult to predict the continued impact of the COVID-19 pandemic on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated. As the result of the COVID-19 pandemic
8
and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations:
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, 2021. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’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)
9
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except share data)
(Unaudited)
|
| For the Three Months Ended |
| |||||||||||||||||
|
| June 30, |
|
| March 31, |
|
| Dec 31, |
|
| Sept 30, |
|
| June 30, |
| |||||
|
| 2022 |
|
| 2022 |
|
| 2021 |
|
| 2021 |
|
| 2021 |
| |||||
Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest income |
| $ | 48,520 |
|
| $ | 44,140 |
|
| $ | 42,075 |
|
| $ | 40,067 |
|
| $ | 39,686 |
|
Interest expense |
|
| 5,627 |
|
|
| 4,518 |
|
|
| 4,863 |
|
|
| 4,856 |
|
|
| 5,841 |
|
Net interest income |
|
| 42,893 |
|
|
| 39,622 |
|
|
| 37,212 |
|
|
| 35,211 |
|
|
| 33,845 |
|
Wealth management fee income |
|
| 13,891 |
|
|
| 14,834 |
|
|
| 13,962 |
|
|
| 13,860 |
|
|
| 13,034 |
|
Service charges and fees |
|
| 1,063 |
|
|
| 952 |
|
|
| 996 |
|
|
| 959 |
|
|
| 896 |
|
Bank owned life insurance |
|
| 310 |
|
|
| 313 |
|
|
| 308 |
|
|
| 311 |
|
|
| 466 |
|
Gain on loans held for sale at fair value |
|
| 151 |
|
|
| 247 |
|
|
| 352 |
|
|
| 408 |
|
|
| 409 |
|
Gain/(loss) on loans held for sale at lower of cost or |
|
| — |
|
|
| — |
|
|
| (265 | ) |
|
| — |
|
|
| 1,125 |
|
Fee income related to loan level, back-to-back |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Gain on sale of SBA loans (A) |
|
| 2,675 |
|
|
| 2,844 |
|
|
| 989 |
|
|
| 1,569 |
|
|
| 932 |
|
Corporate advisory fee income (A) |
|
| 33 |
|
|
| 1,561 |
|
|
| 2,180 |
|
|
| 84 |
|
|
| 121 |
|
Loss on swap termination |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (842 | ) |
Other income (C) |
|
| 860 |
|
|
| 1,254 |
|
|
| 581 |
|
|
| 660 |
|
|
| 1,495 |
|
Loss on securities sale, net (D) |
|
| — |
|
|
| (6,609 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Fair value adjustment for CRA equity security |
|
| (475 | ) |
|
| (682 | ) |
|
| (139 | ) |
|
| (70 | ) |
|
| 42 |
|
Total other income |
|
| 18,508 |
|
|
| 14,714 |
|
|
| 18,964 |
|
|
| 17,781 |
|
|
| 17,678 |
|
Salaries and employee benefits (E) |
|
| 21,882 |
|
|
| 22,449 |
|
|
| 20,105 |
|
|
| 19,859 |
|
|
| 19,910 |
|
Premises and equipment |
|
| 4,640 |
|
|
| 4,647 |
|
|
| 4,519 |
|
|
| 4,459 |
|
|
| 4,074 |
|
FDIC insurance expense |
|
| 503 |
|
|
| 471 |
|
|
| 402 |
|
|
| 555 |
|
|
| 529 |
|
Swap valuation allowance |
|
| — |
|
|
| 673 |
|
|
| 893 |
|
|
| 1,350 |
|
|
| — |
|
Other expenses |
|
| 5,634 |
|
|
| 5,929 |
|
|
| 5,785 |
|
|
| 5,962 |
|
|
| 6,171 |
|
Total operating expenses |
|
| 32,659 |
|
|
| 34,169 |
|
|
| 31,704 |
|
|
| 32,185 |
|
|
| 30,684 |
|
Pretax income before provision for credit losses |
|
| 28,742 |
|
|
| 20,167 |
|
|
| 24,472 |
|
|
| 20,807 |
|
|
| 20,839 |
|
Provision for credit losses (F) |
|
| 1,449 |
|
|
| 2,375 |
|
|
| 3,750 |
|
|
| 1,600 |
|
|
| 900 |
|
Income before income taxes |
|
| 27,293 |
|
|
| 17,792 |
|
|
| 20,722 |
|
|
| 19,207 |
|
|
| 19,939 |
|
Income tax expense |
|
| 7,193 |
|
|
| 4,351 |
|
|
| 5,867 |
|
|
| 5,036 |
|
|
| 5,521 |
|
Net income |
| $ | 20,100 |
|
| $ | 13,441 |
|
| $ | 14,855 |
|
| $ | 14,171 |
|
| $ | 14,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total revenue (G) |
| $ | 61,401 |
|
| $ | 54,336 |
|
| $ | 56,176 |
|
| $ | 52,992 |
|
| $ | 51,523 |
|
Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Earnings per share (basic) |
| $ | 1.10 |
|
| $ | 0.73 |
|
| $ | 0.80 |
|
| $ | 0.76 |
|
| $ | 0.76 |
|
Earnings per share (diluted) |
|
| 1.08 |
|
|
| 0.71 |
|
|
| 0.78 |
|
|
| 0.74 |
|
|
| 0.74 |
|
Weighted average number of common |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Basic |
|
| 18,325,605 |
|
|
| 18,339,013 |
|
|
| 18,483,268 |
|
|
| 18,763,316 |
|
|
| 18,963,237 |
|
Diluted |
|
| 18,637,340 |
|
|
| 18,946,683 |
|
|
| 19,070,594 |
|
|
| 19,273,831 |
|
|
| 19,439,439 |
|
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Return on average assets annualized (ROAA) |
|
| 1.30 | % |
|
| 0.87 | % |
|
| 0.96 | % |
|
| 0.95 | % |
|
| 0.97 | % |
Return on average equity annualized (ROAE) |
|
| 15.43 | % |
|
| 9.88 | % |
|
| 10.94 | % |
|
| 10.40 | % |
|
| 10.86 | % |
Return on average tangible common equity (ROATCE) (H) |
|
| 17.00 | % |
|
| 10.85 | % |
|
| 12.03 | % |
|
| 11.43 | % |
|
| 11.83 | % |
Net interest margin (tax-equivalent basis) |
|
| 2.83 | % |
|
| 2.69 | % |
|
| 2.46 | % |
|
| 2.42 | % |
|
| 2.38 | % |
GAAP efficiency ratio (I) |
|
| 53.19 | % |
|
| 62.88 | % |
|
| 56.44 | % |
|
| 60.74 | % |
|
| 59.55 | % |
Operating expenses / average assets annualized |
|
| 2.11 | % |
|
| 2.22 | % |
|
| 2.05 | % |
|
| 2.16 | % |
|
| 2.06 | % |
10
11
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except share data)
(Unaudited)
|
| For the Six Months Ended |
|
|
|
|
|
|
| |||||||
|
| June 30, |
|
| Change |
| ||||||||||
|
| 2022 |
|
| 2021 |
|
| $ |
|
| % |
| ||||
Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest income |
| $ | 92,660 |
|
| $ | 77,925 |
|
| $ | 14,735 |
|
|
| 19 | % |
Interest expense |
|
| 10,145 |
|
|
| 12,287 |
|
|
| (2,142 | ) |
|
| -17 | % |
Net interest income |
|
| 82,515 |
|
|
| 65,638 |
|
|
| 16,877 |
|
|
| 26 | % |
Wealth management fee income |
|
| 28,725 |
|
|
| 25,165 |
|
|
| 3,560 |
|
|
| 14 | % |
Service charges and fees |
|
| 2,015 |
|
|
| 1,742 |
|
|
| 273 |
|
|
| 16 | % |
Bank owned life insurance |
|
| 623 |
|
|
| 1,077 |
|
|
| (454 | ) |
|
| -42 | % |
Gain on loans held for sale at fair value (Mortgage banking) (A) |
|
| 398 |
|
|
| 1,434 |
|
|
| (1,036 | ) |
|
| -72 | % |
Gain on loans held for sale at lower of cost or fair value (B) |
|
| — |
|
|
| 1,407 |
|
|
| (1,407 | ) |
|
| -100 | % |
Fee income related to loan level, back-to-back swaps (A) |
|
| — |
|
|
| — |
|
|
| — |
|
| N/A |
| |
Gain on sale of SBA loans (A) |
|
| 5,519 |
|
|
| 2,381 |
|
|
| 3,138 |
|
|
| 132 | % |
Corporate advisory fee income (A) |
|
| 1,594 |
|
|
| 1,219 |
|
|
| 375 |
|
|
| 31 | % |
Loss on swap termination |
|
| — |
|
|
| (842 | ) |
|
| 842 |
|
|
| -100 | % |
Other income (C) |
|
| 2,114 |
|
|
| 2,138 |
|
|
| (24 | ) |
|
| -1 | % |
Loss on securities sale, net (D) |
|
| (6,609 | ) |
|
| — |
|
|
| (6,609 | ) |
| N/A |
| |
Fair value adjustment for CRA equity security |
|
| (1,157 | ) |
|
| (223 | ) |
|
| (934 | ) |
|
| 419 | % |
Total other income |
|
| 33,222 |
|
|
| 35,498 |
|
|
| (2,276 | ) |
|
| -6 | % |
Salaries and employee benefits (E) |
|
| 44,331 |
|
|
| 41,900 |
|
|
| 2,431 |
|
|
| 6 | % |
Premises and equipment |
|
| 9,287 |
|
|
| 8,187 |
|
|
| 1,100 |
|
|
| 13 | % |
FDIC insurance expense |
|
| 974 |
|
|
| 1,114 |
|
|
| (140 | ) |
|
| -13 | % |
Swap valuation allowance |
|
| 673 |
|
|
| — |
|
|
| 673 |
|
| N/A |
| |
Other expenses |
|
| 11,563 |
|
|
| 11,077 |
|
|
| 486 |
|
|
| 4 | % |
Total operating expenses |
|
| 66,828 |
|
|
| 62,278 |
|
|
| 4,550 |
|
|
| 7 | % |
Pretax income before provision for credit losses |
|
| 48,909 |
|
|
| 38,858 |
|
|
| 10,051 |
|
|
| 26 | % |
Provision for credit losses (F) |
|
| 3,824 |
|
|
| 1,125 |
|
|
| 2,699 |
|
|
| 240 | % |
Income before income taxes |
|
| 45,085 |
|
|
| 37,733 |
|
|
| 7,352 |
|
|
| 19 | % |
Income tax expense |
|
| 11,544 |
|
|
| 10,137 |
|
|
| 1,407 |
|
|
| 14 | % |
Net income |
| $ | 33,541 |
|
| $ | 27,596 |
|
| $ | 5,945 |
|
|
| 22 | % |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total revenue (G) |
| $ | 115,737 |
|
| $ | 101,136 |
|
| $ | 14,601 |
|
|
| 14 | % |
Per Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Earnings per share (basic) |
| $ | 1.83 |
|
| $ | 1.46 |
|
| $ | 0.37 |
|
|
| 25 | % |
Earnings per share (diluted) |
|
| 1.79 |
|
|
| 1.42 |
|
|
| 0.37 |
|
|
| 26 | % |
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Basic |
|
| 18,332,272 |
|
|
| 18,956,807 |
|
|
| (624,535 | ) |
|
| -3 | % |
Diluted |
|
| 18,782,559 |
|
|
| 19,473,150 |
|
|
| (690,591 | ) |
|
| -4 | % |
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Return on average assets annualized (ROAA) |
|
| 1.09 | % |
|
| 0.93 | % |
|
| 0.16 | % |
|
| 17 | % |
Return on average equity annualized (ROAE) |
|
| 12.59 | % |
|
| 10.45 | % |
|
| 2.14 | % |
|
| 21 | % |
Return on average tangible common equity (ROATCE) (H) |
|
| 13.86 | % |
|
| 11.39 | % |
|
| 2.47 | % |
|
| 22 | % |
Net interest margin (tax-equivalent basis) |
|
| 2.76 | % |
|
| 2.32 | % |
|
| 0.44 | % |
|
| 19 | % |
GAAP efficiency ratio (I) |
|
| 57.74 | % |
|
| 61.58 | % |
|
| (3.84 | )% |
|
| -6 | % |
Operating expenses / average assets annualized |
|
| 2.16 | % |
|
| 2.10 | % |
|
| 0.06 | % |
|
| 3 | % |
12
13
PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)
|
| As of |
| |||||||||||||||||
|
| June 30, |
|
| March 31, |
|
| Dec 31, |
|
| Sept 30, |
|
| June 30, |
| |||||
|
| 2022 |
|
| 2022 |
|
| 2021 |
|
| 2021 |
|
| 2021 |
| |||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Cash and due from banks |
| $ | 6,203 |
|
| $ | 8,849 |
|
| $ | 5,929 |
|
| $ | 9,299 |
|
| $ | 12,684 |
|
Federal funds sold |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Interest-earning deposits |
|
| 147,222 |
|
|
| 105,111 |
|
|
| 140,875 |
|
|
| 606,913 |
|
|
| 190,778 |
|
Total cash and cash equivalents |
|
| 153,425 |
|
|
| 113,960 |
|
|
| 146,804 |
|
|
| 616,212 |
|
|
| 203,462 |
|
Securities available for sale |
|
| 556,791 |
|
|
| 601,163 |
|
|
| 796,753 |
|
|
| 843,779 |
|
|
| 823,820 |
|
Securities held to maturity |
|
| 105,048 |
|
|
| 106,816 |
|
|
| 108,680 |
|
|
| — |
|
|
| — |
|
CRA equity security, at fair value |
|
| 13,528 |
|
|
| 14,003 |
|
|
| 14,685 |
|
|
| 14,824 |
|
|
| 14,894 |
|
FHLB and FRB stock, at cost |
|
| 13,710 |
|
|
| 18,570 |
|
|
| 12,950 |
|
|
| 12,950 |
|
|
| 12,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Residential mortgage |
|
| 512,341 |
|
|
| 513,289 |
|
|
| 501,340 |
|
|
| 510,878 |
|
|
| 504,181 |
|
Multifamily mortgage |
|
| 1,876,783 |
|
|
| 1,850,097 |
|
|
| 1,595,866 |
|
|
| 1,497,683 |
|
|
| 1,420,043 |
|
Commercial mortgage |
|
| 657,812 |
|
|
| 669,899 |
|
|
| 662,626 |
|
|
| 680,107 |
|
|
| 702,777 |
|
Commercial loans (A) |
|
| 2,048,474 |
|
|
| 2,041,720 |
|
|
| 2,009,252 |
|
|
| 1,833,532 |
|
|
| 1,880,830 |
|
Consumer loans |
|
| 37,675 |
|
|
| 35,322 |
|
|
| 33,687 |
|
|
| 30,689 |
|
|
| 31,889 |
|
Home equity lines of credit |
|
| 36,023 |
|
|
| 38,604 |
|
|
| 40,803 |
|
|
| 42,512 |
|
|
| 44,062 |
|
Other loans |
|
| 236 |
|
|
| 226 |
|
|
| 238 |
|
|
| 245 |
|
|
| 204 |
|
Total loans |
|
| 5,169,344 |
|
|
| 5,149,157 |
|
|
| 4,843,812 |
|
|
| 4,595,646 |
|
|
| 4,583,986 |
|
Less: Allowances for credit losses (B) |
|
| 59,022 |
|
|
| 58,386 |
|
|
| 61,697 |
|
|
| 65,133 |
|
|
| 63,505 |
|
Net loans |
|
| 5,110,322 |
|
|
| 5,090,771 |
|
|
| 4,782,115 |
|
|
| 4,530,513 |
|
|
| 4,520,481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Premises and equipment |
|
| 22,804 |
|
|
| 22,960 |
|
|
| 23,044 |
|
|
| 23,123 |
|
|
| 23,261 |
|
Other real estate owned |
|
| 116 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Accrued interest receivable |
|
| 23,468 |
|
|
| 22,890 |
|
|
| 21,589 |
|
|
| 22,790 |
|
|
| 23,117 |
|
Bank owned life insurance |
|
| 46,944 |
|
|
| 46,805 |
|
|
| 46,663 |
|
|
| 46,510 |
|
|
| 46,605 |
|
Goodwill and other intangible assets |
|
| 48,082 |
|
|
| 48,471 |
|
|
| 48,902 |
|
|
| 49,333 |
|
|
| 43,156 |
|
Finance lease right-of-use assets |
|
| 3,209 |
|
|
| 3,395 |
|
|
| 3,582 |
|
|
| 3,769 |
|
|
| 3,956 |
|
Operating lease right-of-use assets |
|
| 14,192 |
|
|
| 14,725 |
|
|
| 9,775 |
|
|
| 10,307 |
|
|
| 9,569 |
|
Due from brokers (C) |
|
| — |
|
|
| 120,245 |
|
|
| — |
|
|
| — |
|
|
| — |
|
Other assets (D) |
|
| 39,528 |
|
|
| 30,890 |
|
|
| 62,451 |
|
|
| 66,175 |
|
|
| 66,466 |
|
TOTAL ASSETS |
| $ | 6,151,167 |
|
| $ | 6,255,664 |
|
| $ | 6,077,993 |
|
| $ | 6,240,285 |
|
| $ | 5,791,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Noninterest-bearing demand deposits |
| $ | 1,043,225 |
|
| $ | 1,023,208 |
|
| $ | 956,482 |
|
| $ | 986,765 |
|
| $ | 959,494 |
|
Interest-bearing demand deposits |
|
| 2,456,988 |
|
|
| 2,362,987 |
|
|
| 2,287,894 |
|
|
| 2,355,892 |
|
|
| 1,978,497 |
|
Savings |
|
| 168,441 |
|
|
| 162,116 |
|
|
| 154,914 |
|
|
| 168,831 |
|
|
| 147,227 |
|
Money market accounts |
|
| 1,217,516 |
|
|
| 1,304,017 |
|
|
| 1,307,051 |
|
|
| 1,287,686 |
|
|
| 1,213,992 |
|
Certificates of deposit – Retail |
|
| 375,387 |
|
|
| 384,909 |
|
|
| 409,608 |
|
|
| 426,981 |
|
|
| 446,143 |
|
Certificates of deposit – Listing Service |
|
| 31,348 |
|
|
| 31,348 |
|
|
| 31,382 |
|
|
| 31,382 |
|
|
| 31,631 |
|
Subtotal “customer” deposits |
|
| 5,292,905 |
|
|
| 5,268,585 |
|
|
| 5,147,331 |
|
|
| 5,257,537 |
|
|
| 4,776,984 |
|
IB Demand – Brokered |
|
| 85,000 |
|
|
| 85,000 |
|
|
| 85,000 |
|
|
| 85,000 |
|
|
| 85,000 |
|
Certificates of deposit – Brokered |
|
| 25,963 |
|
|
| 33,831 |
|
|
| 33,818 |
|
|
| 33,804 |
|
|
| 33,791 |
|
Total deposits |
|
| 5,403,868 |
|
|
| 5,387,416 |
|
|
| 5,266,149 |
|
|
| 5,376,341 |
|
|
| 4,895,775 |
|
Short-term borrowings |
|
| — |
|
|
| 122,085 |
|
|
| — |
|
|
| — |
|
|
| — |
|
Paycheck Protection Program Liquidity Facility (E) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 48,496 |
|
|
| 83,586 |
|
Finance lease liability |
|
| 5,305 |
|
|
| 5,573 |
|
|
| 5,820 |
|
|
| 6,063 |
|
|
| 6,299 |
|
Operating lease liability |
|
| 14,756 |
|
|
| 15,155 |
|
|
| 10,111 |
|
|
| 10,644 |
|
|
| 9,902 |
|
Subordinated debt, net |
|
| 132,844 |
|
|
| 132,772 |
|
|
| 132,701 |
|
|
| 132,629 |
|
|
| 132,557 |
|
Other liabilities (D) |
|
| 74,070 |
|
|
| 69,237 |
|
|
| 116,824 |
|
|
| 123,098 |
|
|
| 125,110 |
|
TOTAL LIABILITIES |
|
| 5,630,843 |
|
|
| 5,732,238 |
|
|
| 5,531,605 |
|
|
| 5,697,271 |
|
|
| 5,253,229 |
|
Shareholders’ equity |
|
| 520,324 |
|
|
| 523,426 |
|
|
| 546,388 |
|
|
| 543,014 |
|
|
| 538,459 |
|
TOTAL LIABILITIES AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
SHAREHOLDERS’ EQUITY |
| $ | 6,151,167 |
|
| $ | 6,255,664 |
|
| $ | 6,077,993 |
|
| $ | 6,240,285 |
|
| $ | 5,791,688 |
|
Assets under management and / or administration at |
| $ | 9.5 |
|
| $ | 10.7 |
|
| $ | 11.1 |
|
| $ | 10.3 |
|
| $ | 9.8 |
|
14
15
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
|
| As of |
| |||||||||||||||||
|
| June 30, |
|
| March 31, |
|
| Dec 31, |
|
| Sept 30, |
|
| June 30, |
| |||||
|
| 2022 |
|
| 2022 |
|
| 2021 |
|
| 2021 |
|
| 2021 |
| |||||
Asset Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Loans past due over 90 days and still accruing |
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
| $ | — |
|
Nonaccrual loans (A) |
|
| 15,078 |
|
|
| 15,884 |
|
|
| 15,573 |
|
|
| 25,925 |
|
|
| 5,962 |
|
Other real estate owned |
|
| 116 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Total nonperforming assets |
| $ | 15,194 |
|
| $ | 15,884 |
|
| $ | 15,573 |
|
| $ | 25,925 |
|
| $ | 5,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Nonperforming loans to total loans |
|
| 0.29 | % |
|
| 0.31 | % |
|
| 0.32 | % |
|
| 0.56 | % |
|
| 0.13 | % |
Nonperforming assets to total assets |
|
| 0.25 | % |
|
| 0.25 | % |
|
| 0.26 | % |
|
| 0.42 | % |
|
| 0.10 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Performing TDRs (B)(C) |
| $ | 2,272 |
|
| $ | 2,375 |
|
| $ | 2,479 |
|
| $ | 416 |
|
| $ | 190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Loans past due 30 through 89 days and still accruing (D) |
| $ | 3,126 |
|
| $ | 606 |
|
| $ | 8,606 |
|
| $ | 1,193 |
|
| $ | 1,678 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Loans subject to special mention |
| $ | 98,787 |
|
| $ | 110,252 |
|
| $ | 116,490 |
|
| $ | 115,935 |
|
| $ | 148,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Classified loans |
| $ | 27,167 |
|
| $ | 47,386 |
|
| $ | 50,702 |
|
| $ | 51,937 |
|
| $ | 11,178 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Impaired loans |
| $ | 13,227 |
|
| $ | 16,147 |
|
| $ | 18,052 |
|
| $ | 26,341 |
|
| $ | 6,498 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Allowance for credit losses ("ACL"): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Beginning of period |
| $ | 58,386 |
|
| $ | 61,697 |
|
| $ | 65,133 |
|
| $ | 63,505 |
|
| $ | 67,536 |
|
Day one CECL adjustment |
|
| — |
|
|
| (5,536 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Provision for credit losses (E) |
|
| 646 |
|
|
| 2,489 |
|
|
| 3,750 |
|
|
| 1,600 |
|
|
| 900 |
|
(Charge-offs)/recoveries, net |
|
| (10 | ) |
|
| (264 | ) |
|
| (7,186 | ) |
|
| 28 |
|
|
| (4,931 | ) |
End of period |
| $ | 59,022 |
|
| $ | 58,386 |
|
| $ | 61,697 |
|
| $ | 65,133 |
|
| $ | 63,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
ACL to nonperforming loans |
|
| 391.44 | % |
|
| 367.58 | % |
|
| 396.18 | % |
|
| 251.24 | % |
|
| 1065.16 | % |
ACL to total loans |
|
| 1.14 | % |
|
| 1.13 | % |
|
| 1.27 | % |
|
| 1.42 | % |
|
| 1.39 | % |
General ACL to total loans (F) |
|
| 1.09 | % |
|
| 1.09 | % |
|
| 1.19 | % |
|
| 1.26 | % |
|
| 1.38 | % |
16
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
|
| June 30, |
|
| December 31, |
|
| June 30, |
| |||||||||
|
| 2022 |
|
| 2021 |
|
| 2021 |
| |||||||||
Capital Adequacy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Equity to total assets (A) |
|
|
|
| 8.46 | % |
|
|
|
| 8.99 | % |
|
|
|
| 9.30 | % |
Tangible Equity to tangible assets (B) |
|
|
|
| 7.74 | % |
|
|
|
| 8.25 | % |
|
|
|
| 8.62 | % |
Book value per share (C) |
|
|
| $ | 28.60 |
|
|
|
| $ | 29.70 |
|
|
|
| $ | 28.60 |
|
Tangible Book Value per share (D) |
|
|
| $ | 25.96 |
|
|
|
| $ | 27.05 |
|
|
|
| $ | 26.30 |
|
|
| June 30, |
| December 31, |
| June 30, | ||||||||||||
|
| 2022 |
| 2021 |
| 2021 | ||||||||||||
Regulatory Capital – Holding Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Tier I leverage |
| $ | 528,646 |
|
| 8.51% |
| $ | 508,231 |
|
| 8.29% |
| $ | 499,344 |
|
| 8.67% |
Tier I capital to risk-weighted assets |
|
| 528,646 |
|
| 10.70 |
|
| 508,231 |
|
| 10.62 |
|
| 499,344 |
|
| 11.45 |
Common equity tier I capital ratio |
|
| 528,622 |
|
| 10.70 |
|
| 508,207 |
|
| 10.62 |
|
| 499,315 |
|
| 11.45 |
Tier I & II capital to risk-weighted assets |
|
| 721,503 |
|
| 14.60 |
|
| 700,790 |
|
| 14.64 |
|
| 686,543 |
|
| 15.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Regulatory Capital – Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
Tier I leverage (E) |
| $ | 646,884 |
|
| 10.42% |
| $ | 612,762 |
|
| 9.99% |
| $ | 583,208 |
|
| 10.13% |
Tier I capital to risk-weighted assets (F) |
|
| 646,884 |
|
| 13.10 |
|
| 612,762 |
|
| 12.80 |
|
| 583,208 |
|
| 13.37 |
Common equity tier I capital ratio |
|
| 646,860 |
|
| 13.10 |
|
| 612,738 |
|
| 12.80 |
|
| 583,179 |
|
| 13.37 |
Tier I & II capital to risk-weighted assets (H) |
|
| 706,897 |
|
| 14.31 |
|
| 672,614 |
|
| 14.05 |
|
| 637,858 |
|
| 14.62 |
17
PEAPACK-GLADSTONE FINANCIAL CORPORATION
LOANS CLOSED
(Dollars in Thousands)
(Unaudited)
|
| For the Quarters Ended |
| |||||||||||||||||
|
| June 30, |
|
| March 31, |
|
| Dec 31, |
|
| Sept 30, |
|
| June 30, |
| |||||
|
| 2022 |
|
| 2022 |
|
| 2021 |
|
| 2021 |
|
| 2021 |
| |||||
Residential loans retained |
| $ | 35,172 |
|
| $ | 41,547 |
|
| $ | 22,953 |
|
| $ | 36,845 |
|
| $ | 37,083 |
|
Residential loans sold |
|
| 9,886 |
|
|
| 15,669 |
|
|
| 20,694 |
|
|
| 24,041 |
|
|
| 25,432 |
|
Total residential loans |
|
| 45,058 |
|
|
| 57,216 |
|
|
| 43,647 |
|
|
| 60,886 |
|
|
| 62,515 |
|
Commercial real estate |
|
| 13,960 |
|
|
| 25,575 |
|
|
| 16,134 |
|
|
| 14,944 |
|
|
| 12,243 |
|
Multifamily |
|
| 74,564 |
|
|
| 265,650 |
|
|
| 162,740 |
|
|
| 120,716 |
|
|
| 255,820 |
|
Commercial (C&I) loans/leases (A) (B) |
|
| 332,801 |
|
|
| 143,029 |
|
|
| 341,886 |
|
|
| 143,121 |
|
|
| 141,285 |
|
SBA (C) |
|
| 10,534 |
|
|
| 26,093 |
|
|
| 27,630 |
|
|
| 11,570 |
|
|
| 15,976 |
|
Wealth lines of credit (A) |
|
| 12,575 |
|
|
| 9,400 |
|
|
| 7,500 |
|
|
| 10,020 |
|
|
| 3,200 |
|
Total commercial loans |
|
| 444,434 |
|
|
| 469,747 |
|
|
| 555,890 |
|
|
| 300,371 |
|
|
| 428,524 |
|
Installment loans |
|
| 100 |
|
|
| 131 |
|
|
| 94 |
|
|
| 178 |
|
|
| 25 |
|
Home equity lines of credit (A) |
|
| 3,897 |
|
|
| 1,341 |
|
|
| 5,359 |
|
|
| 2,535 |
|
|
| 4,140 |
|
Total loans closed |
| $ | 493,489 |
|
| $ | 528,435 |
|
| $ | 604,990 |
|
| $ | 363,970 |
|
| $ | 495,204 |
|
|
| For the Six Months Ended |
| |||||
|
| June 30, |
|
| June 30, |
| ||
|
| 2022 |
|
| 2021 |
| ||
Residential loans retained |
| $ | 76,719 |
|
| $ | 52,897 |
|
Residential loans sold |
|
| 25,555 |
|
|
| 71,305 |
|
Total residential loans |
|
| 102,274 |
|
|
| 124,202 |
|
Commercial real estate |
|
| 39,535 |
|
|
| 50,606 |
|
Multifamily |
|
| 340,214 |
|
|
| 340,829 |
|
Commercial (C&I) loans (A) (B) |
|
| 475,830 |
|
|
| 270,426 |
|
SBA (C) |
|
| 36,627 |
|
|
| 74,706 |
|
Wealth lines of credit (A) |
|
| 21,975 |
|
|
| 5,675 |
|
Total commercial loans |
|
| 914,181 |
|
|
| 742,242 |
|
Installment loans |
|
| 231 |
|
|
| 88 |
|
Home equity lines of credit (A) |
|
| 5,238 |
|
|
| 6,039 |
|
Total loans closed |
| $ | 1,021,924 |
|
| $ | 872,571 |
|
18
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
|
| June 30, 2022 |
|
| June 30, 2021 |
| ||||||||||||||||||
|
| Average |
|
| Income/ |
|
|
|
|
| Average |
|
| Income/ |
|
|
|
| ||||||
|
| Balance |
|
| Expense |
|
| Yield |
|
| Balance |
|
| Expense |
|
| Yield |
| ||||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Taxable (A) |
| $ | 774,145 |
|
| $ | 3,535 |
|
|
| 1.83 | % |
| $ | 884,374 |
|
| $ | 3,020 |
|
|
| 1.37 | % |
Tax-exempt (A) (B) |
|
| 4,193 |
|
|
| 40 |
|
|
| 3.82 |
|
|
| 6,891 |
|
|
| 81 |
|
|
| 4.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Mortgages |
|
| 513,666 |
|
|
| 3,630 |
|
|
| 2.83 |
|
|
| 498,594 |
|
|
| 3,826 |
|
|
| 3.07 |
|
Commercial mortgages |
|
| 2,552,128 |
|
|
| 21,185 |
|
|
| 3.32 |
|
|
| 1,941,330 |
|
|
| 15,056 |
|
|
| 3.10 |
|
Commercial |
|
| 2,024,457 |
|
|
| 19,348 |
|
|
| 3.82 |
|
|
| 1,942,802 |
|
|
| 16,984 |
|
|
| 3.50 |
|
Commercial construction |
|
| 16,186 |
|
|
| 162 |
|
|
| 4.00 |
|
|
| 20,952 |
|
|
| 180 |
|
|
| 3.44 |
|
Installment |
|
| 37,235 |
|
|
| 297 |
|
|
| 3.19 |
|
|
| 34,319 |
|
|
| 255 |
|
|
| 2.97 |
|
Home equity |
|
| 38,061 |
|
|
| 331 |
|
|
| 3.48 |
|
|
| 45,042 |
|
|
| 377 |
|
|
| 3.35 |
|
Other |
|
| 258 |
|
|
| 6 |
|
|
| 9.30 |
|
|
| 219 |
|
|
| 5 |
|
|
| 9.13 |
|
Total loans |
|
| 5,181,991 |
|
|
| 44,959 |
|
|
| 3.47 |
|
|
| 4,483,258 |
|
|
| 36,683 |
|
|
| 3.27 |
|
Federal funds sold |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 91 |
|
|
| — |
|
|
| 0.00 |
|
Interest-earning deposits |
|
| 164,066 |
|
|
| 314 |
|
|
| 0.77 |
|
|
| 428,464 |
|
|
| 97 |
|
|
| 0.09 |
|
Total interest-earning assets |
|
| 6,124,395 |
|
|
| 48,848 |
|
|
| 3.19 | % |
|
| 5,803,078 |
|
|
| 39,881 |
|
|
| 2.75 | % |
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Cash and due from banks |
|
| 9,715 |
|
|
|
|
|
|
|
|
| 10,360 |
|
|
|
|
|
|
| ||||
Allowance for credit losses |
|
| (59,629 | ) |
|
|
|
|
|
|
|
| (67,593 | ) |
|
|
|
|
|
| ||||
Premises and equipment |
|
| 22,952 |
|
|
|
|
|
|
|
|
| 23,307 |
|
|
|
|
|
|
| ||||
Other assets |
|
| 96,232 |
|
|
|
|
|
|
|
|
| 182,421 |
|
|
|
|
|
|
| ||||
Total noninterest-earning assets |
|
| 69,270 |
|
|
|
|
|
|
|
|
| 148,495 |
|
|
|
|
|
|
| ||||
Total assets |
| $ | 6,193,665 |
|
|
|
|
|
|
|
| $ | 5,951,573 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Checking |
| $ | 2,493,668 |
|
| $ | 2,330 |
|
|
| 0.37 | % |
| $ | 1,980,688 |
|
| $ | 944 |
|
|
| 0.19 | % |
Money markets |
|
| 1,234,564 |
|
|
| 579 |
|
|
| 0.19 |
|
|
| 1,235,464 |
|
|
| 727 |
|
|
| 0.24 |
|
Savings |
|
| 163,062 |
|
|
| 5 |
|
|
| 0.01 |
|
|
| 144,044 |
|
|
| 18 |
|
|
| 0.05 |
|
Certificates of deposit – retail |
|
| 411,202 |
|
|
| 651 |
|
|
| 0.63 |
|
|
| 488,148 |
|
|
| 1,027 |
|
|
| 0.84 |
|
Subtotal interest-bearing deposits |
|
| 4,302,496 |
|
|
| 3,565 |
|
|
| 0.33 |
|
|
| 3,848,344 |
|
|
| 2,716 |
|
|
| 0.28 |
|
Interest-bearing demand – brokered |
|
| 85,000 |
|
|
| 364 |
|
|
| 1.71 |
|
|
| 105,604 |
|
|
| 456 |
|
|
| 1.73 |
|
Certificates of deposit – brokered |
|
| 33,470 |
|
|
| 261 |
|
|
| 3.12 |
|
|
| 33,783 |
|
|
| 264 |
|
|
| 3.13 |
|
Total interest-bearing deposits |
|
| 4,420,966 |
|
|
| 4,190 |
|
|
| 0.38 |
|
|
| 3,987,731 |
|
|
| 3,436 |
|
|
| 0.34 |
|
Borrowings |
|
| 3,873 |
|
|
| 10 |
|
|
| 1.03 |
|
|
| 166,343 |
|
|
| 182 |
|
|
| 0.44 |
|
Capital lease obligation |
|
| 5,406 |
|
|
| 64 |
|
|
| 4.74 |
|
|
| 6,380 |
|
|
| 76 |
|
|
| 4.76 |
|
Subordinated debt |
|
| 132,803 |
|
|
| 1,363 |
|
|
| 4.11 |
|
|
| 181,317 |
|
|
| 2,147 |
|
|
| 4.74 |
|
Total interest-bearing liabilities |
|
| 4,563,048 |
|
|
| 5,627 |
|
|
| 0.49 | % |
|
| 4,341,771 |
|
|
| 5,841 |
|
|
| 0.54 | % |
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Demand deposits |
|
| 1,029,538 |
|
|
|
|
|
|
|
|
| 948,851 |
|
|
|
|
|
|
| ||||
Accrued expenses and other liabilities |
|
| 79,882 |
|
|
|
|
|
|
|
|
| 129,980 |
|
|
|
|
|
|
| ||||
Total noninterest-bearing liabilities |
|
| 1,109,420 |
|
|
|
|
|
|
|
|
| 1,078,831 |
|
|
|
|
|
|
| ||||
Shareholders’ equity |
|
| 521,197 |
|
|
|
|
|
|
|
|
| 530,971 |
|
|
|
|
|
|
| ||||
Total liabilities and shareholders’ equity |
| $ | 6,193,665 |
|
|
|
|
|
|
|
| $ | 5,951,573 |
|
|
|
|
|
|
| ||||
Net interest income |
|
|
|
| $ | 43,221 |
|
|
|
|
|
|
|
| $ | 34,040 |
|
|
|
| ||||
Net interest spread |
|
|
|
|
|
|
|
| 2.70 | % |
|
|
|
|
|
|
|
| 2.21 | % | ||||
Net interest margin (D) |
|
|
|
|
|
|
|
| 2.83 | % |
|
|
|
|
|
|
|
| 2.38 | % |
19
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
|
| June 30, 2022 |
|
| March 31, 2022 |
| ||||||||||||||||||
|
| Average |
|
| Income/ |
|
|
|
|
| Average |
|
| Income/ |
|
|
|
| ||||||
|
| Balance |
|
| Expense |
|
| Yield |
|
| Balance |
|
| Expense |
|
| Yield |
| ||||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Taxable (A) |
| $ | 774,145 |
|
| $ | 3,535 |
|
|
| 1.83 | % |
| $ | 928,828 |
|
| $ | 3,606 |
|
|
| 1.55 | % |
Tax-exempt (A) (B) |
|
| 4,193 |
|
|
| 40 |
|
|
| 3.82 |
|
|
| 4,701 |
|
|
| 48 |
|
|
| 4.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Mortgages |
|
| 513,666 |
|
|
| 3,630 |
|
|
| 2.83 |
|
|
| 508,408 |
|
|
| 3,656 |
|
|
| 2.88 |
|
Commercial mortgages |
|
| 2,552,128 |
|
|
| 21,185 |
|
|
| 3.32 |
|
|
| 2,353,032 |
|
|
| 18,175 |
|
|
| 3.09 |
|
Commercial |
|
| 2,024,457 |
|
|
| 19,348 |
|
|
| 3.82 |
|
|
| 2,008,464 |
|
|
| 18,203 |
|
|
| 3.63 |
|
Commercial construction |
|
| 16,186 |
|
|
| 162 |
|
|
| 4.00 |
|
|
| 18,087 |
|
|
| 160 |
|
|
| 3.54 |
|
Installment |
|
| 37,235 |
|
|
| 297 |
|
|
| 3.19 |
|
|
| 34,475 |
|
|
| 254 |
|
|
| 2.95 |
|
Home equity |
|
| 38,061 |
|
|
| 331 |
|
|
| 3.48 |
|
|
| 40,245 |
|
|
| 324 |
|
|
| 3.22 |
|
Other |
|
| 258 |
|
|
| 6 |
|
|
| 9.30 |
|
|
| 283 |
|
|
| 6 |
|
|
| 8.48 |
|
Total loans |
|
| 5,181,991 |
|
|
| 44,959 |
|
|
| 3.47 |
|
|
| 4,962,994 |
|
|
| 40,778 |
|
|
| 3.29 |
|
Federal funds sold |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Interest-earning deposits |
|
| 164,066 |
|
|
| 314 |
|
|
| 0.77 |
|
|
| 127,121 |
|
|
| 29 |
|
|
| 0.09 |
|
Total interest-earning assets |
|
| 6,124,395 |
|
|
| 48,848 |
|
|
| 3.19 | % |
|
| 6,023,644 |
|
|
| 44,461 |
|
|
| 2.95 | % |
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Cash and due from banks |
|
| 9,715 |
|
|
|
|
|
|
|
|
| 7,455 |
|
|
|
|
|
|
| ||||
Allowance for credit losses |
|
| (59,629 | ) |
|
|
|
|
|
|
|
| (61,001 | ) |
|
|
|
|
|
| ||||
Premises and equipment |
|
| 22,952 |
|
|
|
|
|
|
|
|
| 23,022 |
|
|
|
|
|
|
| ||||
Other assets |
|
| 96,232 |
|
|
|
|
|
|
|
|
| 168,239 |
|
|
|
|
|
|
| ||||
Total noninterest-earning assets |
|
| 69,270 |
|
|
|
|
|
|
|
|
| 137,715 |
|
|
|
|
|
|
| ||||
Total assets |
| $ | 6,193,665 |
|
|
|
|
|
|
|
| $ | 6,161,359 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Checking |
| $ | 2,493,668 |
|
| $ | 2,330 |
|
|
| 0.37 | % |
| $ | 2,330,340 |
|
| $ | 1,238 |
|
|
| 0.21 | % |
Money markets |
|
| 1,234,564 |
|
|
| 579 |
|
|
| 0.19 |
|
|
| 1,294,100 |
|
|
| 539 |
|
|
| 0.17 |
|
Savings |
|
| 163,062 |
|
|
| 5 |
|
|
| 0.01 |
|
|
| 156,554 |
|
|
| 5 |
|
|
| 0.01 |
|
Certificates of deposit – retail |
|
| 411,202 |
|
|
| 651 |
|
|
| 0.63 |
|
|
| 426,166 |
|
|
| 606 |
|
|
| 0.57 |
|
Subtotal interest-bearing deposits |
|
| 4,302,496 |
|
|
| 3,565 |
|
|
| 0.33 |
|
|
| 4,207,160 |
|
|
| 2,388 |
|
|
| 0.23 |
|
Interest-bearing demand – brokered |
|
| 85,000 |
|
|
| 364 |
|
|
| 1.71 |
|
|
| 85,000 |
|
|
| 373 |
|
|
| 1.76 |
|
Certificates of deposit – brokered |
|
| 33,470 |
|
|
| 261 |
|
|
| 3.12 |
|
|
| 33,823 |
|
|
| 261 |
|
|
| 3.09 |
|
Total interest-bearing deposits |
|
| 4,420,966 |
|
|
| 4,190 |
|
|
| 0.38 |
|
|
| 4,325,983 |
|
|
| 3,022 |
|
|
| 0.28 |
|
Borrowings |
|
| 3,873 |
|
|
| 10 |
|
|
| 1.03 |
|
|
| 55,513 |
|
|
| 64 |
|
|
| 0.46 |
|
Capital lease obligation |
|
| 5,406 |
|
|
| 64 |
|
|
| 4.74 |
|
|
| 5,662 |
|
|
| 68 |
|
|
| 4.80 |
|
Subordinated debt |
|
| 132,803 |
|
|
| 1,363 |
|
|
| 4.11 |
|
|
| 132,731 |
|
|
| 1,364 |
|
|
| 4.11 |
|
Total interest-bearing liabilities |
|
| 4,563,048 |
|
|
| 5,627 |
|
|
| 0.49 | % |
|
| 4,519,889 |
|
|
| 4,518 |
|
|
| 0.40 | % |
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Demand deposits |
|
| 1,029,538 |
|
|
|
|
|
|
|
|
| 978,288 |
|
|
|
|
|
|
| ||||
Accrued expenses and other liabilities |
|
| 79,882 |
|
|
|
|
|
|
|
|
| 119,003 |
|
|
|
|
|
|
| ||||
Total noninterest-bearing liabilities |
|
| 1,109,420 |
|
|
|
|
|
|
|
|
| 1,097,291 |
|
|
|
|
|
|
| ||||
Shareholders’ equity |
|
| 521,197 |
|
|
|
|
|
|
|
|
| 544,179 |
|
|
|
|
|
|
| ||||
Total liabilities and shareholders’ equity |
| $ | 6,193,665 |
|
|
|
|
|
|
|
| $ | 6,161,359 |
|
|
|
|
|
|
| ||||
Net interest income |
|
|
|
| $ | 43,221 |
|
|
|
|
|
|
|
| $ | 39,943 |
|
|
|
| ||||
Net interest spread |
|
|
|
|
|
|
|
| 2.70 | % |
|
|
|
|
|
|
|
| 2.55 | % | ||||
Net interest margin (D) |
|
|
|
|
|
|
|
| 2.83 | % |
|
|
|
|
|
|
|
| 2.69 | % |
20
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
SIX MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
|
| June 30, 2022 |
|
| June 30, 2021 |
| ||||||||||||||||||
|
| Average |
|
| Income/ |
|
|
|
|
| Average |
|
| Income/ |
|
|
|
| ||||||
|
| Balance |
|
| Expense |
|
| Yield |
|
| Balance |
|
| Expense |
|
| Yield |
| ||||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Taxable (A) |
| $ | 851,059 |
|
| $ | 7,142 |
|
|
| 1.68 | % |
| $ | 823,120 |
|
| $ | 5,649 |
|
|
| 1.37 | % |
Tax-exempt (A) (B) |
|
| 4,446 |
|
|
| 88 |
|
|
| 3.96 |
|
|
| 7,433 |
|
|
| 179 |
|
|
| 4.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Mortgages |
|
| 511,051 |
|
|
| 7,286 |
|
|
| 2.85 |
|
|
| 500,084 |
|
|
| 7,780 |
|
|
| 3.11 |
|
Commercial mortgages |
|
| 2,453,130 |
|
|
| 39,360 |
|
|
| 3.21 |
|
|
| 1,891,125 |
|
|
| 29,476 |
|
|
| 3.12 |
|
Commercial |
|
| 2,016,504 |
|
|
| 37,550 |
|
|
| 3.72 |
|
|
| 1,937,776 |
|
|
| 33,439 |
|
|
| 3.45 |
|
Commercial construction |
|
| 17,131 |
|
|
| 322 |
|
|
| 3.76 |
|
|
| 18,294 |
|
|
| 319 |
|
|
| 3.49 |
|
Installment |
|
| 35,863 |
|
|
| 552 |
|
|
| 3.08 |
|
|
| 35,997 |
|
|
| 531 |
|
|
| 2.95 |
|
Home equity |
|
| 39,147 |
|
|
| 655 |
|
|
| 3.35 |
|
|
| 46,937 |
|
|
| 776 |
|
|
| 3.31 |
|
Other |
|
| 271 |
|
|
| 11 |
|
|
| 8.12 |
|
|
| 233 |
|
|
| 10 |
|
|
| 8.58 |
|
Total loans |
|
| 5,073,097 |
|
|
| 85,736 |
|
|
| 3.38 |
|
|
| 4,430,446 |
|
|
| 72,331 |
|
|
| 3.27 |
|
Federal funds sold |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 96 |
|
|
| — |
|
|
| 0.25 |
|
Interest-earning deposits |
|
| 145,696 |
|
|
| 343 |
|
|
| 0.47 |
|
|
| 491,547 |
|
|
| 225 |
|
|
| 0.09 |
|
Total interest-earning assets |
|
| 6,074,298 |
|
|
| 93,309 |
|
|
| 3.07 | % |
|
| 5,752,642 |
|
|
| 78,384 |
|
|
| 2.73 | % |
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Cash and due from banks |
|
| 8,591 |
|
|
|
|
|
|
|
|
| 10,743 |
|
|
|
|
|
|
| ||||
Allowance for credit losses |
|
| (60,311 | ) |
|
|
|
|
|
|
|
| (69,367 | ) |
|
|
|
|
|
| ||||
Premises and equipment |
|
| 22,987 |
|
|
|
|
|
|
|
|
| 22,972 |
|
|
|
|
|
|
| ||||
Other assets |
|
| 132,266 |
|
|
|
|
|
|
|
|
| 204,390 |
|
|
|
|
|
|
| ||||
Total noninterest-earning assets |
|
| 103,533 |
|
|
|
|
|
|
|
|
| 168,738 |
|
|
|
|
|
|
| ||||
Total assets |
| $ | 6,177,831 |
|
|
|
|
|
|
|
| $ | 5,921,380 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Checking |
| $ | 2,412,456 |
|
| $ | 3,568 |
|
|
| 0.30 | % |
| $ | 1,944,734 |
|
| $ | 1,922 |
|
|
| 0.20 | % |
Money markets |
|
| 1,264,167 |
|
|
| 1,118 |
|
|
| 0.18 |
|
|
| 1,247,464 |
|
|
| 1,521 |
|
|
| 0.24 |
|
Savings |
|
| 159,826 |
|
|
| 10 |
|
|
| 0.01 |
|
|
| 139,648 |
|
|
| 35 |
|
|
| 0.05 |
|
Certificates of deposit – retail |
|
| 418,642 |
|
|
| 1,257 |
|
|
| 0.60 |
|
|
| 510,693 |
|
|
| 2,497 |
|
|
| 0.98 |
|
Subtotal interest-bearing deposits |
|
| 4,255,091 |
|
|
| 5,953 |
|
|
| 0.28 |
|
|
| 3,842,539 |
|
|
| 5,975 |
|
|
| 0.31 |
|
Interest-bearing demand – brokered |
|
| 85,000 |
|
|
| 737 |
|
|
| 1.73 |
|
|
| 107,790 |
|
|
| 949 |
|
|
| 1.76 |
|
Certificates of deposit – brokered |
|
| 33,646 |
|
|
| 522 |
|
|
| 3.10 |
|
|
| 33,776 |
|
|
| 525 |
|
|
| 3.11 |
|
Total interest-bearing deposits |
|
| 4,373,737 |
|
|
| 7,212 |
|
|
| 0.33 |
|
|
| 3,984,105 |
|
|
| 7,449 |
|
|
| 0.37 |
|
Borrowings |
|
| 29,550 |
|
|
| 74 |
|
|
| 0.50 |
|
|
| 176,120 |
|
|
| 391 |
|
|
| 0.44 |
|
Capital lease obligation |
|
| 5,533 |
|
|
| 132 |
|
|
| 4.77 |
|
|
| 6,493 |
|
|
| 155 |
|
|
| 4.77 |
|
Subordinated debt |
|
| 132,767 |
|
|
| 2,727 |
|
|
| 4.11 |
|
|
| 181,555 |
|
|
| 4,292 |
|
|
| 4.73 |
|
Total interest-bearing liabilities |
|
| 4,541,587 |
|
|
| 10,145 |
|
|
| 0.45 | % |
|
| 4,348,273 |
|
|
| 12,287 |
|
|
| 0.57 | % |
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Demand deposits |
|
| 1,004,055 |
|
|
|
|
|
|
|
|
| 898,866 |
|
|
|
|
|
|
| ||||
Accrued expenses and other liabilities |
|
| 99,565 |
|
|
|
|
|
|
|
|
| 145,919 |
|
|
|
|
|
|
| ||||
Total noninterest-bearing liabilities |
|
| 1,103,620 |
|
|
|
|
|
|
|
|
| 1,044,785 |
|
|
|
|
|
|
| ||||
Shareholders’ equity |
|
| 532,624 |
|
|
|
|
|
|
|
|
| 528,322 |
|
|
|
|
|
|
| ||||
Total liabilities and shareholders’ equity |
| $ | 6,177,831 |
|
|
|
|
|
|
|
| $ | 5,921,380 |
|
|
|
|
|
|
| ||||
Net interest income |
|
|
|
| $ | 83,164 |
|
|
|
|
|
|
|
| $ | 66,097 |
|
|
|
| ||||
Net interest spread |
|
|
|
|
|
|
|
| 2.62 | % |
|
|
|
|
|
|
|
| 2.16 | % | ||||
Net interest margin (D) |
|
|
|
|
|
|
|
| 2.76 | % |
|
|
|
|
|
|
|
| 2.32 | % |
21
PEAPACK-GLADSTONE FINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES RECONCILIATION
Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. We calculate tangible book value per share by dividing tangible equity by period end common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders’ equity by period end common shares outstanding. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.
The efficiency ratio is a non-GAAP measure of expense control relative to recurring revenue. We calculate the efficiency ratio by dividing total noninterest expenses, excluding other real estate owned provision, as determined under GAAP, by net interest income and total noninterest income as determined under GAAP, but excluding net gains/(losses) on loans held for sale at lower of cost or fair value and excluding net gains on securities from this calculation, which we refer to below as recurring revenue. We believe that this provides a reasonable measure of core expenses relative to core revenue.
We believe these non-GAAP financial measures provide information that is important to investors and useful in understanding our financial position, results and ratios because our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titles measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share and efficiency ratio to the underlying GAAP numbers is set forth below.
(Dollars in thousands, except share data)
|
| Three Months Ended |
| |||||||||||||||||
|
| June 30, |
|
| March 31, |
|
| Dec 31, |
|
| Sept 30, |
|
| June 30, |
| |||||
Tangible Book Value Per Share |
| 2022 |
|
| 2022 |
|
| 2021 |
|
| 2021 |
|
| 2021 |
| |||||
Shareholders’ equity |
| $ | 520,324 |
|
| $ | 523,426 |
|
| $ | 546,388 |
|
| $ | 543,014 |
|
| $ | 538,459 |
|
Less: Intangible assets, net |
|
| 48,082 |
|
|
| 48,471 |
|
|
| 48,902 |
|
|
| 49,333 |
|
|
| 43,156 |
|
Tangible equity |
| $ | 472,242 |
|
| $ | 474,955 |
|
| $ | 497,486 |
|
| $ | 493,681 |
|
| $ | 495,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Period end shares outstanding |
|
| 18,190,009 |
|
|
| 18,370,312 |
|
|
| 18,393,888 |
|
|
| 18,627,910 |
|
|
| 18,829,877 |
|
Tangible book value per share |
| $ | 25.96 |
|
| $ | 25.85 |
|
| $ | 27.05 |
|
| $ | 26.50 |
|
| $ | 26.30 |
|
Book value per share |
|
| 28.60 |
|
|
| 28.49 |
|
|
| 29.70 |
|
|
| 29.15 |
|
|
| 28.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Tangible Equity to Tangible Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total assets |
| $ | 6,151,167 |
|
| $ | 6,255,664 |
|
| $ | 6,077,993 |
|
| $ | 6,240,285 |
|
| $ | 5,791,688 |
|
Less: Intangible assets, net |
|
| 48,082 |
|
|
| 48,471 |
|
|
| 48,902 |
|
|
| 49,333 |
|
|
| 43,156 |
|
Tangible assets |
| $ | 6,103,085 |
|
| $ | 6,207,193 |
|
| $ | 6,029,091 |
|
| $ | 6,190,952 |
|
| $ | 5,748,532 |
|
Tangible equity to tangible assets |
|
| 7.74 | % |
|
| 7.65 | % |
|
| 8.25 | % |
|
| 7.97 | % |
|
| 8.62 | % |
Equity to assets |
|
| 8.46 | % |
|
| 8.37 | % |
|
| 8.99 | % |
|
| 8.70 | % |
|
| 9.30 | % |
22
|
| Three Months Ended |
| |||||||||||||||||
|
| June 30, |
|
| March 31, |
|
| Dec 31, |
|
| Sept 30, |
|
| June 30, |
| |||||
Return on Average Tangible Equity |
| 2022 |
|
| 2022 |
|
| 2021 |
|
| 2021 |
|
| 2021 |
| |||||
Net income |
| $ | 20,100 |
|
| $ | 13,441 |
|
| $ | 14,855 |
|
| $ | 14,171 |
|
| $ | 14,418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Average shareholders’ equity |
| $ | 521,197 |
|
| $ | 544,179 |
|
| $ | 543,035 |
|
| $ | 544,856 |
|
| $ | 530,971 |
|
Less: Average intangible assets, net |
|
| 48,291 |
|
|
| 48,717 |
|
|
| 49,151 |
|
|
| 48,757 |
|
|
| 43,366 |
|
Average tangible equity |
| $ | 472,906 |
|
| $ | 495,462 |
|
| $ | 493,884 |
|
| $ | 496,099 |
|
| $ | 487,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Return on average tangible common equity |
|
| 17.00 | % |
|
| 10.85 | % |
|
| 12.03 | % |
|
| 11.43 | % |
|
| 11.83 | % |
|
| For the Six Months Ended |
| |||||
|
| June 30, |
|
| June 30, |
| ||
Return on Average Tangible Equity |
| 2022 |
|
| 2021 |
| ||
Net income |
| $ | 33,541 |
|
| $ | 27,596 |
|
|
|
|
|
|
|
| ||
Average shareholders’ equity |
| $ | 532,624 |
|
| $ | 528,322 |
|
Less: Average intangible assets, net |
|
| 48,503 |
|
|
| 43,553 |
|
Average tangible equity |
|
| 484,121 |
|
|
| 484,769 |
|
|
|
|
|
|
|
| ||
Return on average tangible common equity |
|
| 13.86 | % |
|
| 11.39 | % |
|
| Three Months Ended |
| |||||||||||||||||
|
| June 30, |
|
| March 31, |
|
| Dec 31, |
|
| Sept 30, |
|
| June 30, |
| |||||
Efficiency Ratio |
| 2022 |
|
| 2022 |
|
| 2021 |
|
| 2021 |
|
| 2021 |
| |||||
Net interest income |
| $ | 42,893 |
|
| $ | 39,622 |
|
| $ | 37,212 |
|
| $ | 35,211 |
|
| $ | 33,845 |
|
Total other income |
|
| 18,508 |
|
|
| 14,714 |
|
|
| 18,964 |
|
|
| 17,781 |
|
|
| 17,678 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fair value adjustment for CRA equity security |
|
| 475 |
|
|
| 682 |
|
|
| 139 |
|
|
| 70 |
|
|
| (42 | ) |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Loss/(gain) on loans held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
at lower of cost or fair value |
|
| — |
|
|
| — |
|
|
| 265 |
|
|
| — |
|
|
| (1,125 | ) |
Income from life insurance proceeds |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (153 | ) |
Loss on securities sale, net |
|
| — |
|
|
| 6,609 |
|
|
| — |
|
|
| — |
|
|
| — |
|
Loss on swap termination |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 842 |
|
Total recurring revenue |
|
| 61,876 |
|
|
| 61,627 |
|
|
| 56,580 |
|
|
| 53,062 |
|
|
| 51,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating expenses |
|
| 32,659 |
|
|
| 34,169 |
|
|
| 31,704 |
|
|
| 32,185 |
|
|
| 30,684 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Write-off of subordinated debt costs |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 648 |
|
Swap valuation allowance |
|
| — |
|
|
| 673 |
|
|
| 893 |
|
|
| 1,350 |
|
|
| — |
|
Severance expense |
|
| — |
|
|
| 1,476 |
|
|
| — |
|
|
| — |
|
|
| — |
|
Total operating expense |
|
| 32,659 |
|
|
| 32,020 |
|
|
| 30,811 |
|
|
| 30,835 |
|
|
| 30,036 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Efficiency ratio |
|
| 52.78 | % |
|
| 51.96 | % |
|
| 54.46 | % |
|
| 58.11 | % |
|
| 58.84 | % |
23
|
| For the Six Months Ended |
| |||||
|
| June 30, |
|
| June 30, |
| ||
Efficiency Ratio |
| 2022 |
|
| 2021 |
| ||
Net interest income |
| $ | 82,515 |
|
| $ | 65,638 |
|
Total other income |
|
| 33,222 |
|
|
| 35,498 |
|
Add: |
|
|
|
|
|
| ||
Fair value adjustment for CRA equity security |
|
| 1,157 |
|
|
| 223 |
|
Less: |
|
|
|
|
|
| ||
Loss on swap termination |
|
| — |
|
|
| 842 |
|
Income from life insurance proceeds |
|
| — |
|
|
| (455 | ) |
Loss/(gain) on loans held for sale |
|
|
|
|
|
| ||
at lower of cost or fair value |
|
| — |
|
|
| (1,407 | ) |
Loss on securities sale, net |
|
| 6,609 |
|
|
| — |
|
Total recurring revenue |
|
| 123,503 |
|
|
| 100,339 |
|
|
|
|
|
|
|
| ||
Operating expenses |
|
| 66,828 |
|
|
| 62,278 |
|
Less: |
|
|
|
|
|
| ||
Write-off of subordinated debt costs |
|
| — |
|
|
| 648 |
|
Swap valuation allowance |
|
| 673 |
|
|
| — |
|
Severance expense |
|
| 1,476 |
|
|
| 1,532 |
|
Total operating expense |
|
| 64,679 |
|
|
| 60,098 |
|
|
|
|
|
|
|
| ||
Efficiency ratio |
|
| 52.37 | % |
|
| 59.89 | % |
24