Contact:
Arthur F. Birmingham
Peapack-Gladstone Financial Corporation
T: 908-719-4308
PEAPACK-GLADSTONE FINANCIAL CORPORATION
REPORTS FIRST QUARTER RESULTS
GLADSTONE, N.J.--(BUSINESS WIRE)--April 27, 2004 - Peapack-Gladstone Financial
Corporation (AMEX:PGC) reported net income of $3.3 million for the quarter ended
March 31, 2004, marginally higher when compared to the same quarter last year.
Net income per diluted share also remained constant at $0.43 for the first
quarters of 2004 and 2003. Annualized return on average assets ("ROA") was 1.38
percent and annualized return on average equity ("ROE") was 15.14 percent for
the first quarter of 2004.
Frank A. Kissel, Chairman and CEO, stated, "For the first quarter of 2004,
our net interest income increased 5.6 percent when compared to the first quarter
of 2003. We believe that this improvement is due to our commitment to managing
our interest rate risk during this low rate environment and keeping to our
business plan." Mr. Kissel continued, "Loan demand continues to improve, rising
over 7 percent and deposit growth also remains strong, growing over 6 percent
over last year's levels. The market value of trust assets under management by
PGB Trust and Investments grew to $1.5 billion, an increase of over 19 percent
over the levels at March 31, 2003. This summer, we expect to open new branches
in Oldwick and Morristown. We expect continued growth in deposits, loans and our
Trust business as a result of these new branches."
EARNINGS
Net Interest Income
In the first quarter of 2004, net interest income, on a tax-equivalent
basis, was $8.6 million, an increase of $508 thousand or 6.3 percent over the
same period last year and an increase of $243 thousand or 2.9 percent over the
fourth quarter of 2003. On a fully tax-equivalent basis, net interest margin for
the first quarter was 3.81 percent as compared to 3.96 percent for the same
quarter last year and 3.43 percent in the fourth quarter of 2003.
Average earning assets in the first quarter of 2004 increased 10.4 percent
to $899.0 million from $814.3 million in the first quarter of 2003. The yield on
interest earnings assets declined 50 basis points to 4.77 percent in the first
quarter of 2004 from 5.27 percent in the first quarter of 2003.
The growth in earnings assets during the first quarter of 2004 was
primarily in the investment securities and loan portfolios. Average investment
securities rose $58.5 million or 14.5 percent while average loans rose $25.0
million or 6.2 percent.
Total average deposits for the first quarter of 2004 grew $51.4 million or
6.7 percent to $821.0 million from $769.6 million for the first quarter of 2003.
Total average borrowings increased from $8.4 million in the first quarter of
2003 to $36.5 million in the first quarter 2004 as the Corporation extended the
maturities of borrowings and matched them with lower yielding fixed rate loans
to attempt to reduce interest rate risk if interest rates begin to rise. The
cost of
funds fell to 1.01 percent in the first quarter of 2004 as compared to 1.38
percent in the first quarter of 2003.
Other Income
For the quarter ended March 31, 2004, total non-interest income was $2.6
million as compared to $2.5 million for the quarter ended March 31, 2003, an
increase of $138 thousand or 5.6 percent. Net gains on the sales of securities
were $193 thousand in the first quarter of 2004 as compared to $273 thousand in
the first quarter of 2003, a decline of $80 thousand. Year to date March 31,
2004, PGB Trust and Investments generated trust fee income of $1.7 million, an
increase of $240 thousand or 16.6 percent, over the $1.4 million recorded for
the same period in 2003.
Other Expense
Other expenses totaled $6.0 million for the first quarter of 2004, an
increase of $631 thousand or 11.7 percent over the $5.4 million reported for the
same quarter of 2003. This increase is due to higher salaries and benefits and
premises and equipment costs. Increased salaries and benefits expenses can be
attributed to additions to the professional staff, salary adjustments to attract
and retain highly qualified employees and higher health insurance and pension
costs. Higher premises and equipment costs relate to costs associated with new
branch locations and a new operations center. The investment in the new
operations center expands the Corporation's technological capacity for future
growth.
ASSET QUALITY
Non-performing loans totaled $153 thousand or 0.04 percent of total loans
at March 31, 2004 as compared to $188 thousand or 0.05 percent at March 31,
2003. The allowance for loan losses was $5.6 million or 1.29 percent of total
loans at March 31, 2004 as compared to $5.0 million or 1.25 percent of total
loans at March 31, 2003. For the first quarter of 2003, net chargeoffs were $55
thousand as compared to net recoveries of $35 thousand during the first quarter
of 2003.
CAPITAL
At March 31, 2004, shareholders' equity totaled $89.3 million as compared
with $79.4 million at March 31, 2003, an increase of $9.9 million or 12.5
percent. The Corporation's leverage ratio, tier 1 and total risk based capital
ratios at March 31, 2004 were 8.89 percent, 20.71 percent and 22.07 percent,
respectively.
Peapack-Gladstone Financial Corporation, headquartered in
Peapack-Gladstone, New Jersey, and listed on the American Stock Exchange under
the symbol "PGC", is the holding company for the Peapack-Gladstone Bank.
Peapack-Gladstone Bank, a community bank, was established in 1921, and has 17
branches in Somerset, Hunterdon and Morris Counties. Its Trust Division, PGB
Trust and Investments, with $1.5 billion in assets at market value under
management at March 31, 2004, operates at the Bank's main office located at 190
Main Street in Gladstone, New Jersey, and the Chatham Office located at 311 Main
Street, Chatham, New Jersey. To learn more about Peapack
- -Gladstone Financial Corporation and its services please visit our web site at
www.pgbank.com or call 908-234-0700.
- --------------
The foregoing contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are not
historical facts and include expressions about management's view of future
interest income and net loans, management's confidence and strategies and
management's expectations about new and existing programs and products,
relationships, opportunities and market conditions. These statements may be
identified by such forward-looking terminology as "expect", "look", "believe",
"anticipate", "may", "will", 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, an unexpected decline in the
direction of the economy in New Jersey, an unexpected decline or no increase in
interest rates, continued unexpected loan prepayment volume, a decline in levels
of loan quality and origination volume and a decline in the volume of increase
in trust assets or deposits. Peapack-Gladstone assumes no obligation for
updating any such forward-looking statements at any time.
(Tables to Follow)
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
UNAUDITED
(Dollars in Thousands, Except Per Share Amounts)
At or For The Three Months
Ended
March 31,
2004 2003
---- ----
Income Statement Data:
Interest Income $ 10,522 $ 10,602
Interest Expense 2,159 2,684
----------- -----------
Net Interest Income 8,363 7,918
Provision For Loan Losses 150 150
Net Interest Income After
----------- -----------
Provision For Loan Losses 8,213 7,768
Other Income 744 766
Securities Gains 193 273
Trust Fees 1,683 1,443
Other Expenses 6,039 5,408
----------- -----------
Income Before Income Taxes 4,794 4,842
Income Tax Expense 1,513 1,582
----------- -----------
Net Income $ 3,281 $ 3,260
=========== ===========
Balance Sheet Data:
Total Assets $ 974,679 $ 897,280
Federal Funds Sold 24,592 13,928
Short-Term Investments 721 698
Securities Held To Maturity 94,883 162,912
Securities Available For Sale 366,155 263,172
Loans 429,636 400,063
Allowance For Loan Losses 5,562 4,983
Deposits 846,805 797,495
Borrowings 29,627 11,000
Shareholders' Equity 89,302 79,395
Trust Department Assets
(Book Value, Not
Included Above) $ 1,139,188 $ 1,018,924
Average Balance Sheet Data:
Total Assets $ 951,597 $ 864,843
Earning Assets 898,975 814,344
Loans, net 420,898 396,591
Interest-Bearing Deposits 672,155 645,677
Demand Deposits 148,884 123,946
Borrowings 36,495 8,368
Shareholders' Equity 86,705 78,351
Performance Ratios:
Return on Average Assets 1.38% 1.51%
Return on Average Equity 15.14 16.64
Net Interest Margin
(Taxable Equivalent Basis) 3.81% 3.96%
Asset Quality:
Loans past due over 90 days
And Still Accruing $ 52 $ 15
Non-Accrual Loans 101 173
Net (Charge-Offs)/Recoveries (55) 35
Allowance For Loan Losses
To Total Loans 1.29% 1.25%
Per Share Data:
Earnings Per Share (Basic) $ 0.44 $ 0.44
Earnings Per Share (Diluted) 0.43 0.43
Book Value Per Share 12.01 10.76
Dividends Per Share 0.10 0.09
Capital Adequacy:
Tier I Leverage 8.89% 8.62%
Tier I Capital to Risk-Weighted
Assets 20.71 20.04
Tier I & II Capital to
Risk-Weighted Assets 22.07 21.38
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
(Tax-Equivalent Basis, Dollars in Thousands)
March 31, 2004 March 31, 2003
Average Income/ Average Income/
Balance Expense Yield Balance Expense Yield
------- ------- ----- ------- ------- -----
ASSETS:
Interest-Earning Assets:
Investments:
Taxable $ 424,362 $ 4,059 3.83% $ 381,409 $ 3,836 4.02%
Tax-Exempt (1) 37,155 488 5.25% 21,654 328 6.09%
Loans (1) (2) 426,423 6,145 5.76% 401,467 6,543 6.52%
Federal Funds Sold 6,794 16 0.95% 9,249 28 1.23%
Interest-Earning Deposits 4,240 11 1.07% 567 1 1.02%
Total Interest-Earning
--------- ------------------------ --------- ----------------------
Assets 898,974 $ 10,719 4.77% 814,346 $ 10,736 5.27%
--------- ------------------------ --------- ----------------------
Noninterest-Earning Assets:
Cash and Due from Banks 18,845 19,007
Allowance for Loan
Losses (5,526) (4,875)
Premises and Equipment 15,972 14,627
Other Assets 23,332 21,738
Total Noninterest-Earning
--------- ---------
Assets 52,623 50,497
--------- ---------
Total Assets $ 951,597 $ 864,843
========= =========
LIABILITIES:
Interest-Bearing Deposits
Checking $ 131,837 $ 110 0.34% $ 126,862 $ 182 0.58%
Money Markets 65,412 101 0.62% 67,796 175 1.03%
Tiered Money Markets 149,460 344 0.92% 118,886 385 1.30%
Savings 102,276 161 0.63% 95,548 230 0.96%
Certificates of Deposit 223,170 1,174 2.10% 236,585 1,656 2.80%
Total Interest-Bearing
--------- ------------------------ --------- ----------------------
Deposits 672,155 1,890 1.12% 645,677 2,628 1.63%
Borrowings 36,495 269 2.94% 8,368 56 2.66%
Total Interest-Bearing
--------- ------------------------ --------- ----------------------
Liabilities 708,650 2,159 1.22% 654,045 2,684 1.64%
--------- ------------------------ --------- ----------------------
Noninterest Bearing
Liabilities
Demand Deposits 148,884 123,946
Accrued Expenses and
Other Liabilities 7,358 8,501
Total Noninterest-Bearing
--------- ---------
Liabilities 156,242 132,447
Shareholders' Equity 86,705 78,351
Total Liabilities and
--------- ---------
Shareholders' Equity $ 951,597 $ 864,843
========= =========
Net Interest Income $ 8,560 $ 8,052
========= =========
Net Interest Spread 3.55% 3.63%
==== ====
Net Interest Margin (3) 3.81% 3.96%
==== ====
(1) Interest income is presented on a tax-equivalent basis using a 35 percent
federal tax rate.
(2) Loans are stated net of unearned income and include non-accrual loans.s
(3) Net interest income on a tax-equivalent basis as a percentage of total
average interest-earning assets.