BEDMINSTER, NJ -- (Marketwire) -- 11/01/12 -- For the quarter ended September 30, 2012, Peapack-Gladstone Financial Corporation (NASDAQ: PGC) (the Company) recorded net income available to common shareholders of $2.83 million and diluted earnings per share (EPS) of $0.32. For the nine months ended September 30, 2012, the Company recorded net income available to common shareholders of $8.16 million and diluted earnings per share of $0.93.
Frank A. Kissel, Chairman stated, "This was another solid quarter for us and it reflects the strength and positive momentum of the Company. We are in a great position as Doug Kennedy takes the reins as CEO. I am confident that Doug's leadership will further energize the Company as we continue on the offensive to grow the business."
Income taxes for the 2011 quarter and nine months ended September 30 included a one-time state tax benefit of $2.99 million, or $0.34 per diluted share, related to the reversal of a previously recorded valuation allowance.
For comparative purposes, the Company believes that comparing earnings excluding the one-time state tax benefit provides a better analysis of earnings trends. The information discussed in the next two paragraphs is a non-GAAP measure.
As detailed in the financial table on page 14, net income available to common shareholders and diluted earnings per share for the quarter ended September 30, 2011, excluding the one-time state tax benefit, was $2.13 million and $0.24. When the 2012 quarter is compared to the 2011 quarter, the 2012 quarter reflects increases of $707 thousand or 33 percent in net income available to common shareholders and 8 cents, also 33 percent, in diluted earnings per share.
Net income and diluted earnings per share for the nine months ended September 30, 2011, excluding the one-time state tax benefit, was $5.65 million and $0.64. When the 2012 nine month period is compared to the 2011 nine month period, the 2012 period reflects increases of $2.52 million or 45 percent in net income available to common shareholders and $0.29 cents, also 45 percent, in diluted earnings per share.
Net Interest Income and Margin
Net interest income, on a fully tax-equivalent basis, was $13.00 million for the third quarter of 2012, up from $12.06 million for the same quarter last year.
On a fully tax-equivalent basis, the net interest margin was 3.50 percent for the September 2012 quarter compared to 3.37 percent for the September 2011 quarter.
In comparing the September 2012 quarter to the September 2011 quarter, the positive effect of increased loans, funded by reduced lower yielding investment securities and increased lower cost core deposits, was partially offset by the effect of lower Treasury yields, which compressed asset yields more than deposit costs.
Loans
Average loans totaled $1.10 billion for the third quarter of 2012 as compared to $964 million for the same 2011 quarter, an increase of $134 million.
The average residential mortgage loan portfolio for the third quarter of 2012 increased $87 million when compared to the same quarter of 2011. The increase is attributable to originations retained in the portfolio that have outpaced loan paydowns. During this period of lower interest rates, refinance activity has generally been robust. All of the shorter duration loan production and select longer duration production has been retained in portfolio. However, the Company does sell much of its longer duration, fixed rate loan production as a source of noninterest income and as part of its interest rate risk management strategy in the lower rate environment.
The average commercial mortgage and commercial loan portfolio for the third quarter of 2012 increased $53 million from the third quarter of 2011. The increase was attributable to commercial mortgage demand, principally from high quality borrowers looking to refinance multifamily and other commercial mortgages held by other institutions.
From December 31, 2011 to September 30, 2012, total loans grew $58 million or 7.5% annualized. Total loan originations were $281 million for the first nine months of 2012, up from $206 million for the same nine month period of 2011. Included in the total were commercial mortgage/commercial loan originations of $95 million for the 2012 nine month period, up from $76 million for the 2011 nine month period.
Douglas L. Kennedy, CEO said, "I am pleased to have joined a Company that has been so successful in generating new solid lending opportunities. I look forward to continuing to grow our loan book as we move into 2013."
As of September 30, 2012, the residential first mortgage loan pipeline (loans approved, but not closed and funded) stood at $49 million and the commercial mortgage/commercial loan pipeline stood at a record $81 million, with many other lending opportunities in the discussion stage.
Deposits
Average total deposits (interest-bearing and noninterest-bearing) increased $57 million for the September 2012 quarter from the same quarter last year.
Average noninterest-bearing checking balances grew $59 million for the third quarter of 2012 when compared to the third quarter of 2011. Average interest-bearing checking balances for the quarter ended September 30, 2012 grew $14 million from the same quarter in 2011. Average savings accounts increased $16 million from the third quarter of 2011 to the third quarter of 2012.
Overall checking and savings growth continues to be attributable to the Company's relationship orientation. The Company has successfully focused on:
- Business and personal core deposit generation, particularly checking;
- Establishing municipal relationships within its market territory; and
- Growth in deposits associated with its commercial mortgage/commercial loan growth.
Average certificates of deposit (CDs) declined $15 million for the September 2012 quarter from the September 2011 quarter. These higher-cost CDs were replaced with lower cost, more stable core deposits.
From December 31, 2011 to September 30, 2012, total deposits declined slightly, as various municipalities utilized funds in 2012 that were held on deposit at year end.
Mr. Kennedy commented, "This is a strong and valuable deposit franchise, as evidenced by our high level of lower-cost, more stable core deposits. Additionally, I see lots of opportunities in our core markets."
PGB Trust & Investments
PGB Trust & Investments generated $2.92 million in fee income in the third quarter of 2012 compared to $2.56 million for the third quarter of 2011, reflecting 14 percent growth. The market value of the assets under administration of the wealth management division stood at $2.15 billion at September 30, 2012, up from $1.96 billion reported at December 31, 2011 and up from $1.86 billion reported at September 30, 2011.
Mr. Kennedy noted, "The Wealth Management business adds significant value to the Company. I look forward to our Company continuing to grow and provide personalized service to this valued client base."
Other Noninterest Income
Other noninterest income, exclusive of Trust fees, totaled $1.64 million in the September 2012 quarter compared to $1.42 million in the same quarter a year ago, reflecting an increase of $223 thousand. The 2012 quarter included $358 thousand of fee income from sale of longer term, fixed rate residential mortgage loans, compared to $115 thousand in the same 2011 quarter. The $243 thousand increase was due to higher residential mortgage loan origination levels, as well as a decision to retain less fixed rate loans in the portfolio. The 2012 quarter also included $22 thousand of gains from sales of other real estate owned. These positives were slightly offset by reduced gains from the strategic sales of securities and reduced service charges, as customers have been more diligent in managing their accounts.
Operating Expenses
The Company's total operating expenses were $11.99 million in the September 2012 quarter compared to $10.57 million in the September 2011 quarter. The 2012 expense levels included: costs for the Company to keep up with the increased regulatory burden on financial institutions; costs associated with key additions to staff in PGB Trust & Investments, to enhance their ability to grow and service their client base; increased commissions related to increased loan originations; normal salary increases; and increased bonus and profit sharing accruals. Additionally, the valuation of post retirement benefits for non-employee directors contributed approximately $475 thousand to operating expenses this quarter, due to an increase in the estimated future benefit amounts and, to a lesser extent, lower market rates required to be used in discounting such benefits. Also, initial expenses associated with the CEO search contributed approximately $75 thousand to expense levels this quarter. With the CEO search completed in the fourth quarter of 2012, the Company anticipates additional final costs to be recorded in that quarter. The net effect of the additional costs in the third quarter of 2012 were partially offset by various operational efficiencies.
Provision for Loan Losses / Asset Quality
The Company's provision for loan losses for the quarter ended September 30, 2012 was $750 thousand, lower than the $1.50 million provision recorded in the September 2011 quarter.
The Company continues to see improvement in credit metrics, as well as the overall condition of borrowers. Charge-offs, net of recoveries, for the third quarter of 2012 were $543 thousand, compared to $1.7 million for the same quarter of 2011. For the September 2012 quarter, nonperforming loans have declined and loans 30 through 89 days past due have declined significantly.
At September 30, 2012, nonperforming assets totaled $20.4 million or 1.29 percent of total assets, compared to $26.3 million or 1.65 percent of assets at December 31, 2011 and $26.2 million or 1.66 percent of assets at September 30, 2011.
Capital / Dividends
As noted in prior quarters, the preferred stock issued in January 2009 under Treasury's Capital Purchase Program (CPP) was fully redeemed early in the first quarter of 2012. At September 30, 2012, including the effect from this redemption, the Company's leverage ratio, tier 1 and total risk based capital ratios were 7.31 percent, 11.51 percent and 12.76 percent, respectively. The Company's ratios are all above the levels necessary to be considered well capitalized under regulatory guidelines applicable to banks. Additionally, the Company's common equity ratio (common equity to total assets) at September 30, 2012 was 7.42 percent of total assets, reflecting growth from 6.81 percent of total assets at December 31, 2011.
As previously announced, on October 18, 2012, the Board of Directors declared a regular cash dividend of $0.05 per share payable on November 16, 2012 to shareholders of record on November 1, 2012.
ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.58 billion as of September 30, 2012. Peapack-Gladstone Bank, its wholly owned community bank, was established in 1921, and has 23 branches in Somerset, Hunterdon, Morris, Middlesex and Union Counties. The Bank's wealth management division, PGB Trust & Investments, operates at the Bank's corporate offices located at 500 Hills Drive in Bedminster and at four other locations in Clinton, Morristown and Summit, New Jersey and Bethlehem, Pennsylvania. To learn more about Peapack-Gladstone Financial Corporation and its services please visit our website at www.pgbank.com or call 908-234-0700.
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's expectations about new and existing programs and products, investments, relationships, opportunities and market conditions. These statements may be identified by such forward-looking terminology as "expect", "look", "believe", "anticipate", "may", or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to
- a continued or unexpected decline in the economy, in particular in our New Jersey market area;
- declines in value in our investment portfolio;
- higher than expected increases in our allowance for loan losses;
- higher than expected increases in loan losses or in the level of nonperforming loans;
- unexpected changes in interest rates;
- inability to successfully grow our business;
- inability to manage our growth;
- a continued or unexpected decline in real estate values within our market areas;
- legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulations) subject us to additional regulatory oversight which may result in increased compliance costs;
- successful cyber attacks against our IT infrastructure and that of our IT providers;
- higher than expected FDIC insurance premiums;
- lack of liquidity to funds our various cash obligations;
- reduction in our lower-cost funding sources;
- our inability to adapt to technological changes;
- claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters; and
- other unexpected material adverse changes in our operations or earnings.
A discussion of these and other factors that could affect our results is included in our SEC filings, including our Annual Report on form 10-K for the year ended December 31, 2011 and our subsequent Quarterly Reports on Form 10-Q. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Corporation's expectations.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
(Tables to Follow)
PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)
As of
------------------------------------------------------
Sept 30, June 30, March 31, Dec 31, Sept 30,
2012 2012 2012 2011 2011
---------- ---------- ---------- ---------- ----------
ASSETS
Cash and due from
banks $ 5,466 $ 5,639 $ 5,146 $ 7,097 $ 8,135
Federal funds sold 100 100 100 100 100
Interest-earning
deposits 49,354 29,024 28,144 35,856 66,424
---------- ---------- ---------- ---------- ----------
Total cash and cash
equivalents 54,920 34,763 33,390 43,053 74,659
Securities held to
maturity 76,698 84,779 88,667 100,719 121,241
Securities available
for sale 253,489 257,318 281,770 319,520 311,927
FHLB and FRB Stock,
at cost 4,639 4,818 5,594 4,569 4,699
Loans held for sale,
at fair value 8,443 2,259 3,214 2,841 722
Residential mortgage 504,407 526,726 518,111 498,482 438,828
Commercial mortgage 391,976 384,289 358,822 330,559 317,066
Commercial loans 115,602 116,493 119,351 123,845 129,039
Construction loans 9,639 6,804 12,517 13,713 14,893
Consumer loans 21,542 20,885 19,769 19,439 20,345
Home equity lines of
credit 51,440 49,057 47,831 50,291 51,458
Other loans 1,876 2,128 1,504 2,016 1,564
---------- ---------- ---------- ---------- ----------
Total loans 1,096,482 1,106,382 1,077,905 1,038,345 973,193
Less: Allowance for
loan losses 13,893 13,686 13,496 13,223 13,843
---------- ---------- ---------- ---------- ----------
Net loans 1,082,589 1,092,696 1,064,409 1,025,122 959,350
Premises and
equipment 30,472 30,979 31,482 31,941 32,497
Other real estate
owned 3,392 3,073 3,391 7,137 3,264
Accrued interest
receivable 4,040 3,447 3,842 4,078 3,788
Bank owned life
insurance 30,887 30,688 30,490 27,296 27,767
Deferred tax assets,
net 25,861 26,430 26,767 26,731 27,543
Other assets 8,060 7,355 6,524 7,328 7,831
---------- ---------- ---------- ---------- ----------
TOTAL ASSETS $1,583,490 $1,578,605 $1,579,540 $1,600,335 $1,575,288
========== ========== ========== ========== ==========
LIABILITIES
Deposits:
Noninterest-bearing
demand deposits $ 306,711 $ 304,651 $ 288,130 $ 297,459 $ 254,646
Interest-bearing
deposits
Checking 332,786 323,813 318,239 341,180 337,900
Savings 103,572 104,631 98,743 92,322 89,527
Money market
accounts 504,863 495,929 512,464 516,920 511,059
CD's $100,000 and
over 72,168 78,268 73,927 71,783 76,100
CD's less than
$100,000 112,586 115,793 120,140 124,228 127,778
---------- ---------- ---------- ---------- ----------
Total deposits 1,432,686 1,423,085 1,411,643 1,443,892 1,397,010
Overnight borrowings - - 22,900 - -
Federal home loan
bank advances 12,335 16,451 17,566 17,680 20,793
Capital lease
obligation 9,024 9,076 9,127 9,178 6,396
Other Liabilities 11,967 15,758 7,170 6,614 30,406
---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES 1,466,012 1,464,370 1,468,406 1,477,364 1,454,605
Shareholders' equity 117,478 114,235 111,134 122,971 120,683
---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,583,490 $1,578,605 $1,579,540 $1,600,335 $1,575,288
========== ========== ========== ========== ==========
Trust division assets
under administration
(market value, not
included above) $2,146,920 $2,062,798 $2,063,729 $1,957,146 $1,857,527
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
As of
-----------------------------------------------------
Sept 30, June 30, March 31, Dec 31, Sept 30,
2012 2012 2012 2011 2011
--------- --------- --------- --------- ---------
Asset Quality:
Loans past due over
90 days and still
accruing $ - $ - $ - $ 345 $ 836
Nonaccrual loans 16,958 19,011 18,598 18,865 22,103
Other real estate
owned 3,392 3,073 3,391 7,137 3,264
--------- --------- --------- --------- ---------
Total nonperforming
assets $ 20,350 $ 22,084 $ 21,989 $ 26,347 $ 26,203
========= ========= ========= ========= =========
Nonperforming loans
to total loans 1.55% 1.72% 1.73% 1.85% 2.36%
Nonperforming assets
to total assets 1.29% 1.40% 1.39% 1.65% 1.66%
Accruing TDR's (A) $ 7,626 $ 7,647 $ 7,842 $ 7,281 $ 5,519
Loans past due 30
through 89 days and
still accruing $ 2,244 $ 2,836 $ 7,619 $ 11,632 $ 9,706
Classified loans (B) $ 47,017 $ 47,102 $ 48,546 $ 49,101 $ 52,031
Impaired loans (B) $ 24,584 $ 26,658 $ 26,568 $ 26,212 $ 27,529
Allowance for loan
losses:
Beginning of period $ 13,686 $ 13,496 $ 13,223 $ 13,843 $ 14,056
Provision for loan
losses 750 1,500 1,500 1,750 1,500
Charge-offs, net (543) (1,310) (1,227) (2,370) (1,713)
--------- --------- --------- --------- ---------
End of period $ 13,893 $ 13,686 $ 13,496 $ 13,223 $ 13,843
========= ========= ========= ========= =========
ALLL to nonperforming
loans 81.93% 71.99% 72.57% 68.83% 60.35%
ALLL to total loans 1.27% 1.24% 1.25% 1.27% 1.42%
Capital Adequacy:
Tier I leverage 7.31% 7.15% 7.00% 7.73% 7.86%
Tier I capital to
risk-weighted assets 11.51% 11.27% 11.21% 12.51% 12.73%
Tier I & II capital
to risk-weighted
assets 12.76% 12.52% 12.46% 13.76% 13.98%
Common equity to
total assets 7.42% 7.24% 7.04% 6.81% 6.78%
Book value per common
share $ 13.38 $ 13.02 $ 12.70 $ 12.47 $ 12.09
(A) Does not include $5.7 million at September 30, 2012, $6.1 million at
June 30, 2012, $6.0 million at March 31, 2012, $3.8 million at December 31,
2011 and $3.9 million at September 30, 2011 of TDR's included in nonaccrual
loans.
(B) Classified loans include all impaired loans. Impaired loans include all
nonaccrual loans and all TDRs.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
-------------------------------------------------
Sept 30, June 30, March 31, Dec 31, Sept 30,
2012 2012 2012 2011 2011
--------- --------- --------- --------- ---------
Income Statement Data:
Interest income $ 13,982 $ 14,102 $ 14,214 $ 14,101 $ 13,594
Interest expense 1,132 1,199 1,323 1,485 1,699
--------- --------- --------- --------- ---------
Net interest income 12,850 12,903 12,891 12,616 11,895
Provision for loan
losses 750 1,500 1,500 1,750 1,500
--------- --------- --------- --------- ---------
Net interest income
after provision for
loan losses 12,100 11,403 11,391 10,866 10,395
Trust fees 2,918 3,259 3,176 2,584 2,555
Other income 1,406 1,305 1,157 1,350 1,170
Securities
gains/(losses), net 235 107 390 316 248
--------- --------- --------- --------- ---------
Total other income 4,559 4,671 4,723 4,250 3,973
--------- --------- --------- --------- ---------
Salaries and employee
benefits 7,029 6,408 6,113 5,651 5,789
Premises and equipment 2,290 2,413 2,331 2,313 2,322
FDIC insurance expense 299 290 352 278 253
Other expenses 2,375 2,593 2,284 3,306 2,209
--------- --------- --------- --------- ---------
Total operating
expenses 11,993 11,704 11,080 11,548 10,573
--------- --------- --------- --------- ---------
Income before income
taxes 4,666 4,370 5,034 3,568 3,795
Income tax
expense/(benefit) 1,834 1,647 1,951 1,041 (1,537)(A)
--------- --------- --------- --------- ---------
Net income 2,832 2,723 3,083 2,527 5,332 (B)
Dividends and
accretion on
preferred stock - - 474 220 219
--------- --------- --------- --------- ---------
Net income available
to common
shareholders $ 2,832 $ 2,723 $ 2,609 $ 2,307 $ 5,113 (B)
========= ========= ========= ========= =========
Per Common Share Data:
Earnings per share
(basic) $ 0.32 $ 0.31 $ 0.30 $ 0.26 $ 0.58 (C)
Earnings per share
(diluted) 0.32 0.31 0.30 0.26 0.58 (C)
Performance Ratios:
Return on average
assets 0.72% 0.69% 0.78% 0.64% 1.39%(D)
Return on average
common equity 9.77% 9.65% 9.47% 8.61% 19.87%(E)
Net interest margin
(Taxable equivalent
basis) 3.50% 3.52% 3.54% 3.46% 3.37%
(A) Income taxes for the third quarter includes a one-time state tax benefit
of $2.988 million related to the reversal of a previously recorded valuation
allowance against net state tax benefits related to security impairment
charges recorded in the year ended December 31, 2008. Circumstances and
projections now indicate that this deferred tax asset can be utilized when
it is realized in future periods.
(B) Net income and net income available to common shareholders, excluding
the one-time state tax benefit of $2.988 million would be $2.344 million and
$2.125 million, respectively for the third quarter. See page 14 for more
information on this non-GAAP measure.
(C) EPS excluding the one-time state tax benefit of $2.988 million is $0.24
for the third quarter. See page 14 for more information on this non-GAAP
measure.
(D) ROA excluding the one-time state tax benefit of $2.988 million is 0.61%
for the third quarter. See page 14 for more information on this non-GAAP
measure.
(E) ROE excluding the one-time state tax benefit of $2.988 million is 8.26%
for the third quarter. See page 14 for more information on this non-GAAP
measure.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
For the
Nine Months Ended
September 30,
2012 2011
--------- ---------
Income Statement Data:
Interest income $ 42,298 $ 41,950
Interest expense 3,654 5,651
--------- ---------
Net interest income 38,644 36,299
Provision for loan losses 3,750 5,500
--------- ---------
Net interest income after provision for loan
losses 34,894 30,799
Trust fees 9,353 8,102
Other income 3,868 3,643
Securities gains/(losses), net 732 721
--------- ---------
Total other income 13,953 12,466
--------- ---------
Salaries and employee benefits 19,550 17,579
Premises and equipment 7,034 7,058
FDIC insurance expense 941 1,254
Other expenses 7,252 6,960
--------- ---------
Total operating expenses 34,777 32,851
--------- ---------
Income before income taxes 14,070 10,414
Income tax expense 5,432 773 (A)
--------- ---------
Net income 8,638 9,641 (B)
Dividends and accretion on preferred stock 474 1,008
--------- ---------
Net income available to common shareholders $ 8,164 $ 8,633 (B)
========= =========
Per Common Share Data:
Earnings per share (basic) $ 0.93 $ 0.98 (C)
Earnings per share (diluted) 0.93 0.98 (C)
Performance Ratios:
Return on average assets 0.73% 0.85% (D)
Return on average common equity 9.63% 11.50% (E)
Net interest margin
(Tax equivalent basis) 3.52% 3.46%
(A) Income taxes for the nine months ended 9/30/11 includes a one-time state
tax benefit of $2.988 million related to the reversal of a previously
recorded valuation allowance against net state tax benefits related to
security impairment charges recorded in the year ended December 31, 2008.
Circumstances and projections now indicate that this deferred tax asset can
be utilized when it is realized in future periods.
(B) Net income and net income available to common shareholders, excluding
the one-time state tax benefit of $2.988 million would be $6.653 million and
$5.645 million, respectively for the nine months ended 9/30/11. See page 14
for more information on this non-GAAP measure.
(C) EPS excluding the one-time state tax benefit of $2.988 million is $0.64
for the nine months ended 9/30/11. See page 14 for more information on this
non-GAAP measure.
(D) ROA excluding the one-time state tax benefit of $2.988 million is 0.59%
for the nine months ended 9/30/11. See page 14 for more information on this
non-GAAP measure.
(E) ROE excluding the one-time state tax benefit of $2.988 million is 7.52%
for the nine months ended 9/30/11. See page 14 for more information on this
non-GAAP measure.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
NON-GAAP RECONCILIATION
(Dollars in thousands, except share data)
This press release contains certain supplemental financial information, described below, which has been determined by methods other that U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of the Corporation's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding the Corporation's financial results. Management believes that the Corporation's presentation and discussion, together with the accompanying reconciliation, provides a complete understanding of factors and trends affecting the Corporation's business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and the Corporation strongly encourages investors to review it consolidated financial statements in their entirety and not to rely on any single financial measure.
For the For the
Three Nine
Months Months
Ended Ended
September September
30, 2011 30, 2011
----------- -----------
Net Income:
As reported $ 5,332 $ 9,641
Less: Valuation allowance reversal 2,988 2,988
----------- -----------
Net income, excluding valuation allowance
reversal 2,344 6,653
=========== ===========
Net Income Available to Common Shareholders:
As reported $ 5,113 $ 8,633
Less: Valuation allowance reversal 2,988 2,988
----------- -----------
Net income, excluding valuation allowance
reversal 2,125 5,645
=========== ===========
Per Common Share Data:
Earnings per share (basic):
As reported $ 0.58 $ 0.98
Less: Valuation allowance reversal 0.34 0.34
----------- -----------
Earnings per share (basic), excluding valuation
allowance reversal 0.24 0.64
=========== ===========
Earnings per share (diluted):
As reported $ 0.58 $ 0.98
Less: Valuation allowance reversal 0.34 0.34
----------- -----------
Earnings per share (diluted), excluding valuation
allowance reversal 0.24 0.64
=========== ===========
Performance Ratios:
Return on average assets:
As reported 1.39% 0.85%
Return on average assets, excluding valuation
allowance reversal 0.61% 0.59%
Return on average common equity:
As reported 19.87% 11.50%
Return on average common equity, excluding
valuation allowance reversal 8.26% 7.52%
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
September 30, 2012 September 30, 2011
-------------------------- --------------------------
Average Income/ Average Income/
Balance Expense Yield Balance Expense Yield
----------- -------- ----- ----------- -------- -----
ASSETS:
Interest-Earning
Assets:
Investments:
Taxable (1) $ 284,440 $ 1,787 2.51% $ 350,946 $ 1,762 2.01%
Tax-exempt (1)
(2) 44,481 322 2.90 37,238 353 3.79
Loans held for sale 2,829 34 4.77 610 12 8.37
Loans (2) (3) 1,098,857 11,965 4.36 964,400 11,589 4.81
Federal funds sold 100 - 0.10 100 - 0.25
Interest-earning
deposits 53,560 27 0.20 77,295 43 0.22
----------- -------- ----- ----------- -------- -----
Total interest-
earning assets 1,484,267 $ 14,135 3.81% 1,430,589 $ 13,759 3.85%
----------- -------- ----- ----------- -------- -----
Noninterest-Earning
Assets:
Cash and due from
banks 5,611 8,458
Allowance for loan
losses (14,005) (14,592)
Premises and
equipment 30,820 32,876
Other assets 77,232 72,428
----------- -----------
Total
noninterest-
earning assets 99,658 99,170
----------- -----------
Total assets $ 1,583,925 $ 1,529,759
=========== ===========
LIABILITIES:
Interest-Bearing
Deposits:
Checking $ 334,982 $ 89 0.11% $ 321,368 $ 269 0.33%
Money markets 503,180 259 0.21 519,918 438 0.34
Savings 104,273 14 0.05 87,863 51 0.23
Certificates of
deposit 188,568 550 1.17 203,612 684 1.34
----------- -------- ----- ----------- -------- -----
Total interest-
bearing deposits 1,131,003 912 0.32 1,132,761 1,442 0.51
Borrowings 15,281 113 2.96 20,831 177 3.40
Capital lease
obligation 9,043 107 4.73 6,406 80 4.99
----------- -------- ----- ----------- -------- -----
Total interest-
bearing
liabilities 1,155,327 1,132 0.39 1,159,998 1,699 0.59
----------- -------- ----- ----------- -------- -----
Noninterest-Bearing
Liabilities:
Demand deposits 305,192 246,665
Accrued expenses
and other
liabilities 7,434 6,287
----------- -----------
Total noninterest-
bearing
liabilities 312,626 252,952
Shareholders' equity 115,972 116,809
----------- -----------
Total liabilities
and shareholders'
equity $1,583,925 $1,529,759
=========== ===========
Net interest income $ 13,003 $ 12,060
======== ========
Net interest spread 3.42% 3.26%
===== =====
Net interest margin
(4) 3.50% 3.37%
===== =====
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
September 30, 2012 June 30, 2012
------------------------- -------------------------
Average Income/ Average Income/
Balance Expense Yield Balance Expense Yield
---------- -------- ----- ---------- -------- -----
ASSETS:
Interest-Earning
Assets:
Investments:
Taxable (1) $ 284,440 $ 1,787 2.51% $ 312,362 $ 1,770 2.27%
Tax-exempt (1) (2) 44,481 322 2.90 45,556 332 2.92
Loans held for sale 2,829 34 4.77 1,137 18 6.57
Loans (2) (3) 1,098,857 11,965 4.36 1,101,095 12,124 4.40
Federal funds sold 100 - 0.10 100 - 0.10
Interest-earning
deposits 53,560 27 0.20 22,306 14 0.26
---------- -------- ----- ---------- -------- -----
Total interest-
earning assets 1,484,267 $ 14,135 3.81% 1,482,556 $ 14,258 3.85%
---------- -------- ----- ---------- -------- -----
Noninterest-Earning
Assets:
Cash and due from
banks 5,611 5,846
Allowance for loan
losses (14,005) (13,990)
Premises and
equipment 30,820 31,284
Other assets 77,232 76,469
---------- ----------
Total noninterest-
earning assets 99,658 99,609
---------- ----------
Total assets $1,583,925 $1,582,165
========== ==========
LIABILITIES:
Interest-Bearing
Deposits:
Checking $ 334,982 $ 89 0.11% $ 326,920 $ 90 0.11%
Money markets 503,180 259 0.21 505,532 257 0.20
Savings 104,273 14 0.05 99,958 13 0.05
Certificates of
deposit 188,568 550 1.17 192,261 563 1.17
---------- -------- ----- ---------- -------- -----
Total interest-
bearing deposits 1,131,003 912 0.32 1,124,671 923 0.33
Borrowings 15,281 113 2.96 36,586 168 1.84
Capital lease
obligation 9,043 107 4.73 9,093 108 4.75
---------- -------- ----- ---------- -------- -----
Total interest-
bearing liabilities 1,155,327 1,132 0.39 1,170,350 1,199 0.41
---------- -------- ----- ---------- -------- -----
Noninterest -Bearing
Liabilities:
Demand deposits 305,192 292,459
Accrued expenses and
other liabilities 7,434 6,438
---------- ----------
Total noninterest-
bearing liabilities 312,626 298,897
Shareholders' equity 115,972 112,918
---------- ----------
Total liabilities
and shareholders'
equity $1,583,925 $1,582,165
========== ==========
Net interest income $ 13,003 $ 13,059
======== ========
Net interest spread 3.42% 3.44%
===== =====
Net interest margin
(4) 3.50% 3.52%
===== =====
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
NINE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
September 30, 2012 September 30, 2011
------------------------- -------------------------
Average Income/ Average Income/
Balance Expense Yield Balance Expense Yield
---------- -------- ----- ---------- -------- -----
ASSETS:
Interest-Earning
Assets:
Investments:
Taxable (1) $ 315,589 $ 5,609 2.37% $ 369,960 $ 6,240 2.25%
Tax-exempt (1) (2) 46,619 1,036 2.96 36,566 1,053 3.84
Loans held for sale 1,859 75 5.37 617 33 7.22
Loans (2) (3) 1,084,357 36,005 4.43 956,651 35,011 4.88
Federal funds sold 100 - 0.10 100 - 0.26
Interest-earning
deposits 32,694 58 0.24 50,736 91 0.24
---------- -------- ----- ---------- -------- -----
Total interest-
earning assets 1,481,218 $ 42,783 3.85% 1,414,630 $ 42,428 4.00%
---------- -------- ----- ---------- -------- -----
Noninterest-Earning
Assets:
Cash and due from
banks 6,378 8,191
Allowance for loan
losses (13,916) (14,869)
Premises and
equipment 31,284 33,300
Other assets 77,323 71,970
---------- ----------
Total noninterest-
earning assets 101,069 98,592
---------- ----------
Total assets $1,582,287 $1,513,222
========== ==========
LIABILITIES:
Interest-Bearing
Deposits:
Checking $ 332,822 $ 292 0.12% $ 309,646 $ 865 0.37%
Money markets 508,337 820 0.22 519,700 1,638 0.42
Savings 99,671 56 0.07 85,415 159 0.25
Certificates of
deposit 191,596 1,709 1.19 210,498 2,172 1.38
---------- -------- ----- ---------- -------- -----
Total interest-
bearing deposits 1,132,426 2,877 0.34 1,125,259 4,834 0.57
Borrowings 29,649 453 2.04 23,890 578 3.23
Capital lease
obligation 9,094 324 4.75 6,384 239 4.99
----- -----
Total interest-
bearing liabilities 1,171,169 3,654 0.42 1,155,533 5,651 0.65
---------- -------- ----- ---------- -------- -----
Noninterest-Bearing
Liabilities:
Demand deposits 290,988 235,666
Accrued expenses and
other liabilities 6,592 6,552
---------- ----------
Total noninterest-
bearing liabilities 297,580 242,218
Shareholders' equity 113,538 115,471
---------- ----------
Total liabilities and
shareholders' equity$1,582,287 $1,513,222
========== ==========
Net interest income $ 39,129 $ 36,777
======== ========
Net interest spread 3.43% 3.35%
===== =====
Net interest margin
(4) 3.52% 3.46%
===== =====
(1) Average balances for available for sale securities are based on
amortized cost.
(2) Interest income is presented on a tax-equivalent basis using a 35
percent federal tax rate.
(3) Loans are stated net of unearned income and include nonaccrual loans.
(4) Net interest income on a tax-equivalent basis as a percentage of total
average interest-earning assets.
