Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the Corporation) recorded net income of $1.8 million and diluted earnings per share of $0.16, for the quarter ended June 30, 2010. This compared to diluted earnings per share of $0.17 for the quarter ended June 30, 2009 and diluted earnings per share of $0.16 for the quarter ended March 31, 2010.
When compared to the quarter ended June 30, 2009, the June 2010 quarter included increased net interest income and increased income from the PGB Trust and Investment business, the effects of which were offset by reduced gains from securities sales and an increased provision for loan losses.
Frank A. Kissel, Chairman and CEO, stated, “We are pleased to continue to report positive earnings and growth in capital during these challenging times. Our internal capital generation enabled us to redeem 25 percent of our preferred shares issued previously under the U.S. Treasury’s Capital Purchase Program (the “CPP”).this past January. Building capital internally to redeem the Treasury’s CPP investment over time, while remaining well capitalized, continues to be an important business objective of the Corporation.”
The Corporation’s provision for loan losses for the quarter ended June 30, 2010 was $2.7 million. While this was lower than the highest recent quarterly level (which was in the fourth quarter of 2009), it was higher than the $2.0 million provision in the second quarter of 2009. Mr. Kissel noted, “The level of the June 2010 quarterly provision was due principally to one commercial customer relationship with three construction loans being placed on non-accrual status. We continue to be extremely diligent and proactive in managing our loan portfolio and placed this entire relationship on non-accrual status and charged-off $2.4 million related to this relationship during the quarter, leaving a balance after charge-off of $6.7 million.”Mr. Kissel went on to say “We continue to be pleased with the progress we have made throughout 2009 and into 2010 in resolving certain problem assets.”