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TheStreet Open House

Peapack-Gladstone Financial Corporation Reports Second Quarter Results Of Operations

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.

PEAPACK-GLADSTONE FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in thousands)

(Unaudited)

 

 

As of

June 30,  

March 31,

 

December 31,

 

September 30,

  June 30,
2010 2010 2009 2009 2009
 
ASSETS
Cash and due from banks $ 10,735 $ 8,999 $ 7,864 $ 9,343 $ 50,921
Federal funds sold 201 201 201 200 200
Interest-earning deposits 59,356 33,915 71,907 46,876 513
Total cash and cash equivalents 70,292 43,115 79,972 56,419 51,634
 
Securities held to maturity 101,603 105,258 89,459 86,703 77,216
Securities available for sale 252,646 278,052 272,484 252,786 227,414
FHLB and FRB Stock, at cost 4,807 5,305 5,315 5,329 5,343
 
Residential mortgage 430,021 443,085 452,641 466,601 483,330
Commercial mortgage 280,513 281,323 279,595 279,336 275,915
Commercial loans 133,881 133,288 120,554 129,671 133,659
Construction loans 46,286 48,044 64,816 65,760 67,075
Consumer loans 23,811 24,936 25,638 26,571 27,302
Home equity lines of credit 41,956 39,487 38,728 38,450 35,357
Other loans 2,788 902 1,565 1,592 1,079
Total loans 959,256 971,065 983,537 1,007,981 1,023,717
Less: Allowance for loan losses 13,856 13,720 13,192 12,947 11,054
Net loans 945,400 957,345 970,345 995,034 1,012,663
 
Premises and equipment 34,626 27,942 27,911 28,011 27,189
Other real estate owned 210 40 360 680 700
Accrued interest receivable 4,533 5,112 4,444 5,359 4,652
Bank owned life insurance 26,672 26,473 26,292 26,087 25,865
Deferred tax assets, net 23,438 23,999 23,522 22,154 23,653
Other assets 13,036 10,670 12,249 9,117 2,550
TOTAL ASSETS $ 1,477,263 $ 1,483,311 $ 1,512,353 $ 1,487,679 $ 1,458,879
 
LIABILITIES
Deposits:

Noninterest bearing demand deposits

$ 216,314 $ 223,184 $ 216,127 $ 199,804 $ 194,888
Interest-bearing deposits
Checking 249,472 241,887 255,058 212,687 203,378
Savings 76,937 77,064 73,866 73,308 71,464
Money market accounts 503,829 502,548 458,303 470,123 418,208
CD’s $100,000 and over 101,034 109,347 147,138 159,942 187,516
CD’s less than $100,000 163,769 173,219 199,177 209,994 220,779
Total deposits 1,311,355 1,327,249 1,349,669 1,325,858 1,296,233
Borrowings 28,342 36,140 36,499 36,815 37,128
Capital lease obligation 6,148 - - - -
Other liabilities 15,435 5,998 6,676 5,862 9,844
TOTAL LIABILITIES 1,361,280 1,369,387 1,392,844 1,368,535 1,343,205
Shareholders’ Equity 115,983 113,924 119,509 119,144 115,674

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$ 1,477,263 $ 1,483,311 $ 1,512,353 $ 1,487,679 $ 1,458,879
 

Trust division assets under management (market value, not included above)

$ 1,830,944 $ 1,894,971 $ 1,856,229 $ 1,803,862 $ 1,702,782

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in thousands)

(Unaudited)

 

 

As of

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

2010 2010 2009 2009 2009
 
Asset Quality:

Loans past due over 90 days and still accruing

$ 736 $ 638 $ 496 $ 1,118 $ 104
Nonaccrual loans 20,361 12,200 11,256 13,082 12,998
Other real estate owned 210 40 360 680 700
Total nonperforming assets $ 21,307 $ 12,878 $ 12,112 $ 14,880 $ 13,802
 
 

Nonperforming loans to total loans

2.20% 1.32% 1.19% 1.41% 1.28%

Nonperforming assets to total assets

1.44% 0.87% 0.80% 1.00% 0.95%
 
Troubled debt restructured loans $ 10,613 $ 11,817 $ 11,123 $ 18,671 $ 7,766
 

Loans past due 30 through 89 days and still accruing

$ 9,444 $ 10,056 $ 6,015 $ 7,362 $ 5,524
 
Allowance for loan losses:
Beginning of period $ 13,720 $ 13,192 $ 12,947 $ 11,054 $ 9,762
Provision for loan losses 2,750 2,400 2,950 2,750 2,000
Charge-offs, net (2,614) (1,872) (2,705) (857) (708)
End of period $ 13,856 $ 13,720 $ 13,192 $ 12,947 $ 11,054
 
ALLL to nonperforming loans 65.68% 106.87% 112.25% 91.18% 84.37%
ALLL to total loans 1.44% 1.41% 1.34% 1.28% 1.08%
 
Capital Adequacy:
Tier I leverage

(5% minimum to be considered well capitalized)

7.85% 7.80% 7.93% 8.17% 8.25%

Tier I capital to risk-weighted assets

(6% minimum to be considered well capitalized)

12.28% 12.01% 12.45% 12.23% 12.30%

Tier I & II capital to risk-weighted assets

(10% minimum to be considered well capitalized)

13.53% 13.27% 13.71% 13.48% 13.44%
 

Common equity to Total assets

6.45% 6.29% 6.09% 6.17% 6.06%
 

Book value per Common share

$ 10.85 $ 10.70 $ 10.57 $ 10.54 $ 10.15

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except share data)

(Unaudited)

 

 

For The Three Months Ended

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

2010 2010 2009 2009 2009
Income Statement Data:
Interest income $ 15,450 $ 15,791 $ 16,123 $ 16,379 $ 16,709
Interest expense 2,963 3,243 4,000 4,129 4,543
Net interest income 12,487 12,548 12,123 12,250 12,166
Provision for loan losses 2,750 2,400 2,950 2,750 2,000

Net interest income after provision for loan losses

9,737 10,148 9,173 9,500 10,166
Trust fees 2,686 2,364 2,346 2,200 2,550
Other income 1,098 1,108 1,067 1,137 1,114
Securities gains, net 2 - (42) (2) 108
Salaries and employee benefits 5,704 5,709 5,291 5,622 5,430
Premises and equipment 2,588 2,372 2,358 2,185 2,171
FDIC insurance expense 552 586 834 724 1,378
Other expenses 2,161 1,863 2,124 2,409 2,216
Income before income taxes 2,518 3,090 1,937 1,895 2,743
Income tax expense 762 965 536 583 813
Net income 1,756 2,125 1,401 1,312 1,930

Dividends and accretion on preferred stock

324 710 430 430 428

Net income available to Common shareholders

$ 1,432 $ 1,415 $ 971 $ 882 $ 1,502
 
Per Common Share Data:
Earnings per share (basic) $ 0.16 $ 0.16 $ 0.11 $ 0.10 $ 0.17

Earnings per share (diluted)

0.16 0.16 0.11 0.10 0.17
 
Performance Ratios:
Return on Average Assets 0.47% 0.58% 0.37% 0.36% 0.54%
Return on Average Common
Equity 6.06% 6.10% 4.18% 3.89% 6.75%
 
Net Interest Margin
(Taxable Equivalent Basis) 3.64% 3.67% 3.44% 3.61% 3.71%
 

Note: Per share amounts have been restated for a 5% stock dividend declared on June 18, 2009, and payable on August 3, 2009 to shareholders of record on July 9, 2009.

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except share data)

(Unaudited)

  For The
Six Months Ended

 

June 30,
2010   2009
Income Statement Data:
Interest income $ 31,240 $ 33,504
Interest expense 6,206 9,530
Net interest income 25,034 23,974
Provision for loan losses 5,150 4,000

Net interest income after provision for loan losses

19,884 19,974
Trust fees 5,050 4,882
Other income 2,207 2,097
Securities gains, net 2 113
Salaries and employee benefits 11,413 10,964
Premises and equipment 4,960 4,260
FDIC insurance expense 1,138 1,750
Other expenses 4,024 3,745
Income before income taxes 5,608 6,347
Income tax expense 1,727 1,935
Net income 3,881 4,412

Dividends and accretion on preferred stock

1,034 633

Net income available to Common shareholders

$ 2,847 $ 3,779
 
Per Common Share Data:
Earnings per share (basic) $ 0.32 $ 0.43
Earnings per share (diluted) 0.32 0.43
 
Performance Ratios:
Return on Average Assets 0.52% 0.62%
Return on Average Common
Equity 6.09% 8.58%
 
Net Interest Margin
(Taxable Equivalent Basis) 3.66% 3.70%
 

Note: Per share amounts have been restated for a 5% stock dividend declared on June 18, 2009, and payable on August 3, 2009 to shareholders of record on July 9, 2009.

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

   

 

June 30, 2010

  June 30, 2009
Average   Income/   Average   Income/  
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1) $ 321,887 $ 2,404 2.99% $ 229,392 $ 2,287 3.99%
Tax-Exempt (1) (2) 35,111 420 4.78 49,031 618 5.05
Loans (2) (3) 964,070 12,774 5.30 1,032,665 14,046 5.44
Federal Funds Sold 201 - 0.22 200 - 0.20
Interest-Earning Deposits 69,245 28   0.16 27,574 9   0.13
Total Interest-Earning
Assets 1,390,514 $ 15,626   4.50% 1,338,862 $ 16,960   5.07%
Noninterest-Earning Assets:
Cash and Due from Banks 8,478 31,381

Allowance for Loan Losses

(14,075) (9,853)
Premises and Equipment 30,675 26,890
Other Assets 68,786 55,486
Total Noninterest-Earning
Assets 93,964 103,904
Total Assets $ 1,484,378 $ 1,442,766
 
LIABILITIES:
Interest-Bearing Deposits
Checking $ 254,018 $ 420 0.66% $ 193,245 $ 349 0.72%
Money Markets 510,589 1,019 0.80 414,082 1,127 1.09
Savings 76,092 79 0.42 70,802 81 0.46
Certificates of Deposit 274,240 1,103   1.61 406,518 2,638   2.60

Total Interest-Bearing Deposits

1,114,939 2,621 0.94 1,084,647 4,195 1.55
Borrowings 32,403 291 3.59 38,925 348 3.58
Capital Lease Obligation 2,019 51   10.09 - -   -

Total Interest-Bearing Liabilities

1,149,361 2,963   1.03 1,123,572 4,543   1.62

Noninterest Bearing Liabilities

Demand Deposits 214,198 197,565

Accrued Expenses and Other Liabilities

5,667 5,438

Total Noninterest-Bearing Liabilities

219,865 203,003
Shareholders’ Equity 115,152 116,191

Total Liabilities and Shareholders’ Equity

$ 1,484,378 $ 1,442,766
Net Interest Income $ 12,663 $ 12,417
Net Interest Spread 3.47% 3.45%
Net Interest Margin (4) 3.64% 3.71%

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

   

 

June 30, 2010

  March 31, 2010
Average   Income/   Average   Income/  
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1) $ 321,887 $ 2,404 2.99% $ 325,379 $ 2,511 3.09%
Tax-Exempt (1) (2) 35,111 420 4.78 37,800 450 4.76
Loans (2) (3) 964,070 12,774 5.30 978,470 12,994 5.31
Federal Funds Sold 201 - 0.22 201 - 0.20
Interest-Earning Deposits 69,245 28   0.16 44,591 24   0.21

Total Interest-Earning Assets

1,390,514 $ 15,626   4.50% 1,386,441 $ 15,979   4.61%
Noninterest-Earning Assets:
Cash and Due from Banks 8,478 8,334

Allowance for Loan Losses

(14,075) (13,773)
Premises and Equipment 30,675 27,992
Other Assets 68,786 68,845

Total Noninterest-Earning Assets

93,964 91,398
Total Assets $ 1,484,378 $ 1,477,839
 
LIABILITIES:
Interest-Bearing Deposits
Checking $ 254,018 $ 420 0.66% $ 238,285 $ 407 0.68%
Money Markets 510,589 1,019 0.80 494,670 1,118 0.90
Savings 76,092 79 0.42 75,186 77 0.41
Certificates of Deposit 274,240 1,103   1.61 305,654 1,317   1.72

Total Interest-Bearing Deposits

1,114,939 2,621 0.94 1,113,795 2,919 1.05
Borrowings 32,403 291 3.59 36,290 324 3.57
Capital Lease Obligation 2,019 51   10.09 - -   -

Total Interest-Bearing Liabilities

1,149,361 2,963   1.03 1,150,085 3,243   1.13

Noninterest Bearing Liabilities

Demand Deposits 214,198 208,044

Accrued Expenses and Other Liabilities

5,667 6,087

Total Noninterest-Bearing Liabilities

219,865 214,131
Shareholders’ Equity 115,152 113,623

Total Liabilities and Shareholders’ Equity

$ 1,484,378 $ 1,477,839
Net Interest Income $ 12,663 $ 12,736
Net Interest Spread 3.47% 3.48%
Net Interest Margin (4) 3.64% 3.67%

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

SIX MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

   

 

June 30, 2010

  June 30, 2009
Average   Income/   Average   Income/  
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1) $ 323,623 $ 4,914 3.04% $ 204,487 $ 4,426 4.33%
Tax-Exempt (1) (2) 36,448 869 4.77 49,501 1,272 5.14
Loans (2) (3) 971,231 25,768 5.31 1,040,246 28,304 5.44
Federal Funds Sold 201 - 0.21 200 - 0.20
Interest-Earning Deposits 56,986 52   0.18 27,813 18   0.13

Total Interest-Earning Assets

1,388,489 $ 31,603   4.55% 1,322,247 $ 34,020   5.15%
Noninterest-Earning Assets:
Cash and Due from Banks 8,406 25,571

Allowance for Loan Losses

(13,925) (9,733)
Premises and Equipment 29,341 26,872
Other Assets 68,817 54,945

Total Noninterest-Earning Assets

92,639 97,655
Total Assets $ 1,481,128 $ 1,419,902
 
LIABILITIES:
Interest-Bearing Deposits
Checking $ 246,195 $ 826 0.67% $ 180,712 $ 646 0.71%
Money Markets 502,673 2,138 0.85 397,898 2,298 1.16
Savings 75,642 156 0.41 69,452 159 0.46
Certificates of Deposit 289,860 2,420   1.67 416,708 5,728   2.75

Total Interest-Bearing Deposits

1,114,370 5,540 0.99 1,064,770 8,831 1.66
Borrowings 34,336 615 3.58 40,278 699 3.47
Capital Lease Obligation 1,015 51   10.03 - -   -

Total Interest-Bearing Liabilities

1,149,721 6,206   1.08 1,105,048 9,530   1.72

Noninterest Bearing Liabilities

Demand Deposits 211,138 194,880

Accrued Expenses and Other Liabilities

5,877 5,954

Total Noninterest-Bearing Liabilities

217,015 200,834
Shareholders’ Equity 114,392 114,020

Total Liabilities and Shareholders’ Equity

$ 1,481,128 $ 1,419,902
Net Interest Income $ 25,397 $ 24,490
Net Interest Spread 3.47% 3.43%
Net Interest Margin (4) 3.66% 3.70%
(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.




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