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TheStreet Open House

Peapack-Gladstone Financial Corporation Reports Third 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

September 30, June 30, March 31, December 31, September 30,
2010 2010 2010 2009 2009
 
ASSETS
Cash and due from banks $ 9,935 $ 10,735 $ 8,999 $ 7,864 $ 9,343
Federal funds sold 100 201 201 201 200
Interest-earning deposits 84,566 59,356 33,915 71,907 46,876
Total cash and cash equivalents 94,601 70,292 43,115 79,972 56,419
 
Securities held to maturity 102,032 101,603 105,258 89,459 86,703
Securities available for sale 246,334 252,646 278,052 272,484 252,786
FHLB and FRB Stock, at cost 4,623 4,807 5,305 5,315 5,329
 
Residential mortgage 425,315 430,021 443,085 452,641 466,601
Commercial mortgage 280,486 280,513 281,323 279,595 279,336
Commercial loans 128,220 133,881 133,288 120,554 129,671
Construction loans 39,989 46,286 48,044 64,816 65,760
Consumer loans 22,410 23,811 24,936 25,638 26,571
Home equity lines of credit 45,345 41,956 39,487 38,728 38,450
Other loans 2,626 2,788 902 1,565 1,592
Total loans 944,391 959,256 971,065 983,537 1,007,981
Less: Allowance for loan losses 14,025 13,856 13,720 13,192 12,947
Net loans 930,366 945,400 957,345 970,345 995,034
 
Premises and equipment 33,901 34,626 27,942 27,911 28,011
Other real estate owned 1,000 210 40 360 680
Accrued interest receivable 4,594 4,533 5,112 4,444 5,359
Bank owned life insurance 26,877 26,672 26,473 26,292 26,087
Deferred tax assets, net 23,903 23,438 23,999 23,522 22,154
Other assets 12,030 13,036 10,670 12,249 9,117
TOTAL ASSETS $ 1,480,261 $ 1,477,263 $ 1,483,311 $ 1,512,353 $ 1,487,679
 
LIABILITIES
Deposits:

Noninterest bearing demand deposits

$ 219,700 $ 216,314 $ 223,184 $ 216,127 $ 199,804
Interest-bearing deposits
Checking 255,665 249,472 241,887 255,058 212,687
Savings 78,819 76,937 77,064 73,866 73,308
Money market accounts 525,264 503,829 502,548 458,303 470,123
CD’s $100,000 and over 85,703 101,034 109,347 147,138 159,942
CD’s less than $100,000 155,268 163,769 173,219 199,177 209,994
Total deposits 1,320,419 1,311,355 1,327,249 1,349,669 1,325,858
Borrowings 24,234 28,342 36,140 36,499 36,815
Capital lease obligation 6,226 6,148 - - -
Other liabilities 11,903 15,435 5,998 6,676 5,862
TOTAL LIABILITIES 1,362,782 1,361,280 1,369,387 1,392,844 1,368,535
Shareholders’ Equity 117,479 115,983 113,924 119,509 119,144

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$ 1,480,261 $ 1,477,263 $ 1,483,311 $ 1,512,353 $ 1,487,679
 

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

$ 1,929,565 $ 1,830,944 $ 1,894,971 $ 1,856,229 $ 1,803,862
 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in thousands)

(Unaudited)

                 

 

As of

September 30, June 30, March 31, December 31, September 30,
2010 2010 2010 2009 2009
 
Asset Quality:
Loans past due over 90 days
and still accruing $ 442 $ 736 $ 638 $ 496 $ 1,118
Nonaccrual loans 17,535 20,361 12,200 11,256 13,082
Other real estate owned 1,000   210   40   360   680  
Total nonperforming assets $ 18,977   $ 21,307   $ 12,878   $ 12,112   $ 14,880  
 
 
Nonperforming loans to
total loans 1.90 % 2.20 % 1.32 % 1.19 % 1.41 %
Nonperforming assets to
total assets 1.28 % 1.44 % 0.87 % 0.80 % 1.00 %
 
Troubled debt restructured loans $ 10,639 $ 10,613 $ 11,817 $ 11,123 $ 18,671
 
Loans past due 30 through 89
days and still accruing

$

9,487 $ 9,444 $ 10,056 $ 6,015 $ 7,362
 
Allowance for loan losses:
Beginning of period $ 13,856 $ 13,720 $ 13,192 $ 12,947 $ 11,054
Provision for loan losses 2,000 2,750 2,400 2,950 2,750
Charge-offs, net (1,831 ) (2,614 ) (1,872 ) (2,705 ) (857 )
End of period $ 14,025   $ 13,856   $ 13,720   $ 13,192   $ 12,947  
 
ALLL to nonperforming loans 78.02 % 65.68 % 106.87 % 112.25 % 91.18 %
ALLL to total loans 1.49 % 1.44 % 1.41 % 1.34 % 1.28 %
 
 
Capital Adequacy:
Tier I leverage
(5% minimum to be
considered well
capitalized) 8.00 % 7.85 % 7.80 % 7.93 % 8.17 %
Tier I capital to risk-
weighted assets
(6% minimum to be
considered well
capitalized) 12.62 % 12.28 % 12.01 % 12.45 % 12.23 %
Tier I & II capital to
risk-weighted assets
(10% minimum to be
considered well
capitalized) 13.88 % 13.53 % 13.27 % 13.71 % 13.48 %
 
Common equity to
Total assets 6.54 % 6.45 % 6.29 % 6.09 % 6.17 %
 
Book value per
Common share $ 11.01 $ 10.85 $ 10.70 $ 10.57 $ 10.54
 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except share data)

(Unaudited)

                 

 

For The Three Months Ended

September 30, June 30, March 31, December 31, September 30,
2010 2010 2010 2009 2009
Income Statement Data:
Interest income $ 14,974 $ 15,450 $ 15,791 $ 16,123 $ 16,379
Interest expense 2,612   2,963   3,243   4,000   4,129  
Net interest income 12,362 12,487 12,548 12,123 12,250
Provision for loan losses 2,000   2,750   2,400   2,950   2,750  
Net interest income after
provision for loan losses 10,362 9,737 10,148 9,173 9,500
Trust fees 2,254 2,686 2,364 2,346 2,200
Other income 1,203 1,098 1,108 1,067 1,137
Securities gains/(losses), net 126 2 - (42 ) (2 )
Other-than-temporary impairment
charge, equity securities (360 ) - - - -
Salaries and employee benefits 5,647 5,704 5,709 5,291 5,622
Premises and equipment 2,416 2,588 2,372 2,358 2,185
FDIC insurance expense 586 552 586 834 724
Other expenses 2,237   2,161   1,863   2,124   2,409  
Income before income taxes 2,699 2,518 3,090 1,937 1,895
Income tax expense 793   762   965   536   583  
Net income 1,906 1,756 2,125 1,401 1,312
Dividends and accretion
on preferred stock 326   324   710   430   430  
Net income available to
Common shareholders $ 1,580   $ 1,432   $ 1,415   $ 971   $ 882  
 
Per Common Share Data:
Earnings per share (basic) $ 0.18 $ 0.16 $ 0.16 $ 0.11 $ 0.10
Earnings per share (diluted) 0.18 0.16 0.16 0.11 0.10
 
 
Performance Ratios:
Return on Average Assets 0.52 % 0.47 % 0.58 % 0.37 % 0.36 %
Return on Average Common
Equity 6.55 % 6.06 % 6.10 % 4.18 % 3.89 %
 
Net Interest Margin
(Taxable Equivalent Basis) 3.64 % 3.64 % 3.67 % 3.44 % 3.61 %
 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except share data)

(Unaudited)

                                 

 

 

 

For The

Nine Months Ended

September 30,

2010

              2009  
Income Statement Data:
Interest income $ 46,215 $ 49,883
Interest expense 8,818   13,659  
Net interest income 37,397 36,224
Provision for loan losses 7,150   6,750  
Net interest income after
provision for loan losses 30,247 29,474
Trust fees 7,303 7,082
Other income 3,410 3,234
Securities gains, net 128 111
Other-than-temporary impairment
charge, equity securities (360 ) -
Salaries and employee benefits 17,060 16,585
Premises and equipment 7,376 6,445
FDIC insurance expense 1,724 2,475
Other expenses 6,261   6,153  
Income before income taxes 8,307 8,243
Income tax expense 2,520   2,519  
Net income 5,787 5,724
Dividends and accretion
on preferred stock 1,360   1,063  
Net income available to
Common shareholders $ 4,427   $ 4,661  
 
Per Common Share Data:
Earnings per share (basic) $ 0.50 $ 0.53
Earnings per share (diluted) 0.50 0.53
 
 
Performance Ratios:
Return on Average Assets 0.52 % 0.53 %
Return on Average Common
Equity 6.24 % 6.98 %
 
Net Interest Margin
(Taxable Equivalent Basis) 3.65 % 3.64 %

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

           

 

September 30, 2010

 

 

September 30, 2009

Average Income/ Average Income/

Balance

Expense

Yield

Balance

Expense

Yield

ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1) $ 314,213 $ 2,230 2.84 % $ 275,325 $ 2,462 3.58 %
Tax-Exempt (1) (2) 32,545 384 4.72 51,853 626 4.84
Loans (2) (3) 949,301 12,473 5.26 1,009,348 13,521 5.36
Federal Funds Sold 193 - 0.22 201 - 0.20
Interest-Earning Deposits 78,501   50   0.26   49,639   25   0.20  
Total Interest-Earning
Assets 1,374,753   $ 15,137   4.40 % 1,386,366   $ 16,634   4.80 %
Noninterest-Earning Assets:
Cash and Due from Banks 8,314 8,301
Allowance for Loan
Losses (14,180 ) (11,140 )
Premises and Equipment 34,589 27,705
Other Assets 70,056   58,157  
Total Noninterest-Earning
Assets 98,779   83,023  
Total Assets $ 1,473,532   $ 1,469,389  
 
LIABILITIES:
Interest-Bearing Deposits
Checking $ 259,816 $ 409 0.63 % $ 216,646 $ 405 0.75 %
Money Markets 515,734 839 0.65 445,839 1,108 0.99
Savings 78,058 78 0.40 72,126 85 0.47
Certificates of Deposit 251,511   986   1.57   374,548   2,195   2.34  
Total Interest-Bearing
Deposits 1,105,119 2,312 0.84 1,109,159 3,793 1.37
Borrowings 25,532 223 3.51 36,923 336 3.64
Capital Lease Obligation 6,177   77   4.98   -   -   -  
Total Interest-Bearing
Liabilities 1,136,828   2,612   0.92   1,146,082   4,129   1.44  
Noninterest Bearing
Liabilities
Demand Deposits 211,390 198,800
Accrued Expenses and
Other Liabilities 8,216   6,579  
Total Noninterest-Bearing
Liabilities 219,606 205,379
Shareholders’ Equity 117,098   117,928  
Total Liabilities and
Shareholders’ Equity $ 1,473,532   $ 1,469,389  
Net Interest Income $ 12,525 $ 12,505
Net Interest Spread 3.48 % 3.36 %
Net Interest Margin (4) 3.64 % 3.61 %
 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

           

 

 

September 30, 2010

 

 

June 30, 2010

Average Income/ Average Income/

Balance

Expense

Yield

Balance

Expense

Yield

ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1) $ 314,213 $ 2,230 2.84 % $ 321,887 $ 2,404 2.99 %
Tax-Exempt (1) (2) 32,545 384 4.72 35,111 420 4.78
Loans (2) (3) 949,301 12,473 5.26 964,070 12,774 5.30
Federal Funds Sold 193 - 0.22 201 - 0.22
Interest-Earning Deposits 78,501   50   0.26   69,245   28   0.16  
Total Interest-Earning
Assets 1,374,753   $ 15,137   4.40 % 1,390,514   $ 15,626   4.50 %
Noninterest-Earning Assets:
Cash and Due from Banks 8,314 8,478
Allowance for Loan
Losses (14,180 ) (14,075 )
Premises and Equipment 34,589 30,675
Other Assets 70,056   68,786  
Total Noninterest-Earning
Assets 98,779   93,964  
Total Assets $ 1,473,532   $ 1,484,378  
 
LIABILITIES:
Interest-Bearing Deposits
Checking $ 259,816 $ 409 0.63 % $ 254,018 $ 420 0.66 %
Money Markets 515,734 839 0.65 510,589 1,019 0.80
Savings 78,058 78 0.40 76,092 79 0.42
Certificates of Deposit 251,511   986   1.57   274,240   1,103   1.61  
Total Interest-Bearing
Deposits 1,105,119 2,312 0.84 1,114,939 2,621 0.94
Borrowings 25,532 223 3.51 32,403 291 3.59
Capital Lease Obligation 6,177   77   4.98   2,019   51   10.09  
Total Interest-Bearing
Liabilities 1,136,828   2,612   0.92   1,149,361   2,963   1.03  
Noninterest Bearing
Liabilities
Demand Deposits 211,390 214,198
Accrued Expenses and
Other Liabilities 8,216   5,667  
Total Noninterest-Bearing
Liabilities 219,606 219,865
Shareholders’ Equity 117,098   115,152  
Total Liabilities and
Shareholders’ Equity $ 1,473,532   $ 1,484,378  
Net Interest Income $ 12,525 $ 12,663
Net Interest Spread 3.48 % 3.47 %
Net Interest Margin (4) 3.64 % 3.64 %
 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

NINE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

           

 

 

September 30, 2010

 

 

September 30, 2009

Average Income/ Average Income/

Balance

Expense

Yield

Balance

Expense

Yield

ASSETS:
Interest-Earning Assets:

 

Investments:
Taxable (1) $ 320,452 $ 7,145 2.97 % $ 228,359 $ 6,887 4.02 %
Tax-Exempt (1) (2) 35,133 1,253 4.76 50,293 1,898 5.03
Loans (2) (3) 963,840 38,242 5.29 1,029,833 41,825 5.42
Federal Funds Sold 198 - 0.21 200 - 0.20
Interest-Earning Deposits 64,237   102   0.21   47,479   43   0.12  
Total Interest-Earning
Assets 1,383,860   $ 46,742   4.50 % 1,356,164   $ 50,653   4.98 %
Noninterest-Earning Assets:
Cash and Due from Banks 8,375 7,441
Allowance for Loan
Losses (14,011 ) (10,207 )
Premises and Equipment 31,110 27,153
Other Assets 69,234   56,173  
Total Noninterest-Earning
Assets 94,708   80,560  
Total Assets $ 1,478,568   $ 1,436,724  
 
LIABILITIES:
Interest-Bearing Deposits
Checking $ 250,785 $ 1,234 0.66 % $ 192,822 $ 1,050 0.73 %
Money Markets 507,075 2,977 0.78 414,054 3,407 1.10
Savings 76,456 235 0.41 70,353 244 0.46
Certificates of Deposit 276,937   3,406   1.64   402,500   7,923   2.62  
Total Interest-Bearing
Deposits 1,111,253 7,852 0.94 1,079,729 12,624 1.56
Borrowings 31,369 838 3.56 39,147 1,035 3.52
Capital Lease Obligation 2,754   128   6.18   -   -      
Total Interest-Bearing
Liabilities 1,145,376   8,818   1.03   1,118,876   13,659   1.63  
Noninterest Bearing
Liabilities
Demand Deposits 211,223 196,201
Accrued Expenses and
Other Liabilities 6,665   6,310  
Total Noninterest-Bearing
Liabilities 217,888 202,511
Shareholders’ Equity 115,304   115,337  
Total Liabilities and
Shareholders’ Equity $ 1,478,568   $ 1,436,724  
Net Interest Income $ 37,924 $ 36,994
Net Interest Spread 3.47 % 3.35 %
Net Interest Margin (4) 3.65 % 3.64 %
(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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