Peapack-Gladstone Financial Corporation ( NASDAQ Global Select Market:PGC) (the Corporation) recorded net income of $2.14 million and diluted earnings per share of $0.18 for the quarter ended March 31, 2011. This compared to net income and diluted earnings per share of $1.88 million and $0.18 for the immediately preceding quarter ended December 31, 2010, and $2.13 million and $0.16 for the quarter ended March 31, 2010.
Frank A. Kissel, Chairman and CEO, stated, “We are pleased to have shown growth in our net income this quarter. As I have noted many times in the past, building capital internally to redeem the Treasury’s Capital Purchase Program (“CPP”) investment over time continues to be an important business objective of the Corporation. In the March 2011 quarter, we were successful in redeeming an additional 25 percent of the CPP investment. Together with the January 2010 redemption, we have now redeemed $14.4 million or 50 percent of the Treasury’s original CPP investment.”
The Corporation’s provision for loan losses for the quarter ended March 31, 2011, was $2.0 million, slightly below the $2.4 million provision recorded in the March 2010 quarter, and also below the $2.9 million provision recorded in the December 2010 quarter. Mr. Kissel noted that progress continues in resolving problem assets. During the March 2011 quarter, $5.4 million of problem loans were paid off or sold. Further, a $1.0 million property in Other Real Estate Owned (OREO) was sold.
Net Interest Income and MarginNet interest income, on a fully tax-equivalent basis, was $12.4 million for the first quarter of 2011, down slightly from $12.7 million for the same quarter in 2010. On a fully tax-equivalent basis, the net interest margin was 3.54 percent for the March 2011 quarter compared to 3.67 percent for the March 2010 quarter, as the overall asset yield declined more than the decline in the cost of funds.