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Peapack-Gladstone Financial Corporation Reports First Quarter Results Of Operations

Stocks in this article: PGC

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
March 31,     December 31,     September 30,     June 30,     March 31,
2011 2010 2010 2010 2010
 
ASSETS
Cash and due from banks $ 7,348 $ 6,490 $ 9,935 $ 10,735 $ 8,999
Federal funds sold 100 100 100 201 201
Interest-earning deposits 42,234 56,097 84,566 59,356 33,915
Total cash and cash equivalents 49,682 62,687 94,601 70,292 43,115
 
Securities held to maturity 151,993 140,277 102,032 101,603 105,258
Securities available for sale 271,687 275,076 246,334 252,646 278,052
FHLB and FRB Stock, at cost 4,619 4,624 4,623 4,807 5,305
 
Loans held for sale, at fair value 1,168 - - - -
 
Residential mortgage 432,413 419,653 425,315 430,021 443,085
Commercial mortgage 300,659 288,183 280,486 280,513 281,323
Commercial loans 133,614 131,408 128,220 133,881 133,288
Construction loans 17,693 25,367 39,989 46,286 48,044
Consumer loans 19,278 20,622 22,410 23,811 24,936
Home equity lines of credit 45,512 45,775 45,345 41,956 39,487
Other loans 1,130 1,489 2,626 2,788 902
Total loans 950,299 932,497 944,391 959,256 971,065
Less: Allowance for loan losses 14,386 14,282 14,025 13,856 13,720
Net loans 935,913 918,215 930,366 945,400 957,345
 
Premises and equipment 33,386 33,820 33,901 34,626 27,942
Other real estate owned 3,000 4,000 1,000 210 40
Accrued interest receivable 4,587 4,231 4,594 4,533 5,112
Bank owned life insurance 27,301 27,074 26,877 26,672 26,473
Deferred tax assets, net 26,039 26,083 23,903 23,438 23,999
Other assets 11,343 9,338 12,030 13,036 10,670
TOTAL ASSETS $ 1,520,718 $ 1,505,425 $ 1,480,261 $ 1,477,263 $ 1,483,311
 
LIABILITIES
Deposits:
Noninterest bearing
demand deposits $ 235,977 $ 228,764 $ 219,700 $ 216,314 $ 223,184
Interest-bearing deposits
Checking 302,589 290,322 255,665 249,472 241,887
Savings 85,741 80,799 78,819 76,937 77,064
Money market accounts 526,355 524,449 525,264 503,829 502,548
CD’s $100,000 and over 73,966 79,311 85,703 101,034 109,347
CD’s less than $100,000 139,022 147,901 155,268 163,769 173,219
Total deposits 1,363,650 1,351,546 1,320,419 1,311,355 1,327,249
Borrowings 24,016 24,126 24,234 28,342 36,140
Capital lease obligation 6,383 6,304 6,226 6,148 -
Other liabilities 14,585 5,733 11,903 15,435 5,998
TOTAL LIABILITIES 1,408,634 1,387,709 1,362,782 1,361,280 1,369,387
Shareholders’ Equity 112,084 117,716 117,479 115,983 113,924
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY $ 1,520,718 $ 1,505,425 $ 1,480,261 $ 1,477,263 $ 1,483,311
 
Trust division assets under
administration (market value,
not included above) $ 1,997,214 $ 1,940,404 $ 1,929,565 $ 1,830,944 $ 1,894,971
 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in thousands)
(Unaudited)
As of
    March 31,     December 31,     September 30,     June 30,     March 31,
2011   2010   2010   2010   2010  
Asset Quality:
Loans past due over 90 days
and still accruing $ 323 $ 666 $ 442 $ 736 $ 638
Nonaccrual loans (A) 19,173 18,114 17,535 20,361 12,200
Other real estate owned 3,000   4,000   1,000   210   40  
Total nonperforming assets $ 22,496   $ 22,780   $ 18,977   $ 21,307   $ 12,878  
 
Nonperforming loans to
total loans 2.05 % 2.01 % 1.90 % 2.20 % 1.32 %
Nonperforming assets to
total assets 1.48 % 1.51 % 1.28 % 1.44 % 0.87 %
 
Troubled debt restructured loans (A) $ 5,639 $ 7,157 $ 10,639 $ 10,613 $ 11,817
 
Loans past due 30 through 89
days and still accruing $ 5,419 $ 5,475 $ 9,487 $ 9,444 $ 10,056
 
Substandard Loans (B) $ 51,186 $ 41,979 $ 36,521 $ 48,722 $ 49,256
 
Impaired Loans (B) $ 26,056 $ 28,397 $ 36,521 $ 48,722 $ 49,256
 
Allowance for loan losses:
Beginning of period $ 14,282 $ 14,025 $ 13,856 $ 13,720 $ 13,192
Provision for loan losses 2,000 2,850 2,000 2,750 2,400
Charge-offs, net (1,896 ) (2,593 ) (1,831 ) (2,614 ) (1,872 )
End of period $ 14,386   $ 14,282   $ 14,025   $ 13,856   $ 13,720  
 
ALLL to nonperforming loans 73.79 % 76.05 % 78.02 % 65.68 % 106.87 %
ALLL to total loans 1.51 % 1.53 % 1.49 % 1.44 % 1.41 %
 
Capital Adequacy:
Tier I leverage
(5% minimum to be considered
well capitalized) 7.59 % 7.96 % 8.00 % 7.85 % 7.80 %
Tier I capital to risk-weighted assets
(6% minimum to be considered
well capitalized) 12.25 % 12.91 % 12.62 % 12.28 % 12.01 %
Tier I & II capital to
risk-weighted assets
(10% minimum to be considered
well capitalized) 13.51 % 14.16 % 13.88 % 13.53 % 13.27 %
 
Common equity to
Total assets 6.46 % 6.44 % 6.54 % 6.45 % 6.29 %
 
Book value per
Common share $ 11.13 $ 11.03 $ 11.01 $ 10.85 $ 10.70
(A) Any troubled debt restructure loans that are on nonaccrual status are only reported in nonaccrual loans and not also in troubled debt restructure loans.
(B) At March 31, 2011, $26.1 million and at December 31, 2010 $28.4 million of the loans classified substandard were also considered impaired. In periods prior to December 31, 2010, all loans classified substandard were also considered impaired.
 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
For The Three Months Ended
    March 31,     December 31,     September 30,     June 30,     March 31,
2011 2010 2010 2010 2010
Income Statement Data:
Interest income $ 14,257 $ 14,707 $ 14,974 $ 15,450 $ 15,791
Interest expense 2,036 2,214 2,612 2,963 3,243
Net interest income 12,221 12,493 12,362 12,487 12,548
Provision for loan losses 2,000 2,850 2,000 2,750 2,400
Net interest income after
provision for loan losses 10,221 9,643 10,362 9,737 10,148
Trust fees 2,718 2,598 2,254 2,686 2,364
Other income 1,255 1,621 1,203 1,098 1,108
Securities gains/(losses), net 196 (4) 126 2 -
Other-than-temporary impairment
charge, equity securities - (581) (360) - -
Salaries and employee benefits 5,973 5,469 5,647 5,704 5,709
Premises and equipment 2,322 2,248 2,416 2,588 2,372
FDIC insurance expense 604 598 586 552 586
Other expenses 2,344 2,374 2,237 2,161 1,863
Income before income taxes 3,147 2,588 2,699 2,518 3,090
Income tax expense 1,006 711 793 762 965
Net income 2,141 1,877 1,906 1,756 2,125
Dividends and accretion
on preferred stock (A) 570 326 326 324 710
Net income available to          
Common shareholders $ 1,571 $ 1,551 $ 1,580 $ 1,432 $ 1,415
 
Per Common Share Data:
Earnings per share (basic) $ 0.18 $ 0.18 $ 0.18 $ 0.16 $ 0.16
Earnings per share (diluted) 0.18 0.18 0.18 0.16 0.16
 
 
Performance Ratios:
Return on Average Assets 0.57% 0.50% 0.52% 0.47% 0.58%
Return on Average Common
Equity 6.44% 6.34% 6.55% 6.06% 6.10%
 
Net Interest Margin
(Taxable Equivalent Basis) 3.54% 3.62% 3.64% 3.64% 3.67%
 
(A) The March 2011, $7.2 million partial redemption of the Treasury’s Capital Purchase Plan investment resulted in a non-cash charge related to the acceleration of preferred stock amortization of $244 thousand, or 3 cents per diluted share for the quarter ended March 31, 2011.
The January 2010, $7.2 million partial redemption of the Treasury’s Capital Purchase Plan investment resulted in a non-cash charge related to the acceleration of preferred stock amortization of $330 thousand, or 4 cents per diluted share for the quarter ended March 31, 2010.
 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
 
For The
Three Months Ended
March 31,
      2011     2010
Income Statement Data:
Interest income $ 14,257 $ 15,791
Interest expense 2,036 3,243
Net interest income 12,221 12,548
Provision for loan losses 2,000 2,400
Net interest income after
provision for loan losses 10,221 10,148
Trust fees 2,718 2,364
Other income 1,255 1,108
Securities gains, net 196 -
Salaries and employee benefits 5,973 5,709
Premises and equipment 2,322 2,372
FDIC insurance expense 604 586
Other expenses 2,344 1,863
Income before income taxes 3,147 3,090
Income tax expense 1,006 965
Net income 2,141 2,125
Dividends and accretion
on preferred stock (A) 570 710
Net income available to    
Common shareholders $ 1,571 $ 1,415
 
Per Common Share Data:
Earnings per share (basic) $ 0.18 $ 0.16
Earnings per share (diluted) 0.18 0.16
 
 
Performance Ratios:
Return on Average Assets 0.57% 0.58%
Return on Average Common
Equity 6.44% 6.10%
 
Net Interest Margin
(Taxable Equivalent Basis) 3.54% 3.67%
 
(A) The March 2011, $7.2 million partial redemption of the Treasury’s Capital Purchase Plan investment resulted in a non-cash charge related to the acceleration of preferred stock amortization of $244 thousand, or 3 cents per diluted share for the quarter ended March 31, 2011.
The January 2010, $7.2 million partial redemption of the Treasury’s Capital Purchase Plan investment resulted in a non-cash charge related to the acceleration of preferred stock amortization of $330 thousand, or 4 cents per diluted share for the quarter ended March 31, 2010.
 
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 
March 31, 2011 March 31, 2010
  Average   Income/     Average   Income/    
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1) $ 384,083 $ 2,269 2.36% $ 325,379 $ 2,511 3.09%
Tax-Exempt (1) (2) 35,587 345 3.88 37,800 450 4.76
Loans Held for Sale 733 16 8.65 N/A N/A N/A
Loans (2) (3) 937,073 11,747 5.01 978,470 12,994 5.31
Federal Funds Sold 100 - 0.28 201 - 0.20
Interest-Earning Deposits 41,927 28 0.27 44,591 24 0.21
Total Interest-Earning
Assets 1,399,503 $ 14,405 4.12% 1,386,441 $ 15,979 4.61%
Noninterest-Earning Assets:
Cash and Due from Banks 7,877 8,334
Allowance for Loan
Losses (14,934) (13,773)
Premises and Equipment 33,640 27,992
Other Assets 71,404 68,845
Total Noninterest-Earning
Assets 97,987 91,398
Total Assets $ 1,497,490 $ 1,477,839
 
LIABILITIES:
Interest-Bearing Deposits
Checking $ 298,003 $ 303 0.41% $ 238,285 $ 407 0.68%
Money Markets 522,473 623 0.48 494,670 1,118 0.90
Savings 82,168 53 0.26 75,186 77 0.41
Certificates of Deposit 219,359 775 1.41 305,654 1,317 1.72
Total Interest-Bearing
Deposits 1,122,003 1,754 0.63 1,113,795 2,919 1.05
Borrowings 24,639 203 3.30 36,290 324 3.57
Capital Lease Obligation 6,334 79 4.98 - - -
Total Interest-Bearing
Liabilities 1,152,976 2,036 0.71 1,150,085 3,243 1.13
Noninterest Bearing
Liabilities
Demand Deposits 222,415 208,044
Accrued Expenses and
Other Liabilities 6,065 6,087
Total Noninterest-Bearing
Liabilities 228,480 214,131
Shareholders’ Equity 116,034 113,623
Total Liabilities and
Shareholders’ Equity $ 1,497,490 $ 1,477,839
Net Interest Income $ 12,369 $ 12,736
Net Interest Spread 3.41% 3.48%
Net Interest Margin (4) 3.54% 3.67%
   
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 
March 31, 2011 December 31, 2010
    Average     Income/     Average     Income/    
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1) $ 384,083 $ 2,269 2.36% $ 356,763 $ 2,170 2.43%
Tax-Exempt (1) (2) 35,587 345 3.88 34,547 354 4.10
Loans Held for Sale 733 16 8.65 N/A N/A N/A
Loans (2) (3) 937,073 11,747 5.01 942,542 12,287 5.21
Federal Funds Sold 100 - 0.28 100 1 0.35
Interest-Earning Deposits 41,927 28 0.27 64,020 47 0.29
Total Interest-Earning
Assets 1,399,503 $ 14,405 4.12% 1,397,972 $ 14,859 4.25%
Noninterest-Earning Assets:
Cash and Due from Banks 7,877 9,138
Allowance for Loan
Losses (14,934) (14,245)
Premises and Equipment 33,640 33,952
Other Assets 71,404 70,506
Total Noninterest-Earning
Assets 97,987 99,351
Total Assets $ 1,497,490 $ 1,497,323
 
LIABILITIES:
Interest-Bearing Deposits
Checking $ 298,003 $ 303 0.41% $ 283,355 $ 352 0.50%
Money Markets 522,473 623 0.48 519,991 642 0.49
Savings 82,168 53 0.26 78,706 54 0.27
Certificates of Deposit 219,359 775 1.41 234,079 880 1.50
Total Interest-Bearing
Deposits 1,122,003 1,754 0.63 1,116,131 1,928 0.69
Borrowings 24,639 203 3.30 24,162 208 3.44
Capital Lease Obligation 6,334 79 4.98 6,255 78 4.98
Total Interest-Bearing
Liabilities 1,152,976 2,036 0.71 1,146,548 2,214 0.77
Noninterest Bearing
Liabilities
Demand Deposits 222,415 225,228
Accrued Expenses and
Other Liabilities 6,065 6,944
Total Noninterest-Bearing
Liabilities 228,480 232,172
Shareholders’ Equity 116,034 118,603
Total Liabilities and
Shareholders’ Equity $ 1,497,490 $ 1,497,323
Net Interest Income $ 12,369 $ 12,645
Net Interest Spread 3.41% 3.48%
Net Interest Margin (4) 3.54% 3.62%

(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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