Peapack-Gladstone Financial Corporation ( NASDAQ Global Select Market:PGC) (the Corporation) recorded net income of $2.2 million and diluted earnings per share of $0.22 for the quarter ended June 30, 2011. This compared favorably to net income and diluted earnings per share of $2.1 million and $0.18 for the immediately preceding quarter ended March 31, 2011, and $1.8 million and $0.16 for the quarter ended June 30, 2010.
For the six months ended June 30, 2011 the Corporation recorded net income of $4.3 million and diluted earnings per share of $0.40. This compared favorably to net income of $3.9 million and diluted earnings per share of $0.32 for the same six month period last year.
Frank A. Kissel, Chairman and CEO, stated, “We are pleased to have shown growth in earnings this quarter and on a year-to-date basis. 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. As we reported previously, 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 June 30, 2011, was $2.0 million, flat compared to the $2.0 million provision recorded in the March 2011 quarter, and below the $2.8 million provision recorded in the June 2010 quarter which is consistent with the trend in problem loans.Mr. Kissel noted that progress continues in resolving problem assets. During the June 2011 quarter, $4.6 million of problem loans were paid off or sold. Further, a contract for the sale of a $3.0 million property included in Other Real Estate Owned (OREO) was executed. During the March 2011 quarter, $5.4 million of problem loans were paid off or sold and a $1.0 million property included in OREO was sold.