Peapack-Gladstone Financial Corporation ( NASDAQ Global Select Market:PGC) (the Corporation) recorded net income of $1.9 million and diluted earnings per share of $0.18, for the quarter ended September 30, 2010. This compared to diluted earnings per share of $0.10 for the quarter ended September 30, 2009 and diluted earnings per share of $0.16 for the quarter ended June 30, 2010.

When compared to the quarter ended September 30, 2009, the September 2010 quarter included increased net interest income, increased income from the PGB Trust and Investment business, increased other income, increased net gains on sales of securities, and a reduced provision for loan losses, the effects of which were partially offset by a write-down of the Corporation’s investment in various equity securities.

Frank A. Kissel, Chairman and CEO, stated, “We are pleased to have shown earnings growth this quarter, which contributed to continued growth in capital. Building capital internally to redeem the Treasury’s Capital Purchase Program investment over time, while remaining well capitalized, continues to be an important business objective of the Corporation.”

The Corporation’s provision for loan losses for the quarter ended September 30, 2010 was $2.0 million, reflecting a lower level than each of the past 4 quarters. Mr. Kissel noted “Reduced charge-off levels, as well as reduced non-performing loan levels in the current quarter, contributed to the reduced provision.” Mr. Kissel went on to say “We continue to be pleased with the progress we have made in resolving certain problem assets. This progress led to the decrease in non-performing loans from June 30, 2010 to September 30, 2010.”

Net Interest Income and Margin

Net interest income, on a fully tax-equivalent basis, was $12.5 million for both the third quarters of 2010 and 2009.

On a fully tax-equivalent basis, the net interest margin was 3.64 percent for the September 2010 quarter compared to 3.61 percent for the September 2009 quarter. In comparing the September 2010 quarter to the same quarter last year the growth of lower cost core deposits and the intentional run-off of higher cost certificates of deposit contributed to the improved margin. This effect was partially offset by the effect of growth in lower yielding, but less risky cash deposits and investment securities coupled with declining loan balances.

Mr. Kissel stated, “As evidenced by our relatively short duration investment portfolio, we believe we are well positioned for the future when we expect loan demand will increase and interest rates will rise.”

Loans

Average loans totaled $949.3 million for the third quarter of 2010 as compared to $1.01 billion for the same 2009 quarter, reflecting a decrease of $60.0 million or 5.9 percent.

The average residential mortgage loan portfolio declined $44.5 million or 9.4 percent to $428.4 million in the third quarter of 2010 from the same quarter of 2009. The Corporation sells the majority of its longer-term, fixed-rate loan production as a source of non-interest income and as part of its interest rate risk management strategy in the lower rate environment, and loan pay-downs have outpaced the originations retained in portfolio.

The average commercial loan portfolio declined $19.1 million or 4.0 percent from the third quarter of 2009 to $454.3 million for the same quarter in 2010. Mr. Kissel commented: “Loan demand from quality borrowers on the commercial front has been generally scarce through the first nine months of 2010. However, over the last couple of months we have seen commercial loan demand from quality borrowers pick up somewhat. The commercial loan pipeline stands at $31 million at September 30, 2010.”

The average home equity line portfolio rose $6.0 million or 16.7 percent to $42.2 million for the third quarter of 2010 compared to the same quarter in 2009. The Corporation focused on the origination of these adjustable-rate loans and loan originations outpaced principal paydowns over the year.

Mr. Kissel continued, “We have the capital and liquidity to lend to well-qualified individuals and businesses. However, we do remain committed to our conservative underwriting standards that have served us well.”

Deposits

Average total deposits (interest-bearing and noninterest-bearing) grew $8.6 million from $1.31 billion in the third quarter of 2009 to $1.32 billion in the third quarter of 2010, despite a significant reduction in certificate of deposit balances. Average certificates of deposit declined from $374.5 million in the September 2009 quarter to $251.5 million in the September 2010 quarter, a decline of $123.0 million or 32.8 percent. The Corporation allowed higher cost certificates of deposit to run-off and replaced those funds with lower cost, more stable core deposits.

Average noninterest-bearing checking balances grew $12.6 million or 6.3 percent to $211.4 million in the third quarter of 2010 from the third quarter of 2009. Average interest-bearing checking balances totaled $259.8 million in the third quarter of 2010, rising $43.2 million or 19.9 percent from the same quarter in 2009. Checking growth is attributable to the Corporation’s focus on core deposit growth, particularly checking, coupled with growth in the Ultimate Checking product, which provides customers with a low-cost checking product and a higher yield for larger balances.

Average money market accounts also rose, from $445.8 million in the third quarter of 2009 to $515.7 million for the same quarter of 2010, an increase of $69.9 million or 15.7 percent. The Corporation’s reduction in certificate of deposit balances and its focus on core deposit growth, as well as certain customers tending to “park” funds in money market accounts in lower interest rate environments, accounted for this growth.

Mr. Kissel commented, “Our core deposit growth and reduced reliance on certificates of deposit has benefited our cost of funds, as well as our franchise value.”

PGB Trust and Investments

PGB Trust and Investments generated $2.3 million in fee income in the third quarter of 2010, compared to $2.2 million in the third quarter of 2009. The market value of the assets under administration of the Trust Division increased from $1.80 billion at September 30, 2009 to $1.93 billion at September 30, 2010.

Craig C. Spengeman, President of PGB Trust & Investments commented, “We continue to see increases in our managed asset business and related recurring fee income. Further, we are pleased with the recovery and performance of our assets under administration, particularly in the latter part of this quarter. The financial markets continue to experience extreme volatility as we continue to manage through a most challenging period. Our performance reflects the sound financial management of our trust and investment professionals. Further, we continue to add new clients, as individuals continue to seek our professional advice.”

Other Income

Other income totaled $1.2 million in the September 2010 quarter compared to $1.1 million in the September 2009 quarter. Fee income earned on the sale of mortgage loans at origination increased, as there were greater mortgage originations in the September 2010 quarter and at a greater targeted premiums than in the September 2009 quarter.

Net gains on sales of securities totaled $126 thousand for the quarter ended September 30, 2010. The 2009 quarter reflected a net loss of $2 thousand.

The September 2010 quarter included a $360 thousand write-down of the Corporation’s investment in equity securities. Mr. Kissel noted “Our equity portfolio consists of high quality common stocks with a book value before write-down of $1.5 million. Unfortunately, the market value of these stocks has been depressed due to the recession. Although our quarterly review of each of the companies continues to indicate no major financial issues, since the market value of the stocks has been below our book value for an extended period, and we do not forecast a recovery of value in the foreseeable future, we have decided to write the securities down to fair value as of September 30, 2010.”

Operating Expenses

The Corporation’s total operating expenses were $10.9 million in both the September 2010 quarter and the September 2009 quarter. The 2010 quarter included decreased FDIC insurance expense and decreased professional fees offset by increased expenses associated with a new branch office opened in September 2009 and a new corporate headquarters occupied in June 2010.

ASSET QUALITY

At September 30, 2010, nonperforming assets decreased to $19.0 million or 1.28 percent of total assets as compared to $21.3 million or 1.44 percent of total assets at June 30, 2010. As noted earlier, the progress made in resolving certain problem assets has led to a decline in non-performing assets from June 30, 2010 to September 30, 2010.

The allowance for loan losses was $14.0 million or 1.49 percent of total loans at September 30, 2010 as compared to $13.2 million or 1.34 percent of total loans at December 31, 2009.

CAPITAL

At September 30, 2010, the Corporation’s leverage ratio, tier 1 and total risk based capital ratios were 8.00 percent, 12.62 percent and 13.88 percent, respectively. All ratios reflect the $7.2 million reduction in regulatory capital due to the partial redemption in January 2010 of the preferred shares previously issued under the Treasury’s Capital Purchase Program. All are above the levels necessary to be considered well capitalized under applicable regulatory guidelines. Additionally, the Corporation’s common equity ratio (common equity to total assets) at September 30, 2010 is 6.54 percent compared to 6.09 percent at December 31, 2009.

As previously announced, on October 21, 2010 the Board of Directors declared a regular cash dividend of $0.05 per share payable on November 19, 2010 to shareholders of record on November 4, 2010.

ABOUT THE CORPORATION

Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.48 billion as of September 30, 2010. Peapack-Gladstone Bank, its wholly owned community bank, was established in 1921, and has 23 branches in Somerset, Hunterdon, Morris, Middlesex and Union Counties. The Bank’s Trust Division, PGB Trust and Investments, operates at the Bank’s new corporate offices located at 500 Hills Drive in Bedminster and at four other locations in Clinton, Morristown and Summit, New Jersey and Bethlehem, Pennsylvania. To learn more about Peapack-Gladstone Financial Corporation and its services please visit our web site at www.pgbank.com or call 908-234-0700.

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, investments, relationships, opportunities and market conditions. These statements may be identified by such forward-looking terminology as “expect”, “look”, “believe”, “anticipate”, “may”, or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to
  • a continued or unexpected decline in the economy, in particular in our New Jersey market area;
  • declines in value in our investment portfolio;
  • higher than expected increases in our allowance for loan losses;
  • higher than expected increases in loan losses or in the level of nonperforming loans;
  • unexpected changes in interest rates;
  • inability to successfully grow our business;
  • inability to manage our growth;
  • a continued or unexpected decline in real estate values within our market areas;
  • legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulations) subject us to additional regulatory oversight which may result in increased compliance costs;
  • higher than expected FDIC insurance premiums;
  • lack of liquidity to fund our various cash obligations;
  • repurchase of our preferred shares issued under the Treasury’s Capital Purchase Program which will impact net income available to our common shareholders and our earnings per share;
  • reduction in our lower-cost funding sources;
  • our inability to adapt to technological changes;
  • claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters; and
  • other unexpected material adverse changes in our operations or earnings.

A discussion of these and other factors that could affect our results is included in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2009 and our subsequent Quarterly Reports on Form 10-Q. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Corporation’s expectations.

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.

Copyright Business Wire 2010

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