Peapack-Gladstone Financial Corporation Reports Fourth Quarter Results Of Operations

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 December 31, 2010. This compared to diluted earnings per share of $0.18 for the quarter ended September 30, 2010, and diluted earnings per share of $0.11 for the quarter ended December 31, 2009.

For the year ended December 31, 2010, the Corporation recorded net income of $7.7 million and diluted earnings per share of $0.68, reflecting an increase when compared to $7.1 million and $0.64 for the 2009 year.

When compared to the quarter ended December 31, 2009, the December 2010 quarter included increased net interest income, increased income from the PGB Trust and Investment business and increased other income.

Frank A. Kissel, Chairman and CEO, stated, “We are pleased to have shown earnings growth for this quarter and for the year. As I have noted in the past, building capital internally to redeem the Treasury’s Capital Purchase Program investment over time continues to be an important business objective of the Corporation.”

The Corporation’s provision for loan losses for the quarter ended December 31, 2010, was $2.9 million, just slightly below the $3.0 million provision recorded in the December 2009 quarter, but above the $2.0 million provision recorded in the September 2010 quarter. Mr. Kissel noted that progress continues in resolving problem assets. During the fourth quarter of 2010, $2.5 million of problem loans were paid off. During January 2011 an additional $2.4 million of problem loans were paid off. Further, there are two properties totaling $4.0 million in other real estate owned and both are under contract for sale.

Net Interest Income and Margin

Net interest income, on a fully tax-equivalent basis, was $12.6 million for the fourth quarter of 2010, up from $12.4 million for the same quarter in 2009.

On a fully tax-equivalent basis, the net interest margin was 3.62 percent for the December 2010 quarter compared to 3.44 percent for the December 2009 quarter. In comparing the December 2010 quarter to the same quarter last year, the growth of lower cost core deposits, the allowed run-off of higher cost certificates of deposit and the maturity of higher cost FHLB advances all contributed to the improved margin. This effect was partially offset by the effect of growth in lower yielding investment securities coupled with declining loan balances.

Mr. Kissel stated, “Given our shorter duration investment portfolio, we believe our balance sheet is positioned well for the future, when we expect loan demand will increase and interest rates will rise.”

Loans

Average loans totaled $942.5 million for the fourth quarter of 2010 as compared to $996.6 million for the same 2009 quarter, reflecting a decrease of $54.1 million or 5.4 percent.

The average residential mortgage loan portfolio declined $32.8 million or 7.1 percent to $428.4 million in the fourth quarter of 2010 from the same quarter of 2009 and is attributable to loan paydowns that have outpaced the originations retained in portfolio. The Corporation sells the majority of its longer-term, fixed-rate loan production as a source of noninterest income and as part of its interest rate risk management strategy in the lower rate environment. Total mortgage loan originations were $57.5 million for the fourth quarter of 2010, of which $29.7 million were sold, as compared to $34.8 for the fourth quarter of 2009, of which $16.1 million were sold. Total mortgage loan originations reflect an increase of $22.7 million or 65.3 percent, in comparing the 2010 quarter to the 2009 quarter.

The average commercial mortgage and commercial loan portfolio increased $5.9 million or 1.5 percent from the fourth quarter of 2009 to $409.2 million for the same quarter in 2010. The average commercial construction loan portfolio declined $29.8 million or 44.8 percent from the fourth quarter of 2009 to the fourth quarter of 2010, as the Bank has significantly decreased its exposure to construction lending. Mr. Kissel commented, “Loan demand from quality borrowers on the commercial front was generally scarce through the first nine months of 2010. However, over the last few months we have seen commercial loan demand from quality borrowers increase. The commercial loan pipeline stands at $42.0 million at December 31, 2010.”

The average home equity line portfolio rose $7.1 million or 18.3 percent to $45.8 million for the fourth 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 liquidity and capital to lend to qualified individuals and businesses; however, in doing so, we will remain committed to our conservative underwriting standards.”

Deposits

Average total deposits (interest-bearing and noninterest-bearing) decreased $18.9 million, or 1.4 percent, from $1.36 billion in the fourth quarter of 2009 to $1.34 billion in the fourth quarter of 2010. Average certificates of deposit declined from $382.0 million in the December 2009 quarter to $234.1 million in the December 2010 quarter, a decline of $147.9 million or 38.7 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 $15.8 million or 7.5 percent to $225.2 million in the fourth quarter of 2010 from the fourth quarter of 2009. Average interest-bearing checking balances totaled $283.4 million in the fourth quarter of 2010, rising $56.5 million or 24.9 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 $469.6 million in the fourth quarter of 2009 to $520.0 million for the same quarter of 2010, an increase of $50.4 million or 10.7 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 reduced reliance on higher cost certificates of deposit, coupled with our growth in core deposits has reduced our cost of funds, and enhanced our franchise value.”

PGB Trust and Investments

PGB Trust and Investments generated $2.6 million in fee income in the fourth quarter of 2010, compared to $2.3 million in the same quarter of 2009. The market value of the assets under administration of the Trust Division increased from $1.86 billion at December 31, 2009 to $1.94 billion at December 31, 2010.

Craig C. Spengeman, President of PGB Trust & Investments commented, “We are pleased with the recovery and performance of our assets under administration. We continue to see increases in our managed asset business and related recurring fee income. We also continue to add new clients, as individuals continue to seek our professional advice. Our performance reflects the sound financial management of our trust and investment professionals.”

Other Income

Other income totaled $1.6 million in the December 2010 quarter compared to $1.1 million in the December 2009 quarter. Fee income earned on the sale of mortgage loans at origination increased, as there were greater mortgage originations in the December 2010 quarter and mortgages were sold at greater targeted premiums than in the December 2009 quarter.

During the fourth quarter of 2010, the Corporation recorded $396 thousand (net of tax) of impairment charges related to several of its pooled trust preferred securities. This writedown was due to a decline in the expected future cash flows, based on discounted cash flow modeling specific to each security.

Operating Expenses

The Corporation’s total operating expenses were $10.7 million in the December 2010 quarter compared to $10.6 million in the December 2009 quarter. The 2010 quarter included increased expenses associated with a new corporate headquarters occupied in June 2010 and increased problem loan expenses, partially offset by decreased FDIC insurance expense.

ASSET QUALITY

At December 31, 2010, nonperforming loans increased slightly to $18.8 million or 2.01 percent of total loans as compared to $18.0 million or 1.90 percent of total loans at September 30, 2010. Other real estate owned totaled $4.0 million as of December 31, 2010 compared to $1.0 million as of September 30, 2010. As noted earlier, during January 2011 $2.4 million of problem loans were paid off. Further, there are two properties totaling $4.0 million in other real estate owned and both are under contract for sale.

The allowance for loan losses was $14.3 million or 1.53 percent of total loans at December 31, 2010 as compared to $14.0 million or 1.49 percent of total loans at September 30, 2010 and $13.2 million or 1.34 percent of total loans at December 31, 2009.

CAPITAL

At December 31, 2010, the Corporation’s leverage ratio, tier 1 and total risk based capital ratios were 7.96 percent, 12.91 percent and 14.16 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. The Corporation’s ratios are all 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 December 31, 2010 is 6.44 percent compared to 6.09 percent at December 31, 2009.

As previously announced, on January 20, 2011, the Board of Directors declared a regular cash dividend of $0.05 per share payable on February 17, 2011 to shareholders of record on February 3, 2011.

ABOUT THE CORPORATION

Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.51 billion as of December 31, 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
December 31,   September 30,   June 30,   March 31,   December 31,
2010 2010 2010 2010 2009
 
ASSETS
Cash and due from banks $ 6,490 $ 9,935 $ 10,735 $ 8,999 $ 7,864
Federal funds sold 100 100 201 201 201
Interest-earning deposits 56,097 84,566 59,356 33,915 71,907
Total cash and cash equivalents 62,687 94,601 70,292 43,115 79,972
 
Securities held to maturity 140,277 102,032 101,603 105,258 89,459
Securities available for sale 275,076 246,334 252,646 278,052 272,484
FHLB and FRB Stock, at cost 4,624 4,623 4,807 5,305 5,315
 
Residential mortgage 419,653 425,315 430,021 443,085 452,641
Commercial mortgage 288,183 280,486 280,513 281,323 279,595
Commercial loans 131,408 128,220 133,881 133,288 120,554
Construction loans 25,367 39,989 46,286 48,044 64,816
Consumer loans 20,622 22,410 23,811 24,936 25,638
Home equity lines of credit 45,775 45,345 41,956 39,487 38,728
Other loans 1,489 2,626 2,788 902 1,565
Total loans 932,497 944,391 959,256 971,065 983,537
Less: Allowance for loan losses 14,282 14,025 13,856 13,720 13,192
Net loans 918,215 930,366 945,400 957,345 970,345
 
Premises and equipment 33,820 33,901 34,626 27,942 27,911
Other real estate owned 4,000 1,000 210 40 360
Accrued interest receivable 4,231 4,594 4,533 5,112 4,444
Bank owned life insurance 27,074 26,877 26,672 26,473 26,292
Deferred tax assets, net 26,083 23,903 23,438 23,999 23,522
Other assets 9,338 12,030 13,036 10,670 12,249
TOTAL ASSETS $ 1,505,425 $ 1,480,261 $ 1,477,263 $ 1,483,311 $ 1,512,353
 
LIABILITIES
Deposits:
Noninterest bearing
demand deposits $ 228,764 $ 219,700 $ 216,314 $ 223,184 $ 216,127
Interest-bearing deposits
Checking 290,322 255,665 249,472 241,887 255,058
Savings 80,799 78,819 76,937 77,064 73,866
Money market accounts 524,449 525,264 503,829 502,548 458,303
CD’s $100,000 and over 79,311 85,703 101,034 109,347 147,138
CD’s less than $100,000 147,901 155,268 163,769 173,219 199,177
Total deposits 1,351,546 1,320,419 1,311,355 1,327,249 1,349,669
Borrowings 24,126 24,234 28,342 36,140 36,499
Capital lease obligation 6,304 6,226 6,148 - -
Other liabilities 5,733 11,903 15,435 5,998 6,676
TOTAL LIABILITIES 1,387,709 1,362,782 1,361,280 1,369,387 1,392,844
Shareholders’ Equity 117,716 117,479 115,983 113,924 119,509
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY $ 1,505,425 $ 1,480,261 $ 1,477,263 $ 1,483,311 $ 1,512,353
 
Trust division assets under
administration (market value,
not included above) $ 1,940,404 $ 1,929,565 $ 1,830,944 $ 1,894,971 $ 1,856,229

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in thousands)

(Unaudited)
 

 
   

As of
December 31,   September 30,   June 30,   March 31,   December 31,
2010   2010 2010 2010 2009
 
Asset Quality:
Loans past due over 90 days
and still accruing $ 666 $ 442 $ 736 $ 638 $ 496
Nonaccrual loans 18,114 17,535 20,361 12,200 11,256
Other real estate owned

4,000

*
1,000   210   40   360  
Total nonperforming assets $ 22,780   $ 18,977   $ 21,307   $ 12,878   $ 12,112  
 
 
Nonperforming loans to
total loans 2.01 % 1.90 % 2.20 % 1.32 % 1.19 %
Nonperforming assets to
total assets 1.51 % 1.28 % 1.44 % 0.87 % 0.80 %
 
Troubled debt restructured loans $ 12,832 $ 10,639 $ 10,613 $ 11,817 $ 11,123
 
Loans past due 30 through 89
days and still accruing $ 5,475 $ 9,487 $ 9,444 $ 10,056 $ 6,015
 
Allowance for loan losses:
Beginning of period $ 14,025 $ 13,856 $ 13,720 $ 13,192 $ 12,947
Provision for loan losses 2,850 2,000 2,750 2,400 2,950
Charge-offs, net (2,593 ) (1,831 ) (2,614 ) (1,872 ) (2,705 )
End of period $ 14,282   $ 14,025   $ 13,856   $ 13,720   $ 13,192  
 
ALLL to nonperforming loans 76.05 % 78.02 % 65.68 % 106.87 % 112.25 %
ALLL to total loans 1.53 % 1.49 % 1.44 % 1.41 % 1.34 %
 
 
Capital Adequacy:
Tier I leverage
(5% minimum to be
considered well
capitalized) 7.96 % 8.00 % 7.85 % 7.80 % 7.93 %
Tier I capital to risk-
weighted assets
(6% minimum to be
considered well
capitalized) 12.91 % 12.62 % 12.28 % 12.01 % 12.45 %
Tier I & II capital to
risk-weighted assets
(10% minimum to be
considered well
capitalized) 14.16 % 13.88 % 13.53 % 13.27 % 13.71 %
 
Common equity to
Total assets 6.44 % 6.54 % 6.45 % 6.29 % 6.09 %
 
Book value per
Common share $ 11.03 $ 11.01 $ 10.85 $ 10.70 $ 10.57
 
*Other real estate owned includes two properties, both of which are under contract.

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except share data)

(Unaudited)
 

 
   

For The Three Months Ended
December 31,   September 30,   June 30,   March 31,   December 31,
2010 2010 2010 2010 2009
Income Statement Data:
Interest income $ 14,707 $ 14,974 $ 15,450 $ 15,791 $ 16,123
Interest expense 2,214   2,612   2,963   3,243   4,000  
Net interest income 12,493 12,362 12,487 12,548 12,123
Provision for loan losses 2,850   2,000   2,750   2,400   2,950  
Net interest income after
provision for loan losses 9,643 10,362 9,737 10,148 9,173
Trust fees 2,598 2,254 2,686 2,364 2,346
Other income 1,621 1,203 1,098 1,108 1,067
Securities gains/(losses), net (4 ) 126 2 - (42 )
Other-than-temporary impairment
charge, equity securities (581 ) (360 ) - - -
Salaries and employee benefits 5,469 5,647 5,704 5,709 5,291
Premises and equipment 2,248 2,416 2,588 2,372 2,358
FDIC insurance expense 598 586 552 586 834
Other expenses 2,374   2,237   2,161   1,863   2,124  
Income before income taxes 2,588 2,699 2,518 3,090 1,937
Income tax expense 711   793   762   965   536  
Net income 1,877 1,906 1,756 2,125 1,401
Dividends and accretion
on preferred stock 326 326 324 710 430
Net income available to          
Common shareholders $ 1,551   $ 1,580   $ 1,432   $ 1,415   $ 971  
 
Per Common Share Data:
Earnings per share (basic) $ 0.18 $ 0.18 $ 0.16 $ 0.16 $ 0.11
Earnings per share (diluted) 0.18 0.18 0.16 0.16 0.11
 
 
Performance Ratios:
Return on Average Assets 0.50 % 0.52 % 0.47 % 0.58 % 0.37 %
Return on Average Common
Equity 6.34 % 6.55 % 6.06 % 6.10 % 4.18 %
 
Net Interest Margin
(Taxable Equivalent Basis) 3.62 % 3.64 % 3.64 % 3.67 % 3.44 %

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except share data)

(Unaudited)
 
  For The
Twelve Months Ended
December 31,
      2010   2009
Income Statement Data:
Interest income $ 60,922 $ 66,007
Interest expense 11,032   17,659  
Net interest income 49,890 48,348
Provision for loan losses 10,000   9,700  
Net interest income after
provision for loan losses 39,890 38,648
Trust fees 9,901 9,428
Other income 5,031 4,301
Securities gains, net 124 69
Other-than-temporary impairment
charge, equity securities (941 ) -
Salaries and employee benefits 22,529 21,877
Premises and equipment 9,624 8,803
FDIC insurance expense 2,322 3,309
Other expenses 8,635   8,277  
Income before income taxes 10,895 10,180
Income tax expense 3,231   3,054  
Net income 7,664 7,126
Dividends and accretion
on preferred stock 1,686 1,493
Net income available to    
Common shareholders $ 5,978   $ 5,633  
 
Per Common Share Data:
Earnings per share (basic) $ 0.68 $ 0.64
Earnings per share (diluted) 0.68 0.64
 
 
Performance Ratios:
Return on Average Assets 0.52 % 0.49 %
Return on Average Common
Equity 6.26 % 6.26 %
 
Net Interest Margin
(Taxable Equivalent Basis) 3.64 % 3.58 %

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)
 

 
 

December 31, 2010
  December 31, 2009
Average   Income/     Average   Income/  
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1) $ 356,763 $ 2,170 2.43 % $ 304,301 $ 2,506 3.29 %
Tax-Exempt (1) (2) 34,547 354 4.10 47,749 578 4.83
Loans (2) (3) 942,542 12,287 5.21 996,601 13,232 5.31
Federal Funds Sold 100 1 0.35 201 - 0.20
Interest-Earning Deposits 64,020   47   0.29   90,663   47   0.21  
Total Interest-Earning
Assets 1,397,972   $ 14,859   4.25 % 1,439,515   $ 16,363   4.55 %
Noninterest-Earning Assets:
Cash and Due from Banks 9,138 9,493
Allowance for Loan
Losses (14,245 ) (12,872 )
Premises and Equipment 33,952 27,981
Other Assets 70,506   61,689  
Total Noninterest-Earning
Assets 99,351   86,291  
Total Assets $ 1,497,323   $ 1,525,806  
 
LIABILITIES:
Interest-Bearing Deposits
Checking $ 283,355 $ 352 0.50 % $ 226,851 $ 426 0.75 %
Money Markets 519,991 642 0.49 469,635 1,103 0.94
Savings 78,706 54 0.27 72,326 76 0.42
Certificates of Deposit 234,079   880   1.50   381,984   2,062   2.16  
Total Interest-Bearing
Deposits 1,116,131 1,928 0.69 1,150,796 3,667 1.27
Borrowings 24,162 208 3.44 36,605 333 3.64
Capital Lease Obligation 6,255   78   4.98   -   -   -  
Total Interest-Bearing
Liabilities 1,146,548   2,214   0.77   1,187,401   4,000   1.35  
Noninterest Bearing
Liabilities
Demand Deposits 225,228 209,458
Accrued Expenses and
Other Liabilities 6,944   8,676  
Total Noninterest-Bearing
Liabilities 232,172 218,134
Shareholders’ Equity 118,603   120,271  
Total Liabilities and
Shareholders’ Equity $ 1,497,323   $ 1,525,806  
Net Interest Income $ 12,645 $ 12,363
Net Interest Spread 3.48 % 3.20 %
Net Interest Margin (4) 3.62 % 3.44 %

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)
 

 
 

December 31, 2010
  September 30, 2010
Average   Income/     Average   Income/  
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1) $ 356,763 $ 2,170 2.43 % $ 314,213 $ 2,230 2.84 %
Tax-Exempt (1) (2) 34,547 354 4.10 32,545 384 4.72
Loans (2) (3) 942,542 12,287 5.21 949,301 12,473 5.26
Federal Funds Sold 100 1 0.35 193 - 0.22
Interest-Earning Deposits 64,020   47   0.29   78,501   50   0.26  
Total Interest-Earning
Assets 1,397,972   $ 14,859   4.25 % 1,374,753   $ 15,137   4.40 %
Noninterest-Earning Assets:
Cash and Due from Banks 9,138 8,314
Allowance for Loan
Losses (14,245 ) (14,180 )
Premises and Equipment 33,952 34,589
Other Assets 70,506   70,056  
Total Noninterest-Earning
Assets 99,351   98,779  
Total Assets $ 1,497,323   $ 1,473,532  
 
LIABILITIES:
Interest-Bearing Deposits
Checking $ 283,355 $ 352 0.50 % $ 259,816 $ 409 0.63 %
Money Markets 519,991 642 0.49 515,734 839 0.65
Savings 78,706 54 0.27 78,058 78 0.40
Certificates of Deposit 234,079   880   1.50   251,511   986   1.57  
Total Interest-Bearing
Deposits 1,116,131 1,928 0.69 1,105,119 2,312 0.84
Borrowings 24,162 208 3.44 25,532 223 3.51
Capital Lease Obligation 6,255   78   4.98   6,177   77   4.98  
Total Interest-Bearing
Liabilities 1,146,548   2,214   0.77   1,136,828   2,612   0.92  
Noninterest Bearing
Liabilities
Demand Deposits 225,228 211,390
Accrued Expenses and
Other Liabilities 6,944   8,216  
Total Noninterest-Bearing
Liabilities 232,172 219,606
Shareholders’ Equity 118,603   117,098  
Total Liabilities and
Shareholders’ Equity $ 1,497,323   $ 1,473,532  
Net Interest Income $ 12,645 $ 12,525
Net Interest Spread 3.48 % 3.48 %
Net Interest Margin (4) 3.62 % 3.64 %

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

TWELVE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)
 

 
 

December 31, 2010
  December 31, 2009
Average   Income/     Average   Income/  
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1) $ 329,605 $ 9,315 2.83% $ 247,500 $ 9,395 3.80%
Tax-Exempt (1) (2) 34,985 1,607 4.59 49,652 2,474 4.98
Loans (2) (3) 958,472 50,529 5.27 1,021,457 55,059 5.39
Federal Funds Sold 174 1 0.23 201 - 0.20
Interest-Earning Deposits 64,182 149   0.23 58,364 90   0.15
Total Interest-Earning
Assets 1,387,418 $ 61,601   4.44% 1,377,174 $ 67,018   4.87%
Noninterest-Earning Assets:
Cash and Due from Banks 8,567 7,958
Allowance for Loan
Losses (14,070) (10,879)
Premises and Equipment 31,826 27,361
Other Assets 69,309 57,802
Total Noninterest-Earning
Assets 95,632 82,242
Total Assets $ 1,483,050 $ 1,459,416
 
LIABILITIES:
Interest-Bearing Deposits
Checking $ 258,995 $ 1,586 0.61% $ 201,399 $ 1,476 0.73%
Money Markets 510,331 3,619 0.71 428,063 4,510 1.05
Savings 77,023 289 0.38 70,850 320 0.45
Certificates of Deposit 266,134 4,286   1.61 397,329 9,985   2.51
Total Interest-Bearing
Deposits 1,112,483 9,780 0.88 1,097,641 16,291 1.48
Borrowings 29,552 1,046 3.54 38,507 1,368 3.55
Capital Lease Obligation 3,637 206   5.64 - -   -
Total Interest-Bearing
Liabilities 1,145,672 11,032   0.96 1,136,148 17,659   1.55
Noninterest Bearing
Liabilities
Demand Deposits 214,753 199,543
Accrued Expenses and
Other Liabilities 6,490 7,144
Total Noninterest-Bearing
Liabilities 221,243 206,687
Shareholders’ Equity 116,135 116,581
Total Liabilities and
Shareholders’ Equity $ 1,483,050 $ 1,459,416
Net Interest Income $ 50,569 $ 49,359
Net Interest Spread 3.48% 3.32%
Net Interest Margin (4) 3.64% 3.58%
(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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