Contact:

Jeffrey J. Carfora, EVP and CFO

Peapack-Gladstone Financial Corporation

T: 908-719-4308

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

REPORTS STRONG RESULTS FOR THE SECOND QUARTER OF 2012

 

BEDMINSTER, N.J. – July 30, 2012 – For the quarter ended June 30, 2012, Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market:PGC) (the Corporation) recorded net income available to common shareholders of $2.72 million and diluted earnings per share (EPS) of $0.31. This quarter’s EPS reflected growth of 40.9 percent when compared to diluted earnings per share of $0.22, for the quarter ended June 30, 2011. The current quarter’s EPS also reflected growth when compared to diluted earnings per share of $0.30 for the immediately preceding quarter ended March 31, 2012.

For the six months ended June 30, 2012, the Corporation recorded net income available to common shareholders of $5.33 million and diluted earnings per share of $0.61. EPS for the current six month period reflected growth of 52.5 percent when compared to $0.40, for the same six month period last year.

Frank A. Kissel, Chairman and CEO, stated, “This was another solid quarter for us, reflecting the strength of the Corporation and reinforcing our belief that the local economy continues to stabilize.”

Mr. Kissel also noted that this was the first quarter since the fourth quarter of 2008 that the Corporation was not required to pay a preferred dividend, as the preferred stock issued in January 2009 to the Treasury under its Capital Purchase Program (CPP) was fully redeemed early in the first quarter of 2012.

 

 

Net Interest Income and Margin

 

Net interest income, on a fully tax-equivalent basis, was $13.06 million for the second quarter of 2012, up from $12.34 million for the same quarter last year.

On a fully tax-equivalent basis, the net interest margin was 3.52 percent for the June 2012 quarter compared to 3.49 percent for the June 2011 quarter.

In comparing the June 2012 quarter to the June 2011 quarter, the positive effect of increased loans, funded by core deposit growth, reduced investment securities and a slight increase in overnight borrowings, was partially offset by the effect of lower Treasury yields, which compressed asset yields more than deposit costs.

Loans

 

Average loans totaled $1.10 billion for the second quarter of 2012 as compared to $968 million for the same 2011 quarter, an increase of $133 million.

The average residential mortgage loan portfolio for the second quarter of 2012 increased $92 million when compared to the same quarter of 2011. The increase is attributable to originations retained in the portfolio that have outpaced loan paydowns. During this period of lower interest rates, refinance activity has generally been robust. Many of these loans have been retained in portfolio. However, the Corporation does sell much 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.

The average commercial mortgage and commercial loan portfolio for the second quarter of 2012 increased $45 million from the second quarter of 2011. The increase was attributable to commercial mortgage demand, principally from high quality borrowers looking to refinance multifamily and other commercial mortgages held by other institutions.

 

Mr. Kissel stated, “We continue to be successful in finding new solid lending opportunities. This has been the sixth quarter in a row where we have reflected growth in our loan portfolio.” Loan originations were $200 million for the first six months of 2012, up from $153 million for the same six month period of 2011. Included in the total were commercial mortgage/commercial loan originations of $73 million for the 2012 period. Mr. Kissel noted, “We still have room to continue to benefit from funding our loan production with cash flows from our investment portfolio. However, we will continue to conservatively underwrite our loans, as we have in the past.”

As of June 30, 2012, the residential first mortgage loan and the commercial mortgage/commercial loan pipelines (loans approved, but not closed and funded) stood at $47 million and $38 million, respectively, with many other lending opportunities in the discussion stage.

Deposits

 

Average total deposits (interest-bearing and noninterest-bearing) increased $59 million for the June 2012 quarter from the same quarter last year.

Average noninterest-bearing checking balances grew $55 million for the second quarter of 2012 when compared to the second quarter of 2011. Average interest-bearing checking balances for the quarter ended June 30, 2012 grew $18 million from the same quarter in 2011. Average savings accounts increased $14 million from the second quarter of 2011 to the second quarter of 2012.

Overall checking and savings growth continues to be attributable to the Corporation’s relationship orientation. The Corporation has successfully focused on:

-

Business and personal core deposit generation, particularly checking;

-

Establishing municipal relationships within its market territory; and

-

Growth in deposits associated with its commercial mortgage/commercial loan growth.

Average certificates of deposit (CDs) declined $16 million for the June 2012 quarter from the June 2011 quarter. These higher-cost CDs were basically replaced with lower cost, more stable core deposits.

From December 31, 2011 to June 30, 2012, total deposits declined $21 million, as various municipalities utilized funds that were held on deposit at year end.

Mr. Kissel commented, “The Corporation’s deposit mix continues to consist primarily of lower-cost, more stable core deposits (checking, savings and money markets), which benefits our cost of funds and our franchise value.”

PGB Trust and Investments

  

PGB Trust and Investments generated $3.26 million in fee income in the second quarter of 2012 compared to $2.83 million for the second quarter of 2011, reflecting 15.2 percent growth. The market value of the assets under administration of the Trust Division stood at $2.06 billion at June 30, 2012, up from $1.96 billion reported at December 31, 2011 and up from $2.01 billion reported at June 30, 2011.

Craig C. Spengeman, President of PGB Trust & Investments commented, “We continue to see growth in new relationships engaging our services and advice, as a result of our success in guiding clients through these challenging and volatile markets. Mr. Spengeman further noted, “Recent key additions to staff enhance our ability to both grow and service our valued client base.”

Other Noninterest Income

  

Other noninterest income, exclusive of Trust fees, totaled $1.41 million in the June 2012 quarter compared to $1.50 million in the same quarter a year ago. Compared to the second quarter of 2011, the 2012 quarter included: reduced gains from the strategic sales of securities; reduced service charges, as customers have been more diligent in managing their accounts; and a $26 thousand net loss on disposition of REO. The effect of these was almost fully offset by increased fee income from sale of longer term, fixed rate residential mortgage loans, due to higher origination levels, as well as a decision to retain less fixed rate loans in portfolio.

Operating Expenses

 

The Corporation’s total operating expenses were $11.70 million in the June 2012 quarter compared to $11.04 million in the June 2011 quarter. The 2012 expense levels included: costs for the Corporation to keep up with the increased regulatory burden on financial institutions; costs associated with key additions to staff in PGB Trust & Investments, to enhance their ability to grow and service their client base; increased commissions related to increased loan originations; and normal salary increases. The net effect of those additional costs were partially offset by various operational efficiencies.

 

 

 

Provision for Loan Losses / Asset Quality

  

The Corporation’s provision for loan losses for the quarter ended June 30, 2012 was $1.50 million, lower than the $2.00 million provision recorded in the June 2011 quarter.

At June 30, 2012, nonperforming assets totaled $22.1 million or 1.40 percent of total assets, compared to $26.3 million or 1.65 percent of assets at December 31, 2011 and $18.4 million or 1.21 percent of assets at June 30, 2011. Mr. Kissel commented, “We have continued to make progress in resolving problem assets, and we believe that progress will continue. In fact, we expect that several more problem loan/property workouts are on the immediate horizon.”

Capital / Dividends

  

As noted last quarter, the preferred stock issued in January 2009 under Treasury’s Capital Purchase Program (CPP) was fully redeemed early in the first quarter of 2012. At June 30, 2012, including the effect from this redemption, the Corporation’s leverage ratio, tier 1 and total risk based capital ratios were 7.15 percent, 11.27 percent and 12.52 percent, respectively. The Corporation’s ratios are all above the levels necessary to be considered well capitalized under regulatory guidelines applicable to Banks. Additionally, the Corporation’s common equity ratio (common equity to total assets) at June 30, 2012 was 7.24 percent of total assets, reflecting growth from 6.81 percent of total assets at December 31, 2011.

As previously announced, on July 19, 2012, the Board of Directors declared a regular cash dividend of $0.05 per share payable on August 16, 2012 to shareholders of record on August 2, 2012.

 

ABOUT THE CORPORATION

  

Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.58 billion as of June 30, 2012. 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 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 website 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;

·

successful cyber attacks against our IT infrastructure and that of our IT providers;

·

higher than expected FDIC insurance premiums;

·

lack of liquidity to funds our various cash obligations;

·

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, 2011 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.

 

(Tables to Follow)

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in Thousands)

(Unaudited)

 

		As of
		June 30,				March 31,				December 31,				September 30,				June 30,
		2012				2012				2011				2011				2011
ASSETS
Cash and due from banks		$	5,639			$	5,146			$	7,097			$	8,135			$	8,678
Federal funds sold			100				100				100				100				100
Interest-earning deposits			29,024				28,144				35,856				66,424				51,606
Total cash and cash equivalents			34,763				33,390				43,053				74,659				60,384
Securities held to maturity			84,779				88,667				100,719				121,241				140,572
Securities available for sale			257,318				281,770				319,520				311,927				249,837
FHLB and FRB Stock, at cost			4,818				5,594				4,569				4,699				4,704
Loans held for sale, at fair value			2,259				3,214				2,841				722				1,813
Residential mortgage			526,726				518,111				498,482				438,828				432,735
Commercial mortgage			384,289				358,822				330,559				317,066				316,197
Commercial loans			116,493				119,351				123,845				129,039				128,839
Construction loans			6,804				12,517				13,713				14,893				15,385
Consumer loans			20,885				19,769				19,439				20,345				20,184
Home equity lines of credit			49,057				47,831				50,291				51,458				48,805
Other loans			2,128				1,504				2,016				1,564				3,612
Total loans			1,106,382				1,077,905				1,038,345				973,193				965,757
Less:  Allowance for loan losses			13,686				13,496				13,223				13,843				14,056
Net loans			1,092,696				1,064,409				1,025,122				959,350				951,701
Premises and equipment			30,979				31,482				31,941				32,497				33,098
Other real estate owned			3,073				3,391				7,137				3,264				3,000
Accrued interest receivable			3,447				3,842				4,078				3,788				4,391
Bank owned life insurance			30,688				30,490				27,296				27,767				27,537
Deferred tax assets, net			26,430				26,767				26,731				27,543				24,689
Other assets			7,355				6,524				7,328				7,831				9,014
TOTAL ASSETS		$	1,578,605			$	1,579,540			$	1,600,335			$	1,575,288			$	1,510,740
LIABILITIES
Deposits:
Noninterest-bearing
demand deposits		$	304,651			$	288,130			$	297,459			$	254,646			$	238,788
Interest-bearing deposits
Checking			323,813				318,239				341,180				337,900				322,801
Savings			104,631				98,743				92,322				89,527				86,828
Money market accounts			495,929				512,464				516,920				511,059				507,159
CD’s $100,000 and over			78,268				73,927				71,783				76,100				73,186
CD’s less than $100,000			115,793				120,140				124,228				127,778				132,949
Total deposits			1,423,085				1,411,643				1,443,892				1,397,010				1,361,711
Overnight borrowings			—				22,900				—				—				—
Federal home loan bank advances			16,451				17,566				17,680				20,793				20,905
Capital lease obligation			9,076				9,127				9,178				6,396				6,426
Other Liabilities			15,758				7,170				6,614				30,406				6,489
TOTAL LIABILITIES			1,464,370				1,468,406				1,477,364				1,454,605				1,395,531
Shareholders’ equity			114,235				111,134				122,971				120,683				115,209
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY		$	1,578,605			$	1,579,540			$	1,600,335			$	1,575,288			$	1,510,740
Trust division assets under
administration (market value,
not included above)		$	2,062,798			$	2,063,729			$	1,957,146			$	1,857,527			$	2,005,859

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in Thousands)

(Unaudited)

 

		As of
		June 30,				March 31,				December 31,				September 30,				June 30,
		2012				2012				2011				2011				2011
Asset Quality:
Loans past due over 90 days
and still accruing		$	—			$	—			$	345			$	836			$	412
Nonaccrual loans			19,011				18,598				18,865				22,103				14,943
Other real estate owned			3,073				3,391				7,137				3,264				3,000
Total nonperforming assets		$	22,084			$	21,989			$	26,347			$	26,203			$	18,355
Nonperforming loans to
total loans			1.72	%			1.73	%			1.85	%			2.36	%			1.59	%
Nonperforming assets to
total assets			1.40	%			1.39	%			1.65	%			1.66	%			1.21	%
Accruing TDR’s (A)		$	7,647			$	7,842			$	7,281			$	5,519			$	8,171
Loans past due 30 through 89
days and still accruing		$	2,836			$	7,619			$	11,632			$	9,706			$	8,200
Classified loans		$	47,102			$	48,546			$	49,101			$	52,031			$	51,586
Impaired loans		$	26,658			$	26,568			$	26,212			$	27,529			$	23,115
Allowance for loan losses:
Beginning of period		$	13,496			$	13,223			$	13,843			$	14,056			$	14,386
Provision for loan losses			1,500				1,500				1,750				1,500				2,000
Charge-offs, net			(1,310	)			(1,227	)			(2,370	)			(1,713	)			(2,330	)
End of period		$	13,686			$	13,496			$	13,223			$	13,843			$	14,056
ALLL to nonperforming loans			71.99	%			72.57	%			68.83	%			60.35	%			91.54	%
ALLL to total loans			1.24	%			1.25	%			1.27	%			1.42	%			1.46	%
Capital Adequacy:
Tier I leverage			7.15	%			7.00	%			7.73	%			7.86	%			7.63	%
Tier I capital to risk-weighted assets			11.27	%			11.21	%			12.51	%			12.73	%			12.67	%
Tier I & II capital to
risk-weighted assets			12.52	%			12.46	%			13.76	%			13.98	%			13.92	%
Common equity to total assets			7.24	%			7.04	%			6.81	%			6.78	%			6.71	%
Book value per common share		$	13.02			$	12.70			$	12.47			$	12.09			$	11.48

 

 

(A)  Does not include $6.1 million at June 30, 2012, $6.0 million at March 31, 2012, $3.8 million at December 31, 2011, $3.9 million at September 30, 2011 and $1.3 million at June 30, 2011 of TDR’s included in nonaccrual loans.

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except share data)

(Unaudited)

 

 

		For the Three Months Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2012				2012				2011				2011				2011
Income Statement Data:
Interest income		$	14,102			$	14,214			$	14,101			$	13,594			$	14,099
Interest expense			1,199				1,323				1,485				1,699				1,916
Net interest income			12,903				12,891				12,616				11,895				12,183
Provision for loan losses			1,500				1,500				1,750				1,500				2,000
Net interest income after
provision for loan losses			11,403				11,391				10,866				10,395				10,183
Trust fees			3,259				3,176				2,584				2,555				2,829
Other income			1,305				1,157				1,350				1,170				1,218
Securities gains/(losses), net			107				390				316				248				277
Total other income			4,671				4,723				4,250				3,973				4,324
Salaries and employee benefits			6,408				6,113				5,651				5,789				5,817
Premises and equipment			2,413				2,331				2,313				2,322				2,386
FDIC insurance expense			290				352				278				253				397
Other expenses			2,593				2,284				3,306				2,209				2,435
Total operating expenses			11,704				11,080				11,548				10,573				11,035
Income before income taxes			4,370				5,034				3,568				3,795				3,472
Income tax expense/(benefit)			1,647				1,951				1,041				(1,537	)(A)			1,304
Net income			2,723				3,083				2,527				5,332	(B)			2,168
Dividends and accretion
on preferred stock			—				474				220				219				219
Net income available to
common shareholders		$	2,723			$	2,609			$	2,307			$	5,113	(B)		$	1,949
Per Common Share Data:
Earnings per share (basic)		$	0.31			$	0.30			$	0.26			$	0.58	(C)		$	0.22
Earnings per share (diluted)			0.31				0.30				0.26				0.58	(C)			0.22
Performance Ratios:
Return on average assets			0.69	%			0.78	%			0.64	%			1.39	%(D)			0.57	%
Return on average common
equity			9.65	%			9.47	%			8.61	%			19.87	%(E)			7.82	%
Net interest margin
(Taxable equivalent basis)			3.52	%			3.54	%			3.46	%			3.37	%			3.49	%

 

(A)	Income taxes for the third quarter includes a one-time state tax benefit of $2.988 million related to the reversal of a previously recorded valuation allowance against net state tax benefits related to security impairment charges recorded in the year ended December 31, 2008.  Circumstances and projections now indicate that this deferred tax asset can be utilized when it is realized in future periods.
(B)	Net income and net income available to common shareholders, excluding the one-time state tax benefit of $2.988 million would be $2.344 million and $2.125 million, respectively for the third quarter.
(C)	EPS excluding the one-time state tax benefit of $2.988 million is $0.24 for the third quarter.  See page 14, for more information on this non-GAAP measure.
(D)	ROA excluding the one-time state tax benefit of $2.988 million is 0.61% for the third quarter.  See page 14, for more information on this non-GAAP measure.
(E)	ROE excluding the one-time state tax benefit of $2.988 million is 8.26% for the third quarter.  See page 14, for more information on this non-GAAP measure.

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except share data)

(Unaudited)

 

 

		For the
		Six Months Ended
		June 30,
		2012				2011
Income Statement Data:
Interest income		$	28,316			$	28,356
Interest expense			2,522				3,952
Net interest income			25,794				24,404
Provision for loan losses			3,000				4,000
Net interest income after
provision for loan losses			22,794				20,404
Trust fees			6,435				5,547
Other income			2,462				2,473
Securities gains/(losses), net			497				473
Total other income			9,394				8,493
Salaries and employee benefits			12,521				11,790
Premises and equipment			4,744				4,736
FDIC insurance expense			642				1,001
Other expenses			4,877				4,751
Total operating expenses			22,784				22,278
Income before income taxes			9,404				6,619
Income tax expense			3,598				2,310
Net income			5,806				4,309
Dividends and accretion
on preferred stock			474				789
Net income available to
common shareholders		$	5,332			$	3,520
Per Common Share Data:
Earnings per share (basic)		$	0.61			$	0.40
Earnings per share (diluted)			0.61				0.40
Performance Ratios:
Return on average assets			0.73	%			0.57	%
Return on average common equity			9.56	%			7.14	%
Net interest margin
(Tax equivalent basis)			3.53	%			3.51	%

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

NON-GAAP RECONCILIATION

(Dollars in thousands, except share data)

 

This press release contains certain supplemental financial information, described below, which has been determined by methods other that U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of the Corporation’s performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding the Corporation’s financial results. Management believes that the Corporation’s presentation and discussion, together with the accompanying reconciliation, provides a complete understanding of factors and trends affecting the Corporation’s business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and the Corporation strongly encourages investors to review it consolidated financial statements in their entirety and not to rely on any single financial measure.

 

 

		For the Three
		Months Ended
		September 30, 2011
Net Income:
As reported		$	5,332
Less:  Valuation allowance reversal			2,988
Net income, excluding valuation allowance reversal			2,344
Net Income Available to Common Shareholders:
As reported		$	5,113
Less:  Valuation allowance reversal			2,988
Net income, excluding valuation allowance reversal			2,125
Per Common Share Data:
Earnings per share (basic):
As reported		$	0.58
Less:  Valuation allowance reversal			0.34
Earnings per share (basic),
excluding valuation allowance reversal			0.24
Earnings per share (diluted):
As reported		$	0.58
Less:  Valuation allowance reversal			0.34
Earnings per share (diluted),
excluding valuation allowance reversal			0.24
Performance Ratios:
Return on average assets:
As reported			1.39	%
Return on average assets,
excluding valuation allowance reversal			0.61	%
Return on average common equity:
As reported			19.87	%
Return on average common equity,
excluding valuation allowance reversal			8.26	%

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 

		June 30, 2012												June 30, 2011
		Average				Income/								Average				Income/
		Balance				Expense				Yield				Balance				Expense				Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1)		$	312,362			$	1,770				2.27	%		$	375,216			$	2,209				2.35	%
Tax-exempt (1) (2)			45,556				332				2.92				36,855				347				3.77
Loans held for sale			1,137				18				6.57				510				5				3.78
Loans (2) (3)			1,101,095				12,124				4.40				968,179				11,674				4.82
Federal funds sold			100				—				0.10				100				—				0.25
Interest-earning deposits			22,306				14				0.26				32,598				20				0.24
Total interest-earning
assets			1,482,556			$	14,258				3.85	%			1,413,458			$	14,255				4.03	%
Noninterest-Earning Assets:
Cash and due from banks			5,846												8,231
Allowance for loan losses			(13,990	)											(15,086	)
Premises and equipment			31,284												33,393
Other assets			76,469												71,868
Total noninterest-earning
assets			99,609												98,406
Total assets		$	1,582,165											$	1,511,864
LIABILITIES:
Interest-Bearing Deposits:
Checking		$	326,920			$	90				0.11	%		$	309,310			$	292				0.38	%
Money markets			505,532				257				0.20				516,739				577				0.45
Savings			99,958				13				0.05				86,150				56				0.26
Certificates of deposit			192,261				563				1.17				208,697				713				1.37
Total interest-bearing
deposits			1,124,671				923				0.33				1,120,896				1,638				0.58
Borrowings			36,586				168				1.84				26,242				198				3.02
Capital lease obligation			9,093				108				4.75				6,410				80				4.98
Total interest-bearing
liabilities			1,170,350				1,199				0.41				1,153,548				1,916				0.66
Noninterest –Bearing
Liabilities:
Demand deposits			292,459												237,651
Accrued expenses and
other liabilities			6,438												7,104
Total noninterest-bearing
liabilities			298,897												244,755
Shareholders’ equity			112,918												113,561
Total liabilities and
shareholders’ equity		$	1,582,165											$	1,511,864
Net interest income						$	13,059											$	12,339
Net interest spread											3.44	%											3.37	%
Net interest margin (4)											3.52	%											3.49	%

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 

		June 30, 2012												March 31, 2012
		Average				Income/								Average				Income/
		Balance				Expense				Yield				Balance				Expense				Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1)		$	312,362			$	1,770				2.27	%		$	350,306			$	2,052				2.34	%
Tax-exempt (1) (2)			45,556				332				2.92				49,843				381				3.06
Loans held for sale			1,137				18				6.57				1,602				23				5.60
Loans (2) (3)			1,101,095				12,124				4.40				1,052,960				11,917				4.53
Federal funds sold			100				—				0.10				100				—				0.10
Interest-earning deposits			22,306				14				0.26				21,988				17				0.30
Total interest-earning
assets			1,482,556			$	14,258				3.85	%			1,476,799			$	14,390				3.90	%
Noninterest-Earning Assets:
Cash and due from banks			5,846												7,687
Allowance for loan losses			(13,990	)											(13,753	)
Premises and equipment			31,284												31,751
Other assets			76,469												78,781
Total noninterest-earning
assets			99,609												104,466
Total assets		$	1,582,165											$	1,581,265
LIABILITIES:
Interest-Bearing Deposits:
Checking		$	326,920			$	90				0.11	%		$	336,541			$	113				0.13	%
Money markets			505,532				257				0.20				516,357				304				0.24
Savings			99,958				13				0.05				94,732				29				0.12
Certificates of deposit			192,261				563				1.17				193,992				596				1.23
Total interest-bearing
deposits			1,124,671				923				0.33				1,141,622				1,042				0.37
Borrowings			36,586				168				1.84				37,237				172				1.85
Capital lease obligation			9,093				108				4.75				9,145				109				4.77
Total interest-bearing
liabilities			1,170,350				1,199				0.41				1,188,004				1,323				0.45
Noninterest –Bearing
Liabilities:
Demand deposits			292,459												275,157
Accrued expenses and
other liabilities			6,438												6,407
Total noninterest-bearing
liabilities			298,897												281,564
Shareholders’ equity			112,918												111,697
Total liabilities and
shareholders’ equity		$	1,582,165											$	1,581,265
Net interest income						$	13,059											$	13,067
Net interest spread											3.44	%											3.45	%
Net interest margin (4)											3.52	%											3.54	%

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

SIX MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 

		June 30, 2012												June 30, 2011
		Average				Income/								Average				Income/
		Balance				Expense				Yield				Balance				Expense				Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1)		$	331,334			$	3,822				2.31	%		$	379,625			$	4,478				2.36	%
Tax-exempt (1) (2)			47,699				714				2.99				36,224				700				3.86
Loans held for sale			1,370				41				6.00				621				21				6.66
Loans (2) (3)			1,077,028				24,041				4.46				952,712				23,421				4.92
Federal funds sold			100				—				0.10				100				—				0.26
Interest-earning deposits			22,147				31				0.28				37,237				48				0.26
Total interest-earning
assets			1,479,678			$	28,649				3.87	%			1,406,519			$	28,668				4.08	%
Noninterest-Earning Assets:
Cash and due from banks			6,766												8,055
Allowance for loan losses			(13,872	)											(15,010	)
Premises and equipment			31,518												33,516
Other assets			77,369												71,457
Total noninterest-earning
assets			101,781												98,018
Total assets		$	1,581,459											$	1,504,537
LIABILITIES:
Interest-Bearing Deposits:
Checking		$	331,731			$	203				0.12	%		$	303,688			$	595				0.39	%
Money markets			510,944				561				0.22				519,590				1,200				0.46
Savings			97,345				42				0.09				84,170				109				0.26
Certificates of deposit			193,127				1,159				1.20				213,998				1,488				1.39
Total interest-bearing
deposits			1,133,147				1,965				0.35				1,121,446				3,392				0.60
Borrowings			36,912				340				1.84				25,445				401				3.15
Capital lease obligation			9,119				217				4.76				6,372				159				4.97
Total interest-bearing
liabilities			1,179,178				2,522				0.43				1,153,263				3,952				0.69
Noninterest –Bearing
Liabilities:
Demand deposits			283,808												230,075
Accrued expenses and
other liabilities			6,166												6,408
Total noninterest-bearing
liabilities			289,974												236,483
Shareholders’ equity			112,307												114,791
Total liabilities and
shareholders’ equity		$	1,581,459											$	1,504,537
Net interest income						$	26,127											$	24,716
Net interest spread											3.44	%											3.39	%
Net interest margin (4)											3.53	%											3.51	%

 

(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.