Exhibit 99.1

 

Contact:

Jeffrey J. Carfora, SEVP and CFO

Peapack-Gladstone Financial Corporation

T: 908-719-4308

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

REPORTS ANOTHER SOLID QUARTER OF ACCOMPLISHMENT

 

BEDMINSTER, N.J. – January 30, 2014 – Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market:PGC) (the “Corporation” or the “Company”) recorded net income of $2.40 million and diluted earnings per share of $0.25 for the quarter ended December 31, 2013.

Doug Kennedy, President and CEO, said, “We had another solid quarter of accomplishment, including achieving several new records.”

·

We continued to implement and follow through on our Strategic Plan – “Expanding Our Reach”. The Plan focuses on the client experience and aggressively building and maintaining a private banking platform.

·

In support of the growth associated with the Plan, we successfully raised $42 million (gross) of common equity in a rights offering and sale to standby investors, that closed on December 12, 2013. Over 52 percent of the offering was subscribed by existing shareholders. The remainder was purchased by nine pre-arranged standby investors, the majority of which were new institutional shareholders in the Company.

·

Total end of year loan balances reached another record level for the Company – $1.57 billion. This level reflected an increase of $442 million or 39 percent from the balance at December 31, 2012, and included an increase of $177 million in the fourth quarter of 2013.

·

Total deposits also reached another record level. The end of year balance of $1.65 billion reflected an increase of $131 million or nearly nine percent from the balance at December 31, 2012, and included an increase of $75 million in the fourth quarter of 2013.

·

The Company’s net interest income for the December 2013 quarter reached another quarterly record level - $14.53 million. This level reflected improvement when compared to $12.76 million for the December 2012 quarter, and also reflected improvement when compared to $13.37 million for the immediately preceding September 2013 quarter.

·

At December 31, 2013, the market value of assets under administration at the Bank’s Wealth Management Division of $2.69 billion was also another record for the Company. This level reflected an increase of 17 percent from the balance at December 31, 2012.

·

Fee income from Peapack-Gladstone Bank’s Wealth Management Division of $3.55 million for the December 2013 quarter reflected growth of over 21 percent when compared to the $2.93 million for the December 2012 quarter.

·

Total revenue (net interest income plus other income) of $19.50 million for the December 2013 quarter reflected improvement when compared to prior quarters in 2013.

·

Trends in asset quality continue to demonstrate strong improvement when compared to prior periods. For example, nonperforming assets declined in both dollars and as a percentage of assets, to just 0.44 percent of total assets as of December 31, 2013, compared to 0.91 percent of total assets as of December 31, 2012.

·

The book value per share at December 31, 2013 of $14.79 reflected improvement when compared to $14.12 at September 30, 2013 and $13.87 at December 31, 2012.

·

Capital ratios were benefitted by the December 2013 capital raise and were improved and very strong as of December 31, 2013, even with nearly $300 million growth in assets for the year, as well as migration of lower risk weighted investment security cash flows into loans.

The $3.53 million pre-tax income, $2.40 million net income and $0.25 fully diluted earnings per share for the December 2013 quarter were negatively impacted by a $204 thousand ($128 thousand net of tax) search fee related to the new head of Wealth Management and also $602 thousand ($378 thousand net of tax) of accelerated depreciation expense related to the closing of our Operations Center and consolidation of the staff into our Administration building and equipment to an off-premises third party location.

Mr. Kennedy noted, “As we previously announced, John Babcock will join the Company, effective March 10, 2014, as the head of private wealth management. John is a proven leader in the wealth management space and will be a tremendous asset to the Company as we continue to execute our strategy.”

Finn Caspersen Jr., Senior Executive Vice President and Chief Operating Officer of the Company, commented, “We are pleased to now have all of our operations support staff consolidated into our Administration building and our core operating system equipment located at an off-premises third party location. These moves have created operating efficiencies; reduced risk from a disaster preparedness perspective; and created a savings relative to ongoing premises and equipment expenses.”

Net Interest Income and Margin

Net interest income was $14.53 million for the fourth quarter of 2013, reflecting an increase of $1.77 million from the same quarter last year. The net interest margin, on a fully tax-equivalent basis, was 3.26 percent for the December 2013 quarter compared to 3.42 percent for the December 2012 quarter.

Net interest income for the current 2013 quarter benefitted from significant loan growth during 2013, principally multifamily and commercial mortgage, funded by deposits, borrowings, and a decline in lower yielding investment securities and interest earning cash balances.

Net interest margin for the December 2013 quarter declined when compared to the December 2012 quarter due to the effect of low market yields, which compressed asset yields more than deposit costs. The 3.26 percent net interest margin for the December 2013 quarter showed only minor compression when compared to the 3.28 percent for the immediately preceding September 2013 quarter.

Average Loans/Loan Originations

For the fourth quarter of 2013, average loans totaled $1.49 billion as compared to $1.13 billion for the same quarter in 2012, reflecting an increase of $366 million, or 33 percent. The average commercial mortgage and commercial loan portfolio for the quarter ended December 2013 increased $358 million, or 68 percent, from the same quarter of 2012. The increase was attributable to a more concerted focus on this type of business in both the New Jersey and New York City markets, as well as demand from high-quality borrowers looking to refinance multifamily and other commercial mortgages held by other institutions.

Total loan originations were $243 million for the fourth quarter of 2013, up significantly from $116 million for the same quarter of 2012. Loan originations were $779 million for the twelve months ended December 31, 2013, also up significantly from $397 million for the same twelve month period of 2012. Included in the total were commercial mortgage (principally multifamily) / commercial loan originations of $551 million and $202 million for the twelve months and three months ended December 31, 2013, respectively, compared to $150 million and $55 million for the 2012 periods, respectively.

Mr. Kennedy said “We are focused on generating solid lending growth, and we have been successful. As part of our Strategic Plan, we introduced a comprehensive Commercial & Industrial (C&I) lending program and we have closed $97 million of volume for the year. We expect such volume to continue to increase in future periods. Further, our multifamily and commercial real estate lenders have generated significant closed volume and continue to maintain very robust pipelines.”

Average Deposits

For the December 2013 quarter, average total deposits (interest-bearing and noninterest-bearing) increased $216 million or 15 percent when compared to the same quarter last year. Over that same period, the Company saw growth in each of its deposit categories, except certificates of deposit. For the fourth quarter of 2013, average certificates of deposit (CDs) declined $23 million from the same 2012 quarter. These higher-cost CDs were replaced with lower-cost, more stable core deposits.

The Company continues to successfully focus on:

-

Business and personal relationships;

-

Municipal relationships within its market territory; and

-

Growth in deposits associated with its private banking and its lending activities.

Mr. Kennedy commented, “We will continue to place intense focus on providing high touch client service and growing our strong core deposit base. Service is a key differentiator for us that will enable us to grow our business. In addition, we now have a full array of Cash Management products in place that will help support our growth in C&I lending.”

Wealth Management Business

In the fourth quarter of 2013, Peapack-Gladstone Bank’s wealth management business generated $3.55 million in fee income compared to $2.93 million for the fourth quarter of 2012, reflecting growth of 21 percent. The market value of the assets under administration (AUA) of the wealth management division was $2.69 billion at December 31, 2013, up from $2.30 billion at December 31, 2012 and $2.58 billion reported at September 30, 2013. The growth in fee income and AUA was due to new business, market value improvement, as well as solid investment advisory and management.

Mr. Kennedy noted, “We were pleased with the results of our Delaware Trust & Investment subsidiary which ended the year with nearly $100 million in assets under administration.” Our wealth management business differentiates us from many of our competitors and adds significant value to our Company. Conversations with all clients and potential clients across all lines of business include a wealth discussion, which will help them to establish, maintain, and/or expand their legacy.

Other Noninterest Income

In the December 2013 quarter, other noninterest income, exclusive of wealth management fees and securities gains, totaled $1.30 million, reflecting a decrease of $42 thousand or 3 percent when compared to the same quarter a year ago. The fourth quarter of 2013 included $171 thousand of income from the sale of newly originated residential mortgage loans, down from $370 thousand in the same 2012 quarter. Mr. Kennedy noted, “Due to the rise in mortgage rates earlier this year, a decrease in residential mortgage loan originations and resultant mortgage banking income was expected and planned for. Reduced levels of mortgage banking income are expected to be ongoing. Fortunately, mortgage banking income is not a significant portion of revenue (under two percent of total revenue for the twelve months ended December 31, 2013). Further, we have reduced our overhead expense associated with mortgage banking; we have taken steps to improve our loan volume on the commercial front which has and will improve net interest income; and we have introduced Cash Management services/products, which we expect will contribute to noninterest income in the future.”

Securities gains were $125 thousand for the December 2013 quarter compared to $3.08 million for the December 2012 quarter. The December 2012 quarter included a $2.87 million gain on the Company’s negotiated sale of its entire pooled trust preferred securities portfolio.

 

Operating Expenses

The Company’s total operating expenses were $14.65 million for the fourth quarter of 2013 compared to $13.55 million in the same 2012 quarter. The 2013 quarter included the previously mentioned $204 thousand search fee for the new head of our Wealth Management Division and the $602 thousand accelerated depreciation expense related to the consolidation of the operations center staff and equipment. The 2012 quarter included a $929 thousand severance accrual related to certain senior management changes, and $336 thousand of costs related to the CEO search which brought Mr. Kennedy to the Company in October 2012. After excluding these items, operating expenses increased $1.59 million in the December 2013 quarter compared to the December 2012 quarter. Salary and benefits expense rose in the 2013 quarter from the 2012 quarter principally due to strategic hiring in line with the Company’s Strategic Plan, as well as normal salary increases and increased bonus/incentive and profit sharing accruals. The 2013 expense levels also included various professional and other fees associated with various training and consulting, some of which was associated with the Strategic Plan.

Mr. Kennedy noted, “We expected higher operating expenses in 2013 relative to 2012. We expect that the trend of higher operating expenses will continue in 2014 as we bring on high caliber revenue producers, and continue to invest in our infrastructure in line with our Strategic Plan. Further, we generally expect revenue and profitability related to new personnel to lag those expenses by several quarters. It is important to note, however, that we did see an improvement in revenue in each of the quarters this year, and particularly in the December 2013 quarter as our plan began to gain momentum later in the year.”

Provision for Loan Losses / Asset Quality

For the quarter ended December 31, 2013, the Company’s provision for loan losses was $1.33 million compared to a $4.53 million provision recorded in the fourth quarter of 2012. Charge-offs, net of recoveries, for the fourth quarter of 2013 were $8 thousand compared to $5.68 million for the December 2012 quarter. The 2012 charge-off level included charge-offs related to $19 million of classified loans strategically moved to loans held for sale at December 31, 2012. These loans were sold in the first quarter of 2013 resulting in a gain of $522 thousand.

At December 31, 2013 the allowance for loan losses was 232 percent of nonperforming loans and 0.98 percent of total loans. Nonperforming assets totaled $8.6 million or just 0.44 percent of total assets at December 31, 2013 compared to $15.2 million or 0.91 percent of assets at December 31, 2012. The 0.44 percent nonperforming asset ratio, at December 31, 2013, compares favorably to a 1.20 percent weighted average for all Mid-Atlantic banks.

Capital / Dividends

At December 31, 2013, after accounting for the capital raise, the Company’s leverage ratio, tier 1 and total risk based capital ratios were 9.00 percent, 14.07 percent and 15.33 percent, respectively. The Company’s ratios are all significantly above the levels required to be considered well-capitalized under regulatory guidelines applicable to banks. The Company’s common equity ratio (common equity to total assets) at December 31, 2013 was 8.68 percent of total assets, up when compared to 7.32 percent at December 31, 2012.

On January 23, 2014, the Board of Directors declared a regular cash dividend of $0.05 per share payable on February 21, 2014 to shareholders of record on February 6, 2014.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $1.97 billion as of December 31, 2013. Founded in 1921, Peapack-Gladstone Bank is a commercial bank that provides innovative private banking services to businesses, non-profits and consumers which help them to establish, maintain and expand their legacy. Through its private banking locations in Bedminster, Morristown, Princeton and Teaneck, its wealth management division, and its branch network and online platforms, Peapack-Gladstone Bank offers an unparalleled commitment to client service.

 

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

·

inability to successfully grow our business and implement our strategic plan, including an inability to generate revenues to offset the increased personnel and other costs related to the strategic plan;

·

inability to manage our growth;

·

a continued or unexpected decline in the economy, in particular in our New Jersey and New York market areas;

·

declines in our net interest margin caused by the low interest rate and highly competitive market;

·

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;

·

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, Basel III 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 fund 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, 2012. 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
		Dec 31,				Sept 30,				June 30,				March 31,				Dec 31,
		2013				2013				2013				2013				2012
ASSETS
Cash and due from banks		$	6,534			$	5,886			$	5,978			$	5,030			$	6,733
Federal funds sold			101				101				101				100				100
Interest-earning deposits			28,512				33,528				60,783				94,147				112,395
Total cash and cash equivalents			35,147				39,515				66,862				99,277				119,228
Securities held to maturity			—				—				—				—				—
Securities available for sale			268,447				273,952				270,334				283,448				304,479
FHLB and FRB Stock, at cost			10,032				7,707				4,729				4,643				4,639
Loans held for sale, at fair value			2,001				724				4,684				1,828				6,461
Loans held for sale, at lower of cost
or fair value			—				—				—				—				13,749
Residential mortgage			532,911				527,927				532,356				523,051				515,014
Commercial mortgage			831,997				680,762				534,371				455,670				420,086
Commercial loans			131,795				110,843				106,598				105,305				115,372
Construction loans			5,893				8,390				9,179				9,180				9,328
Consumer loans			21,852				19,932				19,552				20,782				21,188
Home equity lines of credit			47,905				47,020				47,583				46,778				49,635
Other loans			1,848				2,075				2,545				997				1,961
Total loans			1,574,201				1,396,949				1,252,184				1,161,763				1,132,584
Less:  Allowance for loan losses			15,373				14,056				13,438				13,279				12,735
Net loans			1,558,828				1,382,893				1,238,746				1,148,484				1,119,849
Premises and equipment			28,990				29,022				29,021				29,429				30,030
Other real estate owned			1,941				2,759				3,347				4,141				3,496
Accrued interest receivable			4,086				4,017				3,972				3,768				3,864
Bank owned life insurance			31,882				31,691				31,490				31,283				31,088
Deferred tax assets, net			9,762				7,951				8,608				10,384				9,478
Other assets			15,832				17,473				17,797				18,647				21,475
TOTAL ASSETS		$	1,966,948			$	1,797,704			$	1,679,590			$	1,635,332			$	1,667,836
LIABILITIES
Deposits:
Noninterest-bearing
demand deposits		$	356,119			$	345,736			$	326,916			$	307,730			$	298,095
Interest-bearing deposits
Checking			388,340				338,626				352,196				336,934				346,877
Savings			115,785				115,571				115,823				114,804				109,686
Money market accounts			630,173				611,498				559,439				547,302				583,197
CD’s $100,000 and over			61,128				62,136				65,607				67,902				68,741
CD’s less than $100,000			95,705				98,996				102,945				106,432				109,831
Total deposits			1,647,250				1,572,563				1,522,926				1,481,104				1,516,427
Overnight borrowings			54,900				30,361				—				—				—
Federal home loan bank advances			74,692				47,692				12,000				12,099				12,218
Capital lease obligation			8,754				8,809				8,864				8,918				8,971
Other Liabilities			10,695				11,861				11,687				8,605				8,163
TOTAL LIABILITIES			1,796,291				1,671,286				1,555,477				1,510,726				1,545,779
Shareholders’ equity			170,657				126,418				124,113				124,606				122,057
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY		$	1,966,948			$	1,797,704			$	1,679,590			$	1,635,332			$	1,667,836
Assets under administration at
PGB Trust & Investments
(market value, not included
above)		$	2,690,601			$	2,581,813			$	2,520,424			$	2,544,465			$	2,303,612

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in Thousands)

(Unaudited)

 

		Dec 31,				Sept 30,				June 30,				March 31,				Dec 31,
		2013				2013				2013				2013				2012
Asset Quality:
Loans past due over 90 days
and still accruing		$	—			$	—			$	—			$	—			$	—
Nonaccrual loans			6,630				6,891				8,075				11,290				11,732	(C)
Other real estate owned			1,941				2,759				3,347				4,141				3,496
Total nonperforming assets		$	8,571			$	9,650			$	11,422			$	15,431			$	15,228	(C)
Nonperforming loans to
total loans			0.42%				0.49%				0.64%				0.97%				1.04%	(C)
Nonperforming assets to
total assets			0.44%				0.54%				0.68%				0.94%				0.91%	(C)
Accruing TDR’s (A)		$	11,114			$	6,133			$	6,131			$	5,986			$	6,415	(C)
Loans past due 30 through 89
days and still accruing		$	2,953			$	2,039			$	1,544			$	1,791			$	3,786
Classified loans (B)		$	33,827			$	32,430				32,123			$	35,945			$	32,014	(C)
Impaired loans (B)		$	17,744			$	16,794			$	17,977			$	21,046			$	18,147	(C)
Allowance for loan losses:
Beginning of period		$	14,056			$	13,438				13,279			$	12,735			$	13,893
Provision for loan losses			1,325				750				500				850				4,525
Charge-offs, net			(8	)			(132	)			(341	)			(306	)			(5,683	)
End of period		$	15,373			$	14,056			$	13,438			$	13,279			$	12,735
ALLL to nonperforming loans			231.87%				203.98%				166.41%				117.62%				108.55%	(C)
ALLL to total loans			0.98%				1.01%				1.07%				1.14%				1.12%	(C)
Capital Adequacy:
Tier I leverage			9.00%				7.20%				7.39%				7.37%				7.27%
Tier I capital to risk-weighted assets			14.07%				11.30%				11.84%				12.16%				11.83%
Tier I & II capital to
risk-weighted assets			15.33%				12.55%				13.09%				13.41%				13.08%
Common equity to total assets			8.68%				7.03%				7.39%				7.62%				7.32%
(End of period)
Book value per common share		$	14.79			$	14.12			$	13.93			$	14.05			$	13.87

 

(A)

Does not include $2.9 million at December 31, 2013, $3.3 million at September 30, 2013, $3.3 million at June 30, 2013, $3.3 million at March 31, 2013 and $2.9 million at December 31, 2012 of TDR’s included in nonaccrual loans.

 

(B)

Classified loans include all impaired loans. Impaired loans include all nonaccrual loans and all TDRs.

 

(C)

Does not include classified Loans Held for Sale, as these loans were carried at lower of cost or fair value and were being marketed for sale as of 12/31/12. The sale closed during Q1 2013.

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

LOANS CLOSED AND FUNDED

(Dollars in Thousands)

(Unaudited)

 

		For the Quarters Ended
		Dec 31,				Sept 30,				June 30,				March 31,				Dec 31,
		2013				2013				2013				2013				2012
Residential loans retained		$	20,135			$	31,517			$	37,352			$	31,430			$	34,699
Residential loans sold			11,743				13,516				26,651				25,402				20,677
Total residential loans			31,878				45,033				64,003				56,832				55,376
CRE			11,972				20,357				17,080				9,490				13,125
Multifamily			152,456				143,727				70,645				27,880				39,160
Commercial loans			37,188				38,433				7,120				14,493				2,790
Small business banking &
Installment loans			5,427				4,710				2,866				2,693				2,657
Home equity lines of credit			3,746				3,982				2,619				4,452				2,501
Total loan originations		$	242,667			$	256,242			$	164,333			$	115,840			$	115,609

 

		For the Twelve Months Ended
		Dec 31,				Dec 31,
		2013				2012
Residential loans retained		$	120,434			$	140,504
Residential loans sold			77,312				79,737
Total residential loans			197,746				220,241
CRE			58,899				64,072
Multifamily			394,707				69,360
Commercial loans			97,234				16,864
Small business banking &
Installment loans			15,696				12,673
Home equity lines of credit			14,799				13,460
Total loan originations		$	779,081			$	396,670

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except share data)

(Unaudited)

 

		Dec 31,				Sept 30,				June 30,				March 31,				Dec 31,
		2013				2013				2013				2013				2012
Income Statement Data:
Interest income		$	15,738			$	14,423			$	13,460			$	13,432			$	13,792
Interest expense			1,210				1,050				1,012				1,005				1,033
Net interest income			14,528				13,373				12,448				12,427				12,759
Provision for loan losses			1,325				750				500				850				4,525
Net interest income after
provision for loan losses			13,203				12,623				11,948				11,577				8,234
Trust fees			3,547				3,295				3,628				3,368				2,929
Gain on sale of classified loans			—				—				—				522				—
Gain on loans sold (Mortgage
Banking)			171				277				412				470				370
Other income			1,130				1,022				958				955				973
Securities gains, net			125				188				238				289				3,078
Total other income			4,973				4,782				5,236				5,604				7,350
Salaries and employee benefits			8,308				8,927				7,935				7,079				8,045
Premises and equipment			2,947				2,325				2,338				2,304				2,433
FDIC insurance expense			286				275				280				280				267
Other expenses			3,105				2,638				3,526				2,630				2,808
Total operating expenses			14,646				14,165				14,079				12,293				13,553
Income before income taxes			3,530				3,240				3,105				4,888				2,031
Income tax expense			1,135				1,276				1,096				1,995				973
Net income			2,395				1,964				2,009				2,893				1,058
Dividends and accretion
on preferred stock			—				—				—				—				—
Net income available to
common shareholders		$	2,395			$	1,964			$	2,009			$	2,893				$$1,058
Total revenue		$	19,501			$	18,155			$	17,684			$	17,509	(A)		$	17,239	(B)
(See footnotes below)
Per Common Share Data:
Earnings per share (basic)		$	0.25			$	0.22			$	0.23			$	0.33			$	0.12
Earnings per share (diluted)			0.25				0.22				0.22				0.32				0.12
Performance Ratios:
Return on average assets			0.51%				0.45%				0.48%				0.71%				0.26%
Return on average common
equity			7.42%				6.28%				6.41%				9.40%				3.52%
Net interest margin
(Taxable equivalent basis)			3.26%				3.28%				3.22%				3.28%				3.42%

 

(A)

Excludes a $522 thousand gain from sale of classified loans. Including this gain, total revenue was $18,031.

(B)

Excludes a $2.9 million gain from sale of the Company’s Pooled Trust Preferred Securities portfolio. Including this gain, total revenue was $20,109.

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in thousands, except share data)

(Unaudited)

 

		For the
		Twelve Months Ended
		December 31,
		2013				2012
Income Statement Data:
Interest income		$	57,053			$	56,090
Interest expense			4,277				4,687
Net interest income			52,776				51,403
Provision for loan losses			3,425				8,275
Net interest income after
provision for loan losses			49,351				43,128
Trust fees			13,838				12,282
Gain on sale of classified loans			522				—
Gain on loans sold (Mortgage Banking)			1,330				1,195
Other income			4,065				4,016
Securities gains, net			840				3,810
Total other income			20,595				21,303
Salaries and employee benefits			32,249				27,595
Premises and equipment			9,914				9,467
FDIC insurance expense			1,121				1,208
Other expenses			11,899				10,060
Total operating expenses			55,183				48,330
Income before income taxes			14,763				16,101
Income tax expense			5,502				6,405
Net income			9,261				9,696
Dividends and accretion
on preferred stock			—				474
Net income available to
common shareholders		$	9,261			$	9,222
Total revenue		$	72,849	(A)		$	69,836	(B)
(See footnotes below)
Per Common Share Data:
Earnings per share (basic)		$	1.02			$	1.05
Earnings per share (diluted)			1.01				1.05
Performance Ratios:
Return on average assets			0.54%				0.61%
Return on average common equity			7.37%				8.03%
Net interest margin
(Tax equivalent basis)			3.26%				3.50%

 

(A)

Excludes a $522 thousand gain from sale of classified loans in the March 2013 quarter. Including this gain, total revenue would have been $73,371.

(B)

Excludes a $2.87 million gain from sale of the Company’s Pooled Trust Preferred Securities portfolio in the December 2012 quarter. Including this gain, total revenue would have been $72,706.

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 

		December 31, 2013												December 31, 2012
		Average				Income/								Average				Income/
		Balance				Expense				Yield				Balance				Expense				Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1)		$	213,779			$	1,103				2.06	%		$	267,890			$	1,423				2.12	%
Tax-exempt (1) (2)			57,358				333				2.32				47,262				327				2.77
Loans held for sale			1,186				17				5.76				4,355				48				4.40
Loans (2) (3)			1,491,667				14,422				3.87				1,125,490				12,107				4.30
Federal funds sold			101				—				0.10				100				—				0.10
Interest-earning deposits			38,351				17				0.18				66,942				41				0.24
Total interest-earning
assets			1,802,442			$	15,892				3.53	%			1,512,039			$	13,946				3.69	%
Noninterest-Earning Assets:
Cash and due from banks			6,217												6,885
Allowance for loan losses			(14,385	)											(14,020	)
Premises and equipment			29,220												30,350
Other assets			64,818												76,251
Total noninterest-earning
assets			85,870												99,466
Total assets		$	1,888,312											$	1,611,505
LIABILITIES:
Interest-Bearing Deposits:
Checking		$	410,409			$	98				0.10	%		$	346,373			$	87				0.10	%
Money markets			629,580				319				0.20				517,470				202				0.16
Savings			115,186				15				0.05				105,228				14				0.05
Certificates of deposit			158,085				393				0.99				180,941				528				1.17
Total interest-bearing
deposits			1,313,260				825				0.25				1,150,012				831				0.29
Borrowings			61,585				281				1.83				12,258				95				3.10
Capital lease obligation			8,773				104				4.74				8,990				107				4.76
Total interest-bearing
liabilities			1,383,618				1,210				0.35				1,171,260				1,033				0.35
Noninterest –Bearing
Liabilities:
Demand deposits			364,463												311,920
Accrued expenses and
other liabilities			11,159												8,144
Total noninterest-bearing
liabilities			375,622												320,064
Shareholders’ equity			129,072												120,181
Total liabilities and
shareholders’ equity		$	1,888,312											$	1,611,505
Net interest income						$	14,682											$	12,913
Net interest spread											3.18	%											3.34	%
Net interest margin (4)											3.26	%											3.42	%

 

(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.

 

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 

		December 31, 2013												September 30, 2013
		Average				Income/								Average				Income/
		Balance				Expense				Yield				Balance				Expense				Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1)		$	213,779			$	1,103				2.06	%		$	237,559			$	1,141				1.92	%
Tax-exempt (1) (2)			57,358				333				2.32				54,465				328				2.41
Loans held for sale			1,186				17				5.76				1,617				21				5.27
Loans (2) (3)			1,491,667				14,422				3.87				1,322,842				13,065				3.95
Federal funds sold			101				—				0.10				101				—				0.10
Interest-earning deposits			38,351				17				0.18				35,168				21				0.24
Total interest-earning
assets			1,802,442			$	15,892				3.53	%			1,651,752			$	14,576				3.53	%
Noninterest-Earning Assets:
Cash and due from banks			6,217												5,962
Allowance for loan losses			(14,385	)											(13,615	)
Premises and equipment			29,220												28,984
Other assets			64,818												65,163
Total noninterest-earning
assets			85,870												86,494
Total assets		$	1,888,312											$	1,738,246
LIABILITIES:
Interest-Bearing Deposits:
Checking		$	410,409			$	98				0.10	%		$	349,392			$	73				0.08	%
Money markets			629,580				319				0.20				580,819				275				0.19
Savings			115,186				15				0.05				115,711				15				0.05
Certificates of deposit			158,085				393				0.99				165,347				444				1.07
Total interest-bearing
deposits			1,313,260				825				0.25				1,211,269				807				0.27
Borrowings			61,585				281				1.83				45,149				138				1.22
Capital lease obligation			8,773				104				4.74				8,828				105				4.76
Total interest-bearing
liabilities			1,383,618				1,210				0.35				1,265,246				1,050				0.33
Noninterest –Bearing
Liabilities:
Demand deposits			364,463												337,684
Accrued expenses and
other liabilities			11,159												10,241
Total noninterest-bearing
liabilities			375,622												347,925
Shareholders’ equity			129,072												125,075
Total liabilities and
shareholders’ equity		$	1,888,312											$	1,738,246
Net interest income						$	14,682											$	13,526
Net interest spread											3.18	%											3.20	%
Net interest margin (4)											3.26	%											3.28	%

 

(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.

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

TWELVE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 

		December 31, 2013												December 31, 2012
		Average				Income/								Average				Income/
		Balance				Expense				Yield				Balance				Expense				Yield
ASSETS:
Interest-Earning Assets:
Investments:
Taxable (1)		$	230,158			$	4,606				2.00	%		$	303,599			$	7,033				2.32	%
Tax-exempt (1) (2)			53,038				1,307				2.46				46,780				1,363				2.91
Loans held for sale			5,498				285				5.18				2,487				123				4.94
Loans (2) (3)			1,290,247				51,311				3.98				1,094,696				48,112				4.40
Federal funds sold			101				—				0.10				100				—				0.10
Interest-earning deposits			60,685				152				0.25				41,303				98				0.24
Total interest-earning
assets			1,639,727			$	57,661				3.52	%			1,488,965			$	56,729				3.81	%
Noninterest-Earning Assets:
Cash and due from banks			5,970												6,506
Allowance for loan losses			(13,653	)											(13,942	)
Premises and equipment			29,312												31,049
Other assets			69,197												77,048
Total noninterest-earning
assets			90,826												100,661
Total assets		$	1,730,553											$	1,589,626
LIABILITIES:
Interest-Bearing Deposits:
Checking		$	366,703			$	323				0.09	%		$	336,228			$	379				0.11	%
Money markets			578,819				1,048				0.18				510,633				1,022				0.20
Savings			113,914				59				0.05				101,068				70				0.07
Certificates of deposit			167,921				1,823				1.09				188,918				2,237				1.18
Total interest-bearing
deposits			1,227,357				3,253				0.27				1,136,847				3,708				0.33
Borrowings			32,894				603				1.83				25,277				548				2.17
Capital lease obligation			8,855				421				4.75				9,067				431				4.75
Total interest-bearing
liabilities			1,269,106				4,277				0.34				1,171,191				4,687				0.40
Noninterest –Bearing
Liabilities:
Demand deposits			326,286												296,250
Accrued expenses and
other liabilities			9,460												6,977
Total noninterest-bearing
liabilities			335,746												303,227
Shareholders’ equity			125,701												115,208
Total liabilities and
shareholders’ equity		$	1,730,553											$	1,589,626
Net interest income						$	53,384											$	52,042
Net interest spread											3.18	%											3.41	%
Net interest margin (4)											3.26	%											3.50	%

 

(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.