Peapack-Gladstone Financial Corporation Reports Results for the First Quarter of 2013
http://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=1009674&ProfileId=051205&sourceType=1BEDMINSTER, NJ -- (Marketwired) -- 04/23/13 -- Peapack-Gladstone Financial Corporation (NASDAQ: PGC) (the Corporation) recorded net income available to common shareholders of $2.89 million and diluted earnings per share of $0.32 for the first quarter of 2013. This compared to $2.61 million and $0.30, respectively, for the same quarter last year.
Doug Kennedy, President and CEO, said, "I am pleased to report another quarter of accomplishment. First and foremost, after an extensive assessment of our Company and the market in Q4 2012 and into Q1 2013, we developed and presented, to our Board of Directors, a comprehensive plan for our future. This Strategic Plan -- known as "Expanding Our Reach" -- focuses on the client experience and organic growth across all lines of business. The Plan calls for expansion of existing lines of business, and establishment of a new commercial and industrial (C&I) lending platform, through the use of private banking teams, who will lead with deposit gathering and wealth management discussions. The Plan further calls for establishment of a sales force that supports our branches and will serve as a primary point of contact for clients. The Plan was accepted and approved by the Board in March 2013 and implementation began immediately."
Mr. Kennedy went on to note the following additional highlights for the first quarter of 2013:
- The Company continued to generate strong earnings.
- In March 2013, the Company closed on the sale of the pool of classified loans which were transferred to loans held for sale at December 31, 2012. An after tax gain of $309 thousand, was recorded upon such sale in the first quarter.
- Total loan balances of $1.16 billion reached a record level for the Company. This level reflected an increase of 8 percent from the end of March 2012 and an increase of nearly 3 percent (or over 10 percent on an annualized basis) from year end 2012.
- Fee income from PGB Trust & Investments reflected growth of over 6 percent when compared to the same quarter last year.
- At March 31, 2013, the market value of assets under administration at PGB Trust & Investments, reached $2.54 billion, also a record level for the Company. This level reflected an increase of 23 percent from the end of March 2012 and an increase of 10 percent (or 40 percent on an annualized basis) from year end 2012.
- Mortgage banking income (gain on sale of loans) for the March 2013 quarter more than doubled when compared to the first quarter of 2012.
- Despite a much reduced provision for loan losses in the current quarter compared to the same quarter last year, the allowance for loan losses as a percentage of nonperforming loans and as a percentage of gross loans both reflected improvement when compared to year end 2012.
- Asset quality metrics continue to be strong and improved when compared to a year ago.
- The common equity ratio at March 31, 2013 reflected improvement when compared to the ratio one year ago.
- Book value per common share at the end of the first quarter 2013 reflected growth of nearly 11 percent when compared to the book value as of March 31, 2012.
Net Interest Income and Margin
On a fully tax-equivalent basis, net interest income was $12.58 million for the first quarter of 2013, reflecting a decrease of $488 thousand from the same quarter last year. The net interest margin, on a fully tax-equivalent basis, was 3.28 percent and 3.54 percent for the March 2013 and 2012 quarters, respectively.
Net interest income and the net interest margin for the current quarter reflected declines from the same quarter last year, due to the effect of the lower market yields, which compressed asset yields more than deposit costs. Additionally, a much higher overnight cash balance position maintained during the current quarter also contributed to the compressed margin. Partially offsetting these effects, net interest income and margin were benefitted in the current quarter by the positive effect of increased loans funded by cash flows from lower yielding investment securities.
Loans
For the first quarter of 2013, average loans totaled $1.14 billion as compared to $1.05 billion for the same quarter in 2012, which was an increase of $90.1 million, or 8.6 percent.
The average commercial mortgage and commercial loan portfolio for the quarter ended March 2013 increased $84.2 million, or 18.4 percent, from the same quarter of 2012. The increase was attributable to a more concerted focus on this type of business, as well as demand from high-quality borrowers looking to refinance multi-family and other commercial mortgages held by other institutions.
Total loans at March 31, 2013 grew $83.9 million or 7.8 percent when compared to total loans at March 31, 2012.
Total loan originations were $116.9 million for the first quarter of 2013, up from $99.8 million for the same quarter of 2012. Included in the total were commercial mortgage/commercial loan originations of $52.5 million for the 2013 quarter compared to $36.7 million for the 2012 quarter.
Mr. Kennedy said "I was pleased with our success in generating solid lending growth this past quarter. As part of our Strategic Plan, we have begun to introduce a comprehensive Commercial & Industrial (C&I) lending program and expect to begin closing loans from this effort in the next several months. We have also added a seasoned multi-family lender in the current quarter who had a very robust pipeline at the end of the quarter."
Deposits
For the March 2013 quarter, average total deposits (interest-bearing and noninterest-bearing) increased $64.6 million when compared to the same quarter last year. Over that same period, the Company saw growth in all deposit categories, except certificates of deposit. For the first quarter of 2013, average certificates of deposit (CDs) declined $17.4 million from the same 2012 quarter. These higher-cost CDs were replaced with lower-cost, more stable core deposits.
Total deposits at March 31, 2013 increased $69.5 million, or 4.9 percent from March 31, 2012. The Company continues to successfully focus on:
- Business and personal core deposit generation, particularly checking;
- Municipal relationships within its market territory; and
- Growth in deposits associated with its commercial mortgage/commercial loan growth.
Mr. Kennedy commented, "Our strong and valuable low cost core deposit base and our traditional focus on providing high touch client service are key as we implement our Strategic Plan."
PGB Trust & Investments
In the first quarter of 2013, PGB Trust & Investments generated $3.37 million in fee income compared to $3.18 million for the first quarter of 2012, reflecting growth of 6.0 percent. The growth was due to new business, as well as market action coupled with solid investment advisory and management. The market value of the assets under administration of the wealth management division was $2.54 billion at March 31, 2013, up from $2.30 billion at December 31, 2012 and $2.06 billion reported at March 31, 2012.
Mr. Kennedy noted, "The wealth management business adds significant value to our Company. As part of our Strategic Plan, conversations with clients and potential clients across all lines of business will include a wealth discussion."
Other Noninterest Income
In the March 2013 quarter, other noninterest income, exclusive of Trust fees and securities gains, totaled $1.95 million, reflecting an increase of $790 thousand or 68.3 percent when compared to the same quarter a year ago. The first quarter of 2013 included $470 thousand of income from the sale of newly originated longer duration residential mortgage loans, compared to $188 thousand in the same 2012 quarter. The increase was due to a balance sheet management decision to retain less longer duration loans in the portfolio, as well as a decision to target a higher sale price. The first quarter of 2013 also included a $522 thousand gain from the March sale of the Company's classified loans which were transferred to loans held for sale at year end 2012.
Operating Expenses
The Company's total operating expenses were $12.29 million for the first quarter of 2013 quarter compared to $11.08 million in the same 2012 quarter. Salary and benefits expense rose due to: additions to staff as we begin to implement the Strategic Plan; increased commissions related to residential loan originations; normal salary increases; and increased bonus/incentive and profit sharing accruals. The 2013 expense levels also included various professional and other fees associated with the Delaware subsidiary; the Amended Stock Incentive Plan; the "Shelf Registration" (defined later); and various training and consulting, some of which was associated with the Strategic Plan.
Mr. Kennedy noted, "We expected higher operating expenses this first quarter of 2013, and we expect that trend will continue as we move forward with the implementation of our Strategic Plan. Further, we expect revenue and related profitability associated with the Plan to generally lag expenses by several quarters."
Provision for Loan Losses / Asset Quality
For the quarter ended March 31, 2013, the Company's provision for loan losses was $850 thousand compared to $4.5 million recorded in the immediately preceding December 2012 quarter and $1.5 million provision recorded in the first quarter of 2012. Charge-offs, net of recoveries, for the first quarter of 2013 were $306 thousand compared to $5.7 million for the immediately preceding December 2012 quarter and $1.2 million for the March 2012 quarter.
The higher provisioning and net charge-off levels in the December 2012 quarter were due to a fourth quarter strategic initiative - moving approximately $19 million of classified loans to loans held for sale, which resulted in an additional provision for loan losses of $4.0 million and charge-offs of $5.4 million.
Nonperforming assets totaled $15.4 million or 0.94 percent of total assets at March 31, 2013 compared to $22.0 million or 1.39 percent of assets at March 31, 2012.
Capital / Dividends
As noted in prior quarters, 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 March 31, 2013, the Company's leverage ratio, tier 1 and total risk based capital ratios were 7.37 percent, 12.16 percent and 13.41 percent, respectively. The Company's ratios are all above the levels necessary to be considered well-capitalized under regulatory guidelines applicable to banks. Additionally, the Company's common equity ratio (common equity to total assets) at March 31, 2013 was 7.62 percent of total assets, reflecting growth from 7.32 percent at December 31, 2012 and from 7.04 percent of total assets at March 31, 2012.
As previously announced, on April 18, 2013, the Board of Directors declared a regular cash dividend of $0.05 per share payable on May 16, 2013 to shareholders of record on May 2, 2013.
On April 19, 2013 the Company filed a Form S-3 Registration Statement registering an indeterminate amount of shares/securities not to exceed $50 million, to be issued in the future from time to time at indeterminate prices ("Shelf Registration"). Mr. Kennedy noted, "This Shelf Registration will enable us to efficiently take advantage of the capital markets from time to time in the future, as needed to support growth associated with our Strategic Plan." Mr. Kennedy went on to say, "We will be very careful in any decision to issue capital, making our decision only after appropriate and comprehensive analysis and vetting."
In accordance with its By-Laws, the Company's Annual Meeting will be held on April 23, 2013, at 2:00 p.m. on the first floor of its headquarters building at 500 Hills Drive, Bedminster, New Jersey.
ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.64 billion as of March 31, 2013. Peapack-Gladstone Bank, its wholly-owned commercial bank, was established in 1921, and has 23 branches in Somerset, Hunterdon, Middlesex, Morris and Union Counties. The Bank's wealth management division, PGB Trust & 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 at the Bank's new subsidiary, PGB Trust & Investments of Delaware in Greenville, Delaware. To learn more about Peapack-Gladstone Financial Corporation and Peapack-Gladstone Bank's products and 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 and implement our strategic plan;
- 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 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.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)
As of
------------------------------------------------------
March 31, Dec 31, Sept 30, June 30, March 31,
2013 2012 2012 2012 2012
---------- ---------- ---------- ---------- ----------
ASSETS
Cash and due from
banks $ 5,030 $ 6,733 $ 5,466 $ 5,639 $ 5,146
Federal funds sold 100 100 100 100 100
Interest-earning
deposits 94,147 112,395 49,354 29,024 28,144
---------- ---------- ---------- ---------- ----------
Total cash and cash
equivalents 99,277 119,228 54,920 34,763 33,390
Securities held to
maturity - - 76,698 84,779 88,667
Securities available
for sale 283,448 304,479 253,489 257,318 281,770
FHLB and FRB Stock,
at cost 4,643 4,639 4,639 4,818 5,594
Loans held for sale,
at fair value 1,828 6,461 8,443 2,259 3,214
Loans held for sale,
at lower of cost or
fair value - 13,749 - - -
Residential mortgage 523,051 515,014 504,407 526,726 518,111
Commercial mortgage 455,670 420,086 391,976 384,289 358,822
Commercial loans 105,305 115,372 115,602 116,493 119,351
Construction loans 9,180 9,328 9,639 6,804 12,517
Consumer loans 20,782 21,188 21,542 20,885 19,769
Home equity lines of
credit 46,778 49,635 51,440 49,057 47,831
Other loans 997 1,961 1,876 2,128 1,504
---------- ---------- ---------- ---------- ----------
Total loans 1,161,763 1,132,584 1,096,482 1,106,382 1,077,905
Less: Allowance for
loan losses 13,279 12,735 13,893 13,686 13,496
---------- ---------- ---------- ---------- ----------
Net loans 1,148,484 1,119,849 1,082,589 1,092,696 1,064,409
Premises and
equipment 29,429 30,030 30,472 30,979 31,482
Other real estate
owned 4,141 3,496 3,392 3,073 3,391
Accrued interest
receivable 3,768 3,864 4,040 3,447 3,842
Bank owned life
insurance 31,283 31,088 30,887 30,688 30,490
Deferred tax assets,
net 10,384 9,478 25,861 26,430 26,767
Other assets 18,647 21,475 8,060 7,355 6,524
---------- ---------- ---------- ---------- ----------
TOTAL ASSETS $1,635,332 $1,667,836 $1,583,490 $1,578,605 $1,579,540
========== ========== ========== ========== ==========
LIABILITIES
Deposits:
Noninterest-bearing
demand deposits $ 307,730 $ 298,095 $ 306,711 $ 304,651 $ 288,130
Interest-bearing
deposits
Checking 336,934 346,877 332,786 323,813 318,239
Savings 114,804 109,686 103,572 104,631 98,743
Money market
accounts 547,302 583,197 504,863 495,929 512,464
CD's $100,000 and
over 67,902 68,741 72,168 78,268 73,927
CD's less than
$100,000 106,432 109,831 112,586 115,793 120,140
---------- ---------- ---------- ---------- ----------
Total deposits 1,481,104 1,516,427 1,432,686 1,423,085 1,411,643
Overnight borrowings - - - - 22,900
Federal home loan
bank advances 12,099 12,218 12,335 16,451 17,566
Capital lease
obligation 8,918 8,971 9,024 9,076 9,127
Other Liabilities 8,605 8,163 11,967 15,758 7,170
---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES 1,510,726 1,545,779 1,466,012 1,464,370 1,468,406
Shareholders' equity 124,606 122,057 117,478 114,235 111,134
---------- ---------- ---------- ---------- ----------
TOTAL LIABILITIES
AND SHAREHOLDERS'
EQUITY $1,635,332 $1,667,836 $1,583,490 $1,578,605 $1,579,540
========== ========== ========== ========== ==========
Assets under
administration at
PGB Trust &
Investments (market
value, not included
above) $2,544,465 $2,303,612 $2,146,920 $2,062,798 $2,063,729
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
As of
-------------------------------------------------
March Sept June March
31, Dec 31, 30, 30, 31,
2013 2012 2012 2012 2012
-------- ------- ------- ------- --------
Asset Quality:
Loans past due over 90
days and still accruing $ - $ - $ - $ - $ -
Nonaccrual loans 11,290 11,732 (C) 16,958 19,011 18,598
Other real estate owned 4,141 3,496 3,392 3,073 3,391
-------- ------- ------- ------- --------
Total nonperforming
assets $ 15,431 $15,228 (C) $20,350 $22,084 $ 21,989
======== ======= ======= ======= ========
Nonperforming loans to
total loans 0.97% 1.04% (C) 1.55% 1.72% 1.73%
Nonperforming assets to
total assets 0.94% 0.91% (C) 1.29% 1.40% 1.39%
Accruing TDR's (A) $ 5,986 $ 6,415 (C) $ 7,625 $ 7,647 $ 7,842
Loans past due 30 through
89 days and still
accruing $ 1,791 $ 3,786 $ 2,536 $ 2,836 $ 7,619
Classified loans (B) $ 35,945 $32,014 (C) $47,017 $47,102 $ 48,546
Impaired loans (B) $ 21,046 $18,147 (C) $24,584 $26,658 $ 26,568
Allowance for loan
losses:
Beginning of period $ 12,735 $13,893 $13,686 $13,496 $ 13,223
Provision for loan
losses 850 4,525 750 1,500 1,500
Charge-offs, net (306) (5,683) (543) (1,310) (1,227)
-------- ------- ------- ------- --------
End of period $ 13,279 $12,735 $13,893 $13,686 $ 13,496
======== ======= ======= ======= ========
ALLL to nonperforming
loans 117.62% 108.55% (C) 81.93% 71.99% 72.57%
ALLL to total loans 1.14% 1.12% (C) 1.27% 1.24% 1.25%
Capital Adequacy:
Tier I leverage 7.37% 7.27% 7.31% 7.15% 7.00%
Tier I capital to risk-
weighted assets 12.16% 11.83% 11.51% 11.27% 11.21%
Tier I & II capital to
risk-weighted assets 13.41% 13.08% 12.76% 12.52% 12.46%
Common equity to total
assets 7.62% 7.32% 7.42% 7.24% 7.04%
Book value per common
share $ 14.05 $ 13.87 $ 13.38 $ 13.02 $ 12.70
(A) Does not include $3.3 million at March 31, 2013, $2.9 million at
December 31, 2012, $5.7 million at September 30, 2012, $6.1 million at June
30, 2012 and $6.0 million at March 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
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
For the Three Months Ended
---------------------------------------------
March Sept June March
31, Dec 31, 30, 30, 31,
2013 2012 2012 2012 2012
-------- ------- ------- ------- --------
Income Statement Data:
Interest income $ 13,432 $13,792 $13,982 $14,102 $ 14,214
Interest expense 1,005 1,033 1,132 1,199 1,323
-------- ------- ------- ------- --------
Net interest income 12,427 12,759 12,850 12,903 12,891
Provision for loan losses 850 4,525 750 1,500 1,500
-------- ------- ------- ------- --------
Net interest income after
provision for loan losses 11,577 8,234 12,100 11,403 11,391
Trust fees 3,368 2,929 2,918 3,259 3,176
Other income 1,947 1,343 1,406 1,305 1,157
Securities gains, net 289 3,078 235 107 390
-------- ------- ------- ------- --------
Total other income 5,604 7,350 4,559 4,671 4,723
-------- ------- ------- ------- --------
Salaries and employee
benefits 7,079 8,045 7,029 6,408 6,113
Premises and equipment 2,304 2,433 2,290 2,413 2,331
FDIC insurance expense 280 267 299 290 352
Other expenses 2,630 2,808 2,375 2,593 2,284
-------- ------- ------- ------- --------
Total operating expenses 12,293 13,553 11,993 11,704 11,080
-------- ------- ------- ------- --------
Income before income taxes 4,888 2,031 4,666 4,370 5,034
Income tax expense 1,995 973 1,834 1,647 1,951
-------- ------- ------- ------- --------
Net income 2,893 1,058 2,832 2,723 3,083
Dividends and accretion on
preferred stock - - - - 474
-------- ------- ------- ------- --------
Net income available to
common shareholders $ 2,893 $ 1,058 $ 2,832 $ 2,723 $ 2,609
======== ======= ======= ======= ========
Per Common Share Data:
Earnings per share (basic) $ 0.33 $ 0.12 $ 0.32 $ 0.31 $ 0.30
Earnings per share (diluted) 0.32 0.12 0.32 0.31 0.30
Performance Ratios:
Return on average assets 0.71% 0.26% 0.72% 0.69% 0.78%
Return on average common
equity 9.40% 3.52% 9.77% 9.65% 9.47%
Net interest margin (Taxable
equivalent basis) 3.28% 3.42% 3.50% 3.52% 3.54%
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
For the
Three Months Ended
March 31,
2013 2012
--------- ---------
Income Statement Data:
Interest income $ 13,432 $ 14,214
Interest expense 1,005 1,323
--------- ---------
Net interest income 12,427 12,891
Provision for loan losses 850 1,500
--------- ---------
Net interest income after provision for loan losses 11,577 11,391
Trust fees 3,368 3,176
Other income 1,947 1,157
Securities gains, net 289 390
--------- ---------
Total other income 5,604 4,723
--------- ---------
Salaries and employee benefits 7,079 6,113
Premises and equipment 2,304 2,331
FDIC insurance expense 280 352
Other expenses 2,630 2,284
--------- ---------
Total operating expenses 12,293 11,080
--------- ---------
Income before income taxes 4,888 5,034
Income tax expense 1,995 1,951
--------- ---------
Net income 2,893 3,083
Dividends and accretion on preferred stock - 474
--------- ---------
Net income available to common shareholders $ 2,893 $ 2,609
========= =========
Per Common Share Data:
Earnings per share (basic) $ 0.33 $ 0.30
Earnings per share (diluted) 0.32 0.30
Performance Ratios:
Return on average assets 0.71% 0.78%
Return on average common equity 9.40% 9.47%
Net interest margin
(Tax equivalent basis) 3.28% 3.54%
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
March 31, 2013 March 31, 2012
------------------------- -------------------------
Average Income/ Average Income/
Balance Expense Yield Balance Expense Yield
---------- ------- ----- ---------- ------- -----
ASSETS:
Interest-Earning
Assets:
Investments:
Taxable (1) $ 248,641 $ 1,277 2.05% $ 350,306 $ 2,052 2.34%
Tax-exempt (1) (2) 49,749 325 2.61 49,843 381 3.06
Loans held for sale 16,890 196 4.63 1,602 23 5.60
Loans (2) (3) 1,143,056 11,738 4.11 1,052,960 11,917 4.53
Federal funds sold 101 - 0.10 100 - 0.10
Interest-earning
deposits 77,612 48 0.25 21,988 17 0.30
---------- ------- ----- ---------- ------- -----
Total interest-
earning assets 1,536,049 $13,584 3.54% 1,476,799 $14,390 3.90%
---------- ------- ----- ---------- ------- -----
Noninterest-Earning
Assets:
Cash and due from
banks 5,833 7,687
Allowance for loan
losses (13,075) (13,753)
Premises and
equipment 29,808 31,751
Other assets 75,111 78,781
---------- ----------
Total noninterest-
earning assets 97,677 104,466
---------- ----------
Total assets $1,633,726 $1,581,265
========== ==========
LIABILITIES:
Interest-Bearing
Deposits:
Checking $ 350,483 $ 79 0.09% $ 336,541 $ 113 0.13%
Money markets 552,863 214 0.15 516,357 304 0.24
Savings 110,662 14 0.05 94,732 29 0.12
Certificates of
deposit 176,551 500 1.13 193,992 596 1.23
---------- ------- ----- ---------- ------- -----
Total interest-
bearing deposits 1,190,559 807 0.27 1,141,622 1,042 0.37
Borrowings 12,139 92 3.03 37,237 172 1.85
Capital lease
obligation 8,936 106 4.74 9,145 109 4.77
---------- ------- ----- ---------- ------- -----
Total interest-
bearing liabilities 1,211,634 1,005 0.33 1,188,004 1,323 0.45
---------- ------- ----- ---------- ------- -----
Noninterest -Bearing
Liabilities:
Demand deposits 290,835 275,157
Accrued expenses and
other liabilities 8,107 6,407
---------- ----------
Total noninterest-
bearing liabilities 298,942 281,564
Shareholders' equity 123,150 111,697
---------- ----------
Total liabilities
and shareholders'
equity $1,633,726 $1,581,265
========== ==========
Net interest income $12,579 $13,067
======= =======
Net interest spread 3.21% 3.45%
===== =====
Net interest margin
(4) 3.28% 3.54%
===== =====
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
March 31, 2013 December 31, 2012
------------------------- -------------------------
Average Income/ Average Income/
Balance Expense Yield Balance Expense Yield
---------- ------- ----- ---------- ------- -----
ASSETS:
Interest-Earning
Assets:
Investments:
Taxable (1) $ 248,641 $ 1,277 2.05% $ 267,890 $ 1,423 2.12%
Tax-exempt (1) (2) 49,749 325 2.61 47,262 327 2.77
Loans held for sale 16,890 196 4.63 4,355 48 4.40
Loans (2) (3) 1,143,056 11,738 4.11 1,125,490 12,107 4.30
Federal funds sold 101 - 0.10 100 - 0.10
Interest-earning
deposits 77,612 48 0.25 66,942 41 0.24
---------- ------- ----- ---------- ------- -----
Total interest-
earning assets 1,536,049 $13,584 3.54% 1,512,039 $13,946 3.69%
---------- ------- ----- ---------- ------- -----
Noninterest-Earning
Assets:
Cash and due from
banks 5,833 6,885
Allowance for loan
losses (13,075) (14,020)
Premises and
equipment 29,808 30,350
Other assets 75,111 76,251
---------- ----------
Total noninterest-
earning assets 97,677 99,466
---------- ----------
Total assets $1,633,726 $1,611,505
========== ==========
LIABILITIES:
Interest-Bearing
Deposits:
Checking $ 350,483 $ 79 0.09% $ 346,373 $ 87 0.10%
Money markets 552,863 214 0.15 517,470 202 0.16
Savings 110,662 14 0.05 105,228 14 0.05
Certificates of
deposit 176,551 500 1.13 180,941 528 1.17
---------- ------- ----- ---------- ------- -----
Total interest-
bearing deposits 1,190,559 807 0.27 1,150,012 831 0.29
Borrowings 12,139 92 3.03 12,258 95 3.10
Capital lease
obligation 8,936 106 4.74 8,990 107 4.76
---------- ------- ----- ---------- ------- -----
Total interest-
bearing liabilities 1,211,634 1,005 0.33 1,171,260 1,033 0.35
---------- ------- ----- ---------- ------- -----
Noninterest -Bearing
Liabilities:
Demand deposits 290,835 311,920
Accrued expenses and
other liabilities 8,107 8,144
---------- ----------
Total noninterest-
bearing liabilities 298,942 320,064
Shareholders' equity 123,150 120,181
---------- ----------
Total liabilities
and shareholders'
equity $1,633,726 $1,611,505
========== ==========
Net interest income $12,579 $12,913
======= =======
Net interest spread 3.21% 3.34%
===== =====
Net interest margin
(4) 3.28% 3.42%
===== =====
Contact:
Jeffrey J. Carfora
EVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-719-4308