Peapack-Gladstone Financial Corporation Reports Results for the Third Quarter of 2013

BEDMINSTER, NJ--(Marketwired - Oct 21, 2013) - Peapack-Gladstone Financial Corporation (NASDAQ: PGC) (the "Corporation" or the "Company") recorded net income available to common shareholders of $6.87 million and diluted earnings per share of $0.76 for the nine months ended September 30, 2013. This compared to $8.16 million and $0.93, respectively, for the same nine month period last year.

The 2013 nine months included: 1) a $933 thousand compensation expense accrual related to certain staff restructurings, resulting in an after-tax charge of approximately $569 thousand or approximately six cents per fully diluted share; and 2) a $930 thousand write-down of an REO property, resulting in an after tax charge of approximately $595 thousand or approximately seven cents per diluted share.

For the quarter ended September 30, 2013, the Corporation recorded net income available to common shareholders of $1.96 million and diluted earnings per share of $0.22. This compared to $2.83 million and $0.32, respectively, for the same quarter last year.

The 2013 third quarter included the $933 thousand compensation expense accrual described above.

Doug Kennedy, President and CEO, said, "We had another quarter of solid accomplishment. Most importantly, we continued to implement and follow through on our Strategic Plan -- known as 'Expanding Our Reach.' As previously reported, this Plan 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 community based sales force that supports our branches and will serve as a primary point of contact for clients.

Mr. Kennedy went on to note the following additional highlights for the third quarter of 2013:

• Total revenue (net interest income plus other income) of $18.16 million for the September 2013 quarter reflected improvement when compared to $17.41 million for the September quarter of last year, and also reflected improvement when compared to $17.68 million for the immediately preceding June 2013 quarter.
• Total loan balances of $1.40 billion reached another record level for the Company. This level reflected an increase of 27 percent from the end of September 2012 and an increase of nearly 23 percent (or over 31 percent on an annualized basis) from year end 2012.
• The Company's net interest income of $13.37 million for the September 2013 quarter reflected improvement when compared to $12.85 million for the September quarter of last year, and also reflected improvement when compared to $12.45 million for the immediately preceding June 2013 quarter.
• Fee income from the Trust & Investment Division of $3.30 million for the September 2013 quarter reflected growth of nearly 13 percent when compared to the same quarter last year.
• At September 30, 2013, the market value of assets under administration at Peapack-Gladstone Bank's Trust & Investment Division was $2.58 billion. This level reflected an increase of 20 percent from the end of September 2012 and an increase of 12 percent (or 16 percent on an annualized basis) from year end 2012.
• Asset quality continues to be strong and improved when compared to prior periods. For example, nonperforming assets declined in both dollars and as a percentage of assets, to just 0.54 percent of total assets as of September 30, 2013.
• The book value per share at September 30, 2013 of $14.12 reflected improvement when compared to one year ago, despite the negative impact to GAAP capital of the mark-to-market of the investment portfolio available for sale, due to the rise in market interest rates.
• The tier I leverage and the total risk-based regulatory capital ratios remained strong at 7.20 percent and 12.55 percent, and only declined slightly compared to year ago, even with over $200 million growth in assets, as well as migration of lower risk weighted investment security cash flows into loans.

Net Interest Income and Margin

 Net interest income was $13.37 million for the third quarter of 2013, reflecting an increase of $523 thousand from the same quarter last year. The net interest margin, on a fully tax-equivalent basis, was 3.28 percent for the September 2013 quarter compared to 3.50 percent for the September 2012 quarter.

 Net interest income for the current 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 current 2013 quarter declined when compared to the same quarter last year due to the effect of low market yields, which compressed asset yields more than deposit costs. Partially offsetting this effect, net interest margin benefitted in the current quarter from the positive effect of increased loans funded by deposits and cash flows from lower yielding investment securities and interest earning cash balances.

Loans

For the third quarter of 2013, average loans totaled $1.32 billion as compared to $1.10 billion for the same quarter in 2012, reflecting an increase of $224 million, or 20 percent.

The average commercial mortgage and commercial loan portfolio for the quarter ended September 2013 increased $206 million, or 41 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 loans at September 30, 2013 grew $300 million or 27 percent when compared to total loans at September 30, 2012.

Total loan originations were $255 million for the third quarter of 2013, up significantly from $81 million for the same quarter of 2012. Loan originations were $536 million for the first nine months of 2013, also up significantly from $281 million for the same nine month period of 2012. Included in the total were commercial mortgage (principally multifamily) / commercial loan originations of $349 million and $201 million for the 2013 nine months and quarter, respectively, compared to only $95 million and $22 million for the 2012 periods, respectively.

Mr. Kennedy said, "We continue to be successful in generating solid lending growth. As part of our Strategic Plan, we introduced a comprehensive Commercial & Industrial (C&I) lending program and we have closed $44 million of volume so far this year. We expect such volume to continue to increase in future periods. Further, our multifamily lenders have generated significant closed volume and continue to maintain very robust pipelines."

Deposits

For the September 2013 quarter, average total deposits (interest-bearing and noninterest-bearing) increased $113 million 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 third 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.

Total deposits at September 30, 2013 increased $140 million, or nearly 10 percent from September 30, 2012. The Company continues to successfully focus on:

• Business and personal relationships;
• Municipal relationships within its market territory; and
• Growth in deposits associated with its lending activities.

Mr. Kennedy commented, "I continue to believe that our focus on providing high touch client service and our strong and valuable core deposit base are key differentiators for us as we grow our business." Additionally, as previously announced, Anthony V. Bilotta, Jr. has joined the Company as Executive Vice President, Head of Retail Banking and Marketing. Anthony joins us with over 30 years of industry experience.

Peapack-Gladstone Bank Trust & Investments

In the third quarter of 2013, Peapack-Gladstone Bank Trust & Investments generated $3.30 million in fee income compared to $2.92 million for the third quarter of 2012, reflecting growth of 13 percent. The market value of the assets under administration (AUA) of the wealth management division was $2.58 billion at September 30, 2013, up from $2.30 billion at December 31, 2012 and $2.15 billion reported at September 30, 2012. 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, "The wealth management business adds significant value to our Company, and differentiates us from many of our competitors. Conversations with all clients and potential clients across all lines of business include a wealth discussion."

Other Noninterest Income

In the September 2013 quarter, other noninterest income, exclusive of trust fees and securities gains, totaled $1.30 million, reflecting a decrease of $107 thousand or 8 percent when compared to the same quarter a year ago. The third quarter of 2013 included $277 thousand of income from the sale of newly originated residential mortgage loans, down from $358 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 for the quarter. A reduced level of mortgage banking income is expected in the foreseeable future. Mortgage banking income is not a significant portion of revenue (only 2 percent of total revenue for the nine months ended September 30, 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 Treasury Management services/products, which will contribute to non-interest income in the future."

Operating Expenses

The Company's total operating expenses were $14.17 million for the third quarter of 2013 compared to $11.99 million in the same 2012 quarter. The 2013 quarter included the previously mentioned $933 thousand compensation expense accrual related to certain staff restructurings. Excluding this expense accrual, salary and benefits expense rose $965 thousand 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 total 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. And we expect that the trend of higher operating expenses will continue in the future in line with our Strategic Plan. Further, we generally expect revenue and profitability related to those increased expenses to lag those expenses by several quarters. It is important to note, however, that we did see an improvement in revenue in this current quarter relative to the June 2013 quarter, as well as the September 2012 quarter."

Provision for Loan Losses / Asset Quality

For the quarter ended September 30, 2013, the Company's provision for loan losses was $750 thousand compared to the same amount of provision recorded in the third quarter of 2012. Charge-offs, net of recoveries, for the third quarter of 2013 were $132 thousand compared to $543 thousand for the September 2012 quarter. At September 30, 2013 the allowance for loan losses was 204 percent of nonperforming loans and 1.01 percent of total loans.

Nonperforming assets totaled $9.7 million or just 0.54 percent of total assets at September 30, 2013 compared to $20.4 million or 1.29 percent of assets at September 30, 2012. The 0.54 percent nonperforming asset ratio, at September 30, 2013, compares favorably to a 1.20 percent weighted average for all Mid-Atlantic banks.

Capital / Dividends

At September 30, 2013, the Company's leverage ratio, tier 1 and total risk based capital ratios were 7.20 percent, 11.30 percent and 12.55 percent, respectively. The Company's ratios are all above the levels necessary to be considered well-capitalized under regulatory guidelines applicable to banks. The Company's common equity ratio (common equity to total assets) at September 30, 2013 was 7.03 percent of total assets, only down slightly when compared to 7.32 percent at December 31, 2012 and still strong, despite the negative impact to GAAP capital of the September 30, 2013 mark-to-market of the investment portfolio available for sale, due to the rise in market interest rates.

On October 17, 2013, the Board of Directors declared a regular cash dividend of $0.05 per share payable on November 14, 2013 to shareholders of record on October 31, 2013.

As previously announced, on April 19, 2013 the Company filed a Form S-3 Registration Statement registering $50 million in securities, to be issued in the future from time to time at indeterminate prices ("Shelf Registration"). This Shelf Registration was filed to enable the Company to efficiently take advantage of the capital markets from time to time in the future, as needed to support growth associated with its Strategic Plan.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.80 billion as of September 30, 2013. Established in 1921, Peapack-Gladstone Bank is a commercial bank that offers a full range of quality products and services to businesses, non-profits and consumers through its New Jersey locations, online access, a wealth management division, and its subsidiary, PGB Trust & Investments of Delaware. For additional information about Peapack-Gladstone Bank or to open an account online, visit www.pgbank.com or call 908-234-0700. Member FDIC. Equal Housing Lender.

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
				Sept 30,			June 30,			March 31,			Dec 31,			Sept 30,
				2013			2013			2013			2012			2012
ASSETS
Cash and due from banks				$	5,886		$	5,978		$	5,030		$	6,733		$	5,466
Federal funds sold					101			101			100			100			100
Interest-earning deposits					33,528			60,783			94,147			112,395			49,354
	Total cash and cash equivalents				39,515			66,862			99,277			119,228			54,920
Securities held to maturity					-			-			-			-			76,698
Securities available for sale					273,952			270,334			283,448			304,479			253,489
FHLB and FRB Stock, at cost					7,707			4,729			4,643			4,639			4,639
Loans held for sale, at fair value					724			4,684			1,828			6,461			8,443
Loans held for sale, at lower of cost or fair value					-			-			-			13,749			-
Residential mortgage					527,927			532,356			523,051			515,014			504,407
Commercial mortgage					680,762			534,371			455,670			420,086			391,976
Commercial loans					110,843			106,598			105,305			115,372			115,602
Construction loans					8,390			9,179			9,180			9,328			9,639
Consumer loans					19,932			19,552			20,782			21,188			21,542
Home equity lines of credit					47,020			47,583			46,778			49,635			51,440
Other loans					2,075			2,545			997			1,961			1,876
	Total loans				1,396,949			1,252,184			1,161,763			1,132,584			1,096,482
	Less: Allowance for loan losses				14,056			13,438			13,279			12,735			13,893
	Net loans				1,382,893			1,238,746			1,148,484			1,119,849			1,082,589
Premises and equipment					29,022			29,021			29,429			30,030			30,472
Other real estate owned					2,759			3,347			4,141			3,496			3,392
Accrued interest receivable					4,017			3,972			3,768			3,864			4,040
Bank owned life insurance					31,691			31,490			31,283			31,088			30,887
Deferred tax assets, net					7,951			8,608			10,384			9,478			25,861
Other assets					17,473			17,797			18,647			21,475			8,060
	TOTAL ASSETS			$	1,797,704		$	1,679,590		$	1,635,332		$	1,667,836		$	1,583,490
LIABILITIES
Deposits:
	Noninterest-bearing demand deposits			$	345,736		$	326,916		$	307,730		$	298,095		$	306,711
	Interest-bearing deposits
		Checking			338,626			352,196			336,934			346,877			332,786
		Savings			115,571			115,823			114,804			109,686			103,572
		Money market accounts			611,498			559,439			547,302			583,197			504,863
		CD's $100,000 and over			62,136			65,607			67,902			68,741			72,168
		CD's less than $100,000			98,996			102,945			106,432			109,831			112,586
	Total deposits				1,572,563			1,522,926			1,481,104			1,516,427			1,432,686
Overnight borrowings					30,361			-			-			-			-
Federal home loan bank advances					47,692			12,000			12,099			12,218			12,335
Capital lease obligation					8,809			8,864			8,918			8,971			9,024
Other Liabilities					11,861			11,687			8,605			8,163			11,967
	TOTAL LIABILITIES				1,671,286			1,555,477			1,510,726			1,545,779			1,466,012
Shareholders' equity					126,418			124,113			124,606			122,057			117,478
	TOTAL LIABILITIES AND
		SHAREHOLDERS' EQUITY		$	1,797,704		$	1,679,590		$	1,635,332		$	1,667,836		$	1,583,490
Assets under administration at Peapack-Gladstone Bank Trust & Investments (market value, not included above)				$	2,581,813		$	2,520,424		$	2,544,465		$	2,303,612		$	2,146,920

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
			As of
			Sept 30,				June 30,				March 31,				Dec 31,							Sept 30,
			2013				2013				2013				2012							2012
Asset Quality:
Loans past due over 90 days and still accruing			$	-			$	-			$	-			$	-						$	-
Nonaccrual loans				6,891				8,075				11,290				11,732			(C	)			16,958
Other real estate owned				2,759				3,347				4,141				3,496							3,392
	Total nonperforming assets		$	9,650			$	11,422			$	15,431			$	15,228			(C	)		$	20,350
Nonperforming loans to total loans				0.49	%			0.64	%			0.97	%			1.04	%		(C	)			1.55	%
Nonperforming assets to total assets				0.54	%			0.68	%			0.94	%			0.91	%		(C	)			1.29	%
Accruing TDR's (A)			$	6,133			$	6,131			$	5,986			$	6,415			(C	)		$	7,625
Loans past due 30 through 89 days and still accruing			$	2,039			$	1,544			$	1,791			$	3,786						$	2,536
Classified loans (B)			$	32,430			$	32,123			$	35,945			$	32,014			(C	)		$	47,017
Impaired loans (B)			$	16,794			$	17,977			$	21,046			$	18,147			(C	)		$	24,584
Allowance for loan losses:
	Beginning of period		$	13,438			$	13,279			$	12,735			$	13,893						$	13,686
	Provision for loan losses			750				500				850				4,525							750
	Charge-offs, net			(132	)			(341	)			(306	)			(5,683	)						(543	)
	End of period		$	14,056			$	13,438			$	13,279			$	12,735						$	13,893
ALLL to nonperforming loans				203.98	%			166.41	%			117.62	%			108.55	%		(C	)			81.93	%
ALLL to total loans				1.01	%			1.07	%			1.14	%			1.12	%		(C	)			1.27	%
Capital Adequacy:
Tier I leverage				7.20	%			7.39	%			7.37	%			7.27	%						7.31	%
Tier I capital to risk-weighted assets				11.30	%			11.84	%			12.16	%			11.83	%						11.51	%
Tier I & II capital to risk-weighted assets				12.55	%			13.09	%			13.41	%			13.08	%						12.76	%
Common equity to total assets				7.03	%			7.39	%			7.62	%			7.32	%						7.42	%
Book value per common share			$	14.12			$	13.93			$	14.05			$	13.87						$	13.38

 

(A)		Does not include $3.3 million at September 30, 2013, $3.3 million at June 30, 2013, $3.3 million at March 31, 2013, $2.9 million at December 31, 2012 and $5.7 million at September 30, 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
			Sept 30,			June 30,			March 31,			Dec 31,			Sept 30,
			2013			2013			2013			2012			2012
Residential loans retained			$	31,517		$	37,352		$	31,430		$	34,699		$	24,334
Residential loans sold				13,516			26,651			25,402			20,677			28,046
Total residential loans				45,033			64,003			56,832			55,376			52,380
CRE/multifamily				173,692			88,675			42,608			52,925			20,775
Commercial loans				27,525			6,170			9,930			2,150			1,000
Small business banking & Installment loans				4,710			2,866			2,693			2,657			3,677
Home equity lines of credit				3,982			2,619			4,452			2,501			3,346
	Total loan originations		$	254,942		$	164,333		$	116,515		$	115,609		$	81,178

 

			For the Nine Months Ended
			Sept 30,			Sept 30,
			2013			2012
Residential loans retained			$	100,299		$	105,805
Residential loans sold				65,569			59,060
Total residential loans				165,868			164,865
CRE/multifamily				304,975			90,611
Commercial loans				43,625			4,610
Small business banking & Installment loans				10,269			10,016
Home equity lines of credit				11,053			10,959
	Total loan originations		$	535,790		$	281,061

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
			For the Three Months Ended
			Sept 30,				June 30,				March 31,				Dec 31,				Sept 30,
			2013				2013				2013				2012				2012
Income Statement Data:
Interest income			$	14,423			$	13,460			$	13,432			$	13,792			$	13,982
Interest expense				1,050				1,012				1,005				1,033				1,132
	Net interest income			13,373				12,448				12,427				12,759				12,850
Provision for loan losses				750				500				850				4,525				750
	Net interest income after provision for loan losses			12,623				11,948				11,577				8,234				12,100
Trust fees				3,295				3,628				3,368				2,929				2,918
Gain on sale of classified loans				-				-				522				-				-
Gain on loans sold (Mortgage Banking)				277				412				470				370				358
Other income				1,022				958				955				973				1,048
Securities gains, net				188				238				289				3,078				235
	Total other income			4,782				5,236				5,604				7,350				4,559
Salaries and employee benefits				8,927				7,935				7,079				8,045				7,029
Premises and equipment				2,325				2,338				2,304				2,433				2,290
FDIC insurance expense				275				280				280				267				299
Other expenses				2,638				3,526				2,630				2,808				2,375
	Total operating expenses			14,165				14,079				12,293				13,553				11,993
Income before income taxes				3,240				3,105				4,888				2,031				4,666
Income tax expense				1,276				1,096				1,995				973				1,834
Net income				1,964				2,009				2,893				1,058				2,832
Dividends and accretion on preferred stock				-				-				-				-				-
Net income available to common shareholders			$	1,964			$	2,009			$	2,893			$	1,058			$	2,832
Per Common Share Data:
Earnings per share (basic)			$	0.22			$	0.23			$	0.33			$	0.12			$	0.32
Earnings per share (diluted)				0.22				0.22				0.32				0.12				0.32
Performance Ratios:
Return on average assets				0.45	%			0.48	%			0.71	%			0.26	%			0.72	%
Return on average common equity				6.28	%			6.41	%			9.40	%			3.52	%			9.77	%
Net interest margin
	(Taxable equivalent basis)			3.28	%			3.22	%			3.28	%			3.42	%			3.50	%

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
			For the
			Nine Months Ended
			September 30,
			2013				2012
Income Statement Data:
Interest income			$	41,315			$	42,298
Interest expense				3,067				3,654
	Net interest income			38,248				38,644
Provision for loan losses				2,100				3,750
	Net interest income after provision for loan losses			36,148				34,894
Trust fees				10,291				9,353
Gain on loans sold (Mortgage Banking)				1,138				825
Other income				3,478				3,043
Securities gains, net				715				732
	Total other income			15,622				13,953
Salaries and employee benefits				23,941				19,550
Premises and equipment				6,967				7,034
FDIC insurance expense				835				941
Other expenses				8,794				7,252
	Total operating expenses			40,537				34,777
Income before income taxes				11,233				14,070
Income tax expense				4,367				5,432
Net income				6,866				8,638
Dividends and accretion on preferred stock				-				474
Net income available to common shareholders			$	6,866			$	8,164
Per Common Share Data:
Earnings per share (basic)			$	0.77			$	0.93
Earnings per share (diluted)				0.76				0.93
Performance Ratios:
Return on average assets				0.55	%			0.73	%
Return on average common equity				7.35	%			9.63	%
Net interest margin
	(Tax equivalent basis)			3.26	%			3.52	%

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
				September 30, 2013										September 30, 2012
				Average				Income/						Average				Income/
				Balance				Expense			Yield			Balance				Expense			Yield
ASSETS:
Interest-Earning Assets:
	Investments:
		Taxable (1)		$	237,559			$	1,141		1.92	%		$	284,440			$	1,787		2.51	%
		Tax-exempt (1) (2)			54,465				328		2.41				44,481				322		2.90
	Loans held for sale				1,617				21		5.27				2,829				34		4.77
	Loans (2) (3)				1,322,842				13,065		3.95				1,098,857				11,965		4.36
	Federal funds sold				101				-		0.10				100				-		0.10
	Interest-earning deposits				35,168				21		0.24				53,560				27		0.20
	Total interest-earning assets				1,651,752			$	14,576		3.53	%			1,484,267			$	14,135		3.81	%
Noninterest-Earning Assets:
	Cash and due from banks				5,962										5,611
	Allowance for loan losses				(13,615	)									(14,005	)
	Premises and equipment				28,984										30,820
	Other assets				65,163										77,232
		Total noninterest-earning assets			86,494										99,658
Total assets				$	1,738,246									$	1,583,925
LIABILITIES:
Interest-Bearing Deposits:
	Checking			$	349,392			$	73		0.08	%		$	334,982			$	89		0.11	%
	Money markets				580,819				275		0.19				503,180				259		0.21
	Savings				115,711				15		0.05				104,273				14		0.05
	Certificates of deposit				165,347				444		1.07				188,568				550		1.17
		Total interest-bearing deposits			1,211,269				807		0.27				1,131,003				912		0.32
	Borrowings				45,149				138		1.22				15,281				113		2.96
	Capital lease obligation				8,828				105		4.76				9,043				107		4.73
	Total interest-bearing liabilities				1,265,246				1,050		0.33				1,155,327				1,132		0.39
Noninterest-Bearing Liabilities:
	Demand deposits				337,684										305,192
	Accrued expenses and other liabilities				10,241										7,434
	Total noninterest-bearing liabilities				347,925										312,626
Shareholders' equity					125,075										115,972
	Total liabilities and shareholders' equity			$	1,738,246									$	1,583,925
Net interest income								$	13,526									$	13,003
	Net interest spread										3.20	%									3.42	%
	Net interest margin (4)										3.28	%									3.50	%

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
				September 30, 2013										June 30, 2013
				Average				Income/						Average				Income/
				Balance				Expense			Yield			Balance				Expense			Yield
ASSETS:
Interest-Earning Assets:
	Investments:
		Taxable (1)		$	237,559			$	1,141		1.92	%		$	220,954			$	1,085		1.96	%
		Tax-exempt (1) (2)			54,465				328		2.41				50,479				322		2.55
	Loans held for sale				1,617				21		5.27				2,512				50		8.12
	Loans (2) (3)				1,322,842				13,065		3.95				1,199,235				12,087		4.03
	Federal funds sold				101				-		0.10				101				-		0.10
	Interest-earning deposits				35,168				21		0.24				92,319				66		0.29
	Total interest-earning assets				1,651,752			$	14,576		3.53	%			1,565,600			$	13,610		3.48	%
Noninterest-Earning Assets:
	Cash and due from banks				5,962										5,865
	Allowance for loan losses				(13,615	)									(13,523	)
	Premises and equipment				28,984										29,248
	Other assets				65,163										71,862
		Total noninterest-earning assets			86,494										93,452
Total assets				$	1,738,246									$	1,659,052
LIABILITIES:
Interest-Bearing Deposits:
	Checking			$	349,392			$	73		0.08	%		$	356,060			$	74		0.08	%
	Money markets				580,819				275		0.19				551,150				239		0.17
	Savings				115,711				15		0.05				114,028				15		0.05
	Certificates of deposit				165,347				444		1.07				171,931				486		1.13
		Total interest-bearing deposits			1,211,269				807		0.27				1,193,169				814		0.27
	Borrowings				45,149				138		1.22				12,025				92		3.06
	Capital lease obligation				8,828				105		4.76				8,884				106		4.77
	Total interest-bearing liabilities				1,265,246				1,050		0.33				1,214,078				1,012		0.33
Noninterest-Bearing Liabilities:
	Demand deposits				337,684										311,227
	Accrued expenses and other liabilities				10,241										8,298
	Total noninterest-bearing liabilities				347,925										319,525
Shareholders' equity					125,075										125,449
	Total liabilities and shareholders' equity			$	1,738,246									$	1,659,052
Net interest income								$	13,526									$	12,598
	Net interest spread										3.20	%									3.15	%
	Net interest margin (4)										3.28	%									3.22	%

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
NINE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
				September 30, 2013										September 30, 2012
				Average				Income/						Average				Income/
				Balance				Expense			Yield			Balance				Expense			Yield
ASSETS:
Interest-Earning Assets:
	Investments:
		Taxable (1)		$	235,677			$	3,503		1.98	%		$	315,589			$	5,609		2.37	%
		Tax-exempt (1) (2)			51,582				974		2.52				46,619				1,036		2.96
	Loans held for sale				6,950				268		5.14				1,859				75		5.37
	Loans (2) (3)				1,222,369				36,889		4.02				1,084,357				36,005		4.43
	Federal funds sold				101				-		0.10				100				-		0.10
	Interest-earning deposits				68,211				135		0.26				32,694				58		0.24
		Total interest-earning assets			1,584,890			$	41,769		3.51	%			1,481,218			$	42,783		3.85	%
Noninterest-Earning Assets:
	Cash and due from banks				5,887										6,378
	Allowance for loan losses				(13,406	)									(13,916	)
	Premises and equipment				29,344										31,284
	Other assets				70,674										77,323
		Total noninterest-earning assets			92,499										101,069
Total assets				$	1,677,389									$	1,582,287
LIABILITIES:
Interest-Bearing Deposits:
	Checking			$	351,975			$	225		0.09	%		$	332,822			$	292		0.12	%
	Money markets				561,713				729		0.17				508,337				820		0.22
	Savings				113,486				44		0.05				99,671				56		0.07
	Certificates of deposit				171,235				1,430		1.11				191,596				1,709		1.19
		Total interest-bearing deposits			1,198,409				2,428		0.27				1,132,426				2,877		0.34
	Borrowings				23,226				322		1.85				29,649				453		2.04
	Capital lease obligation				8,882				317		4.76				9,094				324		4.75
	Total interest-bearing liabilities				1,230,517				3,067		0.33				1,171,169				3,654		0.42
Noninterest-Bearing Liabilities:
	Demand deposits				313,420										290,988
	Accrued expenses and other liabilities				8,887										6,592
	Total noninterest-bearing liabilities				322,307										297,580
Shareholders' equity					124,565										113,538
	Total liabilities and shareholders' equity			$	1,677,389									$	1,582,287
Net interest income								$	38,702									$	39,129
	Net interest spread										3.18	%									3.43	%
	Net interest margin (4)										3.26	%									3.52	%