GLADSTONE, N.J.--(BUSINESS WIRE)--
Peapack-Gladstone Financial Corporation (NASDAQ Global Select
Market:PGC) (the Corporation) recorded net income for the nine
months ended September 30, 2009 of $5.7 million compared to $10.6
million for the same nine month period of 2008. For the nine months of
2009, diluted earnings per common share after effect of the preferred
stock dividend were $0.53 as compared to diluted earnings per common
share of $1.20 for the same nine months of 2008.
For the third quarter of 2009, the Corporation recorded net income of
$1.3 million compared to $3.5 million for the 2008 quarter. For the 2009
quarter, diluted earnings per common share after effect of the preferred
stock dividend were $0.10 as compared to diluted earnings per common
share of $0.40 for the same quarter of 2008.
The decrease in earnings per share for both the nine month and quarter
periods was primarily due to an increase in the provision for loan
losses, an increase in the provision for losses on OREO (Other Real
Estate Owned), an increase in the industry-wide FDIC assessment and the
dividends on preferred stock.
The Corporation recorded a provision for loan losses of $2.8 million in
the third quarter of 2009 compared to $780 thousand for the same period
in 2008. Additionally, a provision for losses on OREO of $375 thousand,
associated with a contract for sale, was recorded during the 2009
quarter - there was no such provision in the 2008 quarter. Due to a
substantial increase in the FDIC assessment rates, total FDIC assessment
expense of $724 thousand was recorded for the third quarter of 2009 as
compared to $211 thousand for the same period in 2008. Dividends and
accretion on preferred stock totaled $430 thousand for the quarter ended
September 30, 2009. There was no such charge last year as the preferred
stock was issued in January 2009 as a result of the Corporation's
participation in the U.S. Treasury's Capital Purchase Program.
Frank A. Kissel, Chairman and CEO, stated, "We are pleased to have
reported positive earnings and generate capital in excess of dividends
this quarter, despite the significant impact the recession has had on
financial institutions and their borrowers." Mr. Kissel went on to say,
"While our non-performing assets have increased, we have not seen the
same significant deterioration as many other institutions because of our
conservative underwriting and diligence in managing our loan portfolio.
Further, we are pleased with the progress we have made in resolving
certain problem assets over the quarter."
Net Interest Income and Margin
In the third quarter of 2009, net interest income, on a fully
tax-equivalent basis, was $12.5 million, an increase of $74 thousand or
0.60 percent from the same quarter last year. The effect of growth in
overall interest earning assets funding by growth in core deposits
contributed to improved net interest income.
On a fully tax-equivalent basis, the net interest margin was 3.61
percent and 3.92 percent for the third quarters of 2009 and 2008,
respectively. The effect of growth in lower yielding, but less risky and
shorter duration interest-earning cash deposits and investment
securities coupled with declining loan balances, partially offset by the
effect of growth in lower costing core deposits, contributed to the
reduced margin.
Loans
Average loans totaled $1.01 billion for the third quarter of 2009 as
compared to $1.02 billion for the same 2008 quarter, reflecting a
decrease of $10.4 million or 1.0 percent. The average residential
mortgage loan portfolio declined $31.9 million or 6.3 percent to $472.8
million, as the Corporation has opted to sell its longer-term,
fixed-rate production as an interest rate risk management strategy in
the lower rate environment, and loan payments have outpaced originations
put into portfolio.
For the quarterly period ending September 30, 2009 compared to the same
quarterly period in 2008, the average commercial mortgage portfolio grew
$12.3 million or 4.7 percent to $273.0 million; the average commercial
construction loan portfolio was $67.2 million, an increase of $13.4
million or 24.9 percent; and the average home equity loan portfolio rose
$10.8 million or 42.5 percent to $36.2 million. The Corporation focused
on the origination of these higher-yielding, shorter-maturity loans and
loan originations outpaced principal paydowns over the year.
In comparing balances at September 30, 2009 to balances at December 31,
2008, the decline in the Corporation's loan portfolio has been in not
only the residential mortgage loan portfolio for the same reasons
described above, but also in the commercial and construction loan
portfolios, as loan demand and quality borrowers on these fronts have
been scarce during 2009.
Deposits
Average deposits grew 11.2 percent from $1.18 billion in the third
quarter of 2008 to $1.31 billion in the third quarter of 2009. Average
interest-bearing checking balances totaled $216.6 million in the third
quarter of 2009, rising $70.0 million or 47.7 percent from the same
quarter in 2008 due to the Corporation's focus on core deposit growth
coupled with the introduction of the Ultimate Checking product, which
provides customers with a low-cost checking product and a higher yield
for larger balances. Average money market accounts also rose from $397.8
million in the third quarter of 2008 to $445.8 million for the same
quarter of 2009, an increase of $48.1 million or 12.1 percent, as
certain customers tend to "park" funds in money market accounts in the
lower interest rate environment.
In comparing balances at September 30, 2009 to balances at December 31,
2008, lower costing interest-bearing checking accounts and money market
accounts have continued to increase, but higher costing certificates of
deposit have declined. The Corporation has opted not to pay higher rates
on maturing certificates of deposit, as the Corporation has ample
liquidity from core deposit growth and principal pay downs on loans.
Mr. Kissel commented, "Our core funding growth has reduced our overall
cost of funds, contributed to our profitability and enhanced the value
of our franchise."
PGB Trust and Investments
PGB Trust and Investments generated $2.2 million in fee income in the
third quarter of 2009, a decrease of $289 thousand or 11.6 percent over
the same quarter of 2008. The decrease reflects the lower market values
on assets under management, due to the recession, on which investment
management fees are based, as well as reduction of certain fees earned
on placement of funds in money market instruments, due to the reduced
interest rate environment.
Other Income
For the third quarter of 2009, other income totaled $1.1 million as
compared to $964 thousand for the same quarter of 2008, rising $173
thousand, or 18.0 percent. Income earned on the sale of mortgage loans
at origination increased $176 thousand to $200 thousand in the third
quarter of 2009 from $24 thousand in the same 2008 period. More
customers have been interested in longer-term, fixed-rate mortgages in
the current low rate environment. These mortgages are sold rather than
retained in portfolio for interest rate risk management purposes. Income
from Bank-Owned Life Insurance, resulting from the increase in cash
surrender value, declined $53 thousand or 18.1 percent to $240 thousand
for the third quarter of 2009 as compared to the third quarter of 2008
due primarily to the lower interest rate environment.
Other Expenses
The Corporation's other expenses were $10.9 million in the third quarter
of 2009 compared to $9.6 million for the same quarter of 2008, an
increase of $1.3 million or 14.1 percent. A large portion of this
increase was due to an increase in the industry-wide FDIC assessment.
Due to a substantial increase in the FDIC assessment rates, total FDIC
assessment expense of $724 thousand was recorded for the third quarter
of 2009 as compared to $211 thousand for the same period in 2008. Salary
and benefit expense in the third quarters of 2009 and 2008 was $5.6
million and $5.5 million, respectively, increasing by $113 thousand or
2.1 percent. In addition to salary increases, the Corporation added
staff for several new branches/offices. In addition, during the third
quarter of 2009, the Corporation recorded a provision for losses on OREO
of $375 thousand, associated with a contract for sale. There was no such
provision in the 2008 quarter.
ASSET QUALITY
At September 30, 2009, non-performing assets totaled $14.9 million or
1.00 percent of total assets as compared to $6.6 million or 0.48 percent
of total assets at December 31, 2008 and $5.0 million or 0.37 percent of
total assets at September 30, 2008. Non-performing loans have increased
during the first nine months of 2009 primarily due to two construction
loans to one borrower totaling $6.0 million and one large residential
loan totaling $2.1 million. Both borrowers were affected by the current
economic downturn. Although both borrowers continued to make interest
payments on these loans through August 2009, they have been on
non-accrual status and $868 thousand in charge-offs have been recorded
in 2009 related to these loans.
As noted earlier in the release, Mr. Kissel indicated he was pleased
with the progress made in resolving certain problem assets over the
quarter. He went on to say, "During the quarter, the property securing a
$2.1 million residential loan and the note related to a $600 thousand
commercial mortgage loan, have both gone under contract for sale, with
closings expected during the fourth quarter. Further, a $2.6 million
loan relationship was upgraded with new ownership and management, as
well as an injection of capital."
Mr. Kissel went on to say, "We continue to proactively manage our loan
portfolios in this economic environment in an effort to identify and
stay ahead of potential problems. We are well capitalized and we are
ready to lend to well-qualified individuals and businesses. However, we
remain committed to our conservative underwriting standards that have
served us well and will continue to serve us well in the future."
The allowance for loan losses was $12.9 million or 1.28 percent of total
loans at September 30, 2009 as compared to $9.7 million or 0.92 percent
of total loans at December 31, 2008 and $9.1 million or 0.88 percent of
total loans at September 30, 2008.
The provision for loan losses for the third quarter of 2009 was $2.8
million as compared to $780 thousand for the same quarter of 2008.
Management has determined that a higher provision is warranted because
of the increase in non-performing loans and the continued weakness in
the housing markets and the overall economy.
CAPITAL
At September 30, 2009, the Corporation's leverage ratio, tier 1 and
total risk based capital ratios were 8.17 percent, 12.23 percent and
13.48 percent, respectively. These capital ratios are well above the
minimum levels to be considered well capitalized under applicable
regulatory guidelines. Additionally, the Corporation's common equity
ratio (common equity to total assets) at September 30, 2009 stands at a
healthy 6.17 percent. Mr. Kissel noted, "Building capital and remaining
well capitalized and paying back the funds from the Treasury's Capital
Purchase Program, continue to be important business objectives."
As previously announced, on October 15, 2009 the Board of Directors
declared a regular cash dividend of $0.05 per share payable on November
13, 2009 to shareholders of record on October 29, 2009.
ABOUT THE CORPORATION
Peapack-Gladstone Financial Corporation is a bank holding company with
total assets of $1.49 billion as of September 30, 2009.
Peapack-Gladstone Bank, its wholly owned community bank, was established
in 1921, and has 24 branches in Somerset, Hunterdon, Morris, Middlesex
and Union Counties. Its Trust Division, PGB Trust and Investments,
operates at the Bank's main office located at 190 Main Street in
Gladstone and at four other locations in Clinton, Morristown and Summit,
New Jersey and Bethlehem, Pennsylvania. To learn more about
Peapack-Gladstone Financial Corporation and its services please visit
our web site at www.pgbank.com
or call 908-234-0700.
The foregoing contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements
are not historical facts and include expressions about management's
confidence and strategies and management's expectations about new and
existing programs and products, investments, relationships,
opportunities and market conditions. These statements may be identified
by such forward-looking terminology as "expect", "look", "believe",
"anticipate", "may", or similar statements or variations of such terms.
Actual results may differ materially from such forward-looking
statements. Factors that may cause results to differ materially from
such forward-looking statements include, but are not limited to, those
risk factors set forth in the "Risk Factor" section of our Annual Report
on Form 10-K for the year ended December 31, 2008 and subsequent Forms
10-Q. Peapack-Gladstone assumes no obligation for updating any such
forward-looking statements at any time.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in thousands)
(Unaudited)
As of
September June 30, March 31, December September
30, 31, 30,
2009 2009 2009 2008 2008
ASSETS
Cash and due $ 9,343 $ 50,921 $ 20,525 $ 25,686 $ 28,108
from banks
Federal funds 200 200 201 200 125
sold
Interest-earning 46,876 513 59,063 1,003 3,265
deposits
Total cash and 56,419 51,634 79,789 26,889 31,498
cash equivalents
Securities held 86,703 77,216 48,379 51,731 86,327
to maturity
Securities
available for 252,786 227,414 178,676 173,543 146,125
sale
FHLB and FRB 5,329 5,343 4,202 4,902 6,705
Stock, at cost
Residential 466,601 483,330 494,208 505,150 507,440
mortgage
Commercial 279,336 275,915 275,675 274,640 267,002
mortgage
Commercial loans 129,671 133,659 137,304 143,188 145,545
Construction 65,760 67,075 69,474 66,785 57,122
loans
Consumer loans 26,571 27,302 27,959 29,789 31,092
Home equity 38,450 35,357 32,648 31,054 27,165
loans
Other loans 1,592 1,079 1,958 2,376 1,013
Total loans 1,007,981 1,023,717 1,039,226 1,052,982 1,036,379
Less: Allowance 12,947 11,054 9,762 9,688 9,088
for loan losses
Net loans 995,034 1,012,663 1,029,464 1,043,294 1,027,291
Premises and 28,011 27,189 26,740 26,936 26,439
equipment
Other real 680 700 965 1,211 1,211
estate owned
Accrued interest 5,359 4,652 4,635 4,117 4,884
receivable
Cash surrender
value of life 26,087 25,865 25,672 25,480 25,249
insurance
Deferred tax 22,154 23,653 22,927 23,143 10,975
assets, net
Other assets 9,117 2,550 2,858 4,179 2,194
TOTAL ASSETS $ 1,487,679 $ 1,458,879 $ 1,424,307 $ 1,385,425 $ 1,368,898
LIABILITIES
Deposits:
Noninterest
bearing demand $ 199,804 $ 194,888 $ 195,175 $ 210,030 $ 200,976
deposits
Interest-bearing
deposits
Checking 212,687 203,378 178,430 167,727 148,868
Savings 73,308 71,464 70,426 67,453 67,611
Money market 470,123 418,208 400,692 364,628 379,719
accounts
CD's $100,000 159,942 187,516 192,708 195,826 156,272
and over
CD's less than 209,994 220,779 225,608 232,224 207,539
$100,000
Total deposits 1,325,858 1,296,233 1,263,039 1,237,888 1,160,985
Borrowings 36,815 37,128 39,439 54,998 95,054
Other 5,862 9,844 7,654 8,645 7,007
liabilities
TOTAL 1,368,535 1,343,205 1,310,132 1,301,531 1,263,046
LIABILITIES
Shareholders' 119,144 115,674 114,175 83,894 105,852
Equity
TOTAL
LIABILITIES AND $ 1,487,679 $ 1,458,879 $ 1,424,307 $ 1,385,425 $ 1,368,898
SHAREHOLDERS'
EQUITY
Trust division
assets under
management $ 1,803,862 $ 1,702,782 $ 1,602,752 $ 1,804,629 $ 1,861,763
(market value,
not included
above)
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in thousands)
(Unaudited)
As of
September June 30, March 31, December September
30, 31, 30,
2009 2009 2009 2008 2008
Asset Quality:
Loans past due
over 90 days $ 1,118 $ 104 $ - $ - $ -
and still
accruing
Non-accrual 13,082 12,998 11,139 5,393 3,804
loans
Other real 680 700 965 1,211 1,211
estate owned
Total
non-performing $ 14,880 $ 13,802 $ 12,104 $ 6,604 $ 5,015
assets
Troubled debt
restructured $ 18,671 $ 7,766 $ - $ - $ -
loans
Non-performing
loans to total 1.41% 1.28% 1.07% 0.51% 0.37%
loans
Non-performing
assets to 1.00% 0.95% 0.85% 0.48% 0.37%
total assets
Allowance for
loan losses:
Beginning of $ 11,054 $ 9,762 $ 9,688 $ 9,088 $ 8,295
period
Provision for 2,750 2,000 2,000 600 780
loan losses
Charge-offs, (857) (708) (1,926) - 13
net
End of period $ 12,947 $ 11,054 $ 9,762 $ 9,688 $ 9,088
ALLL to
non-performing 91.18% 84.37% 87.64% 179.64% 238.91%
loans
ALLL to total 1.28% 1.08% 0.94% 0.92% 0.88%
loans
Capital
Adequacy:
Tier I
leverage
(5% minimum to
be considered 8.17% 8.25% 8.21% 6.15% 8.76%
well
capitalized)
Tier I capital
to
risk-weighted
assets
(6% minimum to
be considered 12.23% 12.30% 11.73% 9.11% 12.41%
well
capitalized)
Tier I & II
capital to
risk-weighted
assets
(10% minimum
to be
considered 13.48% 13.44% 12.73% 10.05% 13.36%
well
capitalized)
Common equity
to Total 6.17% 6.06% 6.11% 6.06% 7.73%
assets
Book value per $ 10.54 $ 10.15 $ 9.99 $ 9.64 $ 12.16
Common share
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
For The Three Months Ended
September June 30, March 31, December September
30, 31, 30,
2009 2009 2009 2008 2008
Income
Statement
Data:
Interest $ 16,379 $ 16,709 $ 16,795 $ 18,048 $ 17,912
income
Interest 4,129 4,543 4,987 5,812 5,759
expense
Net interest 12,250 12,166 11,808 12,236 12,153
income
Provision
for loan 2,750 2,000 2,000 600 780
losses
Net interest
income after
provision 9,500 10,166 9,808 11,636 11,373
for loan
losses
Trust fees 2,200 2,550 2,332 2,899 2,489
Other income 1,137 1,114 983 1,019 964
Securities (2) 108 5 - 104
gains, net
Impairment - - - (56,146) -
charges
Other 10,940 11,195 9,524 9,956 9,591
expenses
Income
before 1,895 2,743 3,604 (50,548) 5,339
income taxes
Income tax 583 813 1,122 (17,929) 1,822
expense
Net income 1,312 1,930 2,482 (32,619) 3,517
Dividends
and
accretion on 430 428 205 - -
preferred
stock
Net income
available to $ 882 $ 1,502 $ 2,277 $ (32,619) $ 3,517
Common
shareholders
Per Common
Share Data:
Earnings per
share $ 0.10 $ 0.17 $ 0.26 $ (3.75) $ 0.40
(basic)
Earnings per
share 0.10 0.17 0.26 (3.70) 0.40
(diluted)
Performance
Ratios:
Return on
Average 0.36% 0.54% 0.71% (9.45)% 1.04%
Assets
Return on
Average
Common
Equity 3.89% 6.75% 10.45% (121.92)% 13.46%
Net Interest
Margin
(Taxable
Equivalent 3.61% 3.71% 3.70% 3.84% 3.92%
Basis)
Note: Per share amounts have been restated for a 5% stock dividend declared on
June 18, 2009, and payable on August 3, 2009 to
shareholders of record on July 9, 2009.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
For The
Nine Months Ended
September 30,
2009 2008
Income Statement Data:
Interest income $ 49,883 $ 53,869
Interest expense 13,659 19,785
Net interest income 36,224 34,084
Provision for loan losses 6,750 1,800
Net interest income after 29,474 32,284
provision for loan losses
Trust fees 7,082 7,640
Other income 3,234 2,824
Securities gains, net 111 483
Other expenses 31,658 27,329
Income before income taxes 8,243 15,902
Income tax expense 2,519 5,343
Net income 5,724 10,559
Dividends and accretion on preferred stock 1,063 -
Net income available to Common shareholders $ 4,661 $ 10,559
Per Common Share Data:
Earnings per share (basic) $ 0.53 $ 1.21
Earnings per share (diluted) 0.53 1.20
Performance Ratios:
Return on Average Assets 0.53% 1.04%
Return on Average Common
Equity 6.98% 13.26%
Net Interest Margin
(Taxable Equivalent Basis) 3.64% 3.63%
Note: Per share amounts have been restated for a 5% stock dividend
declared on June 18, 2009, and payable on
August 3, 2009 to shareholders of record on July 9, 2009.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
September 30, 2009 September 30, 2008
Average Income/ Average Income/
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning
Assets:
Investments:
Taxable (1) $ 275,325 $ 2,462 3.58 % $ 202,248 $ 2,632 5.21 %
Tax-Exempt (1) (2) 51,853 626 4.84 44,121 643 5.83
Loans (2) (3) 1,009,348 13,521 5.36 1,019,791 14,903 5.85
Federal Funds Sold 201 - 0.20 716 3 1.94
Interest-Earning 49,639 25 0.20 2,085 10 1.91
Deposits
Total
Interest-Earning 1,386,366 $ 16,634 4.80 % 1,268,961 $ 18,191 5.73 %
Assets
Noninterest-Earning
Assets:
Cash and Due from 8,301 20,586
Banks
Allowance for Loan (11,140 ) (8,313 )
Losses
Premises and 27,705 26,507
Equipment
Other Assets 58,157 41,338
Total
Noninterest-Earning 83,023 80,118
Assets
Total Assets $ 1,469,389 $ 1,349,079
LIABILITIES:
Interest-Bearing
Deposits
Checking $ 216,646 $ 405 0.75 % $ 146,673 $ 309 0.84 %
Money Markets 445,839 1,108 0.99 397,778 1,896 1.91
Savings 72,126 85 0.47 66,586 102 0.61
Certificates of 374,548 2,195 2.34 372,465 2,991 3.21
Deposit
Total
Interest-Bearing 1,109,159 3,793 1.37 983,502 5,298 2.15
Deposits
Borrowings 36,923 336 3.64 58,076 461 3.18
Total
Interest-Bearing 1,146,082 4,129 1.44 1,041,578 5,759 2.21
Liabilities
Noninterest Bearing
Liabilities
Demand Deposits 198,800 193,050
Accrued Expenses
and Other 6,579 9,951
Liabilities
Total
Noninterest-Bearing 205,379 203,001
Liabilities
Shareholders' 117,928 104,500
Equity
Total Liabilities
and Shareholders' $ 1,469,389 $ 1,349,079
Equity
Net Interest Income $ 12,505 $ 12,432
Net Interest Spread 3.36 % 3.52 %
Net Interest Margin 3.61 % 3.92 %
(4)
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
September 30, 2009 June 30, 2009
Average Income/ Average Income/
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning
Assets:
Investments:
Taxable (1) $ 275,325 $ 2,462 3.58 % $ 229,392 $ 2,287 3.99 %
Tax-Exempt (1) (2) 51,853 626 4.84 49,031 618 5.05
Loans (2) (3) 1,009,348 13,521 5.36 1,032,665 14,046 5.44
Federal Funds Sold 201 - 0.20 200 - 0.20
Interest-Earning 49,639 25 0.20 27,574 9 0.13
Deposits
Total
Interest-Earning 1,386,366 $ 16,634 4.80 % 1,338,862 $ 16,960 5.07 %
Assets
Noninterest-Earning
Assets:
Cash and Due from 8,301 31,381
Banks
Allowance for Loan (11,140 ) (9,853 )
Losses
Premises and 27,705 26,890
Equipment
Other Assets 58,157 55,486
Total
Noninterest-Earning 83,023 103,904
Assets
Total Assets $ 1,469,389 $ 1,442,766
LIABILITIES:
Interest-Bearing
Deposits
Checking $ 216,646 $ 405 0.75 % $ 193,245 $ 349 0.72 %
Money Markets 445,839 1,108 0.99 414,082 1,127 1.09
Savings 72,126 85 0.47 70,802 81 0.46
Certificates of 374,548 2,195 2.34 406,518 2,638 2.60
Deposit
Total
Interest-Bearing 1,109,159 3,793 1.37 1,084,647 4,195 1.55
Deposits
Borrowings 36,923 336 3.64 38,925 348 3.58
Total
Interest-Bearing 1,146,082 4,129 1.44 1,123,572 4,543 1.62
Liabilities
Noninterest Bearing
Liabilities
Demand Deposits 198,800 197,565
Accrued Expenses
and Other 6,579 5,438
Liabilities
Total
Noninterest-Bearing 205,379 203,003
Liabilities
Shareholders' 117,928 116,191
Equity
Total Liabilities
and Shareholders' $ 1,469,389 $ 1,442,766
Equity
Net Interest Income $ 12,505 $ 12,417
Net Interest Spread 3.36 % 3.45 %
Net Interest Margin 3.61 % 3.71 %
(4)
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
NINE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
September 30, 2009 September 30, 2008
Average Income/ Average Income/
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning
Assets:
Investments:
Taxable (1) $ 228,359 $ 6,887 4.02% $ 220,120 $ 8,317 5.04%
Tax-Exempt (1) (2) 50,293 1,898 5.03 53,153 2,248 5.64
Loans (2) (3) 1,029,833 41,825 5.42 998,228 43,917 5.87
Federal Funds Sold 200 - 0.20 4,891 115 3.14
Interest-Earning 47,479 43 0.12 8,081 134 2.20
Deposits
Total
Interest-Earning 1,356,164 $ 50,653 4.98% 1,284,473 54,731 5.68%
Assets
Noninterest-Earning
Assets:
Cash and Due from 7,441 20,708
Banks
Allowance for Loan (10,207) (7,850)
Losses
Premises and 27,153 26,488
Equipment
Other Assets 56,173 31,954
Total
Noninterest-Earning 80,560 71,300
Assets
Total Assets $ 1,436,724 $ 1,355,773
LIABILITIES:
Interest-Bearing
Deposits
Checking $ 192,822 $ 1,050 0.73% $ 139,945 $ 733 0.70%
Money Markets 414,054 3,407 1.10 399,367 6,392 2.13
Savings 70,353 244 0.46 65,780 301 0.61
Certificates of 402,500 7,923 2.62 391,047 11,137 3.80
Deposit
Total
Interest-Bearing 1,079,729 12,624 1.56 996,139 18,563 2.48
Deposits
Borrowings 39,147 1,035 3.52 48,390 1,222 3.37
Total
Interest-Bearing 1,118,876 13,659 1.63 1,044,529 19,785 2.53
Liabilities
Noninterest Bearing
Liabilities
Demand Deposits 196,201 192,599
Accrued Expenses
and Other 6,310 12,472
Liabilities
Total
Noninterest-Bearing 202,511 205,071
Liabilities
Shareholders' 115,337 106,173
Equity
Total Liabilities
and Shareholders' $ 1,436,724 $ 1,355,773
Equity
Net Interest Income $ 36,994 $ 34,946
Net Interest Spread 3.35% 3.15%
Net Interest Margin 3.64% 3.63%
(4)
(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 non-accrual loans.
(4) Net interest income on a tax-equivalent basis as a percentage of total
average interest-earning assets.
Source: Peapack-Gladstone Financial Corporation
Contact: Peapack-Gladstone Financial Corporation
Jeffrey J. Carfora, EVP and CFO, 908-719-4308