GLADSTONE, N.J.--(BUSINESS WIRE)--
Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market:
PGC) (the Corporation) recorded net income of $7.1 million and diluted
earnings per common share after effect of the preferred stock dividend
of $0.64, for the year ended December 31, 2009. These results compared
to a net loss of $22.1 million and a diluted loss per share of $2.53 for
2008.
For the quarter ended December 31, 2009, net income was $1.4 million and
diluted earnings per common share, after effect of the preferred stock
dividend, were $0.11. For the 2008 quarter, the net loss was $32.6
million and the diluted loss per share was $3.75. The 2008 quarter and
year included other-than-temporary impairment charges of $56.1 million
before income taxes and $36.5 million after income taxes, related to
certain investment securities. There were no such impairment charges
taken in 2009.
The 2009 periods included an increase in the provision for loan losses,
an increase in Other Real Estate Owned expense, an increase in the
industry-wide FDIC assessment and the dividends on preferred stock, when
compared to the 2008 periods.
Frank A. Kissel, Chairman and CEO, stated, "We are pleased to have
reported positive earnings and to have generated capital in excess of
common and preferred dividends in 2009, despite the significant impact
the recession has had on financial institutions and their borrowers.
This capital generation enabled us to redeem 25% of the preferred shares
issued under the Treasury's Capital Purchase Program investment on
January 6, 2010." Mr. Kissel continued, "Building capital, remaining
well capitalized and redeeming the CPP investment over time continue to
be important business objectives of the Corporation."
The Corporation recorded a provision for loan losses of $2.95 million in
the fourth quarter of 2009 compared to $600 thousand for the same period
in 2008. Due to a substantial increase in the FDIC assessment rates,
total FDIC assessment expense of $834 thousand was recorded for the
fourth quarter of 2009 as compared to $189 thousand for the same quarter
in 2008. Dividends and accretion on preferred stock totaled $430
thousand for the quarter ended December 31, 2009. There was no such
charge last year as the preferred stock was issued in January 2009 in
connection with the Corporation's participation in the U.S. Treasury's
Capital Purchase Program.
Mr. Kissel commented, "Our provision for loan losses has increased
substantially in 2009, as the continued weakness in the overall economy
and in the real estate markets has negatively impacted our borrowers and
their property values, causing an increase in problem loans. We,
however, have not seen the same significant deterioration in our loan
portfolio as many other institutions because of our conservative
underwriting at the time of origination and our continued diligence in
managing our loan portfolio. Further, we are pleased with the progress
we have made this past quarter in resolving certain problem assets."
Net Interest Income and Margin
In the fourth quarter of 2009, net interest income, on a fully
tax-equivalent basis, was $12.4 million, reflecting a slight decline
from $12.5 million for the same quarter last year. On a fully
tax-equivalent basis, the net interest margin was 3.44 percent and 3.84
percent for the fourth 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. Mr.
Kissel stated, "We have built substantial short and medium-term
liquidity into our balance sheet over 2009, so we are well positioned
when loan demand increases and interest rates rise."
Loans
Average loans totaled $996.6 million for the fourth quarter of 2009 as
compared to $1.05 billion for the same 2008 quarter, reflecting a
decrease of $48.5 million or 4.6 percent. The average residential
mortgage loan portfolio declined $46.1 million or 9.1 percent to $461.2
million, as the Corporation has opted to sell its longer-term,
fixed-rate loan production as an interest rate risk management strategy
in the lower rate environment and loan payments have outpaced
originations retained in portfolio. The average commercial portfolio
declined $7.3 million or 1.5 percent to $469.7 million, as loan demand
and quality borrowers on the commercial front have been scarce during
2009.
The average home equity line portfolio rose $9.3 million or 31.4 percent
to $38.8 million for the fourth quarter of 2009 compared to the same
quarter in 2008. The Corporation focused on the origination of these
adjustable-rate loans, and loan originations outpaced principal paydowns
over the year.
Deposits
Average total deposits (interest-bearing and non-interest bearing) grew
14.7 percent from $1.19 billion in the fourth quarter of 2008 to $1.36
billion in the fourth quarter of 2009. Average non-interest bearing
checking grew $16.9 million or 8.8 percent to $209.5 million in the
fourth quarter of 2009 from the fourth quarter of 2008. Average
interest-bearing checking balances totaled $226.9 million in the fourth
quarter of 2009, rising $70.5 million or 45.1 percent from the same
quarter in 2008. Checking growth is attributable to the Corporation's
focus on core deposit growth, particularly checking, 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 $373.2 million in the
fourth quarter of 2008 to $469.6 million for the same quarter of 2009,
an increase of $96.4 million or 25.8 percent. The Corporation's focus on
core deposit growth, as well as certain customers tending to "park"
funds in money market accounts in lower interest rate environments
accounted for this growth.
In comparing balances at December 31, 2009 to balances at December 31,
2008, non-interest bearing checking and 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 paydowns on loans.
Mr. Kissel commented, "Our core deposit growth and reduced reliance on
certificates of deposit 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 $2.4 million in fee income in the
fourth quarter of 2009, compared to $2.9 million in the same quarter of
2008. Excluding increases in non-recurring fees in the 2008 quarter, the
decrease in the 2009 quarter was approximately $200 thousand or 6.9%
when compared to the same quarter a year ago. This decrease reflects the
reduction of certain recurring fees earned on the placement of funds in
money market instruments, due to the current low interest rate
environment, as well as a reduction in non-recurring fiduciary fees.
Craig C. Spengeman, President of PGB Trust & Investments commented, "We
are pleased with the recovery and performance of our assets under
administration throughout the year as the financial markets endured the
worst financial crisis since the Great Depression. The recovery and
performance reflects the sound financial management of our trust and
investment professionals as well as the quality of new business booked
as prospective clients continue to seek professional advice during these
challenging times."
Other Income
For the fourth quarter of 2009, other income totaled $1.1 million as
compared to $1.0 million for the same quarter of 2008, rising $48
thousand, or 4.7 percent. Fee income earned on the sale of mortgage
loans at origination increased $92 thousand to $124 thousand in the
fourth quarter of 2009 from $32 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 have been 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 $31 thousand or 12.5 percent to $218
thousand for the fourth quarter of 2009 as compared to the fourth
quarter of 2008 due primarily to the lower interest rate environment.
Operating Expenses
The Corporation's total operating expenses were $10.6 million in the
fourth quarter of 2009 compared to $10.0 million for the same quarter of
2008, an increase of $651 thousand or 6.5 percent. The majority 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 $834 thousand was recorded for the fourth quarter
of 2009 as compared to $189 thousand for the same period in 2008.
ASSET QUALITY
At December 31, 2009, non-performing assets totaled $12.1 million or
0.80 percent of total assets as compared to $6.6 million or 0.48 percent
of total assets at December 31, 2008. Non-performing loans have
increased from December 31, 2008 primarily due to two construction loans
to one borrower totaling $5.04 million. Although the borrower continued
to make interest payments on the loans through August 2009, the loans
have been on non-accrual status since March 2009 and $1.33 million in
charge-offs have been recorded in 2009 related to this borrower,
including $1.04 million recorded in the fourth quarter of 2009.
Mr. Kissel noted that certain problem assets were resolved over the
quarter. "During the fourth quarter, the property securing a
non-performing $2.1 million residential loan, the note related to a
non-performing $600 thousand commercial mortgage loan, and a piece of
land carried at $320 thousand in other real estate owned, were sold.
Additionally, a residential property carried at $320 thousand in other
real estate owned, was under contract for sale as of December 31, 2009,
with the closing occurring in January 2010."
Mr. Kissel added, "We continue to be proactive in our loan portfolio
management 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 in
the past and will continue to serve us well in the future."
The allowance for loan losses was $13.2 million or 1.34 percent of total
loans at December 31, 2009 as compared to $9.7 million or 0.92 percent
of total loans at December 31, 2008.
CAPITAL
At December 31, 2009, the Corporation's leverage ratio, tier 1 and total
risk based capital ratios were 7.93 percent, 12.45 percent and 13.71
percent, respectively. These capital ratios are above the levels to be
considered well capitalized under applicable regulatory guidelines.
Additionally, the Corporation's common equity ratio (common equity to
total assets) at December 31, 2009 stands at a healthy 6.1 percent.
As previously announced, on January 21, 2010 the Board of Directors
declared a regular cash dividend of $0.05 per share payable on February
19, 2010 to shareholders of record on February 4, 2010.
ABOUT THE CORPORATION
Peapack-Gladstone Financial Corporation is a bank holding company with
total assets of $1.51 billion as of December 31, 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
-- a continued or unexpected decline in the economy, in particular in our
New Jersey market area;
-- declines in value in our investment portfolio;
-- increases in our allowance for loan losses;
-- increases in loan losses or in the level of nonperforming loans;
-- unexpected changes in interest rates;
-- we may be unable to successfully grow our business;
-- we may be unable to manage our growth;
-- a continued or unexpected decline in real estate values within our
market areas;
-- increased or unexpected competition from our competitors;
-- significant regulatory oversight which may adversely affect our
business;
-- higher than expected FDIC insurance premiums;
-- market conditions and other factors may adversely affect the market
price of our common stock;
-- lack of liquidity to fund our various cash obligations;
-- our preferred shares issued under the Treasury's Capital Purchase
Program will impact net income available to our common shareholders and
our earnings per share;
-- further offerings of our equity securities may result in dilution of our
common stock and a reduction in the price of our common stock;
-- reduction in our lower-cost funding sources;
-- changes in accounting policies or accounting standards;
-- we may be unable to adapt to technological changes;
-- our internal controls and procedures may not be adequate;
-- claims and litigation pertaining to fiduciary responsibility,
environmental laws and other matters;
-- future earnings volatility caused by economic or other factors; and
-- other unexpected material adverse changes in our operations or earnings.
A detailed discussion of these and other factors that could affect our
results is included in our SEC filings, including our Quarterly Report
on Form 10-Q for the quarter ended March 31, 2009 and our Annual Report
on Form 10-K for the year ended December 31, 2008. 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
December September June 30, March 31, December
31, 30, 31,
2009 2009 2009 2009 2008
ASSETS
Cash and due $ 7,864 $ 9,343 $ 50,921 $ 20,525 $ 25,686
from banks
Federal funds 201 200 200 201 200
sold
Interest-earning 71,907 46,876 513 59,063 1,003
deposits
Total cash and 79,972 56,419 51,634 79,789 26,889
cash equivalents
Securities held 89,459 86,703 77,216 48,379 51,731
to maturity
Securities
available for 272,484 252,786 227,414 178,676 173,543
sale
FHLB and FRB 5,315 5,329 5,343 4,202 4,902
Stock, at cost
Residential 452,641 466,601 483,330 494,208 505,150
mortgage
Commercial 279,595 279,336 275,915 275,675 274,640
mortgage
Commercial loans 120,554 129,671 133,659 137,304 143,188
Construction 64,816 65,760 67,075 69,474 66,785
loans
Consumer loans 25,638 26,571 27,302 27,959 29,789
Home equity 38,728 38,450 35,357 32,648 31,054
lines of credit
Other loans 1,565 1,592 1,079 1,958 2,376
Total loans 983,537 1,007,981 1,023,717 1,039,226 1,052,982
Less: Allowance 13,192 12,947 11,054 9,762 9,688
for loan losses
Net loans 970,345 995,034 1,012,663 1,029,464 1,043,294
Premises and 27,911 28,011 27,189 26,740 26,936
equipment
Other real 360 680 700 965 1,211
estate owned
Accrued interest 4,444 5,359 4,652 4,635 4,117
receivable
Cash surrender
value of life 26,292 26,087 25,865 25,672 25,480
insurance
Deferred tax 23,522 22,154 23,653 22,927 23,143
assets, net
Other assets 12,249 9,117 2,550 2,858 4,179
TOTAL ASSETS $ 1,512,353 $ 1,487,679 $ 1,458,879 $ 1,424,307 $ 1,385,425
LIABILITIES
Deposits:
Noninterest
bearing demand $ 216,127 $ 199,804 $ 194,888 $ 195,175 $ 210,030
deposits
Interest-bearing
deposits
Checking 255,058 212,687 203,378 178,430 167,727
Savings 73,866 73,308 71,464 70,426 67,453
Money market 458,303 470,123 418,208 400,692 364,628
accounts
CD's $100,000 147,138 159,942 187,516 192,708 195,826
and over
CD's less than 199,177 209,994 220,779 225,608 232,224
$100,000
Total deposits 1,349,669 1,325,858 1,296,233 1,263,039 1,237,888
Borrowings 36,499 36,815 37,128 39,439 54,998
Other 6,676 5,862 9,844 7,654 8,645
liabilities
TOTAL 1,392,844 1,368,535 1,343,205 1,310,132 1,301,531
LIABILITIES
Shareholders' 119,509 119,144 115,674 114,175 83,894
Equity
TOTAL
LIABILITIES AND $ 1,512,353 $ 1,487,679 $ 1,458,879 $ 1,424,307 $ 1,385,425
SHAREHOLDERS'
EQUITY
Trust division
assets under
management $ 1,856,229 $ 1,803,862 $ 1,702,782 $ 1,602,752 $ 1,804,629
(market value,
not included
above)
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in thousands)
(Unaudited)
As of
December September June 30, March 31, December 31,
31, 30,
2009 2009 2009 2009 2008
Asset Quality:
Loans past due
over 90 days $ 496 $ 1,118 $ 104 $ - $ -
and still
accruing
Non-accrual 11,256 13,082 12,998 11,139 5,393
loans
Other real 360 680 700 965 1,211
estate owned
Total
non-performing $ 12,112 $ 14,880 $ 13,802 $ 12,104 $ 6,604
assets
Non-performing
loans to total 1.19% 1.41% 1.28% 1.07% 0.51%
loans
Non-performing
assets to 0.80% 1.00% 0.95% 0.85% 0.48%
total assets
Troubled debt
restructured $ 11,123 $ 18,671 $ 7,766 $ - $ -
loans
Loans past due
30 through 89 $ 6,015 $ 7,362 $ 5,524 $ 8,458 $ 8,728
days and still
accruing
Allowance for
loan losses:
Beginning of $ 12,947 $ 11,054 $ 9,762 $ 9,688 $ 9,088
period
Provision for 2,950 2,750 2,000 2,000 600
loan losses
Charge-offs, (2,705) (857) (708) (1,926) -
net
End of period $ 13,192 $ 12,947 $ 11,054 $ 9,762 $ 9,688
ALLL to
non-performing 112.25% 91.18% 84.37% 87.64% 179.64%
loans
ALLL to total 1.34% 1.28% 1.08% 0.94% 0.92%
loans
Capital
Adequacy:
Tier I
leverage (5%
minimum to be 7.93% 8.17% 8.25% 8.21% 6.15%
considered
well
capitalized)
Tier I capital
to risk-
weighted
assets (6% 12.45% 12.23% 12.30% 11.73% 9.11%
minimum to be
considered
well
capitalized)
Tier I & II
capital to
risk-weighted
assets (10% 13.71% 13.48% 13.44% 12.73% 10.05%
minimum to be
considered
well
capitalized)
Common equity
to Total 6.09% 6.17% 6.06% 6.11% 6.06%
assets
Book value per $ 10.57 $ 10.54 $ 10.15 $ 9.99 $ 9.64
Common share
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in thousands, except share data)
(Unaudited)
For The Three Months Ended
December September June 30, March 31, December 31,
31, 30,
2009 2009 2009 2009 2008
Income
Statement
Data:
Interest $ 16,123 $ 16,379 $ 16,709 $ 16,795 $ 18,048
income
Interest 4,000 4,129 4,543 4,987 5,812
expense
Net interest 12,123 12,250 12,166 11,808 12,236
income
Provision
for loan 2,950 2,750 2,000 2,000 600
losses
Net interest
income after
provision 9,173 9,500 10,166 9,808 11,636
for loan
losses
Trust fees 2,346 2,200 2,550 2,332 2,899
Other income 1,067 1,137 1,114 983 1,019
Securities (42) (2) 108 5 -
gains, net
Impairment - - - - (56,146)
charges
Salaries and
employee 5,291 5,622 5,430 5,534 5,333
benefits
Premises and 2,358 2,185 2,171 2,089 2,206
equipment
FDIC
insurance 834 724 1,378 373 189
expense
Other 2,124 2,409 2,216 1,528 2,228
expenses
Income
before 1,937 1,895 2,743 3,604 (50,548)
income taxes
Income tax 536 583 813 1,122 (17,929)
expense
Net income 1,401 1,312 1,930 2,482 (32,619)
Dividends
and
accretion on 430 430 428 205 -
preferred
stock
Net income
available to $ 971 $ 882 $ 1,502 $ 2,277 $ (32,619)
Common
shareholders
Per Common
Share Data:
Earnings per
share $ 0.11 $ 0.10 $ 0.17 $ 0.26 $ (3.75)
(basic)
Earnings per
share 0.11 0.10 0.17 0.26 (3.75)
(diluted)
Performance
Ratios:
Return on
Average 0.37% 0.36% 0.54% 0.71% (9.45)%
Assets
Return on
Average
Common
Equity 4.18% 3.89% 6.75% 10.45% (121.92)%
Net Interest
Margin
(Taxable
Equivalent 3.44% 3.61% 3.71% 3.70% 3.84%
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
Twelve Months Ended
December 31,
2009 2008
Income Statement Data:
Interest income $ 66,007 $ 71,917
Interest expense 17,659 25,597
Net interest income 48,348 46,320
Provision for loan losses 9,700 2,400
Net interest income after provision for loan losses 38,648 43,920
Trust fees 9,428 10,538
Other income 4,301 3,844
Impairment charges - (56,146)
Securities gains, net 69 483
Salaries and employee benefits 21,877 20,586
Premises and equipment 8,803 8,470
FDIC insurance expense 3,309 563
Other expenses 8,277 7,666
Income before income taxes 10,180 (34,646)
Income tax expense 3,054 (12,586)
Net income 7,126 (22,060)
Dividends and accretion on preferred stock 1,493 -
Net income available to Common shareholders $ 5,633 $ (22,060)
Per Common Share Data:
Earnings per share (basic) $ 0.64 $ (2.53)
Earnings per share (diluted) 0.64 (2.53)
Performance Ratios:
Return on Average Assets 0.49% (1.62)%
Return on Average Common
Equity 6.26% (20.74)%
Net Interest Margin
(Taxable Equivalent Basis) 3.58% 3.68%
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)
December 31, 2009 December 31, 2008
Average Income/ Average Income/
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning
Assets:
Investments:
Taxable (1) $ 304,301 $ 2,506 3.29% $ 209,425 $ 2,743 5.24%
Tax-Exempt (1) (2) 47,749 578 4.83 44,303 613 5.54
Loans (2) (3) 996,601 13,232 5.31 1,045,085 14,949 5.72
Federal Funds Sold 201 - 0.20 361 1 0.67
Interest-Earning 90,663 47 0.21 1,034 2 0.66
Deposits
Total
Interest-Earning 1,439,515 $ 16,363 4.55% 1,300,208 $ 18,308 5.63%
Assets
Noninterest-Earning
Assets:
Cash and Due from 9,493 21,167
Banks
Allowance for Loan (12,872) (9,098)
Losses
Premises and 27,981 26,850
Equipment
Other Assets 61,689 41,116
Total
Noninterest-Earning 86,291 80,035
Assets
Total Assets $ 1,525,806 $ 1,380,243
LIABILITIES:
Interest-Bearing
Deposits
Checking $ 226,851 $ 426 0.75% $ 156,360 $ 363 0.93%
Money Markets 469,635 1,103 0.94 373,225 1,711 1.83
Savings 72,326 76 0.42 66,936 99 0.59
Certificates of 381,984 2,062 2.16 397,179 3,190 3.21
Deposit
Total
Interest-Bearing 1,150,796 3,667 1.27 993,700 5,363 2.16
Deposits
Borrowings 36,605 333 3.64 79,513 449 2.26
Total
Interest-Bearing 1,187,401 4,000 1.35 1,073,213 5,812 2.17
Liabilities
Noninterest Bearing
Liabilities
Demand Deposits 209,458 192,515
Accrued Expenses
and Other 8,676 7,501
Liabilities
Total
Noninterest-Bearing 218,134 200,016
Liabilities
Shareholders' 120,271 107,014
Equity
Total Liabilities
and Shareholders' $ 1,525,806 $ 1,380,243
Equity
Net Interest Income $ 12,363 $ 12,496
Net Interest Spread 3.20% 3.46%
Net Interest Margin 3.44% 3.84%
(4)
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
THREE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
December 31, 2009 September 30, 2009
Average Income/ Average Income/
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning
Assets:
Investments:
Taxable (1) $ 304,301 $ 2,506 3.29% $ 275,325 $ 2,462 3.58%
Tax-Exempt (1) (2) 47,749 578 4.83 51,853 626 4.84
Loans (2) (3) 996,601 13,232 5.31 1,009,348 13,521 5.36
Federal Funds Sold 201 - 0.20 201 - 0.20
Interest-Earning 90,663 47 0.21 49,639 25 0.20
Deposits
Total
Interest-Earning 1,439,515 $ 16,363 4.55% 1,386,366 $ 16,634 4.80%
Assets
Noninterest-Earning
Assets:
Cash and Due from 9,493 8,301
Banks
Allowance for Loan (12,872) (11,140)
Losses
Premises and 27,981 27,705
Equipment
Other Assets 61,689 58,157
Total
Noninterest-Earning 86,291 83,023
Assets
Total Assets $ 1,525,806 $ 1,469,389
LIABILITIES:
Interest-Bearing
Deposits
Checking $ 226,851 $ 426 0.75% $ 216,646 $ 405 0.75%
Money Markets 469,635 1,103 0.94 445,839 1,108 0.99
Savings 72,326 76 0.42 72,126 85 0.47
Certificates of 381,984 2,062 2.16 374,548 2,195 2.34
Deposit
Total
Interest-Bearing 1,150,796 3,667 1.27 1,109,159 3,793 1.37
Deposits
Borrowings 36,605 333 3.64 36,923 336 3.64
Total
Interest-Bearing 1,187,401 4,000 1.35 1,146,082 4,129 1.44
Liabilities
Noninterest Bearing
Liabilities
Demand Deposits 209,458 198,800
Accrued Expenses
and Other 8,676 6,579
Liabilities
Total
Noninterest-Bearing 218,134 205,379
Liabilities
Shareholders' 120,271 117,928
Equity
Total Liabilities
and Shareholders' $ 1,525,806 $ 1,469,389
Equity
Net Interest Income $ 12,363 $ 12,505
Net Interest Spread 3.20% 3.36%
Net Interest Margin 3.44% 3.61%
(4)
PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
UNAUDITED
TWELVE MONTHS ENDED
(Tax-Equivalent Basis, Dollars in Thousands)
December 31, 2009 December 31, 2008
Average Income/ Average Income/
Balance Expense Yield Balance Expense Yield
ASSETS:
Interest-Earning
Assets:
Investments:
Taxable (1) $ 247,500 $ 9,395 3.80% $ 217,432 $ 11,061 5.09%
Tax-Exempt (1) (2) 49,652 2,474 4.98 50,928 2,860 5.62
Loans (2) (3) 1,021,457 55,059 5.39 1,010,007 58,867 5.83
Federal Funds Sold 201 - 0.20 3,752 116 3.09
Interest-Earning 58,364 90 0.15 6,310 136 2.14
Deposits
Total
Interest-Earning 1,377,174 $ 67,018 4.87% 1,288,429 73,040 5.67%
Assets
Noninterest-Earning
Assets:
Cash and Due from 7,958 20,823
Banks
Allowance for Loan (10,879) (8,164)
Losses
Premises and 27,361 26,579
Equipment
Other Assets 57,802 33,708
Total
Noninterest-Earning 82,242 72,946
Assets
Total Assets $ 1,459,416 $ 1,361,375
LIABILITIES:
Interest-Bearing
Deposits
Checking $ 201,399 $ 1,476 0.73% $ 144,070 $ 1,096 0.76%
Money Markets 428,063 4,510 1.05 392,795 8,104 2.06
Savings 70,850 320 0.45 66,071 400 0.61
Certificates of 397,329 9,985 2.51 392,589 14,326 3.65
Deposit
Total
Interest-Bearing 1,097,641 16,291 1.48 995,525 23,926 2.40
Deposits
Borrowings 38,507 1,368 3.55 56,214 1,671 2.97
Total
Interest-Bearing 1,136,148 17,659 1.55 1,051,739 25,597 2.43
Liabilities
Noninterest Bearing
Liabilities
Demand Deposits 199,543 192,578
Accrued Expenses
and Other 7,144 10,674
Liabilities
Total
Noninterest-Bearing 206,687 203,252
Liabilities
Shareholders' 116,581 106,384
Equity
Total Liabilities
and Shareholders' $ 1,459,416 $ 1,361,375
Equity
Net Interest Income $ 49,359 $ 47,443
Net Interest Spread 3.32% 3.24%
Net Interest Margin 3.58% 3.68%
(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, 908-719-4308
EVP and CFO