This press release contains certain supplemental financial information, described below, which has been determined by methods other that U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of the Corporation's performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding the Corporation's financial results. Management believes that the Corporation's presentation and discussion, together with the accompanying reconciliation, provides a complete understanding of factors and trends affecting the Corporation's business and allows investors to view performance in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and the Corporation strongly encourages investors to review it consolidated financial statements in their entirety and not to rely on any single financial measure.
For the For the Three Nine Months Months Ended Ended September September 30, 2011 30, 2011 ----------- -----------Net Income:As reported $ 5,332 $ 9,641Less: Valuation allowance reversal 2,988 2,988 ----------- ----------- Net income, excluding valuation allowance reversal 2,344 6,653 =========== ===========Net Income Available to Common Shareholders:As reported $ 5,113 $ 8,633Less: Valuation allowance reversal 2,988 2,988 ----------- ----------- Net income, excluding valuation allowance reversal 2,125 5,645 =========== ===========Per Common Share Data:Earnings per share (basic):As reported $ 0.58 $ 0.98Less: Valuation allowance reversal 0.34 0.34 ----------- -----------Earnings per share (basic), excluding valuation allowance reversal 0.24 0.64 =========== ===========Earnings per share (diluted):As reported $ 0.58 $ 0.98Less: Valuation allowance reversal 0.34 0.34 ----------- -----------Earnings per share (diluted), excluding valuation allowance reversal 0.24 0.64 =========== ===========Performance Ratios:Return on average assets:As reported 1.39% 0.85%Return on average assets, excluding valuation allowance reversal 0.61% 0.59%Return on average common equity:As reported 19.87% 11.50%Return on average common equity, excluding valuation allowance reversal 8.26% 7.52% PEAPACK-GLADSTONE FINANCIAL CORPORATION AVERAGE BALANCE SHEET UNAUDITED THREE MONTHS ENDED (Tax-Equivalent Basis, Dollars in Thousands) September 30, 2012 September 30, 2011 -------------------------- -------------------------- Average Income/ Average Income/ Balance Expense Yield Balance Expense Yield ----------- -------- ----- ----------- -------- -----ASSETS:Interest-Earning Assets: Investments: Taxable (1) $ 284,440 $ 1,787 2.51% $ 350,946 $ 1,762 2.01% Tax-exempt (1) (2) 44,481 322 2.90 37,238 353 3.79 Loans held for sale 2,829 34 4.77 610 12 8.37 Loans (2) (3) 1,098,857 11,965 4.36 964,400 11,589 4.81 Federal funds sold 100 - 0.10 100 - 0.25 Interest-earning deposits 53,560 27 0.20 77,295 43 0.22 ----------- -------- ----- ----------- -------- ----- Total interest- earning assets 1,484,267 $ 14,135 3.81% 1,430,589 $ 13,759 3.85% ----------- -------- ----- ----------- -------- -----Noninterest-Earning Assets: Cash and due from banks 5,611 8,458 Allowance for loan losses (14,005) (14,592) Premises and equipment 30,820 32,876 Other assets 77,232 72,428 ----------- ----------- Total noninterest- earning assets 99,658 99,170 ----------- -----------Total assets $ 1,583,925 $ 1,529,759 =========== ===========LIABILITIES:Interest-Bearing Deposits: Checking $ 334,982 $ 89 0.11% $ 321,368 $ 269 0.33% Money markets 503,180 259 0.21 519,918 438 0.34 Savings 104,273 14 0.05 87,863 51 0.23 Certificates of deposit 188,568 550 1.17 203,612 684 1.34 ----------- -------- ----- ----------- -------- ----- Total interest- bearing deposits 1,131,003 912 0.32 1,132,761 1,442 0.51 Borrowings 15,281 113 2.96 20,831 177 3.40 Capital lease obligation 9,043 107 4.73 6,406 80 4.99 ----------- -------- ----- ----------- -------- ----- Total interest- bearing liabilities 1,155,327 1,132 0.39 1,159,998 1,699 0.59 ----------- -------- ----- ----------- -------- -----Noninterest-Bearing Liabilities: Demand deposits 305,192 246,665 Accrued expenses and other liabilities 7,434 6,287 ----------- ----------- Total noninterest- bearing liabilities 312,626 252,952Shareholders' equity 115,972 116,809 ----------- ----------- Total liabilities and shareholders' equity $1,583,925 $1,529,759 =========== ===========Net interest income $ 13,003 $ 12,060 ======== ======== Net interest spread 3.42% 3.26% ===== ===== Net interest margin (4) 3.50% 3.37% ===== ===== PEAPACK-GLADSTONE FINANCIAL CORPORATION AVERAGE BALANCE SHEET UNAUDITED THREE MONTHS ENDED (Tax-Equivalent Basis, Dollars in Thousands) September 30, 2012 June 30, 2012 ------------------------- ------------------------- Average Income/ Average Income/ Balance Expense Yield Balance Expense Yield ---------- -------- ----- ---------- -------- -----ASSETS:Interest-Earning Assets: Investments: Taxable (1) $ 284,440 $ 1,787 2.51% $ 312,362 $ 1,770 2.27% Tax-exempt (1) (2) 44,481 322 2.90 45,556 332 2.92 Loans held for sale 2,829 34 4.77 1,137 18 6.57 Loans (2) (3) 1,098,857 11,965 4.36 1,101,095 12,124 4.40 Federal funds sold 100 - 0.10 100 - 0.10 Interest-earning deposits 53,560 27 0.20 22,306 14 0.26 ---------- -------- ----- ---------- -------- ----- Total interest- earning assets 1,484,267 $ 14,135 3.81% 1,482,556 $ 14,258 3.85% ---------- -------- ----- ---------- -------- -----Noninterest-Earning Assets: Cash and due from banks 5,611 5,846 Allowance for loan losses (14,005) (13,990) Premises and equipment 30,820 31,284 Other assets 77,232 76,469 ---------- ---------- Total noninterest- earning assets 99,658 99,609 ---------- ----------Total assets $1,583,925 $1,582,165 ========== ==========LIABILITIES:Interest-Bearing Deposits: Checking $ 334,982 $ 89 0.11% $ 326,920 $ 90 0.11% Money markets 503,180 259 0.21 505,532 257 0.20 Savings 104,273 14 0.05 99,958 13 0.05 Certificates of deposit 188,568 550 1.17 192,261 563 1.17 ---------- -------- ----- ---------- -------- ----- Total interest- bearing deposits 1,131,003 912 0.32 1,124,671 923 0.33 Borrowings 15,281 113 2.96 36,586 168 1.84 Capital lease obligation 9,043 107 4.73 9,093 108 4.75 ---------- -------- ----- ---------- -------- ----- Total interest- bearing liabilities 1,155,327 1,132 0.39 1,170,350 1,199 0.41 ---------- -------- ----- ---------- -------- -----Noninterest -Bearing Liabilities: Demand deposits 305,192 292,459 Accrued expenses and other liabilities 7,434 6,438 ---------- ---------- Total noninterest- bearing liabilities 312,626 298,897Shareholders' equity 115,972 112,918 ---------- ---------- Total liabilities and shareholders' equity $1,583,925 $1,582,165 ========== ==========Net interest income $ 13,003 $ 13,059 ======== ======== Net interest spread 3.42% 3.44% ===== ===== Net interest margin (4) 3.50% 3.52% ===== ===== PEAPACK-GLADSTONE FINANCIAL CORPORATION AVERAGE BALANCE SHEET UNAUDITED NINE MONTHS ENDED (Tax-Equivalent Basis, Dollars in Thousands) September 30, 2012 September 30, 2011 ------------------------- ------------------------- Average Income/ Average Income/ Balance Expense Yield Balance Expense Yield ---------- -------- ----- ---------- -------- -----ASSETS:Interest-Earning Assets: Investments: Taxable (1) $ 315,589 $ 5,609 2.37% $ 369,960 $ 6,240 2.25% Tax-exempt (1) (2) 46,619 1,036 2.96 36,566 1,053 3.84 Loans held for sale 1,859 75 5.37 617 33 7.22 Loans (2) (3) 1,084,357 36,005 4.43 956,651 35,011 4.88 Federal funds sold 100 - 0.10 100 - 0.26 Interest-earning deposits 32,694 58 0.24 50,736 91 0.24 ---------- -------- ----- ---------- -------- ----- Total interest- earning assets 1,481,218 $ 42,783 3.85% 1,414,630 $ 42,428 4.00% ---------- -------- ----- ---------- -------- -----Noninterest-Earning Assets: Cash and due from banks 6,378 8,191 Allowance for loan losses (13,916) (14,869) Premises and equipment 31,284 33,300 Other assets 77,323 71,970 ---------- ---------- Total noninterest- earning assets 101,069 98,592 ---------- ----------Total assets $1,582,287 $1,513,222 ========== ==========LIABILITIES:Interest-Bearing Deposits: Checking $ 332,822 $ 292 0.12% $ 309,646 $ 865 0.37% Money markets 508,337 820 0.22 519,700 1,638 0.42 Savings 99,671 56 0.07 85,415 159 0.25 Certificates of deposit 191,596 1,709 1.19 210,498 2,172 1.38 ---------- -------- ----- ---------- -------- ----- Total interest- bearing deposits 1,132,426 2,877 0.34 1,125,259 4,834 0.57 Borrowings 29,649 453 2.04 23,890 578 3.23 Capital lease obligation 9,094 324 4.75 6,384 239 4.99 ----- ----- Total interest- bearing liabilities 1,171,169 3,654 0.42 1,155,533 5,651 0.65 ---------- -------- ----- ---------- -------- -----Noninterest-Bearing Liabilities: Demand deposits 290,988 235,666 Accrued expenses and other liabilities 6,592 6,552 ---------- ---------- Total noninterest- bearing liabilities 297,580 242,218Shareholders' equity 113,538 115,471 ---------- ---------- Total liabilities and shareholders' equity$1,582,287 $1,513,222 ========== ==========Net interest income $ 39,129 $ 36,777 ======== ======== Net interest spread 3.43% 3.35% ===== ===== Net interest margin (4) 3.52% 3.46% ===== =====(1) Average balances for available for sale securities are based onamortized cost.(2) Interest income is presented on a tax-equivalent basis using a 35percent federal tax rate.(3) Loans are stated net of unearned income and include nonaccrual loans.(4) Net interest income on a tax-equivalent basis as a percentage of totalaverage interest-earning assets.
Contact:
Jeffrey J. Carfora
EVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-719-4308
