via NewMediaWire - Peapack-Gladstone Financial Corporation
(
NASDAQ Global Select Market: PGC) (the “Company”)
announces its second quarter 2023 results.
This earnings release should be read in
conjunction with the Company’s Q2 2023 Investor
Update, a copy of which is available on our website at
www.pgbank.com and via a
current report on Form 8-K on the website of the Securities and
Exchange Commission at www.sec.gov.
The Company recorded total revenue of $57.5
million, net income of $13.1 million and diluted earnings per share
(“EPS”) of $0.73 for the quarter ended June 30, 2023, compared to
revenue of $61.4 million, net income of $20.1 million and diluted
EPS of $1.08 for the three months ended June 30, 2022.
The Company’s return on average assets was
0.82%, return on average equity was 9.43%, and return on average
tangible equity was 10.30%, each for the quarter ended June 30,
2023. Loans grew by $70 million to $5.4 billion while deposits
declined by $110 million to $5.2 billion during the second quarter.
Deposits have declined minimally on a year-to-date basis by $7
million.
The Company’s liquidity position remains strong
as balance sheet liquidity (investments available for sale,
interest-earning deposits and cash) was $761 million as of June 30,
2023 which is 11.74% of total assets. The Company also has $2.8
billion of external borrowing capacity, when combined with balance
sheet liquidity provides us with 283% coverage of our uninsured
deposits. Approximately 76% of our deposits are presently covered
by FDIC insurance or are fully collateralized.
Douglas L. Kennedy, President and CEO said, “Our
second quarter results were disappointing, but reflect the
challenging nature of the current interest rate environment and the
persistent inversion of the treasury yield curve. These conditions
have resulted in compression of our net interest margin for a
second consecutive quarter and a reduction in net interest income.
The margin compression was primarily driven by an increase in our
cost of funds during the first six months of 2023, as wealth and
commercial clients moved funds from noninterest-bearing accounts to
higher-yielding deposit products and other alternative investments.
During these difficult times we are fortunate to be able to rely on
a stable stream of wealth-related and other noninterest income,
which represented 32% of revenue during the second quarter."
The Company recently announced its plan to
expand into New York City. An application has been filed with
regulatory agencies to open a location in mid-town Manhattan. The
Company has hired and continues to actively recruit from the
tri-state area to build a team of experienced financial service
professionals to gain entry into this lucrative market.
Mr. Kennedy noted, “With the recent changes to
the New York City banking landscape and the void left by the
failure of larger, niche financial institutions, we believe the
current environment has created an unprecedented opportunity to
introduce our brand of private banking to this market. We have the
right client-centric culture to take advantage of this rare
sequence of events and seize this opportunity. We recently
announced that Jeanne Scungio has joined our team as the Market
President of New York City. Jeanne has spent the past 20 years as a
Senior Leader at First Republic Bank. Under her leadership we
expect to build a formidable presence in Manhattan."
The following are select highlights for the
period ended June 30, 2023:
Peapack Private Wealth Management:
- AUM/AUA in our Peapack Private Wealth Management Division
totaled $10.7 billion at June 30, 2023, an increase of 4% (14%
annualized) over March 31, 2023.
- Gross new business inflows for Q2 2023 totaled $274 million
($214 million managed). For the first six months of 2023, gross
business inflows totaled $528 million ($451 million managed).
Managed gross inflows are on a record annualized pace for our
Company.
- Wealth Management fee income of $14.3 million for Q2 2023
comprised 25% of total revenue for the quarter.
Commercial Banking and Balance Sheet
Management:
- The net interest margin ("NIM") was 2.49% in Q2 2023, a decline
of 39 basis points compared to Q1 2023 and a decline of 34 basis
points when compared to Q2 2022.
- Total deposits declined $7 million to $5.2 billion from
December 31, 2022.
- Noninterest-bearing demand deposits have declined by $222
million since December 31, 2022, but still comprised 20% of total
deposits as of June 30, 2023.
- Core deposits (which includes noninterest-bearing demand and
interest-bearing demand, savings and money market accounts) totaled
91% of total deposits at June 30, 2023.
- Total loans were $5.4 billion at June 30, 2023 reflecting
growth of $148 million when compared to $5.3 billion at December
31, 2022.
- Commercial & industrial lending (“C&I”) loan/lease
balances comprised 42% of the total loan portfolio at June 30,
2023.
- Fee income on unused commercial lines of credit totaled
$809,000 for Q2 2023.
Capital Management:
- During the quarter, the Company repurchased 184,000 shares of
Company stock for a total cost of $4.7 million. The Company
repurchased 930,977 shares of stock for a total cost of $32.7
million during the year ended December 31, 2022.
- At June 30, 2023, the Regulatory Tier 1 Leverage Ratio stood at
10.80% for Peapack-Gladstone Bank (the "Bank") and 9.06% for the
Company. The Regulatory Common Equity Tier 1 Ratio (to
Risk-Weighted Assets) stood at 13.68% for the Bank and 11.47% for
the Company. These ratios are significantly above well capitalized
standards, as capital has benefitted from strong net income
generation.
Non-Core Items:
The June 2023 quarter included the following items, which
management believes are non-core items:
- $209,000 negative fair value adjustment on an equity security
held for CRA investment.
- $1.7 million of expense associated with the recent retirement
of certain employees.
- $318,000 of an income tax benefit for a tax reversal.
- These items decreased total revenue by $209,000, reduced net
income by $1.5 million and EPS by $0.08 for the June 2023
quarter.
SUMMARY INCOME STATEMENT
DETAILS:
The following tables summarize specified
financial details for the periods shown.
June 2023 Year Compared to Prior
Year
|
|
|
Six Months Ended |
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
Increase/ |
|
| (Dollars in millions,
except per share data) |
|
2023 |
|
|
2022 |
|
|
|
(Decrease) |
|
| Net interest income |
|
$ |
82.90 |
|
|
$ |
82.51 |
|
|
|
$ |
0.39 |
|
|
|
0 |
% |
| Wealth management fee income |
|
|
28.01 |
|
|
|
28.72 |
|
|
|
|
(0.71 |
) |
|
|
(2 |
) |
| Capital markets activity (A) |
|
|
1.83 |
|
|
|
7.51 |
|
|
|
|
(5.68 |
) |
|
|
(76 |
) |
| Other income (B) |
|
|
6.80 |
|
|
|
(3.01 |
) |
|
|
|
9.81 |
|
|
N/A |
|
| Total other income |
|
|
36.64 |
|
|
|
33.22 |
|
|
|
|
3.42 |
|
|
|
10 |
|
| Operating expenses (C) |
|
|
73.27 |
|
|
|
66.83 |
|
|
|
|
6.44 |
|
|
|
10 |
|
| Pretax income before provision
for credit losses |
|
|
46.27 |
|
|
|
48.90 |
|
|
|
|
(2.63 |
) |
|
|
(5 |
) |
| Provision for credit losses |
|
|
3.21 |
|
|
|
3.82 |
|
|
|
|
(0.61 |
) |
|
|
(16 |
) |
| Pretax income |
|
|
43.06 |
|
|
|
45.08 |
|
|
|
|
(2.02 |
) |
|
|
(4 |
) |
| Income tax expense (D) |
|
|
11.56 |
|
|
|
11.54 |
|
|
|
|
0.02 |
|
|
|
0 |
|
| Net income |
|
$ |
31.50 |
|
|
$ |
33.54 |
|
|
|
$ |
(2.04 |
) |
|
|
(6 |
)% |
| Diluted EPS |
|
$ |
1.74 |
|
|
$ |
1.79 |
|
|
|
$ |
(0.05 |
) |
|
|
(3 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Revenue (E) |
|
$ |
119.54 |
|
|
$ |
115.73 |
|
|
|
$ |
3.81 |
|
|
|
3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets |
|
|
0.99 |
% |
|
|
1.09 |
% |
|
|
|
(0.10 |
) |
|
|
|
| Return on average equity |
|
|
11.44 |
% |
|
|
12.59 |
% |
|
|
|
(1.15 |
) |
|
|
|
(A) Capital markets activity includes fee income
from loan level back-to-back swaps, the SBA lending and sale
program, corporate advisory and mortgage banking activities. (B)
Other income for the six months ended June 30, 2022 included a $6.6
million loss on sale of securities. and a fair value adjustment on
a CRA equity security of negative $1.2 million. (C) The six months
ended June 2023 included one-time charges of $2.0 million related
to the recent retirement of certain employees and $175,000 of
expense associated with three retail branch closures. The six
months ended June 30, 2022 included $1.5 million of severance
expense related to certain staff reorganizations.(D) Income tax
expense for the six months ended June 30, 2023 included a $318,000
tax benefit for the reversal of the New Jersey surtax, which is set
to expire on December 31, 2023.(E) Total revenue equals the sum of
net interest income plus total other income.
June 2023 Quarter Compared to Prior Year
Quarter
| |
|
Three Months Ended |
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
| |
|
June 30, |
|
|
|
June 30, |
|
|
Increase/ |
|
| (Dollars in millions,
except per share data) |
|
2023 |
|
|
|
2022 |
|
|
(Decrease) |
|
| Net interest income |
|
$ |
38.92 |
|
|
|
$ |
42.89 |
|
|
$ |
(3.97 |
) |
|
|
(9 |
)% |
| Wealth management fee income |
|
|
14.25 |
|
|
|
|
13.89 |
|
|
|
0.36 |
|
|
|
3 |
|
| Capital markets activity (A) |
|
|
0.87 |
|
|
|
|
2.86 |
|
|
|
(1.99 |
) |
|
|
(70 |
) |
| Other income (B) |
|
|
3.46 |
|
|
|
|
1.76 |
|
|
|
1.70 |
|
|
|
97 |
|
| Total other income |
|
|
18.58 |
|
|
|
|
18.51 |
|
|
|
0.07 |
|
|
|
0 |
|
| Operating expenses (C) |
|
|
37.69 |
|
|
|
|
32.66 |
|
|
|
5.03 |
|
|
|
15 |
|
| Pretax income before provision
for credit losses |
|
|
19.81 |
|
|
|
|
28.74 |
|
|
|
(8.93 |
) |
|
|
(31 |
) |
| Provision for credit losses |
|
|
1.70 |
|
|
|
|
1.45 |
|
|
|
0.25 |
|
|
|
17 |
|
| Pretax income |
|
|
18.11 |
|
|
|
|
27.29 |
|
|
|
(9.18 |
) |
|
|
(34 |
) |
| Income tax expense (D) |
|
|
4.96 |
|
|
|
|
7.19 |
|
|
|
(2.23 |
) |
|
|
(31 |
) |
| Net income |
|
$ |
13.15 |
|
|
|
$ |
20.10 |
|
|
$ |
(6.95 |
) |
|
|
(35 |
)% |
| Diluted EPS |
|
$ |
0.73 |
|
|
|
$ |
1.08 |
|
|
$ |
(0.35 |
) |
|
|
(32 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Revenue (E) |
|
$ |
57.50 |
|
|
|
$ |
61.40 |
|
|
$ |
(3.90 |
) |
|
|
(6 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets
annualized |
|
|
0.82 |
% |
|
|
|
1.30 |
% |
|
|
(0.48 |
) |
|
|
|
| Return on average equity
annualized |
|
|
9.43 |
% |
|
|
|
15.43 |
% |
|
|
(6.00 |
) |
|
|
|
(A) Capital markets activity includes fee income
from loan level back-to-back swaps, the SBA lending and sale
program, corporate advisory and mortgage banking activities. (B)
Other income for the June 2023 and 2022 quarters included a fair
value adjustment on a CRA equity security of negative $209,000 and
negative $475,000, respectively. (C) The June 2023 quarter included
one-time charges of $1.7 million associated with the recent
retirement of certain employees. (D) Income tax expense for quarter
ended June 30, 2023 included a $318,000 tax benefit for the
reversal of the New Jersey surtax, which is set to expire on
December 31, 2023.(E) Total revenue equals the sum of net interest
income plus total other income.
June 2023 Quarter Compared to Linked
Quarter
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
March 31, |
|
|
|
Increase/ |
|
| (Dollars in millions,
except per share data) |
|
2023 |
|
|
2023 |
|
|
|
(Decrease) |
|
| Net interest income |
|
$ |
38.92 |
|
|
$ |
43.98 |
|
|
|
$ |
(5.06 |
) |
|
|
(12 |
)% |
| Wealth management fee income |
|
|
14.25 |
|
|
|
13.76 |
|
|
|
|
0.49 |
|
|
|
4 |
|
| Capital markets activity (A) |
|
|
0.87 |
|
|
|
0.97 |
|
|
|
|
(0.10 |
) |
|
|
(10 |
) |
| Other income |
|
|
3.46 |
|
|
|
3.33 |
|
|
|
|
0.13 |
|
|
|
4 |
|
| Total other income |
|
|
18.58 |
|
|
|
18.06 |
|
|
|
|
0.52 |
|
|
|
3 |
|
| Operating expenses (B) |
|
|
37.69 |
|
|
|
35.57 |
|
|
|
|
2.12 |
|
|
|
6 |
|
| Pretax income before provision
for credit losses |
|
|
19.81 |
|
|
|
26.47 |
|
|
|
|
(6.66 |
) |
|
|
(25 |
) |
| Provision for credit losses |
|
|
1.70 |
|
|
|
1.51 |
|
|
|
|
0.19 |
|
|
|
13 |
|
| Pretax income |
|
|
18.11 |
|
|
|
24.96 |
|
|
|
|
(6.85 |
) |
|
|
(27 |
) |
| Income tax expense (C) |
|
|
4.96 |
|
|
|
6.60 |
|
|
|
|
(1.64 |
) |
|
|
(25 |
) |
| Net income |
|
$ |
13.15 |
|
|
$ |
18.36 |
|
|
|
$ |
(5.21 |
) |
|
|
(28 |
)% |
| Diluted EPS |
|
$ |
0.73 |
|
|
$ |
1.01 |
|
|
|
$ |
(0.28 |
) |
|
|
(28 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Revenue (D) |
|
$ |
57.50 |
|
|
$ |
62.04 |
|
|
|
$ |
(4.54 |
) |
|
|
(7 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets
annualized |
|
|
0.82 |
% |
|
|
1.16 |
% |
|
|
|
(0.34 |
) |
|
|
|
| Return on average equity
annualized |
|
|
9.43 |
% |
|
|
13.50 |
% |
|
|
|
(4.07 |
) |
|
|
|
(A) Capital markets activity includes fee income
from loan level back-to-back swaps, the SBA lending and sale
program, corporate advisory and mortgage banking activities. (B)
The June 2023 quarter included one-time charges of $1.7 million
associated with the recent retirement of certain employees while
the March 2023 quarter included $300,000 of expense related to
accelerated vesting of restricted stock related to one executive
and $175,000 of expense associated with three retail branch
closures. (C) The three months ended June 30, 2023 included a
$318,000 tax benefit for the reversal of the New Jersey surtax,
which is set to expire on December 31, 2023.(D) Total revenue
equals the sum of net interest income plus total other income.
SUPPLEMENTAL QUARTERLY
DETAILS:
Peapack Private Wealth
Management
AUM/AUA in the Bank’s Peapack Private Wealth
Management (“PPWM”) Division increased to $10.7 billion at June 30,
2023. For the June 2023 quarter, PPWM generated $14.3 million in
fee income, compared to $13.8 million for the March 31, 2023
quarter and $13.9 million for the June 2022 quarter. The equity
market generally improved during Q2 2023, contributing to the
growth in AUM/AUA.
John Babcock, President of Peapack Private
Wealth Management noted, “In Q2 2023, total new accounts and client
additions amounted to $274 million ($214 million managed), and net
flows were positive. As we look ahead in 2023, our new business
pipeline is healthy and we remain focused on delivering excellent
service and advice to our clients. Our highly skilled wealth
management professionals, our fiduciary powers and expertise, our
financial planning capabilities and our high-touch client service
model distinguishes PPWM in our market and continues to drive our
growth and success.”
Loans / Commercial Banking
Total loans grew $148 million or 3% (6%
annualized) to $5.4 billion at June 30, 2023 when compared to $5.3
billion at December 31, 2022.
Total C&I loans and leases at June 30, 2023
were $2.3 billion or 42% of the total loan portfolio.
Mr. Kennedy noted, “Our loan growth has
historically been strong, however, given economic uncertainty and
rising interest rates, we believe loan demand will subside somewhat
compared to recent prior years. We began tightening our
underwriting in anticipation of a potential economic downturn in
early 2022 and have continued this practice in 2023. Given the
current environment, we believe we will achieve modest loan growth
in 2023.”
Mr. Kennedy also noted, “We are proud to have
built a leading middle market commercial banking franchise, as
evidenced by our C&I Portfolio, Treasury Management services,
and Corporate Advisory and SBA businesses. Additionally, we are
encouraged by the expansion into the Life Insurance Premium Finance
business and believe it will prove to be a safe and profitable
business line that aligns with the Company's overall strategy.”
Net Interest Income (NII)/Net Interest
Margin (NIM)
The Company’s NII of $38.9 million and NIM of
2.49% for Q2 2023 decreased $5.1 million and 39 basis points from
NII of $44.0 million and NIM of 2.88%, for the linked quarter (Q1
2023) and decreased $4.0 million and 34 basis points from NII of
$42.9 million and NIM of 2.83% for the prior year quarter (Q2
2022). When comparing Q2 2023 to the linked and prior year quarter
the Company has seen a rapid increase in interest expense mostly
driven by higher deposit rates during 2023. Cycle to date betas are
approximately 41%, which is consistent with results across the
financial services industry. The intense competition for deposit
balances was the primary driver for increased costs.
Funding / Liquidity / Interest Rate Risk
Management
Total deposits decreased $6.7 million to $5.2
billion at June 30, 2023. The Company saw limited net deposit
outflows during first half of 2023 with most outflow activity
related to larger deposit relationships utilizing their funds for
normal business purposes such as deployment of excess liquidity
into the equity or treasury markets, asset acquisitions or further
investments into their businesses, and tax payments. The Company
has also seen clients transitioning money into interest-bearing
deposit accounts from noninterest-bearing deposit accounts as a
result of the rapid increases in the Fed Funds rate.
Mr. Kennedy noted, "Although we did see minimal
outflows associated with clients concerned about deposit insurance,
our team actively engaged with many of our deposit customers during
the first half of 2023 to discuss any concerns and provide
assurance regarding the safety and soundness of our institution.
Additionally, we migrated $344 million of uninsured deposits this
year into fully-insured FDIC products for those customers that
desired that type of protection."
Mr. Kennedy also noted, “91% of our deposits are
demand, savings, or money market accounts, and our noninterest
bearing deposits comprise 20% of our total deposits. 85% of
deposits are held by clients with relationships greater than three
years old and 66% of deposits are held by clients with
relationships greater than five years old. These metrics reflect
the core nature of the majority of our deposit base.”
At June 30, 2023, the Company’s balance sheet
liquidity (investments available for sale, interest-earning
deposits and cash) totaled $761 million (or 12% of assets).
The Company maintains additional liquidity
resources of approximately $2.8 billion through secured available
funding with the Federal Home Loan Bank and secured funding from
the Federal Reserve Discount Window. The available funding from the
Federal Home Loan Bank and the Federal Reserve are secured by the
Company’s loan and investment portfolios. In addition, the Company
also has access to the Bank Term Funding Program offered by the
Federal Reserve Bank if needed.
The Company's total on and off-balance sheet
liquidity totaled $3.6 billion, which is 283% of the total
uninsured deposits on the Company's balance sheet.
Income from Capital Markets
Activities
Noninterest income from Capital Markets
activities (detailed below) totaled $868,000 for the June 2023
quarter compared to $966,000 for the March 2023 quarter and $2.9
million for the June 2022 quarter.
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
| (Dollars in thousands,
except per share data) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
| Gain on loans held for sale at
fair value (Mortgage banking) |
|
$ |
15 |
|
|
$ |
21 |
|
|
$ |
151 |
|
| Fee income related to loan level,
back-to-back swaps |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Gain on sale of SBA loans |
|
|
838 |
|
|
|
865 |
|
|
|
2,675 |
|
| Corporate advisory fee
income |
|
|
15 |
|
|
|
80 |
|
|
|
33 |
|
| Total capital markets
activity |
|
$ |
868 |
|
|
$ |
966 |
|
|
$ |
2,859 |
|
Other Noninterest Income (other than
Wealth Management Fee Income and Income from Capital Markets
Activities)
Other noninterest income was $3.5 million for Q2
2023 compared to $3.3 million for Q1 2023 and $1.8 million for Q2
2022. Q2 2023 included $809,000 of unused line fees compared to
$852,000 for Q1 2023 and $529,000 for Q2 2022. Additionally, Q2
2023 included $221,000 of income recorded by the Equipment Finance
Division related to equipment transfers to lessees while Q1 2023
included $145,000. The gain on sale of SBA loans for the first and
second quarters of 2023 have been impacted by market volatility
resulting in lower sale premiums and origination volumes.
Operating Expenses
The Company’s total operating expenses were
$37.7 million for the second quarter of 2023, compared to $35.6
million for the March 2023 quarter and $32.7 million for the June
2022 quarter. The June 2023 quarter included $1.7 million of
expense associated with the recent retirement of certain employees.
The March 2023 quarter included $300,000 of restricted stock
expense associated with an executive retiring and $175,000 of
expense associated with the closure of three retail branch
locations. The June 2023 quarter also included increases associated
with compensation related to the addition of full-time equivalent
employees, which grew to 520 at June 30, 2023 compared to 512 at
March 31, 2023 and 472 at June 30, 2022, as well as normal annual
merit increases.
Mr. Kennedy noted, “The Company is committed to
be in a position of strength when industry headwinds recede as
evident by the recent announcement of its intention to expand into
New York City and the opening of a retail bank location in mid-town
Manhattan. We will manage expenses closely and prudently, but will
continue to invest to retain talent. We will also grow and expand
our core wealth management and commercial banking businesses,
including strategic hires and lift-outs if opportunities arise, and
invest in digital and other enhancements to further enhance the
client experience.”
Income Taxes
The effective tax rate for the three months
ended June 30, 2023 was 27.4%, as compared to 26.4% for the March
2023 quarter and 26.4% for the quarter ended June 30, 2022. The
June 30, 2023 quarter benefitted from a $318,000 reversal of a
previously recorded New Jersey surtax. The March 31, 2023 quarter
benefitted from the vesting of restricted stock at prices higher
than grant prices.
Asset Quality / Provision for Credit Losses
Nonperforming assets (which does not include
modified loans that are performing in accordance with their terms)
were $34.5 million, or 0.53% of total assets at June 30, 2023, as
compared to $28.8 million, or 0.44% of total assets at March 31,
2023. The increase during the second quarter was primarily due to
one multifamily relationship totaling $7.6 million that transferred
to a nonaccrual status during the quarter. Loans past due 30 to 89
days and still accruing were $14.5 million, or 0.27% of total
loans.
Criticized and classified loans totaled $112.3
million at June 30, 2023, reflecting an increase from March 31,
2023 and a decline from June 30, 2022 levels. The Company currently
has no loans or leases on deferral and accruing.
For the quarter ended June 30, 2023, the
Company’s provision for credit losses was $1.7 million compared to
$1.5 million for the March 2023 quarter and $646,000 for the June
2022 quarter. The provision for credit losses in the June 2023
quarter was driven by loan growth, in addition to Allowance for
Credit Losses ("ACL") to individually evaluated loans related to
one loan totaling $7.6 million that was transferred to nonaccrual
status.
At June 30, 2023, the allowance for credit
losses was $62.7 million (1.15% of total loans), compared to $62.3
million (1.16% of loans) at March 31, 2023, and $59.0 million
(1.14% of loans) at June 30, 2022.
Capital
The Company’s capital position during the June
2023 quarter increased as a result of net income of $13.1 million,
which was partially offset by the repurchase of 184,000 shares of
common stock through the Company’s stock repurchase program at a
total cost of $4.7 million and the quarterly cash dividend of
$890,000. Additionally, during the second quarter of 2023 the
Company recorded a net loss in accumulated other comprehensive
income of $522,000 ($3.8 million loss related to the available for
sale portfolio partially offset by a $3.2 million gain on cash flow
hedges) increasing the total accumulated other comprehensive loss
amount to $68.0 million as of June 30, 2023 ($76.0 million loss
related to the available for sale portfolio partially offset by a
$8.0 million gain on the cash flow hedges).
Tangible book value per share improved during Q2
2023 to $28.98 at June 30, 2023 from $28.20 at March 31, 2023.
Tangible book value per share is a non-GAAP financial measure. See
the reconciliation tables included in this release. The Company’s
and Bank’s regulatory capital ratios as of June 30, 2023 remain
strong, and generally reflect increases from March 31, 2023 and
June 30, 2022 levels. Where applicable, such ratios remain well
above regulatory well capitalized standards.
The Company employs quarterly capital stress
testing modelling an adverse case and severely adverse case. In the
most recently completed stress test (as of March 31, 2023), under
the severely adverse case, and no growth scenario, the Bank remains
well capitalized over a two-year stress period. With an additional
stress overlay impacting the industries most affected by the
Pandemic more severely, the Bank still remains well capitalized
over the two-year stress period.
On June 22, 2023, the Company declared a cash
dividend of $0.05 per share payable on August 24, 2023 to
shareholders of record on August 10, 2023.
ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a New
Jersey bank holding company with total assets of $6.5 billion and
assets under management/administration of $10.7 billion as of June
30, 2023. Founded in 1921, Peapack-Gladstone Bank is a commercial
bank that provides innovative wealth management, commercial and
retail solutions, including residential lending and online
platforms, to businesses and consumers. Peapack Private, the bank’s
wealth management division, offers comprehensive financial, tax,
fiduciary and investment advice and solutions to individuals,
families, privately-held businesses, family offices and
not-for-profit organizations, which help them to establish,
maintain and expand their legacy. Together, Peapack-Gladstone Bank
and Peapack Private offer an unparalleled commitment to client
service. Visit www.pgbank.com and www.peapackprivate.com for more
information.
The foregoing may contain 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:
- our ability to
successfully grow our business and implement our strategic plan,
including our ability to generate revenues to offset the increased
personnel and other costs related to the strategic plan;
- the impact of anticipated higher
operating expenses in 2023 and beyond;
- our ability to successfully
integrate wealth management firm acquisitions;
- our ability to manage our
growth;
- our ability to successfully
integrate our expanded employee base;
- an unexpected decline in the
economy, in particular in our New Jersey and New York market areas,
including potential recessionary conditions;
- declines in our net interest margin
caused by the interest rate environment and/or our highly
competitive market;
- declines in the value in our
investment portfolio;
- impact from a pandemic event on our
business, operations, customers, allowance for credit losses and
capital levels;
- the continuing impact of the
COVID-19 pandemic on our business and results of operation;
- higher than expected increases in
our allowance for credit losses;
- higher than expected increases in
credit losses or in the level of delinquent, nonperforming,
classified and criticized loans;
- inflation and changes in interest
rates, which may adversely impact our margins and yields, reduce
the fair value of our financial instruments, reduce our loan
originations and lead to higher operating costs;
- 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) that
may result in increased compliance costs;
- successful cyberattacks against our
IT infrastructure and that of our IT and third-party
providers;
- higher than expected FDIC insurance
premiums;
- adverse weather conditions;
- the current or anticipated impact
of military conflict, terrorism or other geopolitical events;
- our inability to successfully
generate new business in new geographic markets, including our
expansion into New York City;
- a reduction in our lower-cost
funding sources;
- changes in liquidity, including the
size and composition of our deposit portfolio, including the
percentage of uninsured deposits in the portfolio;
- our inability to adapt to
technological changes;
- claims and litigation pertaining to
fiduciary responsibility, environmental laws and other
matters;
- our inability to retain key
employees;
- demands for loans and deposits in
our market areas;
- adverse changes in securities
markets;
- changes in governmental regulation,
including, but not limited to, any increase in FDIC insurance
premiums and changes in the monetary policies of the U.S. Treasury
and the Board of Governors of the Federal Reserve System;
- changes in accounting policies and
practices; 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,
2022. We undertake no duty to update any forward-looking statement
to conform the statement to actual results or changes in the
Company’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.
Contact:
Frank A. Cavallaro, SEVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-306-8933
(Tables to follow)
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED CONSOLIDATED FINANCIAL
DATA(Dollars in Thousands, except per share
data) (Unaudited)
| |
|
For the Three Months Ended |
|
| |
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
| |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
| Income Statement
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
$ |
74,852 |
|
|
$ |
70,491 |
|
|
$ |
64,202 |
|
|
$ |
55,013 |
|
|
$ |
48,520 |
|
| Interest expense |
|
|
35,931 |
|
|
|
26,513 |
|
|
|
16,162 |
|
|
|
9,488 |
|
|
|
5,627 |
|
|
Net interest income |
|
|
38,921 |
|
|
|
43,978 |
|
|
|
48,040 |
|
|
|
45,525 |
|
|
|
42,893 |
|
| Wealth management fee income |
|
|
14,252 |
|
|
|
13,762 |
|
|
|
12,983 |
|
|
|
12,943 |
|
|
|
13,891 |
|
| Service charges and fees |
|
|
1,320 |
|
|
|
1,258 |
|
|
|
1,150 |
|
|
|
1,060 |
|
|
|
1,063 |
|
| Bank owned life insurance |
|
|
305 |
|
|
|
297 |
|
|
|
321 |
|
|
|
299 |
|
|
|
310 |
|
| Gain on loans held for sale at
fair value (Mortgage banking) (A) |
|
|
15 |
|
|
|
21 |
|
|
|
25 |
|
|
|
60 |
|
|
|
151 |
|
| Gain/(loss) on loans held for
sale at lower of cost or fair value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Fee income related to loan level,
back-to-back swaps (A) |
|
|
— |
|
|
|
— |
|
|
|
293 |
|
|
|
— |
|
|
|
— |
|
| Gain on sale of SBA loans
(A) |
|
|
838 |
|
|
|
865 |
|
|
|
624 |
|
|
|
622 |
|
|
|
2,675 |
|
| Corporate advisory fee income
(A) |
|
|
15 |
|
|
|
80 |
|
|
|
8 |
|
|
|
102 |
|
|
|
33 |
|
| Other income |
|
|
2,039 |
|
|
|
1,567 |
|
|
|
1,380 |
|
|
|
1,868 |
|
|
|
860 |
|
| Fair value adjustment for CRA
equity security |
|
|
(209 |
) |
|
|
209 |
|
|
|
28 |
|
|
|
(571 |
) |
|
|
(475 |
) |
|
Total other income |
|
|
18,575 |
|
|
|
18,059 |
|
|
|
16,812 |
|
|
|
16,383 |
|
|
|
18,508 |
|
| Salaries and employee benefits
(B) |
|
|
26,354 |
|
|
|
24,586 |
|
|
|
22,489 |
|
|
|
22,656 |
|
|
|
21,882 |
|
| Premises and equipment |
|
|
4,729 |
|
|
|
4,374 |
|
|
|
4,898 |
|
|
|
4,534 |
|
|
|
4,640 |
|
| FDIC insurance expense |
|
|
729 |
|
|
|
711 |
|
|
|
455 |
|
|
|
510 |
|
|
|
503 |
|
| Other expenses |
|
|
5,880 |
|
|
|
5,903 |
|
|
|
5,570 |
|
|
|
5,860 |
|
|
|
5,634 |
|
|
Total operating expenses |
|
|
37,692 |
|
|
|
35,574 |
|
|
|
33,412 |
|
|
|
33,560 |
|
|
|
32,659 |
|
| Pretax income before provision
for credit losses |
|
|
19,804 |
|
|
|
26,463 |
|
|
|
31,440 |
|
|
|
28,348 |
|
|
|
28,742 |
|
| Provision for credit losses |
|
|
1,696 |
|
|
|
1,513 |
|
|
|
1,930 |
|
|
|
599 |
|
|
|
1,449 |
|
| Income before income taxes |
|
|
18,108 |
|
|
|
24,950 |
|
|
|
29,510 |
|
|
|
27,749 |
|
|
|
27,293 |
|
| Income tax expense (C) |
|
|
4,963 |
|
|
|
6,595 |
|
|
|
8,931 |
|
|
|
7,623 |
|
|
|
7,193 |
|
| Net income |
|
$ |
13,145 |
|
|
$ |
18,355 |
|
|
$ |
20,579 |
|
|
$ |
20,126 |
|
|
$ |
20,100 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue (D) |
|
$ |
57,496 |
|
|
$ |
62,037 |
|
|
$ |
64,852 |
|
|
$ |
61,908 |
|
|
$ |
61,401 |
|
| Per Common Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share (basic) |
|
$ |
0.73 |
|
|
$ |
1.03 |
|
|
$ |
1.15 |
|
|
$ |
1.11 |
|
|
$ |
1.10 |
|
| Earnings per share (diluted) |
|
|
0.73 |
|
|
|
1.01 |
|
|
|
1.12 |
|
|
|
1.09 |
|
|
|
1.08 |
|
| Weighted average number
of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
17,930,611 |
|
|
|
17,841,203 |
|
|
|
17,915,058 |
|
|
|
18,072,385 |
|
|
|
18,325,605 |
|
| Diluted |
|
|
18,078,848 |
|
|
|
18,263,310 |
|
|
|
18,382,193 |
|
|
|
18,420,661 |
|
|
|
18,637,340 |
|
| Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets
annualized (ROAA) |
|
|
0.82 |
% |
|
|
1.16 |
% |
|
|
1.33 |
% |
|
|
1.30 |
% |
|
|
1.30 |
% |
| Return on average equity
annualized (ROAE) |
|
|
9.43 |
% |
|
|
13.50 |
% |
|
|
15.73 |
% |
|
|
15.21 |
% |
|
|
15.43 |
% |
| Return on average tangible common
equity annualized (ROATCE) (E) |
|
|
10.30 |
% |
|
|
14.78 |
% |
|
|
17.30 |
% |
|
|
16.73 |
% |
|
|
17.00 |
% |
| Net interest margin
(tax-equivalent basis) |
|
|
2.49 |
% |
|
|
2.88 |
% |
|
|
3.12 |
% |
|
|
2.98 |
% |
|
|
2.83 |
% |
| GAAP efficiency ratio (F) |
|
|
65.56 |
% |
|
|
57.34 |
% |
|
|
51.52 |
% |
|
|
54.21 |
% |
|
|
53.19 |
% |
| Operating expenses / average
assets annualized |
|
|
2.36 |
% |
|
|
2.26 |
% |
|
|
2.15 |
% |
|
|
2.17 |
% |
|
|
2.11 |
% |
(A) Gain on loans held for sale at fair value
(mortgage banking), fee income related to loan level, back-to-back
swaps, gain on sale of SBA loans and corporate advisory fee income
are all included in “capital markets activity” as referred to
within the earnings release.(B) The June 2023 quarter included $1.7
million of expense associated with the recent retirement of certain
employees.(C) The three months ended December 31, 2022 included
$750,000 income tax expense (net federal benefit) related to a
recent New York City nexus determination change which included
$563,000 from prior quarters.(D) Total revenue equals the sum of
net interest income plus total other income.(E) Return on average
tangible common equity is calculated by dividing tangible common
equity by annualized net income. See Non-GAAP financial measures
reconciliation included in these tables.(F) Calculated as total
operating expenses as a percentage of total revenue. For Non-GAAP
efficiency ratio, see the Non-GAAP financial measures
reconciliation included in these tables.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED CONSOLIDATED FINANCIAL
DATA(Dollars in Thousands, except share
data)(Unaudited)
| |
|
For the Six Months Ended |
|
|
|
|
|
|
|
| |
|
June 30, |
|
|
Change |
|
| |
|
2023 |
|
|
2022 |
|
|
$ |
|
|
% |
|
| Income Statement
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
$ |
145,343 |
|
|
$ |
92,660 |
|
|
$ |
52,683 |
|
|
|
57 |
% |
| Interest expense |
|
|
62,444 |
|
|
|
10,145 |
|
|
|
52,299 |
|
|
|
516 |
% |
|
Net interest income |
|
|
82,899 |
|
|
|
82,515 |
|
|
|
384 |
|
|
|
0 |
% |
| Wealth management fee income |
|
|
28,014 |
|
|
|
28,725 |
|
|
|
(711 |
) |
|
|
-2 |
% |
| Service charges and fees |
|
|
2,578 |
|
|
|
2,015 |
|
|
|
563 |
|
|
|
28 |
% |
| Bank owned life insurance |
|
|
602 |
|
|
|
623 |
|
|
|
(21 |
) |
|
|
-3 |
% |
| Gain on loans held for sale at
fair value (Mortgage banking) (A) |
|
|
36 |
|
|
|
398 |
|
|
|
(362 |
) |
|
|
-91 |
% |
| Gain on loans held for sale at
lower of cost or fair value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
N/A |
|
| Fee income related to loan level,
back-to-back swaps (A) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
N/A |
|
| Gain on sale of SBA loans
(A) |
|
|
1,703 |
|
|
|
5,519 |
|
|
|
(3,816 |
) |
|
|
-69 |
% |
| Corporate advisory fee income
(A) |
|
|
95 |
|
|
|
1,594 |
|
|
|
(1,499 |
) |
|
|
-94 |
% |
| Other income |
|
|
3,606 |
|
|
|
2,114 |
|
|
|
1,492 |
|
|
|
71 |
% |
| Loss on securities sale, net
(B) |
|
|
— |
|
|
|
(6,609 |
) |
|
|
6,609 |
|
|
|
-100 |
% |
| Fair value adjustment for CRA
equity security |
|
|
— |
|
|
|
(1,157 |
) |
|
|
1,157 |
|
|
|
-100 |
% |
|
Total other income |
|
|
36,634 |
|
|
|
33,222 |
|
|
|
3,412 |
|
|
|
10 |
% |
| Salaries and employee benefits
(C) |
|
|
50,940 |
|
|
|
44,331 |
|
|
|
6,609 |
|
|
|
15 |
% |
| Premises and equipment |
|
|
9,103 |
|
|
|
9,287 |
|
|
|
(184 |
) |
|
|
-2 |
% |
| FDIC insurance expense |
|
|
1,440 |
|
|
|
974 |
|
|
|
466 |
|
|
|
48 |
% |
| Swap valuation allowance |
|
|
— |
|
|
|
673 |
|
|
|
(673 |
) |
|
|
-100 |
% |
| Other expenses |
|
|
11,783 |
|
|
|
11,563 |
|
|
|
220 |
|
|
|
2 |
% |
|
Total operating expenses |
|
|
73,266 |
|
|
|
66,828 |
|
|
|
6,438 |
|
|
|
10 |
% |
| Pretax income before provision
for credit losses |
|
|
46,267 |
|
|
|
48,909 |
|
|
|
(2,642 |
) |
|
|
-5 |
% |
| Provision for credit losses |
|
|
3,209 |
|
|
|
3,824 |
|
|
|
(615 |
) |
|
|
-16 |
% |
| Income before income taxes |
|
|
43,058 |
|
|
|
45,085 |
|
|
|
(2,027 |
) |
|
|
-4 |
% |
| Income tax expense |
|
|
11,558 |
|
|
|
11,544 |
|
|
|
14 |
|
|
|
0 |
% |
| Net income |
|
$ |
31,500 |
|
|
$ |
33,541 |
|
|
$ |
(2,041 |
) |
|
|
-6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue (D) |
|
$ |
119,533 |
|
|
$ |
115,737 |
|
|
$ |
3,796 |
|
|
|
3 |
% |
| Per Common Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share (basic) |
|
$ |
1.76 |
|
|
$ |
1.83 |
|
|
$ |
(0.07 |
) |
|
|
-4 |
% |
| Earnings per share (diluted) |
|
|
1.74 |
|
|
|
1.79 |
|
|
|
(0.05 |
) |
|
|
-3 |
% |
| Weighted average number
of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
17,886,154 |
|
|
|
18,332,272 |
|
|
|
(446,118 |
) |
|
|
-2 |
% |
| Diluted |
|
|
18,153,267 |
|
|
|
18,782,559 |
|
|
|
(629,292 |
) |
|
|
-3 |
% |
| Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average assets
(ROAA) |
|
|
0.99 |
% |
|
|
1.09 |
% |
|
|
(0.10 |
)% |
|
|
-9 |
% |
| Return on average equity
(ROAE) |
|
|
11.44 |
% |
|
|
12.59 |
% |
|
|
(1.15 |
)% |
|
|
-9 |
% |
| Return on average tangible common
equity (ROATCE) (E) |
|
|
12.51 |
% |
|
|
13.86 |
% |
|
|
(1.35 |
)% |
|
|
-10 |
% |
| Net interest margin
(tax-equivalent basis) |
|
|
2.68 |
% |
|
|
2.76 |
% |
|
|
(0.08 |
)% |
|
|
-3 |
% |
| GAAP efficiency ratio (F) |
|
|
61.29 |
% |
|
|
57.74 |
% |
|
|
3.55 |
% |
|
|
6 |
% |
| Operating expenses / average
assets |
|
|
2.31 |
% |
|
|
2.16 |
% |
|
|
0.15 |
% |
|
|
7 |
% |
(A) Gain on loans held for sale at fair value
(mortgage banking), fee income related to loan level, back-to-back
swaps, gain on sale of SBA loans and corporate advisory fee income
are all included in “capital markets activity” as referred to
within the earnings release.(B) Loss on sale of securities was a
result of a balance sheet repositioning employed in the March 2022
quarter.(C) The six months ended June 30, 2023 included $2.0
million of expense associated with the recent retirement of certain
employees. The six months ended June 30, 2022 quarter included $1.5
million of severance expense related to corporate restructuring.(D)
Total revenue equals the sum of net interest income plus total
other income.(E) Return on average tangible common equity is
calculated by dividing tangible common equity by annualized net
income. See Non-GAAP financial measures reconciliation included in
these tables.(F) Calculated as total operating expenses as a
percentage of total revenue. For Non-GAAP efficiency ratio, see the
Non-GAAP financial measures reconciliation included in these
tables.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONCONSOLIDATED STATEMENTS OF
CONDITION(Dollars in
Thousands)(Unaudited)
| |
|
As of |
|
| |
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
| |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due from banks |
|
$ |
4,859 |
|
|
$ |
6,514 |
|
|
$ |
5,937 |
|
|
$ |
5,066 |
|
|
$ |
6,203 |
|
| Federal funds sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Interest-earning deposits |
|
|
166,769 |
|
|
|
244,779 |
|
|
|
184,138 |
|
|
|
103,214 |
|
|
|
147,222 |
|
|
Total cash and cash equivalents |
|
|
171,628 |
|
|
|
251,293 |
|
|
|
190,075 |
|
|
|
108,280 |
|
|
|
153,425 |
|
| Securities available for
sale |
|
|
540,519 |
|
|
|
556,266 |
|
|
|
554,648 |
|
|
|
497,880 |
|
|
|
556,791 |
|
| Securities held to maturity |
|
|
110,438 |
|
|
|
111,609 |
|
|
|
102,291 |
|
|
|
103,551 |
|
|
|
105,048 |
|
| CRA equity security, at fair
value |
|
|
12,985 |
|
|
|
13,194 |
|
|
|
12,985 |
|
|
|
12,957 |
|
|
|
13,528 |
|
| FHLB and FRB stock, at cost
(A) |
|
|
35,402 |
|
|
|
30,338 |
|
|
|
30,672 |
|
|
|
14,986 |
|
|
|
13,710 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Residential mortgage |
|
|
575,238 |
|
|
|
544,655 |
|
|
|
525,756 |
|
|
|
519,088 |
|
|
|
512,341 |
|
| Multifamily mortgage |
|
|
1,884,369 |
|
|
|
1,871,387 |
|
|
|
1,863,915 |
|
|
|
1,856,675 |
|
|
|
1,876,783 |
|
| Commercial mortgage |
|
|
624,710 |
|
|
|
613,911 |
|
|
|
624,625 |
|
|
|
638,903 |
|
|
|
657,812 |
|
| Commercial and industrial
loans |
|
|
2,278,133 |
|
|
|
2,266,837 |
|
|
|
2,213,762 |
|
|
|
2,099,917 |
|
|
|
2,048,474 |
|
| Consumer loans |
|
|
52,098 |
|
|
|
49,002 |
|
|
|
38,014 |
|
|
|
37,412 |
|
|
|
37,675 |
|
| Home equity lines of credit |
|
|
34,397 |
|
|
|
33,294 |
|
|
|
34,496 |
|
|
|
36,375 |
|
|
|
36,023 |
|
| Other loans |
|
|
269 |
|
|
|
443 |
|
|
|
304 |
|
|
|
259 |
|
|
|
236 |
|
|
Total loans |
|
|
5,449,214 |
|
|
|
5,379,529 |
|
|
|
5,300,872 |
|
|
|
5,188,629 |
|
|
|
5,169,344 |
|
|
Less: Allowance for credit losses |
|
|
62,704 |
|
|
|
62,250 |
|
|
|
60,829 |
|
|
|
59,683 |
|
|
|
59,022 |
|
|
Net loans |
|
|
5,386,510 |
|
|
|
5,317,279 |
|
|
|
5,240,043 |
|
|
|
5,128,946 |
|
|
|
5,110,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premises and equipment |
|
|
23,814 |
|
|
|
23,782 |
|
|
|
23,831 |
|
|
|
23,781 |
|
|
|
22,804 |
|
| Other real estate owned |
|
|
— |
|
|
|
116 |
|
|
|
116 |
|
|
|
116 |
|
|
|
116 |
|
| Accrued interest receivable |
|
|
20,865 |
|
|
|
19,143 |
|
|
|
25,157 |
|
|
|
17,816 |
|
|
|
23,468 |
|
| Bank owned life insurance |
|
|
47,382 |
|
|
|
47,261 |
|
|
|
47,147 |
|
|
|
47,072 |
|
|
|
46,944 |
|
| Goodwill and other intangible
assets |
|
|
46,624 |
|
|
|
46,979 |
|
|
|
47,333 |
|
|
|
47,698 |
|
|
|
48,082 |
|
| Finance lease right-of-use
assets |
|
|
2,461 |
|
|
|
2,648 |
|
|
|
2,835 |
|
|
|
3,021 |
|
|
|
3,209 |
|
| Operating lease right-of-use
assets |
|
|
13,500 |
|
|
|
12,262 |
|
|
|
12,873 |
|
|
|
13,404 |
|
|
|
14,192 |
|
| Other assets (B) |
|
|
67,572 |
|
|
|
47,848 |
|
|
|
63,587 |
|
|
|
67,753 |
|
|
|
39,528 |
|
|
TOTAL ASSETS |
|
$ |
6,479,700 |
|
|
$ |
6,480,018 |
|
|
$ |
6,353,593 |
|
|
$ |
6,087,261 |
|
|
$ |
6,151,167 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
$ |
1,024,105 |
|
|
$ |
1,096,549 |
|
|
$ |
1,246,066 |
|
|
$ |
1,317,954 |
|
|
$ |
1,043,225 |
|
|
Interest-bearing demand deposits |
|
|
2,816,913 |
|
|
|
2,797,493 |
|
|
|
2,143,611 |
|
|
|
2,149,629 |
|
|
|
2,456,988 |
|
|
Savings |
|
|
120,082 |
|
|
|
132,523 |
|
|
|
157,338 |
|
|
|
166,821 |
|
|
|
168,441 |
|
|
Money market accounts |
|
|
763,026 |
|
|
|
873,329 |
|
|
|
1,228,234 |
|
|
|
1,178,112 |
|
|
|
1,217,516 |
|
|
Certificates of deposit – Retail |
|
|
384,106 |
|
|
|
357,131 |
|
|
|
318,573 |
|
|
|
345,047 |
|
|
|
375,387 |
|
|
Certificates of deposit – Listing Service |
|
|
10,822 |
|
|
|
15,922 |
|
|
|
25,358 |
|
|
|
30,647 |
|
|
|
31,348 |
|
| Subtotal “customer” deposits |
|
|
5,119,054 |
|
|
|
5,272,947 |
|
|
|
5,119,180 |
|
|
|
5,188,210 |
|
|
|
5,292,905 |
|
|
IB Demand – Brokered |
|
|
10,000 |
|
|
|
10,000 |
|
|
|
60,000 |
|
|
|
85,000 |
|
|
|
85,000 |
|
|
Certificates of deposit – Brokered |
|
|
69,443 |
|
|
|
25,895 |
|
|
|
25,984 |
|
|
|
25,974 |
|
|
|
25,963 |
|
| Total deposits |
|
|
5,198,497 |
|
|
|
5,308,842 |
|
|
|
5,205,164 |
|
|
|
5,299,184 |
|
|
|
5,403,868 |
|
| Short-term borrowings |
|
|
485,360 |
|
|
|
378,800 |
|
|
|
379,530 |
|
|
|
32,369 |
|
|
|
— |
|
| Finance lease liability |
|
|
4,071 |
|
|
|
4,385 |
|
|
|
4,696 |
|
|
|
5,003 |
|
|
|
5,305 |
|
| Operating lease liability |
|
|
14,308 |
|
|
|
13,082 |
|
|
|
13,704 |
|
|
|
14,101 |
|
|
|
14,756 |
|
| Subordinated debt, net |
|
|
133,131 |
|
|
|
133,059 |
|
|
|
132,987 |
|
|
|
132,916 |
|
|
|
132,844 |
|
| Due to brokers |
|
|
— |
|
|
|
8,308 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Other liabilities (B) |
|
|
79,264 |
|
|
|
78,584 |
|
|
|
84,532 |
|
|
|
88,174 |
|
|
|
74,070 |
|
|
TOTAL LIABILITIES |
|
|
5,914,631 |
|
|
|
5,925,060 |
|
|
|
5,820,613 |
|
|
|
5,571,747 |
|
|
|
5,630,843 |
|
| Shareholders’ equity |
|
|
565,069 |
|
|
|
554,958 |
|
|
|
532,980 |
|
|
|
515,514 |
|
|
|
520,324 |
|
|
TOTAL LIABILITIES AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
$ |
6,479,700 |
|
|
$ |
6,480,018 |
|
|
$ |
6,353,593 |
|
|
$ |
6,087,261 |
|
|
$ |
6,151,167 |
|
| Assets under management
and / or administration at Peapack-Gladstone
Bank’s Private Wealth Management Division (market
value, not included above-dollars in billions) |
|
$ |
10.7 |
|
|
$ |
10.4 |
|
|
$ |
9.9 |
|
|
$ |
9.3 |
|
|
$ |
9.5 |
|
(A) FHLB means "Federal Home Loan Bank" and FRB
means "Federal Reserve Bank."(B) The change in other assets and
other liabilities was primarily due to the change in the fair value
of our back-to-back swap program.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED BALANCE SHEET
DATA(Dollars in
Thousands)(Unaudited)
|
|
|
As of |
|
|
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
| Asset
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans past due over 90 days and
still accruing |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Nonaccrual loans |
|
|
34,505 |
|
|
|
28,659 |
|
|
|
18,974 |
|
|
|
15,724 |
|
|
|
15,078 |
|
| Other real estate owned |
|
|
— |
|
|
|
116 |
|
|
|
116 |
|
|
|
116 |
|
|
|
116 |
|
|
Total nonperforming assets |
|
$ |
34,505 |
|
|
$ |
28,775 |
|
|
$ |
19,090 |
|
|
$ |
15,840 |
|
|
$ |
15,194 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming loans to total
loans |
|
|
0.63 |
% |
|
|
0.53 |
% |
|
|
0.36 |
% |
|
|
0.30 |
% |
|
|
0.29 |
% |
| Nonperforming assets to total
assets |
|
|
0.53 |
% |
|
|
0.44 |
% |
|
|
0.30 |
% |
|
|
0.26 |
% |
|
|
0.25 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Performing modifications
(A)(B) |
|
$ |
248 |
|
|
$ |
248 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Performing TDRs (C)(D) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
965 |
|
|
$ |
2,761 |
|
|
$ |
2,272 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans past due 30 through 89 days
and still accruing |
|
$ |
14,524 |
|
|
$ |
2,762 |
|
|
$ |
7,592 |
|
|
$ |
7,248 |
|
|
$ |
3,126 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans subject to special
mention |
|
$ |
53,606 |
|
|
$ |
46,566 |
|
|
$ |
64,842 |
|
|
$ |
82,107 |
|
|
$ |
98,787 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Classified loans |
|
$ |
58,655 |
|
|
$ |
58,010 |
|
|
$ |
42,985 |
|
|
$ |
27,507 |
|
|
$ |
27,167 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Individually evaluated loans |
|
$ |
33,867 |
|
|
$ |
27,736 |
|
|
$ |
16,732 |
|
|
$ |
13,047 |
|
|
$ |
13,227 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit losses
("ACL"): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter |
|
$ |
62,250 |
|
|
$ |
60,829 |
|
|
$ |
59,683 |
|
|
$ |
59,022 |
|
|
$ |
58,386 |
|
|
Day one CECL adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Provision for credit losses (E) |
|
|
1,666 |
|
|
|
1,464 |
|
|
|
2,103 |
|
|
|
665 |
|
|
|
646 |
|
|
(Charge-offs)/recoveries, net (F) |
|
|
(1,212 |
) |
|
|
(43 |
) |
|
|
(957 |
) |
|
|
(4 |
) |
|
|
(10 |
) |
|
End of quarter |
|
$ |
62,704 |
|
|
$ |
62,250 |
|
|
$ |
60,829 |
|
|
$ |
59,683 |
|
|
$ |
59,022 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ACL to nonperforming loans |
|
|
181.72 |
% |
|
|
217.21 |
% |
|
|
320.59 |
% |
|
|
379.57 |
% |
|
|
391.44 |
% |
| ACL to total loans |
|
|
1.15 |
% |
|
|
1.16 |
% |
|
|
1.15 |
% |
|
|
1.15 |
% |
|
|
1.14 |
% |
| Collectively evaluated ACL to
total loans (G) |
|
|
1.11 |
% |
|
|
1.11 |
% |
|
|
1.12 |
% |
|
|
1.10 |
% |
|
|
1.09 |
% |
(A) Amounts reflect modifications that are
paying according to modified terms.(B) Excludes modifications
included in nonaccrual loans of $777,000 at June 30, 2023.(C)
Amounts reflect troubled debt restructurings (“TDRs”) that are
paying according to restructured terms.(D) Excludes TDRs included
in nonaccrual loans in the following amounts: $13.4 million at
December 31, 2022; $12.9 million at September 30, 2022 and $13.5
million at June 30, 2022. On January 1, 2023, the Company adopted
Accounting Standards Update 2022-02, which replaced the accounting
and recognition of TDRs.(E) Provision to roll forward the ACL
excludes a provision of $30,000 at June 30, 2023, $49,000 at March
31, 2023, a credit of $173,000 at December 31, 2022, a credit of
$66,000 at September 30, 2022 and a provision of $803,000 at June
30, 2022 related to off-balance sheet commitments.(F) Net
charge-offs for the quarters ended June 30, 2023 and December 31,
2022 included a charge-off of $1.2 million of a previously
established reserve to loans individually evaluated on one
commercial real estate loan.(G) Total ACL less reserves to loans
individually evaluated equals collectively evaluated ACL.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED BALANCE SHEET
DATA(Dollars in
Thousands)(Unaudited)
| |
|
As of |
|
| |
|
June 30, |
|
|
December 31, |
|
|
June 30, |
|
| |
|
2023 |
|
|
2022 |
|
|
2022 |
|
| Capital
Adequacy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity to total assets (A) |
|
|
|
|
8.72 |
% |
|
|
|
|
8.39 |
% |
|
|
|
|
8.46 |
% |
| Tangible equity to tangible
assets (B) |
|
|
|
|
8.06 |
% |
|
|
|
|
7.70 |
% |
|
|
|
|
7.74 |
% |
| Book value per share (C) |
|
|
|
$ |
31.59 |
|
|
|
|
$ |
29.92 |
|
|
|
|
$ |
28.60 |
|
| Tangible book value per share
(D) |
|
|
|
$ |
28.98 |
|
|
|
|
$ |
27.26 |
|
|
|
|
$ |
25.96 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible equity to tangible
assets excluding other comprehensive loss* |
|
|
|
|
9.02 |
% |
|
|
|
|
8.77 |
% |
|
|
|
|
8.62 |
% |
| Tangible book value per share
excluding other comprehensive loss* |
|
|
|
$ |
32.78 |
|
|
|
|
$ |
31.43 |
|
|
|
|
$ |
29.19 |
|
*Excludes other comprehensive loss of $68.0
million for the quarter ended June 30, 2023, $74.2 million for the
quarter ended December 31, 2022, and $58.7 million for the quarter
ended June 30, 2022. See Non-GAAP financial measures reconciliation
included in these tables.
(A) Equity to total assets is calculated as
total shareholders’ equity as a percentage of total assets at
quarter end.(B) Tangible equity and tangible assets are calculated
by excluding the balance of intangible assets from shareholders’
equity and total assets, respectively. Tangible equity as a
percentage of tangible assets at quarter end is calculated by
dividing tangible equity by tangible assets at quarter end. See
Non-GAAP financial measures reconciliation included in these
tables.(C) Book value per common share is calculated by dividing
shareholders’ equity by quarter end common shares outstanding.(D)
Tangible book value per share excludes intangible assets. Tangible
book value per share is calculated by dividing tangible equity by
quarter end common shares outstanding. See Non-GAAP financial
measures reconciliation tables.
| |
|
As of |
| |
|
June 30, |
|
December 31, |
|
June 30, |
| |
|
2023 |
|
|
2022 |
|
|
2022 |
|
| Regulatory Capital –
Holding Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tier I leverage |
|
$ |
584,140 |
|
|
9.06 |
% |
|
$ |
557,627 |
|
|
8.90 |
% |
|
$ |
528,646 |
|
|
8.51 |
% |
| Tier I capital to risk-weighted
assets |
|
|
584,140 |
|
|
11.47 |
|
|
|
557,627 |
|
|
11.02 |
|
|
|
528,646 |
|
|
10.70 |
|
| Common equity tier I capital
ratio to risk-weighted assets |
|
|
584,122 |
|
|
11.47 |
|
|
|
557,609 |
|
|
11.02 |
|
|
|
528,622 |
|
|
10.70 |
|
| Tier I & II capital to
risk-weighted assets |
|
|
773,808 |
|
|
15.20 |
|
|
|
745,197 |
|
|
14.73 |
|
|
|
721,503 |
|
|
14.60 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Regulatory Capital –
Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tier I leverage (E) |
|
$ |
696,399 |
|
|
10.80 |
% |
|
$ |
680,137 |
|
|
10.85 |
% |
|
$ |
646,884 |
|
|
10.42 |
% |
| Tier I capital to risk-weighted
assets (F) |
|
|
696,399 |
|
|
13.69 |
|
|
|
680,137 |
|
|
13.45 |
|
|
|
646,884 |
|
|
13.10 |
|
| Common equity tier I capital
ratio to risk-weighted assets (G) |
|
|
696,381 |
|
|
13.68 |
|
|
|
680,119 |
|
|
13.45 |
|
|
|
646,860 |
|
|
13.10 |
|
| Tier I & II capital to
risk-weighted assets (H) |
|
|
759,935 |
|
|
14.93 |
|
|
|
741,719 |
|
|
14.67 |
|
|
|
706,897 |
|
|
14.31 |
|
(E) Regulatory well capitalized standard
(including capital conservation buffer) = 4.00% ($258 million)(F)
Regulatory well capitalized standard (including capital
conservation buffer) = 8.50% ($433 million)(G) Regulatory well
capitalized standard (including capital conservation buffer) =
7.00% ($356 million)(H) Regulatory well capitalized standard
(including capital conservation buffer) = 10.50% ($534 million)
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONLOANS CLOSED(Dollars
in Thousands)(Unaudited)
| |
|
For the Quarters Ended |
|
| |
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
| |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
| Residential loans retained |
|
$ |
39,358 |
|
|
$ |
30,303 |
|
|
$ |
28,051 |
|
|
$ |
17,885 |
|
|
$ |
35,172 |
|
| Residential loans sold |
|
|
1,072 |
|
|
|
1,477 |
|
|
|
1,840 |
|
|
|
4,898 |
|
|
|
9,886 |
|
|
Total residential loans |
|
|
40,430 |
|
|
|
31,780 |
|
|
|
29,891 |
|
|
|
22,783 |
|
|
|
45,058 |
|
| Commercial real estate |
|
|
43,235 |
|
|
|
18,990 |
|
|
|
6,747 |
|
|
|
7,320 |
|
|
|
13,960 |
|
| Multifamily |
|
|
26,662 |
|
|
|
30,150 |
|
|
|
37,500 |
|
|
|
4,000 |
|
|
|
74,564 |
|
| Commercial (C&I) loans/leases
(A) (B) |
|
|
158,972 |
|
|
|
207,814 |
|
|
|
238,568 |
|
|
|
251,249 |
|
|
|
332,801 |
|
| SBA |
|
|
13,713 |
|
|
|
9,950 |
|
|
|
17,431 |
|
|
|
5,682 |
|
|
|
10,534 |
|
| Wealth lines of credit (A) |
|
|
3,950 |
|
|
|
23,225 |
|
|
|
7,700 |
|
|
|
4,450 |
|
|
|
12,575 |
|
|
Total commercial loans |
|
|
246,532 |
|
|
|
290,129 |
|
|
|
307,946 |
|
|
|
272,701 |
|
|
|
444,434 |
|
| Installment loans |
|
|
4,587 |
|
|
|
12,086 |
|
|
|
1,845 |
|
|
|
1,253 |
|
|
|
100 |
|
| Home equity lines of credit
(A) |
|
|
6,107 |
|
|
|
2,921 |
|
|
|
3,815 |
|
|
|
5,614 |
|
|
|
3,897 |
|
|
Total loans closed |
|
$ |
297,656 |
|
|
$ |
336,916 |
|
|
$ |
343,497 |
|
|
$ |
302,351 |
|
|
$ |
493,489 |
|
| |
|
For the Six Months Ended |
|
| |
|
June 30, |
|
|
June 30, |
|
| |
|
2023 |
|
|
2022 |
|
| Residential loans retained |
|
$ |
69,661 |
|
|
$ |
76,719 |
|
| Residential loans sold |
|
|
2,549 |
|
|
|
25,555 |
|
|
Total residential loans |
|
|
72,210 |
|
|
|
102,274 |
|
| Commercial real estate |
|
|
62,225 |
|
|
|
39,535 |
|
| Multifamily |
|
|
56,812 |
|
|
|
340,214 |
|
| Commercial (C&I) loans (A)
(B) |
|
|
366,786 |
|
|
|
475,830 |
|
| SBA |
|
|
23,663 |
|
|
|
36,627 |
|
| Wealth lines of credit (A) |
|
|
27,175 |
|
|
|
21,975 |
|
|
Total commercial loans |
|
|
536,661 |
|
|
|
914,181 |
|
| Installment loans |
|
|
16,673 |
|
|
|
231 |
|
| Home equity lines of credit
(A) |
|
|
9,028 |
|
|
|
5,238 |
|
|
Total loans closed |
|
$ |
634,572 |
|
|
$ |
1,021,924 |
|
(A) Includes loans and lines of credit that
closed in the period but not necessarily funded.(B) Includes
equipment finance.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONAVERAGE BALANCE
SHEET(Tax-Equivalent Basis, Dollars in
Thousands)(Unaudited)
| |
|
For the Three Months Ended |
|
|
|
|
June 30, 2023 |
|
|
June 30, 2022 |
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
| ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
806,447 |
|
|
$ |
4,900 |
|
|
|
2.43 |
% |
|
$ |
774,145 |
|
|
$ |
3,535 |
|
|
|
1.83 |
% |
|
Tax-exempt (A) (B) |
|
|
1,858 |
|
|
|
20 |
|
|
|
4.31 |
|
|
|
4,193 |
|
|
|
40 |
|
|
|
3.82 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
557,575 |
|
|
|
4,942 |
|
|
|
3.55 |
|
|
|
513,666 |
|
|
|
3,630 |
|
|
|
2.83 |
|
|
Commercial mortgages |
|
|
2,504,268 |
|
|
|
26,839 |
|
|
|
4.29 |
|
|
|
2,552,128 |
|
|
|
21,185 |
|
|
|
3.32 |
|
|
Commercial |
|
|
2,241,817 |
|
|
|
35,457 |
|
|
|
6.33 |
|
|
|
2,024,457 |
|
|
|
19,348 |
|
|
|
3.82 |
|
|
Commercial construction |
|
|
6,977 |
|
|
|
165 |
|
|
|
9.46 |
|
|
|
16,186 |
|
|
|
162 |
|
|
|
4.00 |
|
|
Installment |
|
|
51,269 |
|
|
|
841 |
|
|
|
6.56 |
|
|
|
37,235 |
|
|
|
297 |
|
|
|
3.19 |
|
|
Home equity |
|
|
33,650 |
|
|
|
633 |
|
|
|
7.52 |
|
|
|
38,061 |
|
|
|
331 |
|
|
|
3.48 |
|
|
Other |
|
|
271 |
|
|
|
7 |
|
|
|
10.33 |
|
|
|
258 |
|
|
|
6 |
|
|
|
9.30 |
|
|
Total loans |
|
|
5,395,827 |
|
|
|
68,884 |
|
|
|
5.11 |
|
|
|
5,181,991 |
|
|
|
44,959 |
|
|
|
3.47 |
|
|
Federal funds sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Interest-earning deposits |
|
|
141,968 |
|
|
|
1,451 |
|
|
|
4.09 |
|
|
|
164,066 |
|
|
|
314 |
|
|
|
0.77 |
|
|
Total interest-earning assets |
|
|
6,346,100 |
|
|
|
75,255 |
|
|
|
4.74 |
% |
|
|
6,124,395 |
|
|
|
48,848 |
|
|
|
3.19 |
% |
| Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
7,800 |
|
|
|
|
|
|
|
|
|
9,715 |
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(63,045 |
) |
|
|
|
|
|
|
|
|
(59,629 |
) |
|
|
|
|
|
|
|
Premises and equipment |
|
|
23,745 |
|
|
|
|
|
|
|
|
|
22,952 |
|
|
|
|
|
|
|
|
Other assets |
|
|
85,969 |
|
|
|
|
|
|
|
|
|
96,232 |
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
54,469 |
|
|
|
|
|
|
|
|
|
69,270 |
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,400,569 |
|
|
|
|
|
|
|
|
$ |
6,193,665 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
2,834,140 |
|
|
$ |
22,219 |
|
|
|
3.14 |
% |
|
$ |
2,493,668 |
|
|
$ |
2,330 |
|
|
|
0.37 |
% |
|
Money markets |
|
|
788,745 |
|
|
|
3,853 |
|
|
|
1.95 |
|
|
|
1,234,564 |
|
|
|
579 |
|
|
|
0.19 |
|
|
Savings |
|
|
125,555 |
|
|
|
45 |
|
|
|
0.14 |
|
|
|
163,062 |
|
|
|
5 |
|
|
|
0.01 |
|
|
Certificates of deposit – retail |
|
|
385,211 |
|
|
|
2,462 |
|
|
|
2.56 |
|
|
|
411,202 |
|
|
|
651 |
|
|
|
0.63 |
|
|
Subtotal interest-bearing deposits |
|
|
4,133,651 |
|
|
|
28,579 |
|
|
|
2.77 |
|
|
|
4,302,496 |
|
|
|
3,565 |
|
|
|
0.33 |
|
|
Interest-bearing demand – brokered |
|
|
10,000 |
|
|
|
125 |
|
|
|
5.00 |
|
|
|
85,000 |
|
|
|
364 |
|
|
|
1.71 |
|
|
Certificates of deposit – brokered |
|
|
26,165 |
|
|
|
196 |
|
|
|
3.00 |
|
|
|
33,470 |
|
|
|
261 |
|
|
|
3.12 |
|
|
Total interest-bearing deposits |
|
|
4,169,816 |
|
|
|
28,900 |
|
|
|
2.77 |
|
|
|
4,420,966 |
|
|
|
4,190 |
|
|
|
0.38 |
|
|
Borrowings |
|
|
413,961 |
|
|
|
5,384 |
|
|
|
5.20 |
|
|
|
3,873 |
|
|
|
10 |
|
|
|
1.03 |
|
|
Capital lease obligation |
|
|
4,187 |
|
|
|
50 |
|
|
|
4.78 |
|
|
|
5,406 |
|
|
|
64 |
|
|
|
4.74 |
|
|
Subordinated debt |
|
|
133,090 |
|
|
|
1,597 |
|
|
|
4.80 |
|
|
|
132,803 |
|
|
|
1,363 |
|
|
|
4.11 |
|
|
Total interest-bearing liabilities |
|
|
4,721,054 |
|
|
|
35,931 |
|
|
|
3.04 |
% |
|
|
4,563,048 |
|
|
|
5,627 |
|
|
|
0.49 |
% |
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
1,033,176 |
|
|
|
|
|
|
|
|
|
1,029,538 |
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
88,911 |
|
|
|
|
|
|
|
|
|
79,882 |
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,122,087 |
|
|
|
|
|
|
|
|
|
1,109,420 |
|
|
|
|
|
|
|
| Shareholders’ equity |
|
|
557,428 |
|
|
|
|
|
|
|
|
|
521,197 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
6,400,569 |
|
|
|
|
|
|
|
|
$ |
6,193,665 |
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
39,324 |
|
|
|
|
|
|
|
|
$ |
43,221 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
1.70 |
% |
|
|
|
|
|
|
|
|
2.70 |
% |
|
Net interest margin (D) |
|
|
|
|
|
|
|
|
2.49 |
% |
|
|
|
|
|
|
|
|
2.83 |
% |
(A) Average balances for available for sale
securities are based on amortized cost.(B) Interest income is
presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual
loans.(D) Net interest income on a tax-equivalent basis as a
percentage of total average interest-earning assets.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONAVERAGE BALANCE
SHEET(Tax-Equivalent Basis, Dollars in
Thousands)(Unaudited)
| |
|
For the Three Months Ended |
|
|
|
|
June 30, 2023 |
|
|
March 31, 2023 |
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
| ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
806,447 |
|
|
$ |
4,900 |
|
|
|
2.43 |
% |
|
$ |
791,125 |
|
|
$ |
4,471 |
|
|
|
2.26 |
% |
|
Tax-exempt (A) (B) |
|
|
1,858 |
|
|
|
20 |
|
|
|
4.31 |
|
|
|
1,864 |
|
|
|
19 |
|
|
|
4.08 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
557,575 |
|
|
|
4,942 |
|
|
|
3.55 |
|
|
|
529,570 |
|
|
|
4,283 |
|
|
|
3.24 |
|
|
Commercial mortgages |
|
|
2,504,268 |
|
|
|
26,839 |
|
|
|
4.29 |
|
|
|
2,478,645 |
|
|
|
25,917 |
|
|
|
4.18 |
|
|
Commercial |
|
|
2,241,817 |
|
|
|
35,457 |
|
|
|
6.33 |
|
|
|
2,201,801 |
|
|
|
33,369 |
|
|
|
6.06 |
|
|
Commercial construction |
|
|
6,977 |
|
|
|
165 |
|
|
|
9.46 |
|
|
|
4,296 |
|
|
|
88 |
|
|
|
8.19 |
|
|
Installment |
|
|
51,269 |
|
|
|
841 |
|
|
|
6.56 |
|
|
|
39,945 |
|
|
|
609 |
|
|
|
6.10 |
|
|
Home equity |
|
|
33,650 |
|
|
|
633 |
|
|
|
7.52 |
|
|
|
33,839 |
|
|
|
591 |
|
|
|
6.99 |
|
|
Other |
|
|
271 |
|
|
|
7 |
|
|
|
10.33 |
|
|
|
276 |
|
|
|
7 |
|
|
|
10.14 |
|
|
Total loans |
|
|
5,395,827 |
|
|
|
68,884 |
|
|
|
5.11 |
|
|
|
5,288,372 |
|
|
|
64,864 |
|
|
|
4.91 |
|
|
Federal funds sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Interest-earning deposits |
|
|
141,968 |
|
|
|
1,451 |
|
|
|
4.09 |
|
|
|
163,225 |
|
|
|
1,538 |
|
|
|
3.77 |
|
|
Total interest-earning assets |
|
|
6,346,100 |
|
|
|
75,255 |
|
|
|
4.74 |
% |
|
|
6,244,586 |
|
|
|
70,892 |
|
|
|
4.54 |
% |
| Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
7,800 |
|
|
|
|
|
|
|
|
|
10,449 |
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(63,045 |
) |
|
|
|
|
|
|
|
|
(61,567 |
) |
|
|
|
|
|
|
|
Premises and equipment |
|
|
23,745 |
|
|
|
|
|
|
|
|
|
23,927 |
|
|
|
|
|
|
|
|
Other assets |
|
|
85,969 |
|
|
|
|
|
|
|
|
|
84,800 |
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
54,469 |
|
|
|
|
|
|
|
|
|
57,609 |
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,400,569 |
|
|
|
|
|
|
|
|
$ |
6,302,195 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
2,834,140 |
|
|
$ |
22,219 |
|
|
|
3.14 |
% |
|
$ |
2,567,426 |
|
|
$ |
16,481 |
|
|
|
2.57 |
% |
|
Money markets |
|
|
788,745 |
|
|
|
3,853 |
|
|
|
1.95 |
|
|
|
1,124,047 |
|
|
|
4,874 |
|
|
|
1.73 |
|
|
Savings |
|
|
125,555 |
|
|
|
45 |
|
|
|
0.14 |
|
|
|
141,285 |
|
|
|
28 |
|
|
|
0.08 |
|
|
Certificates of deposit – retail |
|
|
385,211 |
|
|
|
2,462 |
|
|
|
2.56 |
|
|
|
357,953 |
|
|
|
1,729 |
|
|
|
1.93 |
|
|
Subtotal interest-bearing deposits |
|
|
4,133,651 |
|
|
|
28,579 |
|
|
|
2.77 |
|
|
|
4,190,711 |
|
|
|
23,112 |
|
|
|
2.21 |
|
|
Interest-bearing demand – brokered |
|
|
10,000 |
|
|
|
125 |
|
|
|
5.00 |
|
|
|
26,111 |
|
|
|
208 |
|
|
|
3.19 |
|
|
Certificates of deposit – brokered |
|
|
26,165 |
|
|
|
196 |
|
|
|
3.00 |
|
|
|
25,961 |
|
|
|
205 |
|
|
|
3.16 |
|
|
Total interest-bearing deposits |
|
|
4,169,816 |
|
|
|
28,900 |
|
|
|
2.77 |
|
|
|
4,242,783 |
|
|
|
23,525 |
|
|
|
2.22 |
|
|
Borrowings |
|
|
413,961 |
|
|
|
5,384 |
|
|
|
5.20 |
|
|
|
104,915 |
|
|
|
1,296 |
|
|
|
4.94 |
|
|
Capital lease obligation |
|
|
4,187 |
|
|
|
50 |
|
|
|
4.78 |
|
|
|
4,493 |
|
|
|
53 |
|
|
|
4.72 |
|
|
Subordinated debt |
|
|
133,090 |
|
|
|
1,597 |
|
|
|
4.80 |
|
|
|
133,017 |
|
|
|
1,639 |
|
|
|
4.93 |
|
|
Total interest-bearing liabilities |
|
|
4,721,054 |
|
|
|
35,931 |
|
|
|
3.04 |
% |
|
|
4,485,208 |
|
|
|
26,513 |
|
|
|
2.36 |
% |
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
1,033,176 |
|
|
|
|
|
|
|
|
|
1,176,495 |
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
88,911 |
|
|
|
|
|
|
|
|
|
96,631 |
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,122,087 |
|
|
|
|
|
|
|
|
|
1,273,126 |
|
|
|
|
|
|
|
| Shareholders’ equity |
|
|
557,428 |
|
|
|
|
|
|
|
|
|
543,861 |
|
|
|
|
|
|
|
| Total liabilities and
shareholders’ equity |
|
$ |
6,400,569 |
|
|
|
|
|
|
|
|
$ |
6,302,195 |
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
39,324 |
|
|
|
|
|
|
|
|
$ |
44,379 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
1.70 |
% |
|
|
|
|
|
|
|
|
2.18 |
% |
|
Net interest margin (D) |
|
|
|
|
|
|
|
|
2.49 |
% |
|
|
|
|
|
|
|
|
2.88 |
% |
(A) Average balances for available for sale
securities are based on amortized cost.(B) Interest income is
presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual
loans.(D) Net interest income on a tax-equivalent basis as a
percentage of total average interest-earning assets.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONAVERAGE BALANCE
SHEET(Tax-Equivalent Basis, Dollars in
Thousands)(Unaudited)
| |
|
For the Six Months Ended |
|
|
|
|
June 30, 2023 |
|
|
June 30, 2022 |
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
| ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
798,828 |
|
|
$ |
9,371 |
|
|
|
2.35 |
% |
|
$ |
851,059 |
|
|
$ |
7,142 |
|
|
|
1.68 |
% |
|
Tax-exempt (A) (B) |
|
|
1,861 |
|
|
|
38 |
|
|
|
4.08 |
|
|
|
4,446 |
|
|
|
88 |
|
|
|
3.96 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
543,650 |
|
|
|
9,225 |
|
|
|
3.39 |
|
|
|
511,051 |
|
|
|
7,286 |
|
|
|
2.85 |
|
|
Commercial mortgages |
|
|
2,491,527 |
|
|
|
52,756 |
|
|
|
4.23 |
|
|
|
2,453,130 |
|
|
|
39,360 |
|
|
|
3.21 |
|
|
Commercial |
|
|
2,221,921 |
|
|
|
68,827 |
|
|
|
6.20 |
|
|
|
2,016,504 |
|
|
|
37,550 |
|
|
|
3.72 |
|
|
Commercial construction |
|
|
5,644 |
|
|
|
253 |
|
|
|
8.97 |
|
|
|
17,131 |
|
|
|
322 |
|
|
|
3.76 |
|
|
Installment |
|
|
45,638 |
|
|
|
1,450 |
|
|
|
6.35 |
|
|
|
35,863 |
|
|
|
552 |
|
|
|
3.08 |
|
|
Home equity |
|
|
33,744 |
|
|
|
1,223 |
|
|
|
7.25 |
|
|
|
39,147 |
|
|
|
655 |
|
|
|
3.35 |
|
|
Other |
|
|
273 |
|
|
|
14 |
|
|
|
10.26 |
|
|
|
271 |
|
|
|
11 |
|
|
|
8.12 |
|
|
Total loans |
|
|
5,342,397 |
|
|
|
133,748 |
|
|
|
5.01 |
|
|
|
5,073,097 |
|
|
|
85,736 |
|
|
|
3.38 |
|
|
Federal funds sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0 |
|
|
|
— |
|
|
|
- |
|
|
Interest-earning deposits |
|
|
152,538 |
|
|
|
2,989 |
|
|
|
3.92 |
|
|
|
145,696 |
|
|
|
343 |
|
|
|
0.47 |
|
|
Total interest-earning assets |
|
|
6,295,624 |
|
|
|
146,146 |
|
|
|
4.64 |
% |
|
|
6,074,298 |
|
|
|
93,309 |
|
|
|
3.07 |
% |
| Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
9,117 |
|
|
|
|
|
|
|
|
|
8,591 |
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(62,310 |
) |
|
|
|
|
|
|
|
|
(60,311 |
) |
|
|
|
|
|
|
|
Premises and equipment |
|
|
23,835 |
|
|
|
|
|
|
|
|
|
22,987 |
|
|
|
|
|
|
|
|
Other assets |
|
|
86,288 |
|
|
|
|
|
|
|
|
|
132,266 |
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
56,930 |
|
|
|
|
|
|
|
|
|
103,533 |
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,352,554 |
|
|
|
|
|
|
|
|
$ |
6,177,831 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
2,701,519 |
|
|
$ |
38,700 |
|
|
|
2.87 |
% |
|
$ |
2,412,456 |
|
|
$ |
3,568 |
|
|
|
0.30 |
% |
|
Money markets |
|
|
955,470 |
|
|
|
8,726 |
|
|
|
1.83 |
|
|
|
1,264,167 |
|
|
|
1,118 |
|
|
|
0.18 |
|
|
Savings |
|
|
133,377 |
|
|
|
74 |
|
|
|
0.11 |
|
|
|
159,826 |
|
|
|
10 |
|
|
|
0.01 |
|
|
Certificates of deposit – retail |
|
|
371,657 |
|
|
|
4,191 |
|
|
|
2.26 |
|
|
|
418,642 |
|
|
|
1,257 |
|
|
|
0.60 |
|
|
Subtotal interest-bearing deposits |
|
|
4,162,023 |
|
|
|
51,691 |
|
|
|
2.48 |
|
|
|
4,255,091 |
|
|
|
5,953 |
|
|
|
0.28 |
|
|
Interest-bearing demand – brokered |
|
|
18,011 |
|
|
|
333 |
|
|
|
3.70 |
|
|
|
85,000 |
|
|
|
737 |
|
|
|
1.73 |
|
|
Certificates of deposit – brokered |
|
|
26,064 |
|
|
|
401 |
|
|
|
3.08 |
|
|
|
33,646 |
|
|
|
522 |
|
|
|
3.10 |
|
|
Total interest-bearing deposits |
|
|
4,206,098 |
|
|
|
52,425 |
|
|
|
2.49 |
|
|
|
4,373,737 |
|
|
|
7,212 |
|
|
|
0.33 |
|
|
Borrowings |
|
|
260,292 |
|
|
|
6,680 |
|
|
|
5.13 |
|
|
|
29,550 |
|
|
|
74 |
|
|
|
0.50 |
|
|
Capital lease obligation |
|
|
4,339 |
|
|
|
103 |
|
|
|
4.75 |
|
|
|
5,533 |
|
|
|
132 |
|
|
|
4.77 |
|
|
Subordinated debt |
|
|
133,053 |
|
|
|
3,236 |
|
|
|
4.86 |
|
|
|
132,767 |
|
|
|
2,727 |
|
|
|
4.11 |
|
|
Total interest-bearing liabilities |
|
|
4,603,782 |
|
|
|
62,444 |
|
|
|
2.71 |
% |
|
|
4,541,587 |
|
|
|
10,145 |
|
|
|
0.45 |
% |
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
1,104,440 |
|
|
|
|
|
|
|
|
|
1,004,055 |
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
93,650 |
|
|
|
|
|
|
|
|
|
99,565 |
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,198,090 |
|
|
|
|
|
|
|
|
|
1,103,620 |
|
|
|
|
|
|
|
| Shareholders’ equity |
|
|
550,682 |
|
|
|
|
|
|
|
|
|
532,624 |
|
|
|
|
|
|
|
| Total liabilities and
shareholders’ equity |
|
$ |
6,352,554 |
|
|
|
|
|
|
|
|
$ |
6,177,831 |
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
83,702 |
|
|
|
|
|
|
|
|
$ |
83,164 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
1.93 |
% |
|
|
|
|
|
|
|
|
2.62 |
% |
|
Net interest margin (D) |
|
|
|
|
|
|
|
|
2.68 |
% |
|
|
|
|
|
|
|
|
2.76 |
% |
(A) Average balances for available for sale
securities are based on amortized cost.(B) Interest income is
presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual
loans.(D) Net interest income on a tax-equivalent basis as a
percentage of total average interest-earning assets.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONNON-GAAP FINANCIAL MEASURES
RECONCILIATION
Tangible book value per share and tangible
equity as a percentage of tangible assets at period end are
non-GAAP financial measures derived from GAAP-based amounts. We
calculate tangible equity and tangible assets by excluding the
balance of intangible assets from shareholders’ equity and total
assets, respectively. We calculate tangible book value per share by
dividing tangible equity by common shares outstanding, as compared
to book value per common share, which we calculate by dividing
shareholders’ equity by common shares outstanding at period end. We
calculate tangible equity as a percentage of tangible assets at
period end by dividing tangible equity by tangible assets at period
end. We believe that this is consistent with the treatment by bank
regulatory agencies, which exclude intangible assets from the
calculation of risk-based capital ratios.
The efficiency ratio is a non-GAAP measure of
expense control relative to recurring revenue. We calculate the
efficiency ratio by dividing total noninterest expenses, excluding
other real estate owned provision, as determined under GAAP, by net
interest income and total noninterest income as determined under
GAAP, but excluding net gains/(losses) on loans held for sale at
lower of cost or fair value and excluding net gains on securities
from this calculation, which we refer to below as recurring
revenue. We believe that this provides a reasonable measure of core
expenses relative to core revenue.
We believe these non-GAAP financial measures
provide information that is important to investors and useful in
understanding our financial position, results and ratios because
our management internally assesses our performance based, in part,
on these measures. However, these non-GAAP financial measures are
supplemental and are not a substitute for an analysis based on GAAP
measures. As other companies may use different calculations for
these measures, this presentation may not be comparable to other
similarly titles measures reported by other companies. A
reconciliation of the non-GAAP measures of tangible common equity,
tangible book value per share and efficiency ratio to the
underlying GAAP numbers is set forth below.
(Dollars in thousands, except per share
data)
| |
|
Three Months Ended |
|
| |
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
| Tangible Book Value
Per Share |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
| Shareholders’ equity |
|
$ |
565,069 |
|
|
$ |
554,958 |
|
|
$ |
532,980 |
|
|
$ |
515,514 |
|
|
$ |
520,324 |
|
| Less: Intangible assets, net |
|
|
46,624 |
|
|
|
46,979 |
|
|
|
47,333 |
|
|
|
47,698 |
|
|
|
48,082 |
|
|
Tangible equity |
|
$ |
518,445 |
|
|
$ |
507,979 |
|
|
$ |
485,647 |
|
|
$ |
467,816 |
|
|
$ |
472,242 |
|
|
Less: other comprehensive loss |
|
|
(67,997 |
) |
|
|
(67,445 |
) |
|
|
(74,211 |
) |
|
|
(74,983 |
) |
|
|
(58,727 |
) |
|
Tangible equity excluding other comprehensive loss |
|
$ |
586,442 |
|
|
$ |
575,424 |
|
|
$ |
559,858 |
|
|
$ |
542,799 |
|
|
$ |
530,969 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Period end shares
outstanding |
|
|
17,887,895 |
|
|
|
18,014,757 |
|
|
|
17,813,451 |
|
|
|
17,920,571 |
|
|
|
18,190,009 |
|
| Tangible book value per
share |
|
$ |
28.98 |
|
|
$ |
28.20 |
|
|
$ |
27.26 |
|
|
$ |
26.10 |
|
|
$ |
25.96 |
|
| Tangible book value per share
excluding other comprehensive loss |
|
$ |
32.78 |
|
|
$ |
31.94 |
|
|
$ |
31.43 |
|
|
$ |
30.29 |
|
|
$ |
29.19 |
|
| Book value per share |
|
|
31.59 |
|
|
|
30.81 |
|
|
|
29.92 |
|
|
|
28.77 |
|
|
|
28.60 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Equity to
Tangible Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,479,700 |
|
|
$ |
6,480,018 |
|
|
$ |
6,353,593 |
|
|
$ |
6,087,261 |
|
|
$ |
6,151,167 |
|
| Less: Intangible assets, net |
|
|
46,624 |
|
|
|
46,979 |
|
|
|
47,333 |
|
|
|
47,698 |
|
|
|
48,082 |
|
|
Tangible assets |
|
$ |
6,433,076 |
|
|
$ |
6,433,039 |
|
|
$ |
6,306,260 |
|
|
$ |
6,039,563 |
|
|
$ |
6,103,085 |
|
|
Less: other comprehensive loss |
|
|
(67,997 |
) |
|
|
(67,445 |
) |
|
|
(74,211 |
) |
|
|
(74,983 |
) |
|
|
(58,727 |
) |
|
Tangible assets excluding other comprehensive loss |
|
$ |
6,501,073 |
|
|
$ |
6,500,484 |
|
|
$ |
6,380,471 |
|
|
$ |
6,114,546 |
|
|
$ |
6,161,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible equity to tangible
assets |
|
|
8.06 |
% |
|
|
7.90 |
% |
|
|
7.70 |
% |
|
|
7.75 |
% |
|
|
7.74 |
% |
| Tangible equity to tangible
assets excluding other comprehensive loss |
|
|
9.02 |
% |
|
|
8.85 |
% |
|
|
8.77 |
% |
|
|
8.88 |
% |
|
|
8.62 |
% |
| Equity to assets |
|
|
8.72 |
% |
|
|
8.56 |
% |
|
|
8.39 |
% |
|
|
8.47 |
% |
|
|
8.46 |
% |
(Dollars in thousands, except per share data)
| |
|
Three Months Ended |
|
| |
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
| Return on Average
Tangible Equity |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
| Net income |
|
$ |
13,145 |
|
|
$ |
18,355 |
|
|
$ |
20,579 |
|
|
$ |
20,126 |
|
|
$ |
20,100 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average shareholders’ equity |
|
$ |
557,428 |
|
|
$ |
543,861 |
|
|
$ |
523,406 |
|
|
$ |
529,160 |
|
|
$ |
521,197 |
|
| Less: Average intangible assets,
net |
|
|
46,828 |
|
|
|
47,189 |
|
|
|
47,531 |
|
|
|
47,922 |
|
|
|
48,291 |
|
|
Average tangible equity |
|
$ |
510,600 |
|
|
$ |
496,672 |
|
|
$ |
475,875 |
|
|
$ |
481,238 |
|
|
$ |
472,906 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average tangible common
equity |
|
|
10.30 |
% |
|
|
14.78 |
% |
|
|
17.30 |
% |
|
|
16.73 |
% |
|
|
17.00 |
% |
| |
|
For the Six Months Ended |
|
| |
|
June 30, |
|
|
June 30, |
|
| Return on Average
Tangible Equity |
|
2023 |
|
|
2022 |
|
| Net income |
|
$ |
31,500 |
|
|
$ |
33,541 |
|
| |
|
|
|
|
|
|
| Average shareholders’ equity |
|
$ |
550,682 |
|
|
$ |
532,624 |
|
| Less: Average intangible assets,
net |
|
|
47,007 |
|
|
|
48,503 |
|
|
Average tangible equity |
|
|
503,675 |
|
|
|
484,121 |
|
| |
|
|
|
|
|
|
| Return on average tangible common
equity |
|
|
12.51 |
% |
|
|
13.86 |
% |
(Dollars in thousands, except per share data)
| |
|
Three Months Ended |
|
| |
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
| Efficiency
Ratio |
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
| Net interest income |
|
$ |
38,921 |
|
|
$ |
43,978 |
|
|
$ |
48,040 |
|
|
$ |
45,525 |
|
|
$ |
42,893 |
|
| Total other income |
|
|
18,575 |
|
|
|
18,059 |
|
|
|
16,812 |
|
|
|
16,383 |
|
|
|
18,508 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value adjustment for CRA
equity security |
|
|
209 |
|
|
|
(209 |
) |
|
|
(28 |
) |
|
|
571 |
|
|
|
475 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on sale of property |
|
|
— |
|
|
|
— |
|
|
|
(275 |
) |
|
|
— |
|
|
|
— |
|
| Income from life insurance
proceeds |
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
|
|
— |
|
|
|
— |
|
| Total recurring revenue |
|
|
57,705 |
|
|
|
61,828 |
|
|
|
64,524 |
|
|
|
62,479 |
|
|
|
61,876 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
|
37,692 |
|
|
|
35,574 |
|
|
|
33,412 |
|
|
|
33,560 |
|
|
|
32,659 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accelerated Expense for
Retirement |
|
|
1,665 |
|
|
|
300 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Branch Closure Expense |
|
|
— |
|
|
|
175 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Total operating expense |
|
|
36,027 |
|
|
|
35,099 |
|
|
|
33,412 |
|
|
|
33,560 |
|
|
|
32,659 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio |
|
|
62.43 |
% |
|
|
56.77 |
% |
|
|
51.78 |
% |
|
|
53.71 |
% |
|
|
52.78 |
% |
| |
|
For the Six Months Ended |
|
| |
|
June 30, |
|
|
June 30, |
|
| Efficiency
Ratio |
|
2023 |
|
|
2022 |
|
| Net interest income |
|
$ |
82,899 |
|
|
$ |
82,515 |
|
| Total other income |
|
|
36,634 |
|
|
|
33,222 |
|
| Add: |
|
|
|
|
|
|
| Fair value adjustment for CRA
equity security |
|
|
— |
|
|
|
1,157 |
|
| Less: |
|
|
|
|
|
|
| Loss on securities sale, net |
|
|
— |
|
|
|
6,609 |
|
| Total recurring revenue |
|
|
119,533 |
|
|
|
123,503 |
|
| |
|
|
|
|
|
|
| Operating expenses |
|
|
73,266 |
|
|
|
66,828 |
|
| Less: |
|
|
|
|
|
|
| Swap valuation allowance |
|
|
— |
|
|
|
673 |
|
| Accelerated Expense for
Retirement |
|
|
1,965 |
|
|
|
— |
|
| Branch Closure Expense |
|
|
175 |
|
|
|
— |
|
| Severance expense |
|
|
— |
|
|
|
1,476 |
|
| Total operating expense |
|
|
71,126 |
|
|
|
64,679 |
|
| |
|
|
|
|
|
|
| Efficiency ratio |
|
|
59.50 |
% |
|
|
52.37 |
% |
Peapack Gladstone Financ... (NASDAQ:PGC)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Peapack Gladstone Financ... (NASDAQ:PGC)
Gráfica de Acción Histórica
De May 2023 a May 2024
