via NewMediaWire -- Peapack-Gladstone Financial Corporation
(
NASDAQ Global Select Market: PGC) (the “Company”)
announces its first quarter 2021 results.
This earnings release should be read in
conjunction with the Company’s Q1 2021 Investor Update (and
Supplemental Financial Information), 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 $49.61
million, net income of $13.18 million and diluted earnings per
share (“EPS”) of $0.67 for the quarter ended March 31, 2021,
compared to $46.27 million, $1.37 million and $0.07, respectively,
for the same three month period ended March 31, 2020.
The 2021 quarter included increased noninterest
income, principally wealth management income and income from
capital markets activities (which includes mortgage banking income,
loan level back-to-back swap income, SBA loan income, and corporate
advisory fee income). The 2021 quarter also included a
significantly reduced provision for loan losses when compared to
the same quarter last year. The 2021 quarter included a $225,000
provision while the 2020 quarter included a $20.0 million
provision, which was due to the environment at that time created by
the COVID-19 pandemic, which led to increased qualitative loss
factors when calculating the allowance for loan losses.
The 2021 three-month period also included $1.5
million of severance expense related to certain staff
reorganizations within several areas of the Bank. The 2020
three-month period included a tax benefit of $3.2 million caused by
the changes in the treatment of tax net operating losses (“NOL”)
under the provisions of the Coronavirus Aid, Relief, and Economic
Security (“CARES”) Act.
As previously disclosed, on January 28, 2021,
the Company authorized the repurchase of up to 948,735 shares, or
approximately 5% of its outstanding shares. During the first
quarter of 2021 the Company purchased 158,033 shares at an average
price of $27.71 for a total cost of $4.4 million under this
program.
Douglas L. Kennedy, President and CEO, said,
“Our capital is strong and we believe that purchasing the Company’s
stock is an opportunity for us to effectively manage our excess
capital, while taking advantage of the Company’s discounted
valuation relative to peers.”
Mr. Kennedy also said, “During the first quarter
of 2021 the Company participated in the 2021 round of the Paycheck
Protection Program (“PPP”) which created much needed funding to
qualifying small businesses and organizations. We are proud
to say that during the quarter we assisted with over $142 million
of PPP loans - $47 million processed, closed and funded by the
Bank, and another $95 million referred directly to a third party
for processing and funding. The Company plans to sell the $46
million of loans in the second quarter to the same third party, who
is extremely proficient in the servicing and forgiveness processes
for PPP loans.”
EXECUTIVE SUMMARY:
The following tables summarize specified
financial measures for the periods shown.
March 2021 Quarter Compared to Prior Year
Quarter
|
|
Three Months Ended |
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
|
March 31, |
|
|
Increase/ |
|
(Dollars
in millions, except per share data) |
|
2021 |
|
|
|
2020 |
|
|
(Decrease) |
|
Net interest
income |
|
$ |
31.79 |
|
|
|
$ |
31.75 |
|
|
$ |
0.04 |
|
|
|
0 |
% |
Wealth management
fee income (A) |
|
|
12.13 |
|
|
|
|
9.96 |
|
|
|
2.17 |
|
|
|
22 |
|
Capital markets
activity (B) |
|
|
3.57 |
|
|
|
|
2.84 |
|
|
|
0.73 |
|
|
|
26 |
|
Other income |
|
|
2.12 |
|
|
|
|
1.72 |
|
|
|
0.40 |
|
|
|
23 |
|
Total other
income |
|
|
17.82 |
|
|
|
|
14.52 |
|
|
|
3.30 |
|
|
|
23 |
|
Operating expenses
(C) |
|
|
31.59 |
|
|
|
|
28.24 |
|
|
|
3.35 |
|
|
|
12 |
|
Pretax income
before provision for loan losses |
|
|
18.02 |
|
|
|
|
18.03 |
|
|
|
(0.01 |
) |
|
|
(0 |
) |
Provision for loan
and lease losses (D) |
|
|
0.23 |
|
|
|
|
20.00 |
|
|
|
(19.77 |
) |
|
|
(99 |
) |
Pretax income |
|
|
17.79 |
|
|
|
|
(1.97 |
) |
|
|
19.76 |
|
|
N/A |
|
Income tax
expense/(benefit) (E) |
|
|
4.61 |
|
|
|
|
(3.34 |
) |
|
|
7.95 |
|
|
N/A |
|
Net income (C) |
|
$ |
13.18 |
|
|
|
$ |
1.37 |
|
|
$ |
11.81 |
|
|
|
862 |
% |
Diluted EPS |
|
$ |
0.6747 |
|
|
|
$ |
0.0700 |
|
|
$ |
0.6047 |
|
|
|
864 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue
(F) |
|
$ |
49.61 |
|
|
|
$ |
46.27 |
|
|
$ |
3.34 |
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets annualized |
|
|
0.89 |
% |
|
|
|
0.11 |
% |
|
|
0.78 |
|
|
|
|
|
Return on average
equity annualized |
|
|
10.03 |
% |
|
|
|
1.08 |
% |
|
|
8.95 |
|
|
|
|
|
- The March 2021 quarter included a full quarter of wealth
management fee income and expense related to the December lift outs
of teams from Lucas Capital Management (“Lucas”) and Noyes Capital
Management (“Noyes”) - approximately $600,000 of wealth management
fee income and approximately $400,000 of operating expenses were
recorded in the 2021 quarter.
- Capital markets activity includes loan level back-to-back swap
activities, the SBA lending and sale program, corporate advisory
activities and mortgage banking activities. There were no fees
related to loan level back-to-back swap activities in the quarter
ended March 31, 2021, compared to $1.4 million in the March 2020
quarter.
- The quarter ended March 31, 2021 included $1.5 million of
severance expense related to certain staff reorganization within
several areas of the Bank. This expense reduced pretax income
before provision for loan losses and pretax income by $1.5 million
each; and reduced net income by $1.1 million; diluted EPS by $0.06;
ROA by 0.08%; and ROE by 0.86%, respectively.
- The March 2020 quarter included a provision for loan and lease
losses of $20.0 million, primarily due to the environment at that
time created by the COVID-19 pandemic.
- The March 2020 quarter included a $3.2 million tax benefit
related to the carryback of tax NOLs to prior years when the
Federal tax rate was 14% higher.
- Total revenue equals net interest income plus total other
income.
March 2021 Quarter Compared to Linked
Quarter
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
Increase/ |
|
(Dollars
in millions, except per share data) |
|
2021 |
|
|
2020 |
|
|
|
(Decrease) |
|
Net interest
income |
|
$ |
31.79 |
|
|
$ |
31.74 |
|
|
|
$ |
0.05 |
|
|
|
0 |
% |
Wealth management
fee income (A) |
|
|
12.13 |
|
|
|
10.79 |
|
|
|
|
1.34 |
|
|
|
12 |
|
Capital markets
activity (B) |
|
|
3.57 |
|
|
|
1.90 |
|
|
|
|
1.67 |
|
|
|
88 |
|
Other income |
|
|
2.12 |
|
|
|
1.71 |
|
|
|
|
0.41 |
|
|
|
24 |
|
Total other
income |
|
|
17.82 |
|
|
|
14.40 |
|
|
|
|
3.42 |
|
|
|
24 |
|
Operating expenses
(C) |
|
|
31.59 |
|
|
|
39.25 |
|
|
|
|
(7.66 |
) |
|
|
(20 |
) |
Pretax income
before provision for loan losses |
|
|
18.02 |
|
|
|
6.89 |
|
|
|
|
11.13 |
|
|
|
162 |
|
Provision for loan
and lease losses |
|
|
0.23 |
|
|
|
2.35 |
|
|
|
|
(2.12 |
) |
|
|
(90 |
) |
Pretax income |
|
|
17.79 |
|
|
|
4.54 |
|
|
|
|
13.25 |
|
|
|
292 |
|
Income tax
expense |
|
|
4.61 |
|
|
|
1.51 |
|
|
|
|
3.10 |
|
|
|
205 |
|
Net income (C) |
|
$ |
13.18 |
|
|
$ |
3.03 |
|
|
|
$ |
10.15 |
|
|
|
335 |
% |
Diluted EPS |
|
$ |
0.67 |
|
|
$ |
0.16 |
|
|
|
$ |
0.51 |
|
|
|
319 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue
(D) |
|
$ |
49.61 |
|
|
$ |
46.14 |
|
|
|
$ |
3.47 |
|
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets annualized |
|
|
0.89 |
% |
|
|
0.21 |
% |
|
|
|
0.68 |
|
|
|
|
|
Return on average
equity annualized |
|
|
10.03 |
% |
|
|
2.32 |
% |
|
|
|
7.71 |
|
|
|
|
|
- The March 2021 quarter included a full quarter of wealth
management fee income and expense related to the lift outs of teams
from Lucas and Noyes - approximately $600,000 of wealth management
fee income and approximately $400,000 of operating expenses were
recorded in the 2021 quarter.
- Capital markets activity includes loan level back-to-back swap
activities, the SBA lending and sale program, corporate advisory
and mortgage banking activities.
- The quarter ended March 31, 2021
included $1.5 million of severance expense related to certain staff
reorganization within several areas of the Bank. This expense
reduced pretax income before provision for loan losses and pretax
income by $1.5 million each; and reduced net income by $1.1
million; diluted EPS by $0.06; ROA by 0.08%; and ROE by 0.86%,
respectively. The December 31, 2020 quarter included
$4.8 million for the prepayment of FHLB advances, $4.4 million for
the valuation allowance for a loan held for sale and $210,000 for
the consolidation of two private banking locations.
- Total revenue equals net interest income plus total other
income.
The Company’s near-term priorities
include:
- Actively deploy/manage capital and liquidity by expanding our
lending activities and executing on our recently announced stock
repurchase program.
- Continue to grow and expand our core Wealth Management,
Commercial Banking and Capital Markets businesses through core
operations, strategic hires, lift-outs, and acquisition of wealth
management firms.
- Expand our Net Interest Margin.
- Investment in digital enhancements.
- Continue to target fee income at 35% - 45% of total bank
revenue.
- Drive ROA to greater than 1% and return on average tangible
common equity to greater than 14%.
Other select highlights for the quarter
included:
- Total noninterest income totaled $17.8 million for the March
2021 quarter, accounting for 36% of total revenue (within our
target of 35% to 45% of total revenue).
- Wealth management fee income, which comprised approximately 24%
of the Company’s total revenue for the three-months ended March 31,
2021, continues to contribute significantly to the Company’s
diversified revenue sources.
- The Company completed its first major corporate
advisory/investment banking deal.
- As of March 31, 2021, total C&I loans (including PPP loans
held in portfolio and held for sale) comprised 45% of the total
loan portfolio.
- Deposits totaled $4.94 billion at March 31, 2021. This
reflected net growth of $504 million or 11% compared to $4.44
billion at March 31, 2020, despite managed reductions in higher
cost CDs of $184 million.
- The Company’s net interest margin improved in the quarter when
compared to the December 2020 quarter (see subsequent discussion of
Net Interest Income / Net Interest Margin).
- In addition to $1.4 billion (23% of total assets) of balance
sheet liquidity (investments, interest-earning deposits and cash)
as of March 31, 2021, the Company also has access to approximately
$2.8 billion of available secured funding at the Federal Home Loan
Bank and the Federal Reserve.
- Nonperforming assets at March 31, 2021 were $11.8 million, or
0.20% of total assets. Loans past due 30 to 89 days totaled $1.6
million at March 31, 2021. Loans on deferral status as of March 31,
2021 were $43 million (less than 1% of total loans).
- As previously announced, the Company opened a retail location
in Boonton/Mountain Lakes, New Jersey.
SUPPLEMENTAL QUARTERLY
DETAILS:
Wealth Management Business
In the March 2021 quarter, the Bank’s wealth
management business generated $12.13 million in fee income,
compared to $9.96 million for the March 2020 quarter, and $10.79
million for the December 2020 quarter.
The market value of the Company’s AUM/AUA
increased from $8.8 billion at December 31, 2020 to $9.4 billion at
March 31, 2021.
In the quarter ended March 31, 2021 the Company
successfully integrated the previously announced teams from Lucas
and Noyes which combined added approximately $400 million in
AUM/AUA during the fourth quarter of 2020.
John P. Babcock, President of the Peapack
Private Wealth Management division, said, “2021 showed continued
strong new business, new client acquisition and client retention.
We ended 2020 with a very strong Q4 and this continued into Q1 2021
with gross inflows of over $250 million.” Babcock went on to note,
“We continue to look to grow our wealth business organically and
through selective acquisition. At year-end 2020, we combined
two of our acquired RIAs – Lassus Wherley Associates and Point View
Wealth Management into the Peapack Private bank entity as well
as on-boarded two lift outs in Morristown and Red Bank NJ. We
continue to make significant progress on our infrastructure
consolidation including launching our new trading platform and a
new CRM system, as well as adding more resources to our financial
planning team.”
Loans / Commercial Banking
Total loans of $4.44 billion at March 31, 2021
(including PPP loans of $233 million, of which $46 million are held
for sale) increased $36 million from $4.40 billion at December 31,
2020. Excluding net PPP loan growth during the March 2021 quarter,
loan balances were relatively flat to year-end. Loan origination
levels for the March 2021 quarter were approximately $330 million
(excluding PPP loans), but paydown and payoff activity remains
robust.
Total C&I loans (including the PPP loans) at
March 31, 2021 were $1.98 billion or 45% of the total loan
portfolio. While C&I origination levels have been strong, as
noted just above, paydown and payoff activity has also been robust,
including paydowns of several large lines of credit, as well as the
Company’s workout and asset recovery efforts, including the workout
and recovery of several nonaccrual and/or classified credits in
2021.
Mr. Kennedy noted, “Our commercial loan
(C&I, Equipment Finance and CRE/Multifamily) pipelines are
strong going into the second quarter, standing at approximately
$350 million with likelihood of closing during the second quarter
of 2021.”
Mr. Kennedy also noted, “As I have mentioned in
the past, our Corporate Advisory business, which gives us the
capability to engage in high level strategic debt, capital and
valuation analysis, enables us to provide a unique boutique level
of service, giving us a competitive advantage over many of our
peers. Our Corporate Advisory pipelines are also strong.”
The Company maintains a well-diversified loan
portfolio, as noted in the Q1 2021 Investor Update (and
Supplemental Financial Information).
Funding / Liquidity / Interest Rate Risk
Management
The Company actively manages its deposit base to
reduce reliance on wholesale sourced deposits, volatility, and/or
operational risk. Total deposits at March 31, 2021 were $4.94
billion reflecting an increase of $504 million when compared to
$4.44 billion at March 31, 2020 and an increase of $126 million
from $4.82 billion at December 31, 2020. Compared to the quarter
ended March 31, 2020, noninterest bearing demand deposits increased
$328 million and interest-bearing demand increased $307 million,
while brokered deposits declined $70 million, and higher costing
CDs declined $184 million. Mr. Kennedy noted, “Our
noninterest bearing deposits comprise 19% of our customer deposits,
and only 17% of our total deposits are not covered by FDIC
insurance; both statistics reinforce the ‘core’ nature of our
deposit base.”
For the quarter ended March 31, 2021, the
Company’s balance sheet liquidity (investments, interest-earning
deposits and cash) totaled $1.4 billion (or 23% of assets).
In addition to the $1.4 billion of balance sheet liquidity, the
Company also had approximately $1.8 billion of secured funding
available from the Federal Home Loan Bank. Additionally, the
Company had $990 million of secured funding available from the
Federal Reserve Discount Window.
Mr. Kennedy noted, “As a commercial bank, a
large portion of our loans reprice when the Fed changes rates. The
150-basis point reduction in target Fed Funds near the end of the
first quarter of 2020 reduced the Company’s yield earned on assets.
However, we were able to and we continue to strategically reprice
our deposits over time to offset much of that decline. Further,
when interest rates rise, we expect that our net interest income
will improve. Our current modeling indicates that net interest
income would improve 6.3% with an immediate 100 basis points rise
in rates.”
Net Interest Income (NII)/Net Interest
Margin (NIM)
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
|
March 31, 2020 |
|
|
NII |
|
|
NIM |
|
|
NII |
|
|
NIM |
|
|
NII |
|
|
NIM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NII/NIM
excluding the below |
$ |
30,565 |
|
|
2.49% |
|
|
$ |
30,897 |
|
|
2.51% |
|
|
$ |
31,279 |
|
|
2.60% |
|
Prepayment
premiums received on loan paydowns |
|
704 |
|
|
0.05% |
|
|
|
413 |
|
|
0.02% |
|
|
|
525 |
|
|
0.05% |
|
Effect of
maintaining excess interest earning cash |
|
(195 |
) |
|
-0.21% |
|
|
|
(206 |
) |
|
-0.24% |
|
|
|
(57 |
) |
|
-0.08% |
|
Effect of PPP
loans |
|
719 |
|
|
-0.05% |
|
|
|
631 |
|
|
-0.04% |
|
|
|
— |
|
|
0.00% |
|
NII/NIM as
reported |
$ |
31,793 |
|
|
2.28% |
|
|
$ |
31,735 |
|
|
2.25% |
|
|
$ |
31,747 |
|
|
2.57% |
|
As shown above, the Company’s reported NIM
increased 3 basis points compared to the linked quarter. The Bank
strategically lowered its cost of deposits by 8 basis points and
generated an additional $291,000 of prepayment premiums compared to
the linked quarter. These positives were partially offset by a
reduced yield on loans (decline of 4 basis points) and the full
90-day impact from the mid-December 2020 $100 million, 3.5%
subordinated debt issuance.
Future net interest income and net interest margin should
benefit from the following:
- $415 million of CDs at an average rate of 0.76% mature within
one year.
- $67 million of term money market accounts at an average rate of
0.50% are set to reprice on July 1, 2021.
- $50 million of subordinated debt at a coupon of 6% becomes
callable on June 30, 2021.
Income from Capital Markets
Activities
Noninterest income from Capital Markets
activities (the SBA lending and sale program, mortgage banking
activity, corporate advisory activity and loan level back-to-back
swap activities) totaled $3.57 million for the March 2021 quarter
compared to $1.90 million for the December 2020 quarter and $2.84
million for the March 2020 quarter. The March 2021 quarter
results were driven by a $1.45 million gain on sale of SBA loans,
which was benefitted by certain changes to SBA lending
requirements. The March 2021 and December 2020 quarters reflected
increased mortgage banking activity due to greater refinance
activity in the low rate environment. During March 2021, the
Company also recorded $1.1 million of corporate advisory fee
income. This included the Company’s first major corporate
advisory/investment banking event. These transactions tend to be
larger and take longer to complete. As noted previously, the
pipeline of such business is fairly robust. The March 2021
quarter included no income from loan level, back-to-back swap
activities, as there has been, and will continue to be, minimal
activity for such in the current environment. The March 2020
quarter included $1.4 million of such income.
Other Noninterest Income (other than
Wealth Management fee income and Income from Capital Markets
Activities)
The March 2021 quarter included approximately
$300,000 of additional Bank Owned life Insurance income, compared
to prior quarters, due to receipt of life insurance proceeds. Such
proceeds were nontaxable. The 2021 quarter also included a $282,000
gain on sale of $8 million of loans that had some past payment
issues and were classified as held for sale as of December 31,
2020. Partially offsetting these positives, the Company recorded a
$265,000 securities loss related to the valuation of certain
community investment equity securities.
Operating Expenses
The Company’s total operating expenses were
$31.59 million for the quarter ended March 31, 2021, compared to
$39.25 million for the December 2020 quarter and $28.24 million for
the March 2020 quarter. The March 2021 quarter included $1.5
million of severance expense related to certain staff
reorganization within several areas of the Bank, as well as a full
quarter’s worth of expense related to Lucas and Noyes
(approximately $400,000). The December 2020 quarter included the
prepayment of FHLB advances ($4.8 million), a valuation allowance
on a loan held for sale ($4.4 million) and consolidation of two
private banking offices ($210,000).
Mr. Kennedy noted, “While we continue to manage
expenses closely and prudently, we will invest in digital
enhancements to improve the client experience and grow and expand
our core wealth management and commercial banking businesses,
including lift-outs, strategic hires, and wealth M&A.”
Income Taxes
The effective tax rate for the three months
ended March 31, 2021 was 25.94%, as compared to 33.29% for the
December 2020 quarter and a tax benefit in the quarter ended March
31, 2020. The March 31, 2021 benefitted from life insurance
proceeds that were not taxable and from the vesting of restricted
stock at prices higher than grant prices. A tax return to book
adjustment recorded in the December 2020 quarter, coupled with
reduced pretax income in the that quarter, increased the December
2020 effective tax rate by approximately
5%.
During the first quarter of 2020, the Company
recorded a $3.34 million tax benefit, principally due to a $3.2
million Federal income tax benefit that resulted from a tax NOL
carryback. The Company had a $23 million operating loss for tax
purposes in 2018 (when the Federal tax rate was 21%) resulting from
accelerated tax depreciation. Under the CARES Act, the Company was
allowed to carry this NOL back to a period when the Federal tax
rate was 35%, generating a permanent tax benefit.
Asset Quality / Provision for Loan and Lease
Losses
For further details, see the Q1 2021 Investor Update (and
Supplemental Financial Information).
Nonperforming assets at March 31, 2021 (which
does not include troubled debt restructured loans that are
performing in accordance with their terms) were $11.8 million, or
0.20% of total assets, up slightly from $11.5 million, or 0.19% of
total assets, at December 31, 2020 and down significantly from
$29.4 million, or 0.50% of total assets, at March 31, 2020.
Total loans past due 30 through 89 days and still accruing declined
to $1.6 million at March 31, 2021, from $5.1 million at December
31, 2020 and $8.3 million at March 31, 2020. During the
latter half of 2020 and first quarter of 2021, the Company’s asset
recovery and workout efforts reduced nonperforming and classified
assets.
For the quarter ended March 31, 2021, the
Company’s provision for loan and lease losses was $225,000 compared
to $2.35 million for the December 2020 quarter and $20.00 million
for the March 2020 quarter. The decreased provision for loan and
lease losses in the 2021 quarter when compared to the 2020 quarters
reflect the reduced qualitative loss factors when calculating the
allowance for loan losses as loan deferrals entered into during the
COVID-19 pandemic have come down significantly from prior year
(declined from $914 million at June 30, 2020 to $43 million at
March 31, 2021). The Company’s provision for loan and lease losses
(and its allowance for loan and lease losses) also reflect, among
other things, the Company’s assessment of asset quality metrics,
net charge-offs/recoveries, and the composition of the loan
portfolio.
At March 31, 2021, the allowance for loan and
lease losses was $67.54 million (1.52% of total loans), compared to
$67.31 million at December 31, 2020 (1.53% of total loans), and
$63.78 million at March 31, 2020 (1.44% of total loans). The
Company has elected to take additional time to adopt CECL and will
implement effective January 1, 2022.
Capital
The Company’s capital position during the March
2021 quarter was benefitted by net income of $13.18 million which
was offset by the purchase of shares through the Company’s stock
repurchase program. The Company purchased 158,033 shares at
an average price of $27.71 for a total cost of $4.4 million.
Capital was also impacted by an increase in the unrealized loss on
our securities of $13.4 million during the March 2021 quarter, as
medium-term market interest rates rose during the quarter impacting
the market value of securities.
The Company’s and Bank’s capital ratios at March
31, 2021 all remain strong. Such ratios remain well above
regulatory well capitalized standards.
As previously announced, in the fourth quarter
of 2020 the Company successfully completed a private placement of
$100 million in fixed-to floating rate subordinated notes due 2030
at a rate of 3.5%. Such funds benefitted the Company’s Regulatory
Tier 2 Capital. The proceeds raised will be used for general
corporate purposes, which will include stock repurchases and could
potentially include redemption of the Company’s existing 6%
subordinated debt and acquisitions of wealth management firms.
The Company employs quarterly capital stress
testing run under multiple scenarios, including a no growth,
severely adverse case. In such case as of December 31, 2020, the
Bank remains well capitalized over a two-year stress period. With a
Pandemic stress overlay on this case, the Bank still remains well
capitalized over the two-year stress period. For further details,
see the Q1 2021 Investor Update (and Supplemental Financial
Information).
As previously announced, on April 27, 2021, the
Company declared a cash dividend of $0.05 per share payable on May
25, 2021 to shareholders of record on May 11, 2021.
ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a New
Jersey bank holding company with total assets of $6.0 billion and
assets under management/administration of $9.4 billion as of March
31, 2021. 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 inability to successfully grow our business and implement
our strategic plan, including an inability to generate revenues to
offset the increased personnel and other costs related to the
strategic plan;
- the impact of anticipated higher operating expenses in 2021 and
beyond;
- our inability to successfully integrate wealth management firm
acquisitions;
- our inability to manage our growth;
- our inability to successfully integrate our expanded employee
base;
- an unexpected decline in the economy, in particular in our New
Jersey and New York market areas;
- declines in our net interest margin caused by the interest rate
environment and/or our highly competitive market;
- declines in value in our investment portfolio;
- impact on our business from a pandemic event on our business,
operations, customers, allowance for loan losses and capital
levels;
- higher than expected increases in our allowance for loan and
lease losses;
- higher than expected increases in loan and lease losses or in
the level of nonperforming loans;
- changes in interest rates;
- 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;
- our inability to successfully generate new business in new
geographic markets;
- our inability to execute upon new business initiatives;
- our lack of liquidity to fund our various cash
obligations;
- reduction in our lower-cost funding sources;
- our inability to adapt to technological changes;
- claims and litigation pertaining to fiduciary responsibility,
environmental laws and other matters;
- our inability to retain key employees;
- demands for loans and deposits in our market areas;
- adverse changes in securities markets;
- changes in accounting policies and practices; and
- other unexpected material adverse changes in our operations or
earnings.
Further, given its ongoing and dynamic nature,
it is difficult to predict the full impact of the COVID-19
outbreak on our business. The extent of such impact will depend on
future developments, which are highly uncertain, including when the
coronavirus can be controlled and abated and when and whether the
gradual reopening of businesses will result in a meaningful
increase in economic activity. As the result of the COVID-19
pandemic and the related adverse local and national economic
consequences, we could be subject to any of the following risks,
any of which could have a material, adverse effect on our business,
financial condition, liquidity, and results of operations:
- demand for our products and services may decline, making it
difficult to grow assets and income;
- if the economy is unable to substantially reopen, and high
levels of unemployment continue for an extended period of time,
loan delinquencies, problem assets, and foreclosures may increase,
resulting in increased charges and reduced income;
- collateral for loans, especially real estate, may decline
in value, which could cause loan losses to increase;
- our allowance for loan losses may have to be increased if
borrowers experience financial difficulties, which will adversely
affect our net income;
- the net worth and liquidity of loan guarantors may decline,
impairing their ability to honor commitments to us;
- a material decrease in net income or a net loss over several
quarters could result in a decrease in the rate of our quarterly
cash dividend;
- our wealth management revenues may decline with continuing
market turmoil;
- a worsening of business and economic conditions or in the
financial markets could result in an impairment of certain
intangible assets, such as goodwill;
- the unanticipated loss or unavailability of key employees due
to the outbreak, which could harm our ability to operate our
business or execute our business strategy, especially as we may not
be successful in finding and integrating suitable successors;
- we may face litigation, regulatory enforcement and reputation
risk as a result of our participation in the PPP and the risk that
the SBA may not fund some or all PPP loan guaranties;
- our cyber security risks are increased as the result of an
increase in the number of employees working remotely; and
- FDIC premiums may increase if the agency experience additional
resolution costs.
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,
2020. 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.
(Tables to follow)
PEAPACK-GLADSTONE
FINANCIAL CORPORATIONSELECTED CONSOLIDATED
FINANCIAL DATA(Dollars in Thousands, except share
data) (Unaudited)
|
|
For the Three Months Ended |
|
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
Income
Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
$ |
38,239 |
|
|
$ |
38,532 |
|
|
$ |
40,174 |
|
|
$ |
41,649 |
|
|
$ |
45,395 |
|
Interest
expense |
|
|
6,446 |
|
|
|
6,797 |
|
|
|
8,025 |
|
|
|
9,678 |
|
|
|
13,648 |
|
Net interest income |
|
|
31,793 |
|
|
|
31,735 |
|
|
|
32,149 |
|
|
|
31,971 |
|
|
|
31,747 |
|
Wealth management
fee income |
|
|
12,131 |
|
|
|
10,791 |
|
|
|
10,119 |
|
|
|
9,996 |
|
|
|
9,955 |
|
Service charges and
fees |
|
|
846 |
|
|
|
859 |
|
|
|
785 |
|
|
|
695 |
|
|
|
816 |
|
Bank owned life
insurance |
|
|
611 |
|
|
|
313 |
|
|
|
314 |
|
|
|
318 |
|
|
|
328 |
|
Gain on loans held
for sale at fair value (Mortgage banking) (A) |
|
|
1,025 |
|
|
|
1,470 |
|
|
|
954 |
|
|
|
550 |
|
|
|
292 |
|
Gain/(loss) on
loans held for sale at lower of cost or fair
value(B) |
|
|
282 |
|
|
|
— |
|
|
|
7,429 |
|
|
|
— |
|
|
|
(3 |
) |
Fee income related
to loan level, back-to-back swaps (A) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
202 |
|
|
|
1,418 |
|
Gain on sale of SBA
loans (A) |
|
|
1,449 |
|
|
|
375 |
|
|
|
79 |
|
|
|
258 |
|
|
|
1,054 |
|
Corporate advisory
fee income (A) |
|
|
1,098 |
|
|
|
50 |
|
|
|
75 |
|
|
|
65 |
|
|
|
75 |
|
Other income |
|
|
643 |
|
|
|
590 |
|
|
|
456 |
|
|
|
417 |
|
|
|
384 |
|
Securities
(losses)/gains, net |
|
|
(265 |
) |
|
|
(42 |
) |
|
|
— |
|
|
|
125 |
|
|
|
198 |
|
Total other income |
|
|
17,820 |
|
|
|
14,406 |
|
|
|
20,211 |
|
|
|
12,626 |
|
|
|
14,517 |
|
Salaries and
employee benefits (C) |
|
|
21,990 |
|
|
|
19,902 |
|
|
|
19,202 |
|
|
|
19,186 |
|
|
|
19,226 |
|
Premises and
equipment |
|
|
4,113 |
|
|
|
4,189 |
|
|
|
4,109 |
|
|
|
4,036 |
|
|
|
4,043 |
|
FDIC insurance
expense |
|
|
585 |
|
|
|
665 |
|
|
|
605 |
|
|
|
455 |
|
|
|
250 |
|
FHLB prepayment
penalty |
|
|
— |
|
|
|
4,784 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Valuation allowance
loans held for sale (D) |
|
|
— |
|
|
|
4,425 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other expenses |
|
|
4,906 |
|
|
|
5,284 |
|
|
|
4,545 |
|
|
|
5,337 |
|
|
|
4,716 |
|
Total operating expenses |
|
|
31,594 |
|
|
|
39,249 |
|
|
|
28,461 |
|
|
|
29,014 |
|
|
|
28,235 |
|
Pretax income
before provision for loan losses |
|
|
18,019 |
|
|
|
6,892 |
|
|
|
23,899 |
|
|
|
15,583 |
|
|
|
18,029 |
|
Provision for loan
and lease losses (E) |
|
|
225 |
|
|
|
2,350 |
|
|
|
5,150 |
|
|
|
4,900 |
|
|
|
20,000 |
|
Income/(loss)
before income taxes |
|
|
17,794 |
|
|
|
4,542 |
|
|
|
18,749 |
|
|
|
10,683 |
|
|
|
(1,971 |
) |
Income tax
expense/(benefit) (F) |
|
|
4,616 |
|
|
|
1,512 |
|
|
|
5,202 |
|
|
|
2,441 |
|
|
|
(3,344 |
) |
Net income |
|
$ |
13,178 |
|
|
$ |
3,030 |
|
|
$ |
13,547 |
|
|
$ |
8,242 |
|
|
$ |
1,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
(G) |
|
$ |
49,613 |
|
|
$ |
46,141 |
|
|
$ |
52,360 |
|
|
$ |
44,597 |
|
|
$ |
46,264 |
|
Per Common
Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
(basic) |
|
$ |
0.70 |
|
|
$ |
0.16 |
|
|
$ |
0.72 |
|
|
$ |
0.44 |
|
|
$ |
0.07 |
|
Earnings per share
(diluted) |
|
|
0.67 |
|
|
|
0.16 |
|
|
|
0.71 |
|
|
|
0.43 |
|
|
|
0.07 |
|
Weighted
average number of common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,950,305 |
|
|
|
18,947,864 |
|
|
|
18,908,337 |
|
|
|
18,872,070 |
|
|
|
18,858,343 |
|
Diluted |
|
|
19,531,689 |
|
|
|
19,334,569 |
|
|
|
19,132,650 |
|
|
|
19,059,822 |
|
|
|
19,079,575 |
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets annualized (ROAA) |
|
|
0.89 |
% |
|
|
0.21 |
% |
|
|
0.89 |
% |
|
|
0.56 |
% |
|
|
0.11 |
% |
Return on average
equity annualized (ROAE) |
|
|
10.03 |
% |
|
|
2.32 |
% |
|
|
10.53 |
% |
|
|
6.56 |
% |
|
|
1.08 |
% |
Return on average
tangible common equity (ROATCE) (H) |
|
|
10.94 |
% |
|
|
2.51 |
% |
|
|
11.41 |
% |
|
|
7.13 |
% |
|
|
1.17 |
% |
Net interest margin
(tax-equivalent basis) |
|
|
2.28 |
% |
|
|
2.25 |
% |
|
|
2.20 |
% |
|
|
2.27 |
% |
|
|
2.57 |
% |
GAAP efficiency
ratio (I) |
|
|
63.68 |
% |
|
|
85.06 |
% |
|
|
54.36 |
% |
|
|
65.06 |
% |
|
|
61.03 |
% |
Operating expenses
/ average assets annualized |
|
|
2.14 |
% |
|
|
2.66 |
% |
|
|
1.86 |
% |
|
|
1.97 |
% |
|
|
2.18 |
% |
- 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.
- Includes gain on sale of PPP loans of $355 million completed in
the September quarter.
- The March 2021 quarter included $1.5 million of severance
expense related to corporate restructuring.
- The December 2020 quarter reflects a $4.4 million write-down of
a commercial real estate held for sale loan associated with an
assisted living facility.
- The March 2020, June 2020 and September 2020 quarters included
a higher provision for loan and lease losses primarily due to the
environment created by the COVID-19 pandemic.
- The March 2020 quarter included a $3.2 million tax benefit
related to the carryback of tax NOLs to prior years when the
Federal tax rate was 14% higher.
- Total revenue equals net interest income plus total other
income.
- 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.
- Calculated as total operating expenses as a percentage of total
revenue. For Non-GAAP efficiency ratio, see Non-GAAP
financial measures reconciliation included in these tables.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION(Dollars in
Thousands)(Unaudited)
|
|
As of |
|
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
8,159 |
|
|
$ |
10,629 |
|
|
$ |
8,400 |
|
|
$ |
5,608 |
|
|
$ |
6,171 |
|
Federal funds
sold |
|
|
102 |
|
|
|
102 |
|
|
|
102 |
|
|
|
102 |
|
|
|
102 |
|
Interest-earning
deposits |
|
|
468,276 |
|
|
|
642,591 |
|
|
|
670,863 |
|
|
|
617,117 |
|
|
|
767,730 |
|
Total cash and cash equivalents |
|
|
476,537 |
|
|
|
653,322 |
|
|
|
679,365 |
|
|
|
622,827 |
|
|
|
774,003 |
|
Securities
available for sale |
|
|
875,301 |
|
|
|
622,689 |
|
|
|
596,929 |
|
|
|
539,742 |
|
|
|
400,558 |
|
Equity
security |
|
|
14,852 |
|
|
|
15,117 |
|
|
|
15,159 |
|
|
|
15,159 |
|
|
|
14,034 |
|
FHLB and FRB stock,
at cost |
|
|
13,699 |
|
|
|
13,709 |
|
|
|
18,433 |
|
|
|
18,598 |
|
|
|
40,871 |
|
Residential
mortgage |
|
|
498,884 |
|
|
|
520,188 |
|
|
|
532,120 |
|
|
|
536,015 |
|
|
|
532,063 |
|
Multifamily
mortgage |
|
|
1,178,940 |
|
|
|
1,127,198 |
|
|
|
1,168,796 |
|
|
|
1,178,494 |
|
|
|
1,203,487 |
|
Commercial
mortgage |
|
|
697,599 |
|
|
|
694,034 |
|
|
|
722,678 |
|
|
|
761,910 |
|
|
|
760,648 |
|
Commercial loans
(A) |
|
|
1,982,570 |
|
|
|
1,975,337 |
|
|
|
1,930,984 |
|
|
|
2,316,125 |
|
|
|
1,810,214 |
|
Consumer loans |
|
|
36,519 |
|
|
|
37,016 |
|
|
|
51,859 |
|
|
|
53,111 |
|
|
|
53,365 |
|
Home equity lines
of credit |
|
|
45,624 |
|
|
|
50,547 |
|
|
|
52,194 |
|
|
|
54,006 |
|
|
|
55,856 |
|
Other loans |
|
|
199 |
|
|
|
225 |
|
|
|
260 |
|
|
|
272 |
|
|
|
347 |
|
Total loans |
|
|
4,440,335 |
|
|
|
4,404,545 |
|
|
|
4,458,891 |
|
|
|
4,899,933 |
|
|
|
4,415,980 |
|
Less: Allowances for loan and lease losses |
|
|
67,536 |
|
|
|
67,309 |
|
|
|
66,145 |
|
|
|
66,065 |
|
|
|
63,783 |
|
Net loans |
|
|
4,372,799 |
|
|
|
4,337,236 |
|
|
|
4,392,746 |
|
|
|
4,833,868 |
|
|
|
4,352,197 |
|
Premises and
equipment |
|
|
23,260 |
|
|
|
21,609 |
|
|
|
21,668 |
|
|
|
21,449 |
|
|
|
21,243 |
|
Other real estate
owned |
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
Accrued interest
receivable |
|
|
23,916 |
|
|
|
22,495 |
|
|
|
22,192 |
|
|
|
15,956 |
|
|
|
11,816 |
|
Bank owned life
insurance |
|
|
46,448 |
|
|
|
46,809 |
|
|
|
46,645 |
|
|
|
46,479 |
|
|
|
46,309 |
|
Goodwill and other
intangible assets |
|
|
43,524 |
|
|
|
43,891 |
|
|
|
39,622 |
|
|
|
39,943 |
|
|
|
40,265 |
|
Finance lease
right-of-use assets |
|
|
4,143 |
|
|
|
4,330 |
|
|
|
4,517 |
|
|
|
4,704 |
|
|
|
4,891 |
|
Operating lease
right-of-use assets |
|
|
10,186 |
|
|
|
9,421 |
|
|
|
10,011 |
|
|
|
10,810 |
|
|
|
11,553 |
|
Other assets
(B) |
|
|
64,912 |
|
|
|
99,764 |
|
|
|
110,770 |
|
|
|
111,630 |
|
|
|
113,668 |
|
TOTAL ASSETS |
|
$ |
5,969,627 |
|
|
$ |
5,890,442 |
|
|
$ |
5,958,107 |
|
|
$ |
6,281,215 |
|
|
$ |
5,831,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
$ |
908,922 |
|
|
$ |
833,500 |
|
|
$ |
838,307 |
|
|
$ |
911,989 |
|
|
$ |
581,085 |
|
Interest-bearing demand deposits |
|
|
1,987,567 |
|
|
|
1,849,254 |
|
|
|
1,858,529 |
|
|
|
1,804,102 |
|
|
|
1,680,452 |
|
Savings |
|
|
141,743 |
|
|
|
130,731 |
|
|
|
127,737 |
|
|
|
123,140 |
|
|
|
112,668 |
|
Money market accounts |
|
|
1,256,605 |
|
|
|
1,298,885 |
|
|
|
1,251,349 |
|
|
|
1,183,603 |
|
|
|
1,163,410 |
|
Certificates of deposit – Retail |
|
|
474,668 |
|
|
|
530,222 |
|
|
|
586,801 |
|
|
|
629,941 |
|
|
|
651,000 |
|
Certificates of deposit – Listing Service |
|
|
31,631 |
|
|
|
32,128 |
|
|
|
32,677 |
|
|
|
35,327 |
|
|
|
38,895 |
|
Subtotal “customer”
deposits |
|
|
4,801,136 |
|
|
|
4,674,720 |
|
|
|
4,695,400 |
|
|
|
4,688,102 |
|
|
|
4,227,510 |
|
IB Demand – Brokered |
|
|
110,000 |
|
|
|
110,000 |
|
|
|
130,000 |
|
|
|
130,000 |
|
|
|
180,000 |
|
Certificates of deposit – Brokered |
|
|
33,777 |
|
|
|
33,764 |
|
|
|
33,750 |
|
|
|
33,736 |
|
|
|
33,723 |
|
Total deposits |
|
|
4,944,913 |
|
|
|
4,818,484 |
|
|
|
4,859,150 |
|
|
|
4,851,838 |
|
|
|
4,441,233 |
|
Short-term
borrowings |
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
515,000 |
|
FHLB advances
(C) |
|
|
— |
|
|
|
— |
|
|
|
105,000 |
|
|
|
105,000 |
|
|
|
105,000 |
|
Paycheck Protection
Program Liquidity Facility (D) |
|
|
168,180 |
|
|
|
177,086 |
|
|
|
183,790 |
|
|
|
535,837 |
|
|
|
— |
|
Finance lease
liability |
|
|
6,528 |
|
|
|
6,753 |
|
|
|
6,976 |
|
|
|
7,196 |
|
|
|
7,402 |
|
Operating lease
liability |
|
|
10,509 |
|
|
|
9,737 |
|
|
|
10,318 |
|
|
|
11,116 |
|
|
|
11,852 |
|
Subordinated debt,
net (E) |
|
|
181,837 |
|
|
|
181,794 |
|
|
|
83,585 |
|
|
|
83,529 |
|
|
|
83,473 |
|
Other liabilities
(B) |
|
|
120,219 |
|
|
|
154,466 |
|
|
|
156,472 |
|
|
|
163,719 |
|
|
|
160,173 |
|
Due to brokers |
|
|
— |
|
|
|
— |
|
|
|
15,088 |
|
|
|
— |
|
|
|
10,885 |
|
TOTAL LIABILITIES |
|
|
5,447,186 |
|
|
|
5,363,320 |
|
|
|
5,435,379 |
|
|
|
5,773,235 |
|
|
|
5,335,018 |
|
Shareholders’
equity |
|
|
522,441 |
|
|
|
527,122 |
|
|
|
522,728 |
|
|
|
507,980 |
|
|
|
496,440 |
|
TOTAL LIABILITIES AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
$ |
5,969,627 |
|
|
$ |
5,890,442 |
|
|
$ |
5,958,107 |
|
|
$ |
6,281,215 |
|
|
$ |
5,831,458 |
|
Assets
under management and / or administration
at Peapack-Gladstone
Bank’s Private Wealth
Management Division (market value, not
included above-dollars in billions) |
|
$ |
9.4 |
|
|
$ |
8.8 |
|
|
$ |
7.6 |
|
|
$ |
7.2 |
|
|
$ |
6.4 |
|
- Includes PPP loans of $233 million at March 31, 2021, $196
million at December 31, 2020, $202 million at September 30, 2020
and $547 million at June 30, 2020.
- 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.
- The Company prepaid $105 million of FHLB advances with a
weighted-average rate of 3.20% during the December 2020
quarter.
- Represents funding provided by the Federal Reserve for pledged
PPP loans.
- The increase was due to the completion of a $100 million
subordinated debt offering in December 22, 2020.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED BALANCE SHEET
DATA(Dollars in
Thousands)(Unaudited)
|
|
As of |
|
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
Asset
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due over
90 days and still accruing |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Nonaccrual loans
(A) |
|
|
11,767 |
|
|
|
11,410 |
|
|
|
8,611 |
|
|
|
26,697 |
|
|
|
29,324 |
|
Other real estate
owned |
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
Total nonperforming assets |
|
$ |
11,817 |
|
|
$ |
11,460 |
|
|
$ |
8,661 |
|
|
$ |
26,747 |
|
|
$ |
29,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
to total loans |
|
|
0.27 |
% |
|
|
0.26 |
% |
|
|
0.19 |
% |
|
|
0.54 |
% |
|
|
0.66 |
% |
Nonperforming
assets to total assets |
|
|
0.20 |
% |
|
|
0.19 |
% |
|
|
0.15 |
% |
|
|
0.43 |
% |
|
|
0.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing TDRs
(B)(C) |
|
$ |
197 |
|
|
$ |
201 |
|
|
$ |
2,278 |
|
|
$ |
2,376 |
|
|
$ |
2,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 30
through 89 days and still accruing (D)(E) |
|
$ |
1,622 |
|
|
$ |
5,053 |
|
|
$ |
6,609 |
|
|
$ |
3,785 |
|
|
$ |
8,261 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans subject to
special mention |
|
$ |
166,013 |
|
|
$ |
162,103 |
|
|
$ |
129,700 |
|
|
$ |
27,922 |
|
|
$ |
13,222 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classified
loans |
|
$ |
25,714 |
|
|
$ |
37,771 |
|
|
$ |
41,263 |
|
|
$ |
63,562 |
|
|
$ |
58,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans |
|
$ |
11,964 |
|
|
$ |
16,204 |
|
|
$ |
15,514 |
|
|
$ |
33,708 |
|
|
$ |
36,369 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
and lease losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
$ |
67,309 |
|
|
$ |
66,145 |
|
|
$ |
66,065 |
|
|
$ |
63,783 |
|
|
$ |
43,676 |
|
Provision for loan and lease losses |
|
|
225 |
|
|
|
2,350 |
|
|
|
5,150 |
|
|
|
4,900 |
|
|
|
20,000 |
|
(Charge-offs)/recoveries, net |
|
|
2 |
|
|
|
(1,186 |
) |
|
|
(5,070 |
) |
|
|
(2,618 |
) |
|
|
107 |
|
End of period |
|
$ |
67,536 |
|
|
$ |
67,309 |
|
|
$ |
66,145 |
|
|
$ |
66,065 |
|
|
$ |
63,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLL to
nonperforming loans |
|
|
573.94 |
% |
|
|
589.91 |
% |
|
|
768.15 |
% |
|
|
247.46 |
% |
|
|
217.51 |
% |
ALLL to total
loans |
|
|
1.52 |
% |
|
|
1.53 |
% |
|
|
1.48 |
% |
|
|
1.35 |
% |
|
|
1.44 |
% |
General ALLL to
total loans (F) |
|
|
1.45 |
% |
|
|
1.47 |
% |
|
|
1.48 |
% |
|
|
1.26 |
% |
|
|
1.30 |
% |
- Excludes one commercial loan held for sale of $5.6 million at
March 31, 2021. Excludes residential and commercial loans held for
sale of $8.5 million at December 31, 2020. Excludes one
commercial loan held for sale of $10.0 million at September 30,
2020.
- Amounts reflect TDRs that are paying according to restructured
terms.
- Amount does not include $3.9 million at March 31, 2021, $4.0
million at December 31, 2020, $5.2 million at September 30, 2020,
$23.2 million at June 30, 2020 and $25.9 million at March 31, 2020
of TDRs included in nonaccrual loans.
- Excludes a residential loan held for sale of $93,000 at
December 31, 2020.
- December 31, 2020 includes $1.3 million of residential loans
that are classified as delinquent due to an escrow payment shortage
due to a recent change in escrow payment requirement.
- Total ALLL less specific reserves equals general ALLL.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED BALANCE SHEET
DATA(Dollars in
Thousands)(Unaudited)
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
Capital
Adequacy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to total
assets (A)(J) |
|
|
|
|
8.75 |
% |
|
|
|
|
8.95 |
% |
|
|
|
|
8.51 |
% |
Tangible Equity to
tangible assets (B) |
|
|
|
|
8.08 |
% |
|
|
|
|
8.27 |
% |
|
|
|
|
7.88 |
% |
Tangible Equity to
tangible assets excluding PPP loans (C) |
|
|
|
|
8.41 |
% |
|
|
|
|
8.55 |
% |
|
|
|
|
7.88 |
% |
Book value per share
(D) |
|
|
|
$ |
27.45 |
|
|
|
|
$ |
27.78 |
|
|
|
|
$ |
26.33 |
|
Tangible Book Value
per share (E) |
|
|
|
$ |
25.16 |
|
|
|
|
$ |
25.47 |
|
|
|
|
$ |
24.20 |
|
|
|
March 31, |
|
|
December 31, |
|
|
March 31, |
|
|
2021 |
|
|
2020 |
|
|
2020 |
Regulatory
Capital – Holding
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier I
leverage |
|
$ |
491,384 |
|
|
8.66% |
|
|
$ |
483,535 |
|
|
8.53% |
|
|
$ |
458,640 |
|
|
8.93% |
Tier I capital to
risk-weighted assets |
|
|
491,384 |
|
|
|
12.00 |
|
|
|
483,535 |
|
|
11.93 |
|
|
|
458,640 |
|
|
10.71 |
Common equity tier
I capital ratio to risk-weighted assets |
|
|
491,355 |
|
|
|
12.00 |
|
|
|
483,500 |
|
|
11.93 |
|
|
|
458,639 |
|
|
10.71 |
Tier I & II
capital to risk-weighted assets |
|
|
724,599 |
|
|
|
17.70 |
|
|
|
716,210 |
|
|
17.67 |
|
|
|
595,770 |
|
|
13.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory
Capital – Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier I leverage
(F) |
|
$ |
564,533 |
|
|
9.95% |
|
|
$ |
549,575 |
|
|
9.71% |
|
|
$ |
527,433 |
|
|
10.28% |
Tier I capital to
risk-weighted assets (G) |
|
|
564,533 |
|
|
13.79 |
|
|
|
549,575 |
|
|
13.55 |
|
|
|
527,433 |
|
|
|
12.33 |
Common equity tier
I capital ratio to risk-weighted assets (H) |
|
|
564,504 |
|
|
13.78 |
|
|
|
549,540 |
|
|
13.55 |
|
|
|
527,432 |
|
|
|
12.33 |
Tier I & II
capital to risk-weighted assets (I) |
|
|
615,925 |
|
|
15.04 |
|
|
|
600,478 |
|
|
14.81 |
|
|
|
581,025 |
|
|
13.58 |
- Equity to total assets is calculated as total shareholders’
equity as a percentage of total assets at period end.
- 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 period end is calculated by dividing tangible
equity by tangible assets at period end. See Non-GAAP
financial measures reconciliation included in these tables.
- Tangible equity and tangible assets excluding PPP loans are
calculated by excluding the balance of intangible assets from
shareholders’ equity and excluding the balance of intangible assets
and PPP loans from total assets. Tangible equity as a percentage of
tangible assets excluding PPP loans at period end is calculated by
dividing tangible equity by tangible assets excluding PPP loans at
period end. See Non-GAAP financial measures reconciliation
included in these tables.
- Book value per common share is calculated by dividing
shareholders’ equity by period end common shares outstanding
- Tangible book value per excludes intangible assets.
Tangible book value per share is calculated by dividing tangible
equity by period end common shares outstanding. See Non-GAAP
financial measures reconciliation tables.
- Regulatory well capitalized standard = 5.00% ($284
million)
- Regulatory well capitalized standard = 8.00% ($328
million)
- Regulatory well capitalized standard = 6.50% ($266
million)
- Regulatory well capitalized standard = 10.00% ($410
million)
- PPP loans with a balance of $233 million and $196 million
increased total assets at March 31, 2021 and December 31, 2020,
respectively.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONLOANS CLOSED(Dollars
in Thousands)(Unaudited)
|
|
For the Quarters Ended |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
Residential loans
retained |
|
$ |
15,814 |
|
|
$ |
22,316 |
|
|
$ |
32,599 |
|
|
$ |
18,627 |
|
|
$ |
14,831 |
Residential loans
sold |
|
|
45,873 |
|
|
|
64,630 |
|
|
|
54,521 |
|
|
|
37,061 |
|
|
|
19,391 |
Total residential loans |
|
|
61,687 |
|
|
|
86,946 |
|
|
|
87,120 |
|
|
|
55,688 |
|
|
|
34,222 |
Commercial real
estate |
|
|
38,363 |
|
|
|
— |
|
|
|
1,613 |
|
|
|
748 |
|
|
|
8,858 |
Multifamily |
|
|
85,009 |
|
|
|
1,184 |
|
|
|
1,500 |
|
|
|
11,960 |
|
|
|
61,998 |
Commercial
(C&I) loans (A) (B) |
|
|
129,141 |
|
|
|
218,235 |
|
|
|
118,048 |
|
|
|
99,294 |
|
|
|
42,908 |
SBA (C) |
|
|
58,730 |
|
|
|
8,355 |
|
|
|
4,962 |
|
|
|
595,651 |
|
|
|
13,830 |
Wealth lines of
credit (A) |
|
|
2,475 |
|
|
|
3,925 |
|
|
|
2,000 |
|
|
|
500 |
|
|
|
3,250 |
Total commercial loans |
|
|
313,718 |
|
|
|
231,699 |
|
|
|
128,123 |
|
|
|
708,153 |
|
|
|
130,844 |
Installment
loans |
|
|
63 |
|
|
|
690 |
|
|
|
253 |
|
|
|
950 |
|
|
|
256 |
Home equity lines
of credit (A) |
|
|
1,899 |
|
|
|
2,330 |
|
|
|
4,759 |
|
|
|
4,280 |
|
|
|
3,632 |
Total loans closed |
|
$ |
377,367 |
|
|
$ |
321,665 |
|
|
$ |
220,255 |
|
|
$ |
769,071 |
|
|
$ |
168,954 |
- Includes loans and lines of credit that closed in the period
but not necessarily funded.
- Includes equipment finance.
- Includes PPP loans of $47 million for the quarter ended March
31, 2021 and $596 million for the three months ended June 30,
2020.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONAVERAGE BALANCE
SHEETUNAUDITEDTHREE MONTHS ENDED(Tax-Equivalent Basis,
Dollars in Thousands)
|
|
March 31,
2021 |
|
|
March 31,
2020 |
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
761,187 |
|
|
$ |
2,629 |
|
|
|
1.38 |
% |
|
$ |
411,806 |
|
|
$ |
2,459 |
|
|
|
2.39 |
% |
Tax-exempt (A) (B) |
|
|
7,980 |
|
|
|
98 |
|
|
|
4.91 |
|
|
|
10,534 |
|
|
|
131 |
|
|
|
4.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
501,590 |
|
|
|
3,954 |
|
|
|
3.15 |
|
|
|
535,114 |
|
|
|
4,576 |
|
|
|
3.42 |
|
Commercial mortgages |
|
|
1,840,363 |
|
|
|
14,420 |
|
|
|
3.13 |
|
|
|
1,955,808 |
|
|
|
18,483 |
|
|
|
3.78 |
|
Commercial |
|
|
1,932,692 |
|
|
|
16,455 |
|
|
|
3.41 |
|
|
|
1,758,137 |
|
|
|
18,593 |
|
|
|
4.23 |
|
Commercial construction |
|
|
15,606 |
|
|
|
139 |
|
|
|
3.56 |
|
|
|
5,629 |
|
|
|
88 |
|
|
|
6.25 |
|
Installment |
|
|
37,695 |
|
|
|
276 |
|
|
|
2.93 |
|
|
|
53,983 |
|
|
|
464 |
|
|
|
3.44 |
|
Home equity |
|
|
48,853 |
|
|
|
399 |
|
|
|
3.27 |
|
|
|
55,654 |
|
|
|
614 |
|
|
|
4.41 |
|
Other |
|
|
246 |
|
|
|
5 |
|
|
|
8.13 |
|
|
|
364 |
|
|
|
9 |
|
|
|
9.89 |
|
Total loans |
|
|
4,377,045 |
|
|
|
35,648 |
|
|
|
3.26 |
|
|
|
4,364,689 |
|
|
|
42,827 |
|
|
|
3.92 |
|
Federal funds sold |
|
|
102 |
|
|
|
— |
|
|
|
0.25 |
|
|
|
102 |
|
|
|
— |
|
|
|
0.25 |
|
Interest-earning deposits |
|
|
555,331 |
|
|
|
128 |
|
|
|
0.09 |
|
|
|
251,566 |
|
|
|
552 |
|
|
|
0.88 |
|
Total interest-earning assets |
|
|
5,701,645 |
|
|
|
38,503 |
|
|
|
2.70 |
% |
|
|
5,038,697 |
|
|
|
45,969 |
|
|
|
3.65 |
% |
Noninterest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
11,129 |
|
|
|
|
|
|
|
|
|
|
|
5,517 |
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses |
|
|
(71,160 |
) |
|
|
|
|
|
|
|
|
|
|
(44,368 |
) |
|
|
|
|
|
|
|
|
Premises and equipment |
|
|
22,634 |
|
|
|
|
|
|
|
|
|
|
|
21,145 |
|
|
|
|
|
|
|
|
|
Other assets |
|
|
228,134 |
|
|
|
|
|
|
|
|
|
|
|
161,452 |
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
190,737 |
|
|
|
|
|
|
|
|
|
|
|
143,746 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,892,382 |
|
|
|
|
|
|
|
|
|
|
$ |
5,182,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
1,908,380 |
|
|
$ |
978 |
|
|
|
0.20 |
% |
|
$ |
1,540,798 |
|
|
$ |
3,447 |
|
|
|
0.89 |
% |
Money markets |
|
|
1,259,597 |
|
|
|
794 |
|
|
|
0.25 |
|
|
|
1,192,049 |
|
|
|
2,981 |
|
|
|
1.00 |
|
Savings |
|
|
135,202 |
|
|
|
17 |
|
|
|
0.05 |
|
|
|
110,905 |
|
|
|
15 |
|
|
|
0.05 |
|
Certificates of deposit – retail |
|
|
533,488 |
|
|
|
1,470 |
|
|
|
1.10 |
|
|
|
698,019 |
|
|
|
3,694 |
|
|
|
2.12 |
|
Subtotal interest-bearing deposits |
|
|
3,836,667 |
|
|
|
3,259 |
|
|
|
0.34 |
|
|
|
3,541,771 |
|
|
|
10,137 |
|
|
|
1.14 |
|
Interest-bearing demand – brokered |
|
|
110,000 |
|
|
|
493 |
|
|
|
1.79 |
|
|
|
180,000 |
|
|
|
923 |
|
|
|
2.05 |
|
Certificates of deposit – brokered |
|
|
33,769 |
|
|
|
261 |
|
|
|
3.09 |
|
|
|
33,715 |
|
|
|
263 |
|
|
|
3.12 |
|
Total interest-bearing deposits |
|
|
3,980,436 |
|
|
|
4,013 |
|
|
|
0.40 |
|
|
|
3,755,486 |
|
|
|
11,323 |
|
|
|
1.21 |
|
Borrowings |
|
|
186,006 |
|
|
|
209 |
|
|
|
0.45 |
|
|
|
183,398 |
|
|
|
1,012 |
|
|
|
2.21 |
|
Capital lease obligation |
|
|
6,608 |
|
|
|
79 |
|
|
|
4.78 |
|
|
|
7,475 |
|
|
|
90 |
|
|
|
4.82 |
|
Subordinated debt |
|
|
181,795 |
|
|
|
2,145 |
|
|
|
4.72 |
|
|
|
83,439 |
|
|
|
1,223 |
|
|
|
5.86 |
|
Total interest-bearing liabilities |
|
|
4,354,845 |
|
|
|
6,446 |
|
|
|
0.59 |
% |
|
|
4,029,798 |
|
|
|
13,648 |
|
|
|
1.35 |
% |
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
848,325 |
|
|
|
|
|
|
|
|
|
|
|
542,557 |
|
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
163,569 |
|
|
|
|
|
|
|
|
|
|
|
101,662 |
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,011,894 |
|
|
|
|
|
|
|
|
|
|
|
644,219 |
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
525,643 |
|
|
|
|
|
|
|
|
|
|
|
508,426 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
5,892,382 |
|
|
|
|
|
|
|
|
|
|
$ |
5,182,443 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
32,057 |
|
|
|
|
|
|
|
|
|
|
$ |
32,321 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
|
|
2.11 |
% |
|
|
|
|
|
|
|
|
|
|
2.30 |
% |
Net interest margin (D) |
|
|
|
|
|
|
|
|
|
|
2.28 |
% |
|
|
|
|
|
|
|
|
|
|
2.57 |
% |
- Average balances for available for sale securities are based on
amortized cost.
- Interest income is presented on a tax-equivalent basis using a
21% federal tax rate.
- Loans are stated net of unearned income and include nonaccrual
loans.
- Net interest income on a tax-equivalent basis as a percentage
of total average interest-earning assets.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONAVERAGE BALANCE
SHEETUNAUDITEDTHREE MONTHS ENDED(Tax-Equivalent Basis,
Dollars in Thousands)
|
|
March 31,
2021 |
|
|
December 31, 2020 |
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
761,187 |
|
|
$ |
2,629 |
|
|
|
1.38 |
% |
|
$ |
636,417 |
|
|
$ |
2,033 |
|
|
|
1.28 |
% |
Tax-exempt (A) (B) |
|
|
7,980 |
|
|
|
98 |
|
|
|
4.91 |
|
|
|
8,137 |
|
|
|
101 |
|
|
|
4.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
501,590 |
|
|
|
3,954 |
|
|
|
3.15 |
|
|
|
520,123 |
|
|
|
4,372 |
|
|
|
3.36 |
|
Commercial mortgages |
|
|
1,840,363 |
|
|
|
14,420 |
|
|
|
3.13 |
|
|
|
1,865,953 |
|
|
|
14,796 |
|
|
|
3.17 |
|
Commercial |
|
|
1,932,692 |
|
|
|
16,455 |
|
|
|
3.41 |
|
|
|
1,943,855 |
|
|
|
16,587 |
|
|
|
3.41 |
|
Commercial construction |
|
|
15,606 |
|
|
|
139 |
|
|
|
3.56 |
|
|
|
10,376 |
|
|
|
108 |
|
|
|
4.16 |
|
Installment |
|
|
37,695 |
|
|
|
276 |
|
|
|
2.93 |
|
|
|
44,581 |
|
|
|
320 |
|
|
|
2.87 |
|
Home equity |
|
|
48,853 |
|
|
|
399 |
|
|
|
3.27 |
|
|
|
51,545 |
|
|
|
429 |
|
|
|
3.33 |
|
Other |
|
|
246 |
|
|
|
5 |
|
|
|
8.13 |
|
|
|
281 |
|
|
|
6 |
|
|
|
8.54 |
|
Total loans |
|
|
4,377,045 |
|
|
|
35,648 |
|
|
|
3.26 |
|
|
|
4,436,714 |
|
|
|
36,618 |
|
|
|
3.30 |
|
Federal funds sold |
|
|
102 |
|
|
|
— |
|
|
|
0.25 |
|
|
|
102 |
|
|
|
— |
|
|
|
0.25 |
|
Interest-earning deposits |
|
|
555,331 |
|
|
|
128 |
|
|
|
0.09 |
|
|
|
614,024 |
|
|
|
148 |
|
|
|
0.10 |
|
Total interest-earning assets |
|
|
5,701,645 |
|
|
|
38,503 |
|
|
|
2.70 |
% |
|
|
5,695,394 |
|
|
|
38,900 |
|
|
|
2.73 |
% |
Noninterest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
11,129 |
|
|
|
|
|
|
|
|
|
|
|
9,632 |
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses |
|
|
(71,160 |
) |
|
|
|
|
|
|
|
|
|
|
(68,862 |
) |
|
|
|
|
|
|
|
|
Premises and equipment |
|
|
22,634 |
|
|
|
|
|
|
|
|
|
|
|
21,698 |
|
|
|
|
|
|
|
|
|
Other assets |
|
|
228,134 |
|
|
|
|
|
|
|
|
|
|
|
238,856 |
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
190,737 |
|
|
|
|
|
|
|
|
|
|
|
201,324 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,892,382 |
|
|
|
|
|
|
|
|
|
|
$ |
5,896,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
1,908,380 |
|
|
$ |
978 |
|
|
|
0.20 |
% |
|
$ |
1,850,917 |
|
|
$ |
1,059 |
|
|
|
0.23 |
% |
Money markets |
|
|
1,259,597 |
|
|
|
794 |
|
|
|
0.25 |
|
|
|
1,273,681 |
|
|
|
811 |
|
|
|
0.25 |
|
Savings |
|
|
135,202 |
|
|
|
17 |
|
|
|
0.05 |
|
|
|
128,195 |
|
|
|
17 |
|
|
|
0.05 |
|
Certificates of deposit – retail |
|
|
533,488 |
|
|
|
1,470 |
|
|
|
1.10 |
|
|
|
602,068 |
|
|
|
2,106 |
|
|
|
1.40 |
|
Subtotal interest-bearing deposits |
|
|
3,836,667 |
|
|
|
3,259 |
|
|
|
0.34 |
|
|
|
3,854,861 |
|
|
|
3,993 |
|
|
|
0.41 |
|
Interest-bearing demand – brokered |
|
|
110,000 |
|
|
|
493 |
|
|
|
1.79 |
|
|
|
113,696 |
|
|
|
514 |
|
|
|
1.81 |
|
Certificates of deposit – brokered |
|
|
33,769 |
|
|
|
261 |
|
|
|
3.09 |
|
|
|
33,756 |
|
|
|
267 |
|
|
|
3.16 |
|
Total interest-bearing deposits |
|
|
3,980,436 |
|
|
|
4,013 |
|
|
|
0.40 |
|
|
|
4,002,313 |
|
|
|
4,774 |
|
|
|
0.48 |
|
Borrowings |
|
|
186,006 |
|
|
|
209 |
|
|
|
0.45 |
|
|
|
244,753 |
|
|
|
616 |
|
|
|
1.01 |
|
Capital lease obligation |
|
|
6,608 |
|
|
|
79 |
|
|
|
4.78 |
|
|
|
6,832 |
|
|
|
82 |
|
|
|
4.80 |
|
Subordinated debt |
|
|
181,795 |
|
|
|
2,145 |
|
|
|
4.72 |
|
|
|
94,437 |
|
|
|
1,325 |
|
|
|
5.61 |
|
Total interest-bearing liabilities |
|
|
4,354,845 |
|
|
|
6,446 |
|
|
|
0.59 |
% |
|
|
4,348,335 |
|
|
|
6,797 |
|
|
|
0.63 |
% |
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
848,325 |
|
|
|
|
|
|
|
|
|
|
|
858,004 |
|
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
163,569 |
|
|
|
|
|
|
|
|
|
|
|
166,933 |
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,011,894 |
|
|
|
|
|
|
|
|
|
|
|
1,024,937 |
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
525,643 |
|
|
|
|
|
|
|
|
|
|
|
523,446 |
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders’ equity |
|
$ |
5,892,382 |
|
|
|
|
|
|
|
|
|
|
$ |
5,896,718 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
32,057 |
|
|
|
|
|
|
|
|
|
|
$ |
32,103 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
|
|
2.11 |
% |
|
|
|
|
|
|
|
|
|
|
2.10 |
% |
Net interest margin (D) |
|
|
|
|
|
|
|
|
|
|
2.28 |
% |
|
|
|
|
|
|
|
|
|
|
2.25 |
% |
- Average balances for available for sale securities are based on
amortized cost.
- Interest income is presented on a tax-equivalent basis using a
21% federal tax rate.
- Loans are stated net of unearned income and include nonaccrual
loans.
- 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 period end common shares
outstanding, as compared to book value per common share, which we
calculate by dividing shareholders’ equity by period end common
shares outstanding. 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 ORE 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 one reasonable measure of core expenses
relative to core revenue.
We believe that these non-GAAP financial
measures provide information that is important to investors and
that is useful in understanding our financial position, results and
ratios. 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.
Non-GAAP Financial Reconciliation
(Dollars in thousands, except share data)
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
Tangible
Book Value Per Share |
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
Shareholders’
equity |
|
$ |
522,441 |
|
|
$ |
527,122 |
|
|
$ |
522,728 |
|
|
$ |
507,980 |
|
|
$ |
496,440 |
|
Less:
Intangible assets, net |
|
|
43,524 |
|
|
|
43,891 |
|
|
|
39,622 |
|
|
|
39,943 |
|
|
|
40,265 |
|
Tangible equity |
|
|
478,917 |
|
|
|
483,231 |
|
|
|
483,106 |
|
|
|
468,037 |
|
|
|
456,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding |
|
|
19,034,870 |
|
|
|
18,974,703 |
|
|
|
18,924,953 |
|
|
|
18,905,135 |
|
|
|
18,852,523 |
|
Tangible book value
per share |
|
$ |
25.16 |
|
|
$ |
25.47 |
|
|
$ |
25.53 |
|
|
$ |
24.76 |
|
|
$ |
24.20 |
|
Book value per
share |
|
|
27.45 |
|
|
|
27.78 |
|
|
|
27.62 |
|
|
|
26.87 |
|
|
|
26.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
Equity to Tangible Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,969,627 |
|
|
$ |
5,890,442 |
|
|
$ |
5,958,107 |
|
|
$ |
6,281,215 |
|
|
$ |
5,831,458 |
|
Less: Intangible
assets, net |
|
|
43,524 |
|
|
|
43,891 |
|
|
|
39,622 |
|
|
|
39,943 |
|
|
|
40,265 |
|
Tangible assets |
|
|
5,926,103 |
|
|
|
5,846,551 |
|
|
|
5,918,485 |
|
|
|
6,241,272 |
|
|
|
5,791,193 |
|
Less: PPP Loans |
|
|
232,721 |
|
|
|
195,574 |
|
|
|
201,991 |
|
|
|
547,004 |
|
|
|
— |
|
Tangible Assets excluding PPP Loans |
|
|
5,693,382 |
|
|
|
5,650,977 |
|
|
|
5,716,494 |
|
|
|
5,694,268 |
|
|
|
5,791,193 |
|
Tangible equity to
tangible assets |
|
|
8.08 |
% |
|
|
8.27 |
% |
|
|
8.16 |
% |
|
|
7.50 |
% |
|
|
7.88 |
% |
Tangible equity to
tangible assets excluding PPP loans |
|
|
8.41 |
% |
|
|
8.55 |
% |
|
|
8.45 |
% |
|
|
8.22 |
% |
|
|
7.88 |
% |
Equity to assets
(A) |
|
|
8.75 |
% |
|
|
8.95 |
% |
|
|
8.77 |
% |
|
|
8.09 |
% |
|
|
8.51 |
% |
- Equity to total assets would be 9.11% if PPP loans of $233
million were excluded from total assets of March 31, 2021. Equity
to total assets would be 9.26% if PPP loans of $196 million were
excluded from total assets as of December 31, 2020. Equity to total
assets would be 9.08% if PPP loans of $202 million were excluded
from total assets as of September 30, 2020. Equity to total assets
would be 8.86% if PPP loans of $547 million were excluded from
total assets as of June 30, 2020.
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
Return on
Average Tangible Equity |
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
Net income |
|
$ |
13,178 |
|
|
$ |
3,030 |
|
|
$ |
13,547 |
|
|
$ |
8,242 |
|
|
$ |
1,373 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
shareholders’ equity |
|
$ |
525,643 |
|
|
$ |
523,446 |
|
|
$ |
514,736 |
|
|
$ |
502,683 |
|
|
$ |
508,426 |
|
Less: Average
intangible assets, net |
|
|
43,742 |
|
|
|
40,336 |
|
|
|
39,811 |
|
|
|
40,139 |
|
|
|
40,459 |
|
Average tangible equity |
|
|
481,901 |
|
|
|
483,110 |
|
|
|
474,925 |
|
|
|
462,544 |
|
|
|
467,967 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity |
|
|
10.94 |
% |
|
|
2.51 |
% |
|
|
11.41 |
% |
|
|
7.13 |
% |
|
|
1.17 |
% |
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
Efficiency Ratio |
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
Net interest
income |
|
$ |
31,793 |
|
|
$ |
31,735 |
|
|
$ |
32,149 |
|
|
$ |
31,971 |
|
|
$ |
31,747 |
|
Total other
income |
|
|
17,820 |
|
|
|
14,406 |
|
|
|
20,211 |
|
|
|
12,626 |
|
|
|
14,517 |
|
Less:
Loss/(gain) on loans held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
at lower of cost or
fair value |
|
|
(282 |
) |
|
|
— |
|
|
|
(7,429 |
) |
|
|
— |
|
|
|
3 |
|
Less: Income
from life insurance proceeds |
|
|
(302 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Add:
Securities (gains)/losses, net |
|
|
265 |
|
|
|
42 |
|
|
|
— |
|
|
|
(125 |
) |
|
|
(198 |
) |
Total recurring
revenue |
|
|
49,294 |
|
|
|
46,183 |
|
|
|
44,931 |
|
|
|
44,472 |
|
|
|
46,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
31,594 |
|
|
|
39,249 |
|
|
|
28,461 |
|
|
|
29,014 |
|
|
|
28,235 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB
prepayment penalty |
|
|
— |
|
|
|
4,784 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Valuation allowance loans held for sale |
|
|
— |
|
|
|
4,425 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Severance expense |
|
|
1,532 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total operating
expense |
|
|
30,062 |
|
|
|
30,040 |
|
|
|
28,461 |
|
|
|
29,014 |
|
|
|
28,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio |
|
|
60.99 |
% |
|
|
65.05 |
% |
|
|
63.34 |
% |
|
|
65.24 |
% |
|
|
61.29 |
% |
Contact:
Jeffrey J. Carfora, SEVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-719-4308
Peapack Gladstone Financ... (NASDAQ:PGC)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Peapack Gladstone Financ... (NASDAQ:PGC)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024