via NewMediaWire -- Peapack-Gladstone Financial Corporation
(
NASDAQ Global Select Market: PGC) (the “Company”)
announces its second quarter 2021 results.
This earnings release should be read in conjunction with
the Company’s Q2 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.
For the six months ended June 30, 2021, the Company recorded
total revenue of $101.14 million, net income of $27.60 million and
diluted earnings per share (“EPS”) of $1.42 compared to $90.87
million, $9.62 million and $0.51, respectively, for the same
six-month period ended June 30, 2020.
For the quarter ended June 30, 2021, the Company recorded total
revenue of $51.52 million, net income of $14.42 million and diluted
earnings per share (“EPS”) of $0.74, compared to $44.59 million,
$8.24 million and $0.43, respectively, for the same three-month
period ended June 30, 2020.
The quarter ended June 30, 2021 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) when compared to the same quarter in 2020. The
2021 quarter also included a significantly reduced provision for
loan losses when compared to the same quarter last year. The
decreased provision in the June 2021 quarter was due to the
environment in 2020 created by the COVID-19 pandemic, which led to
increased qualitative loss factors when calculating the allowance
for loan losses.
The June 2021 quarter included a $1.13 million gain on the sale
of Paycheck Protection Program (“PPP”) loans; fee income of
$722,000 relating to PPP loan referrals to a third party; and
$153,000 of additional BOLI income related to receipt of life
insurance proceeds. These positives were substantially offset by a
$842,000 cost (included as a negative to noninterest income)
related to the termination of two interest rate swaps, and $648,000
of accelerated expense related to the prepayment of $50.0 million
of subordinated notes. Both actions will have a positive
impact on earnings going forward.
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 second quarter of 2021 the
Company purchased 234,722 shares at an average price of $32.40 for
a total cost of $7.60 million under this program. Since
announced, the Company has purchased 392,755 shares at an average
price of $30.51 for a total cost of $11.98 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 valuation relative to peers.”
Mr. Kennedy also said, “During 2021 the Company participated in
the 2021 round of the PPP, which provided much needed funding to
qualifying small businesses and organizations. During the six
months of 2021 we assisted with over $181 million of PPP loans -
$57 million processed and funded by the Bank, and another $124
million referred directly to a third party for processing and
funding. During the second quarter, the Company sold the $57
million of loans to the same third party to create additional
capacity to process our strong loan pipeline.”
EXECUTIVE SUMMARY:
The following tables summarize specified
financial measures for the periods shown.
June 2021 Year Compared to Prior
Year
|
|
Six Months Ended |
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
Increase/ |
|
(Dollars in
millions, except per share data) |
|
2021 |
|
|
2020 |
|
|
|
(Decrease) |
|
Net interest
income |
|
$ |
65.64 |
|
|
$ |
63.72 |
|
|
|
$ |
1.92 |
|
|
|
3 |
% |
Wealth management fee
income (A) |
|
|
25.17 |
|
|
|
19.95 |
|
|
|
|
5.22 |
|
|
|
26 |
|
Capital markets
activity (B) |
|
|
5.03 |
|
|
|
3.85 |
|
|
|
|
1.18 |
|
|
|
31 |
|
Other income (C) |
|
|
5.30 |
|
|
|
3.35 |
|
|
|
|
1.95 |
|
|
|
58 |
|
Total other
income |
|
|
35.50 |
|
|
|
27.15 |
|
|
|
|
8.35 |
|
|
|
31 |
|
Operating expenses
(D) |
|
|
62.28 |
|
|
|
57.25 |
|
|
|
|
5.03 |
|
|
|
9 |
|
Pretax income before
provision for loan losses |
|
|
38.86 |
|
|
|
33.62 |
|
|
|
|
5.24 |
|
|
|
16 |
|
Provision for loan and
lease losses (E) |
|
|
1.13 |
|
|
|
24.90 |
|
|
|
|
(23.77 |
) |
|
|
(95 |
) |
Pretax income |
|
|
37.73 |
|
|
|
8.72 |
|
|
|
|
29.01 |
|
|
|
333 |
|
Income tax
expense/(benefit) (F) |
|
|
10.13 |
|
|
|
(0.90 |
) |
|
|
|
11.03 |
|
|
N/A |
|
Net income |
|
$ |
27.60 |
|
|
$ |
9.62 |
|
|
|
$ |
17.98 |
|
|
|
187 |
% |
Diluted EPS |
|
$ |
1.42 |
|
|
$ |
0.51 |
|
|
|
$ |
0.91 |
|
|
|
178 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue (G) |
|
$ |
101.14 |
|
|
$ |
90.87 |
|
|
|
$ |
10.27 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets annualized |
|
|
0.93 |
% |
|
|
0.35 |
% |
|
|
|
0.58 |
|
|
|
|
|
Return on average
equity annualized |
|
|
10.45 |
% |
|
|
3.80 |
% |
|
|
|
6.65 |
|
|
|
|
|
- The June 2021 six months included 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 $1.2 million of wealth management fee income and
approximately $700,000 of operating expenses were recorded in 2021
from these teams.
- 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 six
months ended June 30, 2021, compared to $1.6 million in the same
2020 period. The three months ended March 31, 2021 included
$1.1 million of corporate advisory fee income related to a large
investment banking advisory event which closed in that quarter.
- Included a cost of $842,000 related to the termination of
interest rate swaps; $1.4 million gain on loans held at lower of
cost or fair value; $722,000 of fee income related to the referral
of PPP loans to a third party; and $455,000 of additional BOLI
income related to receipt of life insurance proceeds.
- The 2021 six months included $1.5 million of severance expense
related to certain corporate restructuring within several areas of
the Bank and $648,000 of expense related to the redemption of
subordinated debt.
- The 2020 year included a provision for loan and lease losses of
$24.9 million, primarily due to the environment at that time
created by the COVID-19 pandemic.
- The 2020 year 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.
June 2021 Quarter Compared to Prior Year
Quarter
|
|
Three Months Ended |
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
|
June 30, |
|
|
Increase/ |
|
(Dollars
in millions, except per share data) |
|
2021 |
|
|
|
2020 |
|
|
(Decrease) |
|
Net interest
income |
|
$ |
33.85 |
|
|
|
$ |
31.97 |
|
|
$ |
1.88 |
|
|
|
6 |
% |
Wealth management
fee income (A) |
|
|
13.03 |
|
|
|
|
10.00 |
|
|
|
3.03 |
|
|
|
30 |
|
Capital markets
activity (B) |
|
|
1.46 |
|
|
|
|
1.08 |
|
|
|
0.38 |
|
|
|
35 |
|
Other income
(C) |
|
|
3.18 |
|
|
|
|
1.54 |
|
|
|
1.64 |
|
|
|
106 |
|
Total other
income |
|
|
17.67 |
|
|
|
|
12.62 |
|
|
|
5.05 |
|
|
|
40 |
|
Operating expenses
(D) |
|
|
30.68 |
|
|
|
|
29.01 |
|
|
|
1.67 |
|
|
|
6 |
|
Pretax income
before provision for loan losses |
|
|
20.84 |
|
|
|
|
15.58 |
|
|
|
5.26 |
|
|
|
34 |
|
Provision for loan
and lease losses (E) |
|
|
0.90 |
|
|
|
|
4.90 |
|
|
|
(4.00 |
) |
|
|
(82 |
) |
Pretax income |
|
|
19.94 |
|
|
|
|
10.68 |
|
|
|
9.26 |
|
|
|
87 |
|
Income tax
expense |
|
|
5.52 |
|
|
|
|
2.44 |
|
|
|
3.08 |
|
|
|
126 |
|
Net income |
|
$ |
14.42 |
|
|
|
$ |
8.24 |
|
|
$ |
6.18 |
|
|
|
75 |
% |
Diluted EPS |
|
$ |
0.74 |
|
|
|
$ |
0.43 |
|
|
$ |
0.31 |
|
|
|
72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue
(F) |
|
$ |
51.52 |
|
|
|
$ |
44.59 |
|
|
$ |
6.93 |
|
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets annualized |
|
|
0.97 |
% |
|
|
|
0.56 |
% |
|
|
0.41 |
|
|
|
|
|
Return on average
equity annualized |
|
|
10.86 |
% |
|
|
|
6.56 |
% |
|
|
4.30 |
|
|
|
|
|
- The June 2021 quarter included a full quarter of wealth
management fee income and expense related to the December lift outs
of teams from Lucas and Noyes - approximately $625,000 of wealth
management fee income and approximately $350,000 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.
- The quarter ended June 30, 2021 included a cost of $842,000
related to the termination of certain interest rate swaps; a $1.1
million gain on the sale of PPP loans; $722,000 of fee income
related to the referral of PPP loans to a third party; and $153,000
of additional BOLI income related to receipt of life insurance
proceeds.
- The June 2021 quarter includes $648,000 of expense related to
the redemption of subordinated debt.
- The June 2020 quarter included a provision for loan and lease
losses of $4.9 million, primarily due to the environment at that
time created by the COVID-19 pandemic.
- Total revenue equals net interest income plus total other
income.
June 2021 Quarter Compared to Linked
Quarter
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
March 31, |
|
|
|
Increase/ |
|
(Dollars in
millions, except per share data) |
|
2021 |
|
|
2021 |
|
|
|
(Decrease) |
|
Net interest
income |
|
$ |
33.85 |
|
|
$ |
31.79 |
|
|
|
$ |
2.06 |
|
|
|
6 |
% |
Wealth management fee
income |
|
|
13.03 |
|
|
|
12.13 |
|
|
|
|
0.90 |
|
|
|
7 |
|
Capital markets
activity (A) |
|
|
1.46 |
|
|
|
3.57 |
|
|
|
|
(2.11 |
) |
|
|
(59 |
) |
Other income (B) |
|
|
3.18 |
|
|
|
2.12 |
|
|
|
|
1.06 |
|
|
|
50 |
|
Total other
income |
|
|
17.67 |
|
|
|
17.82 |
|
|
|
|
(0.15 |
) |
|
|
(1 |
) |
Operating expenses
(C) |
|
|
30.68 |
|
|
|
31.59 |
|
|
|
|
(0.91 |
) |
|
|
(3 |
) |
Pretax income before
provision for loan losses |
|
|
20.84 |
|
|
|
18.02 |
|
|
|
|
2.82 |
|
|
|
16 |
|
Provision for loan and
lease losses |
|
|
0.90 |
|
|
|
0.23 |
|
|
|
|
0.67 |
|
|
|
291 |
|
Pretax income |
|
|
19.94 |
|
|
|
17.79 |
|
|
|
|
2.15 |
|
|
|
12 |
|
Income tax
expense |
|
|
5.52 |
|
|
|
4.61 |
|
|
|
|
0.91 |
|
|
|
20 |
|
Net income |
|
$ |
14.42 |
|
|
$ |
13.18 |
|
|
|
$ |
1.24 |
|
|
|
9 |
% |
Diluted EPS |
|
$ |
0.74 |
|
|
$ |
0.67 |
|
|
|
$ |
0.07 |
|
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenue (D) |
|
$ |
51.52 |
|
|
$ |
49.61 |
|
|
|
$ |
1.91 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets annualized |
|
|
0.97 |
% |
|
|
0.89 |
% |
|
|
|
0.08 |
|
|
|
|
|
Return on average
equity annualized |
|
|
10.86 |
% |
|
|
10.03 |
% |
|
|
|
0.83 |
|
|
|
|
|
- Capital markets activity includes loan level back-to-back swap
activities, the SBA lending and sale program, corporate advisory
and mortgage banking activities. The three months ended March 31,
2021 included $1.1 million of corporate advisory fee income related
to a large investment banking advisory event which closed in that
quarter.
- The quarter ended June 30, 2021 included a cost of $842,000
related to the termination of interest rate swaps; $1.1 million
gain on the sale of PPP loans; and $722,000 of fee income related
to the referral of PPP loans to a third party; and $153,000 of
additional BOLI income related to receipt of life insurance
proceeds.
- The June 2021 quarter includes $648,000 of expense related to
the redemption of subordinated debt. The quarter ended March 31,
2021 included $1.5 million of severance expense related to certain
corporate restructuring within several areas of the Bank.
- Total revenue equals net interest income plus total other
income.
The Company’s near-term priorities
include:
- Grow and expand our three primary drivers of profitability:
Wealth Management, Commercial Banking and Capital Markets
businesses.
- Maintain loan and deposit pricing discipline to protect and
grow our Net Interest Margin.
- Continue to execute on our stock repurchase program.
- Generate 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%.
Highlights of the Company’s quarterly
accomplishments follow:
Peapack Private Wealth Management:
- AUM/AUA in our Peapack Private Wealth Management Division grew
to $9.8 billion at June 30, 2021 (from $8.8 billion at December 31,
2020 and $7.5 billion at December 31, 2019).
- Wealth Management Fee Income increased to $13 million for Q2
2021 (compared to $10 million for Q2 2020).
- On July 1, 2021, closed on the acquisition of Princeton
Portfolio Strategies Group (“PPSG”), a registered investment
advisor headquartered in Princeton NJ with approximately $520
million of AUM/AUA.
Commercial Banking and Balance Sheet
Management:
- During Q2 2021, loans, excluding PPP loans, grew by $293
million (7% growth linked quarter: 28% annualized).
- Core deposits (which includes demand, savings and money market)
totaled 88% of total deposits at June 30, 2021. The total cost of
interest-bearing deposits improved to 0.34% for Q2 2021 compared to
0.40% for Q1 2021. Noninterest bearing DDA (included in core
deposits) totaled 20% of total deposits.
- Net interest margin improved by 10 basis points in Q2 2021 from
Q1 2021.
- $50 million of 6% subordinated debt (set to reprice to 5% on
July 1, 2021) was fully redeemed on June 30, 2021.
- $40 million of interest rate swaps with an all-in cost of
approximately 1.50% were terminated.
- Sold $57 million of PPP loans recognizing a gain of $1.1
million.
- Received $722,000 of fee income in Q2 2021 for the referral of
PPP loans to a third party for origination. (The sale and referral
of PPP loans created additional capacity for the Company to process
its strong loan pipeline).
Credit and Capital Management:
- During Q2, non-performing assets declined $6 million;
classified loans declined $15 million; and loans subject to special
mention declined $17 million. NPAs stood at just 0.10% of assets at
June 30, 2021.
- Continued to execute on the previously approved stock
repurchase program – during Q2 repurchased 234,722 shares at an
average price of $32.40 for a total cost of $7.6 million.
(Year-to-date through June 30, 2021, the Company has repurchased
392,755 shares).
- Tangible book value per share increased to $26.30 at June 30,
2021, despite the stock repurchase activity at prices above
tangible book value.
SUPPLEMENTAL QUARTERLY
DETAILS:
Wealth Management Business
In the June 2021 quarter, the Bank’s wealth
management business generated $13.03 million in fee income,
compared to $10.00 million for the June 2020 quarter, and $12.13
million for the March 2021 quarter.
The market value of the Company’s AUM/AUA
increased to $9.8 billion at June 30, 2021 from $8.8 billion at
December 31, 2020, and $7.2 billion at June 30, 2020 due to new
business as well as positive market action.
In the quarter ended June 30, 2021 the Company
announced the acquisition of PPSG, a registered investment advisor
headquartered in Princeton, New Jersey. Upon joining the
Company on July 1, 2021, PPSG had approximately $520 million of
AUM/AUA.
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 2021
with gross inflows of over $240 million for Q2 2021.” Babcock went
on to note, “We continue to look to grow our wealth business
organically and through selective acquisitions. And, 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 $4.58 billion at June 30, 2021
(including PPP loans of $84 million) increased $144 million from
$4.44 billion (including PPP loans of $233 million) at March 31,
2021. Excluding the decline in PPP loans during the June quarter,
loans grew $293 million, or 7% on a linked quarter basis (28%
annualized). During the quarter, multifamily loans grew $241
million and C&I loans grew $47 million.
Total C&I loans (including the PPP loans) at
June 30, 2021 were $1.88 billion or 41% of the total loan
portfolio. While C&I origination levels have been strong
throughout 2021, 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
pipelines are strong going into the third quarter, standing at
approximately $250 million with likelihood of closing during the
third 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.
Notwithstanding the sale and forgiveness of PPP loans and
significant payoff activity, we believe that we will achieve high
single digit loan growth, which was the upper end of our guidance
provided in the beginning of 2021.”
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 June 30, 2021 were $4.90
billion. While total deposits did not increase significantly over
the last year, the mix changed favorably, as noninterest bearing
demand deposits increased $48 million and interest-bearing demand
increased $174 million, while brokered deposits declined $45
million, and higher costing CDs declined $187 million, when
comparing June 30, 2021 to June 30, 2020.
Mr. Kennedy noted, “88% of our deposits are
demand, savings, or money market, and, our noninterest bearing
deposits comprise 20% of our total deposits; both metrics reinforce
the ‘core’ nature of our deposit base.”
At June 30, 2021, the Company’s balance sheet
liquidity (investments, interest-earning deposits and cash) totaled
$1.1 billion (or 18% of assets). The Company has
approximately $1.7 billion of secured funding available from the
Federal Home Loan Bank and $1.0 billion of secured funding
available from the Federal Reserve Discount Window. The
available funding from the Federal Home Loan Bank and the Federal
Reserve is secured by the Company’s loan and investment
portfolios.
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 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 68% of our loan portfolio reprices
within 2 years - 44% would reprice within 90 days, another 12%
within 3 to 12 months and another 12% repricing within year
two.”
Net Interest Income (NII)/Net Interest
Margin (NIM)
|
Six Months Ended |
|
|
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
June 30, 2021 |
|
|
June 30, 2020 |
|
|
|
|
|
|
|
|
|
|
NII |
|
|
NIM |
|
|
NII |
|
|
NIM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NII/NIM
excluding the below |
$ |
63,001 |
|
|
2.51% |
|
|
$ |
61,403 |
|
|
2.54% |
|
|
|
|
|
|
|
|
|
Prepayment
premiums received on loan paydowns |
|
1,205 |
|
|
0.05% |
|
|
|
901 |
|
|
0.04% |
|
|
|
|
|
|
|
|
|
Effect of
maintaining excess interest earning cash |
|
(300 |
) |
|
-0.18% |
|
|
|
(563 |
) |
|
-0.15% |
|
|
|
|
|
|
|
|
|
Effect of PPP
loans |
|
1,732 |
|
|
-0.06% |
|
|
|
1,977 |
|
|
-0.02% |
|
|
|
|
|
|
|
|
|
NII/NIM as
reported |
$ |
65,638 |
|
|
2.32% |
|
|
$ |
63,718 |
|
|
2.41% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
June 30, 2021 |
|
|
March 31, 2021 |
|
|
June 30, 2020 |
|
|
NII |
|
|
NIM |
|
|
NII |
|
|
NIM |
|
|
NII |
|
|
NIM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NII/NIM
excluding the below |
$ |
32,446 |
|
|
2.56% |
|
|
$ |
30,565 |
|
|
2.49% |
|
|
$ |
29,881 |
|
|
2.45% |
|
Prepayment
premiums received on loan paydowns |
|
501 |
|
|
0.04% |
|
|
|
704 |
|
|
0.05% |
|
|
|
376 |
|
|
0.03% |
|
Effect of
maintaining excess interest earning cash |
|
(115 |
) |
|
-0.15% |
|
|
|
(195 |
) |
|
-0.21% |
|
|
|
(263 |
) |
|
-0.19% |
|
Effect of PPP
loans |
|
1,013 |
|
|
-0.07% |
|
|
|
719 |
|
|
-0.05% |
|
|
|
1,977 |
|
|
-0.02% |
|
NII/NIM as
reported |
$ |
33,845 |
|
|
2.38% |
|
|
$ |
31,793 |
|
|
2.28% |
|
|
$ |
31,971 |
|
|
2.27% |
|
As shown above, the Company’s reported NIM
increased 10 basis points compared to the linked quarter. The Bank
strategically lowered its cost of deposits and used much of its
excess liquidity to grow loans, both of which benefitted NIM.
Future net interest income and net interest margin should
benefit from the following:
- Full realization of the second quarter loan growth, as well as
robust loan pipelines.
- Continued downward repricing of maturing CDs.
- Redemption of $50 million of subordinated debt during the June
quarter.
- Termination of $40 million notional interest rate swaps during
the June quarter.
Income from Capital Markets
Activities
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
June 30, |
|
|
March 31, |
|
|
June 30, |
|
(Dollars
in thousands, except per share data) |
|
2021 |
|
|
2021 |
|
|
2020 |
|
Gain on loans held
for sale at fair value (Mortgage banking) |
|
$ |
409 |
|
|
$ |
1,025 |
|
|
$ |
550 |
|
Fee income related
to loan level, back-to-back swaps |
|
|
— |
|
|
|
— |
|
|
|
202 |
|
Gain on sale of SBA
loans |
|
|
932 |
|
|
|
1,449 |
|
|
|
258 |
|
Corporate advisory
fee income |
|
|
121 |
|
|
|
1,098 |
|
|
|
65 |
|
Total capital
markets activity |
|
$ |
1,462 |
|
|
$ |
3,572 |
|
|
$ |
1,075 |
|
Noninterest income from Capital Markets
activities (SBA lending and sale program, mortgage banking
activity, corporate advisory activity and loan level back-to-back
swap activities) totaled $1.46 million for the June 2021 quarter
compared to $3.57 million for the March 2021 quarter and $1.08
million for the June 2020 quarter. The June 2021 and March
2021 quarter results were driven by $932,000 and $1.45 million gain
on sale of SBA loans, respectively. The March 2021 quarter
reflected increased mortgage banking activity due to greater
refinance activity in the low rate environment. During the March
2021 quarter, the Company recorded $1.1 million of corporate
advisory fee income related to a large investment banking advisory
event which closed in that quarter. These transactions tend
to be larger and take longer to complete. As noted previously, the
pipeline of such business is fairly robust. The June 2021 and March
2021 quarters 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 June 2020 quarter
included $202,000 of such income.
Other Noninterest Income (other than
Wealth Management fee income and Income from Capital Markets
Activities)
The June 2021 quarter included approximately
$153,000 and the March 2021 quarter included approximately $302,000
of Bank Owned Life Insurance income due to receipt of life
insurance proceeds. Such proceeds were nontaxable. The June 2021
quarter included $1.13 million gain on the sale of PPP loans, while
the March 2021 quarter included a $282,000 gain on sale of $8
million of loans that had payment issues and were classified as
held for sale as of December 31, 2020. The Company also received
$722,000 of fee income related to referral of PPP loans to a third
party. Partially offsetting the above items in the June 2021
quarter, the Company recorded a one-time $842,000 cost on the
termination of $40 million notional interest rate swaps with an
all-in cost of 1.50%.
Operating Expenses
The Company’s total operating expenses were
$30.68 million for the quarter ended June 30, 2021, compared to
$31.59 million for the March 2021 quarter and $29.01 million for
the June 2020 quarter. The June 2021 quarter included $648,000 of
expense related to the redemption of subordinated debt. The March
2021 quarter included $1.5 million of severance expense related to
certain corporate restructuring within several areas of the Bank.
The June and March 2021 quarter included a full quarter’s worth of
expense related to Lucas and Noyes (approximately $350,000 in each
quarter).
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 June 30, 2021 was 27.69%, as compared to 25.94% for the March
2021 quarter and 22.85% for the quarter ended June 30, 2020. The
March 31, 2021 quarter benefitted from life insurance proceeds that
were not taxable and from the vesting of restricted stock at prices
higher than grant prices. The effective tax rate for the June 2020
quarter was impacted by reduced taxable income due to the
environment created by the Pandemic.
The effective tax rate for the six months of
2021 was 26.87% compared to a net tax benefit recorded for the
first six months of 2020. 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 Q2 2021 Investor Update (and
Supplemental Financial Information).
Nonperforming assets at June 30, 2021 (which
does not include troubled debt restructured loans that are
performing in accordance with their terms) were $6.0 million, or
0.10% of total assets, down from $11.8 million, or 0.20% of total
assets, at March 31, 2021 and down significantly from $26.7
million, or 0.43% of total assets, at June 30, 2020.
For the quarter ended June 30, 2021, the
Company’s provision for loan and lease losses was $900,000 compared
to $225,000 for the March 2021 quarter and $4.90 million for the
June 2020 quarter. The decreased provision for loan and lease
losses in the 2021 quarters when compared to the 2020 quarters
reflects the reduced qualitative loss factors related to the
unemployment rate and amount of loan deferrals and other economic
qualitative factors due to the COVID-19 pandemic when calculating
the allowance for loan losses. Loan deferrals entered into during
the COVID-19 pandemic have come down significantly from the prior
year (declined from $914 million at June 30, 2020 to $37 million at
June 30, 2021). The Company’s provision for loan and lease losses
(and its allowance for loan and lease losses) also reflects, among
other things, the Company’s assessment of asset quality metrics,
net charge-offs/recoveries, and the composition of the loan
portfolio.
At June 30, 2021, the allowance for loan and
lease losses was $63.51 million (1.39% of total loans), compared to
$67.31 million at December 31, 2020 (1.53% of total loans), and
$66.07 million at June 30, 2020 (1.35% 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 June
2021 quarter was benefitted by net income of $14.42 million which
was offset by the purchase of shares through the Company’s stock
repurchase program. During the second quarter of 2021, the
Company purchased 234,722 shares at an average price of $32.40 for
a total cost of $7.6 million. GAAP Capital at June 30, 2021
was also benefitted by a decrease in the unrealized loss on
securities from March 31, 2021 to June 30, 2021, due to market
value appreciation of the AFS investment securities portfolio.
The Company’s and Bank’s capital ratios at June
30, 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. At the time, the Company noted the proceeds raised
would be used for general corporate purposes, which could include
stock repurchases, the redemption of the Company’s existing 6%
subordinated debt and acquisitions of wealth management firms.
Throughout the first half of 2021, the Company repurchased $12
million of stock. On June 30, 2021 the Company redeemed its
6% subordinated debt. On July 1, 2021 the Company closed on the
acquisition of Princeton Portfolio Strategies Group.
The Company employs quarterly capital stress
testing run under multiple scenarios, including a no growth,
severely adverse case. In such case as of March 31, 2021, 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 Q2 2021 Investor Update (and Supplemental Financial
Information).
On July 27, 2021, the Company declared a cash
dividend of $0.05 per share payable on August 24, 2021 to
shareholders of record on August 10, 2021.
ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a New
Jersey bank holding company with total assets of $5.8 billion and
assets under management/administration of $9.8 billion as of June
30, 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;
- a 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 higher
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 increase 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 an elimination of 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 |
|
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
Income
Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
$ |
39,686 |
|
|
$ |
38,239 |
|
|
$ |
38,532 |
|
|
$ |
40,174 |
|
|
$ |
41,649 |
|
Interest
expense |
|
|
5,841 |
|
|
|
6,446 |
|
|
|
6,797 |
|
|
|
8,025 |
|
|
|
9,678 |
|
Net interest income |
|
|
33,845 |
|
|
|
31,793 |
|
|
|
31,735 |
|
|
|
32,149 |
|
|
|
31,971 |
|
Wealth management
fee income |
|
|
13,034 |
|
|
|
12,131 |
|
|
|
10,791 |
|
|
|
10,119 |
|
|
|
9,996 |
|
Service charges and
fees |
|
|
896 |
|
|
|
846 |
|
|
|
859 |
|
|
|
785 |
|
|
|
695 |
|
Bank owned life
insurance |
|
|
466 |
|
|
|
611 |
|
|
|
313 |
|
|
|
314 |
|
|
|
318 |
|
Gain on loans held
for sale at fair value (Mortgage banking) (A) |
|
|
409 |
|
|
|
1,025 |
|
|
|
1,470 |
|
|
|
954 |
|
|
|
550 |
|
Gain/(loss) on
loans held for sale at lower of cost or fair
value(B) |
|
|
1,125 |
|
|
|
282 |
|
|
|
— |
|
|
|
7,429 |
|
|
|
— |
|
Fee income related
to loan level, back-to-back swaps (A) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
202 |
|
Gain on sale of SBA
loans (A) |
|
|
932 |
|
|
|
1,449 |
|
|
|
375 |
|
|
|
79 |
|
|
|
258 |
|
Corporate advisory
fee income (A) |
|
|
121 |
|
|
|
1,098 |
|
|
|
50 |
|
|
|
75 |
|
|
|
65 |
|
Loss on swap
termination |
|
|
(842 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other income
(C) |
|
|
1,495 |
|
|
|
643 |
|
|
|
590 |
|
|
|
456 |
|
|
|
417 |
|
Securities
gains/(losses), net |
|
|
42 |
|
|
|
(265 |
) |
|
|
(42 |
) |
|
|
— |
|
|
|
125 |
|
Total other income |
|
|
17,678 |
|
|
|
17,820 |
|
|
|
14,406 |
|
|
|
20,211 |
|
|
|
12,626 |
|
Salaries and
employee benefits (D) |
|
|
19,910 |
|
|
|
21,990 |
|
|
|
19,902 |
|
|
|
19,202 |
|
|
|
19,186 |
|
Premises and
equipment |
|
|
4,074 |
|
|
|
4,113 |
|
|
|
4,189 |
|
|
|
4,109 |
|
|
|
4,036 |
|
FDIC insurance
expense |
|
|
529 |
|
|
|
585 |
|
|
|
665 |
|
|
|
605 |
|
|
|
455 |
|
FHLB prepayment
penalty |
|
|
— |
|
|
|
— |
|
|
|
4,784 |
|
|
|
— |
|
|
|
— |
|
Valuation allowance
loans held for sale (E) |
|
|
— |
|
|
|
— |
|
|
|
4,425 |
|
|
|
— |
|
|
|
— |
|
Other expenses |
|
|
6,171 |
|
|
|
4,906 |
|
|
|
5,284 |
|
|
|
4,545 |
|
|
|
5,337 |
|
Total operating expenses |
|
|
30,684 |
|
|
|
31,594 |
|
|
|
39,249 |
|
|
|
28,461 |
|
|
|
29,014 |
|
Pretax income
before provision for loan losses |
|
|
20,839 |
|
|
|
18,019 |
|
|
|
6,892 |
|
|
|
23,899 |
|
|
|
15,583 |
|
Provision for loan
and lease losses (F) |
|
|
900 |
|
|
|
225 |
|
|
|
2,350 |
|
|
|
5,150 |
|
|
|
4,900 |
|
Income/(loss)
before income taxes |
|
|
19,939 |
|
|
|
17,794 |
|
|
|
4,542 |
|
|
|
18,749 |
|
|
|
10,683 |
|
Income tax
expense |
|
|
5,521 |
|
|
|
4,616 |
|
|
|
1,512 |
|
|
|
5,202 |
|
|
|
2,441 |
|
Net income |
|
$ |
14,418 |
|
|
$ |
13,178 |
|
|
$ |
3,030 |
|
|
$ |
13,547 |
|
|
$ |
8,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
(G) |
|
$ |
51,523 |
|
|
$ |
49,613 |
|
|
$ |
46,141 |
|
|
$ |
52,360 |
|
|
$ |
44,597 |
|
Per Common
Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
(basic) |
|
$ |
0.76 |
|
|
$ |
0.70 |
|
|
$ |
0.16 |
|
|
$ |
0.72 |
|
|
$ |
0.44 |
|
Earnings per share
(diluted) |
|
|
0.74 |
|
|
|
0.67 |
|
|
|
0.16 |
|
|
|
0.71 |
|
|
|
0.43 |
|
Weighted
average number of common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,963,237 |
|
|
|
18,950,305 |
|
|
|
18,947,864 |
|
|
|
18,908,337 |
|
|
|
18,872,070 |
|
Diluted |
|
|
19,439,439 |
|
|
|
19,531,689 |
|
|
|
19,334,569 |
|
|
|
19,132,650 |
|
|
|
19,059,822 |
|
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets annualized (ROAA) |
|
|
0.97 |
% |
|
|
0.89 |
% |
|
|
0.21 |
% |
|
|
0.89 |
% |
|
|
0.56 |
% |
Return on average
equity annualized (ROAE) |
|
|
10.86 |
% |
|
|
10.03 |
% |
|
|
2.32 |
% |
|
|
10.53 |
% |
|
|
6.56 |
% |
Return on average
tangible common equity (ROATCE) (H) |
|
|
11.83 |
% |
|
|
10.94 |
% |
|
|
2.51 |
% |
|
|
11.41 |
% |
|
|
7.13 |
% |
Net interest margin
(tax-equivalent basis) |
|
|
2.38 |
% |
|
|
2.28 |
% |
|
|
2.25 |
% |
|
|
2.20 |
% |
|
|
2.27 |
% |
GAAP efficiency
ratio (I) |
|
|
59.55 |
% |
|
|
63.68 |
% |
|
|
85.06 |
% |
|
|
54.36 |
% |
|
|
65.06 |
% |
Operating expenses
/ average assets annualized |
|
|
2.06 |
% |
|
|
2.14 |
% |
|
|
2.66 |
% |
|
|
1.86 |
% |
|
|
1.97 |
% |
- 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 $355 million and $57 million of PPP loans
completed in the September 2020 and June 2021 quarters,
respectively.
- Includes income of $722,000 from the referral of PPP loans to a
third-party firm during the June 2021 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.
- 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 CORPORATIONSELECTED CONSOLIDATED
FINANCIAL DATA(Dollars in Thousands, except share
data) (Unaudited)
|
|
For the Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
Change |
|
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|
Income
Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
$ |
77,925 |
|
|
$ |
87,044 |
|
|
$ |
(9,119 |
) |
|
|
-10 |
% |
Interest
expense |
|
|
12,287 |
|
|
|
23,326 |
|
|
|
(11,039 |
) |
|
|
-47 |
% |
Net interest income |
|
|
65,638 |
|
|
|
63,718 |
|
|
|
1,920 |
|
|
|
3 |
% |
Wealth management
fee income |
|
|
25,165 |
|
|
|
19,951 |
|
|
|
5,214 |
|
|
|
26 |
% |
Service charges and
fees |
|
|
1,742 |
|
|
|
1,511 |
|
|
|
231 |
|
|
|
15 |
% |
Bank owned life
insurance |
|
|
1,077 |
|
|
|
646 |
|
|
|
431 |
|
|
|
67 |
% |
Gain on loans held
for sale at fair value (Mortgage banking) (A) |
|
|
1,434 |
|
|
|
842 |
|
|
|
592 |
|
|
|
70 |
% |
Gain on loans held
for sale at lower of cost or fair value (B) |
|
|
1,407 |
|
|
|
(3 |
) |
|
|
1,410 |
|
|
|
-47000 |
% |
Fee income related
to loan level, back-to-back swaps (A) |
|
|
— |
|
|
|
1,620 |
|
|
|
(1,620 |
) |
|
|
-100 |
% |
Gain on sale of SBA
loans (A) |
|
|
2,381 |
|
|
|
1,312 |
|
|
|
1,069 |
|
|
|
81 |
% |
Corporate advisory
fee income (A) |
|
|
1,219 |
|
|
|
75 |
|
|
|
1,144 |
|
|
|
1525 |
% |
Loss on swap
termination |
|
|
(842 |
) |
|
|
— |
|
|
|
(842 |
) |
|
N/A |
|
Other income
(C) |
|
|
2,138 |
|
|
|
866 |
|
|
|
1,272 |
|
|
|
147 |
% |
Securities
gains/(losses), net |
|
|
(223 |
) |
|
|
323 |
|
|
|
(546 |
) |
|
|
-169 |
% |
Total other income |
|
|
35,498 |
|
|
|
27,143 |
|
|
|
8,355 |
|
|
|
31 |
% |
Salaries and
employee benefits (D) |
|
|
41,900 |
|
|
|
38,412 |
|
|
|
3,488 |
|
|
|
9 |
% |
Premises and
equipment |
|
|
8,187 |
|
|
|
8,079 |
|
|
|
108 |
|
|
|
1 |
% |
FDIC insurance
expense |
|
|
1,114 |
|
|
|
705 |
|
|
|
409 |
|
|
|
58 |
% |
Other expenses |
|
|
11,077 |
|
|
|
10,053 |
|
|
|
1,024 |
|
|
|
10 |
% |
Total operating expenses |
|
|
62,278 |
|
|
|
57,249 |
|
|
|
5,029 |
|
|
|
9 |
% |
Pretax income
before provision for loan losses |
|
|
38,858 |
|
|
|
33,612 |
|
|
|
5,246 |
|
|
|
16 |
% |
Provision for loan
and lease losses (E) |
|
|
1,125 |
|
|
|
24,900 |
|
|
|
(23,775 |
) |
|
|
-95 |
% |
Income before
income taxes |
|
|
37,733 |
|
|
|
8,712 |
|
|
|
29,021 |
|
|
|
333 |
% |
Income tax
expense/(benefit) (F) |
|
|
10,137 |
|
|
|
(903 |
) |
|
|
11,040 |
|
|
|
-1223 |
% |
Net income |
|
$ |
27,596 |
|
|
$ |
9,615 |
|
|
$ |
17,981 |
|
|
|
187 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
(G) |
|
$ |
101,136 |
|
|
$ |
90,861 |
|
|
$ |
10,275 |
|
|
|
11 |
% |
Per Common
Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
(basic) |
|
$ |
1.46 |
|
|
$ |
0.51 |
|
|
$ |
0.95 |
|
|
|
186 |
% |
Earnings per share
(diluted) |
|
|
1.42 |
|
|
|
0.51 |
|
|
|
0.91 |
|
|
|
178 |
% |
Weighted
average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
18,956,807 |
|
|
|
18,865,206 |
|
|
|
91,601 |
|
|
|
0 |
% |
Diluted |
|
|
19,473,150 |
|
|
|
18,991,056 |
|
|
|
482,094 |
|
|
|
3 |
% |
Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets annualized (ROAA) |
|
|
0.93 |
% |
|
|
0.35 |
% |
|
|
0.58 |
% |
|
|
166 |
% |
Return on average
equity annualized (ROAE) |
|
|
10.45 |
% |
|
|
3.80 |
% |
|
|
6.65 |
% |
|
|
175 |
% |
Return on average
tangible common equity (ROATCE) (H) |
|
|
11.39 |
% |
|
|
4.13 |
% |
|
|
7.25 |
% |
|
|
175 |
% |
Net interest margin
(tax-equivalent basis) |
|
|
2.32 |
% |
|
|
2.41 |
% |
|
|
(0.09 |
)% |
|
|
-4 |
% |
GAAP efficiency
ratio (I) |
|
|
61.58 |
% |
|
|
63.01 |
% |
|
|
(1.43 |
)% |
|
|
-2 |
% |
Operating expenses
/ average assets annualized |
|
|
2.10 |
% |
|
|
2.07 |
% |
|
|
0.03 |
% |
|
|
2 |
% |
- 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 $57 million completed in
the six months ended June 30, 2021.
- Includes income of $722,000 from the referral of PPP loans to a
third-party firm during 2021.
- The six months ended June 30, 2021 included $1.5 million of
severance expense related to corporate restructuring.
- The six months ended June 30, 2020 included a higher provision
for loan and lease losses primarily due to the environment created
by the COVID-19 pandemic.
- 2020 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 |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
|
$ |
12,684 |
|
|
$ |
8,159 |
|
|
$ |
10,629 |
|
|
$ |
8,400 |
|
|
$ |
5,608 |
Federal funds
sold |
|
|
— |
|
|
|
102 |
|
|
|
102 |
|
|
|
102 |
|
|
|
102 |
Interest-earning
deposits |
|
|
190,778 |
|
|
|
468,276 |
|
|
|
642,591 |
|
|
|
670,863 |
|
|
|
617,117 |
Total cash and cash equivalents |
|
|
203,462 |
|
|
|
476,537 |
|
|
|
653,322 |
|
|
|
679,365 |
|
|
|
622,827 |
Securities available
for sale |
|
|
823,820 |
|
|
|
875,301 |
|
|
|
622,689 |
|
|
|
596,929 |
|
|
|
539,742 |
Equity security |
|
|
14,894 |
|
|
|
14,852 |
|
|
|
15,117 |
|
|
|
15,159 |
|
|
|
15,159 |
FHLB and FRB stock,
at cost |
|
|
12,901 |
|
|
|
13,699 |
|
|
|
13,709 |
|
|
|
18,433 |
|
|
|
18,598 |
Residential
mortgage |
|
|
504,181 |
|
|
|
498,884 |
|
|
|
520,188 |
|
|
|
532,120 |
|
|
|
536,015 |
Multifamily
mortgage |
|
|
1,420,043 |
|
|
|
1,178,940 |
|
|
|
1,127,198 |
|
|
|
1,168,796 |
|
|
|
1,178,494 |
Commercial
mortgage |
|
|
702,777 |
|
|
|
697,599 |
|
|
|
694,034 |
|
|
|
722,678 |
|
|
|
761,910 |
Commercial loans
(A) |
|
|
1,880,830 |
|
|
|
1,982,570 |
|
|
|
1,975,337 |
|
|
|
1,930,984 |
|
|
|
2,316,125 |
Consumer loans |
|
|
31,889 |
|
|
|
36,519 |
|
|
|
37,016 |
|
|
|
51,859 |
|
|
|
53,111 |
Home equity lines of
credit |
|
|
44,062 |
|
|
|
45,624 |
|
|
|
50,547 |
|
|
|
52,194 |
|
|
|
54,006 |
Other loans |
|
|
204 |
|
|
|
199 |
|
|
|
225 |
|
|
|
260 |
|
|
|
272 |
Total loans |
|
|
4,583,986 |
|
|
|
4,440,335 |
|
|
|
4,404,545 |
|
|
|
4,458,891 |
|
|
|
4,899,933 |
Less: Allowances for loan and lease losses |
|
|
63,505 |
|
|
|
67,536 |
|
|
|
67,309 |
|
|
|
66,145 |
|
|
|
66,065 |
Net loans |
|
|
4,520,481 |
|
|
|
4,372,799 |
|
|
|
4,337,236 |
|
|
|
4,392,746 |
|
|
|
4,833,868 |
Premises and
equipment |
|
|
23,261 |
|
|
|
23,260 |
|
|
|
21,609 |
|
|
|
21,668 |
|
|
|
21,449 |
Other real estate
owned |
|
|
— |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
Accrued interest
receivable |
|
|
23,117 |
|
|
|
23,916 |
|
|
|
22,495 |
|
|
|
22,192 |
|
|
|
15,956 |
Bank owned life
insurance |
|
|
46,605 |
|
|
|
46,448 |
|
|
|
46,809 |
|
|
|
46,645 |
|
|
|
46,479 |
Goodwill and other
intangible assets |
|
|
43,156 |
|
|
|
43,524 |
|
|
|
43,891 |
|
|
|
39,622 |
|
|
|
39,943 |
Finance lease
right-of-use assets |
|
|
3,956 |
|
|
|
4,143 |
|
|
|
4,330 |
|
|
|
4,517 |
|
|
|
4,704 |
Operating lease
right-of-use assets |
|
|
9,569 |
|
|
|
10,186 |
|
|
|
9,421 |
|
|
|
10,011 |
|
|
|
10,810 |
Other assets
(B) |
|
|
66,466 |
|
|
|
64,912 |
|
|
|
99,764 |
|
|
|
110,770 |
|
|
|
111,630 |
TOTAL ASSETS |
|
$ |
5,791,688 |
|
|
$ |
5,969,627 |
|
|
$ |
5,890,442 |
|
|
$ |
5,958,107 |
|
|
$ |
6,281,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
$ |
959,494 |
|
|
$ |
908,922 |
|
|
$ |
833,500 |
|
|
$ |
838,307 |
|
|
$ |
911,989 |
Interest-bearing demand deposits |
|
|
1,978,497 |
|
|
|
1,987,567 |
|
|
|
1,849,254 |
|
|
|
1,858,529 |
|
|
|
1,804,102 |
Savings |
|
|
147,227 |
|
|
|
141,743 |
|
|
|
130,731 |
|
|
|
127,737 |
|
|
|
123,140 |
Money market accounts |
|
|
1,213,992 |
|
|
|
1,256,605 |
|
|
|
1,298,885 |
|
|
|
1,251,349 |
|
|
|
1,183,603 |
Certificates of deposit – Retail |
|
|
446,143 |
|
|
|
474,668 |
|
|
|
530,222 |
|
|
|
586,801 |
|
|
|
629,941 |
Certificates of deposit – Listing Service |
|
|
31,631 |
|
|
|
31,631 |
|
|
|
32,128 |
|
|
|
32,677 |
|
|
|
35,327 |
Subtotal “customer”
deposits |
|
|
4,776,984 |
|
|
|
4,801,136 |
|
|
|
4,674,720 |
|
|
|
4,695,400 |
|
|
|
4,688,102 |
IB Demand – Brokered |
|
|
85,000 |
|
|
|
110,000 |
|
|
|
110,000 |
|
|
|
130,000 |
|
|
|
130,000 |
Certificates of deposit – Brokered |
|
|
33,791 |
|
|
|
33,777 |
|
|
|
33,764 |
|
|
|
33,750 |
|
|
|
33,736 |
Total deposits |
|
|
4,895,775 |
|
|
|
4,944,913 |
|
|
|
4,818,484 |
|
|
|
4,859,150 |
|
|
|
4,851,838 |
Short-term
borrowings |
|
|
— |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
15,000 |
FHLB advances
(C) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
105,000 |
|
|
|
105,000 |
Paycheck Protection
Program Liquidity Facility (D) |
|
|
83,586 |
|
|
|
168,180 |
|
|
|
177,086 |
|
|
|
183,790 |
|
|
|
535,837.00 |
Finance lease
liability |
|
|
6,299 |
|
|
|
6,528 |
|
|
|
6,753 |
|
|
|
6,976 |
|
|
|
7,196 |
Operating lease
liability |
|
|
9,902 |
|
|
|
10,509 |
|
|
|
9,737 |
|
|
|
10,318 |
|
|
|
11,116 |
Subordinated debt,
net (E) |
|
|
132,557 |
|
|
|
181,837 |
|
|
|
181,794 |
|
|
|
83,585 |
|
|
|
83,529 |
Other liabilities
(B) |
|
|
125,110 |
|
|
|
120,219 |
|
|
|
154,466 |
|
|
|
156,472 |
|
|
|
163,719 |
Due to brokers |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
15,088 |
|
|
|
— |
TOTAL LIABILITIES |
|
|
5,253,229 |
|
|
|
5,447,186 |
|
|
|
5,363,320 |
|
|
|
5,435,379 |
|
|
|
5,773,235 |
Shareholders’
equity |
|
|
538,459 |
|
|
|
522,441 |
|
|
|
527,122 |
|
|
|
522,728 |
|
|
|
507,980 |
TOTAL LIABILITIES AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
$ |
5,791,688 |
|
|
$ |
5,969,627 |
|
|
$ |
5,890,442 |
|
|
$ |
5,958,107 |
|
|
$ |
6,281,215 |
Assets under
management and / or administration at
Peapack-Gladstone Bank’s Private
Wealth Management Division (market
value, not included above-dollars in billions) |
|
$ |
9.8 |
|
|
$ |
9.4 |
|
|
$ |
8.8 |
|
|
$ |
7.6 |
|
|
$ |
7.2 |
- Includes PPP loans of $84 million at June 30, 2021, $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. The Company
redeemed $50 million of subordinated debt on June 30, 2021.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED BALANCE SHEET
DATA(Dollars in
Thousands)(Unaudited)
|
|
As of |
|
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
Asset
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due over
90 days and still accruing |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Nonaccrual loans
(A) |
|
|
5,962 |
|
|
|
11,767 |
|
|
|
11,410 |
|
|
|
8,611 |
|
|
|
26,697 |
|
Other real estate
owned |
|
|
— |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
Total nonperforming assets |
|
$ |
5,962 |
|
|
$ |
11,817 |
|
|
$ |
11,460 |
|
|
$ |
8,661 |
|
|
$ |
26,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
to total loans |
|
|
0.13 |
% |
|
|
0.27 |
% |
|
|
0.26 |
% |
|
|
0.19 |
% |
|
|
0.54 |
% |
Nonperforming assets
to total assets |
|
|
0.10 |
% |
|
|
0.20 |
% |
|
|
0.19 |
% |
|
|
0.15 |
% |
|
|
0.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing TDRs
(B)(C) |
|
$ |
190 |
|
|
$ |
197 |
|
|
$ |
201 |
|
|
$ |
2,278 |
|
|
$ |
2,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 30
through 89 days and still accruing (D)(E) |
|
$ |
1,678 |
|
|
$ |
1,622 |
|
|
$ |
5,053 |
|
|
$ |
6,609 |
|
|
$ |
3,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans subject to
special mention |
|
$ |
148,601 |
|
|
$ |
166,013 |
|
|
$ |
162,103 |
|
|
$ |
129,700 |
|
|
$ |
27,922 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Classified
loans |
|
$ |
11,178 |
|
|
$ |
25,714 |
|
|
$ |
37,771 |
|
|
$ |
41,263 |
|
|
$ |
63,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans |
|
$ |
6,498 |
|
|
$ |
11,964 |
|
|
$ |
16,204 |
|
|
$ |
15,514 |
|
|
$ |
33,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
and lease losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of period |
|
$ |
67,536 |
|
|
$ |
67,309 |
|
|
$ |
66,145 |
|
|
$ |
66,065 |
|
|
$ |
63,783 |
|
Provision for loan and lease losses |
|
|
900 |
|
|
|
225 |
|
|
|
2,350 |
|
|
|
5,150 |
|
|
|
4,900 |
|
(Charge-offs)/recoveries, net |
|
|
(4,931 |
) |
|
|
2 |
|
|
|
(1,186 |
) |
|
|
(5,070 |
) |
|
|
(2,618 |
) |
End of period |
|
$ |
63,505 |
|
|
$ |
67,536 |
|
|
$ |
67,309 |
|
|
$ |
66,145 |
|
|
$ |
66,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLL to
nonperforming loans |
|
|
1065.16 |
% |
|
|
573.94 |
% |
|
|
589.91 |
% |
|
|
768.15 |
% |
|
|
247.46 |
% |
ALLL to total
loans |
|
|
1.39 |
% |
|
|
1.52 |
% |
|
|
1.53 |
% |
|
|
1.48 |
% |
|
|
1.35 |
% |
General ALLL to
total loans (F) |
|
|
1.38 |
% |
|
|
1.45 |
% |
|
|
1.47 |
% |
|
|
1.48 |
% |
|
|
1.26 |
% |
- Excludes one commercial loan held for sale of $5.6 million at
both June 30, 2021 and 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 excludes $3.9 million at June 30, 2021, $3.9 million at
March 31, 2021, $4.0 million at December 31, 2020, $5.2 million at
September 30, 2020 and $23.2 million at June 30, 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)
|
|
June 30, |
|
|
December 31, |
|
|
June 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
Capital
Adequacy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to total
assets (A)(J) |
|
|
|
|
9.30 |
% |
|
|
|
|
8.95 |
% |
|
|
|
|
8.09 |
% |
Tangible Equity to
tangible assets (B) |
|
|
|
|
8.62 |
% |
|
|
|
|
8.27 |
% |
|
|
|
|
7.50 |
% |
Tangible Equity to
tangible assets excluding PPP loans (C) |
|
|
|
|
8.74 |
% |
|
|
|
|
8.55 |
% |
|
|
|
|
8.22 |
% |
Book value per share
(D) |
|
|
|
$ |
28.60 |
|
|
|
|
$ |
27.78 |
|
|
|
|
$ |
26.87 |
|
Tangible Book Value
per share (E) |
|
|
|
$ |
26.30 |
|
|
|
|
$ |
25.47 |
|
|
|
|
$ |
24.76 |
|
|
|
June 30, |
|
|
December 31, |
|
|
June 30, |
|
|
2021 |
|
|
2020 |
|
|
2020 |
Regulatory
Capital – Holding
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier I
leverage |
|
$ |
499,344 |
|
|
8.67% |
|
|
$ |
483,535 |
|
|
8.53% |
|
|
$ |
468,898 |
|
|
8.57% |
Tier I capital to
risk-weighted assets |
|
|
499,344 |
|
|
|
11.45 |
|
|
|
483,535 |
|
|
11.93 |
|
|
|
468,898 |
|
|
11.35 |
Common equity tier
I capital ratio to risk-weighted assets |
|
|
499,315 |
|
|
|
11.45 |
|
|
|
483,500 |
|
|
11.93 |
|
|
|
468,863 |
|
|
11.35 |
Tier I & II
capital to risk-weighted assets |
|
|
686,543 |
|
|
|
15.74 |
|
|
|
716,210 |
|
|
17.67 |
|
|
|
604,258 |
|
|
14.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regulatory
Capital – Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier I leverage
(F) |
|
$ |
583,208 |
|
|
10.13% |
|
|
$ |
549,575 |
|
|
9.71% |
|
|
$ |
534,794 |
|
|
9.79% |
Tier I capital to
risk-weighted assets (G) |
|
|
583,208 |
|
|
13.37 |
|
|
|
549,575 |
|
|
13.55 |
|
|
|
534,794 |
|
|
12.96 |
Common equity tier
I capital ratio to risk-weighted assets (H) |
|
|
583,179 |
|
|
13.37 |
|
|
|
549,540 |
|
|
13.55 |
|
|
|
534,759 |
|
|
12.95 |
Tier I & II
capital to risk-weighted assets (I) |
|
|
637,858 |
|
|
14.62 |
|
|
|
600,478 |
|
|
14.81 |
|
|
|
586,574 |
|
|
14.21 |
- 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 share 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% ($288
million)
- Regulatory well capitalized standard = 8.00% ($349
million)
- Regulatory well capitalized standard = 6.50% ($284
million)
- Regulatory well capitalized standard = 10.00% ($436
million)
- PPP loans with a balance of $84 million at June 30, 2021, $196
million at December 31, 2020 and $547 million at June 30, 2020
increased total assets.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONLOANS CLOSED(Dollars
in Thousands)(Unaudited)
|
|
For the Quarters Ended |
|
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
Residential loans
retained |
|
$ |
37,083 |
|
|
$ |
15,814 |
|
|
$ |
22,316 |
|
|
$ |
32,599 |
|
|
$ |
18,627 |
|
Residential loans
sold |
|
|
25,432 |
|
|
|
45,873 |
|
|
|
64,630 |
|
|
|
54,521 |
|
|
|
37,061 |
|
Total residential loans |
|
|
62,515 |
|
|
|
61,687 |
|
|
|
86,946 |
|
|
|
87,120 |
|
|
|
55,688 |
|
Commercial real
estate |
|
|
12,243 |
|
|
|
38,363 |
|
|
|
— |
|
|
|
1,613 |
|
|
|
748 |
|
Multifamily |
|
|
255,820 |
|
|
|
85,009 |
|
|
|
1,184 |
|
|
|
1,500 |
|
|
|
11,960 |
|
Commercial (C&I)
loans (A) (B) |
|
|
141,285 |
|
|
|
129,141 |
|
|
|
218,235 |
|
|
|
118,048 |
|
|
|
99,294 |
|
SBA (C) |
|
|
15,976 |
|
|
|
58,730 |
|
|
|
8,355 |
|
|
|
4,962 |
|
|
|
595,651 |
|
Wealth lines of
credit (A) |
|
|
3,200 |
|
|
|
2,475 |
|
|
|
3,925 |
|
|
|
2,000 |
|
|
|
500 |
|
Total commercial loans |
|
|
428,524 |
|
|
|
313,718 |
|
|
|
231,699 |
|
|
|
128,123 |
|
|
|
708,153 |
|
Installment
loans |
|
|
25 |
|
|
|
63 |
|
|
|
690 |
|
|
|
253 |
|
|
|
950 |
|
Home equity lines of
credit (A) |
|
|
4,140 |
|
|
|
1,899 |
|
|
|
2,330 |
|
|
|
4,759 |
|
|
|
4,280 |
|
Total loans closed |
|
$ |
495,204 |
|
|
$ |
377,367 |
|
|
$ |
321,665 |
|
|
$ |
220,255 |
|
|
$ |
769,071 |
|
|
|
For the Six Months Ended |
|
|
June 30, |
|
|
June 30, |
|
|
2021 |
|
|
2020 |
Residential loans
retained |
|
$ |
52,897 |
|
|
$ |
33,458 |
Residential loans
sold |
|
|
71,305 |
|
|
|
56,452 |
Total residential loans |
|
|
124,202 |
|
|
|
89,910 |
Commercial real
estate |
|
|
50,606 |
|
|
|
9,606 |
Multifamily |
|
|
340,829 |
|
|
|
73,958 |
Commercial (C&I)
loans (A) (B) |
|
|
270,426 |
|
|
|
142,202 |
SBA (C) |
|
|
74,706 |
|
|
|
609,481 |
Wealth lines of
credit (A) |
|
|
5,675 |
|
|
|
3,750 |
Total commercial loans |
|
|
742,242 |
|
|
|
838,997 |
Installment
loans |
|
|
88 |
|
|
|
1,206 |
Home equity lines of
credit (A) |
|
|
6,039 |
|
|
|
7,912 |
Total loans closed |
|
$ |
872,571 |
|
|
$ |
938,025 |
- Includes loans and lines of credit that closed in the period
but not necessarily funded.
- Includes equipment finance.
- Includes PPP loans of $9.2 million for the quarter ended June
30, 2021, $47 million for the quarter ended March 31, 2021 and $596
million for the quarter ended June 30, 2020.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONAVERAGE BALANCE
SHEETUNAUDITEDTHREE MONTHS ENDED(Tax-Equivalent Basis,
Dollars in Thousands)
|
|
June 30,
2021 |
|
|
June 30,
2020 |
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
884,374 |
|
|
$ |
3,020 |
|
|
|
1.37 |
% |
|
$ |
437,288 |
|
|
$ |
2,108 |
|
|
|
1.93 |
% |
Tax-exempt (A) (B) |
|
|
6,891 |
|
|
|
81 |
|
|
|
4.70 |
|
|
|
10,137 |
|
|
|
129 |
|
|
|
5.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
498,594 |
|
|
|
3,826 |
|
|
|
3.07 |
|
|
|
530,087 |
|
|
|
4,497 |
|
|
|
3.39 |
|
Commercial mortgages |
|
|
1,941,330 |
|
|
|
15,056 |
|
|
|
3.10 |
|
|
|
2,083,310 |
|
|
|
16,147 |
|
|
|
3.10 |
|
Commercial |
|
|
1,942,802 |
|
|
|
16,984 |
|
|
|
3.50 |
|
|
|
2,038,530 |
|
|
|
18,204 |
|
|
|
3.57 |
|
Commercial construction |
|
|
20,952 |
|
|
|
180 |
|
|
|
3.44 |
|
|
|
3,296 |
|
|
|
44 |
|
|
|
5.34 |
|
Installment |
|
|
34,319 |
|
|
|
255 |
|
|
|
2.97 |
|
|
|
52,859 |
|
|
|
371 |
|
|
|
2.81 |
|
Home equity |
|
|
45,042 |
|
|
|
377 |
|
|
|
3.35 |
|
|
|
54,869 |
|
|
|
453 |
|
|
|
3.30 |
|
Other |
|
|
219 |
|
|
|
5 |
|
|
|
9.13 |
|
|
|
318 |
|
|
|
7 |
|
|
|
8.81 |
|
Total loans |
|
|
4,483,258 |
|
|
|
36,683 |
|
|
|
3.27 |
|
|
|
4,763,269 |
|
|
|
39,723 |
|
|
|
3.34 |
|
Federal funds sold |
|
|
91 |
|
|
|
— |
|
|
|
0.06 |
|
|
|
102 |
|
|
|
— |
|
|
|
0.25 |
|
Interest-earning deposits |
|
|
428,464 |
|
|
|
97 |
|
|
|
0.09 |
|
|
|
497,764 |
|
|
|
109 |
|
|
|
0.09 |
|
Total interest-earning assets |
|
|
5,803,078 |
|
|
|
39,881 |
|
|
|
2.75 |
% |
|
|
5,708,560 |
|
|
|
42,069 |
|
|
|
2.95 |
% |
Noninterest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
10,360 |
|
|
|
|
|
|
|
|
|
|
|
5,437 |
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses |
|
|
(67,593 |
) |
|
|
|
|
|
|
|
|
|
|
(64,109 |
) |
|
|
|
|
|
|
|
|
Premises and equipment |
|
|
23,307 |
|
|
|
|
|
|
|
|
|
|
|
21,462 |
|
|
|
|
|
|
|
|
|
Other assets |
|
|
182,421 |
|
|
|
|
|
|
|
|
|
|
|
234,357 |
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
148,495 |
|
|
|
|
|
|
|
|
|
|
|
197,147 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,951,573 |
|
|
|
|
|
|
|
|
|
|
$ |
5,905,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
1,980,688 |
|
|
$ |
944 |
|
|
|
0.19 |
% |
|
$ |
1,748,753 |
|
|
$ |
1,642 |
|
|
|
0.38 |
% |
Money markets |
|
|
1,235,464 |
|
|
|
727 |
|
|
|
0.24 |
|
|
|
1,207,816 |
|
|
|
1,473 |
|
|
|
0.49 |
|
Savings |
|
|
144,044 |
|
|
|
18 |
|
|
|
0.05 |
|
|
|
118,878 |
|
|
|
16 |
|
|
|
0.05 |
|
Certificates of deposit – retail |
|
|
488,148 |
|
|
|
1,027 |
|
|
|
0.84 |
|
|
|
676,498 |
|
|
|
3,147 |
|
|
|
1.86 |
|
Subtotal interest-bearing deposits |
|
|
3,848,344 |
|
|
|
2,716 |
|
|
|
0.28 |
|
|
|
3,751,945 |
|
|
|
6,278 |
|
|
|
0.67 |
|
Interest-bearing demand – brokered |
|
|
105,604 |
|
|
|
456 |
|
|
|
1.73 |
|
|
|
150,330 |
|
|
|
700 |
|
|
|
1.86 |
|
Certificates of deposit – brokered |
|
|
33,783 |
|
|
|
264 |
|
|
|
3.13 |
|
|
|
33,729 |
|
|
|
264 |
|
|
|
3.13 |
|
Total interest-bearing deposits |
|
|
3,987,731 |
|
|
|
3,436 |
|
|
|
0.34 |
|
|
|
3,936,004 |
|
|
|
7,242 |
|
|
|
0.74 |
|
Borrowings |
|
|
166,343 |
|
|
|
182 |
|
|
|
0.44 |
|
|
|
330,514 |
|
|
|
1,127 |
|
|
|
1.36 |
|
Capital lease obligation |
|
|
6,380 |
|
|
|
76 |
|
|
|
4.76 |
|
|
|
7,270 |
|
|
|
87 |
|
|
|
4.79 |
|
Subordinated debt |
|
|
181,317 |
|
|
|
2,147 |
|
|
|
4.74 |
|
|
|
83,496 |
|
|
|
1,222 |
|
|
|
5.85 |
|
Total interest-bearing liabilities |
|
|
4,341,771 |
|
|
|
5,841 |
|
|
|
0.54 |
% |
|
|
4,357,284 |
|
|
|
9,678 |
|
|
|
0.89 |
% |
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
948,851 |
|
|
|
|
|
|
|
|
|
|
|
873,926 |
|
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
129,980 |
|
|
|
|
|
|
|
|
|
|
|
171,814 |
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,078,831 |
|
|
|
|
|
|
|
|
|
|
|
1,045,740 |
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
530,971 |
|
|
|
|
|
|
|
|
|
|
|
502,683 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
5,951,573 |
|
|
|
|
|
|
|
|
|
|
$ |
5,905,707 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
34,040 |
|
|
|
|
|
|
|
|
|
|
$ |
32,391 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
|
|
2.21 |
% |
|
|
|
|
|
|
|
|
|
|
2.06 |
% |
Net interest margin (D) |
|
|
|
|
|
|
|
|
|
|
2.38 |
% |
|
|
|
|
|
|
|
|
|
|
2.27 |
% |
- 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)
|
|
June 30,
2021 |
|
|
March 31, 2021 |
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
884,374 |
|
|
$ |
3,020 |
|
|
|
1.37 |
% |
|
$ |
761,187 |
|
|
$ |
2,629 |
|
|
|
1.38 |
% |
Tax-exempt (A) (B) |
|
|
6,891 |
|
|
|
81 |
|
|
|
4.70 |
|
|
|
7,980 |
|
|
|
98 |
|
|
|
4.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
498,594 |
|
|
|
3,826 |
|
|
|
3.07 |
|
|
|
501,590 |
|
|
|
3,954 |
|
|
|
3.15 |
|
Commercial mortgages |
|
|
1,941,330 |
|
|
|
15,056 |
|
|
|
3.10 |
|
|
|
1,840,363 |
|
|
|
14,420 |
|
|
|
3.13 |
|
Commercial |
|
|
1,942,802 |
|
|
|
16,984 |
|
|
|
3.50 |
|
|
|
1,932,692 |
|
|
|
16,455 |
|
|
|
3.41 |
|
Commercial construction |
|
|
20,952 |
|
|
|
180 |
|
|
|
3.44 |
|
|
|
15,606 |
|
|
|
139 |
|
|
|
3.56 |
|
Installment |
|
|
34,319 |
|
|
|
255 |
|
|
|
2.97 |
|
|
|
37,695 |
|
|
|
276 |
|
|
|
2.93 |
|
Home equity |
|
|
45,042 |
|
|
|
377 |
|
|
|
3.35 |
|
|
|
48,853 |
|
|
|
399 |
|
|
|
3.27 |
|
Other |
|
|
219 |
|
|
|
5 |
|
|
|
9.13 |
|
|
|
246 |
|
|
|
5 |
|
|
|
8.13 |
|
Total loans |
|
|
4,483,258 |
|
|
|
36,683 |
|
|
|
3.27 |
|
|
|
4,377,045 |
|
|
|
35,648 |
|
|
|
3.26 |
|
Federal funds sold |
|
|
91 |
|
|
|
— |
|
|
|
0.06 |
|
|
|
102 |
|
|
|
— |
|
|
|
0.25 |
|
Interest-earning deposits |
|
|
428,464 |
|
|
|
97 |
|
|
|
0.09 |
|
|
|
555,331 |
|
|
|
128 |
|
|
|
0.09 |
|
Total interest-earning assets |
|
|
5,803,078 |
|
|
|
39,881 |
|
|
|
2.75 |
% |
|
|
5,701,645 |
|
|
|
38,503 |
|
|
|
2.70 |
% |
Noninterest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
10,360 |
|
|
|
|
|
|
|
|
|
|
|
11,129 |
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses |
|
|
(67,593 |
) |
|
|
|
|
|
|
|
|
|
|
(71,160 |
) |
|
|
|
|
|
|
|
|
Premises and equipment |
|
|
23,307 |
|
|
|
|
|
|
|
|
|
|
|
22,634 |
|
|
|
|
|
|
|
|
|
Other assets |
|
|
182,421 |
|
|
|
|
|
|
|
|
|
|
|
228,134 |
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
148,495 |
|
|
|
|
|
|
|
|
|
|
|
190,737 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,951,573 |
|
|
|
|
|
|
|
|
|
|
$ |
5,892,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
1,980,688 |
|
|
$ |
944 |
|
|
|
0.19 |
% |
|
$ |
1,908,380 |
|
|
$ |
978 |
|
|
|
0.20 |
% |
Money markets |
|
|
1,235,464 |
|
|
|
727 |
|
|
|
0.24 |
|
|
|
1,259,597 |
|
|
|
794 |
|
|
|
0.25 |
|
Savings |
|
|
144,044 |
|
|
|
18 |
|
|
|
0.05 |
|
|
|
135,202 |
|
|
|
17 |
|
|
|
0.05 |
|
Certificates of deposit – retail |
|
|
488,148 |
|
|
|
1,027 |
|
|
|
0.84 |
|
|
|
533,488 |
|
|
|
1,470 |
|
|
|
1.10 |
|
Subtotal interest-bearing deposits |
|
|
3,848,344 |
|
|
|
2,716 |
|
|
|
0.28 |
|
|
|
3,836,667 |
|
|
|
3,259 |
|
|
|
0.34 |
|
Interest-bearing demand – brokered |
|
|
105,604 |
|
|
|
456 |
|
|
|
1.73 |
|
|
|
110,000 |
|
|
|
493 |
|
|
|
1.79 |
|
Certificates of deposit – brokered |
|
|
33,783 |
|
|
|
264 |
|
|
|
3.13 |
|
|
|
33,769 |
|
|
|
261 |
|
|
|
3.09 |
|
Total interest-bearing deposits |
|
|
3,987,731 |
|
|
|
3,436 |
|
|
|
0.34 |
|
|
|
3,980,436 |
|
|
|
4,013 |
|
|
|
0.40 |
|
Borrowings |
|
|
166,343 |
|
|
|
182 |
|
|
|
0.44 |
|
|
|
186,006 |
|
|
|
209 |
|
|
|
0.45 |
|
Capital lease obligation |
|
|
6,380 |
|
|
|
76 |
|
|
|
4.76 |
|
|
|
6,608 |
|
|
|
79 |
|
|
|
4.78 |
|
Subordinated debt |
|
|
181,317 |
|
|
|
2,147 |
|
|
|
4.74 |
|
|
|
181,795 |
|
|
|
2,145 |
|
|
|
4.72 |
|
Total interest-bearing liabilities |
|
|
4,341,771 |
|
|
|
5,841 |
|
|
|
0.54 |
% |
|
|
4,354,845 |
|
|
|
6,446 |
|
|
|
0.59 |
% |
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
948,851 |
|
|
|
|
|
|
|
|
|
|
|
848,325 |
|
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
129,980 |
|
|
|
|
|
|
|
|
|
|
|
163,569 |
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,078,831 |
|
|
|
|
|
|
|
|
|
|
|
1,011,894 |
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
530,971 |
|
|
|
|
|
|
|
|
|
|
|
525,643 |
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders’ equity |
|
$ |
5,951,573 |
|
|
|
|
|
|
|
|
|
|
$ |
5,892,382 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
34,040 |
|
|
|
|
|
|
|
|
|
|
$ |
32,057 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
|
|
2.21 |
% |
|
|
|
|
|
|
|
|
|
|
2.11 |
% |
Net interest margin (D) |
|
|
|
|
|
|
|
|
|
|
2.38 |
% |
|
|
|
|
|
|
|
|
|
|
2.28 |
% |
- 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
SHEETUNAUDITEDSIX MONTHS ENDED(Tax-Equivalent Basis,
Dollars in Thousands)
|
|
June 30,
2021 |
|
|
June 30, 2020 |
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
823,120 |
|
|
$ |
5,649 |
|
|
|
1.37 |
% |
|
$ |
424,547 |
|
|
$ |
4,567 |
|
|
|
2.15 |
% |
Tax-exempt (A) (B) |
|
|
7,433 |
|
|
|
179 |
|
|
|
4.82 |
|
|
|
10,335 |
|
|
|
260 |
|
|
|
5.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
500,084 |
|
|
|
7,780 |
|
|
|
3.11 |
|
|
|
532,601 |
|
|
|
9,073 |
|
|
|
3.41 |
|
Commercial mortgages |
|
|
1,891,125 |
|
|
|
29,476 |
|
|
|
3.12 |
|
|
|
2,019,559 |
|
|
|
34,629 |
|
|
|
3.43 |
|
Commercial |
|
|
1,937,776 |
|
|
|
33,439 |
|
|
|
3.45 |
|
|
|
1,898,334 |
|
|
|
36,798 |
|
|
|
3.88 |
|
Commercial construction |
|
|
18,294 |
|
|
|
319 |
|
|
|
3.49 |
|
|
|
4,462 |
|
|
|
132 |
|
|
|
6 |
|
Installment |
|
|
35,997 |
|
|
|
531 |
|
|
|
2.95 |
|
|
|
53,421 |
|
|
|
835 |
|
|
|
3.13 |
|
Home equity |
|
|
46,937 |
|
|
|
776 |
|
|
|
3.31 |
|
|
|
55,261 |
|
|
|
1,067 |
|
|
|
3.86 |
|
Other |
|
|
233 |
|
|
|
10 |
|
|
|
8.58 |
|
|
|
341 |
|
|
|
16 |
|
|
|
9.38 |
|
Total loans |
|
|
4,430,446 |
|
|
|
72,331 |
|
|
|
3.27 |
|
|
|
4,563,979 |
|
|
|
82,550 |
|
|
|
3.62 |
|
Federal funds sold |
|
|
96 |
|
|
|
— |
|
|
|
0.11 |
|
|
|
102 |
|
|
|
— |
|
|
|
0.25 |
|
Interest-earning deposits |
|
|
491,547 |
|
|
|
225 |
|
|
|
0.09 |
|
|
|
374,665 |
|
|
|
661 |
|
|
|
0.35 |
|
Total interest-earning assets |
|
|
5,752,642 |
|
|
|
78,384 |
|
|
|
2.73 |
% |
|
|
5,373,628 |
|
|
|
88,038 |
|
|
|
3.28 |
% |
Noninterest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
10,743 |
|
|
|
|
|
|
|
|
|
|
|
5,477 |
|
|
|
|
|
|
|
|
|
Allowance for loan and lease losses |
|
|
(69,367 |
) |
|
|
|
|
|
|
|
|
|
|
(54,238 |
) |
|
|
|
|
|
|
|
|
Premises and equipment |
|
|
22,972 |
|
|
|
|
|
|
|
|
|
|
|
21,304 |
|
|
|
|
|
|
|
|
|
Other assets |
|
|
204,390 |
|
|
|
|
|
|
|
|
|
|
|
197,904 |
|
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
168,738 |
|
|
|
|
|
|
|
|
|
|
|
170,447 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,921,380 |
|
|
|
|
|
|
|
|
|
|
$ |
5,544,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
1,944,734 |
|
|
$ |
1,922 |
|
|
|
0.20 |
% |
|
$ |
1,644,776 |
|
|
$ |
5,089 |
|
|
|
0.62 |
% |
Money markets |
|
|
1,247,464 |
|
|
|
1,521 |
|
|
|
0.24 |
|
|
|
1,199,932 |
|
|
|
4,454 |
|
|
|
0.74 |
|
Savings |
|
|
139,648 |
|
|
|
35 |
|
|
|
0.05 |
|
|
|
114,892 |
|
|
|
31 |
|
|
|
0.05 |
|
Certificates of deposit – retail |
|
|
510,693 |
|
|
|
2,497 |
|
|
|
0.98 |
|
|
|
687,258 |
|
|
|
6,841 |
|
|
|
1.99 |
|
Subtotal interest-bearing deposits |
|
|
3,842,539 |
|
|
|
5,975 |
|
|
|
0.31 |
|
|
|
3,646,858 |
|
|
|
16,415 |
|
|
|
0.90 |
|
Interest-bearing demand – brokered |
|
|
107,790 |
|
|
|
949 |
|
|
|
1.76 |
|
|
|
165,165 |
|
|
|
1,623 |
|
|
|
1.97 |
|
Certificates of deposit – brokered |
|
|
33,776 |
|
|
|
525 |
|
|
|
3.11 |
|
|
|
33,722 |
|
|
|
527 |
|
|
|
3.13 |
|
Total interest-bearing deposits |
|
|
3,984,105 |
|
|
|
7,449 |
|
|
|
0.37 |
|
|
|
3,845,745 |
|
|
|
18,565 |
|
|
|
0.97 |
|
Borrowings |
|
|
176,120 |
|
|
|
391 |
|
|
|
0.44 |
|
|
|
256,956 |
|
|
|
2,139 |
|
|
|
1.66 |
|
Capital lease obligation |
|
|
6,493 |
|
|
|
155 |
|
|
|
4.77 |
|
|
|
7,373 |
|
|
|
177 |
|
|
|
4.80 |
|
Subordinated debt |
|
|
181,555 |
|
|
|
4,292 |
|
|
|
4.73 |
|
|
|
83,467 |
|
|
|
2,445 |
|
|
|
5.86 |
|
Total interest-bearing liabilities |
|
|
4,348,273 |
|
|
|
12,287 |
|
|
|
0.57 |
% |
|
|
4,193,541 |
|
|
|
23,326 |
|
|
|
1.11 |
% |
Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
898,866 |
|
|
|
|
|
|
|
|
|
|
|
708,242 |
|
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
145,920 |
|
|
|
|
|
|
|
|
|
|
|
136,738 |
|
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,044,786 |
|
|
|
|
|
|
|
|
|
|
|
844,980 |
|
|
|
|
|
|
|
|
|
Shareholders’
equity |
|
|
528,322 |
|
|
|
|
|
|
|
|
|
|
|
505,554 |
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders’ equity |
|
$ |
5,921,381 |
|
|
|
|
|
|
|
|
|
|
$ |
5,544,075 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
66,097 |
|
|
|
|
|
|
|
|
|
|
$ |
64,712 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
|
|
2.16 |
% |
|
|
|
|
|
|
|
|
|
|
2.17 |
% |
Net interest margin (D) |
|
|
|
|
|
|
|
|
|
|
2.32 |
% |
|
|
|
|
|
|
|
|
|
|
2.41 |
% |
- 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 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 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.
(Dollars in thousands, except share data)
|
|
Three Months Ended |
|
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
Tangible
Book Value Per Share |
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
Shareholders’
equity |
|
$ |
538,459 |
|
|
$ |
522,441 |
|
|
$ |
527,122 |
|
|
$ |
522,728 |
|
|
$ |
507,980 |
|
Less:
Intangible assets, net |
|
|
43,156 |
|
|
|
43,524 |
|
|
|
43,891 |
|
|
|
39,622 |
|
|
|
39,943 |
|
Tangible equity |
|
|
495,303 |
|
|
|
478,917 |
|
|
|
483,231 |
|
|
|
483,106 |
|
|
|
468,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period end shares
outstanding |
|
|
18,829,877 |
|
|
|
19,034,870 |
|
|
|
18,974,703 |
|
|
|
18,924,953 |
|
|
|
18,905,135 |
|
Tangible book value
per share |
|
$ |
26.30 |
|
|
$ |
25.16 |
|
|
$ |
25.47 |
|
|
$ |
25.53 |
|
|
$ |
24.76 |
|
Book value per
share |
|
|
28.60 |
|
|
|
27.45 |
|
|
|
27.78 |
|
|
|
27.62 |
|
|
|
26.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible
Equity to Tangible Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,791,688 |
|
|
$ |
5,969,627 |
|
|
$ |
5,890,442 |
|
|
$ |
5,958,107 |
|
|
$ |
6,281,215 |
|
Less: Intangible
assets, net |
|
|
43,156 |
|
|
|
43,524 |
|
|
|
43,891 |
|
|
|
39,622 |
|
|
|
39,943 |
|
Tangible assets |
|
|
5,748,532 |
|
|
|
5,926,103 |
|
|
|
5,846,551 |
|
|
|
5,918,485 |
|
|
|
6,241,272 |
|
Less: PPP Loans |
|
|
83,766 |
|
|
|
232,721 |
|
|
|
195,574 |
|
|
|
201,991 |
|
|
|
547,004 |
|
Tangible Assets excluding PPP Loans |
|
|
5,664,766 |
|
|
|
5,693,382 |
|
|
|
5,650,977 |
|
|
|
5,716,494 |
|
|
|
5,694,268 |
|
Tangible equity to
tangible assets |
|
|
8.62 |
% |
|
|
8.08 |
% |
|
|
8.27 |
% |
|
|
8.16 |
% |
|
|
7.50 |
% |
Tangible equity to
tangible assets excluding PPP loans |
|
|
8.74 |
% |
|
|
8.41 |
% |
|
|
8.55 |
% |
|
|
8.45 |
% |
|
|
8.22 |
% |
Equity to assets
(A) |
|
|
9.30 |
% |
|
|
8.75 |
% |
|
|
8.95 |
% |
|
|
8.77 |
% |
|
|
8.09 |
% |
- Equity to total assets would be 9.43% if PPP loans of $84
million were excluded from total assets as of June 30, 2021. 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 |
|
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
Return on
Average Tangible Equity |
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
Net income |
|
$ |
14,418 |
|
|
$ |
13,178 |
|
|
$ |
3,030 |
|
|
$ |
13,547 |
|
|
$ |
8,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
shareholders’ equity |
|
$ |
530,971 |
|
|
$ |
525,643 |
|
|
$ |
523,446 |
|
|
$ |
514,736 |
|
|
$ |
502,683 |
|
Less: Average
intangible assets, net |
|
|
43,366 |
|
|
|
43,742 |
|
|
|
40,336 |
|
|
|
39,811 |
|
|
|
40,139 |
|
Average tangible equity |
|
|
487,605 |
|
|
|
481,901 |
|
|
|
483,110 |
|
|
|
474,925 |
|
|
|
462,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity |
|
|
11.83 |
% |
|
|
10.94 |
% |
|
|
2.51 |
% |
|
|
11.41 |
% |
|
|
7.13 |
% |
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
Return on
Average Tangible Equity |
|
2021 |
|
|
2020 |
|
Net income |
|
$ |
27,596 |
|
|
$ |
9,615 |
|
|
|
|
|
|
|
|
|
|
Average
shareholders’ equity |
|
$ |
528,322 |
|
|
$ |
505,554 |
|
Less: Average
intangible assets, net |
|
|
43,553 |
|
|
|
40,299 |
|
Average tangible equity |
|
|
484,769 |
|
|
|
465,255 |
|
|
|
|
|
|
|
|
|
|
Return on average
tangible common equity |
|
|
11.39 |
% |
|
|
4.13 |
% |
|
|
Three Months Ended |
|
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
Efficiency Ratio |
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
2020 |
|
Net interest
income |
|
$ |
33,845 |
|
|
$ |
31,793 |
|
|
$ |
31,735 |
|
|
$ |
32,149 |
|
|
$ |
31,971 |
|
Total other
income |
|
|
17,678 |
|
|
|
17,820 |
|
|
|
14,406 |
|
|
|
20,211 |
|
|
|
12,626 |
|
Less:
Loss/(gain) on loans held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
at lower of cost or
fair value |
|
|
(1,125 |
) |
|
|
(282 |
) |
|
|
— |
|
|
|
(7,429 |
) |
|
|
— |
|
Less: Income
from life insurance proceeds |
|
|
(153 |
) |
|
|
(302 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Loss/(gain) on
swap termination |
|
|
842 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Add:
Securities (gains)/losses, net |
|
|
(42 |
) |
|
|
265 |
|
|
|
42 |
|
|
|
— |
|
|
|
(125 |
) |
Total recurring
revenue |
|
|
51,045 |
|
|
|
49,294 |
|
|
|
46,183 |
|
|
|
44,931 |
|
|
|
44,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
30,684 |
|
|
|
31,594 |
|
|
|
39,249 |
|
|
|
28,461 |
|
|
|
29,014 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB
prepayment penalty |
|
|
— |
|
|
|
— |
|
|
|
4,784 |
|
|
|
— |
|
|
|
— |
|
Valuation allowance loans held for sale |
|
|
— |
|
|
|
— |
|
|
|
4,425 |
|
|
|
— |
|
|
|
— |
|
Write-off of subordinated debt costs |
|
|
648 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Severance expense |
|
|
— |
|
|
|
1,532 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total operating
expense |
|
|
30,036 |
|
|
|
30,062 |
|
|
|
30,040 |
|
|
|
28,461 |
|
|
|
29,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio |
|
|
58.84 |
% |
|
|
60.99 |
% |
|
|
65.05 |
% |
|
|
63.34 |
% |
|
|
65.24 |
% |
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
Efficiency Ratio |
|
2021 |
|
|
2020 |
|
Net interest
income |
|
$ |
65,638 |
|
|
$ |
63,718 |
|
Total other
income |
|
|
35,498 |
|
|
|
27,143 |
|
Add:
Securities (gains)/losses, net |
|
|
223 |
|
|
|
(323 |
) |
Less: Loss/(gain) on
swap termination |
|
|
842 |
|
|
|
— |
|
Less: Income
from life insurance proceeds |
|
|
(455 |
) |
|
|
— |
|
Less:
Loss/(gain) on loans held for sale |
|
|
|
|
|
|
|
|
at lower of cost or
fair value |
|
|
(1,407 |
) |
|
|
3 |
|
Total recurring
revenue |
|
|
100,339 |
|
|
|
90,541 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
62,278 |
|
|
|
57,249 |
|
Less: |
|
|
|
|
|
|
|
|
Write-off of subordinated debt costs |
|
|
648 |
|
|
|
— |
|
Severance expense |
|
|
1,532 |
|
|
|
— |
|
Total operating
expense |
|
|
60,098 |
|
|
|
57,249 |
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio |
|
|
59.89 |
% |
|
|
63.23 |
% |
Contact:
Jeffrey J. Carfora, SEVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-719-4308
Peapack Gladstone Financ... (NASDAQ:PGC)
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