-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LKKIMPLbTlFV2L3b2Cgl89d1Dy8nbG329ohFGnaJihB8CZhRjifeEMkFQ+cfjp91 MP9JmLBU8xkOOv2gWlJ7uQ== 0000914317-07-001190.txt : 20070427 0000914317-07-001190.hdr.sgml : 20070427 20070427155128 ACCESSION NUMBER: 0000914317-07-001190 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070424 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070427 DATE AS OF CHANGE: 20070427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PEAPACK GLADSTONE FINANCIAL CORP CENTRAL INDEX KEY: 0001050743 STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL BANKS, NEC [6029] IRS NUMBER: 223537895 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16197 FILM NUMBER: 07795747 BUSINESS ADDRESS: STREET 1: 158 ROUTE 206 NORTH CITY: GLADSTONE STATE: NJ ZIP: 07934 BUSINESS PHONE: 9082340700 MAIL ADDRESS: STREET 1: 158 ROUTE 206 NORTH CITY: GLADSTONE STATE: NJ ZIP: 07934 8-K 1 form8k-84208_pgc.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 April 24, 2007 Date of Report (Date of earliest event reported) PEAPACK-GLADSTONE FINANCIAL CORPORATION (Exact name of Registrant as Specified in its Charter) New Jersey (State or Other Jurisdiction of Incorporation) 001-16197 22-3537895 (Commission File Number) (IRS Employer Identification No.) 158 Route 206, Peapack-Gladstone, New Jersey 07934 (Address of principal executive offices) (908) 234-0700 (Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [_] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [_] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [_] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [_] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) INFORMATION TO BE INCLUDED IN THE REPORT Item 2.02 Results of Operations and Financial Condition. On April 24, 2007, Peapack-Gladstone Financial Corporation (the "Corporation") issued a press release reporting earnings and other financial results for its first quarter of 2007, which ended March 31, 2007. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated by reference in its entirety. The information disclosed under this Item 2.02, including Exhibit 99.1, shall be considered "furnished" but not "filed" for purposes of the Securities Exchange Act of 1934, as amended. Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Title ----------- ----- 99.1 Press Release dated April 24, 2007. The press release disclosed in this Item 9.01 as Exhibit 99.1 shall be considered "furnished" but not "filed" for purposes of the Securities Exchange Act of 1934, as amended. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PEAPACK-GLADSTONE FINANCIAL CORPORATION Dated: April 27, 2007 By: /s/ Arthur F. Birmingham ------------------------------------------------- Arthur F. Birmingham Executive Vice President and Chief Financial Officer EXHIBIT INDEX Exhibit No. Title ----------- ----- 99.1 Press Release dated April 24, 2007. EX-99.1 2 ex99-1.txt Exhibit 99.1 Contact: Arthur F. Birmingham Peapack-Gladstone Financial Corporation T: 908-719-4308 PEAPACK-GLADSTONE FINANCIAL CORPORATION REPORTS FIRST QUARTER EARNINGS GLADSTONE, N.J.--(BUSINESS WIRE)--April 24, 2007 - Peapack-Gladstone Financial Corporation (AMEX:PGC) reported net income of $2.7 million for the first quarter of 2007, a decline of $554 thousand or 17.1 percent from the $3.2 million reported for the first quarter of 2006. Diluted earnings per share were $0.32 for the first quarter of 2007 and $0.39 for the first quarter of 2006. The annualized return on average assets was 0.84 percent and the annualized return on average equity was 10.28 percent for the first quarter of 2007. EARNINGS Net Interest Income Net interest income, on a fully tax-equivalent basis, was $8.5 million in the first quarter of 2007, a decline of $338 thousand or 3.8 percent from the same quarter last year and an increase of $60 thousand or 0.7 percent over the fourth quarter of 2006. On a fully tax-equivalent basis, the net interest margin for the first quarter of 2007 was 2.81 percent as compared to 2.94 percent for the same period last year and 2.79 percent in the fourth quarter of 2006. In the past year, funding costs increased at a faster pace than yields on new loan originations. However, costs of interest-bearing liabilities declined by 7 basis points from the fourth quarter of 2006, due in part to the 25 basis point decrease in the rate on the high yield money market account. In addition, the The yield on earning assets increased over the first quarter of 2006 by 43 basis points, while cost of interest-bearing funds increased 71 basis points. The continued increase in funding costs was due to the Federal Reserve policy of increasing the target federal funds rate through most of 2006 and a change in funding mix into higher cost products. Average loans for the first quarter of 2007 increased $95.9 million or 12.4 percent to $870.9 million from $775.0 million for the first quarter of 2006. The average mortgage loan portfolio grew by $55.4 million or 9.0 percent, during this period, while the average commercial loan portfolio grew $31.8 million or 27.6 percent. Our long-term plan calls for a substantial shift in our asset mix, with less emphasis on residential mortgages and more emphasis on higher yielding commercial loans and commercial mortgages. We believe this material shift in our asset mix will deliver substantially superior earnings performance over the coming years. For the first quarter of 2007, average deposits grew $125.3 million, or 12.4 percent to $1.14 billion from $1.01 billion for the first quarter of 2006. Money markets and certificates of deposit remain the Corporation's fastest growing categories of deposits, and also pay the highest rates, averaging 4.06 percent and 4.80 percent, respectively. Average short-term borrowings declined $114.3 million from $118.6 million in the first quarter of 2006 to $4.3 million for the first quarter of 2007, a result of the strategic decision to reduce exposure to high-cost, short-term borrowings and reduce interest rate risk. Average demand deposits increased $3.8 million or 2.2 percent in the first quarter of 2007 from the year ago period. Other Income Other income remained constant at $3.2 million for each of the first quarters of 2007 and 2006. Fee income generated by PGB Trust and Investments was $2.1 million, a decrease of $103 thousand or 4.6 percent over the same quarter a year ago, due in part to a decline in trust termination fees and executor fees. These fees, which are non-recurring, totaled $304 thousand in 2006 as compared to $48 thousand in 2007. The market value of trust assets under administration was in excess of $1.94 billion at March 31, 2007 an increase of $173.7 million or 9.8 percent over the market value at March 31, 2006. Net securities gains of $162 thousand were recorded in the first quarter of 2007, as compared to net securities gains of $51 thousand in the year ago quarter. Other Expenses Other expenses totaled $7.6 million for the first quarter of 2007 as compared to $7.1 million for the first quarter of 2006, an increase of $440 thousand or 6.2 percent. For the first quarter of 2007, salaries and benefits expense was $4.3 million, increasing $395 thousand or 10.2 percent. Normal salary increases, additions to the professional lending staff and higher group health insurance accounted for the increase. Premises and equipment expenses were $1.9 million and $1.7 million for the first quarter of 2007 and 2006, respectively, an increase of $129 thousand, or 7.5 percent, reflecting investments in a new branch and equipment. All other expense categories declined $84 thousand or 5.5 percent for the first quarter 2007 as compared to 2006 due in part to decreases in advertising expense, trust department expense and stationery and supplies expense offset in part by increases in fees paid for professional services. The Corporation opened its newest branch in Summit in March. ASSET QUALITY At March 31, 2007, non-performing loans totaled $6.0 million or 0.68 percent of total loans as compared to $106 thousand or 0.01 percent at March 31, 2006. The increase in non-performing assets is primarily the result of two commercial loans totaling $5.3 million being designated as non-performing in the first quarter of 2007. These loans are both well collateralized by properties with appraised values in excess of the loan amounts. No loss of principal or interest is anticipated. Peapack-Gladstone Bank has no sub-prime loans, higher-interest rate loans to consumers with impaired or non-existent credit histories, in its mortgage loan portfolio. The allowance for loan losses was $6.9 million or 0.78 percent of total loans at March 31, 2007 as compared to $6.4 million or 0.81 percent of total loans at March 31, 2006. Net recoveries of $1 thousand were recorded in the quarter ended March 31, 2007, while $3 thousand of net charge-offs were recorded in the first quarter of 2006. CAPITAL At March 31, 2007, shareholders' equity totaled $105.6 million as compared with $99.1 million at March 31, 2006, an increase of $6.5 million or 6.6 percent. The Corporation's leverage ratio, tier 1 and total risk based capital ratios at March 31, 2007 were 8.37 percent, 15.51 percent and 16.51 percent, respectively. In the first quarter of 2007, the Corporation did not purchase any shares under its stock buy back program. A total of 60,900 shares have been repurchased since the program was originally announced in April 2005 and 89,100 shares are eligible to be repurchased under the program in the future. The Corporation extended its stock buy back program for another year as announced on April 19, 2007. Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.31 billion as of March 31, 2007. Peapack-Gladstone Bank, its wholly owned community bank was established in 1921, and has 22 branches in Somerset, Hunterdon, Morris and Union Counties. Its Trust Division, PGB Trust and Investments, operates at the Bank's main office located at 190 Main Street in Gladstone and at its Morristown office located at 233 South Street. To learn more about Peapack-Gladstone Financial Corporation and its services please visit our web site at www.pgbank.com or call 908-234-0700. The foregoing contains certain 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 view of future interest income and net loans, management's confidence and strategies and management's expectations about new and existing programs and products, 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 actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: o The success of the Corporation's balance sheet restructuring initiative. o Unexpected decline in the direction of the economy in New Jersey. o Unexpected changes in interest rates. o Failure to grow business. o Inability to manage growth. o Unexpected loan prepayment volume. o Exposure to credit risks. o Insufficient allowance for loan losses. o Competition from other financial institutions. o Adverse effects of government regulation. o Decline in the levels of loan quality and origination volume. o Decline in the volume of increase in trust assets or deposits. Peapack-Gladstone assumes no obligation for updating any such forward-looking statements at any time. (Tables to Follow) PEAPACK-GLADSTONE FINANCIAL CORPORATION SELECTED CONSOLIDATED FINANCIAL DATA UNAUDITED (Dollars in Thousands, Except Per Share Amounts) At or For The Three Months Ended March 31, 2007 2006 ---- ---- Income Statement Data: Interest Income $ 17,279 $ 15,794 Interest Expense 8,970 7,218 ---------- ---------- Net Interest Income 8,309 8,576 Provision For Loan Losses 125 39 ---------- ---------- Net Interest Income After Provision For Loan Losses 8,184 8,537 Trust Fees 2,142 2,245 Other Income 899 890 Securities Gains 162 51 Other Expenses 7,558 7,118 ---------- ---------- Income Before Income Taxes 3,829 4,605 Income Tax Expense 1,137 1,359 ---------- ---------- Net Income $ 2,692 $ 3,246 ========== ========== Balance Sheet Data: Total Assets $1,307,082 $1,287,441 Federal Funds Sold 26,365 1,437 Short-Term Investments 1,092 1,583 Securities Held To Maturity 52,987 71,771 Securities Available For Sale 276,195 351,742 Loans 882,574 789,487 Allowance For Loan Losses 6,894 6,414 Deposits 1,166,027 1,046,199 Borrowings 23,520 134,275 Shareholders' Equity 105,567 99,072 Trust Division Assets under Administration (Market Value, Not Included Above) $1,944,274 $1,770,545 Performance Ratios: Return on Average Assets 0.84% 1.02% Return on Average Equity 10.28 13.04 PEAPACK-GLADSTONE FINANCIAL CORPORATION SELECTED CONSOLIDATED FINANCIAL DATA UNAUDITED (Dollars in Thousands, Except Per Share Amounts) At or For The Three Months Ended March 31, 2007 2006 ---- ---- Net Interest Margin (Taxable Equivalent Basis) 2.81% 2.94% Asset Quality: Loans past due over 90 days And Still Accruing $ 393 $ 38 Non-Accrual Loans 5,651 68 Net Recoveries/(Charge-Offs) 1 (3) Allowance For Loan Losses To Total Loans 0.78% 0.81% Per Share Data: Earnings Per Share (Basic) $ 0.33 $ 0.39 Earnings Per Share (Diluted) 0.32 0.39 Book Value Per Share 12.75 11.98 Dividends Per Share 0.15 0.14 Capital Adequacy: Tier I Leverage 8.37% 8.13% Tier I Capital to Risk- Weighted Assets 15.51 16.17 Tier I & II Capital to Risk-Weighted Assets 16.51 17.18 PEAPACK-GLADSTONE FINANCIAL CORPORATION AVERAGE BALANCE SHEET UNAUDITED YEAR-TO-DATE (Tax-Equivalent Basis, Dollars in Thousands)
March 31, 2007 March 31, 2006 Average Income/ Average Income/ Balance Expense Yield Balance Expense Yield ------- ------- ----- ------- ------- ----- ASSETS: Interest-Earning Assets: Investments: Taxable (1) $ 282,137 $ 3,509 4.97% $ 374,043 $ 4,065 4.35% Tax-Exempt (1) (2) 56,502 740 5.24 57,635 752 5.22 Loans (2) (3) 870,905 13,178 6.05 775,015 11,261 5.81 Federal Funds Sold 5,884 79 5.38 1,479 16 4.33 Interest-Earning Deposits 898 11 5.02 904 9 4.03 ----------- ----------- ----------- ----------- ----------- ----------- Total Interest-Earning Assets 1,216,326 $ 17,517 5.76% 1,209,076 $ 16,103 5.33% ----------- ----------- ----------- ----------- ----------- ----------- Noninterest-Earning Assets: Cash and Due from Banks 23,127 21,893 Allowance for Loan Losses (6,770) (6,501) Premises and Equipment 24,406 21,716 Other Assets 26,642 23,113 ----------- ----------- Total Noninterest-Earning Assets 67,405 60,221 ----------- ----------- Total Assets $ 1,283,731 $ 1,269,297 =========== =========== LIABILITIES: Interest-Bearing Deposits Checking $ 136,941 $ 282 0.82% $ 144,319 $ 196 0.54% Money Markets 378,082 3,837 4.06 283,022 2,146 3.03 Savings 72,574 124 0.68 88,395 150 0.68 Certificates of Deposit 372,280 4,464 4.80 322,649 3,098 3.84 ----------- ----------- ----------- ----------- ----------- ----------- Total Interest-Bearing Deposits 959,877 8,707 3.63 838,385 5,590 2.67 Borrowings 27,930 263 3.77 150,054 1,628 4.34 ----------- ----------- ----------- ----------- ----------- ----------- Total Interest-Bearing Liabilities 987,807 8,970 3.63 988,439 7,218 2.92 ----------- ----------- ----------- ----------- ----------- ----------- Noninterest Bearing Liabilities Demand Deposits 180,247 176,398 Accrued Expenses and Other Liabilities 10,967 4,893 ----------- ----------- Total Noninterest-Bearing Liabilities 191,214 181,291 Shareholders' Equity 104,710 99,567 ----------- ----------- Total Liabilities and Shareholders' Equity $ 1,283,731 $ 1,269,297 =========== =========== Net Interest Income $ 8,547 $ 8,885 =========== =========== Net Interest Spread 2.13% 2.41% =========== =========== Net Interest Margin (4) 2.81% 2.94% =========== ===========
PEAPACK-GLADSTONE FINANCIAL CORPORATION AVERAGE BALANCE SHEET UNAUDITED QUARTER-TO-DATE (Tax-Equivalent Basis, Dollars in Thousands)
March 31, 2007 December 31, 2006 Average Income/ Average Income/ Balance Expense Yield Balance Expense Yield ------- ------- ----- ------- ------- ----- ASSETS: Interest-Earning Assets: Investments: Taxable (1) $ 282,137 $ 3,509 4.97% $ 290,532 $ 3,634 5.00% Tax-Exempt (1) (2) 56,502 740 5.24 47,617 653 5.49 Loans (2) (3) 870,905 13,178 6.05 871,664 13,291 6.10 Federal Funds Sold 5,884 79 5.38 3,282 43 5.29 Interest-Earning Deposits 898 11 5.02 1,548 18 4.70 ----------- ----------- ----------- ----------- ----------- ----------- Total Interest-Earning Assets 1,216,326 $ 17,517 5.76% 1,214,643 $ 17,639 5.81% ----------- ----------- ----------- ----------- ----------- ----------- Noninterest-Earning Assets: Cash and Due from Banks 23,127 23,068 Allowance for Loan Losses (6,770) (6,632) Premises and Equipment 24,406 23,649 Other Assets 26,642 25,465 ----------- ----------- Total Noninterest-Earning Assets 67,405 65,550 ----------- ----------- Total Assets $ 1,283,731 $ 1,280,193 =========== =========== LIABILITIES: Interest-Bearing Deposits Checking $ 136,941 $ 282 0.82% $ 132,834 $ 301 0.91% Money Markets 378,082 3,837 4.06 357,379 3,705 4.15 Savings 72,574 124 0.68 75,773 132 0.70 Certificates of Deposit 372,280 4,464 4.80 374,529 4,476 4.78 ----------- ----------- ----------- ----------- ----------- ----------- Total Interest-Bearing Deposits 959,877 8,707 3.63 940,515 8,614 3.66 Borrowings 27,930 263 3.77 48,638 538 4.42 ----------- ----------- ----------- ----------- ----------- ----------- Total Interest-Bearing Liabilities 987,807 8,970 3.63 989,153 9,152 3.70 ----------- ----------- ----------- ----------- ----------- ----------- Noninterest Bearing Liabilities Demand Deposits 180,247 179,338 Accrued Expenses and Other Liabilities 10,967 6,962 ----------- ----------- Total Noninterest-Bearing Liabilities 191,214 186,300 Shareholders' Equity 104,710 104,740 ----------- ----------- Total Liabilities and Shareholders' Equity $ 1,283,731 $ 1,280,193 =========== =========== Net Interest Income $ 8,547 8,487 =========== =========== Net Interest Spread 2.13% 2.11% =========== =========== Net Interest Margin (4) 2.81% 2.79% =========== ===========
(1) Average balances for available-for sale securities are based on amortized cost. (2) Interest income is presented on a tax-equivalent basis using a 35 percent federal tax rate. (3) Loans are stated net of unearned income and include non-accrual loans. (4) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets. -----END PRIVACY-ENHANCED MESSAGE-----