New Jersey
|
22-3537895
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
incorporation or organization)
|
Identification No.)
|
Large accelerated filer o
|
Accelerated filer x
|
Non-accelerated filer o
|
Smaller reporting company o
|
Item 1
|
Financial Statements (Unaudited):
|
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Page 3
|
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Page 4
|
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Page 5
|
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Page 6
|
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Page 7
|
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Item 2
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Page 29
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Item 3
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Page 37
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Item 4
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Page 37
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Item 1A
|
Page 38
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Item 2
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Page 38
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Item 6
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Page 38
|
March 31,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 7,348 | $ | 6,490 | ||||
Federal funds sold
|
100 | 100 | ||||||
Interest-earning deposits
|
42,234 | 56,097 | ||||||
Total cash and cash equivalents
|
49,682 | 62,687 | ||||||
Investment securities held to maturity (approximate fair
|
||||||||
value $150,196 in 2011 and $138,438 in 2010)
|
151,993 | 140,277 | ||||||
Securities available for sale
|
271,687 | 275,076 | ||||||
FHLB and FRB Stock, at cost
|
4,619 | 4,624 | ||||||
Loans Held for Sale, at fair value
|
1,168 | - | ||||||
Loans
|
950,299 | 932,497 | ||||||
Less: Allowance for loan losses
|
14,386 | 14,282 | ||||||
Net Loans
|
935,913 | 918,215 | ||||||
Premises and equipment
|
33,386 | 33,820 | ||||||
Other real estate owned
|
3,000 | 4,000 | ||||||
Accrued interest receivable
|
4,587 | 4,231 | ||||||
Cash surrender value of life insurance
|
27,301 | 27,074 | ||||||
Deferred tax assets, net
|
26,039 | 25,725 | ||||||
Other assets
|
11,343 | 9,696 | ||||||
TOTAL ASSETS
|
$ | 1,520,718 | $ | 1,505,425 | ||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing demand deposits
|
$ | 235,977 | $ | 228,764 | ||||
Interest-bearing deposits:
|
||||||||
Checking
|
302,589 | 290,322 | ||||||
Savings
|
85,741 | 80,799 | ||||||
Money market accounts
|
526,355 | 524,449 | ||||||
Certificates of deposit $100,000 and over
|
73,966 | 79,311 | ||||||
Certificates of deposit less than $100,000
|
139,022 | 147,901 | ||||||
Total deposits
|
1,363,650 | 1,351,546 | ||||||
Federal Home Loan Bank advances
|
24,016 | 24,126 | ||||||
Capital lease obligation
|
6,383 | 6,304 | ||||||
Accrued expenses and other liabilities
|
14,585 | 5,733 | ||||||
TOTAL LIABILITIES
|
1,408,634 | 1,387,709 | ||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Preferred stock (no par value; authorized 500,000 shares; issued 14,341
|
||||||||
shares at March 31, 2011 and 21,513 at December 31, 2010;
|
||||||||
liquidation preference of $1,000 per share)
|
13,859 | 20,746 | ||||||
Common stock (no par value; $0.83 per share; authorized 21,000,000
|
||||||||
shares; issued shares, 9,230,878 at March 31, 2011 and 9,199,038
|
||||||||
at December 31, 2010; outstanding shares, 8,822,700 at March
|
||||||||
31, 2011 and 8,790,860 at December 31, 2010)
|
7,676 | 7,650 | ||||||
Surplus
|
95,765 | 95,586 | ||||||
Treasury stock at cost, 408,178 shares at March 31, 2011 and
|
||||||||
408,178 shares at December 31, 2010
|
(8,988 | ) | (8,988 | ) | ||||
Retained earnings
|
5,823 | 4,693 | ||||||
Accumulated other comprehensive loss, net of income tax
|
(2,051 | ) | (1,971 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY
|
112,084 | 117,716 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY
|
$ | 1,520,718 | $ | 1,505,425 |
Three Months Ended
|
||||||||
March 31,
|
||||||||
2011
|
2010
|
|||||||
INTEREST INCOME
|
||||||||
Interest and fees on loans
|
$ | 11,730 | $ | 12,975 | ||||
Interest on investment securities:
|
||||||||
Taxable
|
611 | 514 | ||||||
Tax-exempt
|
93 | 141 | ||||||
Interest on securities available for sale:
|
||||||||
Taxable
|
1,658 | 1,997 | ||||||
Tax-exempt
|
121 | 140 | ||||||
Interest on loans held for sale
|
16 | - | ||||||
Interest-earning deposits
|
28 | 24 | ||||||
Total interest income
|
14,257 | 15,791 | ||||||
INTEREST EXPENSE
|
||||||||
Interest on savings and interest-bearing deposit
|
||||||||
accounts
|
979 | 1,602 | ||||||
Interest on certificates of deposit over $100,000
|
285 | 505 | ||||||
Interest on other time deposits
|
490 | 812 | ||||||
Interest on borrowed funds
|
203 | 324 | ||||||
Interest on capital lease obligation
|
79 | - | ||||||
Total interest expense
|
2,036 | 3,243 | ||||||
NET INTEREST INCOME BEFORE
|
||||||||
PROVISION FOR LOAN LOSSES
|
12,221 | 12,548 | ||||||
Provision for loan losses
|
2,000 | 2,400 | ||||||
NET INTEREST INCOME AFTER
|
||||||||
PROVISION FOR LOAN LOSSES
|
10,221 | 10,148 | ||||||
OTHER INCOME
|
||||||||
Trust department income
|
2,718 | 2,364 | ||||||
Service charges and fees
|
703 | 657 | ||||||
Bank owned life insurance
|
251 | 197 | ||||||
Securities gains/(losses), net
|
196 | - | ||||||
Other income
|
301 | 254 | ||||||
Total other income
|
4,169 | 3,472 | ||||||
OPERATING EXPENSES
|
||||||||
Salaries and employee benefits
|
5,973 | 5,709 | ||||||
Premises and equipment
|
2,322 | 2,372 | ||||||
FDIC insurance expense
|
604 | 586 | ||||||
Other expenses
|
2,344 | 1,863 | ||||||
Total operating expenses
|
11,243 | 10,530 | ||||||
INCOME BEFORE INCOME TAX EXPENSE
|
3,147 | 3,090 | ||||||
Income tax expense
|
1,006 | 965 | ||||||
NET INCOME
|
2,141 | 2,125 | ||||||
Dividends on preferred stock and accretion
|
570 | 710 | ||||||
NET INCOME AVAILABLE TO COMMON
|
||||||||
SHAREHOLDERS
|
$ | 1,571 | $ | 1,415 | ||||
EARNINGS PER COMMON SHARE
|
||||||||
Basic
|
$ | 0.18 | $ | 0.16 | ||||
Diluted
|
$ | 0.18 | $ | 0.16 | ||||
WEIGHTED AVERAGE NUMBER OF COMMON
|
||||||||
SHARES OUTSTANDING
|
||||||||
Basic
|
8,820,059 | 8,778,764 | ||||||
Diluted
|
8,820,856 | 8,779,049 |
Accumulated
|
||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||
(In Thousands, Except
|
Common
|
Preferred
|
Treasury
|
Retained
|
Comprehensive
|
|||||||||||||||||||||||
Per Share Data)
|
Stock
|
Stock
|
Surplus
|
Stock
|
Earnings
|
Income/(Loss)
|
Total
|
|||||||||||||||||||||
Balance at January 1, 2011
|
||||||||||||||||||||||||||||
8,790,860 Common Shares
|
||||||||||||||||||||||||||||
Outstanding
|
$ | 7,650 | $ | 20,746 | $ | 95,586 | $ | (8,988 | ) | $ | 4,693 | $ | (1,971 | ) | $ | 117,716 | ||||||||||||
Comprehensive Income:
|
||||||||||||||||||||||||||||
Net Income 2011
|
2,141 | 2,141 | ||||||||||||||||||||||||||
Unrealized Holding Gains on
|
||||||||||||||||||||||||||||
Securities Arising During the
|
||||||||||||||||||||||||||||
Period, Net of Amortization
|
||||||||||||||||||||||||||||
(Net of Income Tax
|
||||||||||||||||||||||||||||
Expense of $80)
|
48 | |||||||||||||||||||||||||||
Less: Reclassification
|
||||||||||||||||||||||||||||
Adjustment for Gain
|
||||||||||||||||||||||||||||
Included in Net Income (Net
|
||||||||||||||||||||||||||||
of Income Tax Expense
|
||||||||||||||||||||||||||||
of $68)
|
128 | |||||||||||||||||||||||||||
Net Unrealized Holding
|
||||||||||||||||||||||||||||
Gains on Securities Arising
|
||||||||||||||||||||||||||||
During the Period (Net of
|
||||||||||||||||||||||||||||
Income Tax Expense
|
||||||||||||||||||||||||||||
of $12)
|
(80 | ) | (80 | ) | ||||||||||||||||||||||||
Total Comprehensive Income
|
2,061 | |||||||||||||||||||||||||||
Issuance of Restricted Stock
|
||||||||||||||||||||||||||||
28,732 shares
|
24 | (24 | ) | - | ||||||||||||||||||||||||
Amortization of Restricted Stock
|
58 | 58 | ||||||||||||||||||||||||||
Redemption of Preferred Stock
|
||||||||||||||||||||||||||||
7,172 shares
|
(7,172 | ) | (7,172 | ) | ||||||||||||||||||||||||
Accretion of Discount on
|
||||||||||||||||||||||||||||
Preferred Stock
|
285 | (285 | ) | - | ||||||||||||||||||||||||
Cash Dividends Declared on
|
||||||||||||||||||||||||||||
Common Stock
|
(441 | ) | (441 | ) | ||||||||||||||||||||||||
($0.05 per share)
|
||||||||||||||||||||||||||||
Cash Dividends Declared on
|
||||||||||||||||||||||||||||
Preferred Stock
|
(285 | ) | (285 | ) | ||||||||||||||||||||||||
Common Stock Option Expense
|
107 | 107 | ||||||||||||||||||||||||||
Sales of Shares (Dividend
|
||||||||||||||||||||||||||||
Reinvestment Program),
|
||||||||||||||||||||||||||||
3,108 shares
|
2 | 38 | 40 | |||||||||||||||||||||||||
Balance at March 31, 2011
|
||||||||||||||||||||||||||||
8,822,700 Common Shares
|
||||||||||||||||||||||||||||
Outstanding
|
$ | 7,676 | $ | 13,859 | $ | 95,765 | $ | (8,988 | ) | $ | 5,823 | $ | (2,051 | ) | $ | 112,084 |
Three Months Ended March 31,
|
||||||||
2011
|
2010
|
|||||||
OPERATING ACTIVITIES:
|
||||||||
Net income:
|
$ | 2,141 | $ | 2,125 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
718 | 810 | ||||||
Amortization of premium and accretion of discount on securities, net
|
690 | 44 | ||||||
Amortization of restricted stock
|
58 | 38 | ||||||
Provision for loan losses
|
2,000 | 2,400 | ||||||
Provision for deferred taxes
|
33 | (532 | ) | |||||
Stock-based compensation
|
107 | 75 | ||||||
Gains on security sales, available for sale
|
(196 | ) | - | |||||
Loans originated for sale
|
(9,726 | ) | (12,438 | ) | ||||
Proceeds from sales of loans
|
8,744 | 12,615 | ||||||
Gains on loans sold
|
(186 | ) | (177 | ) | ||||
Gains on sale of other real estate owned
|
(47 | ) | (15 | ) | ||||
Increase in cash surrender value of life insurance, net
|
(227 | ) | (181 | ) | ||||
Increase in accrued interest receivable
|
(339 | ) | (668 | ) | ||||
(Increase)/decrease in other assets
|
(2,006 | ) | 1,579 | |||||
Increase/(decrease) in accrued expenses and other liabilities
|
487 | (678 | ) | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
2,251 | 4,997 | ||||||
INVESTING ACTIVITIES:
|
||||||||
Proceeds from maturities of investment securities held to maturity
|
6,536 | 3,456 | ||||||
Proceeds from maturities of securities available for sale
|
15,179 | 10,952 | ||||||
Proceeds from calls of investment securities held to maturity
|
- | 6,250 | ||||||
Proceeds from calls of securities available for sale
|
24,995 | 24,594 | ||||||
Proceeds from sales of securities available for sale
|
27,235 | |||||||
Purchase of investment securities held to maturity
|
(18,381 | ) | (25,517 | ) | ||||
Purchase of securities available for sale
|
(56,021 | ) | (41,006 | ) | ||||
Net (increase)/decrease in loans
|
(19,889 | ) | 10,600 | |||||
Proceeds from sales of other real estate owned
|
1,238 | 335 | ||||||
Purchases of premises and equipment
|
(284 | ) | (841 | ) | ||||
NET CASH USED IN INVESTING ACTIVITIES
|
(19,392 | ) | (11,177 | ) | ||||
FINANCING ACTIVITIES:
|
||||||||
Net increase/(decrease) in deposits
|
12,104 | (22,420 | ) | |||||
Repayments of Federal Home Loan Bank advances
|
(110 | ) | (359 | ) | ||||
Redemption of preferred stock
|
(7,172 | ) | (7,172 | ) | ||||
Cash dividends paid on preferred stock
|
(285 | ) | (320 | ) | ||||
Cash dividends paid on common stock
|
(441 | ) | (439 | ) | ||||
Sales of shares (DRIP Program)
|
40 | 33 | ||||||
NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES
|
4,136 | (30,677 | ) | |||||
Net decrease in cash and cash equivalents
|
(13,005 | ) | (36,857 | ) | ||||
Cash and cash equivalents at beginning of period
|
62,687 | 79,972 | ||||||
Cash and cash equivalents at end of period
|
$ | 49,682 | $ | 43,115 | ||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$ | 2,067 | $ | 3,507 | ||||
Income taxes
|
5 | 110 | ||||||
Transfer of loans to other real estate owned
|
191 | - | ||||||
Security purchases settled in subsequent period | 8,444 | - |
1.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
Number
|
Exercise
|
Weighted
|
Aggregate
|
|||||||||||||
of
|
Price
|
Average
|
Intrinsic
|
|||||||||||||
(Dollars in thousands except share data)
|
Shares
|
Per Share
|
Exercise Price
|
Value
|
||||||||||||
Balance, January 1, 2011
|
578,763 | $ | 10.83-$31.43 | 23.75 | ||||||||||||
Granted
|
57,300 | 13.38-13.62 | 13.53 | |||||||||||||
Forfeited
|
(63,679 | ) | 13.43-27.51 | 15.77 | ||||||||||||
Balance, March 31, 2011
|
572,384 | $ | 10.83-$31.43 | 23.61 | $ | 10 | ||||||||||
Vested and Expected to Vest (1)
|
559,571 | $ | 10.83-$31.43 | 24.27 | $ | 9 | ||||||||||
Exercisable at March 31, 2011
|
420,556 | $ | 11.05-$31.43 | 26.24 | $ | 3 |
(1)
|
Does not include shares which are not expected to vest as a result of anticipated forfeitures.
|
2011
|
2010
|
|||||||
Dividend yield
|
1.51 | % | 1.27 | % | ||||
Expected volatility
|
84 | % | 72 | % | ||||
Expected life
|
7 years
|
7 years
|
||||||
Risk-free interest rate
|
2.02 | % | 2.92 | % |
Three Months Ended
|
||||||||
March 31,
|
||||||||
(In Thousands, except per share data)
|
2011
|
2010
|
||||||
Net Income to Common Shareholders
|
$ | 1,571 | $ | 1,415 | ||||
Basic Weighted-Average Common
|
||||||||
Shares Outstanding
|
8,820,059 | 8,778,764 | ||||||
Plus: Common Stock Equivalents
|
797 | 285 | ||||||
Diluted Weighted-Average Common
|
||||||||
Shares Outstanding
|
8,820,856 | 8,779,049 | ||||||
Net Income Per Common Share
|
||||||||
Basic
|
$ | 0.18 | $ | 0.16 | ||||
Diluted
|
0.18 | 0.16 |
2.
|
INVESTMENT SECURITIES HELD TO MATURITY
|
March 31, 2011
|
||||||||||||||||
Gross
|
Gross
|
Approximate
|
||||||||||||||
Carrying
|
Unrecognized
|
Unrecognized
|
Fair
|
|||||||||||||
(In Thousands)
|
Amount
|
Gains
|
Losses
|
Value
|
||||||||||||
U.S. Government-Sponsored Entities
|
$ | 57,980 | $ | 23 | $ | (868 | ) | $ | 57,135 | |||||||
Mortgage-Backed Securities -
|
||||||||||||||||
Residential
|
63,330 | 846 | (487 | ) | 63,689 | |||||||||||
State and Political Subdivisions
|
21384 | 154 | (30 | ) | 21,508 | |||||||||||
Trust Preferred Pooled Securities
|
9,299 | - | (1,435 | ) | 7,864 | |||||||||||
Total
|
$ | 151,993 | $ | 1,023 | $ | (2,820 | ) | $ | 150,196 |
December 31, 2010
|
||||||||||||||||
Gross
|
Gross
|
Approximate
|
||||||||||||||
Carrying
|
Unrecognized
|
Unrecognized
|
Fair
|
|||||||||||||
(In Thousands)
|
Amount
|
Gains
|
Losses
|
Value
|
||||||||||||
U.S. Government-Sponsored Entities
|
$ | 45,485 | $ | 11 | $ | (790 | ) | $ | 44,706 | |||||||
Mortgage-Backed Securities -
|
||||||||||||||||
Residential
|
67,745 | 921 | (494 | ) | 68,172 | |||||||||||
State and Political Subdivisions
|
17,671 | 184 | (31 | ) | 17,824 | |||||||||||
Trust Preferred Pooled Securities
|
9,376 | - | (1,640 | ) | 7,736 | |||||||||||
Total
|
$ | 140,277 | $ | 1,116 | $ | (2,955 | ) | $ | 138,438 |
March 31, 2011
|
||||||||||||||||||||||||
Duration of Unrealized Loss
|
||||||||||||||||||||||||
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Approximate
|
Approximate
|
Approximate
|
||||||||||||||||||||||
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
|||||||||||||||||||
(In Thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
U.S. Government-
|
||||||||||||||||||||||||
Sponsored
|
||||||||||||||||||||||||
Entities
|
$ | 44,624 | $ | (868 | ) | $ | - | $ | - | $ | 44,624 | $ | (868 | ) | ||||||||||
Mortgage-Backed
|
||||||||||||||||||||||||
Securities -
|
||||||||||||||||||||||||
Residential
|
33,081 | (487 | ) | - | - | 33,081 | (487 | ) | ||||||||||||||||
State & Political
|
||||||||||||||||||||||||
Subdivisions
|
10,507 | (30 | ) | - | - | 10,507 | (30 | ) | ||||||||||||||||
Trust Preferred
|
||||||||||||||||||||||||
Pooled Securities
|
- | - | 1,989 | (1,435 | ) | 1,989 | (1,435 | ) | ||||||||||||||||
Total
|
$ | 88,212 | $ | (1,385 | ) | $ | 1,989 | $ | (1,435 | ) | $ | 90,201 | $ | (2,820 | ) |
December 31, 2010
|
||||||||||||||||||||||||
Duration of Unrealized Loss
|
||||||||||||||||||||||||
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Approximate
|
Approximate
|
Approximate
|
||||||||||||||||||||||
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
|||||||||||||||||||
(In Thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
U.S. Government-
|
||||||||||||||||||||||||
Sponsored
|
||||||||||||||||||||||||
Entities
|
$ | 39,707 | $ | (790 | ) | $ | - | $ | - | $ | 39,707 | $ | (790 | ) | ||||||||||
Mortgage-Backed
|
||||||||||||||||||||||||
Securities -
|
||||||||||||||||||||||||
Residential
|
32,553 | (494 | ) | - | - | 32,553 | (494 | ) | ||||||||||||||||
State & Political
|
||||||||||||||||||||||||
Subdivisions
|
9,667 | (31 | ) | - | - | 9,667 | (31 | ) | ||||||||||||||||
Trust Preferred
|
||||||||||||||||||||||||
Pooled Securities
|
- | - | 1,782 | (1,640 | ) | 1,782 | (1,640 | ) | ||||||||||||||||
Total
|
$ | 81,927 | $ | (1,315 | ) | $ | 1,782 | $ | (1,640 | ) | $ | 83,709 | $ | (2,955 | ) |
3.
|
INVESTMENT SECURITIES AVAILABLE FOR SALE
|
March 31, 2011
|
||||||||||||||||
Gross
|
Gross
|
Approximate
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(In Thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
U.S. Government-Sponsored
|
||||||||||||||||
Entities
|
$ | 16,282 | $ | 3 | $ | (39 | ) | $ | 16,246 | |||||||
Mortgage-Backed Securities -
|
||||||||||||||||
Residential
|
229,356 | 3,787 | (950 | ) | 232,193 | |||||||||||
State and Political Subdivisions
|
17,494 | 338 | (33 | ) | 17,799 | |||||||||||
Other Securities
|
5,499 | - | (785 | ) | 4,714 | |||||||||||
Marketable Equity Securities
|
680 | 56 | (1 | ) | 735 | |||||||||||
Total
|
$ | 269,311 | $ | 4,184 | $ | (1,808 | ) | $ | 271,687 |
December 31, 2010
|
||||||||||||||||
Gross
|
Gross
|
Approximate
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(In Thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
U.S. Treasury and U.S.
|
||||||||||||||||
Government-Sponsored
|
||||||||||||||||
Entities
|
$ | 50,926 | $ | 209 | $ | - | $ | 51,135 | ||||||||
Mortgage-Backed Securities -
|
||||||||||||||||
Residential
|
199,099 | 4,179 | (1,188 | ) | 202,090 | |||||||||||
State and Political Subdivisions
|
16,418 | 243 | (48 | ) | 16,613 | |||||||||||
Other Securities
|
5,499 | - | (999 | ) | 4,500 | |||||||||||
Marketable Equity Securities
|
680 | 58 | - | 738 | ||||||||||||
Total
|
$ | 272,622 | $ | 4,689 | $ | (2,235 | ) | $ | 275,076 |
March 31, 2011
|
||||||||||||||||||||||||
Duration of Unrealized Loss
|
||||||||||||||||||||||||
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Approximate
|
Approximate
|
Approximate
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
(In Thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
U.S. Government-
|
||||||||||||||||||||||||
Sponsored Entities
|
$ | 9,944 | $ | (39 | ) | $ | - | $ | - | $ | 9,944 | $ | (39 | ) | ||||||||||
Mortgage-Backed
|
||||||||||||||||||||||||
Securities -
|
||||||||||||||||||||||||
Residential
|
102,159 | (924 | ) | 371 | (26 | ) | 102,530 | (950 | ) | |||||||||||||||
State and Political
|
||||||||||||||||||||||||
Subdivisions
|
2,269 | (16 | ) | 463 | (17 | ) | 2,732 | (33 | ) | |||||||||||||||
Other Securities
|
- | - | 3,221 | (778 | ) | 3,221 | (778 | ) | ||||||||||||||||
CRA Investment Fund
|
1,493 | (7 | ) | - | - | 1,493 | (7 | ) | ||||||||||||||||
Marketable Equity
|
||||||||||||||||||||||||
Securities
|
- | - | - | (1 | ) | - | (1 | ) | ||||||||||||||||
Total
|
$ | 115,865 | $ | (986 | ) | $ | 4,055 | $ | (822 | ) | $ | 119,920 | $ | (1,808 | ) |
December 31, 2010
|
||||||||||||||||||||||||
Duration of Unrealized Loss
|
||||||||||||||||||||||||
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Approximate
|
Approximate
|
Approximate
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
(In Thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
Mortgage-Backed
|
||||||||||||||||||||||||
Securities -
|
||||||||||||||||||||||||
Residential
|
102,695 | (984 | ) | 2,211 | (204 | ) | 104,906 | (1,188 | ) | |||||||||||||||
State and Political
|
||||||||||||||||||||||||
Subdivisions
|
777 | (14 | ) | 446 | (34 | ) | 1,223 | (48 | ) | |||||||||||||||
Other Securities
|
1,499 | (1 | ) | 3,001 | (998 | ) | 4,500 | (999 | ) | |||||||||||||||
Total
|
$ | 104,971 | $ | (999 | ) | $ | 5,658 | $ | (1,236 | ) | $ | 110,629 | $ | (2,235 | ) |
4.
|
LOANS
|
% of Total
|
% of Total
|
|||||||||||||||
(In Thousands)
|
2011
|
Loans
|
2010
|
Loans
|
||||||||||||
Residential Mortgage
|
$ | 432,413 | 45.5 | % | $ | 419,653 | 45.0 | % | ||||||||
Commercial Mortgage
|
300,659 | 31.6 | 288,183 | 30.9 | ||||||||||||
Commercial Loans
|
133,614 | 14.1 | 131,408 | 14.1 | ||||||||||||
Construction Loans
|
17,693 | 1.9 | 25,367 | 2.7 | ||||||||||||
Home Equity Lines of Credit
|
45,512 | 4.8 | 45,775 | 4.9 | ||||||||||||
Consumer Loans, Including
|
||||||||||||||||
Fixed Rate Home Equity Loans
|
19,278 | 2.0 | 20,622 | 2.2 | ||||||||||||
Other Loans
|
1,130 | 0.1 | 1,489 | 0.2 | ||||||||||||
Total Loans
|
$ | 950,299 | 100.0 | % | $ | 932,497 | 100.0 | % |
March 31, 2011
|
||||||||||||||||||||||||
Total
|
Ending ALLL
|
Total
|
Ending ALLL
|
|||||||||||||||||||||
Loans
|
Attributable
|
Loans
|
Attributable
|
|||||||||||||||||||||
Individually
|
to Loans
|
Collectively
|
to Loans
|
Total
|
||||||||||||||||||||
Evaluated
|
Individually
|
Evaluated
|
Collectively
|
|||||||||||||||||||||
for
|
Evaluated for
|
for
|
Evaluated for
|
Total
|
Ending
|
|||||||||||||||||||
(In Thousands)
|
Impairment
|
Impairment
|
Impairment
|
Impairment
|
Loans
|
ALLL
|
||||||||||||||||||
Primary
|
||||||||||||||||||||||||
Residential
|
||||||||||||||||||||||||
Mortgage
|
$ | 4,392 | $ | 19 | $ | 440,054 | $ | 1,554 | $ | 444,446 | $ | 1,573 | ||||||||||||
Home Equity Lines
|
||||||||||||||||||||||||
of Credit
|
26 | - | 45,486 | 174 | 45,512 | 174 | ||||||||||||||||||
Junior Lien Loan
|
||||||||||||||||||||||||
On Residence
|
525 | - | 13,524 | 208 | 14,049 | 208 | ||||||||||||||||||
Multifamily
|
||||||||||||||||||||||||
Property
|
599 | - | 66,864 | 367 | 67,463 | 367 | ||||||||||||||||||
Owner-Occupied
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Real Estate
|
12,640 | 1,418 | 98,222 | 1,969 | 110,862 | 3,387 | ||||||||||||||||||
Investment Commercial
|
||||||||||||||||||||||||
Real Estate
|
5,945 | 686 | 204,053 | 4,026 | 209,998 | 4,712 | ||||||||||||||||||
Commercial and
|
||||||||||||||||||||||||
Industrial
|
1,929 | 241 | 24,771 | 2,210 | 26,700 | 2,451 | ||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Construction
|
- | - | 17,693 | 903 | 17,693 | 903 | ||||||||||||||||||
Consumer and
|
||||||||||||||||||||||||
Other
|
- | - | 13,576 | 90 | 13,576 | 90 | ||||||||||||||||||
Unallocated
|
- | - | - | 521 | - | 521 | ||||||||||||||||||
Total ALLL
|
$ | 26,056 | $ | 2,364 | $ | 924,243 | $ | 12,022 | $ | 950,299 | $ | 14,386 |
December 31, 2010
|
||||||||||||||||||||||||
Total
|
Ending ALLL
|
Total
|
Ending ALLL
|
|||||||||||||||||||||
Loans
|
Attributable
|
Loans
|
Attributable
|
|||||||||||||||||||||
Individually
|
to Loans
|
Collectively
|
to Loans
|
Total
|
||||||||||||||||||||
Evaluated
|
Individually
|
Evaluated
|
Collectively
|
|||||||||||||||||||||
for
|
Evaluated for
|
for
|
Evaluated for
|
Total
|
Ending
|
|||||||||||||||||||
(In Thousands)
|
Impairment
|
Impairment
|
Impairment
|
Impairment
|
Loans
|
ALLL
|
||||||||||||||||||
Primary
|
||||||||||||||||||||||||
Residential
|
||||||||||||||||||||||||
Mortgage
|
$ | 4,578 | $ | - | $ | 428,466 | $ | 1,502 | $ | 433,044 | $ | 1,502 | ||||||||||||
Home Equity Lines
|
||||||||||||||||||||||||
of Credit
|
85 | - | 45,730 | 160 | 45,815 | 160 | ||||||||||||||||||
Junior Lien Loan
|
||||||||||||||||||||||||
On Residence
|
537 | - | 14,981 | 228 | 15,518 | 228 | ||||||||||||||||||
Multifamily
|
||||||||||||||||||||||||
Property
|
691 | 26 | 40,327 | 277 | 41,018 | 303 | ||||||||||||||||||
Owner-Occupied
|
||||||||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Real Estate
|
3,051 | 504 | 114,634 | 2,740 | 117,685 | 3,244 | ||||||||||||||||||
Investment Commercial
|
||||||||||||||||||||||||
Real Estate
|
11,900 | 1,141 | 203,692 | 3,151 | 215,592 | 4,292 | ||||||||||||||||||
Commercial and
|
||||||||||||||||||||||||
Industrial
|
2,330 | 308 | 25,448 | 2,411 | 27,778 | 2,719 | ||||||||||||||||||
Commercial
|
||||||||||||||||||||||||
Construction
|
5,225 | 500 | 20,149 | 746 | 25,374 | 1,246 | ||||||||||||||||||
Consumer and
|
||||||||||||||||||||||||
Other
|
- | - | 10,673 | 66 | 10,673 | 66 | ||||||||||||||||||
Unallocated
|
- | - | - | 522 | - | 522 | ||||||||||||||||||
Total ALLL
|
$ | 28,397 | $ | 2,479 | $ | 904,100 | $ | 11,803 | $ | 932,497 | $ | 14,282 |
March 31, 2011
|
||||||||||||
Unpaid
|
||||||||||||
Principal
|
Recorded
|
Specific
|
||||||||||
(In Thousands)
|
Balance
|
Investment
|
Reserves
|
|||||||||
With No Related Allowance Recorded:
|
||||||||||||
Multifamily Property
|
$ | 711 | $ | 599 | $ | - | ||||||
Home Equity Lines of Credit
|
100 | 26 | - | |||||||||
Junior Lien Loan on Residence
|
537 | 525 | - | |||||||||
Total Loans with No Related Allowance
|
$ | 1,348 | $ | 1,150 | $ | - | ||||||
With Related Allowance Recorded:
|
||||||||||||
Primary Residential Mortgage
|
4,986 | 4,392 | 19 | |||||||||
Owner-Occupied Commercial Real Estate
|
12,910 | 12,640 | 1,418 | |||||||||
Investment Commercial Real Estate
|
6,965 | 5,945 | 686 | |||||||||
Commercial and Industrial
|
3,238 | 1,929 | 241 | |||||||||
Total Loans with Related Allowance
|
$ | 28,099 | $ | 24,906 | $ | 2,364 | ||||||
Total Loans Individually Evaluated for
|
||||||||||||
Impairment
|
$ | 29,447 | $ | 26,056 | $ | 2,364 |
December 31, 2010
|
||||||||||||
Unpaid
|
||||||||||||
Principal
|
Recorded
|
Specific
|
||||||||||
(In Thousands)
|
Balance
|
Investment
|
Reserves
|
|||||||||
With No Related Allowance Recorded:
|
||||||||||||
Primary Residential Mortgage
|
$ | 5,080 | $ | 4,578 | $ | - | ||||||
Home Equity Lines of Credit
|
100 | 85 | - | |||||||||
Junior Lien Loan on Residence
|
660 | 537 | - | |||||||||
Total Loans with No Related Allowance
|
$ | 5,840 | $ | 5,200 | $ | - | ||||||
With Related Allowance Recorded:
|
||||||||||||
Multifamily Property
|
713 | 691 | 26 | |||||||||
Owner-Occupied Commercial Real Estate
|
8,238 | 7,972 | 505 | |||||||||
Investment Commercial Real Estate
|
6,979 | 6,979 | 1,141 | |||||||||
Commercial and Industrial
|
3,464 | 2,330 | 307 | |||||||||
Commercial Construction
|
8,199 | 5,225 | 500 | |||||||||
Total Loans with Related Allowance
|
$ | 27,593 | $ | 23,197 | $ | 2,479 | ||||||
Total Loans Individually Evaluated for
|
||||||||||||
Impairment
|
$ | 33,433 | $ | 28,397 | $ | 2,479 |
March 31, 2011
|
||||||||
Loans Past Due
|
||||||||
Over 90 Days
|
||||||||
And Still
|
||||||||
Accruing
|
||||||||
(In Thousands)
|
Nonaccrual
|
Interest
|
||||||
Primary Residential Mortgage
|
$ | 4,555 | $ | - | ||||
Home Equity Lines of Credit
|
26 | - | ||||||
Junior Lien Loan on Residence
|
525 | - | ||||||
Multifamily Property
|
599 | 49 | ||||||
Owner-Occupied Commercial Real Estate
|
8,127 | - | ||||||
Investment Commercial Real Estate
|
3,975 | - | ||||||
Commercial and Industrial
|
1,366 | 274 | ||||||
Total
|
$ | 19,173 | $ | 323 |
December 31, 2010
|
||||||||
Loans Past Due
|
||||||||
Over 90 Days
|
||||||||
And Still
|
||||||||
Accruing
|
||||||||
(In Thousands)
|
Nonaccrual
|
Interest
|
||||||
Primary Residential Mortgage
|
$ | 4,578 | $ | |||||
Home Equity Lines of Credit
|
85 | |||||||
Junior Lien Loan on Residence
|
537 | |||||||
Multifamily Property
|
378 | 361 | ||||||
Owner-Occupied Commercial Real Estate
|
1,594 | 305 | ||||||
Investment Commercial Real Estate
|
3,966 | |||||||
Commercial and Industrial
|
1,751 | |||||||
Commercial Construction
|
5,225 | |||||||
Total
|
$ | 18,114 | $ | 666 |
March 31 ,2011
|
||||||||||||||||
30-59 | 60-89 |
Greater Than
|
||||||||||||||
Days
|
Days
|
90 Days
|
Total
|
|||||||||||||
(In Thousands)
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
||||||||||||
Primary Residential Mortgage
|
$ | 3,377 | $ | - | $ | - | $ | 3,377 | ||||||||
Junior Lien Loan on Residence
|
- | 96 | 96 | |||||||||||||
Multifamily Property
|
- | - | 49 | 49 | ||||||||||||
Owner-Occupied Commercial
|
||||||||||||||||
Real Estate
|
814 | 761 | 1,575 | |||||||||||||
Commercial and Industrial
|
40 | 69 | 274 | 383 | ||||||||||||
Consumer and Other
|
- | 1 | 1 | |||||||||||||
Total
|
$ | 4,231 | $ | 927 | $ | 323 | $ | 5,481 |
December 31, 2010
|
||||||||||||||||
30-59 | 60-89 |
Greater Than
|
||||||||||||||
Days
|
Days
|
90 Days
|
Total
|
|||||||||||||
(In Thousands)
|
Past Due
|
Past Due
|
Past Due
|
Past Due
|
||||||||||||
Primary Residential Mortgage
|
$ | 3,490 | $ | 162 | $ | - | $ | 3,652 | ||||||||
Junior Lien Loan on Residence
|
- | - | - | - | ||||||||||||
Multifamily Property
|
- | - | 361 | 361 | ||||||||||||
Owner-Occupied Commercial
|
||||||||||||||||
Real Estate
|
820 | 305 | 1,125 | |||||||||||||
Investment Commercial
|
||||||||||||||||
Real Estate
|
728 | 728 | ||||||||||||||
Commercial and Industrial
|
274 | - | - | 274 | ||||||||||||
Consumer and Other
|
1 | - | - | 1 | ||||||||||||
Total
|
$ | 5,313 | $ | 162 | $ | 666 | $ | 6,141 |
March 31,
|
Number of
|
December 31,
|
Number of
|
|||||||||||||
(Dollars in Thousands)
|
2011
|
Relationships
|
2010
|
Relationships
|
||||||||||||
Residential Mortgage
|
$ | 1,851 | 6 | $ | 1,425 | 8 | ||||||||||
Commercial Mortgage
|
3,224 | 1 | 5,152 | 4 | ||||||||||||
Commercial Loans
|
564 | 3 | 580 | 3 | ||||||||||||
Total
|
$ | 5,639 | 10 | $ | 7,157 | 15 |
Special
|
||||||||||||||||
(In Thousands)
|
Pass
|
Mention
|
Substandard
|
Doubtful
|
||||||||||||
Primary Residential Mortgage
|
$ | 433,779 | $ | 6,275 | $ | 4,392 | $ | - | ||||||||
Home Equity Lines of Credit
|
45,090 | - | 422 | - | ||||||||||||
Junior Lien Loan on Residence
|
13,428 | 96 | 525 | - | ||||||||||||
Multifamily Property
|
66,249 | 165 | 1,049 | - | ||||||||||||
Owner-Occupied Commercial
|
||||||||||||||||
Real Estate
|
81,483 | 6,420 | 23,000 | - | ||||||||||||
Investment Commercial
|
||||||||||||||||
Real Estate
|
178,000 | 12,505 | 19,451 | - | ||||||||||||
Commercial and Industrial
|
22,542 | 1,811 | 2,347 | - | ||||||||||||
Commercial Construction
|
13,224 | 4,469 | - | - | ||||||||||||
Consumer and Other Loans
|
13,577 | - | - | - | ||||||||||||
Total
|
$ | 867,372 | $ | 31,741 | $ | 51,186 | $ | - |
Special
|
||||||||||||||||
(In Thousands)
|
Pass
|
Mention
|
Substandard
|
Doubtful
|
||||||||||||
Primary Residential Mortgage
|
$ | 422,972 | $ | 5,495 | $ | 4,578 | $ | - | ||||||||
Home Equity Lines of Credit
|
45,730 | - | 85 | - | ||||||||||||
Junior Lien Loan on Residence
|
14,877 | 104 | 537 | - | ||||||||||||
Multifamily Property
|
39,709 | 166 | 1,142 | - | ||||||||||||
Owner-Occupied Commercial
|
||||||||||||||||
Real Estate
|
89,136 | 14,722 | 13,827 | - | ||||||||||||
Investment Commercial
|
||||||||||||||||
Real Estate
|
187,201 | 14,468 | 13,923 | - | ||||||||||||
Commercial and Industrial
|
23,284 | 1,864 | 2,630 | - | ||||||||||||
Commercial Construction
|
20,149 | - | 5,225 | - | ||||||||||||
Consumer and Other Loans
|
10,673 | - | - | - | ||||||||||||
Total
|
$ | 853,731 | $ | 36,819 | $ | 41,947 | $ | - |
March 31, 2011
|
||||||||||||||||
Primary
|
Junior Lien
|
|||||||||||||||
Residential
|
Home Equity
|
Loan on
|
||||||||||||||
(In Thousands)
|
Mortgage
|
Lines of Credit
|
Residence
|
Other Consumer
|
||||||||||||
Performing
|
$ | 430,177 | $ | 45,486 | $ | 10,211 | $ | 4,204 | ||||||||
Non-performing
|
4,555 | 26 | 525 | 1 | ||||||||||||
Total
|
$ | 434,732 | $ | 45,512 | $ | 10,736 | $ | 4,205 |
December 31, 2010
|
||||||||||||||||
Primary
|
Junior Lien
|
|||||||||||||||
Residential
|
Home Equity
|
Loan on
|
||||||||||||||
(In Thousands)
|
Mortgage
|
Lines of Credit
|
Residence
|
Other Consumer
|
||||||||||||
Performing
|
$ | 421,195 | $ | 45,730 | $ | 12,032 | $ | 4,393 | ||||||||
Non-performing
|
4,578 | 85 | 138 | - | ||||||||||||
Total
|
$ | 425,773 | $ | 45,815 | $ | 12,170 | $ | 4,393 |
March 31,
|
Number of
|
December 31,
|
Number of
|
|||||||||||||
(Dollars in thousands)
|
2010
|
Relationships
|
2010
|
Relationships
|
||||||||||||
Residential Mortgage
|
$ | 4,555 | 13 | $ | 4,578 | 12 | ||||||||||
Commercial Mortgage
|
13,150 | 14 | 7,005 | 10 | ||||||||||||
Commercial Loans
|
1,640 | 5 | 1,750 | 4 | ||||||||||||
Construction Loans
|
- | - | 5,225 | 2 | ||||||||||||
Home Equity Lines of Credit
|
125 | 1 | 85 | 1 | ||||||||||||
Consumer Loans
|
26 | 1 | 137 | 1 | ||||||||||||
Total
|
$ | 19,496 | 34 | $ | 18,780 | 30 |
March 31,
|
December 31,
|
September 30,
|
June 30,
|
March 31,
|
||||||||||||||||
2011
|
2010
|
2010
|
2010
|
2010
|
||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning of period
|
$ | 14,282 | $ | 14,025 | $ | 13,856 | $ | 13,720 | $ | 13,192 | ||||||||||
Provision for loan losses
|
2,000 | 2,850 | 2,000 | 2,750 | 2,400 | |||||||||||||||
Charge-offs, net
|
(1,896 | ) | (2,593 | ) | (1,831 | ) | (2,614 | ) | (1,872 | ) | ||||||||||
End of period
|
$ | 14,386 | $ | 14,282 | $ | 14,025 | $ | 13,856 | $ | 13,720 | ||||||||||
Allowance for loan losses as a %
|
||||||||||||||||||||
of total loans
|
1.51 | % | 1.53 | % | 1.49 | % | 1.44 | % | 1.41 | % | ||||||||||
Allowance for loan losses as a %
|
||||||||||||||||||||
of nonperforming loans
|
73.79 | % | 76.05 | % | 78.02 | % | 65.68 | % | 106.87 | % |
December 31,
|
March 31,
|
|||||||||||||||||||
2010
|
2011
|
|||||||||||||||||||
Ending
|
Ending
|
|||||||||||||||||||
(In Thousands)
|
ALLL
|
Charge-Offs
|
Recoveries
|
Provision
|
ALLL
|
|||||||||||||||
Primary
|
||||||||||||||||||||
Residential
|
||||||||||||||||||||
Mortgage
|
$ | 1,502 | $ | 173 | $ | - | $ | 244 | $ | 1,573 | ||||||||||
Home Equity Lines
|
||||||||||||||||||||
of Credit
|
160 | 60 | - | 74 | 174 | |||||||||||||||
Junior Lien Loan
|
||||||||||||||||||||
On Residence
|
228 | 12 | - | (8 | ) | 208 | ||||||||||||||
Multifamily
|
||||||||||||||||||||
Property
|
303 | 84 | 8 | 140 | 367 | |||||||||||||||
Owner-Occupied
|
||||||||||||||||||||
Commercial
|
||||||||||||||||||||
Real Estate
|
2,777 | - | - | 610 | 3,387 | |||||||||||||||
Investment Commercial
|
||||||||||||||||||||
Real Estate
|
4,759 | 1,014 | - | 967 | 4,712 | |||||||||||||||
Commercial and
|
||||||||||||||||||||
Industrial
|
2,719 | 67 | 2 | (203 | ) | 2,451 | ||||||||||||||
Commercial
|
||||||||||||||||||||
Construction
|
1,246 | 500 | 11 | 146 | 903 | |||||||||||||||
Consumer and
|
||||||||||||||||||||
Other
|
66 | 7 | - | 31 | 90 | |||||||||||||||
Unallocated
|
522 | - | - | (1 | ) | 521 | ||||||||||||||
Total ALLL
|
$ | 14,282 | $ | 1,917 | $ | 21 | $ | 2,000 | $ | 14,386 |
5.
|
FEDERAL HOME LOAN BANK ADVANCES AND OTHER BORROWINGS
|
(In thousands)
|
||||
2011
|
3,336 | |||
2012
|
5,462 | |||
2013
|
218 | |||
2014
|
- | |||
2015
|
3,000 | |||
Over 5 years
|
12,000 | |||
Total
|
$ | 24,016 |
6.
|
BUSINESS SEGMENTS
|
Three Months Ended March 31, 2011
|
||||||||||||
(in thousands)
|
PGB Trust
|
|||||||||||
Banking
|
& Investments
|
Total
|
||||||||||
Net interest income
|
$ | 11,326 | $ | 895 | $ | 12,221 | ||||||
Noninterest income
|
1,385 | 2,784 | 4,169 | |||||||||
Total income
|
12,711 | 3,679 | 16,390 | |||||||||
Provision for loan losses
|
2,000 | - | 2,000 | |||||||||
Salaries and benefits
|
4,765 | 1,208 | 5,973 | |||||||||
Premises and equipment expense
|
2,146 | 176 | 2,322 | |||||||||
Other noninterest expense
|
1,798 | 1,150 | 2,948 | |||||||||
Total noninterest expense
|
10,709 | 2,534 | 13,243 | |||||||||
Income before income tax expense
|
2,002 | 1,145 | 3,147 | |||||||||
Income tax expense
|
634 | 372 | 1,006 | |||||||||
Net income
|
$ | 1,368 | $ | 773 | $ | 2,141 | ||||||
Total assets at period end
|
$ | 1,519,383 | $ | 1,335 | $ | 1,520,718 |
Three Months Ended March 31, 2010
|
||||||||||||
(in thousands)
|
PGB Trust
|
|||||||||||
Banking
|
& Investments
|
Total
|
||||||||||
Net interest income
|
$ | 11,569 | $ | 979 | $ | 12,548 | ||||||
Noninterest income
|
1,066 | 2,406 | 3,472 | |||||||||
Total income
|
12,635 | 3,385 | 16,020 | |||||||||
Provision for loan losses
|
2,400 | - | 2,400 | |||||||||
Salaries and benefits
|
4,406 | 1,303 | 5,709 | |||||||||
Premises and equipment expense
|
2,185 | 187 | 2,372 | |||||||||
Other noninterest expense
|
1,553 | 896 | 2,449 | |||||||||
Total noninterest expense
|
10,544 | 2,386 | 12,930 | |||||||||
Income before income tax expense
|
2,091 | 999 | 3,090 | |||||||||
Income tax expense
|
653 | 312 | 965 | |||||||||
Net income
|
$ | 1,438 | $ | 687 | $ | 2,125 | ||||||
Total assets at period end
|
$ | 1,481,973 | $ | 1,338 | $ | 1,483,311 |
7.
|
FAIR VALUE
|
Fair Value Measurements Using
|
||||||||||||||||
Quoted
|
||||||||||||||||
Prices in
|
||||||||||||||||
Active
|
||||||||||||||||
Markets
|
Significant
|
|||||||||||||||
For
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||
March 31,
|
||||||||||||||||
(In Thousands)
|
2011
|
|||||||||||||||
Assets:
|
||||||||||||||||
Available for Sale:
|
||||||||||||||||
U.S. Treasury and U.S.
|
||||||||||||||||
Government-Sponsored
|
||||||||||||||||
Entities
|
$ | 16,246 | $ | - | $ | 16,246 | $ | - | ||||||||
Mortgage-Backed Securities -
|
||||||||||||||||
Residential
|
232,193 | - | 232,193 | - | ||||||||||||
State and Political Subdivisions
|
17,799 | - | 17,799 | - | ||||||||||||
Other Securities
|
3,221 | - | 3,221 | - | ||||||||||||
CRA Investment Fund
|
1,493 | - | 1,493 | - | ||||||||||||
Marketable Equity Securities
|
735 | 735 | - | - | ||||||||||||
Total
|
$ | 271,687 | $ | 735 | $ | 270,952 | $ | - | ||||||||
December 31,
|
||||||||||||||||
2010 | ||||||||||||||||
Assets:
|
||||||||||||||||
Available for Sale:
|
||||||||||||||||
U.S. Treasury and U.S.
|
||||||||||||||||
Government-Sponsored
|
||||||||||||||||
Entities
|
$ | 51,135 | $ | - | $ | 51,135 | $ | - | ||||||||
Mortgage-Backed Securities -
|
||||||||||||||||
Residential
|
202,090 | - | 202,090 | - | ||||||||||||
State and Political Subdivisions
|
16,613 | - | 16,613 | - | ||||||||||||
Other Securities
|
3,001 | - | 3,001 | - | ||||||||||||
CRA Investment Fund
|
1,499 | - | 1,499 | - | ||||||||||||
Marketable Equity Securities
|
738 | 738 | - | - | ||||||||||||
Total
|
$ | 275,076 | $ | 738 | $ | 274,338 | $ | - |
Fair Value Measurements Using
|
||||||||||||||||
Quoted
|
||||||||||||||||
Prices in
|
||||||||||||||||
Active
|
||||||||||||||||
Markets
|
Significant
|
|||||||||||||||
For
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||
March 31,
|
||||||||||||||||
(In Thousands)
|
2011
|
|||||||||||||||
Assets:
|
||||||||||||||||
Impaired Loans:
|
||||||||||||||||
Commercial Mortgage
|
$ | 16,481 | $ | - | $ | - | $ | 16,481 | ||||||||
Commercial
|
1,688 | - | - | 1,688 | ||||||||||||
December 31,
|
||||||||||||||||
2010 | ||||||||||||||||
Assets:
|
||||||||||||||||
Impaired Loans:
|
||||||||||||||||
Commercial Mortgage
|
$ | 10,452 | $ | - | $ | - | $ | 10,452 | ||||||||
Commercial
|
3,346 | - | - | 3,346 |
March 31, 2011
|
December 31, 2010
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
(In Thousands)
|
Amount
|
Value
|
Amount
|
Value
|
||||||||||||
Financial Assets:
|
||||||||||||||||
Cash and Cash Equivalents
|
$ | 49,682 | $ | 49,682 | $ | 62,687 | $ | 62,687 | ||||||||
Investment Securities, Held to Maturity
|
151,993 | 150,196 | 140,277 | 138,438 | ||||||||||||
Securities Available for Sale
|
271,687 | 271,687 | 275,076 | 275,076 | ||||||||||||
FHLB and FRB Stock
|
4,619 | N/A | 4,624 | N/A | ||||||||||||
Loans Held for Sale
|
1,168 | 1,168 | - | - | ||||||||||||
Loans, Net of Allowance for
|
||||||||||||||||
Loan Losses
|
935,913 | 928,974 | 918,215 | 917,257 | ||||||||||||
Accrued Interest Receivable
|
4,587 | 4,587 | 4,231 | 4,231 | ||||||||||||
Financial Liabilities:
|
||||||||||||||||
Deposits
|
1,363,650 | 1,365,562 | 1,351,546 | 1,353,834 | ||||||||||||
Federal Home Loan Bank Advances
|
24,016 | 25,192 | 24,126 | 25,330 | ||||||||||||
Accrued Interest Payable
|
607 | 607 | 716 | 716 |
8.
|
PREFERRED STOCK
|
|
·
|
a continued or unexpected decline in the economy, in particular in our New Jersey market area;
|
|
·
|
declines in value in our investment portfolio;
|
|
·
|
higher than expected increases in our allowance for loan losses;
|
|
·
|
higher than expected increases in loan losses or in the level of nonperforming loans;
|
|
·
|
unexpected changes in interest rates;
|
|
·
|
inability to successfully grow our business;
|
|
·
|
inability to manage our growth;
|
|
·
|
a continued or unexpected 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 and related regulations) subject us to additional regulatory oversight which may result in increased compliance costs;
|
|
·
|
higher than expected FDIC insurance premiums;
|
|
·
|
lack of liquidity to fund our various cash obligations;
|
|
·
|
repurchase of our preferred shares issued under the Treasury’s Capital Purchase Program which will impact net income available to our common shareholders and our earnings per share;
|
|
·
|
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; and
|
|
·
|
other unexpected material adverse changes in our operations or earnings.
|
March 31, 2011
|
March 31, 2010
|
|||||||||||||||||||||||
Average
|
Income/
|
Average
|
Income/
|
|||||||||||||||||||||
Balance
|
Expense
|
Yield
|
Balance
|
Expense
|
Yield
|
|||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Interest-earnings assets:
|
||||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||||
Taxable (1)
|
$ | 384,083 | $ | 2,269 | 2.36 | % | $ | 325,379 | $ | 2,511 | 3.09 | % | ||||||||||||
Tax-exempt (1) (2)
|
35,587 | 345 | 3.88 | 37,800 | 450 | 4.76 | ||||||||||||||||||
Loans held for sale
|
733 | 16 | 8.65 | N/A | N/A | N/A | ||||||||||||||||||
Loans (2) (3)
|
937,073 | 11,747 | 5.01 | 978,470 | 12,994 | 5.31 | ||||||||||||||||||
Federal funds sold
|
100 | - | 0.28 | 201 | - | 0.20 | ||||||||||||||||||
Interest-earning deposits
|
41,927 | 28 | 0.27 | 44,591 | 24 | 0.21 | ||||||||||||||||||
Total interest-earning assets
|
1,399,503 | $ | 14,405 | 4.12 | % | 1,386,441 | $ | 15,979 | 4.61 | % | ||||||||||||||
Noninterest -earning assets:
|
||||||||||||||||||||||||
Cash and due from banks
|
7,877 | 8,334 | ||||||||||||||||||||||
Allowance for loan losses
|
(14,934 | ) | (13,773 | ) | ||||||||||||||||||||
Premises and equipment
|
33,640 | 27,992 | ||||||||||||||||||||||
Other assets
|
71,404 | 68,845 | ||||||||||||||||||||||
Total noninterest-earning assets
|
97,987 | 91,398 | ||||||||||||||||||||||
Total assets
|
$ | 1,497,490 | $ | 1,477,839 | ||||||||||||||||||||
LIABILITIES:
|
||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
Checking
|
$ | 298,003 | $ | 303 | 0.41 | % | $ | 238,285 | $ | 407 | 0.68 | % | ||||||||||||
Money markets
|
522,473 | 623 | 0.48 | 494,670 | 1,118 | 0.90 | ||||||||||||||||||
Savings
|
82,168 | 53 | 0.26 | 75,186 | 77 | 0.41 | ||||||||||||||||||
Certificates of deposit
|
219,359 | 775 | 1.41 | 305,654 | 1,317 | 1.72 | ||||||||||||||||||
Total interest-bearing deposits
|
1,122,003 | 1,754 | 0.63 | 1,113,795 | 2,919 | 1.05 | ||||||||||||||||||
Borrowings
|
24,639 | 203 | 3.30 | 36,290 | 324 | 3.57 | ||||||||||||||||||
Capital lease obligation
|
6,334 | 79 | 4.98 | - | - | - | ||||||||||||||||||
Total interest-bearing liabilities
|
1,152,976 | 2,036 | 0.71 | 1,150,085 | 3,243 | 1.13 | ||||||||||||||||||
Noninterest bearing liabilities
|
||||||||||||||||||||||||
Demand deposits
|
222,415 | 208,044 | ||||||||||||||||||||||
Accrued expenses and
|
||||||||||||||||||||||||
other liabilities
|
6,065 | 6,087 | ||||||||||||||||||||||
Total noninterest-bearing
|
||||||||||||||||||||||||
liabilities
|
228,480 | 214,131 | ||||||||||||||||||||||
Shareholders’ equity
|
116,034 | 113,623 | ||||||||||||||||||||||
Total liabilities and
|
||||||||||||||||||||||||
shareholders’ equity
|
$ | 1,497,490 | $ | 1,477,839 | ||||||||||||||||||||
Net Interest income
|
||||||||||||||||||||||||
(tax-equivalent basis)
|
12,369 | 12,736 | ||||||||||||||||||||||
Net interest spread
|
3.41 | % | 3.48 | % | ||||||||||||||||||||
Net interest margin (4)
|
3.54 | % | 3.67 | % | ||||||||||||||||||||
Tax equivalent adjustment
|
(148 | ) | $ | (188 | ) | |||||||||||||||||||
Net interest income
|
$ | 12,221 | $ | 12,548 |
|
(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 nonaccrual loans.
|
|
(4)
|
Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
|
Three Months Ended
|
||||||||
March 31,
|
||||||||
(In thousands)
|
2011
|
2010
|
||||||
Salaries and employee benefits
|
$ | 5,973 | $ | 5,709 | ||||
Premises and equipment
|
2,322 | 2,372 | ||||||
FDIC assessment
|
604 | 586 | ||||||
Trust department
|
505 | 196 | ||||||
Professional and legal fees
|
298 | 323 | ||||||
Telephone
|
209 | 136 | ||||||
Advertising
|
197 | 167 | ||||||
Postage
|
117 | 109 | ||||||
Stationery and supplies
|
103 | 92 | ||||||
Other expense
|
915 | 840 | ||||||
Total other expense
|
$ | 11,243 | $ | 10,530 |
March 31,
|
December 31,
|
September 31,
|
June 30,
|
March 31,
|
|||||||
2011
|
2010
|
2010
|
2010
|
2010
|
|||||||
Loans past due over 90 days
|
|||||||||||
and still accruing
|
$
|
323
|
$
|
666
|
$
|
442
|
$
|
736
|
$
|
638
|
|
Nonaccrual loans (A)
|
19,173
|
18,114
|
17,535
|
20,361
|
12,200
|
||||||
Other real estate owned
|
3,000
|
4,000
|
1,000
|
210
|
40
|
||||||
Total nonperforming assets
|
$
|
22,496
|
$
|
22,780
|
$
|
18,977
|
$
|
21,307
|
$
|
12,878
|
|
Troubled debt restructured loans (A)
|
$
|
5,639
|
$
|
7,157
|
$
|
10,639
|
$
|
10,613
|
$
|
11,817
|
|
Loans past due 30 through 89 days
|
|||||||||||
and still accruing
|
$
|
5,419
|
$
|
5,475
|
$
|
9,487
|
$
|
9,444
|
$
|
10,056
|
|
Substandard loans (B)
|
$
|
51,186
|
$
|
41,979
|
$
|
36,521
|
$
|
48,722
|
$
|
49,256
|
|
Impaired Loans (B)
|
$
|
26,056
|
$
|
28,397
|
$
|
36,521
|
$
|
48,722
|
$
|
49,256
|
|
Nonperforming loans as a % of
|
|||||||||||
total loans
|
2.05%
|
2.01%
|
1.90%
|
2.20%
|
1.32%
|
||||||
Nonperforming assets as a % of
|
|||||||||||
total assets
|
1.48%
|
1.51%
|
1.28%
|
1.44%
|
0.87%
|
||||||
Nonperforming assets as a % of
|
|||||||||||
total loans plus other real
|
|||||||||||
estate owned
|
2.36%
|
2.43%
|
2.01%
|
2.22%
|
1.33%
|
3
|
Articles of Incorporation and By-Laws:
|
|
A. Certificate of Incorporation of the Registrant, as amended, as incorporated herein by reference to the Registrant’s Form 10-Q Quarterly Report filed on November 9, 2009.
|
||
B. By-Laws of the Registrant, incorporated herein by reference to the Registrant’s Current Report on Form 8-K filed on April 23, 2007.
|
||
31.1
|
Certification of Frank A. Kissel, Chief Executive Officer of the Corporation, pursuant to Securities Exchange Act Rule 13a-14(a).
|
|
31.2
|
Certification of Jeffrey J. Carfora, Chief Financial Officer of the Corporation, pursuant to Securities Exchange Act Rule 13a-14(a).
|
|
32
|
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act Of 2002, signed by Frank A. Kissel, Chief Executive Officer of the Corporation, and Jeffrey J. Carfora, Chief Financial Officer of the Corporation.
|
PEAPACK-GLADSTONE FINANCIAL CORPORATION
|
|
(Registrant)
|
|
DATE: May 9, 2011
|
By: /s/ Frank A. Kissel
|
Frank A. Kissel
|
|
Chairman of the Board and Chief Executive Officer
|
|
DATE: May 9, 2011
|
By: /s/ Jeffrey J. Carfora
|
Jeffrey J. Carfora
|
|
Executive Vice President and Chief Financial Officer and
|
|
Chief Accounting Officer
|
Number
|
Description
|
|
3
|
Articles of Incorporation and By-Laws:
|
|
A. Certificate of Incorporation of the Registrant, as amended, incorporated herein by reference to the Registrant’s Quarterly Report on Form 10Q as filed on November 9, 2009.
|
||
B. By-Laws of the Registrant, incorporated herein by reference to the Registrant’s Current Report on Form 8-K filed on April 23, 2007.
|
||
|
||
31.1
|
Certification of Frank A. Kissel, Chief Executive Officer of the Corporation, pursuant to Securities Exchange Act Rule 13a-14(a).
|
|
31.2
|
Certification of Jeffrey J. Carfora, Chief Financial Officer of the Corporation, pursuant to Securities Exchange Act Rule 13a-14(a).
|
|
32
|
Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act Of 2002, signed by Frank A. Kissel, Chief Executive Officer of the Corporation, and Jeffrey J. Carfora, Chief Financial Officer of the Corporation.
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Peapack-Gladstone Financial Corporation;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of director (or persons performing the equivalent functions):
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|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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Date: May 9, 2011
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By:
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/s/ Frank A. Kissel
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Name:
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Frank A. Kissel
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|
Title:
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Chairman of the Board and
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|
Chief Executive Officer
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1.
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I have reviewed this Quarterly Report on Form 10-Q of Peapack-Gladstone Financial Corporation;
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2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of director (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 9, 2011
|
By:
|
/s/ Jeffrey J. Carfora
|
Name:
|
Jeffrey J. Carfora
|
|
Title:
|
Executive Vice President and
|
|
Chief Financial Officer and
|
||
Chief Accounting Officer
|
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.
|
/s/ Frank A. Kissel
|
||
Name:
|
Frank A. Kissel
|
|
Title:
|
Chairman of the Board and
|
|
Chief Executive Officer
|
||
Date:
|
May 9, 2011
|
/s/ Jeffrey J. Carfora
|
||
Name:
|
Jeffrey J. Carfora
|
|
Title:
|
Executive Vice President and
|
|
Chief Financial Officer and Chief Accounting Officer
|
||
Date:
|
May 9, 2011
|