-----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, DfHAY9tgV9H6+Lr2/z1H4wOg3hkGBAm3B/xcqJxEvIXHBaxlnXezLpVPsUh+YDiQ ZYGudusym76xYhW2TaZ9Xw== 0000950110-98-001273.txt : 19981113 0000950110-98-001273.hdr.sgml : 19981113 ACCESSION NUMBER: 0000950110-98-001273 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PEAPACK GLADSTONE FINANCIAL CORP CENTRAL INDEX KEY: 0001050743 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 223537895 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-23537 FILM NUMBER: 98745012 BUSINESS ADDRESS: STREET 1: PEAPACK GLADSTONE FINACIAL CORP STREET 2: 158 ROUTE 206 NORTH CITY: GLADSTONE STATE: NJ ZIP: 07934 BUSINESS PHONE: 9082340700 MAIL ADDRESS: STREET 1: PEAPACK GLADSTONE FINANCIAL CORP STREET 2: 158 ROUTE 206 NORTH CITY: GLADSTONE STATE: NJ ZIP: 07934 10-Q 1 FORM 10-Q ================================================================================ FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED SEPTEMBER 30, 1998 ---------- PEAPACK-GLADSTONE FINANCIAL CORPORATION ------------------------------------------------------ (Exact Name of registrant as specified in its charter) NEW JERSEY 22-3537895 ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 158 ROUTE 206 NORTH, GLADSTONE, NEW JERSEY 07934 - ------------------------------------------ ---------- (Address of principal executive offices) (Zip Code) Registrant's Telephone Number (908) 234-0700 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- Number of shares of Common stock outstanding as of September 30, 1998: 2,320,139 ================================================================================ PEAPACK-GLADSTONE FINANCIAL CORPORATION PART I. FINANCIAL INFORMATION Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the December 31, 1997 Annual Report on Form 10-K for Peapack-Gladstone Financial Corporation (the "Corporation"). The Corporation considers that all adjustments (all of which are normal recurring accruals) necessary for a fair statement of the financial position and results of operations for these periods have been made; however, results for such interim periods are subject to year-end adjustments. Results for such interim periods are not necessarily indicative of results for a full year. 2 PEAPACK-GLADSTONE FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF CONDITION (Dollars in thousands) (Unaudited) September 30, December 31, 1998 1997 ------------- ------------ ASSETS Cash and due from banks ............................ $ 10.832 $ 17,740 Federal funds sold ................................. 8,900 15,500 --------- --------- Total cash and cash equivalents ............... 19,732 33,240 Investment Securities:(approximate market value $49,802 in 1998 and $54,452 in 1997) U.S. Treasury and Government agencies .............. 39,824 44,557 State and political subdivisions ................... 9,133 9,421 --------- --------- Total Investment Securities ................... 48,957 53,978 Securities Available for Sale:(amortized cost $90,958 in 1998 and $90,817 in 1997) U.S. Treasury and Government agencies .............. 83,859 86,799 Other securities available for sale ................ 9,708 4,781 --------- --------- Total Securities Available for Sale ........... 93,567 91,580 Loans: Loans secured by real estate ..................... 182,038 149,684 Other loans ...................................... 23,262 24,690 --------- --------- Total loans ................................... 205,300 174,374 Less: Allowance for loan losses .............. 2,097 1,893 --------- --------- Net loans ....................................... 203,203 172,481 Premises and equipment ............................. 8,974 8,595 Other real estate owned ............................ 0 340 Accrued interest receivable ........................ 2,961 3,006 Other assets ....................................... 247 445 ========= ========= TOTAL ASSETS ................................. $ 377,641 $ 363,665 ========= ========= LIABILITIES Deposits: Noninterest-bearing demand deposits .............. $ 73,208 $ 74,712 Interest-bearing deposits: Checking ...................................... 66,178 70,745 Savings ....................................... 70,329 70,419 Money market accounts ......................... 23,056 24,624 Certificates of deposit over $100,000 ......... 33,953 18,243 Certificates of deposit less than $100,000 .... 71,094 69,730 --------- --------- Total deposits ..................................... 337,818 328,473 Accrued expenses and other liabilities ............. 2,662 1,553 ========= ========= TOTAL LIABILITIES ............................. 340,480 330,026 ========= ========= STOCKHOLDERS' EQUITY Common stock (no par value; stated value $1-2/3 per share; authorized 10,000,000 shares; issued 2,335,238 shares.) ................ 3,892 3,892 Surplus ............................................ 6,225 6,218 Treasury Stock at cost, 15,099 shares in 1998 and 11,178 shares in 1997 ................ (812) (367) Retained Earnings .................................. 26,718 23,420 Accumulated other comprehensive income-- net unrealized gains on securities available for sale (net of income taxes) ......... 1,138 476 --------- --------- TOTAL STOCKHOLDERS' EQUITY ................... 37,161 33,639 --------- --------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY ..... $ 377,641 $ 363,665 ========= ========= See accompanying notes to consolidated financial statements. 3 PEAPACK-GLADSTONE FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except share data) (Unaudited)
Nine months ended Three months ended September 30, September 30, --------------------------- --------------------------- 1998 1997 1998 1997 ---------- ---------- ---------- ---------- INTEREST INCOME Interest and fees on loans ............................... $ 11,339 $ 9,528 $ 3,995 $ 3,282 Interest on investment securities: Taxable ............................................. 2,016 1,929 650 575 Tax-exempt .......................................... 329 404 113 133 Interest on securities available for sale: Taxable ....... 4,115 4,385 1,346 1,573 Dividends ................................................ 3 0 3 0 Interest on federal funds sold ........................... 648 668 266 201 ---------- ---------- ---------- ---------- Total interest income .................................... 18,450 16,914 6,373 5,764 INTEREST EXPENSE Interest on savings account deposits ..................... 2,434 2,580 821 847 Interest on certificates of deposit over $100,000 ........ 996 702 419 244 Interest on other time deposits .......................... 2,807 2,391 955 814 ---------- ---------- ---------- ---------- Total interest expense ................................... 6,237 5,673 2,195 1,905 ---------- ---------- ---------- ---------- NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES ........................... 12,213 11,241 4,178 3,859 Provision for loan losses ................................ 273 300 91 100 ---------- ---------- ---------- ---------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES ........................... 11,940 10,941 4,087 3,759 ---------- ---------- ---------- ---------- OTHER INCOME Service charges and fees for other services .............. 3,063 2,423 910 706 Securities gains ......................................... 118 24 5 9 Other income ............................................. 78 79 24 29 ---------- ---------- ---------- ---------- Total other income .................................. 3,259 2,526 939 744 OTHER EXPENSES Salaries and employee benefits ........................... 4,773 4,540 1,569 1,523 Premises and equipment ................................... 1,725 1,668 612 532 Other expense ............................................ 2,201 1,835 731 534 ---------- ---------- ---------- ---------- Total other expenses ..................................... 8,699 8,043 2,912 2,589 ---------- ---------- ---------- ---------- INCOME BEFORE INCOME TAX EXPENSE ......................... 6,500 5,424 2,114 1,914 Income tax expense ....................................... 2,398 1,965 798 718 ========== ========== ========== ========== NET INCOME .......................................... $ 4,102 $ 3,459 $ 1,316 $ 1,196 ========== ========== ========== ========== EARNINGS PER SHARE (Reflects a 2:1 stock split in December, 1997.) Basic .................................................... 1.76 1.47 0.56 0.50 Diluted .................................................. 1.71 1.46 0.55 0.50 Average basic shares outstanding ......................... 2,326,791 2,353,090 2,323,656 2,371,345 Average diluted shares outstanding ....................... 2,403,624 2,376,552 2,405,218 2,403,654 See accompanying notes to consolidated financial statements
4 PEAPACK-GLADSTONE FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Dollars in thousands) (Unaudited) Nine Months Ended September 30, --------------------- 1998 1997 -------- -------- Balance, Beginning of Period ......................... $ 33,639 $ 30,208 Comprehensive income: Net Income ...................................... 4,102 3,459 Change in net unrealized gains on securities available for sale .......................... 662 77 -------- -------- Total Comprehensive income ...................... 4,764 3,536 Common Stock Options Exercised ....................... (52) (13) Treasury Stock Transactions, net ..................... (389) (150) Cash Dividends Declared .............................. (801) (722) -------- -------- Balance, September 30, ............................... $ 37,161 $ 32,859 ======== ======== See accompanying notes to consolidated financial statements. 5 PEAPACK-GLADSTONE FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (Unaudited)
Nine Months Ended September 30, ---------------------- 1998 1997 -------- -------- OPERATING ACTIVITIES: Net Income ................................................... $ 4,102 $ 3,459 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation ................................................. 593 520 Amortization of premium and accretion of discount on securities, net ............................... 48 37 Provision for loan losses .................................... 273 300 Provision for deferred taxes ................................. (70) (42) Gains on securities .......................................... (118) (24) Decrease (increase) in interest receivable ................... 45 (266) Increase in other assets ..................................... (113) 182 Increase in other liabilities ................................ 1,109 233 -------- -------- NET CASH PROVIDED BY OPERATING ACTIVITIES ................. 5,869 4,399 -------- -------- INVESTING ACTIVITIES: Proceeds from maturities of investment securities ............ 8,180 7,971 Proceeds from maturities of securities available for sale .................................................. 10,000 7,500 Proceeds from calls of investment securities ................. 7,000 1,000 Proceeds from sales and calls of securities available for sale ........................................ 27,020 4,340 Purchase of investment securities ............................ (10,174) (7,174) Purchase of securities available for sale .................... (32,269) (20,975) Net (increase) decrease in short term investments ............ (5,610) 798 Net increase in loans ........................................ (30,995) (11,712) Net decrease in other real estate ............................ 340 352 Purchase of premises and equipment ........................... (972) (432) -------- -------- NET CASH USED IN INVESTING ACTIVITIES ..................... (27,480) (18,332) -------- -------- FINANCING ACTIVITIES: Net increase in deposits ..................................... 9,345 16,078 Dividends paid ............................................... (801) (722) Exercise of stock options .................................... (52) (13) Treasury stock transactions, net ............................. (389) (150) -------- -------- NET CASH USED IN FINANCING ACTIVITIES ..................... 8,103 15,193 -------- -------- Net (decrease) increase in cash and cash equivalents ...... (13,508) 1,260 -------- -------- Cash and cash equivalents at beginning of period ............. 33,240 26,762 ======== ======== Cash and cash equivalents at end of period ................... $ 19,732 $ 28,022 ======== ======== Supplemental disclosures of cash flow information: Cash paid during the year for: Interest on deposits ...................................... $ 6,182 $ 5,893 Income taxes .............................................. 2,398 1,795 Noncash investing activities: Transfer of loans to Other Real Estate .................... 0 248 See accompanying notes to consolidated financial statements.
6 PEAPACK-GLADSTONE FINANCIAL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. PRINCIPLES OF CONSOLIDATION The consolidated financial statements of Peapack-Gladstone Financial Corporation are prepared on the accrual basis and include the accounts of the Corporation and its wholly-owned subsidiary, the Peapack-Gladstone Bank. All significant intercompany balances and transactions have been eliminated from the accompanying consolidated financial statements. 2. ALLOWANCE FOR LOAN LOSSES The allowance for loan losses is maintained at a level that management considers adequate to reflect the risk of future losses inherent in the Corporation's loan portfolio. In its evaluation of the adequacy of the allowance for loan losses, management considers past loan loss experience, changes in the composition of non-performing loans, the condition of borrowers facing financial pressure, the relationship of the current level of the allowance to the credit portfolio and to non-performing loans and existing economic conditions. The process of determining the adequacy of the allowance is necessarily judgmental and subject to changes in external conditions. The allowance is increased by provisions charged to expense and reduced by net charge-offs. 3. EARNINGS PER COMMON SHARE - BASIC AND DILUTED Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding. Diluted earnings per share includes any additional common shares as if all potentially dilutive common shares were issued (i.e., stock options). 4. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS During the first quarter of 1998, the Corporation adopted the provisions of Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income" (SFAS 130). SFAS 130 establishes standards for reporting and display of comprehensive income and its components (revenues, expenses, gains and losses) in a full set of general purpose financial statements. This Statement requires that all items that are required to be recognized under accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. This Statement requires that an enterprise (a) classify items of other comprehensive income by their nature in a financial statement and (b) display the accumulated balance of other comprehensive income separately from retained earnings and additional paid-in capital in the equity section of a statement of financial position. In accordance with the provisions of SFAS 130 for interim period reporting, the Corporation's total comprehensive income for the nine months ended September 30, 1998 and 1997 was $4,764,000 and $3,536,000. The difference between the Corporation's net income and total comprehensive income for the three months ended and nine months ended September 30, 1998 and 1997 relates to the change in the net unrealized gains on securities available for sale during the applicable period of time. 5. NEW ACCOUNTING PRONOUNCEMENT In June 1998, the FASB issued SAS No. 133 "Accounting for Derivative Instruments and Hedging Activities." This Statement establishes accounting and reporting standards requiring that every derivative instrument be recorded in the balance sheet, either as an asset, or as a liability, measured at its fair value. The Statement requires that changes in the derivative's fair value shall be recognized in current earnings unless specific hedge accounting criteria are met. Special accounting for qualifying hedges allows a derivative's gains and losses to offset related results on the hedged item in the income statement, and requires that a company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting. SAS No. 133 is effective for fiscal years beginning after June 15, 1999. A company may also implement the Statement as of the beginning of any fiscal quarter after issuance but cannot be applied retroactively. SAS No. 133 must be applied to derivative instruments and certain derivative instruments embedded in hybrid contracts that were issued, acquired or substantively modified after December 31, 1997. The Corporation does not currently have derivative or hedged instruments and management does not anticipate the statement having a material impact on its financial position or results of operations. However, management continues to closely evaluate the use of derivatives to reduce interest rate risk. 7 6. YEAR 2000 COMPLIANCE During fiscal 1998, the Corporation adopted a Year 2000 Compliance Plan (the "Plan") and established a Year 2000 Compliance Committee (the "Committee"). The objectives of the Plan and the Committee are to prepare the Corporation for the new millennium. As recommended by the Federal Financial Institutions Examination Council, the Plan encompasses the following phases: Awareness, Assessment, Renovation, Validation and Implementation. These phases will enable the Corporation to identify risks, develop an action plan, perform adequate testing and complete certification that its processing systems will be Year 2000 ready. Execution of the Plan is currently on target. The Corporation is currently in Phase 4, Validation, for our core processing software. This phase involves testing of changes to hardware and software, accompanied by monitoring and testing with vendors. Concurrently, the Corporation is also addressing some issues related to subsequent phases. Prioritization of the most critical applications has been addressed, along with contract and service agreements. The primary operating software for the Corporation is obtained and maintained by an external provider of software (the "External Provider"). The Corporation has maintained ongoing contact with this vendor so that modification of the software for Year 2000 readiness is a top priority and is expected to be accomplished, though there is no assurance, by December 31, 1998. The Corporation has contacted all other material vendors and suppliers regarding their Year 2000 state of readiness. Each of these third parties has delivered written assurance to the Corporation that they expect to be Year 2000 compliant prior to the Year 2000. The Corporation is in the process of contacting all material customers and non-information technology suppliers (i.e., utility systems, telephone systems and security systems), regarding their Year 2000 state of readiness. The Validation Phase is targeted for completion by June 30, 1999. The Implementation Phase is to certify that systems are Year 2000 ready, along with assurances that any new systems are compliant on a going-forward basis. The Implementation Phase is targeted for completion by September 30, 1999. Costs will be incurred due to the replacement of non-compliant hardware and software. The Corporation does not anticipate that the related overall costs will be material in any single year. In total, the Corporation estimates that its cost for compliance will amount to approximately $150,000 over the two-year period from 1998-1999, of which approximately $75,000 was incurred as of September 30, 1998. No assurance can be given that the Year 2000 Compliance Plan will be completed successfully by the Year 2000, in which event the Corporation could incur significant costs. If the External Provider is unable to resolve the potential problem in time, the Corporation would likely experience significant data processing delays, mistakes or failures. These delays, mistakes or failures could have a significant adverse impact on the financial statements of the Corporation. Successful and timely completion of the Year 2000 project is based on management's best estimates derived from various assumptions of future events, which are inherently uncertain, including the progress and results of the Corporation's External Provider, testing plans, and all vendors, suppliers and customer readiness. 8 MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS: Net income for the nine month period ended September 30, 1998 was $4,102,000, as compared to net income of $3,459,000 in 1997. On a diluted per share basis, the Corporation earned $1.71 and $1.46 during the first nine months of 1998 and 1997, respectively. Higher net interest income and higher other income, offset in part by increased other expenses and higher income taxes were the primary factors contributing to the increase in net income. Net income for the quarter ended September 30, 1998 was $1,316,000, representing a $120,000 increase from the third quarter net income in 1997. Higher net interest income and higher other income contributed to the increase in net income. NET INTEREST INCOME: Net interest income after provision for loan losses for the first nine months of 1998 increased 9% to $11,940,000 from $10,941,000 in 1997. The increase in net interest income was primarily due to increased loan volume, which was funded by increased low cost core deposits. Average loans for the nine month period were $189,652,000, an increase of $34,890,000 or 23% over the previous year. Average interest-earning assets during the first nine months of 1998 were $344,715,000, representing an increase of $31,198,000 or 10% over the previous year. Average interest-bearing liabilities rose to $260,698,000 for the first nine months of 1998 as compared with $247,604,000 during the same period in 1997. The yield on interest-earning assets, including securities, federal funds sold and loans, was lower during the first nine months of 1998 as compared with the first nine months of 1997. This decrease was primarily due to lower rates on the earned investment and loan portfolios in concert with a lower interest rate environment. The rate paid on interest-bearing liabilities increased to 3.20% during the first nine months of 1998 from 3.06% over the previous year. Higher rates paid on Certificates of Deposits were offset by lower rates paid on interest-bearing checking and money market accounts. Contributing to the overall increase in the net interest margin was strong growth in noninterest-bearing demand deposits. Average noninterest-bearing demand deposits increased to $71,208,000, representing a 20% increase over the previous year. During the third quarter of 1998, net interest income was $4,087,000 as compared to $3,759,000 in 1997. The increase in net interest income for the quarter was primarily due to an increase in residential mortgage loan volume, offset in part by higher interest expense. OTHER INCOME: Other income before gains on securities was $3,141,000 and $2,502,000 for the first nine months of 1998 and 1997, respectively. This increase was primarily due to higher trust fees, up $561,000 from 1997. During the third quarter, other income before securities gains was $934,000 as compared to $735,000 a year earlier. Trust Department fees accounted for the majority of this increase, up $177,000 for the period. During the first nine months of 1998, gains on sale of securities amounted to $118,000 as compared to $24,000 a year earlier. OTHER EXPENSES: Other expenses for the first nine months of 1998 increased from $8,043,000 in 1997 to $8,699,000 in 1998. Salary and employee benefit expenses for the first nine months of 1998 increased $233,000 as compared with the same period in 1997. Merit and promotional raises plus several additions to the professional staff contributed to this increase. Other operating expenses increased $366,000 or 20% in the first nine months as compared with the same period in 1997. Higher Trust Department expenses and professional fees accounted for a majority of this increase. During the third quarter of 1998, other expenses increased $323,000 from the same period in 1997, representing an increase of 12%. Higher salary and employee benefit expenses, professional fees and Trust Department expenses accounted for the increase. 9 PROVISION FOR LOAN LOSSES: At September 30, 1998, the allowance for loan losses amounted to $2,097,000 as compared with $1,886,000 a year earlier. Non-performing loans (consisting of all non-accrual loans and loans over 90 days past due and still accruing interest) were $1,182,000 and $1,175,000 at September 30, 1998 and 1997, respectively. A provision of $273,000 and $300,000 for loan losses was recorded for the period ended September 30, 1998 and 1997, respectively. Net charge-offs were $69,000 during the first nine months of 1998 as compared with net charge-offs of $50,000 during the same period in 1997. A provision for loan losses of $91,000 was recorded in the third quarter of 1998, as compared to $100,000 in the third quarter of 1997. Net charge-offs were $48,000 during the third quarter of 1998 as compared to net charge-offs of $6,000 during the third quarter of 1997. A summary of the allowance for loan losses for the nine month period ending September 30, follows: 1998 1997 ------- ------- (In thousands) Balance, January 1, ...................... $ 1,893 $ 1,636 Provision charged to expense ............. 273 300 Loans charged off ........................ (108) (177) Recoveries ............................... 39 127 ------- ------- Balance, September 30 .................... $ 2,097 $ 1,886 ======= ======= CAPITAL RESOURCES: Maintaining a strong capital position is an important goal of the Corporation. At September 30, 1998, total shareholders' equity (including net unrealized gains) was $37,161,000, representing a 13% increase over the same period in 1997. The Federal Reserve Board has adopted risk-based capital guidelines for banks. The minimum guidelines for the ratio of total capital to risk-weighted assets is 8%. At least half of the total capital is to be comprised of common stock, retained earnings, minority interests in the equity accounts of consolidated subsidiaries, non-cumulative preferred stock, less goodwill and certain other intangibles ("Tier 1 Capital"). The remainder may consist of other preferred stock, certain other instruments and a portion of the loan loss allowance. At September 30, 1998, the Bank's Tier 1 Capital and Total Capital ratios were 19.51% and 20.69%, respectively. In addition, the Federal Reserve Board has established minimum leverage ratio guidelines for banks. These guidelines provide for a minimum ratio of Tier 1 Capital to average total assets of 3% for banks that meet certain specified criteria, including having the highest regulatory rating. All other banks are generally required to maintain a leverage ratio of at least 3% plus an additional cushion of 100 to 200 basis points. The Bank's leverage ratio at September 30, 1998 was 9.39%. 10 PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS No information is reported under this item. ITEM 2. CHANGES IN SECURITIES No changes have been made to the rights of holders of any class of securities during the third quarter of 1998. ITEM 3. DEFAULTS UPON SENIOR SECURITIES No default has occurred with respect to any of the Corporation's securities during 1998. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None ITEM 5. OTHER INFORMATION No information is reported under this item. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits None (b) Reports on Form 8-K None 11 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the tenth day of November 1998. PEAPACK-GLADSTONE FINANCIAL CORPORATION (Registrant) By: /s/ FRANK A. KISSEL ------------------------------------ (Frank A. Kissel, President and Chief Executive Officer) /s/ ARTHUR F. BIRMINGHAM ------------------------------------ (Arthur F. Birmingham, Senior Vice President and Treasurer) EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 9-MOS 12-MOS DEC-31-1998 DEC-31-1997 SEP-30-1998 DEC-31-1997 19,732 33,240 142,524 145,558 208,261 177,380 2,097 1,893 0 0 247 785 8,974 8,595 0 0 377,641 363,665 340,480 330,026 0 0 0 0 0 0 3,892 3,892 33,269 29,747 377,641 363,665 0 0 21,709 26,138 0 0 0 0 8,699 10,726 273 400 6,237 7,698 6,500 7,314 2,398 2,822 4,102 4,492 0 0 0 0 0 0 4,102 4,492 1.76 1.93 1.71 1.90
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