Peapack-Gladstone Financial Corporation Reports 45% Increase In First Quarter Diluted Earnings Per Share
GLADSTONE, N.J., April 23 /PRNewswire-FirstCall/ -- Peapack-Gladstone Financial Corporation (Amex: PGC) reported record earnings of $0.87 per diluted share for the first quarter ended March 31, 2002, an increase of 45.0 percent over the $0.60 per diluted share for the first quarter of 2001. Net income increased to $2.96 million for the quarter compared with $2.03 million for the first quarter of 2001, an increase of 45.9 percent. The quarter ended March 31, 2002 produced a return on average assets ("ROA") of 1.64 percent, a return on average equity ("ROE") of 18.32 percent, and an efficiency ratio of 53.13 percent. Frank A. Kissel, Peapack's Chairman and CEO noted, "We are very pleased with our results for the quarter. We have been able to provide higher than average returns to our shareholders through growth within our market areas and prudent lending practices. PGB Trust and Investments, as well, had a very successful quarter as the book value of assets grew to $916 million, an increase of $224 million or 32.3 percent over the level of assets on March 31, 2001." Mr. Kissel continued, "Our application for a new full service branch to be located in the King's Shopping Center in Warren has received regulatory approvals and will open in the near future. We are looking forward to serving this affluent, high growth market. Peapack will continue to explore opportunities for new branches in communities strategically located contiguous to our existing market to complement and enhance our business." Net interest income for the first quarter of 2002 was $7.71 million resulting in a net interest margin of 4.57 percent. This compares with $5.74 million and a net interest margin of 4.08 percent for the first quarter of 2001, and $6.86 million and a net interest margin of 4.27 percent for the fourth quarter of 2001. Loan and deposit growth, the redeployment of lower yielding short term assets into the higher yielding securities portfolio and lower cost of funds were all factors in the significant increase in net interest income. Total loans grew to $426.0 million at March 31, 2002, compared to $356.9 million at March 31, 2001, an increase of $69.2 million or 19.4 percent. Total deposits grew 25.6 percent to $676.6 million at March 31, 2002 from $538.6 million at March 31, 2001. All deposits categories recorded increases as the cost of funds fell to 1.86 percent in the first quarter of 2002 as compared to 3.12 percent in the first quarter of 2001 and 2.35 percent in the fourth quarter of 2001. Investment securities grew $122.5 million while federal funds sold and short term investments fell $55.8 million at March 31, 2002 as compared to the same period a year ago. Other income before gains on securities was $804 thousand in the first quarter of 2002, an increase of $301 thousand or 59.8 percent over 2001 levels. This increase was primarily due to additions to cash surrender value of Bank Owned Life Insurance, which grew $197 thousand and service charges on deposit accounts which increased $71 thousand. Other expense for the first quarter of 2002 increased 21.7 percent to $5.13 million compared to $4.22 million for the first quarter of 2001. The increase reflects increased staffing levels and expense commensurate with business expansion including two new branch locations. Credit quality remained strong as non-performing loans totaled $433 thousand or 0.10 percent of total loans at March 31, 2002 as compared to $455 thousand or 0.13 percent of total loans at March 31, 2001. The allowance for loan losses was $4.20 million or 0.99 percent of total loans at March 31, 2002 as compared to $3.56 million or 1.00 percent of total loans at March 31, 2001. Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $755 million as of March 31, 2002. Peapack-Gladstone Bank, its wholly owned community bank, was established in 1921, and has 16 branches in Somerset, Hunterdon and Morris Counties. Its Trust Division, PGB Trust and Investments with $1.2 billion in assets under management, operates at the Bank's main office located at 190 Main Street in Gladstone. To learn more about Peapack-Gladstone Financial Corporation and its services please visit our web site at http://www.pgbank.com or call 908-234-0700. The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's expectations about new and existing programs and products, relationships, opportunities, technology and market conditions. These statements may be identified by such forward-looking terminology as "expect," "look," "believe," "anticipate," "may," "will," or similar statements or variations of such terms. Such forward-looking statements include certain risks and uncertainties. These include, but are not limited to, the direction of the economy in New Jersey especially as it has been affected by recent developments, the direction of interest rates, continued levels of loan quality and origination volume, continued relationships with major customers including sources for loans, as well as the effects of general economic conditions and legal and regulatory barriers and structure. Actual results may differ materially from such forward-looking statements. Peapack-Gladstone assumes no obligation for updating any such forward-looking statements at any time. 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, 2002 2001 Income Statement Data: Interest income $10,690 $9,694 Interest expense 2,981 3,959 Net interest income 7,709 5,735 Provision for loan losses 199 126 Net interest income after provision for loan losses 7,510 5,609 Other income 804 503 Securities Gains 17 0 Trust Fees 1,146 1,131 Other expense 5,132 4,217 Income before income taxes 4,345 3,026 Income tax expenses 1,384 996 Net income $2,961 $2,030 Balance Sheet Data: Total assets $754,879 $600,881 Federal funds sold 7,841 48,509 Short-term investments 472 15,651 Securities held to maturity 60,030 63,605 Securities available for sale 214,572 88,524 Loans 426,029 356,858 Allowance for Loan Losses 4,200 3,564 Deposits 676,556 538,622 Stockholders' equity 64,142 57,533 Trust Department Assets (book value, not included above) $915,995 $692,168 Average Balance Sheet Data: Total Assets $721,284 $575,639 Earning Assets 676,275 546,409 Loans, net 415,069 342,904 Interest-Bearing Deposits 530,384 419,031 Demand Deposits 111,718 96,844 Borrowings 8,033 0 Stockholders' equity 64,637 56,282 Performance Ratios: Return on average assets 1.64 % 1.41 % Return on average equity 18.32 14.43 Efficiency Ratio 53.13 % 57.23 % Net Interest Margin (Taxable Equivalent Basis) 4.57 % 4.08 % Asset Quality: Loans past due over 90 days and still accruing $216 $259 Non-accrual loans 217 196 Net (charge-offs)/recoveries (22) 2 Allowance for loan losses to total loans 0.99 % 1.00 % Per Share Data: (1) Earnings per share (Basic) $0.89 $0.61 Earnings per share (Diluted) 0.87 0.60 Book Value 19.24 17.25 Capital Adequacy: Tier I Leverage 8.92 % 8.78 % Tier I Capital to Risk-Weighted Assets 18.98 18.54 Tier I & Tier II Capital to Risk-Weighted Assets 20.21 19.84 (1) Restated for the 10% stock dividend declared September 13, 2001. 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SOURCE Peapack-Gladstone Financial Corporation
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