Peapack-Gladstone Financial Corporation Reports Results For Third Quarter 2001 Diluted Earnings Per Share Increased 7.9 Percent For the Quarter

Bank's Market Area to Widen with Opening of 16th Branch in Clinton, New Jersey



    GLADSTONE, N.J., Nov. 1 /PRNewswire/ --
 Peapack-Gladstone Financial Corporation (Amex:   PGC) today reported earnings of
 $0.68 per diluted share for the quarter ended September 30, 2001, an increase
 of 7.9 percent over the $0.63 per diluted share for the comparable quarter in
 2000.  Net income for the quarter rose 7.5 percent to $2.30 million compared
 with $2.14 million for the same period in 2000.  These third quarter results
 produced a return on average assets ("ROA") of 1.43 percent and return on
 average equity ("ROE") of 15.29 percent.
     For the nine months ended September 30, 2001, diluted per share earnings
 were $1.92, an increase of 10.3 percent over the $1.74 reported for the nine
 months ended September 30, 2000.  Net income was $6.5 million for the nine
 months ended September 30, 2001, compared with $5.9 million for the same
 period of 2000.  Net income for the nine months ended September 30, 2000
 includes a net, after tax merger charge of $423 thousand or $0.12 per diluted
 share.  Diluted per share earnings for the nine months ended September 30,
 2000, excluding this merger charge, were $1.87.
     Frank A. Kissel, President and CEO stated, "With our continuing branch
 expansion and the offering of a complete variety of innovative products and
 services, our organization has experienced extraordinary growth.  Increases in
 our loan portfolios and total deposits contributed to our solid financial
 performance."  Mr. Kissel continued, "Total loans increased $76.4 million or
 23.0 percent for the twelve months ended September 30, 2001 and total deposits
 grew $126.9 million or 27 percent during the same period.
     "Additionally, we are pleased to announce further branch expansion with
 the signing of a lease for a new branch at the intersection of Routes 31 and
 78 in Clinton in Hunterdon County.  This full service branch, contingent upon
 approval by the New Jersey Department of Banking and Insurance, is scheduled
 to open during the first quarter of 2002.  We are very excited about the
 opportunities in this affluent high growth area."
     Net interest income was $6.45 million for the third quarter of 2001 with a
 net interest margin of 4.15 percent.  This compares with $5.83 million and a
 net interest margin of 4.53 percent for the third quarter of 2000.  Higher
 volumes of earning assets and deposits more than offset the margin compression
 of 38 basis points.
     Credit quality remained strong as non-performing loans totaled
 $449 thousand or 0.11 percent of total loans at September 30, 2001 as compared
 to $363 thousand or 0.11 percent of total loans at September 30, 2000.   The
 allowance for loan losses was $3.83 million or 0.94 percent of total loans at
 September 30, 2001 as compared to $3.22 million or 0.97 percent of total loans
 at September 30, 2000.
     In September, the Corporation invested $12 million in Bank Owned Life
 Insurance (BOLI) to help offset the rising costs of employee benefits.
 Interest earning assets were reduced by a like amount and income of
 $66 thousand is included in other income for the third quarter.
 
     Peapack-Gladstone Financial Corporation is a bank holding company with
 total assets of $665 million as of September 30, 2001.  Peapack-Gladstone
 Bank, its wholly owned community bank, was established in 1921, and has 15
 branches in Somerset, Hunterdon and Morris Counties.  Its Trust Division, PGB
 Trust and Investments with $1 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
 the Company's 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 relationship 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                  At or For
                             The Three Months Ended     The Nine Months Ended
                                   September 30,           September 30,
                               2001          2000         2001          2000
 
     Income Statement Data:
     Interest income        $10,406        $9,116      $30,170       $26,635
 
     Interest expense         3,955         3,286       11,879         8,925
 
     Net interest income      6,451         5,830       18,291        17,710
 
     Provision for loan losses  126           126          376           378
 
     Net interest income
      after provision for
      loan losses             6,325         5,704       17,915        17,332
 
     Other income             1,597         1,340        4,814         4,010
 
     Other expense            4,463         3,812       12,972        11,849
 
     Merger-related charges       0             0            0           500
 
     Income before income
      taxes                   3,459         3,232        9,757         8,993
 
     Income tax expenses      1,163         1,096        3,240         3,070
 
     Net income              $2,296        $2,136       $6,517        $5,923
 
     Balance Sheet Data:
     Total assets                                     $665,097      $526,584
     Federal funds sold and short-term
      investments Securities
      available for sale                               137,550        82,878
     Loans, net                                        404,692       328,231
     Deposits                                          597,012       470,064
     Stockholders' equity                               61,983        52,877
 
     Average Balance Sheet Data:
     Total Assets          $643,910      $525,477     $610,967      $517,921
 
     Earning Assets         608,921       493,949      579,258       486,711
 
     Loans, net             396,052       327,921      368,303       312,790
 
     Interest Bearing
      Deposits              473,945       373,351      446,478       368,990
 
     Demand Deposits        104,428        95,986      102,036        92,747
 
     Borrowings               1,005            43          339            14
 
     Stockholders' equity    60,078        51,222       57,991        49,345
 
 
     Performance Ratios:
     Return on average
      assets                  1.43%         1.63%        1.42%         1.52%
 
     Return on average
      equity                  15.29         16.68        14.98         16.00
 
 
     Net Interest Margin
      (Taxable Equivalent
      Basis)                  4.15%         4.53%        4.15%         4.65%
 
 
     Efficiency Ratio        56.36%        53.44%       57.09%        57.92%
 
 
     Performance Ratios:
      (Before Merger-Related
      Charges)
     Return on average
      assets                  1.43%         1.63%        1.42%         1.63%
 
     Return on average
      equity                  15.29         16.68        14.98         17.15
 
 
                                     At or For                At or For
                              The Three Months Ended    The Nine Months Ended
                                  September 30,             September 30,
                               2001          2000         2001          2000
 
 
     Asset Quality:
     Loans past due over 90 days
      and still accruing                                  $197          $171
     Non-accrual loans                                     252           192
     Net recoveries
      /(charge-offs)             $1         $(22)           14         (119)
 
     Allowance for loan losses
      to total loans                                     0.94%         0.97%
     Per Share Data:(1)
     Earnings per share
      (Basic)                 $0.69         $0.63        $1.96         $1.78
 
     Earnings per share
      (Diluted)                0.68          0.63         1.92          1.74
     Book Value                                          18.62         15.92
 
     Per Share Data:
      (Before Merger-Related Charges)(1)
     Earnings per share
      (Basic)                 $0.69         $0.63        $1.96         $1.91
 
     Earnings per share
      (Diluted)                0.68          0.63         1.92          1.87
 
 
     Capital Adequacy:
     Tier I Leverage                                     9.81%        10.34%
 
     Tier I Capital to
      Risk-Weighted Assets                               19.03         21.37
     Tier I & Tier II Capital to
      Risk-Weighted Assets                               20.25         22.65
 
      (1)  Restated for the 10% stock dividend declared September 13, 2001.
 
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SOURCE Peapack-Gladstone Financial Corporation

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