News

Peapack-Gladstone Financial Corporation Reports Strong Fourth Quarter Results and Announces Another 5% Stock Repurchase Program

Bedminster, NJ – (NewMediaWire) – January 28, 2022 – Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the “Company”) announces its fourth quarter 2021 results.

This earnings release should be read in conjunction with the Company’s Q4 2021 Investor Update, a copy of which is available on our website at www.pgbank.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.  

For the quarter ended December 31, 2021, the Company recorded total revenue of $56.17 million, net income of $14.86 million and diluted earnings per share (“EPS”) of $0.78, compared to revenue of $46.14 million, net income of $3.03 million and diluted EPS of $0.16, respectively, for the three-month period ended December 31, 2020. 

For the year ended December 31, 2021, the Company recorded total revenue of $210.31 million, net income of $56.62 million and diluted earnings per share (“EPS”) of $2.93 compared to revenue of $189.36 million, net income of $26.19 million and diluted EPS of $1.37, respectively, for the year ended December 31, 2020. 

Improvement in the 2021 periods was principally driven by the Company’s wealth management and commercial banking businesses. 2021 included increased wealth management income, corporate advisory fees and SBA income, as well as increased net interest income resulting from asset growth, coupled with margin improvement.  The earnings for the full year of 2021 also benefitted from a significantly lower provision for loan losses.

The Q4 2021 period included a $893,000 swap valuation allowance recorded in operating expenses related to a loan placed on nonaccrual in Q3 2021. Q4 2021 also included a higher provision for loan losses due to the loan growth during the quarter.  

Douglas L. Kennedy, President and CEO, said, “Our fourth quarter and full year results reflected continued solid growth in our wealth management business and commercial banking, including both corporate advisory and SBA activities.  Increases in these areas year-over-year more than made up for the $7.4 million of PPP gains that the Company had recorded in 2020. As we look into the new year our pipelines for wealth management and commercial banking continue to be robust and we remain quite constructive toward 2022.” 

During the fourth quarter of 2021 the Company repurchased 274,929 shares under its stock repurchase program at an average price of $33.50 for a total cost of $9.21 million. For the full year of 2021, the Company repurchased 894,744 shares at an average price of $31.99 for a total cost of $28.63 million.

On January 27, 2022, the Company authorized a new 5% stock repurchase program of up to 920,000 shares.  Purchases will be conducted in accordance with the limitations set forth in the SEC’s Rule 10b-18.

Mr. Kennedy noted, “We believe that repurchasing our stock continues to be a great opportunity to take advantage of the Company’s discounted valuation relative to peers.”

EXECUTIVE SUMMARY:

The following tables summarize specified financial measures for the periods shown.

 

2021 Year Compared to Prior Year 

 

 

Year Ended

 

 

Year Ended

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

December 31,

 

 

 

Increase/

 

(Dollars in millions, except per share data)

 

2021

 

 

2020

 

 

 

(Decrease)

 

Net interest income

 

$

138.06

 

 

$

127.60

 

 

 

$

10.46

 

 

 

8

%

Wealth management fee income (A)

 

 

52.99

 

 

 

40.86

 

 

 

 

12.13

 

 

 

30

 

Capital markets activity (B)

 

 

10.62

 

 

 

6.65

 

 

 

 

3.97

 

 

 

60

 

Other income (C)

 

 

8.64

 

 

 

14.25

 

 

 

 

(5.61

)

 

 

(39

)

Total other income

 

 

72.25

 

 

 

61.76

 

 

 

 

10.49

 

 

 

17

 

Operating expenses (A) (D)

 

 

126.17

 

 

 

124.96

 

 

 

 

1.21

 

 

 

1

 

Pretax income before provision for loan losses

 

 

84.14

 

 

 

64.40

 

 

 

 

19.74

 

 

 

31

 

Provision for loan and lease losses (E)

 

 

6.48

 

 

 

32.40

 

 

 

 

(25.92

)

 

 

(80

)

Pretax income

 

 

77.66

 

 

 

32.00

 

 

 

 

45.66

 

 

 

143

 

Income tax expense (F)

 

 

21.04

 

 

 

5.81

 

 

 

 

15.23

 

 

 

262

 

Net income

 

$

56.62

 

 

$

26.19

 

 

 

$

30.43

 

 

 

116

%

Diluted EPS

 

$

2.93

 

 

$

1.37

 

 

 

$

1.56

 

 

 

114

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue (G)

 

$

210.31

 

 

$

189.36

 

 

 

$

20.95

 

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.94

%

 

 

0.45

%

 

 

 

0.49

 

 

 

 

 

Return on average equity

 

 

10.56

%

 

 

5.11

%

 

 

 

5.45

 

 

 

 

 

(A) The 2021 results included twelve months of wealth management fee income and expense related to the December 2020 hires of the teams from Lucas Capital Management (“Lucas”) and Noyes Capital Management (“Noyes”) and six months of wealth management fee income and expense related to the July 2021 acquisition of Princeton Portfolio Strategies Group.

(B) Capital markets activity included fee income from loan level back-to-back swaps, the SBA lending and sale program, corporate advisory activities and mortgage banking activities. The 2021 results included $3.5 million of corporate advisory fee income. There were no fees related to loan level back-to-back swap activities in the twelve months ended December 31, 2021, compared to $1.6 million for 2020. 

(C) The 2021 results included a cost of $842,000 related to the termination of interest rate swaps; a $1.1 million gain on loans held at lower of cost or fair value; $722,000 of fee income related to the referral of PPP loans to a third party; and $455,000 of additional BOLI income related to receipt of life insurance proceeds.  The 2020 results included a $7.4 million gain on the sale of PPP loans.

(D) The 2021 results included $1.5 million of severance expense related to certain corporate restructurings within several areas of the Bank; $648,000 of expense related to the redemption of subordinated debt; and $2.2 million related to a swap valuation allowance.   The 2020 results included $4.8 million for the prepayment of FHLB advances, $4.4 million for the valuation allowance for a loan held for sale, $210,000 for the consolidation of two private banking locations, and $278,000 for the closure of a retail branch.

(E) The 2020 results included a provision for loan and lease losses of $32.4 million, primarily due to the COVID-19 pandemic.

(F) The 2020 results included a $3.2 million tax benefit related to the carryback of tax NOLs.

(G) Total revenue equals the sum of net interest income plus total other income.

December 2021 Quarter Compared to Prior Year Quarter

 

 

Three Months Ended

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

December 31,

 

 

Increase/

 

(Dollars in millions, except per share data)

 

2021

 

 

 

2020

 

 

(Decrease)

 

Net interest income

 

$

37.21

 

 

 

$

31.74

 

 

$

5.47

 

 

 

17

%

Wealth management fee income (A)

 

 

13.96

 

 

 

 

10.79

 

 

 

3.17

 

 

 

29

 

Capital markets activity (B)

 

 

3.52

 

 

 

 

1.89

 

 

 

1.63

 

 

 

86

 

Other income (C)

 

 

1.48

 

 

 

 

1.72

 

 

 

(0.24

)

 

 

(14

)

Total other income

 

 

18.96

 

 

 

 

14.40

 

 

 

4.56

 

 

 

32

 

Operating expenses (A) (D)

 

 

31.70

 

 

 

 

39.25

 

 

 

(7.55

)

 

 

(19

)

Pretax income before provision for loan losses

 

 

24.47

 

 

 

 

6.89

 

 

 

17.58

 

 

 

255

 

Provision for loan and lease losses

 

 

3.75

 

 

 

 

2.35

 

 

 

1.40

 

 

 

60

 

Pretax income

 

 

20.72

 

 

 

 

4.54

 

 

 

16.18

 

 

 

356

 

Income tax expense

 

 

5.86

 

 

 

 

1.51

 

 

 

4.35

 

 

 

288

 

Net income

 

$

14.86

 

 

 

$

3.03

 

 

$

11.83

 

 

 

390

%

Diluted EPS

 

$

0.78

 

 

 

$

0.16

 

 

$

0.62

 

 

 

387

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue (E)

 

$

56.17

 

 

 

$

46.14

 

 

$

10.03

 

 

 

22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets annualized

 

 

0.96

%

 

 

 

0.21

%

 

 

0.75

 

 

 

 

 

Return on average equity annualized

 

 

10.94

%

 

 

 

2.32

%

 

 

8.62

 

 

 

 

 

(A) The December 2021 quarter included a full quarter of wealth management fee income and expense related to the December 2020 hires of the teams from Lucas and Noyes and the July 2021 acquisition of PPSG.

(B) Capital markets activity included fee income from loan level back-to-back swaps, the SBA lending and sale program, corporate advisory activities, and mortgage banking activities. The December 2021 quarter included $2.2 million of corporate advisory fee income, the majority of which related to a large investment banking advisory event.

(C) The December 31, 2021 quarter included a $265,000 loss on the sale of loans.

(D) The December 2021 quarter included $893,000 related to a swap valuation allowance.   The December 2020 quarter included $4.8 million for the prepayment of FHLB advances, $4.4 million for the valuation allowance for a loan held for sale, and $210,000 for the consolidation of two private banking locations

(E) Total revenue equals the sum of net interest income plus total other income.

December 2021 Quarter Compared to Linked Quarter

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

September 30,

 

 

 

Increase/

 

(Dollars in millions, except per share data)

 

2021

 

 

2021

 

 

 

(Decrease)

 

Net interest income

 

$

37.21

 

 

$

35.21

 

 

 

$

2.00

 

 

 

6

%

Wealth management fee income

 

 

13.96

 

 

 

13.86

 

 

 

 

0.10

 

 

 

1

 

Capital markets activity (A)

 

 

3.52

 

 

 

2.06

 

 

 

 

1.46

 

 

 

71

 

Other income (B)

 

 

1.48

 

 

 

1.86

 

 

 

 

(0.38

)

 

 

(20

)

Total other income

 

 

18.96

 

 

 

17.78

 

 

 

 

1.18

 

 

 

7

 

Operating expenses (C)

 

 

31.70

 

 

 

32.18

 

 

 

 

(0.48

)

 

 

(1

)

Pretax income before provision for loan losses

 

 

24.47

 

 

 

20.81

 

 

 

 

3.66

 

 

 

18

 

Provision for loan and lease losses

 

 

3.75

 

 

 

1.60

 

 

 

 

2.15

 

 

 

134

 

Pretax income

 

 

20.72

 

 

 

19.21

 

 

 

 

1.51

 

 

 

8

 

Income tax expense

 

 

5.86

 

 

 

5.04

 

 

 

 

0.82

 

 

 

16

 

Net income

 

$

14.86

 

 

$

14.17

 

 

 

$

0.69

 

 

 

5

%

Diluted EPS

 

$

0.78

 

 

$

0.74

 

 

 

$

0.04

 

 

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue (D)

 

$

56.17

 

 

$

52.99

 

 

 

$

3.18

 

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets annualized

 

 

0.96

%

 

 

0.95

%

 

 

 

0.01

 

 

 

 

 

Return on average equity annualized

 

 

10.94

%

 

 

10.40

%

 

 

 

0.54

 

 

 

 

 

(A) Capital markets activity included fee income from loan level back-to-back swaps, the SBA lending and sale program, corporate advisory and mortgage banking activities.

(B) The December 31, 2021 quarter included a $265,000 loss on sale of loans.

(C) The December 2021 quarter included $893,000 related to a swap valuation allowance.  The September 2021 quarter included $1.4 million related to a swap valuation allowance.

(D) Total revenue equals the sum of net interest income plus total other income.

Select highlights:

Peapack Private Wealth Management:

AUM/AUA in our Peapack Private Wealth Management Division grew 8% (31% annualized) to $11.1 billion at December 31, 2021 from $10.3 billion at September 30, 2021, and 26% over the $8.8 billion at December 31, 2020.

Gross new business inflows for 2021 totaled $840 million. 

Wealth Management fee income increased 30% to $14.0 million for Q4 2021 compared to $10.8 million for Q4 2020. 

On July 1, 2021, we closed on the acquisition of Princeton Portfolio Strategies Group (“PPSG”). 

Commercial Banking and Balance Sheet Management: 

At December 31, 2021, total loans (excluding $14 million of PPP loans) grew 15% to $4.83 billion compared to $4.21 billion (excluding $196 million of PPP loans) at December 31, 2020.

C&I loan/lease balances (excluding PPP loans) grew $216 million or 12% over 2020, with a large portion of that net growth occurring in Q4 2021.   

SBA Income ($4.9 million) and Corporate Advisory fees ($3.5 million) totaled $8.4 million in 2021.

Core deposits (which includes noninterest-bearing demand and interest-bearing demand, savings and money market) totaled 89% of total deposits at December 31, 2021, with an average cost of 0.17%. 

The net interest margin improved by 4 basis points in Q4 2021 compared to Q3 2021 and improved 21 basis points when compared to Q4 2020.   

Capital Management:

Continued to execute on the previously approved stock repurchase program – during Q4 repurchased 274,929 shares at an average price of $33.50 for a total cost of $9.2 million. (For the year ended December 31, 2021, the Company repurchased 894,744 shares). 

Tangible book value per share increased 6.2% to $27.05 at December 31, 2021 from $25.47 at December 31, 2020, despite recent stock repurchase activity and a wealth acquisition. See the Non-GAAP financial measures reconciliation included in this release.

SUPPLEMENTAL QUARTERLY DETAILS:

Wealth Management 

In the December 2021 quarter, the Bank’s wealth management business generated a record $13.96 million in fee income, compared to $13.86 million for the September 30, 2021 quarter and $10.79 million for the December 2020 quarter. 

The market value of the Company’s AUM/AUA increased 26% to $11.1 billion at December 31, 2021 from $8.8 billion at December 31, 2020, due to organic new business, the PPSG acquisition, and favorable market conditions. 

John P. Babcock, President of the Peapack Private Wealth Management division, said, “2021 showed continued strong business from new clients as well as additional business from existing clients.  Positive net flows, combined with solid client retention and favorable market conditions, all contributed to our strong quarterly and full year results.”  Mr. Babcock went on to note, “While we will continue to look at supplementing our organic growth with selective acquisitions, M&A activity in the RIA space is hyper-competitive with purchase price multiples reaching all-time highs – making it challenging for us to obtain acceptable returns on invested capital.  Internally, we are focused on completing our One Team consolidation of the businesses and people we have acquired over the last several years under a single operating and technology framework, completing our migration to a single trading platform and re-organizing our wealth business under a new, streamlined organizational structure to ensure the highest level of client experience, maximum efficiency, and growth.”

Loans / Commercial Banking 

At December 31, 2021, loans totaled $4.83 billion (excluding $14 million of PPP loans), compared to $4.21 billion (excluding $196 million of PPP loans) at December 31, 2020, reflecting growth of 15%. This growth was achieved despite over $900 million of net paydown/payoff activity over the twelve-month period.  

Total C&I loans and leases (including the $14 million of PPP loans) at December 31, 2021 were $2.01 billion or 41% of the total loan portfolio. 

Mr. Kennedy noted, “Our commercial loan pipelines continue to be strong going into the new year, standing at approximately $350 million with the likelihood of a first quarter closing. Notwithstanding significant payoff activity, we believe that we will achieve high single digit loan growth for 2022.”

Mr. Kennedy also noted, “We are proud to have built a leading middle market commercial banking franchise, as evidenced by over $200 million of net growth in our C&I Portfolio, continued growth in Treasury Management income, and our over $3 million of corporate advisory fees by our investment banking group – this team had record earnings in 2021 and continues to have a robust pipeline of new business opportunities.” 

Funding / Liquidity / Interest Rate Risk Management

The Company actively manages its deposit base to reduce reliance on wholesale sourced deposits, volatility, and/or operational risk.  Total deposits at December 31, 2021 increased $448 million to $5.27 billion from $4.82 billion at December 31, 2020. Along with the deposit growth, the change in mix was favorable, as noninterest bearing demand deposits increased $123 million, interest-bearing demand increased $439 million, while higher costing CDs declined $121 million and brokered deposits declined $25 million, when comparing December 31, 2021 to December 31, 2020.  

Mr. Kennedy noted, “89% of our deposits are demand, savings, or money market accounts, and our noninterest bearing deposits comprise 18% of our total deposits; both metrics reflect the relationship aspect of our deposit base.”

At December 31, 2021, the Company’s balance sheet liquidity (investments available for sale, interest-earning deposits and cash) totaled $971.2 million (or 16% of assets).  This level is lower than the level at September 30, 2021 due to an increase in loan activity during Q4 2021 and more in line with historical levels. 

The Company maintains backup liquidity of approximately $1.8 billion of secured funding with the Federal Home Loan Bank and $1.2 billion of secured funding from the Federal Reserve Discount Window.  The available funding from the Federal Home Loan Bank and the Federal Reserve are secured by the Company’s loan and investment portfolios.

Mr. Kennedy noted, “We are well positioned for a rise in interest rates given that 40% of our loan portfolio reprices within three months and 52% within one year. Our current modeling, with what we believe include conservative deposit beta assumptions, indicates net interest income will improve approximately 3% in year one and 5% in year two after a 100 basis point rate shock.”

Net Interest Income (NII)/Net Interest Margin (NIM)

 

Twelve Months Ended

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

NII

 

 

NIM

 

 

NII

 

 

NIM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NII/NIM excluding the below

$

134,206

 

 

2.50%

 

 

$

123,099

 

 

2.58%

 

 

 

 

 

 

 

 

 

Prepayment premiums received on loan paydowns

 

2,085

 

 

0.04%

 

 

 

1,452

 

 

0.02%

 

 

 

 

 

 

 

 

 

Effect of maintaining excess interest earning cash

 

(420

)

 

-0.17%

 

 

 

(1,320

)

 

-0.21%

 

 

 

 

 

 

 

 

 

Effect of PPP loans

 

2,190

 

 

0.01%

 

 

 

4,371

 

 

-0.08%

 

 

 

 

 

 

 

 

 

NII/NIM as reported

$

138,061

 

 

2.38%

 

 

$

127,602

 

 

2.31%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Three Months Ended

 

 

December 31, 2021

 

 

September 30, 2021

 

 

December 31, 2020

 

 

NII

 

 

NIM

 

 

NII

 

 

NIM

 

 

NII

 

 

NIM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NII/NIM excluding the below

$

36,564

 

 

2.60%

 

 

$

34,635

 

 

2.56%

 

 

$

30,897

 

 

2.51%

 

Prepayment premiums received on loan paydowns

 

555

 

 

0.04%

 

 

 

325

 

 

0.02%

 

 

 

413

 

 

0.02%

 

Effect of maintaining excess interest earning cash

 

(68

)

 

-0.18%

 

 

 

(46

)

 

-0.14%

 

 

 

(206

)

 

-0.24%

 

Effect of PPP loans

 

161

 

 

0.00%

 

 

 

297

 

 

-0.02%

 

 

 

631

 

 

-0.04%

 

NII/NIM as reported

$

37,212

 

 

2.46%

 

 

$

35,211

 

 

2.42%

 

 

$

31,735

 

 

2.25%

 

As shown above, the Company’s reported NII increased $2.0 million and NIM increased 4 basis points compared to the linked quarter. The Bank further lowered its cost of funds strategically and grew its average loan portfolio at rates/spreads beneficial to NIM. 

Future net interest income and net interest margin should benefit from the following:

Robust loan pipelines to generate loan growth.

Continued downward repricing of maturing CDs. 

An increase in target Fed funds (should that occur). 

Income from Capital Markets Activities

Noninterest income from Capital Markets activities (detailed below) totaled $3.52 million for the December 2021 quarter compared to $2.06 million for the September 2021 quarter and $1.90 million for the December 2020 quarter.  The December 2021 quarterly results were driven by $2.18 million in Corporate Advisory income. The September 2021 quarter results were driven by $1.57 million in gains on sale of SBA loans. The December 2020 quarter reflected increased mortgage banking activity due to greater refinance activity in the low-rate environment. The December 2021, September 2021 and December 2020 quarters included no income from loan level, back-to-back swap activities, as there has been, and will continue to be, minimal activity for such in the current environment. 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

(Dollars in thousands, except per share data)

 

2021

 

 

2021

 

 

2020

 

Gain on loans held for sale at fair value (Mortgage banking)

 

$

352

 

 

$

408

 

 

$

1,470

 

Fee income related to loan level, back-to-back swaps

 

 

 

 

 

 

 

 

 

Gain on sale of SBA loans

 

 

989

 

 

 

1,569

 

 

 

375

 

Corporate advisory fee income

 

 

2,180

 

 

 

84

 

 

 

50

 

Total capital markets activity

 

$

3,521

 

 

$

2,061

 

 

$

1,895

 

Other Noninterest Income (other than Wealth Management fee income and Income from Capital Markets Activities)

                Other noninterest income (as defined above) totaled $1.48 million, $1.86 million, and $1.72 million, for the December 2021, September 2021, and December 2020 quarters, respectively. The December 2021 quarter included $265,000 net loss on loans held for sale. 

Operating Expenses

The Company’s total operating expenses were $31.70 million for the quarter ended December 31, 2021, compared to $32.18 million for the September 2021 quarter and $39.25 million for the December 2020 quarter. The December 2021 and September 2021 quarters included $893,000 and $1.35 million related to a swap valuation allowance, respectively.  The December and September 2021 quarters also included a full quarter’s worth of expense related to the teams hired from Lucas and Noyes and the acquisition of PPSG. The December 2020 quarter included $4.8 million for the prepayment of FHLB advances, $4.4 million for a valuation allowance on a loan held for sale and $210,000 related to the consolidation of two private banking offices.  

Mr. Kennedy noted, “While we continue to manage expenses closely and prudently, we will invest in our existing people as the market demands in order to retain the talent we have acquired, grow and expand our core wealth management and commercial banking businesses, including lift-outs, strategic hires, and wealth M&A, and invest in digital enhancements to further enhance the client experience.”

Income Taxes

The effective tax rate for the three months ended December 31, 2021 was 28.31%, as compared to 26.22% for the September 2021 quarter and 33.29% for the quarter ended December 31, 2020. A tax return to book adjustment recorded in the December 2020 quarter coupled with reduced pretax income in the quarter, increased the December 2020 effective tax rate by approximately 5%.

The effective annual tax rate for 2021 was 27.09% compared to 18.16% for 2020.  During the first quarter of 2020, the Company recorded a $3.34 million tax benefit, principally due to a $3.2 million federal income tax benefit that resulted from a tax NOL carryback. The Company had a $23 million operating loss for tax purposes in 2018 (when the federal tax rate was 21%) resulting from accelerated tax depreciation. Under the CARES Act, the Company was allowed to carry this NOL back to a period when the federal tax rate was 35%, generating a permanent tax benefit.  

Asset Quality / Provision for Loan and Lease Losses

Nonperforming assets (which does not include troubled debt restructured loans that are performing in accordance with their terms) at December 31, 2021 were $15.6 million, or 0.26% of total assets, compared to $25.9 million, or 0.42% of total assets, at September 30, 2021. The $10.3 million decline was largely due to a $2 million C&I loan moved back to accrual status, and a $7 million charge-off of the specific reserve on the commercial real estate loan with a large retail component located in Manhattan, and on deferral, that was placed on nonaccrual status in the third quarter of 2021.   

For the quarter ended December 31, 2021, the Company’s provision for loan and lease losses was $3.8 million compared to $1.6 million for the September 2021 quarter and $2.4 million for the December 2020 quarter. The increased provision for loan and lease losses in the December 2021 quarter, when compared to the linked quarter and the 2020 quarter, was due principally to significant loan growth during the December 2021 quarter and additional specific reserves of $4.2 million on the commercial real estate loan noted above, offset by reduced qualitative loss factors related to the unemployment rate and amount of loan deferrals and other economic qualitative factors due to the COVID-19 pandemic. 

Loans on deferral, and accruing, entered into during the COVID-19 pandemic have come down significantly from $914 million at June 30, 2020 to $13 million at December 31, 2021. The Company’s provision for loan and lease losses, and its allowance for loan and lease losses (ALLL) also reflect, among other things, the Company’s assessment of asset quality metrics, net charge-offs/recoveries, and the composition of the loan portfolio. 

At December 31, 2021, the allowance for loan and lease losses was $61.70 million (1.27% of total loans), compared to $65.13 million at September 30, 2021 (1.42% of loans) and $67.31 million at December 31, 2020 (1.53% of total loans).  

The Company will adopt CECL during the first quarter of 2022 and does not expect a material adjustment upon adoption. 

Capital 

The Company’s capital position during the December 2021 quarter was benefitted by net income of $14.86 million, which was offset by the purchase of shares through the Company’s stock repurchase program and the quarterly dividend. During the fourth quarter of 2021, the Company repurchased 274,929 shares at an average price of $33.50 for a total cost of $9.2 million.  GAAP Capital at December 31, 2021 was also impacted by an increase in the unrealized loss on available-for-sale securities in the fourth quarter of 2021, due to a rise in medium-term Treasury yields. 

The Company’s and Bank’s capital ratios at December 31, 2021 all remain strong.  Such ratios remain well above regulatory well capitalized standards.

As previously announced, in the fourth quarter of 2020, the Company successfully completed a private placement of $100 million in fixed-to floating rate subordinated notes due 2030 at a rate of 3.5%. Such funds benefitted the Company’s Regulatory Tier 2 Capital. At the time, the Company noted the proceeds raised would be used for general corporate purposes, which could include stock repurchases, the redemption of the Company’s then existing 6% subordinated debt and acquisitions of wealth management firms. Throughout the twelve months of 2021, the Company repurchased $29 million of stock.  On June 30, 2021, the Company redeemed its 6% subordinated debt. On July 1, 2021, the Company closed on the acquisition of PPSG. 

The Company employs quarterly capital stress testing – adverse case and severely adverse case. In the most recent completed stress test on September 30, 2021, under severely adverse case, and no growth scenarios, the Bank remains well capitalized over a two-year stress period. With a Pandemic stress overlay, the Bank still remains well capitalized over the two-year stress period.

On January 27, 2022, the Company declared a cash dividend of $0.05 per share payable on February 25, 2022, to shareholders of record on February 10, 2022.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $6.1 billion and assets under management/administration of $11.1 billion as of December 31, 2021.  Founded in 1921, Peapack-Gladstone Bank is a commercial bank that provides innovative wealth management, commercial and retail solutions, including residential lending and online platforms, to businesses and consumers.  Peapack Private, the bank’s wealth management division, offers comprehensive financial, tax, fiduciary and investment advice and solutions to individuals, families, privately-held businesses, family offices and not-for-profit organizations, which help them to establish, maintain and expand their legacy.  Together, Peapack-Gladstone Bank and Peapack Private offer an unparalleled commitment to client service.  Visit www.pgbank.com and www.peapackprivate.com for more information.

The foregoing may contain 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, investments, relationships, opportunities and market conditions.  These statements may be identified by such forward-looking terminology as “expect,” “look,” “believe,” “anticipate,” “may” or similar statements or variations of such terms.  Actual results may differ materially from such forward-looking statements.  Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to:

our ability to successfully grow our business and implement our strategic plan, including our ability to generate revenues to offset the increased personnel and other costs related to the strategic plan;

the impact of anticipated higher operating expenses in 2022 and beyond;

our ability to successfully integrate wealth management firm acquisitions;

our ability to manage our growth;

our ability to successfully integrate our expanded employee base;

an unexpected decline in the economy, in particular in our New Jersey and New York market areas;

declines in our net interest margin caused by the interest rate environment and/or our highly competitive market;

declines in the value in our investment portfolio;

impact from a pandemic event on our business, operations, customers, allowance for loan losses and capital levels;

higher than expected increases in our allowance for loan and lease losses;

higher than expected increases in loan and lease losses or in the level of delinquent, nonperforming, classified and criticized loans;

changes in interest rates;

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, Basel III and related regulations) that may result in increased compliance costs;

successful cyberattacks against our IT infrastructure and that of our IT and third-party providers;

higher than expected FDIC insurance premiums;

adverse weather conditions;

our inability to successfully generate new business in new geographic markets;

a 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;

our inability to retain key employees;

demands for loans and deposits in our market areas;

adverse changes in securities markets;

changes in accounting policies and practices; and

other unexpected material adverse changes in our operations or earnings.

Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 pandemic on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated.  As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations: 

demand for our products and services may decline, making it difficult to grow assets and income; 

if the economy worsens, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; 

collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; 

our allowance for loan losses may increase if borrowers experience financial difficulties, which will adversely affect our net income; 

the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; 

a material decrease in net income or a net loss over several quarters could result in an elimination or a decrease in the rate of our quarterly cash dividend; 

our wealth management revenues may decline with continuing market turmoil; 

a worsening of business and economic conditions or in the financial markets could result in an impairment of certain intangible assets, such as goodwill;

the unanticipated loss or unavailability of key employees due to the outbreak, which could harm our ability to operate our business or execute our business strategy, especially as we may not be successful in finding and integrating suitable successors;

we may face litigation, regulatory enforcement and reputation risk as a result of our participation in the PPP and the risk that the SBA may not fund some or all PPP loan guaranties;

our cyber security risks are increased as the result of an increase in the number of employees working remotely; and 

FDIC premiums may increase if the agency experience additional resolution costs.

A discussion of these and other factors that could affect our results is included in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2020.  We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Contact:

Jeffrey J. Carfora, SEVP and CFO

Peapack-Gladstone Financial Corporation

T: 908-719-4308

 (Tables to follow)

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except share data)
 (Unaudited)

 

 

For the Three Months Ended

 

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

Dec 31,

 

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

42,075

 

 

$

40,067

 

 

$

39,686

 

 

$

38,239

 

 

$

38,532

 

Interest expense

 

 

4,863

 

 

 

4,856

 

 

 

5,841

 

 

 

6,446

 

 

 

6,797

 

Net interest income

 

 

37,212

 

 

 

35,211

 

 

 

33,845

 

 

 

31,793

 

 

 

31,735

 

Wealth management fee income

 

 

13,962

 

 

 

13,860

 

 

 

13,034

 

 

 

12,131

 

 

 

10,791

 

Service charges and fees

 

 

996

 

 

 

959

 

 

 

896

 

 

 

846

 

 

 

859

 

Bank owned life insurance

 

 

308

 

 

 

311

 

 

 

466

 

 

 

611

 

 

 

313

 

Gain on loans held for sale at fair value

   (Mortgage banking) (A)

 

 

352

 

 

 

408

 

 

 

409

 

 

 

1,025

 

 

 

1,470

 

(Loss)/Gain on loans held for sale at lower of

   cost or fair value (B)

 

 

(265

)

 

 

 

 

 

1,125

 

 

 

282

 

 

 

 

Fee income related to loan level, back-to-back

   swaps (A)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sale of SBA loans (A)

 

 

989

 

 

 

1,569

 

 

 

932

 

 

 

1,449

 

 

 

375

 

Corporate advisory fee income (A)

 

 

2,180

 

 

 

84

 

 

 

121

 

 

 

1,098

 

 

 

50

 

Loss on swap termination

 

 

 

 

 

 

 

 

(842

)

 

 

 

 

 

 

Other income (C)

 

 

581

 

 

 

660

 

 

 

1,495

 

 

 

643

 

 

 

590

 

Securities (losses)/gains, net

 

 

(139

)

 

 

(70

)

 

 

42

 

 

 

(265

)

 

 

(42

)

Total other income

 

 

18,964

 

 

 

17,781

 

 

 

17,678

 

 

 

17,820

 

 

 

14,406

 

Salaries and employee benefits (D)

 

 

20,105

 

 

 

19,859

 

 

 

19,910

 

 

 

21,990

 

 

 

19,902

 

Premises and equipment

 

 

4,519

 

 

 

4,459

 

 

 

4,074

 

 

 

4,113

 

 

 

4,189

 

FDIC insurance expense

 

 

402

 

 

 

555

 

 

 

529

 

 

 

585

 

 

 

665

 

FHLB prepayment penalty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,784

 

Valuation allowance loans held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,425

 

Swap valuation allowance

 

 

893

 

 

 

1,350

 

 

 

 

 

 

 

 

 

 

Other expenses

 

 

5,785

 

 

 

5,962

 

 

 

6,171

 

 

 

4,906

 

 

 

5,284

 

Total operating expenses

 

 

31,704

 

 

 

32,185

 

 

 

30,684

 

 

 

31,594

 

 

 

39,249

 

Pretax income before provision for loan losses

 

 

24,472

 

 

 

20,807

 

 

 

20,839

 

 

 

18,019

 

 

 

6,892

 

Provision for loan and lease losses

 

 

3,750

 

 

 

1,600

 

 

 

900

 

 

 

225

 

 

 

2,350

 

Income before income taxes

 

 

20,722

 

 

 

19,207

 

 

 

19,939

 

 

 

17,794

 

 

 

4,542

 

Income tax expense

 

 

5,867

 

 

 

5,036

 

 

 

5,521

 

 

 

4,616

 

 

 

1,512

 

Net income

 

$

14,855

 

 

$

14,171

 

 

$

14,418

 

 

$

13,178

 

 

$

3,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue (E)

 

$

56,176

 

 

$

52,992

 

 

$

51,523

 

 

$

49,613

 

 

$

46,141

 

Per Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (basic)

 

$

0.80

 

 

$

0.76

 

 

$

0.76

 

 

$

0.70

 

 

$

0.16

 

Earnings per share (diluted)

 

 

0.78

 

 

 

0.74

 

 

 

0.74

 

 

 

0.67

 

 

 

0.16

 

Weighted average number of common
   shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

18,483,268

 

 

 

18,763,316

 

 

 

18,963,237

 

 

 

18,950,305

 

 

 

18,947,864

 

Diluted

 

 

19,070,594

 

 

 

19,273,831

 

 

 

19,439,439

 

 

 

19,531,689

 

 

 

19,334,569

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets annualized (ROAA)

 

 

0.96

%

 

 

0.95

%

 

 

0.97

%

 

 

0.89

%

 

 

0.21

%

Return on average equity annualized (ROAE)

 

 

10.94

%

 

 

10.40

%

 

 

10.86

%

 

 

10.03

%

 

 

2.32

%

Return on average tangible common equity (ROATCE) (F)

 

 

12.03

%

 

 

11.43

%

 

 

11.83

%

 

 

10.94

%

 

 

2.51

%

Net interest margin (tax-equivalent basis)

 

 

2.46

%

 

 

2.42

%

 

 

2.38

%

 

 

2.28

%

 

 

2.25

%

GAAP efficiency ratio (G)

 

 

56.44

%

 

 

60.74

%

 

 

59.55

%

 

 

63.68

%

 

 

85.06

%

Operating expenses / average assets annualized

 

 

2.05

%

 

 

2.16

%

 

 

2.06

%

 

 

2.14

%

 

 

2.66

%

(A) Gain on loans held for sale at fair value (mortgage banking), fee income related to loan level, back-to-back swaps, gain on sale of SBA loans and corporate advisory fee income are all included in “capital markets activity” as referred to within the earnings release.

(B) Includes a $1.1 million gain on sale of $57 million of PPP loans completed in the June 2021 quarter.

(C) Includes income of $722,000 from the referral of PPP loans to a third-party firm during the June 2021 quarter.

(D) The March 2021 quarter included $1.5 million of severance expense related to corporate restructuring.

(E) Total revenue equals the sum of net interest income plus total other income.

(F) Return on average tangible common equity is calculated by dividing tangible common equity by annualized net income.  See Non-GAAP financial measures reconciliation included in these tables.

(G) Calculated as total operating expenses as a percentage of total revenue.  For Non-GAAP efficiency ratio, see the Non-GAAP financial measures reconciliation included in these tables.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except share data)
 (Unaudited)

 

 

For the Twelve Months Ended

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

Change

 

 

 

2021

 

 

2020

 

 

$

 

 

%

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

160,067

 

 

$

165,750

 

 

$

(5,683

)

 

 

-3

%

Interest expense

 

 

22,006

 

 

 

38,148

 

 

 

(16,142

)

 

 

-42

%

Net interest income

 

 

138,061

 

 

 

127,602

 

 

 

10,459

 

 

 

8

%

Wealth management fee income

 

 

52,987

 

 

 

40,861

 

 

 

12,126

 

 

 

30

%

Service charges and fees

 

 

3,697

 

 

 

3,155

 

 

 

542

 

 

 

17

%

Bank owned life insurance

 

 

1,696

 

 

 

1,273

 

 

 

423

 

 

 

33

%

Gain on loans held for sale at fair value (Mortgage banking) (A)

 

 

2,194

 

 

 

3,266

 

 

 

(1,072

)

 

 

-33

%

Gain on loans held for sale at lower of cost or fair value (B)

 

 

1,142

 

 

 

7,426

 

 

 

(6,284

)

 

 

-85

%

Fee income related to loan level, back-to-back swaps (A)

 

 

 

 

 

1,620

 

 

 

(1,620

)

 

 

-100

%

Gain on sale of SBA loans (A)

 

 

4,939

 

 

 

1,766

 

 

 

3,173

 

 

 

180

%

Corporate advisory fee income (A)

 

 

3,483

 

 

 

265

 

 

 

3,218

 

 

 

1214

%

Loss on swap termination

 

 

(842

)

 

 

 

 

 

(842

)

 

N/A

 

Other income (C)

 

 

3,379

 

 

 

1,847

 

 

 

1,532

 

 

 

83

%

Securities (losses)/gains, net

 

 

(432

)

 

 

281

 

 

 

(713

)

 

 

-254

%

Total other income

 

 

72,243

 

 

 

61,760

 

 

 

10,483

 

 

 

17

%

Salaries and employee benefits (D)

 

 

81,864

 

 

 

77,516

 

 

 

4,348

 

 

 

6

%

Premises and equipment

 

 

17,165

 

 

 

16,377

 

 

 

788

 

 

 

5

%

FDIC insurance expense

 

 

2,071

 

 

 

1,975

 

 

 

96

 

 

 

5

%

FHLB prepayment penalty

 

 

 

 

 

4,784

 

 

 

(4,784

)

 

 

-100

%

Valuation allowance loans held for sale

 

 

 

 

 

4,425

 

 

 

(4,425

)

 

 

-100

%

Swap valuation allowance

 

 

2,243

 

 

 

 

 

 

2,243

 

 

N/A

 

Other expenses

 

 

22,824

 

 

 

19,882

 

 

 

2,942

 

 

 

15

%

Total operating expenses

 

 

126,167

 

 

 

124,959

 

 

 

1,208

 

 

 

1

%

Pretax income before provision for loan losses

 

 

84,137

 

 

 

64,403

 

 

 

19,734

 

 

 

31

%

Provision for loan and lease losses (E)

 

 

6,475

 

 

 

32,400

 

 

 

(25,925

)

 

 

-80

%

Income before income taxes

 

 

77,662

 

 

 

32,003

 

 

 

45,659

 

 

 

143

%

Income tax expense (F)

 

 

21,040

 

 

 

5,811

 

 

 

15,229

 

 

 

262

%

Net income

 

$

56,622

 

 

$

26,192

 

 

$

30,430

 

 

 

116

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue (G)

 

$

210,304

 

 

$

189,362

 

 

$

20,942

 

 

 

11

%

Per Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (basic)

 

$

3.01

 

 

$

1.39

 

 

$

1.62

 

 

 

117

%

Earnings per share (diluted)

 

 

2.93

 

 

 

1.37

 

 

 

1.56

 

 

 

114

%

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

18,788,679

 

 

 

18,896,825

 

 

 

(108,146

)

 

 

-1

%

Diluted

 

 

19,292,602

 

 

 

19,081,187

 

 

 

211,415

 

 

 

1

%

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROAA)

 

 

0.94

%

 

 

0.45

%

 

 

0.49

%

 

 

110

%

Return on average equity (ROAE)

 

 

10.56

%

 

 

5.11

%

 

 

5.45

%

 

 

107

%

Return on average tangible common equity (ROATCE) (H)

 

 

11.56

%

 

 

5.55

%

 

 

6.01

%

 

 

108

%

Net interest margin (tax-equivalent basis)

 

 

2.38

%

 

 

2.31

%

 

 

0.07

%

 

 

3

%

GAAP efficiency ratio (I)

 

 

59.99

%

 

 

65.99

%

 

 

(6.00

)%

 

 

-9

%

Operating expenses / average assets

 

 

2.10

%

 

 

2.16

%

 

 

(0.06

)%

 

 

-3

%

(A) Gain on loans held for sale at fair value (mortgage banking), fee income related to loan level, back-to-back swaps, gain on sale of SBA loans and corporate advisory fee income are all included in “capital markets activity” as referred to within the earnings release.

(B) Includes $1.1 million (2021) and $7.4 million (2020) of gains on sale of PPP loans of $57 million and $355 million completed in the twelve months ended December 31, 2021 and 2020, respectively.

(C) Includes income of $722,000 from the referral of PPP loans to a third-party firm during the twelve months ended December 31, 2021.

(D) 2021 included $1.5 million of severance expense related to corporate restructuring.

(E) 2020 included a higher provision for loan and lease losses primarily due to the COVID-19 pandemic.

(F) 2020 included a $3.2 million tax benefit related to the carryback of tax NOLs to prior years when the federal tax rate was 14% higher.

(G) Total revenue equals the sum of net interest income plus total other income.

(H) Return on average tangible common equity is calculated by dividing tangible common equity by net income.  See Non-GAAP financial measures reconciliation included in these tables.

(I) Calculated as total operating expenses as a percentage of total revenue.  For Non-GAAP efficiency ratio, see the Non-GAAP financial measures reconciliation included in these tables.

PEAPACK-GLADSTONE FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)

 

 

As of

 

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

Dec 31,

 

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

5,929

 

 

$

9,299

 

 

$

12,684

 

 

$

8,159

 

 

$

10,629

 

Federal funds sold

 

 

 

 

 

 

 

 

 

 

 

102

 

 

 

102

 

Interest-earning deposits

 

 

140,875

 

 

 

606,913

 

 

 

190,778

 

 

 

468,276

 

 

 

642,591

 

Total cash and cash equivalents

 

 

146,804

 

 

 

616,212

 

 

 

203,462

 

 

 

476,537

 

 

 

653,322

 

Securities held to maturity

 

 

108,680

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities available for sale

 

 

796,753

 

 

 

843,779

 

 

 

823,820

 

 

 

875,301

 

 

 

622,689

 

Equity security

 

 

14,685

 

 

 

14,824

 

 

 

14,894

 

 

 

14,852

 

 

 

15,117

 

FHLB and FRB stock, at cost

 

 

12,950

 

 

 

12,950

 

 

 

12,901

 

 

 

13,699

 

 

 

13,709

 

Residential mortgage

 

 

501,340

 

 

 

510,878

 

 

 

504,181

 

 

 

498,884

 

 

 

520,188

 

Multifamily mortgage

 

 

1,595,866

 

 

 

1,497,683

 

 

 

1,420,043

 

 

 

1,178,940

 

 

 

1,127,198

 

Commercial mortgage

 

 

662,626

 

 

 

680,107

 

 

 

702,777

 

 

 

697,599

 

 

 

694,034

 

Commercial loans (A)

 

 

2,009,252

 

 

 

1,833,532

 

 

 

1,880,830

 

 

 

1,982,570

 

 

 

1,975,337

 

Consumer loans

 

 

33,687

 

 

 

30,689

 

 

 

31,889

 

 

 

36,519

 

 

 

37,016

 

Home equity lines of credit

 

 

40,803

 

 

 

42,512

 

 

 

44,062

 

 

 

45,624

 

 

 

50,547

 

Other loans

 

 

238

 

 

 

245

 

 

 

204

 

 

 

199

 

 

 

225

 

Total loans

 

 

4,843,812

 

 

 

4,595,646

 

 

 

4,583,986

 

 

 

4,440,335

 

 

 

4,404,545

 

Less: Allowances for loan and lease losses

 

 

61,697

 

 

 

65,133

 

 

 

63,505

 

 

 

67,536

 

 

 

67,309

 

Net loans

 

 

4,782,115

 

 

 

4,530,513

 

 

 

4,520,481

 

 

 

4,372,799

 

 

 

4,337,236

 

Premises and equipment

 

 

23,044

 

 

 

23,123

 

 

 

23,261

 

 

 

23,260

 

 

 

21,609

 

Other real estate owned

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

50

 

Accrued interest receivable

 

 

21,589

 

 

 

22,790

 

 

 

23,117

 

 

 

23,916

 

 

 

22,495

 

Bank owned life insurance

 

 

46,663

 

 

 

46,510

 

 

 

46,605

 

 

 

46,448

 

 

 

46,809

 

Goodwill and other intangible assets

 

 

48,902

 

 

 

49,333

 

 

 

43,156

 

 

 

43,524

 

 

 

43,891

 

Finance lease right-of-use assets

 

 

3,582

 

 

 

3,769

 

 

 

3,956

 

 

 

4,143

 

 

 

4,330

 

Operating lease right-of-use assets

 

 

9,775

 

 

 

10,307

 

 

 

9,569

 

 

 

10,186

 

 

 

9,421

 

Other assets (B)

 

 

62,451

 

 

 

66,175

 

 

 

66,466

 

 

 

64,912

 

 

 

99,764

 

TOTAL ASSETS

 

$

6,077,993

 

 

$

6,240,285

 

 

$

5,791,688

 

 

$

5,969,627

 

 

$

5,890,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

956,482

 

 

$

986,765

 

 

$

959,494

 

 

$

908,922

 

 

$

833,500

 

Interest-bearing demand deposits

 

 

2,287,894

 

 

 

2,355,892

 

 

 

1,978,497

 

 

 

1,987,567

 

 

 

1,849,254

 

Savings

 

 

154,914

 

 

 

168,831

 

 

 

147,227

 

 

 

141,743

 

 

 

130,731

 

Money market accounts

 

 

1,307,051

 

 

 

1,287,686

 

 

 

1,213,992

 

 

 

1,256,605

 

 

 

1,298,885

 

Certificates of deposit – Retail

 

 

409,608

 

 

 

426,981

 

 

 

446,143

 

 

 

474,668

 

 

 

530,222

 

Certificates of deposit – Listing Service

 

 

31,382

 

 

 

31,382

 

 

 

31,631

 

 

 

31,631

 

 

 

32,128

 

Subtotal “customer” deposits

 

 

5,147,331

 

 

 

5,257,537

 

 

 

4,776,984

 

 

 

4,801,136

 

 

 

4,674,720

 

IB Demand – Brokered

 

 

85,000

 

 

 

85,000

 

 

 

85,000

 

 

 

110,000

 

 

 

110,000

 

Certificates of deposit – Brokered

 

 

33,818

 

 

 

33,804

 

 

 

33,791

 

 

 

33,777

 

 

 

33,764

 

Total deposits

 

 

5,266,149

 

 

 

5,376,341

 

 

 

4,895,775

 

 

 

4,944,913

 

 

 

4,818,484

 

Short-term borrowings

 

 

 

 

 

 

 

 

 

 

 

15,000

 

 

 

15,000

 

FHLB advances

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Paycheck Protection Program Liquidity Facility (C)

 

 

 

 

 

48,496

 

 

 

83,586

 

 

 

168,180

 

 

 

177,086

 

Finance lease liability

 

 

5,820

 

 

 

6,063

 

 

 

6,299

 

 

 

6,528

 

 

 

6,753

 

Operating lease liability

 

 

10,111

 

 

 

10,644

 

 

 

9,902

 

 

 

10,509

 

 

 

9,737

 

Subordinated debt, net (D)

 

 

132,701

 

 

 

132,629

 

 

 

132,557

 

 

 

181,837

 

 

 

181,794

 

Other liabilities (B)

 

 

116,824

 

 

 

123,098

 

 

 

125,110

 

 

 

120,219

 

 

 

154,466

 

TOTAL LIABILITIES

 

 

5,531,605

 

 

 

5,697,271

 

 

 

5,253,229

 

 

 

5,447,186

 

 

 

5,363,320

 

Shareholders’ equity

 

 

546,388

 

 

 

543,014

 

 

 

538,459

 

 

 

522,441

 

 

 

527,122

 

TOTAL LIABILITIES AND

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

$

6,077,993

 

 

$

6,240,285

 

 

$

5,791,688

 

 

$

5,969,627

 

 

$

5,890,442

 

Assets under management and / or administration at
   Peapack-Gladstone Banks Private Wealth Management
   Division (market value, not included above-dollars in billions)

 

$

11.1

 

 

$

10.3

 

 

$

9.8

 

 

$

9.4

 

 

$

8.8

 

(A) Includes PPP loans of $14 million at December 31, 2021; $49 million at September 30, 2021; $84 million at June 30, 2021; $233 million at March 31, 2021; and $196 million at December 31, 2020.

(B) The change in other assets and other liabilities was primarily due to the change in the fair value of our back-to-back swap program.

(C) Represents funding provided by the Federal Reserve for pledged PPP loans.

(D) The decrease was due to the redemption of a $50 million subordinated debt on June 30, 2021. 

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)

 

 

As of

 

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

Dec 31,

 

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Asset Quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due over 90 days and still accruing

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Nonaccrual loans (A)

 

 

15,573

 

 

 

25,925

 

 

 

5,962

 

 

 

11,767

 

 

 

11,410

 

Other real estate owned

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

50

 

Total nonperforming assets

 

$

15,573

 

 

$

25,925

 

 

$

5,962

 

 

$

11,817

 

 

$

11,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 

0.32

%

 

 

0.56

%

 

 

0.13

%

 

 

0.27

%

 

 

0.26

%

Nonperforming assets to total assets

 

 

0.26

%

 

 

0.42

%

 

 

0.10

%

 

 

0.20

%

 

 

0.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing TDRs (B)(C)

 

$

2,479

 

 

$

416

 

 

$

190

 

 

$

197

 

 

$

201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due 30 through 89 days and still accruing (D)(E)

 

$

8,606

 

 

$

1,193

 

 

$

1,678

 

 

$

1,622

 

 

$

5,053

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans subject to special mention

 

$

116,490

 

 

$

115,935

 

 

$

148,601

 

 

$

166,013

 

 

$

162,103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified loans

 

$

50,702

 

 

$

51,937

 

 

$

11,178

 

 

$

25,714

 

 

$

37,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

18,052

 

 

$

26,341

 

 

$

6,498

 

 

$

11,964

 

 

$

16,204

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

$

65,133

 

 

$

63,505

 

 

$

67,536

 

 

$

67,309

 

 

$

66,145

 

Provision for loan and lease losses

 

 

3,750

 

 

 

1,600

 

 

 

900

 

 

 

225

 

 

 

2,350

 

(Charge-offs)/recoveries, net

 

 

(7,186

)

 

 

28

 

 

 

(4,931

)

 

 

2

 

 

 

(1,186

)

End of period

 

$

61,697

 

 

$

65,133

 

 

$

63,505

 

 

$

67,536

 

 

$

67,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ALLL to nonperforming loans

 

 

396.18

%

 

 

251.24

%

 

 

1065.16

%

 

 

573.94

%

 

 

589.91

%

ALLL to total loans

 

 

1.27

%

 

 

1.42

%

 

 

1.39

%

 

 

1.52

%

 

 

1.53

%

General ALLL to total loans (F)

 

 

1.19

%

 

 

1.26

%

 

 

1.38

%

 

 

1.45

%

 

 

1.47

%

(A) Increase at September 30, 2021 due to one large CRE loan with a retail component, located in Manhattan.

(B) Amounts reflect TDRs that are paying according to restructured terms.

(C) Amount excludes $1.1 million at December 31, 2021, $4.0 million at September 30, 2021, $3.9 million at June 30, 2021, $3.9 million at March 31, 2021 and $4.0 million at December 31, 2020 of TDRs included in nonaccrual loans.

(D) Includes $6.9 million for one equipment lease principally due to administrative issues with the servicer and at the lessee/borrower at December 31, 2021. Payment was received in January.

(E) December 31, 2020 includes $1.3 million of residential loans that are classified as delinquent due to an escrow payment shortage due to a recent change in escrow payment requirement.

(F) Total ALLL less specific reserves equals general ALLL.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

 

2021

 

 

2021

 

 

2020

 

Capital Adequacy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity to total assets (A)

 

 

 

 

8.99

%

 

 

 

 

8.70

%

 

 

 

 

8.95

%

Tangible Equity to tangible assets (B)

 

 

 

 

8.25

%

 

 

 

 

7.97

%

 

 

 

 

8.27

%

Book value per share (C)

 

 

 

$

29.70

 

 

 

 

$

29.15

 

 

 

 

$

27.78

 

Tangible Book Value per share (D)

 

 

 

$

27.05

 

 

 

 

$

26.50

 

 

 

 

$

25.47

 

 

 

 

December 31,

 

 

September 30,

 

 

December 31,

 

 

 

2021

 

 

2021

 

 

2020

 

Regulatory Capital  Holding Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage

 

$

508,231

 

 

8.29%

 

 

$

501,188

 

 

8.56%

 

 

$

483,535

 

 

8.53%

 

Tier I capital to risk-weighted assets

 

 

508,231

 

 

 

10.62

 

 

 

501,188

 

 

10.97

 

 

 

483,535

 

 

11.93

 

Common equity tier I capital ratio

   to risk-weighted assets

 

 

508,207

 

 

 

10.62

 

 

 

501,159

 

 

10.97

 

 

 

483,500

 

 

11.93

 

Tier I & II capital to risk-weighted assets

 

 

700,790

 

 

 

14.64

 

 

 

691,044

 

 

15.12

 

 

 

716,210

 

 

17.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory Capital  Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage (E)

 

$

612,762

 

 

9.99%

 

 

$

594,610

 

 

10.15%

 

 

$

549,575

 

 

9.71%

 

Tier I capital to risk-weighted assets (F)

 

 

612,762

 

 

 

12.80

 

 

 

594,610

 

 

13.01

 

 

 

549,575

 

 

 

13.55

 

Common equity tier I capital ratio

   to risk-weighted assets (G)

 

 

612,738

 

 

 

12.80

 

 

 

594,581

 

 

13.01

 

 

 

549,540

 

 

   

13.55

 

 

Tier I & II capital to risk-weighted assets (H)

 

 

672,614

 

 

 

14.05

 

 

 

651,841

 

 

14.26

 

 

 

600,478

 

 

14.81

 

(A) Equity to total assets is calculated as total shareholders’ equity as a percentage of total assets at period end.

(B) Tangible equity and tangible assets are calculated by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. Tangible equity as a percentage of tangible assets at period end is calculated by dividing tangible equity by tangible assets at period end.  See Non-GAAP financial measures reconciliation included in these tables.

(C) Book value per common share is calculated by dividing shareholders’ equity by period end common shares outstanding

(D) Tangible book value per share excludes intangible assets.  Tangible book value per share is calculated by dividing tangible equity by period end common shares outstanding.  See Non-GAAP financial measures reconciliation tables.

(E) Regulatory well capitalized standard = 5.00% ($307 million)

(F) Regulatory well capitalized standard = 8.00% ($383 million)

(G) Regulatory well capitalized standard = 6.50% ($311 million)

(H) Regulatory well capitalized standard = 10.00% ($479 million)

PEAPACK-GLADSTONE FINANCIAL CORPORATION
LOANS CLOSED
(Dollars in Thousands)
(Unaudited)

 

 

For the Quarters Ended

 

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

Dec 31,

 

 

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Residential loans retained

 

$

22,953

 

 

$

36,845

 

 

$

37,083

 

 

$

15,814

 

 

$

22,316

 

Residential loans sold

 

 

20,694

 

 

 

24,041

 

 

 

25,432

 

 

 

45,873

 

 

 

64,630

 

Total residential loans

 

 

43,647

 

 

 

60,886

 

 

 

62,515

 

 

 

61,687

 

 

 

86,946

 

Commercial real estate

 

 

16,134

 

 

 

14,944

 

 

 

12,243

 

 

 

38,363

 

 

 

 

Multifamily

 

 

162,740

 

 

 

120,716

 

 

 

255,820

 

 

 

85,009

 

 

 

1,184

 

Commercial (C&I) loans (A) (B)

 

 

341,886

 

 

 

143,121

 

 

 

141,285

 

 

 

129,141

 

 

 

218,235

 

SBA (C)

 

 

27,630

 

 

 

11,570

 

 

 

15,976

 

 

 

58,730

 

 

 

8,355

 

Wealth lines of credit (A)

 

 

7,500

 

 

 

10,020

 

 

 

3,200

 

 

 

2,475

 

 

 

3,925

 

Total commercial loans

 

 

555,890

 

 

 

300,371

 

 

 

428,524

 

 

 

313,718

 

 

 

231,699

 

Installment loans

 

 

94

 

 

 

178

 

 

 

25

 

 

 

63

 

 

 

690

 

Home equity lines of credit (A)

 

 

5,359

 

 

 

2,535

 

 

 

4,140

 

 

 

1,899

 

 

 

2,330

 

Total loans closed

 

$

604,990

 

 

$

363,970

 

 

$

495,204

 

 

$

377,367

 

 

$

321,665

 

 

 

 

For the Twelve Months Ended

 

 

 

Dec 31,

 

 

Dec 31,

 

 

 

2021

 

 

2020

 

Residential loans retained

 

$

112,695

 

 

$

88,373

 

Residential loans sold

 

 

116,040

 

 

 

175,603

 

Total residential loans

 

 

228,735

 

 

 

263,976

 

Commercial real estate

 

 

81,684

 

 

 

11,219

 

Multifamily

 

 

624,285

 

 

 

76,642

 

Commercial (C&I) loans (A) (B)

 

 

755,433

 

 

 

478,485

 

SBA (C)

 

 

113,906

 

 

 

622,798

 

Wealth lines of credit (A)

 

 

23,195

 

 

 

9,675

 

Total commercial loans

 

 

1,598,503

 

 

 

1,198,819

 

Installment loans

 

 

360

 

 

 

2,149

 

Home equity lines of credit (A)

 

 

13,933

 

 

 

15,001

 

Total loans closed

 

$

1,841,531

 

 

$

1,479,945

 

(A) Includes loans and lines of credit that closed in the period but not necessarily funded.

(B) Includes equipment finance.

(C) Includes PPP loans of $9 million for the quarter ended June 30, 2021, $47 million for the quarter ended March 31, 2021 and $596 million for the twelve months ended December 31, 2020.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Average

 

 

Income/

 

 

 

 

 

 

Average

 

 

Income/

 

 

 

 

 

 

 

Balance

 

 

Expense

 

 

Yield

 

 

Balance

 

 

Expense

 

 

Yield

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (A)

 

$

885,390

 

 

$

3,104

 

 

 

1.40

%

 

$

636,417

 

 

$

2,033

 

 

 

1.28

%

Tax-exempt (A) (B)

 

 

5,443

 

 

 

54

 

 

 

3.97

 

 

 

8,137

 

 

 

101

 

 

 

4.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (B) (C):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages

 

 

510,562

 

 

 

3,799

 

 

 

2.98

 

 

 

520,123

 

 

 

4,372

 

 

 

3.36

 

Commercial mortgages

 

 

2,209,160

 

 

 

17,708

 

 

 

3.21

 

 

 

1,865,953

 

 

 

14,796

 

 

 

3.17

 

Commercial

 

 

1,826,640

 

 

 

16,660

 

 

 

3.65

 

 

 

1,943,855

 

 

 

16,587

 

 

 

3.41

 

Commercial construction

 

 

20,426

 

 

 

176

 

 

 

3.45

 

 

 

10,376

 

 

 

108

 

 

 

4.16

 

Installment

 

 

33,400

 

 

 

253

 

 

 

3.03

 

 

 

44,581

 

 

 

320

 

 

 

2.87

 

Home equity

 

 

41,955

 

 

 

346

 

 

 

3.30

 

 

 

51,545

 

 

 

429

 

 

 

3.33

 

Other

 

 

270

 

 

 

6

 

 

 

8.89

 

 

 

281

 

 

 

6

 

 

 

8.54

 

Total loans

 

 

4,642,413

 

 

 

38,948

 

 

 

3.36

 

 

 

4,436,714

 

 

 

36,618

 

 

 

3.30

 

Federal funds sold

 

 

 

 

 

 

 

 

 

 

 

102

 

 

 

 

 

 

0.25

 

Interest-earning deposits

 

 

513,650

 

 

 

178

 

 

 

0.14

 

 

 

614,024

 

 

 

148

 

 

 

0.10

 

Total interest-earning assets

 

 

6,046,896

 

 

 

42,284

 

 

 

2.80

%

 

 

5,695,394

 

 

 

38,900

 

 

 

2.73

%

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

11,517

 

 

 

 

 

 

 

 

 

 

 

9,632

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

 

(65,542

)

 

 

 

 

 

 

 

 

 

 

(68,862

)

 

 

 

 

 

 

 

 

Premises and equipment

 

 

23,117

 

 

 

 

 

 

 

 

 

 

 

21,698

 

 

 

 

 

 

 

 

 

Other assets

 

 

182,154

 

 

 

 

 

 

 

 

 

 

 

238,856

 

 

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 

151,246

 

 

 

 

 

 

 

 

 

 

 

201,324

 

 

 

 

 

 

 

 

 

Total assets

 

$

6,198,142

 

 

 

 

 

 

 

 

 

 

$

5,896,718

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

2,321,970

 

 

$

1,327

 

 

 

0.23

%

 

$

1,850,917

 

 

$

1,059

 

 

 

0.23

%

Money markets

 

 

1,290,334

 

 

 

678

 

 

 

0.21

 

 

 

1,273,681

 

 

 

811

 

 

 

0.25

 

Savings

 

 

152,570

 

 

 

20

 

 

 

0.05

 

 

 

128,195

 

 

 

17

 

 

 

0.05

 

Certificates of deposit – retail

 

 

453,127

 

 

 

725

 

 

 

0.64

 

 

 

602,068

 

 

 

2,106

 

 

 

1.40

 

Subtotal interest-bearing deposits

 

 

4,218,001

 

 

 

2,750

 

 

 

0.26

 

 

 

3,854,861

 

 

 

3,993

 

 

 

0.41

 

Interest-bearing demand – brokered

 

 

85,000

 

 

 

387

 

 

 

1.82

 

 

 

113,696

 

 

 

514

 

 

 

1.81

 

Certificates of deposit – brokered

 

 

33,810

 

 

 

267

 

 

 

3.16

 

 

 

33,756

 

 

 

267

 

 

 

3.16

 

Total interest-bearing deposits

 

 

4,336,811

 

 

 

3,404

 

 

 

0.31

 

 

 

4,002,313

 

 

 

4,774

 

 

 

0.48

 

Borrowings

 

 

25,890

 

 

 

25

 

 

 

0.39

 

 

 

244,753

 

 

 

616

 

 

 

1.01

 

Capital lease obligation

 

 

5,913

 

 

 

71

 

 

 

4.80

 

 

 

6,832

 

 

 

82

 

 

 

4.80

 

Subordinated debt

 

 

132,659

 

 

 

1,363

 

 

 

4.11

 

 

 

94,437

 

 

 

1,325

 

 

 

5.61

 

Total interest-bearing liabilities

 

 

4,501,273

 

 

 

4,863

 

 

 

0.43

%

 

 

4,348,335

 

 

 

6,797

 

 

 

0.63

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

1,042,477

 

 

 

 

 

 

 

 

 

 

 

858,004

 

 

 

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

111,357

 

 

 

 

 

 

 

 

 

 

 

166,933

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

1,153,834

 

 

 

 

 

 

 

 

 

 

 

1,024,937

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

543,035

 

 

 

 

 

 

 

 

 

 

 

523,446

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

6,198,142

 

 

 

 

 

 

 

 

 

 

$

5,896,718

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

37,421

 

 

 

 

 

 

 

 

 

 

$

32,103

 

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

2.37

%

 

 

 

 

 

 

 

 

 

 

2.10

%

Net interest margin (D)

 

 

 

 

 

 

 

 

 

 

2.46

%

 

 

 

 

 

 

 

 

 

 

2.25

%

(A) Average balances for available for sale securities are based on amortized cost.

(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.

(C) Loans are stated net of unearned income and include nonaccrual loans.

(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 

 

December 31, 2021

 

 

September 30, 2021

 

 

 

Average

 

 

Income/

 

 

 

 

 

 

Average

 

 

Income/

 

 

 

 

 

 

 

Balance

 

 

Expense

 

 

Yield

 

 

Balance

 

 

Expense

 

 

Yield

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (A)

 

$

885,390

 

 

$

3,104

 

 

 

1.40

%

 

$

820,574

 

 

$

2,824

 

 

 

1.38

%

Tax-exempt (A) (B)

 

 

5,443

 

 

 

54

 

 

 

3.97

 

 

 

6,035

 

 

 

64

 

 

 

4.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (B) (C):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages

 

 

510,562

 

 

 

3,799

 

 

 

2.98

 

 

 

503,621

 

 

 

3,779

 

 

 

3.00

 

Commercial mortgages

 

 

2,209,160

 

 

 

17,708

 

 

 

3.21

 

 

 

2,133,259

 

 

 

16,114

 

 

 

3.02

 

Commercial

 

 

1,826,640

 

 

 

16,660

 

 

 

3.65

 

 

 

1,826,368

 

 

 

16,553

 

 

 

3.63

 

Commercial construction

 

 

20,426

 

 

 

176

 

 

 

3.45

 

 

 

24,596

 

 

 

198

 

 

 

3.22

 

Installment

 

 

33,400

 

 

 

253

 

 

 

3.03

 

 

 

32,219

 

 

 

245

 

 

 

3.04

 

Home equity

 

 

41,955

 

 

 

346

 

 

 

3.30

 

 

 

43,182

 

 

 

357

 

 

 

3.31

 

Other

 

 

270

 

 

 

6

 

 

 

8.89

 

 

 

252

 

 

 

5

 

 

 

7.94

 

Total loans

 

 

4,642,413

 

 

 

38,948

 

 

 

3.36

 

 

 

4,563,497

 

 

 

37,251

 

 

 

3.27

 

Federal funds sold

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning deposits

 

 

513,650

 

 

 

178

 

 

 

0.14

 

 

 

413,623

 

 

 

142

 

 

 

0.14

 

Total interest-earning assets

 

 

6,046,896

 

 

 

42,284

 

 

 

2.80

%

 

 

5,803,729

 

 

 

40,281

 

 

 

2.78

%

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

11,517

 

 

 

 

 

 

 

 

 

 

 

8,592

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

 

(65,542

)

 

 

 

 

 

 

 

 

 

 

(64,100

)

 

 

 

 

 

 

 

 

Premises and equipment

 

 

23,117

 

 

 

 

 

 

 

 

 

 

 

23,311

 

 

 

 

 

 

 

 

 

Other assets

 

 

182,154

 

 

 

 

 

 

 

 

 

 

 

201,287

 

 

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 

151,246

 

 

 

 

 

 

 

 

 

 

 

169,090

 

 

 

 

 

 

 

 

 

Total assets

 

$

6,198,142

 

 

 

 

 

 

 

 

 

 

$

5,972,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

2,321,970

 

 

$

1,327

 

 

 

0.23

%

 

$

2,098,827

 

 

$

1,177

 

 

 

0.22

%

Money markets

 

 

1,290,334

 

 

 

678

 

 

 

0.21

 

 

 

1,257,760

 

 

 

683

 

 

 

0.22

 

Savings

 

 

152,570

 

 

 

20

 

 

 

0.05

 

 

 

152,759

 

 

 

20

 

 

 

0.05

 

Certificates of deposit – retail

 

 

453,127

 

 

 

725

 

 

 

0.64

 

 

 

461,917

 

 

 

836

 

 

 

0.72

 

Subtotal interest-bearing deposits

 

 

4,218,001

 

 

 

2,750

 

 

 

0.26

 

 

 

3,971,263

 

 

 

2,716

 

 

 

0.27

 

Interest-bearing demand – brokered

 

 

85,000

 

 

 

387

 

 

 

1.82

 

 

 

85,000

 

 

 

385

 

 

 

1.81

 

Certificates of deposit – brokered

 

 

33,810

 

 

 

267

 

 

 

3.16

 

 

 

33,796

 

 

 

266

 

 

 

3.15

 

Total interest-bearing deposits

 

 

4,336,811

 

 

 

3,404

 

 

 

0.31

 

 

 

4,090,059

 

 

 

3,367

 

 

 

0.33

 

Borrowings

 

 

25,890

 

 

 

25

 

 

 

0.39

 

 

 

64,332

 

 

 

57

 

 

 

0.35

 

Capital lease obligation

 

 

5,913

 

 

 

71

 

 

 

4.80

 

 

 

6,147

 

 

 

74

 

 

 

4.82

 

Subordinated debt

 

 

132,659

 

 

 

1,363

 

 

 

4.11

 

 

 

132,588

 

 

 

1,358

 

 

 

4.10

 

Total interest-bearing liabilities

 

 

4,501,273

 

 

 

4,863

 

 

 

0.43

%

 

 

4,293,126

 

 

 

4,856

 

 

 

0.45

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

1,042,477

 

 

 

 

 

 

 

 

 

 

 

997,450

 

 

 

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

111,357

 

 

 

 

 

 

 

 

 

 

 

137,387

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

1,153,834

 

 

 

 

 

 

 

 

 

 

 

1,134,837

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

543,035

 

 

 

 

 

 

 

 

 

 

 

544,856

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

6,198,142

 

 

 

 

 

 

 

 

 

 

$

5,972,819

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

37,421

 

 

 

 

 

 

 

 

 

 

$

35,425

 

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

2.37

%

 

 

 

 

 

 

 

 

 

 

2.33

%

Net interest margin (D)

 

 

 

 

 

 

 

 

 

 

2.46

%

 

 

 

 

 

 

 

 

 

 

2.42

%

(A) Average balances for available for sale securities are based on amortized cost.

(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.

(C) Loans are stated net of unearned income and include nonaccrual loans.

(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET

UNAUDITED

TWELVE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 

 

December 31, 2021

 

 

December 31, 2020

 

 

 

Average

 

 

Income/

 

 

 

 

 

 

Average

 

 

Income/

 

 

 

 

 

 

 

Balance

 

 

Expense

 

 

Yield

 

 

Balance

 

 

Expense

 

 

Yield

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (A)

 

$

838,174

 

 

$

11,577

 

 

 

1.38

%

 

$

510,245

 

 

$

8,782

 

 

 

1.72

%

Tax-exempt (A) (B)

 

 

6,579

 

 

 

296

 

 

 

4.50

 

 

 

9,479

 

 

 

477

 

 

 

5.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (B) (C):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages

 

 

503,616

 

 

 

15,359

 

 

 

3.05

 

 

 

528,687

 

 

 

17,882

 

 

 

3.38

 

Commercial mortgages

 

 

2,032,318

 

 

 

63,298

 

 

 

3.11

 

 

 

1,958,262

 

 

 

64,541

 

 

 

3.30

 

Commercial

 

 

1,881,683

 

 

 

66,652

 

 

 

3.54

 

 

 

1,969,115

 

 

 

71,037

 

 

 

3.61

 

Commercial construction

 

 

20,420

 

 

 

692

 

 

 

3.39

 

 

 

5,932

 

 

 

295

 

 

 

4.97

 

Installment

 

 

34,390

 

 

 

1,030

 

 

 

3.00

 

 

 

51,007

 

 

 

1,532

 

 

 

3.00

 

Home equity

 

 

44,735

 

 

 

1,479

 

 

 

3.31

 

 

 

53,853

 

 

 

1,940

 

 

 

3.60

 

Other

 

 

247

 

 

 

21

 

 

 

8.50

 

 

 

311

 

 

 

29

 

 

 

9.32

 

Total loans

 

 

4,517,409

 

 

 

148,531

 

 

 

3.29

 

 

 

4,567,167

 

 

 

157,256

 

 

 

3.44

 

Federal funds sold

 

 

48

 

 

 

 

 

 

0.13

 

 

 

102

 

 

 

 

 

 

0.25

 

Interest-earning deposits

 

 

477,477

 

 

 

545

 

 

 

0.11

 

 

 

504,753

 

 

 

968

 

 

 

0.19

 

Total interest-earning assets

 

 

5,839,687

 

 

 

160,949

 

 

 

2.76

%

 

 

5,591,746

 

 

 

167,483

 

 

 

3.00

%

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

10,396

 

 

 

 

 

 

 

 

 

 

 

7,025

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

 

(67,075

)

 

 

 

 

 

 

 

 

 

 

(61,401

)

 

 

 

 

 

 

 

 

Premises and equipment

 

 

23,094

 

 

 

 

 

 

 

 

 

 

 

21,455

 

 

 

 

 

 

 

 

 

Other assets

 

 

197,893

 

 

 

 

 

 

 

 

 

 

 

219,287

 

 

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 

164,308

 

 

 

 

 

 

 

 

 

 

 

186,366

 

 

 

 

 

 

 

 

 

Total assets

 

$

6,003,995

 

 

 

 

 

 

 

 

 

 

$

5,778,112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

2,078,658

 

 

$

4,426

 

 

 

0.21

%

 

$

1,742,846

 

 

$

7,279

 

 

 

0.42

%

Money markets

 

 

1,260,865

 

 

 

2,882

 

 

 

0.23

 

 

 

1,227,295

 

 

 

6,185

 

 

 

0.50

 

Savings

 

 

146,210

 

 

 

75

 

 

 

0.05

 

 

 

120,780

 

 

 

63

 

 

 

0.05

 

Certificates of deposit – retail

 

 

483,889

 

 

 

4,058

 

 

 

0.84

 

 

 

654,652

 

 

 

11,476

 

 

 

1.75

 

Subtotal interest-bearing deposits

 

 

3,969,622

 

 

 

11,441

 

 

 

0.29

 

 

 

3,745,573

 

 

 

25,003

 

 

 

0.67

 

Interest-bearing demand – brokered

 

 

96,301

 

 

 

1,721

 

 

 

1.79

 

 

 

143,388

 

 

 

2,773

 

 

 

1.93

 

Certificates of deposit – brokered

 

 

33,790

 

 

 

1,058

 

 

 

3.13

 

 

 

33,735

 

 

 

1,061

 

 

 

3.15

 

Total interest-bearing deposits

 

 

4,099,713

 

 

 

14,220

 

 

 

0.35

 

 

 

3,922,696

 

 

 

28,837

 

 

 

0.74

 

Borrowings

 

 

110,077

 

 

 

473

 

 

 

0.43

 

 

 

308,814

 

 

 

3,976

 

 

 

1.29

 

Capital lease obligation

 

 

6,260

 

 

 

300

 

 

 

4.79

 

 

 

7,157

 

 

 

343

 

 

 

4.79

 

Subordinated debt

 

 

156,888

 

 

 

7,013

 

 

 

4.47

 

 

 

86,246

 

 

 

4,992

 

 

 

5.79

 

Total interest-bearing liabilities

 

 

4,372,938

 

 

 

22,006

 

 

 

0.50

%

 

 

4,324,913

 

 

 

38,148

 

 

 

0.88

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

959,912

 

 

 

 

 

 

 

 

 

 

 

787,191

 

 

 

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

134,948

 

 

 

 

 

 

 

 

 

 

 

153,648

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

1,094,860

 

 

 

 

 

 

 

 

 

 

 

940,839

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

536,197

 

 

 

 

 

 

 

 

 

 

 

512,360

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

6,003,995

 

 

 

 

 

 

 

 

 

 

$

5,778,112

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

138,943

 

 

 

 

 

 

 

 

 

 

$

129,335

 

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

2.26

%

 

 

 

 

 

 

 

 

 

 

2.12

%

Net interest margin (D)

 

 

 

 

 

 

 

 

 

 

2.38

%

 

 

 

 

 

 

 

 

 

 

2.31

%

(A) Average balances for available for sale securities are based on amortized cost.

(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.

(C) Loans are stated net of unearned income and include nonaccrual loans.

(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
NON-GAAP FINANCIAL MEASURES RECONCILIATION

Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts.  We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively.  We calculate tangible book value per share by dividing tangible equity by period end common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders’ equity by period end common shares outstanding.  We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end.  We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.

The efficiency ratio is a non-GAAP measure of expense control relative to recurring revenue.  We calculate the efficiency ratio by dividing total noninterest expenses, excluding other real estate owned provision, as determined under GAAP, by net interest income and total noninterest income as determined under GAAP, but excluding net gains/(losses) on loans held for sale at lower of cost or fair value and excluding net gains on securities from this calculation, which we refer to below as recurring revenue.  We believe that this provides a reasonable measure of core expenses relative to core revenue.

We believe these non-GAAP financial measures provide information that is important to investors and useful in understanding our financial position, results and ratios because our management internally assesses our performance based, in part, on these measures.  However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures.  As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titles measures reported by other companies.  A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share and efficiency ratio to the underlying GAAP numbers is set forth below.

(Dollars in thousands, except share data)

 

 

Three Months Ended

 

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

Dec 31,

 

Tangible Book Value Per Share

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Shareholders’ equity

 

$

546,388

 

 

$

543,014

 

 

$

538,459

 

 

$

522,441

 

 

$

527,122

 

Less:  Intangible assets, net

 

 

48,902

 

 

 

49,333

 

 

 

43,156

 

 

 

43,524

 

 

 

43,891

 

Tangible equity

 

$

497,486

 

 

$

493,681

 

 

$

495,303

 

 

$

478,917

 

 

$

483,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period end shares outstanding

 

 

18,393,888

 

 

 

18,627,910

 

 

 

18,829,877

 

 

 

19,034,870

 

 

 

18,974,703

 

Tangible book value per share

 

$

27.05

 

 

$

26.50

 

 

$

26.30

 

 

$

25.16

 

 

$

25.47

 

Book value per share

 

 

29.70

 

 

 

29.15

 

 

 

28.60

 

 

 

27.45

 

 

 

27.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Equity to Tangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

6,077,993

 

 

$

6,240,285

 

 

$

5,791,688

 

 

$

5,969,627

 

 

$

5,890,442

 

Less: Intangible assets, net

 

 

48,902

 

 

 

49,333

 

 

 

43,156

 

 

 

43,524

 

 

 

43,891

 

Tangible assets

 

$

6,029,091

 

 

$

6,190,952

 

 

$

5,748,532

 

 

$

5,926,103

 

 

$

5,846,551

 

Tangible equity to tangible assets

 

 

8.25

%

 

 

7.97

%

 

 

8.62

%

 

 

8.08

%

 

 

8.27

%

Equity to assets

 

 

8.99

%

 

 

8.70

%

 

 

9.30

%

 

 

8.75

%

 

 

8.95

%

 

 

 

Three Months Ended

 

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

Dec 31,

 

Return on Average Tangible Equity

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Net income

 

$

14,855

 

 

$

14,171

 

 

$

14,418

 

 

$

13,178

 

 

$

3,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders’ equity

 

$

543,035

 

 

$

544,856

 

 

$

530,971

 

 

$

525,643

 

 

$

523,446

 

Less:  Average intangible assets, net

 

 

49,151

 

 

 

48,757

 

 

 

43,366

 

 

 

43,742

 

 

 

40,336

 

Average tangible equity

 

$

493,884

 

 

$

496,099

 

 

$

487,605

 

 

$

481,901

 

 

$

483,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity

 

 

12.03

%

 

 

11.43

%

 

 

11.83

%

 

 

10.94

%

 

 

2.51

%

 

 

 

For the Twelve Months Ended

 

 

 

Dec 31,

 

 

Dec 31,

 

Return on Average Tangible Equity

 

2021

 

 

2020

 

Net income

 

$

56,622

 

 

$

26,192

 

 

 

 

 

 

 

 

 

 

Average shareholders’ equity

 

$

536,197

 

 

$

512,360

 

Less:  Average intangible assets, net

 

 

46,275

 

 

 

40,186

 

Average tangible equity

 

$

489,922

 

 

$

472,174

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity

 

 

11.56

%

 

 

5.55

%

 

 

 

Three Months Ended

 

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

Dec 31,

 

Efficiency Ratio

 

2021

 

 

2021

 

 

2021

 

 

2021

 

 

2020

 

Net interest income

 

$

37,212

 

 

$

35,211

 

 

$

33,845

 

 

$

31,793

 

 

$

31,735

 

Total other income

 

 

18,964

 

 

 

17,781

 

 

 

17,678

 

 

 

17,820

 

 

 

14,406

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Securities losses/(gains), net

 

 

139

 

 

 

70

 

 

 

(42

)

 

 

265

 

 

 

42

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Loss/(gain) on loans held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   at lower of cost or fair value

 

 

265

 

 

 

 

 

 

(1,125

)

 

 

(282

)

 

 

 

   Income from life insurance proceeds

 

 

 

 

 

 

 

 

(153

)

 

 

(302

)

 

 

 

   Loss on swap termination

 

 

 

 

 

 

 

 

842

 

 

 

 

 

 

 

Total recurring revenue

 

$

56,580

 

 

$

53,062

 

 

$

51,045

 

 

$

49,294

 

 

$

46,183

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

31,704

 

 

$

32,185

 

 

$

30,684

 

 

$

31,594

 

 

$

39,249

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   FHLB prepayment penalty

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,784

 

   Valuation allowance loans held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,425

 

   Write-off of subordinated debt costs

 

 

 

 

 

 

 

 

648

 

 

 

 

 

 

 

   Swap valuation allowance

 

 

893

 

 

 

1,350

 

 

 

 

 

 

 

 

 

 

   Severance expense

 

 

 

 

 

 

 

 

 

 

 

1,532

 

 

 

 

Total operating expenses

 

$

30,811

 

 

$

30,835

 

 

$

30,036

 

 

$

30,062

 

 

$

30,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

54.46

%

 

 

58.11

%

 

 

58.84

%

 

 

60.99

%

 

 

65.05

%

 

 

 

For the Twelve Months Ended

 

 

 

Dec 31,

 

 

Dec 31,

 

Efficiency Ratio

 

2021

 

 

2020

 

Net interest income

 

$

138,061

 

 

$

127,602

 

Total other income

 

 

72,243

 

 

 

61,760

 

Add:

 

 

 

 

 

 

 

 

   Securities losses/(gains), net

 

 

432

 

 

 

(281

)

Less:

 

 

 

 

 

 

 

 

   Loss/ on swap termination

 

 

842

 

 

 

 

   Income from life insurance proceeds

 

 

(455

)

 

 

 

   (Gain) on loans held for sale

 

 

 

 

 

 

 

 

   at lower of cost or fair value

 

 

(1,142

)

 

 

(7,426

)

Total recurring revenue

 

$

209,981

 

 

$

181,655

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

$

126,167

 

 

$

124,959

 

Less:

 

 

 

 

 

 

 

 

   FHLB prepayment penalty

 

 

 

 

 

4,784

 

   Valuation allowance loans held for sale

 

 

 

 

 

4,425

 

   Write-off of subordinated debt costs

 

 

648

 

 

 

 

   Swap valuation allowance

 

 

2,243

 

 

 

 

   Severance expense

 

 

1,532

 

 

 

 

Total operating expenses

 

$

121,744

 

 

$

115,750

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

57.98

%

 

 

63.72

%

Source link

The post Peapack-Gladstone Financial Corporation Reports Strong Fourth Quarter Results and Announces Another 5% Stock Repurchase Program first appeared on Smallcaps Daily.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button