via NewMediaWire
– Peapack-Gladstone Financial Corporation
(
NASDAQ Global Select Market: PGC) (the “Company”) announces
its fourth quarter 2023 financial results.
This earnings release should be read in
conjunction with the Company’s Q4 2023 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.
The Company recorded total revenue of $54.3
million, net income of $8.6 million and diluted earnings per share
(“EPS”) of $0.48 for the quarter ended December 31, 2023, compared
to revenue of $64.9 million, net income of $20.6 million and
diluted EPS of $1.12 for the quarter ended December 31, 2022.
The net interest margin stabilized at 2.29% for
the quarter ended December 31, 2023, compared to 2.28% for the
quarter ended September 30, 2023 and 3.12% for the quarter ended
December 31, 2022.
The Company’s return on average assets was
0.53%, return on average equity was 6.13%, and return on average
tangible equity was 6.68% for the quarter ended December 31, 2023.
Year over year deposits increased by $69.0 million to $5.3 billion
and loans grew $135.2 million to $5.4 billion as of December 31,
2023.
The Company’s liquidity position remains stable
as balance sheet liquidity (consisting of cash and cash equivalents
and securities available for sale) increased to $782.4 million as
of December 31, 2023, which was 12.08% of total assets. The
Company also had $2.7 billion of external borrowing capacity
available, which, when combined with balance sheet liquidity
provides us with 297% coverage of our uninsured deposits.
Approximately 78% of our deposits are presently covered by FDIC
insurance or are fully collateralized.
Douglas L. Kennedy, President and CEO said, “The
fourth quarter brings an end to an incredibly challenging year for
the financial services industry. A year that began with questions
regarding liquidity and uninsured deposit balances combined with
several interest rate increases by the Federal Reserve Bank in an
effort to control inflation, which resulted in a turbulent ride
from beginning to end. Our net interest margin stabilized
during the fourth quarter which provides an encouraging sign as we
turn the calendar to 2024. We continue to generate a
consistent stream of noninterest income led by our Wealth
Management Team. Noninterest income represented 32% of total
revenue during 2023."
Mr. Kennedy also noted, “Similar to the third
quarter, fourth quarter results included an elevated provision for
credit losses primarily driven by reserves required for two credits
within the freight industry, which is currently facing a massive
downturn due to supply and demand imbalances. We successfully
liquidated one of these credits during the fourth quarter and
continue to work through steps to quickly resolve the other. As we
move forward through this challenging economic environment, we
continue to thoroughly analyze our loan portfolio for areas of
concern. We believe the diversity of our portfolio and strength of
our underwriting standards will protect us in the long term.
Unfortunately, we have been forced to deal with a handful of credit
issues that have arisen as a result of current economic
conditions."
The following are select highlights for the
period ended December 31, 2023:
Wealth Management:
- Gross new business inflows for Q4 2023 totaled $260 million
($156 million managed). Full year 2023, gross business inflows
totaled $948 million ($703 million managed).
- AUM/AUA in our Wealth Management Division totaled $10.9 billion
at December 31, 2023 when compared to $9.9 billion at December 31,
2022, which is an increase of 10% year over year.
- Wealth Management fee income of $13.8 million for Q4 2023
comprised 25% of total revenue for the quarter.
Commercial Banking and Balance Sheet Management:
- Total loans were $5.4 billion at December 31, 2023 reflecting
growth of $135.2 million when compared to $5.3 billion at December
31, 2022.
- Commercial & industrial lending (“C&I”) loan/lease
balances remained at 42% of the total loan portfolio at December
31, 2023.
- Fee income on unused commercial lines of credit totaled
$750,000 for Q4 2023.
- Fee income recorded by the Equipment Finance division related
to equipment transfers to lessees totaled $309,000 for Q4
2023.
- The net interest margin ("NIM") was 2.29% in Q4 2023, an
increase of 1 basis point compared to Q3 2023 and a decline of 83
basis points when compared to Q4 2022.
- Total deposits increased $69.0 million to $5.3 billion from
December 31, 2022.
- Noninterest-bearing demand deposits represented 18% of total
deposits as of December 31, 2023.
- Core deposits (which includes noninterest-bearing demand and
interest-bearing demand, savings and money market accounts) totaled
89% of total deposits at December 31, 2023.
Capital Management:
- Tangible book value per share increased 5% on a linked quarter
basis or $1.54 per share, in Q4 2023 to $30.31.
- During the quarter, the Company repurchased 88,327 shares of
Company stock for a cost of $2.1 million. For 2023, the Company
repurchased 455,341 shares for a cost of $12.5 million. The Company
repurchased 930,977 shares of stock for a cost of $32.7 million
during the year ended December 31, 2022.
- At December 31, 2023, the Tier 1 Leverage Ratio stood at 10.83%
for Peapack-Gladstone Bank (the "Bank") and 9.19% for the Company.
The Common Equity Tier 1 Ratio (to Risk-Weighted Assets) stood at
13.47% for the Bank and 11.43% for the Company at December 31,
2023. These ratios are significantly above well capitalized
standards, as capital has benefited from net income
generation.
Non-Core Items:
The December 2023 quarter included a:
- $585,000 positive fair value adjustment on an equity security
held for CRA investment, which increased total revenue by $585,000,
increased net income by $418,000 and EPS by $0.02 for the December
2023 quarter. Management believes this to be a non-core item.
SUMMARY INCOME STATEMENT DETAILS:
The following tables summarize specified
financial details for the periods shown.
December 2023 Year Compared to Prior
Year
|
|
|
Year Ended |
|
|
Year Ended |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
Increase/ |
|
| (Dollars in
millions, except per share data) |
|
2023 |
|
|
2022 |
|
|
|
(Decrease) |
|
| Net interest
income |
|
$ |
156.09 |
|
|
$ |
176.08 |
|
|
|
$ |
(19.99 |
) |
|
|
(11 |
)% |
| Wealth management fee
income |
|
|
55.75 |
|
|
|
54.65 |
|
|
|
|
1.10 |
|
|
|
2 |
|
| Capital markets
activity (A) |
|
|
2.74 |
|
|
|
9.25 |
|
|
|
|
(6.51 |
) |
|
|
(70 |
) |
| Other income (B) |
|
|
15.09 |
|
|
|
2.52 |
|
|
|
|
12.57 |
|
|
|
499 |
|
| Total other
income |
|
|
73.58 |
|
|
|
66.42 |
|
|
|
|
7.16 |
|
|
|
11 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Revenue |
|
|
229.67 |
|
|
|
242.50 |
|
|
|
|
(12.83 |
) |
|
|
(5 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses
(C) |
|
|
148.30 |
|
|
|
133.80 |
|
|
|
|
14.50 |
|
|
|
11 |
|
| Pretax income before
provision for credit losses |
|
|
81.37 |
|
|
|
108.70 |
|
|
|
|
(27.33 |
) |
|
|
(25 |
) |
| Provision for credit
losses |
|
|
14.09 |
|
|
|
6.35 |
|
|
|
|
7.74 |
|
|
|
122 |
|
| Pretax income |
|
|
67.28 |
|
|
|
102.35 |
|
|
|
|
(35.07 |
) |
|
|
(34 |
) |
| Income tax
expense |
|
|
18.43 |
|
|
|
28.10 |
|
|
|
|
(9.67 |
) |
|
|
(34 |
) |
| Net income |
|
$ |
48.85 |
|
|
$ |
74.25 |
|
|
|
$ |
(25.40 |
) |
|
|
(34 |
)% |
| Diluted EPS |
|
$ |
2.71 |
|
|
$ |
4.00 |
|
|
|
$ |
(1.29 |
) |
|
|
(32 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average
assets |
|
|
0.76 |
% |
|
|
1.20 |
% |
|
|
|
(0.44 |
) |
|
|
|
| Return on average
equity |
|
|
8.77 |
% |
|
|
14.02 |
% |
|
|
|
(5.25 |
) |
|
|
|
(A) The twelve months ended December 31,
2023 was negatively impacted by both market volatility and the
higher interest rate environment resulting in lower SBA sale
premiums and origination volumes. The twelve months ended
December 31, 2023 had a decline in gain on sale of SBA loans of
$4.3 million to $2.4 million when compared to the same period in
2022.(B) Other income for the year ended December 31, 2023
included fee income from equipment finance activity of $3.0 million
and a positive fair value adjustment on a CRA equity security of
$181,000. Other income for the year ended December 31, 2022
included a $6.6 million loss on sale of securities, gain on sale of
property of $275,000 income from life insurance proceeds of $25,000
and a negative fair value adjustment on a CRA equity security of
$1.7 million.(C) The year ended December 31, 2023 included
one-time charges of $2.0 million related to the recent retirement
of certain employees and $175,000 of expense associated with three
retail branch closures. The year ended December 31, 2022 included
$1.5 million of severance expense related to certain staff
reorganizations and $673,000 of expense related to the swap
valuation allowance.
December 2023 Quarter Compared to Prior Year
Quarter
| |
|
Three Months Ended |
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
| |
|
December 31, |
|
|
|
December 31, |
|
|
Increase/ |
|
| (Dollars in
millions, except per share data) |
|
2023 |
|
|
|
2022 |
|
|
(Decrease) |
|
| Net interest
income |
|
$ |
36.68 |
|
|
|
$ |
48.04 |
|
|
$ |
(11.36 |
) |
|
|
(24 |
)% |
| Wealth management fee
income |
|
|
13.76 |
|
|
|
|
12.98 |
|
|
|
0.78 |
|
|
|
6 |
|
| Capital markets
activity |
|
|
0.30 |
|
|
|
|
0.95 |
|
|
|
(0.65 |
) |
|
|
(68 |
) |
| Other income (A) |
|
|
3.53 |
|
|
|
|
2.88 |
|
|
|
0.65 |
|
|
|
23 |
|
| Total other
income |
|
|
17.59 |
|
|
|
|
16.81 |
|
|
|
0.78 |
|
|
|
5 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Revenue |
|
|
54.27 |
|
|
|
|
64.85 |
|
|
|
(10.58 |
) |
|
|
(16 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
expenses |
|
|
37.62 |
|
|
|
|
33.41 |
|
|
|
4.21 |
|
|
|
13 |
|
| Pretax income before
provision for credit losses |
|
|
16.65 |
|
|
|
|
31.44 |
|
|
|
(14.79 |
) |
|
|
(47 |
) |
| Provision for credit
losses |
|
|
5.03 |
|
|
|
|
1.93 |
|
|
|
3.10 |
|
|
|
161 |
|
| Pretax income |
|
|
11.62 |
|
|
|
|
29.51 |
|
|
|
(17.89 |
) |
|
|
(61 |
) |
| Income tax expense
(B) |
|
|
3.02 |
|
|
|
|
8.93 |
|
|
|
(5.91 |
) |
|
|
(66 |
) |
| Net income |
|
$ |
8.60 |
|
|
|
$ |
20.58 |
|
|
$ |
(11.98 |
) |
|
|
(58 |
)% |
| Diluted EPS |
|
$ |
0.48 |
|
|
|
$ |
1.12 |
|
|
$ |
(0.64 |
) |
|
|
(57 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average
assets annualized |
|
|
0.53 |
% |
|
|
|
1.33 |
% |
|
|
(0.80 |
) |
|
|
|
| Return on average
equity annualized |
|
|
6.13 |
% |
|
|
|
15.73 |
% |
|
|
(9.60 |
) |
|
|
|
(A) Other income for the December 2023
quarter included a positive fair value adjustment on a CRA equity
security of $585,000. Other income for the December 2022
quarter included a gain on sale of property of $275,000, income
from life insurance proceeds of $25,000 and a positive fair value
adjustment on a CRA equity security of $28,000. (B) The three
months ended December 31, 2022 included $750,000 of income tax
expense (net of Federal benefit) related to legislation that
changed the nexus standard for New York City business tax.
($563,000 of that amount related to the first nine months of
2022).
December 2023 Quarter Compared to Linked
Quarter
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
September |
|
|
|
Increase/ |
|
| (Dollars in
millions, except per share data) |
|
2023 |
|
|
2023 |
|
|
|
(Decrease) |
|
| Net interest
income |
|
$ |
36.68 |
|
|
$ |
36.52 |
|
|
|
$ |
0.16 |
|
|
|
0 |
% |
| Wealth management fee
income |
|
|
13.76 |
|
|
|
13.98 |
|
|
|
|
(0.22 |
) |
|
|
(2 |
) |
| Capital markets
activity |
|
|
0.30 |
|
|
|
0.61 |
|
|
|
|
(0.31 |
) |
|
|
(51 |
) |
| Other income (A) |
|
|
3.53 |
|
|
|
4.76 |
|
|
|
|
(1.23 |
) |
|
|
(26 |
) |
| Total other
income |
|
|
17.59 |
|
|
|
19.35 |
|
|
|
|
(1.76 |
) |
|
|
(9 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Revenue |
|
|
54.27 |
|
|
|
55.87 |
|
|
|
|
(1.60 |
) |
|
|
(3 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
expenses |
|
|
37.62 |
|
|
|
37.41 |
|
|
|
|
0.21 |
|
|
|
1 |
|
| Pretax income before
provision for credit losses |
|
|
16.65 |
|
|
|
18.46 |
|
|
|
|
(1.81 |
) |
|
|
(10 |
) |
| Provision for credit
losses |
|
|
5.03 |
|
|
|
5.86 |
|
|
|
|
(0.83 |
) |
|
|
(14 |
) |
| Pretax income |
|
|
11.62 |
|
|
|
12.60 |
|
|
|
|
(0.98 |
) |
|
|
(8 |
) |
| Income tax
expense |
|
|
3.02 |
|
|
|
3.84 |
|
|
|
|
(0.82 |
) |
|
|
(21 |
) |
| Net income |
|
$ |
8.60 |
|
|
$ |
8.76 |
|
|
|
$ |
(0.16 |
) |
|
|
(2 |
)% |
| Diluted EPS |
|
$ |
0.48 |
|
|
$ |
0.49 |
|
|
|
$ |
(0.01 |
) |
|
|
(2 |
)% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average
assets annualized |
|
|
0.53 |
% |
|
|
0.54 |
% |
|
|
|
(0.01 |
) |
|
|
|
| Return on average
equity annualized |
|
|
6.13 |
% |
|
|
6.20 |
% |
|
|
|
(0.07 |
) |
|
|
|
(A) Other income for the December 2023 quarter
included a positive fair value adjustment on a CRA equity security
of $585,000. Other income for the September 2023 quarter
included fee income from equipment finance activity of $2.3 million
and a negative fair value adjustment on a CRA equity security of
$404,000.
SUPPLEMENTAL QUARTERLY DETAILS:
Wealth Management
AUM/AUA in the Bank’s Wealth Management Division
were $10.9 billion at December 31, 2023. For the December
2023 quarter, the Wealth Management Team generated $13.8 million in
fee income, compared to $14.0 million for the September 30, 2023
quarter and $13.0 million for the December 2022 quarter. The equity
market increased during Q4 2023, contributing to the increase in
AUM/AUA from $10.4 billion at September 30, 2023.
John Babcock, President of the Bank's Wealth
Management Division, noted, “2023 included total new accounts and
client additions of $948 million ($703 million managed). As we
prepare for 2024, our new business pipeline is healthy and we
remain focused on delivering excellent service and advice to our
clients. Our highly skilled wealth management professionals, our
fiduciary powers and expertise, our financial planning capabilities
and our high-touch client service model distinguishes us in our
market and continues to drive our growth and success.”
Loans / Commercial Banking
Total loans grew $135.2 million, or 3% to $5.4
billion at December 31, 2023 when compared to $5.3 billion at
December 31, 2022.
Total C&I loans and leases at December 31,
2023 were $2.3 billion or 42% of the total loan portfolio.
Mr. Kennedy noted, “As previously mentioned, we
have tightened our underwriting guidelines due to economic
uncertainty. As a result, we achieved modest loan growth in 2023
compared to prior years. We are proud to have built a leading
middle market commercial banking franchise, as evidenced by our
C&I Portfolio, Treasury Management services, Corporate Advisory
and SBA businesses. We believe these business lines fit perfectly
with our private banking business model.”
Net Interest Income (NII)/Net Interest Margin
(NIM)
The Company’s NII of $36.7 million and NIM of
2.29% for Q4 2023 increased $160,000 and 1 basis point from NII of
$36.5 million and NIM of 2.28% for the linked quarter (Q3 2023),
respectively, and decreased $11.4 million and 83 basis points from
NII of $48.0 million and NIM of 3.12% for the prior year (Q4 2022),
respectively. When comparing Q4 2023 to the prior year
quarter, the Company has seen a sharp increase in interest expense
mostly driven by higher deposit rates during 2023. Cycle to date
betas are approximately 48%. Clients continue to migrate out
of noninterest bearing checking products and into higher costing
alternatives, which leads to intense competition for deposit
balances from other banks and alternative investment opportunities
due to the significant rise in interest rates.
Funding / Liquidity / Interest Rate Risk
Management
Total deposits increased $69.0 million to $5.3
billion at December 31, 2023 from $5.2 billion at December 31,
2022. The Company saw limited deposit increases in 2023 as
the ongoing acquisition of new relationships driven by our private
banking strategy was offset by larger deposit relationships using
funds for purposes such as deployment of excess liquidity into
higher-yielding treasuries or the equity market, tax payments, or
asset acquisitions or investments. The Company has also seen
clients transition money from noninterest bearing deposit accounts
to higher yielding deposit accounts as a result of increases in the
Fed Funds rate.
At December 31, 2023, the Company’s balance
sheet liquidity (investments available for sale, interest-earning
deposits and cash) totaled $782.4 million, or 12% of assets.
The Company maintains additional liquidity
resources of approximately $2.7 billion through secured available
funding with the Federal Home Loan Bank and 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. In addition, the Company also has access
to the Bank Term Funding Program offered by the Federal Reserve
Bank if needed.
The Company's total on and off-balance sheet
liquidity totaled $3.5 billion, which is 297% of the total
uninsured/uncollateralized deposits on the Company's balance
sheet.
Income from Capital Markets
Activities
Noninterest income from Capital Markets
activities (detailed below) totaled $296,000 for the December 2023
quarter compared to $613,000 for the September 2023 quarter and
$950,000 for the December 2022 quarter. The gain on sale of SBA
loans was lower in Q4 2023 due to less activity in the higher
interest rate environment and tighter margins.
|
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
Three Months Ended |
|
|
|
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
| (Dollars in
thousands, except per share data) |
|
2023 |
|
|
2023 |
|
|
2022 |
|
| Gain on loans held for
sale at fair value (Mortgage banking) |
|
$ |
18 |
|
|
$ |
37 |
|
|
$ |
25 |
|
| Fee income related to
loan level, back-to-back swaps |
|
|
— |
|
|
|
— |
|
|
|
293 |
|
| Gain on sale of SBA
loans |
|
|
239 |
|
|
|
491 |
|
|
|
624 |
|
| Corporate advisory fee
income |
|
|
39 |
|
|
|
85 |
|
|
|
8 |
|
| Total capital markets
activity |
|
$ |
296 |
|
|
$ |
613 |
|
|
$ |
950 |
|
Other Noninterest Income (other than Wealth
Management Fee Income and Income from Capital Markets
Activities)
Other noninterest income was $3.5 million for Q4
2023 compared to $4.8 million for Q3 2023 and $2.9 million for Q4
2022. Q4 2023 included $309,000 of income recorded by the Equipment
Finance Division related to equipment transfers to lessees upon the
termination of leases while Q3 2023 included $2.3 million and Q4
2022 included $294,000 respectively. Additionally, Q4 2023 included
$750,000 of unused line fees compared to $794,000 for Q3 2023 and
$732,000 for Q4 2022.
Operating Expenses
The Company’s total operating expenses were
$37.6 million for the fourth quarter of 2023, compared to $37.4
million for the September 2023 quarter and $33.4 million for the
December 2022 quarter. The December 2023 and September 2023
quarters included expenses associated with the expansion of the
Company into New York City.
Mr. Kennedy noted, “While we have made a
strategic decision to expand into a new market which results in
additional costs, we are pleased with our ability to manage
expenses across the Company. We will continue to look for
opportunities to create efficiencies while investing in digital and
other software tools to further enhance the client experience.”
Income Taxes
The effective tax rate for the three months
ended December 31, 2023 was 26.0%, as compared to 30.5% for the
September 2023 quarter and 30.3% for the quarter ended December 31,
2022. The higher tax rate for the September 2023 quarter was
primarily due to the impact of certain non-deductible expenses
related to compensation and benefits and the higher tax rate for
the December 2022 quarter included income tax expense related to
legislation that changed the nexus standard for New York City
business tax.
Asset Quality / Provision for Credit Losses
Nonperforming assets (which does not include
modified loans that are performing in accordance with their terms)
were $61.3 million, or 0.95% of total assets at December 31, 2023,
as compared to $70.8 million, or 1.09% of total assets at September
30, 2023. The third quarter was impacted by two freight related
clients totaling $33.4 million that were transferred to nonaccrual
status during the third quarter. One credit, totaling $9.9 million,
was successfully liquidated during the fourth quarter and
management is working diligently to resolve the remaining matter as
quickly and efficiently as possible. Loans past due 30 to 89 days
and still accruing were $34.6 million, or 0.64% of total loans at
December 31, 2023 compared to $9.8 million, or 0.18% of total loans
at September 30, 2023. The Q4 2023 loans past due 30 to 89 days and
still accruing included $16.5 million to US governmental entities
and $11.8 million to one multifamily sponsor.
Criticized and classified loans totaled $155.8
million at December 31, 2023, reflecting an increase from September
30, 2023 and December 31, 2022 levels. The Company currently has no
loans or leases on deferral and accruing.
For the quarter ended December 31, 2023, the
Company’s provision for credit losses was $5.1 million compared to
$5.9 million for the September 2023 quarter and $2.1 million for
the December 2022 quarter. The elevated level of provision for
credit losses in both the December and September 2023 quarters was
primarily driven by specific provisions related to the two freight
credits that were transferred to nonaccrual status during the third
quarter of 2023 as described above. Net charge-offs for the
quarter ended December 31, 2023 included charge-offs of $2.2
million of a previously established reserve to loans individually
evaluated on one multifamily loan and $5.6 million on one equipment
finance relationship.
At December 31, 2023, the allowance for credit
losses was $65.9 million (1.21% of total loans), compared to $68.6
million (1.25% of loans) at September 30, 2023, and $60.8 million
(1.15% of loans) at December 31, 2022.
Capital
The Company’s capital position benefited by net
income of $8.6 million during the December 2023 quarter, which was
partially offset by the repurchase of 88,327 shares through the
Company's stock repurchase program at a total cost of $2.1 million
and the quarterly dividend of $891,000. Additionally, during the
fourth quarter of 2023, the Company recorded a net gain in
accumulated other comprehensive loss of $16.8 million, net of tax.
This amount was driven by a $21.2 million increase in the value of
the available for sale securities portfolio partially offset by a
$4.4 million loss on cash flow hedges. The total accumulated other
comprehensive loss declined to $64.9 million as of December 31,
2023, ($69.8 million loss related to the available for sale
securities portfolio partially offset by a $4.9 million gain on the
cash flow hedges)
Tangible book value per share increased during
Q4 2023 to $30.31 at December 31, 2023 from $28.77 at September 30,
2023. Tangible book value per share is a non-GAAP financial
measure. See the reconciliation tables included in this
release. The Company’s and Bank’s regulatory capital ratios as of
December 31, 2023 remain strong, and generally reflect increases
from December 31, 2022 levels. Where applicable, such ratios remain
well above regulatory well capitalized standards.
The Company employs quarterly capital stress
testing modeling of an adverse case and severely adverse case. In
the most recently completed stress test (as of September 30, 2023),
under the severely adverse case, and no growth scenario, the Bank
remains well capitalized over a two-year stress period.
On December 19, 2023, the Company declared a
cash dividend of $0.05 per share payable on February 23, 2024 to
shareholders of record on February 8, 2024.
ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a New
Jersey bank holding company with total assets of $6.5 billion and
assets under management/administration of $10.9 billion as of
December 31, 2023. Founded in 1921, Peapack-Gladstone Bank is
a commercial bank that provides Private Banking customized
solutions through its 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.
FORWARD-LOOKING STATEMENTS
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 2024 and
beyond;
- our ability to successfully integrate wealth management firm
acquisitions;
- 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, including potential recessionary
conditions;
- 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 credit losses and capital levels;
- the continuing impact of the COVID-19 pandemic on our business
and results of operation;
- higher than expected increases in our allowance for credit
losses;
- higher than expected increases in credit losses or in the level
of delinquent, nonperforming, classified and criticized loans;
- inflation and changes in interest rates, which may adversely
impact our margins and yields, reduce the fair value of our
financial instruments, reduce our loan originations and lead to
higher operating costs;
- 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;
- a potential government shutdown;
- successful cyberattacks against our IT infrastructure and that
of our IT and third-party providers;
- higher than expected FDIC insurance premiums;
- adverse weather conditions;
- the current or anticipated impact of military conflict,
terrorism or other geopolitical events;
- our inability to successfully generate new business in new
geographic markets, including our expansion into New York
City;
- a reduction in our lower-cost funding sources;
- changes in liquidity, including the size and composition of our
deposit portfolio, including the percentage of uninsured deposits
in the portfolio;
- 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 governmental regulation, including, but not limited
to, any increase in FDIC insurance premiums and changes in the
monetary policies of the U.S. Treasury and the Board of Governors
of the Federal Reserve System;
- changes in accounting policies and practices; and/or
- other unexpected material adverse changes in our operations or
earnings.
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,
2022. 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:
Frank A. Cavallaro, SEVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-306-8933
(Tables to follow)
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED CONSOLIDATED FINANCIAL
DATA(Dollars in Thousands, except per share
data) (Unaudited)
| |
|
For the Three Months Ended |
|
| |
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
| |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
| Income Statement
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
$ |
80,178 |
|
|
$ |
78,489 |
|
|
$ |
74,852 |
|
|
$ |
70,491 |
|
|
$ |
64,202 |
|
| Interest expense |
|
|
43,503 |
|
|
|
41,974 |
|
|
|
35,931 |
|
|
|
26,513 |
|
|
|
16,162 |
|
|
Net interest income |
|
|
36,675 |
|
|
|
36,515 |
|
|
|
38,921 |
|
|
|
43,978 |
|
|
|
48,040 |
|
| Wealth management fee
income |
|
|
13,758 |
|
|
|
13,975 |
|
|
|
14,252 |
|
|
|
13,762 |
|
|
|
12,983 |
|
| Service charges and
fees |
|
|
1,255 |
|
|
|
1,319 |
|
|
|
1,320 |
|
|
|
1,258 |
|
|
|
1,150 |
|
| Bank owned life
insurance |
|
|
357 |
|
|
|
310 |
|
|
|
305 |
|
|
|
297 |
|
|
|
321 |
|
| Gain on loans held for
sale at fair value (Mortgage banking) |
|
|
18 |
|
|
|
37 |
|
|
|
15 |
|
|
|
21 |
|
|
|
25 |
|
| Fee income related to
loan level, back-to-back swaps |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
293 |
|
| Gain on sale of SBA
loans |
|
|
239 |
|
|
|
491 |
|
|
|
838 |
|
|
|
865 |
|
|
|
624 |
|
| Corporate advisory fee
income |
|
|
39 |
|
|
|
85 |
|
|
|
15 |
|
|
|
80 |
|
|
|
8 |
|
| Other income (A) |
|
|
1,339 |
|
|
|
3,541 |
|
|
|
2,039 |
|
|
|
1,567 |
|
|
|
1,380 |
|
| Fair value adjustment
for CRA equity security |
|
|
585 |
|
|
|
(404 |
) |
|
|
(209 |
) |
|
|
209 |
|
|
|
28 |
|
|
Total other income |
|
|
17,590 |
|
|
|
19,354 |
|
|
|
18,575 |
|
|
|
18,059 |
|
|
|
16,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
54,265 |
|
|
|
55,869 |
|
|
|
57,496 |
|
|
|
62,037 |
|
|
|
64,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits (B) |
|
|
24,320 |
|
|
|
25,264 |
|
|
|
26,354 |
|
|
|
24,586 |
|
|
|
22,489 |
|
| Premises and
equipment |
|
|
5,416 |
|
|
|
5,214 |
|
|
|
4,729 |
|
|
|
4,374 |
|
|
|
4,898 |
|
| FDIC insurance
expense |
|
|
765 |
|
|
|
741 |
|
|
|
729 |
|
|
|
711 |
|
|
|
455 |
|
| Other expenses |
|
|
7,115 |
|
|
|
6,194 |
|
|
|
5,880 |
|
|
|
5,903 |
|
|
|
5,570 |
|
|
Total operating expenses |
|
|
37,616 |
|
|
|
37,413 |
|
|
|
37,692 |
|
|
|
35,574 |
|
|
|
33,412 |
|
| Pretax income before
provision for credit losses |
|
|
16,649 |
|
|
|
18,456 |
|
|
|
19,804 |
|
|
|
26,463 |
|
|
|
31,440 |
|
| Provision for credit
losses |
|
|
5,026 |
|
|
|
5,856 |
|
|
|
1,696 |
|
|
|
1,513 |
|
|
|
1,930 |
|
| Income before income
taxes |
|
|
11,623 |
|
|
|
12,600 |
|
|
|
18,108 |
|
|
|
24,950 |
|
|
|
29,510 |
|
| Income tax expense
(C) |
|
|
3,024 |
|
|
|
3,845 |
|
|
|
4,963 |
|
|
|
6,595 |
|
|
|
8,931 |
|
| Net income |
|
$ |
8,599 |
|
|
$ |
8,755 |
|
|
$ |
13,145 |
|
|
$ |
18,355 |
|
|
$ |
20,579 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per Common Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share
(basic) |
|
$ |
0.48 |
|
|
$ |
0.49 |
|
|
$ |
0.73 |
|
|
$ |
1.03 |
|
|
$ |
1.15 |
|
| Earnings per share
(diluted) |
|
|
0.48 |
|
|
|
0.49 |
|
|
|
0.73 |
|
|
|
1.01 |
|
|
|
1.12 |
|
| Weighted average
number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
17,770,158 |
|
|
|
17,856,961 |
|
|
|
17,930,611 |
|
|
|
17,841,203 |
|
|
|
17,915,058 |
|
| Diluted |
|
|
17,961,400 |
|
|
|
18,010,127 |
|
|
|
18,078,848 |
|
|
|
18,263,310 |
|
|
|
18,382,193 |
|
| Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average
assets annualized (ROAA) |
|
|
0.53 |
% |
|
|
0.54 |
% |
|
|
0.82 |
% |
|
|
1.16 |
% |
|
|
1.33 |
% |
| Return on average
equity annualized (ROAE) |
|
|
6.13 |
% |
|
|
6.20 |
% |
|
|
9.43 |
% |
|
|
13.50 |
% |
|
|
15.73 |
% |
| Return on average
tangible equity annualized (ROATCE) (D) |
|
|
6.68 |
% |
|
|
6.75 |
% |
|
|
10.30 |
% |
|
|
14.78 |
% |
|
|
17.30 |
% |
| Net interest margin
(tax-equivalent basis) |
|
|
2.29 |
% |
|
|
2.28 |
% |
|
|
2.49 |
% |
|
|
2.88 |
% |
|
|
3.12 |
% |
| GAAP efficiency ratio
(E) |
|
|
69.32 |
% |
|
|
66.97 |
% |
|
|
65.56 |
% |
|
|
57.34 |
% |
|
|
51.52 |
% |
| Operating expenses /
average assets annualized |
|
|
2.33 |
% |
|
|
2.31 |
% |
|
|
2.36 |
% |
|
|
2.26 |
% |
|
|
2.15 |
% |
(A) The September 2023 quarter included $2.3
million of fee income from equipment finance activity.(B) The June
2023 quarter included $1.7 million of expense associated with the
recent retirement of certain employees.(C) The three months ended
December 31, 2022 included $750,000 of income tax expense (net
federal benefit) related to a recent New York City nexus
determination change which included $563,000 from prior
quarters.(D) Return on average tangible equity is calculated by
dividing tangible equity by annualized net income. See
Non-GAAP financial measures reconciliation included in these
tables.(E) 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
CORPORATIONSELECTED CONSOLIDATED FINANCIAL
DATA(Dollars in Thousands, except share
data)(Unaudited)
| |
|
For the Twelve Months Ended |
|
|
|
|
|
|
|
| |
|
December 31, |
|
|
Change |
|
| |
|
2023 |
|
|
2022 |
|
|
$ |
|
|
% |
|
| Income Statement
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
$ |
304,010 |
|
|
$ |
211,875 |
|
|
$ |
92,135 |
|
|
|
43 |
% |
| Interest expense |
|
|
147,921 |
|
|
|
35,795 |
|
|
|
112,126 |
|
|
|
313 |
% |
|
Net interest income |
|
|
156,089 |
|
|
|
176,080 |
|
|
|
(19,991 |
) |
|
|
-11 |
% |
| Wealth management fee
income |
|
|
55,747 |
|
|
|
54,651 |
|
|
|
1,096 |
|
|
|
2 |
% |
| Service charges and
fees |
|
|
5,152 |
|
|
|
4,225 |
|
|
|
927 |
|
|
|
22 |
% |
| Bank owned life
insurance |
|
|
1,269 |
|
|
|
1,243 |
|
|
|
26 |
|
|
|
2 |
% |
| Gain on loans held for
sale at fair value (Mortgage banking) |
|
|
91 |
|
|
|
483 |
|
|
|
(392 |
) |
|
|
-81 |
% |
| Fee income related to
loan level, back-to-back swaps |
|
|
— |
|
|
|
293 |
|
|
|
(293 |
) |
|
|
-100 |
% |
| Gain on sale of SBA
loans |
|
|
2,433 |
|
|
|
6,765 |
|
|
|
(4,332 |
) |
|
|
-64 |
% |
| Corporate advisory fee
income |
|
|
219 |
|
|
|
1,704 |
|
|
|
(1,485 |
) |
|
|
-87 |
% |
| Other income (A) |
|
|
8,486 |
|
|
|
5,362 |
|
|
|
3,124 |
|
|
|
58 |
% |
| Loss on securities
sale, net (B) |
|
|
— |
|
|
|
(6,609 |
) |
|
|
6,609 |
|
|
|
-100 |
% |
| Fair value adjustment
for CRA equity security |
|
|
181 |
|
|
|
(1,700 |
) |
|
|
1,881 |
|
|
|
-111 |
% |
|
Total other income |
|
|
73,578 |
|
|
|
66,417 |
|
|
|
7,161 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
229,667 |
|
|
|
242,497 |
|
|
|
(12,830 |
) |
|
|
-5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Salaries and employee
benefits (C) |
|
|
100,524 |
|
|
|
89,476 |
|
|
|
11,048 |
|
|
|
12 |
% |
| Premises and
equipment |
|
|
19,733 |
|
|
|
18,719 |
|
|
|
1,014 |
|
|
|
5 |
% |
| FDIC insurance
expense |
|
|
2,946 |
|
|
|
1,939 |
|
|
|
1,007 |
|
|
|
52 |
% |
| Swap valuation
allowance |
|
|
— |
|
|
|
673 |
|
|
|
(673 |
) |
|
|
-100 |
% |
| Other expenses |
|
|
25,092 |
|
|
|
22,993 |
|
|
|
2,099 |
|
|
|
9 |
% |
|
Total operating expenses |
|
|
148,295 |
|
|
|
133,800 |
|
|
|
14,495 |
|
|
|
11 |
% |
| Pretax income before
provision for credit losses |
|
|
81,372 |
|
|
|
108,697 |
|
|
|
(27,325 |
) |
|
|
-25 |
% |
| Provision for credit
losses |
|
|
14,091 |
|
|
|
6,353 |
|
|
|
7,738 |
|
|
|
122 |
% |
| Income before income
taxes |
|
|
67,281 |
|
|
|
102,344 |
|
|
|
(35,063 |
) |
|
|
-34 |
% |
| Income tax
expense |
|
|
18,427 |
|
|
|
28,098 |
|
|
|
(9,671 |
) |
|
|
-34 |
% |
| Net income |
|
$ |
48,854 |
|
|
$ |
74,246 |
|
|
$ |
(25,392 |
) |
|
|
-34 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Per Common Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share
(basic) |
|
$ |
2.74 |
|
|
$ |
4.09 |
|
|
$ |
(1.35 |
) |
|
|
-33 |
% |
| Earnings per share
(diluted) |
|
|
2.71 |
|
|
|
4.00 |
|
|
|
(1.29 |
) |
|
|
-32 |
% |
| Weighted average
number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
17,849,558 |
|
|
|
18,161,605 |
|
|
|
(312,047 |
) |
|
|
-2 |
% |
| Diluted |
|
|
18,049,052 |
|
|
|
18,568,098 |
|
|
|
(519,046 |
) |
|
|
-3 |
% |
| Performance
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average
assets (ROAA) |
|
|
0.76 |
% |
|
|
1.20 |
% |
|
|
(0.44 |
)% |
|
|
-36 |
% |
| Return on average
equity (ROAE) |
|
|
8.77 |
% |
|
|
14.02 |
% |
|
|
(5.25 |
)% |
|
|
-37 |
% |
| Return on average
tangible equity (ROATCE) (D) |
|
|
9.57 |
% |
|
|
15.43 |
% |
|
|
(5.86 |
)% |
|
|
-38 |
% |
| Net interest margin
(tax-equivalent basis) |
|
|
2.48 |
% |
|
|
2.91 |
% |
|
|
(0.43 |
)% |
|
|
-15 |
% |
| GAAP efficiency ratio
(E) |
|
|
64.57 |
% |
|
|
55.18 |
% |
|
|
9.39 |
% |
|
|
17 |
% |
| Operating expenses /
average assets |
|
|
2.32 |
% |
|
|
2.16 |
% |
|
|
0.16 |
% |
|
|
7 |
% |
(A) The twelve months ended December 2023
included $3.0 million of fee income from equipment finance
activity.(B) Loss on sale of securities was a result of a balance
sheet repositioning employed in the March 2022 quarter.(C) The
twelve months ended December 31, 2023 included $2.0 million of
expense associated with the recent retirement of certain employees,
increased corporate and health insurance costs and expenses
associated with the previously announced expansion into New York
City. The twelve months ended December 31, 2022 quarter included
$1.5 million of severance expense related to corporate
restructuring.(D) Return on average tangible equity is calculated
by dividing tangible equity by annualized net income. See
Non-GAAP financial measures reconciliation included in these
tables.(E) 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
CORPORATIONCONSOLIDATED STATEMENTS OF
CONDITION(Dollars in Thousands)(Unaudited)
| |
|
As of |
|
| |
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
| |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due from
banks |
|
$ |
5,887 |
|
|
$ |
7,400 |
|
|
$ |
4,859 |
|
|
$ |
6,514 |
|
|
$ |
5,937 |
|
| Federal funds
sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Interest-earning
deposits |
|
|
181,784 |
|
|
|
180,469 |
|
|
|
166,769 |
|
|
|
244,779 |
|
|
|
184,138 |
|
|
Total cash and cash equivalents |
|
|
187,671 |
|
|
|
187,869 |
|
|
|
171,628 |
|
|
|
251,293 |
|
|
|
190,075 |
|
| Securities available
for sale |
|
|
550,617 |
|
|
|
521,005 |
|
|
|
540,519 |
|
|
|
556,266 |
|
|
|
554,648 |
|
| Securities held to
maturity |
|
|
107,755 |
|
|
|
108,940 |
|
|
|
110,438 |
|
|
|
111,609 |
|
|
|
102,291 |
|
| CRA equity security,
at fair value |
|
|
13,166 |
|
|
|
12,581 |
|
|
|
12,985 |
|
|
|
13,194 |
|
|
|
12,985 |
|
| FHLB and FRB stock, at
cost (A) |
|
|
31,044 |
|
|
|
34,158 |
|
|
|
35,402 |
|
|
|
30,338 |
|
|
|
30,672 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Residential
mortgage |
|
|
578,427 |
|
|
|
585,295 |
|
|
|
575,238 |
|
|
|
544,655 |
|
|
|
525,756 |
|
| Multifamily
mortgage |
|
|
1,836,390 |
|
|
|
1,871,853 |
|
|
|
1,884,369 |
|
|
|
1,871,387 |
|
|
|
1,863,915 |
|
| Commercial
mortgage |
|
|
637,625 |
|
|
|
622,469 |
|
|
|
624,710 |
|
|
|
613,911 |
|
|
|
624,625 |
|
| Commercial and
industrial loans |
|
|
2,284,940 |
|
|
|
2,321,917 |
|
|
|
2,278,133 |
|
|
|
2,266,837 |
|
|
|
2,213,762 |
|
| Consumer loans |
|
|
62,036 |
|
|
|
57,227 |
|
|
|
52,098 |
|
|
|
49,002 |
|
|
|
38,014 |
|
| Home equity lines of
credit |
|
|
36,464 |
|
|
|
34,411 |
|
|
|
34,397 |
|
|
|
33,294 |
|
|
|
34,496 |
|
| Other loans |
|
|
238 |
|
|
|
265 |
|
|
|
269 |
|
|
|
443 |
|
|
|
304 |
|
|
Total loans |
|
|
5,436,120 |
|
|
|
5,493,437 |
|
|
|
5,449,214 |
|
|
|
5,379,529 |
|
|
|
5,300,872 |
|
|
Less: Allowance for credit losses |
|
|
65,888 |
|
|
|
68,592 |
|
|
|
62,704 |
|
|
|
62,250 |
|
|
|
60,829 |
|
|
Net loans |
|
|
5,370,232 |
|
|
|
5,424,845 |
|
|
|
5,386,510 |
|
|
|
5,317,279 |
|
|
|
5,240,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premises and
equipment |
|
|
24,166 |
|
|
|
23,969 |
|
|
|
23,814 |
|
|
|
23,782 |
|
|
|
23,831 |
|
| Other real estate
owned |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
116 |
|
|
|
116 |
|
| Accrued interest
receivable |
|
|
30,676 |
|
|
|
22,889 |
|
|
|
20,865 |
|
|
|
19,143 |
|
|
|
25,157 |
|
| Bank owned life
insurance |
|
|
47,581 |
|
|
|
47,509 |
|
|
|
47,382 |
|
|
|
47,261 |
|
|
|
47,147 |
|
| Goodwill and other
intangible assets |
|
|
46,014 |
|
|
|
46,286 |
|
|
|
46,624 |
|
|
|
46,979 |
|
|
|
47,333 |
|
| Finance lease
right-of-use assets |
|
|
2,087 |
|
|
|
2,274 |
|
|
|
2,461 |
|
|
|
2,648 |
|
|
|
2,835 |
|
| Operating lease
right-of-use assets |
|
|
12,096 |
|
|
|
12,800 |
|
|
|
13,500 |
|
|
|
12,262 |
|
|
|
12,873 |
|
| Other assets |
|
|
53,752 |
|
|
|
76,456 |
|
|
|
67,572 |
|
|
|
47,848 |
|
|
|
63,587 |
|
|
TOTAL ASSETS |
|
$ |
6,476,857 |
|
|
$ |
6,521,581 |
|
|
$ |
6,479,700 |
|
|
$ |
6,480,018 |
|
|
$ |
6,353,593 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
$ |
957,687 |
|
|
$ |
947,405 |
|
|
$ |
1,024,105 |
|
|
$ |
1,096,549 |
|
|
$ |
1,246,066 |
|
|
Interest-bearing demand deposits |
|
|
2,882,193 |
|
|
|
2,871,359 |
|
|
|
2,816,913 |
|
|
|
2,797,493 |
|
|
|
2,143,611 |
|
|
Savings |
|
|
111,573 |
|
|
|
117,905 |
|
|
|
120,082 |
|
|
|
132,523 |
|
|
|
157,338 |
|
|
Money market accounts |
|
|
740,559 |
|
|
|
761,833 |
|
|
|
763,026 |
|
|
|
873,329 |
|
|
|
1,228,234 |
|
|
Certificates of deposit – Retail |
|
|
443,791 |
|
|
|
422,291 |
|
|
|
384,106 |
|
|
|
357,131 |
|
|
|
318,573 |
|
|
Certificates of deposit – Listing Service |
|
|
7,804 |
|
|
|
9,103 |
|
|
|
10,822 |
|
|
|
15,922 |
|
|
|
25,358 |
|
| Subtotal “customer”
deposits |
|
|
5,143,607 |
|
|
|
5,129,896 |
|
|
|
5,119,054 |
|
|
|
5,272,947 |
|
|
|
5,119,180 |
|
|
IB Demand – Brokered |
|
|
10,000 |
|
|
|
10,000 |
|
|
|
10,000 |
|
|
|
10,000 |
|
|
|
60,000 |
|
|
Certificates of deposit – Brokered |
|
|
120,507 |
|
|
|
119,463 |
|
|
|
69,443 |
|
|
|
25,895 |
|
|
|
25,984 |
|
| Total deposits |
|
|
5,274,114 |
|
|
|
5,259,359 |
|
|
|
5,198,497 |
|
|
|
5,308,842 |
|
|
|
5,205,164 |
|
| Short-term
borrowings |
|
|
403,814 |
|
|
|
470,576 |
|
|
|
485,360 |
|
|
|
378,800 |
|
|
|
379,530 |
|
| Finance lease
liability |
|
|
3,430 |
|
|
|
3,752 |
|
|
|
4,071 |
|
|
|
4,385 |
|
|
|
4,696 |
|
| Operating lease
liability |
|
|
12,876 |
|
|
|
13,595 |
|
|
|
14,308 |
|
|
|
13,082 |
|
|
|
13,704 |
|
| Subordinated debt,
net |
|
|
133,274 |
|
|
|
133,203 |
|
|
|
133,131 |
|
|
|
133,059 |
|
|
|
132,987 |
|
| Due to brokers |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,308 |
|
|
|
— |
|
| Other liabilities |
|
|
65,668 |
|
|
|
82,140 |
|
|
|
79,264 |
|
|
|
78,584 |
|
|
|
84,532 |
|
|
TOTAL LIABILITIES |
|
|
5,893,176 |
|
|
|
5,962,625 |
|
|
|
5,914,631 |
|
|
|
5,925,060 |
|
|
|
5,820,613 |
|
| Shareholders’
equity |
|
|
583,681 |
|
|
|
558,956 |
|
|
|
565,069 |
|
|
|
554,958 |
|
|
|
532,980 |
|
|
TOTAL LIABILITIES AND |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY |
|
$ |
6,476,857 |
|
|
$ |
6,521,581 |
|
|
$ |
6,479,700 |
|
|
$ |
6,480,018 |
|
|
$ |
6,353,593 |
|
| Assets under
management and / or administration at
Peapack-Gladstone Bank’s Private Wealth Management
Division (market value, not included above-dollars in
billions) |
|
$ |
10.9 |
|
|
$ |
10.4 |
|
|
$ |
10.7 |
|
|
$ |
10.4 |
|
|
$ |
9.9 |
|
(A) FHLB means "Federal Home Loan Bank" and FRB
means "Federal Reserve Bank.".
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED BALANCE SHEET DATA(Dollars in
Thousands)(Unaudited)
|
|
|
As of |
|
|
|
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
|
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
| Asset
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans past due over 90
days and still accruing |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Nonaccrual loans
(A) |
|
|
61,324 |
|
|
|
70,809 |
|
|
|
34,505 |
|
|
|
28,659 |
|
|
|
18,974 |
|
| Other real estate
owned |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
116 |
|
|
|
116 |
|
|
Total nonperforming assets |
|
$ |
61,324 |
|
|
$ |
70,809 |
|
|
$ |
34,505 |
|
|
$ |
28,775 |
|
|
$ |
19,090 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nonperforming loans to
total loans |
|
|
1.13 |
% |
|
|
1.29 |
% |
|
|
0.63 |
% |
|
|
0.53 |
% |
|
|
0.36 |
% |
| Nonperforming assets
to total assets |
|
|
0.95 |
% |
|
|
1.09 |
% |
|
|
0.53 |
% |
|
|
0.44 |
% |
|
|
0.30 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Performing
modifications (B)(C) |
|
$ |
248 |
|
|
$ |
248 |
|
|
$ |
248 |
|
|
$ |
248 |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Performing TDRs
(D)(E) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
965 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans past due 30
through 89 days and still accruing (F) |
|
$ |
34,589 |
|
|
$ |
9,780 |
|
|
$ |
14,524 |
|
|
$ |
2,762 |
|
|
$ |
7,592 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans subject to
special mention |
|
$ |
71,397 |
|
|
$ |
53,328 |
|
|
$ |
53,606 |
|
|
$ |
46,566 |
|
|
$ |
64,842 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Classified loans |
|
$ |
84,372 |
|
|
$ |
94,866 |
|
|
$ |
58,655 |
|
|
$ |
58,010 |
|
|
$ |
42,985 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Individually evaluated
loans |
|
$ |
60,710 |
|
|
$ |
70,184 |
|
|
$ |
33,867 |
|
|
$ |
27,736 |
|
|
$ |
16,732 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for credit
losses ("ACL"): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of quarter |
|
$ |
68,592 |
|
|
$ |
62,704 |
|
|
$ |
62,250 |
|
|
$ |
60,829 |
|
|
$ |
59,683 |
|
|
Provision for credit losses (G) |
|
|
5,082 |
|
|
|
5,944 |
|
|
|
1,666 |
|
|
|
1,464 |
|
|
|
2,103 |
|
|
(Charge-offs)/recoveries, net (H) |
|
|
(7,786 |
) |
|
|
(56 |
) |
|
|
(1,212 |
) |
|
|
(43 |
) |
|
|
(957 |
) |
|
End of quarter |
|
$ |
65,888 |
|
|
$ |
68,592 |
|
|
$ |
62,704 |
|
|
$ |
62,250 |
|
|
$ |
60,829 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ACL to nonperforming
loans |
|
|
107.44 |
% |
|
|
96.87 |
% |
|
|
181.72 |
% |
|
|
217.21 |
% |
|
|
320.59 |
% |
| ACL to total
loans |
|
|
1.21 |
% |
|
|
1.25 |
% |
|
|
1.15 |
% |
|
|
1.16 |
% |
|
|
1.15 |
% |
| Collectively evaluated
ACL to total loans (I) |
|
|
1.13 |
% |
|
|
1.10 |
% |
|
|
1.11 |
% |
|
|
1.11 |
% |
|
|
1.12 |
% |
(A) Includes one freight credit totaling $23.5
million at December 31, 2023 and two freight credits totaling $33.4
million at September 30, 2023. Excludes $1.6 million in held for
sale at September 30, 2023. (B) Amounts reflect modifications that
are paying according to modified terms.(C) Excludes modifications
included in nonaccrual loans of $3.0 million at December 31, 2023,
$3.1 million at September 30, 2023 and $777,000 at June 30,
2023.(D) Amounts reflect troubled debt restructurings (“TDRs”) that
are paying according to restructured terms.(E) Excludes TDRs
included in nonaccrual loans of $13.4 million at December 31, 2022.
On January 1, 2023, the Company adopted Accounting Standards Update
2022-02, which replaced the accounting and recognition of TDRs.(F)
Includes $16.5 million outstanding to U.S. governmental entities at
December 31, 2023 and $8.2 million of outstanding multifamily loans
to one sponsor. December 31, 2022 includes $4.5 million outstanding
to U.S. governmental entities.(G) Provision to roll forward the ACL
excludes a credit of $55,000 at December 31, 2023, a credit of
$88,000 at September 30, 2023, a provision of $30,000 at June 30,
2023, a provision of $49,000 at March 31, 2023 and a credit of
$173,000 at December 31, 2022 related to off-balance sheet
commitments.(H) Net charge-offs for the quarter ended December 31,
2023 included charge-offs of $2.2 million of a previously
established reserve to loans individually evaluated on one
multifamily loan and $5.6 million on one equipment finance
relationship. Net charge-offs for the quarters ended June 30, 2023
and December 31, 2022 included a charge-off of $1.2 million of a
previously established reserve to loans individually evaluated on
one commercial real estate loan.(I) Total ACL less reserves to
loans individually evaluated equals collectively evaluated ACL.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONSELECTED BALANCE SHEET DATA(Dollars in
Thousands)(Unaudited)
| |
|
As of |
|
| |
|
December 31, |
|
|
September 30, |
|
|
December 31, |
|
| |
|
2023 |
|
|
2023 |
|
|
2022 |
|
| Capital
Adequacy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity to total assets
(A) |
|
|
|
|
9.01 |
% |
|
|
|
|
8.57 |
% |
|
|
|
|
8.39 |
% |
| Tangible equity to
tangible assets (B) |
|
|
|
|
8.36 |
% |
|
|
|
|
7.92 |
% |
|
|
|
|
7.70 |
% |
| Book value per share
(C) |
|
|
|
$ |
32.90 |
|
|
|
|
$ |
31.37 |
|
|
|
|
$ |
29.92 |
|
| Tangible book value
per share (D) |
|
|
|
$ |
30.31 |
|
|
|
|
$ |
28.77 |
|
|
|
|
$ |
27.26 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible equity to
tangible assets excluding other comprehensive loss* |
|
|
|
|
9.28 |
% |
|
|
|
|
9.06 |
% |
|
|
|
|
8.77 |
% |
| Tangible book value
per share excluding other comprehensive loss* |
|
|
|
$ |
33.97 |
|
|
|
|
$ |
33.36 |
|
|
|
|
$ |
31.43 |
|
*Excludes other comprehensive loss of $64.9
million for the quarter ended December 31, 2023, $81.7 million for
the quarter ended September 30, 2023, and $74.2 million for the
quarter ended December 31, 2022. See Non-GAAP financial
measures reconciliation included in these tables.
(A) Equity to total assets is calculated as
total shareholders’ equity as a percentage of total assets at
quarter 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 quarter end is calculated by
dividing tangible equity by tangible assets at quarter end.
See Non-GAAP financial measures reconciliation included in these
tables.(C) Book value per common share is calculated by dividing
shareholders’ equity by quarter 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 quarter end common shares outstanding. See Non-GAAP
financial measures reconciliation tables.
| |
|
As of |
| |
|
December 31, |
|
September 30, |
|
December 31, |
| |
|
2023 |
|
2023 |
|
2022 |
| Regulatory Capital
– Holding Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tier I leverage |
|
$ |
600,444 |
|
|
9.19% |
|
$ |
592,061 |
|
|
9.05% |
|
$ |
557,627 |
|
|
8.90% |
| Tier I capital to
risk-weighted assets |
|
|
600,444 |
|
|
11.43 |
|
|
592,061 |
|
|
11.13 |
|
|
557,627 |
|
|
11.02 |
| Common equity tier I
capital ratio to risk-weighted assets |
|
|
600,432 |
|
|
11.43 |
|
|
592,043 |
|
|
11.13 |
|
|
557,609 |
|
|
11.02 |
| Tier I & II
capital to risk-weighted assets |
|
|
785,413 |
|
|
14.95 |
|
|
784,777 |
|
|
14.76 |
|
|
745,197 |
|
|
14.73 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Regulatory Capital
– Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tier I leverage
(E) |
|
$ |
707,446 |
|
|
10.83% |
|
$ |
702,517 |
|
|
10.75% |
|
$ |
680,137 |
|
|
10.85% |
| Tier I capital to
risk-weighted assets (F) |
|
|
707,446 |
|
|
13.48 |
|
|
702,517 |
|
|
13.22 |
|
|
680,137 |
|
|
13.45 |
| Common equity tier I
capital ratio to risk-weighted assets (G) |
|
|
707,434 |
|
|
13.47 |
|
|
702,499 |
|
|
13.22 |
|
|
680,119 |
|
|
13.45 |
| Tier I & II
capital to risk-weighted assets (H) |
|
|
773,083 |
|
|
14.73 |
|
|
768,979 |
|
|
14.47 |
|
|
741,719 |
|
|
14.67 |
(E) Regulatory well capitalized standard
(including capital conservation buffer) = 4.00% ($261 million)(F)
Regulatory well capitalized standard (including capital
conservation buffer) = 8.50% ($446 million)(G) Regulatory well
capitalized standard (including capital conservation buffer) =
7.00% ($368 million)(H) Regulatory well capitalized standard
(including capital conservation buffer) = 10.50% ($551 million)
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONLOANS CLOSED(Dollars in
Thousands)(Unaudited)
| |
|
For the Quarters Ended |
|
| |
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
| |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
| Residential loans
retained |
|
$ |
5,895 |
|
|
$ |
21,310 |
|
|
$ |
39,358 |
|
|
$ |
30,303 |
|
|
$ |
28,051 |
|
| Residential loans
sold |
|
|
1,449 |
|
|
|
2,503 |
|
|
|
1,072 |
|
|
|
1,477 |
|
|
|
1,840 |
|
|
Total residential loans |
|
|
7,344 |
|
|
|
23,813 |
|
|
|
40,430 |
|
|
|
31,780 |
|
|
|
29,891 |
|
| Commercial real
estate |
|
|
21,375 |
|
|
|
3,900 |
|
|
|
43,235 |
|
|
|
18,990 |
|
|
|
6,747 |
|
| Multifamily |
|
|
5,725 |
|
|
|
3,000 |
|
|
|
26,662 |
|
|
|
30,150 |
|
|
|
37,500 |
|
| Commercial (C&I)
loans/leases (A) (B) |
|
|
145,397 |
|
|
|
176,845 |
|
|
|
158,972 |
|
|
|
207,814 |
|
|
|
238,568 |
|
| SBA |
|
|
7,326 |
|
|
|
300 |
|
|
|
13,713 |
|
|
|
9,950 |
|
|
|
17,431 |
|
| Wealth lines of credit
(A) |
|
|
350 |
|
|
|
6,875 |
|
|
|
3,950 |
|
|
|
23,225 |
|
|
|
7,700 |
|
|
Total commercial loans |
|
|
180,173 |
|
|
|
190,920 |
|
|
|
246,532 |
|
|
|
290,129 |
|
|
|
307,946 |
|
| Installment loans |
|
|
2,946 |
|
|
|
6,999 |
|
|
|
4,587 |
|
|
|
12,086 |
|
|
|
1,845 |
|
| Home equity lines of
credit (A) |
|
|
4,174 |
|
|
|
6,275 |
|
|
|
6,107 |
|
|
|
2,921 |
|
|
|
3,815 |
|
|
Total loans closed |
|
$ |
194,637 |
|
|
$ |
228,007 |
|
|
$ |
297,656 |
|
|
$ |
336,916 |
|
|
$ |
343,497 |
|
| |
|
For the Twelve Months Ended |
|
| |
|
Dec 31, |
|
|
Dec 31, |
|
| |
|
2023 |
|
|
2022 |
|
| Residential loans
retained |
|
$ |
96,866 |
|
|
$ |
122,655 |
|
| Residential loans
sold |
|
|
6,501 |
|
|
|
32,293 |
|
|
Total residential loans |
|
|
103,367 |
|
|
|
154,948 |
|
| Commercial real
estate |
|
|
87,500 |
|
|
|
53,602 |
|
| Multifamily |
|
|
65,537 |
|
|
|
381,714 |
|
| Commercial (C&I)
loans (A) (B) |
|
|
689,028 |
|
|
|
965,647 |
|
| SBA |
|
|
31,289 |
|
|
|
59,740 |
|
| Wealth lines of credit
(A) |
|
|
34,400 |
|
|
|
34,125 |
|
|
Total commercial loans |
|
|
907,754 |
|
|
|
1,494,828 |
|
| Installment loans |
|
|
26,618 |
|
|
|
3,329 |
|
| Home equity lines of
credit (A) |
|
|
19,477 |
|
|
|
14,667 |
|
|
Total loans closed |
|
$ |
1,057,216 |
|
|
$ |
1,667,772 |
|
(A) Includes loans and lines of credit that
closed in the period but not necessarily funded.(B) Includes
equipment finance.
PEAPACK-GLADSTONE FINANCIAL
CORPORATIONAVERAGE BALANCE SHEET(Tax-Equivalent Basis,
Dollars in Thousands)(Unaudited)
| |
|
For the Three Months Ended |
|
|
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
|
|
|
Average |
|
|
Income/ |
|
|
Annualized |
|
|
Average |
|
|
Income/ |
|
|
Annualized |
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
| ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
798,661 |
|
|
$ |
5,202 |
|
|
|
2.61 |
% |
|
$ |
761,164 |
|
|
$ |
3,859 |
|
|
|
2.03 |
% |
|
Tax-exempt (A) (B) |
|
|
106 |
|
|
|
— |
|
|
|
— |
|
|
|
1,999 |
|
|
|
20 |
|
|
|
4.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
581,088 |
|
|
|
5,300 |
|
|
|
3.65 |
|
|
|
516,721 |
|
|
|
4,017 |
|
|
|
3.11 |
|
|
Commercial mortgages |
|
|
2,492,204 |
|
|
|
28,318 |
|
|
|
4.55 |
|
|
|
2,497,847 |
|
|
|
25,007 |
|
|
|
4.00 |
|
|
Commercial |
|
|
2,274,841 |
|
|
|
37,958 |
|
|
|
6.67 |
|
|
|
2,136,355 |
|
|
|
29,314 |
|
|
|
5.49 |
|
|
Commercial construction |
|
|
16,680 |
|
|
|
382 |
|
|
|
9.16 |
|
|
|
4,213 |
|
|
|
68 |
|
|
|
6.46 |
|
|
Installment |
|
|
59,988 |
|
|
|
1,037 |
|
|
|
6.91 |
|
|
|
36,648 |
|
|
|
496 |
|
|
|
5.41 |
|
|
Home equity |
|
|
35,570 |
|
|
|
721 |
|
|
|
8.11 |
|
|
|
36,067 |
|
|
|
550 |
|
|
|
6.10 |
|
|
Other |
|
|
246 |
|
|
|
8 |
|
|
|
13.01 |
|
|
|
292 |
|
|
|
8 |
|
|
|
10.96 |
|
|
Total loans |
|
|
5,460,617 |
|
|
|
73,724 |
|
|
|
5.40 |
|
|
|
5,228,143 |
|
|
|
59,460 |
|
|
|
4.55 |
|
|
Federal funds sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Interest-earning deposits |
|
|
146,699 |
|
|
|
1,623 |
|
|
|
4.43 |
|
|
|
161,573 |
|
|
|
1,258 |
|
|
|
3.11 |
|
|
Total interest-earning assets |
|
|
6,406,083 |
|
|
|
80,549 |
|
|
|
5.03 |
% |
|
|
6,152,879 |
|
|
|
64,597 |
|
|
|
4.20 |
% |
| Noninterest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
10,709 |
|
|
|
|
|
|
|
|
|
6,723 |
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(68,289 |
) |
|
|
|
|
|
|
|
|
(60,070 |
) |
|
|
|
|
|
|
|
Premises and equipment |
|
|
24,387 |
|
|
|
|
|
|
|
|
|
23,682 |
|
|
|
|
|
|
|
|
Other assets |
|
|
85,720 |
|
|
|
|
|
|
|
|
|
83,641 |
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
52,527 |
|
|
|
|
|
|
|
|
|
53,976 |
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,458,610 |
|
|
|
|
|
|
|
|
$ |
6,206,855 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
2,890,964 |
|
|
$ |
25,811 |
|
|
|
3.57 |
% |
|
$ |
2,222,130 |
|
|
$ |
9,165 |
|
|
|
1.65 |
% |
|
Money markets |
|
|
771,051 |
|
|
|
5,247 |
|
|
|
2.72 |
|
|
|
1,246,179 |
|
|
|
3,438 |
|
|
|
1.10 |
|
|
Savings |
|
|
112,969 |
|
|
|
81 |
|
|
|
0.29 |
|
|
|
161,569 |
|
|
|
12 |
|
|
|
0.03 |
|
|
Certificates of deposit – retail |
|
|
440,712 |
|
|
|
4,086 |
|
|
|
3.71 |
|
|
|
360,589 |
|
|
|
922 |
|
|
|
1.02 |
|
|
Subtotal interest-bearing deposits |
|
|
4,215,696 |
|
|
|
35,225 |
|
|
|
3.34 |
|
|
|
3,990,467 |
|
|
|
13,537 |
|
|
|
1.36 |
|
|
Interest-bearing demand – brokered |
|
|
10,000 |
|
|
|
142 |
|
|
|
5.68 |
|
|
|
81,739 |
|
|
|
497 |
|
|
|
2.43 |
|
|
Certificates of deposit – brokered |
|
|
115,722 |
|
|
|
1,454 |
|
|
|
5.03 |
|
|
|
25,979 |
|
|
|
210 |
|
|
|
3.23 |
|
|
Total interest-bearing deposits |
|
|
4,341,418 |
|
|
|
36,821 |
|
|
|
3.39 |
|
|
|
4,098,185 |
|
|
|
14,244 |
|
|
|
1.39 |
|
|
Borrowings |
|
|
357,384 |
|
|
|
4,955 |
|
|
|
5.55 |
|
|
|
43,710 |
|
|
|
497 |
|
|
|
4.55 |
|
|
Capital lease obligation |
|
|
3,539 |
|
|
|
42 |
|
|
|
4.75 |
|
|
|
4,803 |
|
|
|
58 |
|
|
|
4.83 |
|
|
Subordinated debt |
|
|
133,234 |
|
|
|
1,685 |
|
|
|
5.06 |
|
|
|
132,947 |
|
|
|
1,363 |
|
|
|
4.10 |
|
|
Total interest-bearing liabilities |
|
|
4,835,575 |
|
|
|
43,503 |
|
|
|
3.60 |
% |
|
|
4,279,645 |
|
|
|
16,162 |
|
|
|
1.51 |
% |
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
963,968 |
|
|
|
|
|
|
|
|
|
1,303,432 |
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
98,012 |
|
|
|
|
|
|
|
|
|
100,372 |
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,061,980 |
|
|
|
|
|
|
|
|
|
1,403,804 |
|
|
|
|
|
|
|
| Shareholders’
equity |
|
|
561,055 |
|
|
|
|
|
|
|
|
|
523,406 |
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
6,458,610 |
|
|
|
|
|
|
|
|
$ |
6,206,855 |
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
37,046 |
|
|
|
|
|
|
|
|
$ |
48,435 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
1.43 |
% |
|
|
|
|
|
|
|
|
2.69 |
% |
|
Net interest margin (D) |
|
|
|
|
|
|
|
|
2.29 |
% |
|
|
|
|
|
|
|
|
3.12 |
% |
(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
CORPORATIONAVERAGE BALANCE SHEET(Tax-Equivalent Basis,
Dollars in Thousands)(Unaudited)
| |
|
For the Three Months Ended |
|
|
|
|
December 31, 2023 |
|
|
September 30, 2023 |
|
|
|
|
Average |
|
|
Income/ |
|
|
Annualized |
|
|
Average |
|
|
Income/ |
|
|
Annualized |
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
| ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
798,661 |
|
|
$ |
5,202 |
|
|
|
2.61 |
% |
|
$ |
806,861 |
|
|
$ |
5,170 |
|
|
|
2.56 |
% |
|
Tax-exempt (A) (B) |
|
|
106 |
|
|
|
— |
|
|
|
— |
|
|
|
1,198 |
|
|
|
11 |
|
|
|
3.67 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
581,088 |
|
|
|
5,300 |
|
|
|
3.65 |
|
|
|
580,951 |
|
|
|
5,208 |
|
|
|
3.59 |
|
|
Commercial mortgages |
|
|
2,492,204 |
|
|
|
28,318 |
|
|
|
4.55 |
|
|
|
2,502,351 |
|
|
|
27,746 |
|
|
|
4.44 |
|
|
Commercial |
|
|
2,274,841 |
|
|
|
37,958 |
|
|
|
6.67 |
|
|
|
2,298,723 |
|
|
|
37,357 |
|
|
|
6.50 |
|
|
Commercial construction |
|
|
16,680 |
|
|
|
382 |
|
|
|
9.16 |
|
|
|
12,346 |
|
|
|
282 |
|
|
|
9.14 |
|
|
Installment |
|
|
59,988 |
|
|
|
1,037 |
|
|
|
6.91 |
|
|
|
56,248 |
|
|
|
967 |
|
|
|
6.88 |
|
|
Home equity |
|
|
35,570 |
|
|
|
721 |
|
|
|
8.11 |
|
|
|
34,250 |
|
|
|
680 |
|
|
|
7.94 |
|
|
Other |
|
|
246 |
|
|
|
8 |
|
|
|
13.01 |
|
|
|
234 |
|
|
|
7 |
|
|
|
11.97 |
|
|
Total loans |
|
|
5,460,617 |
|
|
|
73,724 |
|
|
|
5.40 |
|
|
|
5,485,103 |
|
|
|
72,247 |
|
|
|
5.27 |
|
|
Federal funds sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Interest-earning deposits |
|
|
146,699 |
|
|
|
1,623 |
|
|
|
4.43 |
|
|
|
136,315 |
|
|
|
1,463 |
|
|
|
4.29 |
|
|
Total interest-earning assets |
|
|
6,406,083 |
|
|
|
80,549 |
|
|
|
5.03 |
% |
|
|
6,429,477 |
|
|
|
78,891 |
|
|
|
4.91 |
% |
| Noninterest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
10,709 |
|
|
|
|
|
|
|
|
|
6,954 |
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(68,289 |
) |
|
|
|
|
|
|
|
|
(63,625 |
) |
|
|
|
|
|
|
|
Premises and equipment |
|
|
24,387 |
|
|
|
|
|
|
|
|
|
23,880 |
|
|
|
|
|
|
|
|
Other assets |
|
|
85,720 |
|
|
|
|
|
|
|
|
|
85,582 |
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
52,527 |
|
|
|
|
|
|
|
|
|
52,791 |
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,458,610 |
|
|
|
|
|
|
|
|
$ |
6,482,268 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
2,890,964 |
|
|
$ |
25,811 |
|
|
|
3.57 |
% |
|
$ |
2,813,080 |
|
|
$ |
24,318 |
|
|
|
3.46 |
% |
|
Money markets |
|
|
771,051 |
|
|
|
5,247 |
|
|
|
2.72 |
|
|
|
771,781 |
|
|
|
4,458 |
|
|
|
2.31 |
|
|
Savings |
|
|
112,969 |
|
|
|
81 |
|
|
|
0.29 |
|
|
|
118,718 |
|
|
|
75 |
|
|
|
0.25 |
|
|
Certificates of deposit – retail |
|
|
440,712 |
|
|
|
4,086 |
|
|
|
3.71 |
|
|
|
415,665 |
|
|
|
3,459 |
|
|
|
3.33 |
|
|
Subtotal interest-bearing deposits |
|
|
4,215,696 |
|
|
|
35,225 |
|
|
|
3.34 |
|
|
|
4,119,244 |
|
|
|
32,310 |
|
|
|
3.14 |
|
|
Interest-bearing demand – brokered |
|
|
10,000 |
|
|
|
142 |
|
|
|
5.68 |
|
|
|
10,000 |
|
|
|
136 |
|
|
|
5.44 |
|
|
Certificates of deposit – brokered |
|
|
115,722 |
|
|
|
1,454 |
|
|
|
5.03 |
|
|
|
102,777 |
|
|
|
1,183 |
|
|
|
4.60 |
|
|
Total interest-bearing deposits |
|
|
4,341,418 |
|
|
|
36,821 |
|
|
|
3.39 |
|
|
|
4,232,021 |
|
|
|
33,629 |
|
|
|
3.18 |
|
|
Borrowings |
|
|
357,384 |
|
|
|
4,955 |
|
|
|
5.55 |
|
|
|
470,616 |
|
|
|
6,569 |
|
|
|
5.58 |
|
|
Capital lease obligation |
|
|
3,539 |
|
|
|
42 |
|
|
|
4.75 |
|
|
|
3,863 |
|
|
|
46 |
|
|
|
4.76 |
|
|
Subordinated debt |
|
|
133,234 |
|
|
|
1,685 |
|
|
|
5.06 |
|
|
|
133,163 |
|
|
|
1,730 |
|
|
|
5.20 |
|
|
Total interest-bearing liabilities |
|
|
4,835,575 |
|
|
|
43,503 |
|
|
|
3.60 |
% |
|
|
4,839,663 |
|
|
|
41,974 |
|
|
|
3.47 |
% |
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
963,968 |
|
|
|
|
|
|
|
|
|
990,854 |
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
98,012 |
|
|
|
|
|
|
|
|
|
86,598 |
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,061,980 |
|
|
|
|
|
|
|
|
|
1,077,452 |
|
|
|
|
|
|
|
| Shareholders’
equity |
|
|
561,055 |
|
|
|
|
|
|
|
|
|
565,153 |
|
|
|
|
|
|
|
| Total liabilities and
shareholders’ equity |
|
$ |
6,458,610 |
|
|
|
|
|
|
|
|
$ |
6,482,268 |
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
37,046 |
|
|
|
|
|
|
|
|
$ |
36,917 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
1.43 |
% |
|
|
|
|
|
|
|
|
1.44 |
% |
|
Net interest margin (D) |
|
|
|
|
|
|
|
|
2.29 |
% |
|
|
|
|
|
|
|
|
2.28 |
% |
(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
CORPORATIONAVERAGE BALANCE SHEET(Tax-Equivalent Basis,
Dollars in Thousands)(Unaudited)
| |
|
For the Twelve Months Ended |
|
|
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
Average |
|
|
Income/ |
|
|
|
|
|
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
|
Balance |
|
|
Expense |
|
|
Yield |
|
| ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable (A) |
|
$ |
800,811 |
|
|
$ |
19,743 |
|
|
|
2.47 |
% |
|
$ |
803,982 |
|
|
$ |
13,854 |
|
|
|
1.72 |
% |
|
Tax-exempt (A) (B) |
|
|
1,251 |
|
|
|
50 |
|
|
|
4.00 |
|
|
|
3,521 |
|
|
|
137 |
|
|
|
3.89 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (B) (C): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgages |
|
|
562,488 |
|
|
|
19,733 |
|
|
|
3.51 |
|
|
|
513,189 |
|
|
|
15,165 |
|
|
|
2.96 |
|
|
Commercial mortgages |
|
|
2,494,427 |
|
|
|
108,819 |
|
|
|
4.36 |
|
|
|
2,478,891 |
|
|
|
87,488 |
|
|
|
3.53 |
|
|
Commercial |
|
|
2,254,617 |
|
|
|
144,141 |
|
|
|
6.39 |
|
|
|
2,046,735 |
|
|
|
90,225 |
|
|
|
4.41 |
|
|
Commercial construction |
|
|
10,115 |
|
|
|
918 |
|
|
|
9.08 |
|
|
|
12,600 |
|
|
|
533 |
|
|
|
4.23 |
|
|
Installment |
|
|
51,929 |
|
|
|
3,454 |
|
|
|
6.65 |
|
|
|
36,685 |
|
|
|
1,447 |
|
|
|
3.94 |
|
|
Home equity |
|
|
34,332 |
|
|
|
2,624 |
|
|
|
7.64 |
|
|
|
37,755 |
|
|
|
1,656 |
|
|
|
4.39 |
|
|
Other |
|
|
257 |
|
|
|
29 |
|
|
|
11.28 |
|
|
|
274 |
|
|
|
26 |
|
|
|
9.49 |
|
|
Total loans |
|
|
5,408,165 |
|
|
|
279,718 |
|
|
|
5.17 |
|
|
|
5,126,129 |
|
|
|
196,540 |
|
|
|
3.83 |
|
|
Federal funds sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Interest-earning deposits |
|
|
146,977 |
|
|
|
6,075 |
|
|
|
4.13 |
|
|
|
171,491 |
|
|
|
2,763 |
|
|
|
1.61 |
|
|
Total interest-earning assets |
|
|
6,357,204 |
|
|
|
305,586 |
|
|
|
4.81 |
% |
|
|
6,105,123 |
|
|
|
213,294 |
|
|
|
3.49 |
% |
| Noninterest-earning
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
|
8,973 |
|
|
|
|
|
|
|
|
|
8,046 |
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
|
(64,149 |
) |
|
|
|
|
|
|
|
|
(60,037 |
) |
|
|
|
|
|
|
|
Premises and equipment |
|
|
23,986 |
|
|
|
|
|
|
|
|
|
23,312 |
|
|
|
|
|
|
|
|
Other assets |
|
|
79,192 |
|
|
|
|
|
|
|
|
|
111,893 |
|
|
|
|
|
|
|
|
Total noninterest-earning assets |
|
|
48,002 |
|
|
|
|
|
|
|
|
|
83,214 |
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,405,206 |
|
|
|
|
|
|
|
|
$ |
6,188,337 |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking |
|
$ |
2,777,390 |
|
|
$ |
88,829 |
|
|
|
3.20 |
% |
|
$ |
2,363,412 |
|
|
$ |
17,861 |
|
|
|
0.76 |
% |
|
Money markets |
|
|
862,686 |
|
|
|
18,432 |
|
|
|
2.14 |
|
|
|
1,253,032 |
|
|
|
6,113 |
|
|
|
0.49 |
|
|
Savings |
|
|
124,538 |
|
|
|
229 |
|
|
|
0.18 |
|
|
|
162,396 |
|
|
|
26 |
|
|
|
0.02 |
|
|
Certificates of deposit – retail |
|
|
400,155 |
|
|
|
11,736 |
|
|
|
2.93 |
|
|
|
397,128 |
|
|
|
2,971 |
|
|
|
0.75 |
|
|
Subtotal interest-bearing deposits |
|
|
4,164,769 |
|
|
|
119,226 |
|
|
|
2.86 |
|
|
|
4,175,968 |
|
|
|
26,971 |
|
|
|
0.65 |
|
|
Interest-bearing demand – brokered |
|
|
13,973 |
|
|
|
611 |
|
|
|
4.37 |
|
|
|
84,178 |
|
|
|
1,579 |
|
|
|
1.88 |
|
|
Certificates of deposit – brokered |
|
|
67,998 |
|
|
|
3,038 |
|
|
|
4.47 |
|
|
|
29,778 |
|
|
|
942 |
|
|
|
3.16 |
|
|
Total interest-bearing deposits |
|
|
4,246,740 |
|
|
|
122,875 |
|
|
|
2.89 |
|
|
|
4,289,924 |
|
|
|
29,492 |
|
|
|
0.69 |
|
|
Borrowings |
|
|
337,777 |
|
|
|
18,204 |
|
|
|
5.39 |
|
|
|
26,631 |
|
|
|
600 |
|
|
|
2.25 |
|
|
Capital lease obligation |
|
|
4,018 |
|
|
|
191 |
|
|
|
4.75 |
|
|
|
5,241 |
|
|
|
250 |
|
|
|
4.77 |
|
|
Subordinated debt |
|
|
133,127 |
|
|
|
6,651 |
|
|
|
5.00 |
|
|
|
132,839 |
|
|
|
5,453 |
|
|
|
4.10 |
|
|
Total interest-bearing liabilities |
|
|
4,721,662 |
|
|
|
147,921 |
|
|
|
3.13 |
% |
|
|
4,454,635 |
|
|
|
35,795 |
|
|
|
0.80 |
% |
| Noninterest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
|
1,040,403 |
|
|
|
|
|
|
|
|
|
1,107,943 |
|
|
|
|
|
|
|
|
Accrued expenses and other liabilities |
|
|
86,193 |
|
|
|
|
|
|
|
|
|
96,331 |
|
|
|
|
|
|
|
|
Total noninterest-bearing liabilities |
|
|
1,126,596 |
|
|
|
|
|
|
|
|
|
1,204,274 |
|
|
|
|
|
|
|
| Shareholders’
equity |
|
|
556,948 |
|
|
|
|
|
|
|
|
|
529,428 |
|
|
|
|
|
|
|
| Total liabilities and
shareholders’ equity |
|
$ |
6,405,206 |
|
|
|
|
|
|
|
|
$ |
6,188,337 |
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
157,665 |
|
|
|
|
|
|
|
|
$ |
177,499 |
|
|
|
|
|
Net interest spread |
|
|
|
|
|
|
|
|
1.68 |
% |
|
|
|
|
|
|
|
|
2.69 |
% |
|
Net interest margin (D) |
|
|
|
|
|
|
|
|
2.48 |
% |
|
|
|
|
|
|
|
|
2.91 |
% |
(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
CORPORATIONNON-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 common shares outstanding, as
compared to book value per common share, which we calculate by
dividing shareholders’ equity by common shares outstanding at
period end. 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 per share
data)
| |
|
Three Months Ended |
|
| |
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
| Tangible Book
Value Per Share |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
| Shareholders’
equity |
|
$ |
583,681 |
|
|
$ |
558,956 |
|
|
$ |
565,069 |
|
|
$ |
554,958 |
|
|
$ |
532,980 |
|
| Less: Intangible
assets, net |
|
|
46,014 |
|
|
|
46,286 |
|
|
|
46,624 |
|
|
|
46,979 |
|
|
|
47,333 |
|
|
Tangible equity |
|
$ |
537,667 |
|
|
$ |
512,670 |
|
|
$ |
518,445 |
|
|
$ |
507,979 |
|
|
$ |
485,647 |
|
|
Less: other comprehensive loss |
|
|
(64,878 |
) |
|
|
(81,653 |
) |
|
|
(67,997 |
) |
|
|
(67,445 |
) |
|
|
(74,211 |
) |
|
Tangible equity excluding other comprehensive loss |
|
$ |
602,545 |
|
|
$ |
594,323 |
|
|
$ |
586,442 |
|
|
$ |
575,424 |
|
|
$ |
559,858 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Period end shares
outstanding |
|
|
17,739,677 |
|
|
|
17,816,922 |
|
|
|
17,887,895 |
|
|
|
18,014,757 |
|
|
|
17,813,451 |
|
| Tangible book value
per share |
|
$ |
30.31 |
|
|
$ |
28.77 |
|
|
$ |
28.98 |
|
|
$ |
28.20 |
|
|
$ |
27.26 |
|
| Tangible book value
per share excluding other comprehensive loss |
|
$ |
33.97 |
|
|
$ |
33.36 |
|
|
$ |
32.78 |
|
|
$ |
31.94 |
|
|
$ |
31.43 |
|
| Book value per
share |
|
|
32.90 |
|
|
|
31.37 |
|
|
|
31.59 |
|
|
|
30.81 |
|
|
|
29.92 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Equity to
Tangible Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
6,476,857 |
|
|
$ |
6,521,581 |
|
|
$ |
6,479,700 |
|
|
$ |
6,480,018 |
|
|
$ |
6,353,593 |
|
| Less: Intangible
assets, net |
|
|
46,014 |
|
|
|
46,286 |
|
|
|
46,624 |
|
|
|
46,979 |
|
|
|
47,333 |
|
|
Tangible assets |
|
$ |
6,430,843 |
|
|
$ |
6,475,295 |
|
|
$ |
6,433,076 |
|
|
$ |
6,433,039 |
|
|
$ |
6,306,260 |
|
|
Less: other comprehensive loss |
|
|
(64,878 |
) |
|
|
(81,653 |
) |
|
|
(67,997 |
) |
|
|
(67,445 |
) |
|
|
(74,211 |
) |
|
Tangible assets excluding other comprehensive loss |
|
$ |
6,495,721 |
|
|
$ |
6,556,948 |
|
|
$ |
6,501,073 |
|
|
$ |
6,500,484 |
|
|
$ |
6,380,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible equity to
tangible assets |
|
|
8.36 |
% |
|
|
7.92 |
% |
|
|
8.06 |
% |
|
|
7.90 |
% |
|
|
7.70 |
% |
| Tangible equity to
tangible assets excluding other comprehensive loss |
|
|
9.28 |
% |
|
|
9.06 |
% |
|
|
9.02 |
% |
|
|
8.85 |
% |
|
|
8.77 |
% |
| Equity to assets |
|
|
9.01 |
% |
|
|
8.57 |
% |
|
|
8.72 |
% |
|
|
8.56 |
% |
|
|
8.39 |
% |
(Dollars in thousands, except per share data)
| |
|
Three Months Ended |
|
| |
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
| Return on
Average Tangible Equity |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
| Net income |
|
$ |
8,599 |
|
|
$ |
8,755 |
|
|
$ |
13,145 |
|
|
$ |
18,355 |
|
|
$ |
20,579 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average shareholders’
equity |
|
$ |
561,055 |
|
|
$ |
565,153 |
|
|
$ |
557,428 |
|
|
$ |
543,861 |
|
|
$ |
523,406 |
|
| Less: Average
intangible assets, net |
|
|
46,167 |
|
|
|
46,468 |
|
|
|
46,828 |
|
|
|
47,189 |
|
|
|
47,531 |
|
|
Average tangible equity |
|
$ |
514,888 |
|
|
$ |
518,685 |
|
|
$ |
510,600 |
|
|
$ |
496,672 |
|
|
$ |
475,875 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return on average
tangible common equity |
|
|
6.68 |
% |
|
|
6.75 |
% |
|
|
10.30 |
% |
|
|
14.78 |
% |
|
|
17.30 |
% |
| |
|
For the Twelve Months Ended |
|
| |
|
Dec 31, |
|
|
Dec 31, |
|
| Return on
Average Tangible Equity |
|
2023 |
|
|
2022 |
|
| Net income |
|
$ |
48,854 |
|
|
$ |
74,246 |
|
| |
|
|
|
|
|
|
| Average shareholders’
equity |
|
$ |
556,948 |
|
|
$ |
529,428 |
|
| Less: Average
intangible assets, net |
|
|
46,659 |
|
|
|
48,111 |
|
|
Average tangible equity |
|
|
510,289 |
|
|
|
481,317 |
|
| |
|
|
|
|
|
|
| Return on average
tangible common equity |
|
|
9.57 |
% |
|
|
15.43 |
% |
(Dollars in thousands, except per share data)
| |
|
Three Months Ended |
|
| |
|
Dec 31, |
|
|
Sept 30, |
|
|
June 30, |
|
|
March 31, |
|
|
Dec 31, |
|
| Efficiency
Ratio |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
| Net interest
income |
|
$ |
36,675 |
|
|
$ |
36,515 |
|
|
$ |
38,921 |
|
|
$ |
43,978 |
|
|
$ |
48,040 |
|
| Total other
income |
|
|
17,590 |
|
|
|
19,354 |
|
|
|
18,575 |
|
|
|
18,059 |
|
|
|
16,812 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value adjustment
for CRA equity security |
|
|
(585 |
) |
|
|
404 |
|
|
|
209 |
|
|
|
(209 |
) |
|
|
(28 |
) |
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on sale of
property |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(275 |
) |
| Income from life
insurance proceeds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
| Total recurring
revenue |
|
|
53,680 |
|
|
|
56,273 |
|
|
|
57,705 |
|
|
|
61,828 |
|
|
|
64,524 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
expenses |
|
|
37,616 |
|
|
|
37,413 |
|
|
|
37,692 |
|
|
|
35,574 |
|
|
|
33,412 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accelerated Expense
for Retirement |
|
|
— |
|
|
|
— |
|
|
|
1,665 |
|
|
|
300 |
|
|
|
— |
|
| Branch Closure
Expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
175 |
|
|
|
— |
|
| Total operating
expense |
|
|
37,616 |
|
|
|
37,413 |
|
|
|
36,027 |
|
|
|
35,099 |
|
|
|
33,412 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio |
|
|
70.07 |
% |
|
|
66.48 |
% |
|
|
62.43 |
% |
|
|
56.77 |
% |
|
|
51.78 |
% |
| |
|
For the Twelve Months Ended |
|
| |
|
Dec 31, |
|
|
Dec 31, |
|
| Efficiency
Ratio |
|
2023 |
|
|
2022 |
|
| Net interest
income |
|
$ |
156,089 |
|
|
$ |
176,080 |
|
| Total other
income |
|
|
73,578 |
|
|
|
66,417 |
|
| Add: |
|
|
|
|
|
|
| Fair value adjustment
for CRA equity security |
|
|
(181 |
) |
|
|
1,700 |
|
| Less: |
|
|
|
|
|
|
| Loss on securities
sale, net |
|
|
— |
|
|
|
6,609 |
|
| Gain on sale of
property |
|
|
— |
|
|
|
(275 |
) |
| Income from life
insurance proceeds |
|
|
— |
|
|
|
(25 |
) |
| Total recurring
revenue |
|
|
229,486 |
|
|
|
250,506 |
|
| |
|
|
|
|
|
|
| Operating
expenses |
|
|
148,295 |
|
|
|
133,800 |
|
| Less: |
|
|
|
|
|
|
| Swap valuation
allowance |
|
|
— |
|
|
|
673 |
|
| Accelerated Expense
for Retirement |
|
|
1,965 |
|
|
|
— |
|
| Branch Closure
Expense |
|
|
175 |
|
|
|
— |
|
| Severance expense |
|
|
— |
|
|
|
1,476 |
|
| Total operating
expense |
|
|
146,155 |
|
|
|
131,651 |
|
| |
|
|
|
|
|
|
| Efficiency ratio |
|
|
63.69 |
% |
|
|
52.55 |
% |
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