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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
April 21, 2003
Date of Report (Date of earliest event reported)
PEAPACK-GLADSTONE FINANCIAL CORPORATION
(Exact name of Registrant as Specified in its Charter)
New Jersey
(State or Other Jurisdiction of Incorporation)
001-16197 22-3537895
(Commission File Number) (IRS Employer Identification No.)
158 Route 206, Gladstone, New Jersey 07934
(Address of principal executive offices)
(908) 234-0700
(Registrant's telephone number, including area code)
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INFORMATION TO BE INCLUDED IN THE REPORT
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
Exhibit No. Title
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99.1 Press Release dated April 21, 2003.
Items 9 and 12.
The following information is disclosed pursuant to Item 12 on Form 8-K:
On April 21, 2003, Peapack-Gladstone Financial Corporation issued a press
release reporting earnings and other financial results for its first quarter of
2003, which ended March 31, 2003. A copy of the press release is attached as
Exhibit 99.1.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
Dated: April 22, 2003 By:
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Arthur F. Birmingham
Executive Vice President and
Chief Financial Officer
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Contact:
Arthur F. Birmingham
Peapack-Gladstone Financial Corporation
T: 908-719-4308
PEAPACK-GLADSTONE FINANCIAL CORPORATION
REPORTS 10 PERCENT INCREASE IN FIRST QUARTER NET INCOME
GLADSTONE, N.J.--(BUSINESS WIRE)--April 21, 2003 - Peapack-Gladstone Financial
Corporation (AMEX:PGC) today reported net income of $3.3 million for the quarter
ended March 31, 2003, an increase of $299 thousand or 10.1 percent over the $3.0
million reported for the same quarter of 2002. Net income per diluted share was
$0.47 for the first quarter of 2003 compared to $0.44 for the first quarter of
2002, an increase of 6.8 percent. Return on average assets ("ROA") was 1.51
percent and annualized return on average equity ("ROE") was 16.64 percent for
the year to date 2003.
Frank A. Kissel, Chairman and CEO, stated, "Despite the historically low
interest rates and continued margin compression, we posted strong earnings in
the first quarter of 2003. Deposits continued to grow this quarter, rising 17.9
percent over last year and the book value of trust assets under management by
PGB Trust and Investments reached $1.0 billion, an increase of 11.2 percent over
March 31, 2002 levels. Our staff remains committed to customer service and we
see the benefits of that commitment in strong growth in both the bank and PGB
Trust and Investments."
EARNINGS
Net Interest Income
Net interest income rose 2.7 percent to $7.9 million in the first quarter
of 2003 as compared to $7.7 million in the first quarter of 2002. Net interest
income also rose 1.1 percent from $7.8 million in the fourth quarter of 2002.
Net interest margin, on a fully tax equivalent basis, decreased to 3.95 percent
from 4.57 percent in the first quarter of 2002 and 3.97 percent in the fourth
quarter of 2002. The yield on interest earning assets declined 116 basis points
from 6.43 percent in the first quarter of 2002 to 5.27 percent in the first
quarter of 2003. This decline is a result of the continuing lower interest rate
environment as the Federal Reserve lowered interest rates several times.
Investment securities increased to $403.1 million on average, or 69.0
percent, as compared to March 31, 2002. The liquidity from strong deposit growth
continues to be deployed into short and intermediate term securities. Total
loans declined $17.7 million or 4.2 percent to $403.1 million on average for the
quarter ended March 31, 2003 from $419.2 million on average for the quarter
ended March 31, 2002. This decline was due to higher levels of residential
mortgage pay-offs resulting from falling interest rates.
At March 31, 2003, total deposits grew to an average of $769.6 million from
an average of $642.1 million at March 31, 2002, an increase of $127.5 million or
19.9 percent. The cost of funds fell to 1.38 percent in the first quarter of
2003 as compared to 1.83 percent in the first quarter of 2002 and 1.58 percent
in the fourth quarter of 2002.
Other Income
Other income before gains on securities sales and trust fee income rose 4.6
percent to $841 thousand for the first quarter of 2003 from $804 thousand for
the first quarter of 2002. This increase was primarily due to additions to cash
surrender value of Bank Owned Life Insurance and higher other non-interest
income. Net securities gains for the first quarter 2003 were $273 thousand as
compared to $17 thousand for the first quarter of 2002.
Trust fee income generated by PGB Trust and Investments rose $297 thousand
or 25.9 percent to $1.4 million for the quarter ended March 31, 2003 as compared
to $1.1 million for the same period in 2002.
Other Expense
For the first quarter of 2003, other expenses totaled $5.5 million, an
increase of $351 thousand or 6.8 percent over the $5.1 million reported for the
first quarter of 2002. Higher salary and benefit costs and premises and
equipment expense relating to new branch locations and business expansion are
the primary reason for the increase in other expenses. The efficiency ratio was
53.74 percent for the quarter ended March 31, 2003 as compared to 53.13 percent
for the same period in 2002.
ASSET QUALITY
Non-performing loans totaled $188 thousand or 0.05 percent of total loans
at March 31, 2003 as compared to $433 thousand or 0.10 percent at March 31,
2002. The allowance for loan losses was $5.0 million or 1.25 percent of total
loans at March 31, 2003 as compared to $4.2 million or 0.99 percent of total
loans at March 31, 2002. Net recoveries of $35 thousand were recorded in the
first quarter of 2003 as compared to $22 thousand of charge-offs in the first
quarter of 2002.
CAPITAL
Shareholders' equity totaled $79.4 million at March 31, 2003, an increase
of $15.3 million or 23.8 percent over the $64.1 million reported at March 31,
2002. The Corporation's leverage ratio, tier 1 and total risk based capital
ratios at March 31, 2003 were 8.62 percent, 20.04 percent and 21.38 percent,
respectively.
Peapack-Gladstone Financial Corporation, headquartered in
Peapack-Gladstone, New Jersey, and listed on the American Stock Exchange under
the symbol "PGC", is the holding company for the Peapack-Gladstone Bank.
Peapack-Gladstone Bank, a community bank, was established in 1921, and has 17
branches in Somerset, Hunterdon and Morris Counties. Its Trust Division, PGB
Trust and Investments, with $1.2 billion in assets at market value under
management at March 31, 2003, operates at the Bank's main office located at 190
Main Street in Gladstone, New Jersey. To learn more about Peapack-Gladstone
Financial Corporation and its services please visit our web site at
www.pgbank.com or call 908-234-0700.
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The foregoing contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements are not
historical facts and include expressions about management's confidence and
strategies and management's expectations about new and existing programs and
products, relationships, opportunities, taxation, technology and market
conditions. These statements may be identified by such forward-looking
terminology as "expect", "look", "believe", "anticipate", "may", "will", or
similar statements or variations of such terms. 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, changes in the direction of the economy in New Jersey, the direction
of interest rates, effective income tax rates, loan prepayment assumptions,
continued levels of loan quality and origination volume, continued relationships
with major customers including sources for loans, as well as the effects of
general economic conditions and legal and regulatory barriers and structure.
Peapack-Gladstone assumes no obligation for updating any such forward-looking
statements at any time.
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
UNAUDITED
(Dollars in Thousands, Except Per Share Amounts)
At or For The Three Months Ended
March 31,
2003 2002
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Income Statement Data:
Interest income $ 10,602 $ 10,690
Interest expense 2,684 2,981
Net interest income 7,918 7,709
Provision for loan losses 150 199
Net interest income after
provision for loan losses 7,768 7,510
Other income 841 804
Securities Gains 273 17
Trust Fees 1,443 1,146
Other expense 5,483 5,132
Income before income taxes 4,842 4,345
Income tax expense 1,582 1,384
Net income $ 3,260 $ 2,961
Balance Sheet Data:
Total assets $ 897,280 $ 754,879
Federal funds sold 13,928 7,841
Short-term investments 698 472
Securities held to maturity 162,912 60,030
Securities available for sale 263,172 214,572
Loans 400,063 426,029
Allowance for Loan Losses 4,983 4,200
Deposits 797,495 676,556
Borrowings 11,000 5,000
Shareholders' equity 79,395 64,142
Trust Department Assets (book value, not included above) 1,018,924 $ 915,995
Average Balance Sheet Data:
Total Assets $ 864,843 $ 721,284
Earning Assets 814,344 676,275
Loans, net 396,591 415,069
Interest-Bearing Deposits 645,677 530,384
Demand Deposits 123,946 111,718
Borrowings 8,368 8,033
Shareholders' equity 78,351 64,637
Performance Ratios:
Return on average assets 1.51% 1.64%
Return on average equity 16.64 18.32
Efficiency Ratio 53.74% 53.13%
Net Interest Margin
(Taxable Equivalent Basis) 3.95% 4.57%
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
UNAUDITED
(Dollars in Thousands, Except Per Share Amounts)
Asset Quality:
Loans past due over 90 days and still accruing $ 15 $ 216
Non-accrual loans 173 217
Net recoveries/(charge-offs) 35 (22)
Allowance for loan losses
to total loans 1.25% 0.99%
Per Share Data: (1)
Earnings per share (Basic) $ 0.49 $ 0.44
Earnings per share (Diluted) 0.47 0.44
Book Value per share 11.84 9.62
Capital Adequacy:
Tier I Leverage 8.62% 8.92%
Tier I Capital to Risk-Weighted Assets 20.04 18.98
Tier I & Tier II Capital to Risk-Weighted Assets 21.38 20.21
(1) Restated for the 2 for 1 stock split declared September 12, 2002.