EX-99.1 2 pgc-ex991_6.htm EX-99.1 pgc-ex991_6.htm

Exhibit 99.1

Contact:

Jeffrey J. Carfora, SEVP and CFO

Peapack-Gladstone Financial Corporation

T: 908-719-4308

PEAPACK-GLADSTONE FINANCIAL CORPORATION

REPORTS FIRST QUARTER RESULTS

Bedminster, N.J. – May 5, 2020 – Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the “Company”) announces its first quarter 2020 results.

This earnings release should be read in conjunction with the Company’s Q1 2020 Investor Update (and Supplemental Financial Information), a copy of which is available on our website at www.pgbank.com and as 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 March 31, 2020, the Company recorded revenue of $46.26 million, net income of $1.37 million and diluted earnings per share (“EPS”) of $0.07, compared to $41.74 million, $11.43 million and $0.58, respectively, for the same three-month period last year. The decrease in net income and EPS for the 2020 quarter reflected a $20.0 million  provision for loan losses, which was due to the current environment created by the COVID-19 pandemic, which led to increased qualitative loss factors when calculating the allowance for loan losses as described in the Q1 2020 Investor Update (and Supplemental Financial Information).  The 2020 quarter included increased net interest income and non-interest income offset by increased operating expenses (due in part to the wealth management firm acquired in September 2019) and an increased provision for loan and lease losses. The 2020 quarter also included a tax benefit of $3.2 million caused by the changes in the treatment of tax net operating losses (“NOL”) under the provisions of The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.       

As previously announced, on July 25, 2019, the Company authorized the repurchase of up to 960,000 shares, or approximately 5% of its outstanding shares, through June 30, 2020.  Early in the first quarter of 2020, under this program, the Company purchased 220,222 shares, at an average price of $29.45, for a total cost of $6.5 million. With these purchases, the Company completed its 960,000 share repurchase program, at an average price of $28.63, for a total cost of $27.5 million.

Douglas L. Kennedy, President and CEO, said, “The COVID-19 pandemic has had a devastating effect on businesses both locally and nationally. As a result, Congress passed the CARES Act to provide fast and direct economic assistance to American workers, families and businesses.  One of the key programs created was the Paycheck Protection Program (“PPP”) which provides much needed funding to qualifying businesses and organizations.  We are proud to say that during April under “phase one and phase two” of this program we assisted over 2,000 businesses with almost $600 million in loan approvals saving nearly 50,000 jobs. We will continue to support our clients, local businesses and community service organizations in these difficult times.”

 


1

EXECUTIVE SUMMARY:

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

March 2020 Quarter Compared to Prior Year Quarter

 

 

Three Months Ended

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

 

March 31,

 

 

Increase/

 

(Dollars in millions, except per share data)

 

2020

 

 

 

2019

 

 

(Decrease)

 

Net interest income

 

$

31.75

 

 

 

$

30.01

 

 

$

1.74

 

 

 

6

%

Wealth management fee income (A)

 

 

9.96

 

 

 

 

9.17

 

 

 

0.79

 

 

 

9

 

Capital markets activity (B)

 

 

2.76

 

 

 

 

0.74

 

 

 

2.02

 

 

 

273

 

Other income

 

 

1.80

 

 

 

 

1.82

 

 

 

(0.02

)

 

 

(1

)

Total other income

 

 

14.52

 

 

 

 

11.73

 

 

 

2.79

 

 

 

24

 

Operating expenses

 

 

28.24

 

 

 

 

25.72

 

 

 

2.52

 

 

 

10

 

Pretax income before provision for loan losses

 

 

18.03

 

 

 

 

16.02

 

 

 

2.01

 

 

 

13

 

Provision for loan and lease losses (C)

 

 

20.00

 

 

 

 

0.10

 

 

 

19.90

 

 

 

19,900

 

Pretax (loss)/income

 

 

(1.97

)

 

 

 

15.92

 

 

 

(17.89

)

 

 

(112

)

Income tax (benefit)/expense (D)

 

 

(3.34

)

 

 

 

4.49

 

 

 

(7.83

)

 

 

(174

)

Net income

 

$

1.37

 

 

 

$

11.43

 

 

$

(10.06

)

 

 

(88

)%

Diluted EPS

 

$

0.07

 

 

 

$

0.58

 

 

$

(0.51

)

 

 

(88

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue

 

$

46.27

 

 

 

$

41.74

 

 

$

4.53

 

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets annualized

 

 

0.11

%

 

 

 

0.98

%

 

 

(0.87

)

 

 

 

 

Return on average equity annualized

 

 

1.08

%

 

 

 

9.65

%

 

 

(8.57

)

 

 

 

 

 

 

(A)

The March 2020 quarter included a full quarter of wealth management fee income and expense related to Point View Wealth Management, (“Point View”), which was acquired effective September 1, 2019.  

 

(B)

Capital markets activity includes loan level back-to-back swap activities, the SBA lending and sale program, and mortgage banking activities.

 

(C)

The March 2020 quarter included a provision for loan and lease losses of $20.0 million.  The increase in the provision for loan and lease losses was primarily due to the current environment created by the COVID-19 pandemic.

 

(D)

The March 2020 quarter 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.

2

March 2020 Quarter Compared to Linked Quarter

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

Increase/

 

(Dollars in millions, except per share data)

 

2020

 

 

2019

 

 

 

(Decrease)

 

Net interest income

 

$

31.75

 

 

$

30.91

 

 

 

$

0.84

 

 

 

3

%

Wealth management fee income

 

 

9.96

 

 

 

10.12

 

 

 

 

(0.16

)

 

 

(2

)

Capital markets activity (A)

 

 

2.76

 

 

 

3.73

 

 

 

 

(0.97

)

 

 

(26

)

Other income

 

 

1.80

 

 

 

1.68

 

 

 

 

0.12

 

 

 

7

 

Total other income

 

 

14.52

 

 

 

15.53

 

 

 

 

(1.01

)

 

 

(7

)

Operating expenses

 

 

28.24

 

 

 

26.70

 

 

 

 

1.54

 

 

 

6

 

Pretax income before provision for loan losses

 

 

18.03

 

 

 

19.74

 

 

 

 

(1.71

)

 

 

(9

)

Provision for loan and lease losses (B)

 

 

20.00

 

 

 

1.95

 

 

 

 

18.05

 

 

 

926

 

Pretax (loss)/income

 

 

(1.97

)

 

 

17.79

 

 

 

 

(19.76

)

 

 

(111

)

Income tax (benefit)/expense (C)

 

 

(3.34

)

 

 

5.56

 

 

 

 

(8.90

)

 

 

(160

)

Net income

 

$

1.37

 

 

$

12.23

 

 

 

$

(10.86

)

 

 

(89

)%

Diluted EPS

 

$

0.07

 

 

$

0.64

 

 

 

$

(0.57

)

 

 

(89

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue

 

$

46.27

 

 

$

46.44

 

 

 

$

(0.17

)

 

 

(0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets annualized

 

 

0.11

%

 

 

0.98

%

 

 

 

(0.87

)

 

 

 

 

Return on average equity annualized

 

 

1.08

%

 

 

9.81

%

 

 

 

(8.73

)

 

 

 

 

 

 

(A)

Capital markets activity includes loan level back-to-back swap activities, the SBA lending and sale program, and mortgage banking activities.  

 

(B)

The March 2020 quarter included a provision for loan and lease losses of $20.0 million.  The increase in the provision for loan and lease losses was primarily due to the current environment created by the COVID-19 pandemic.

 

(C)

The March 2020 quarter 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.

Mr. Kennedy noted, “I was pleased that our Q1 2020 total revenue and pretax income before provision for loan losses reflected increases of 11% and 13%, respectively when compared to the same quarter last year, driven principally by wealth management, commercial banking and capital markets activities, all of which remain integral to our strategy.”  Mr. Kennedy went on to note that given the environment created by the COVID-19 pandemic, our near-term priorities include:

 

 

•

Emphasis on the health and safety of our employees and clients.

 

•

Adapt the way in which we interact with clients and prospects to reflect the current environment.

 

•

Actively manage emerging credit risk associated with the environment caused by the COVID-19 pandemic.

 

•

Conservatively manage capital and liquidity in response to current market conditions.

 

•

Pursue new client opportunities presented by the PPP.

 

•

Continue to grow and expand our wealth management and commercial banking businesses.

Select highlights for the quarter included:

 

•

Wealth management fee income, which comprised approximately 22% of the Company’s total revenue for the quarter ended March 31, 2020, continues to contribute significantly to the Company’s diversified revenue sources.

 

•

Total commercial and industrial (“C&I”) loans (including equipment finance leases and loans of $671 million) at March 31, 2020 were $1.81 billion.  This reflected net growth of $400 million (28%) when compared to $1.41 billion at March 31, 2019 and reflected net growth of $34 million when compared to the December 31, 2019 balance (2% growth linked quarter; 8% annualized).  

 

•

As of March 31, 2020, total C&I loans comprised 41% of the total loan portfolio, as compared to 36% at March 31, 2019.  As of March 31, 2020, total multifamily loans comprised 27% of the total loan portfolio compared to 28% at March 31, 2019.

3

 

•

Deposits totaled $4.44 billion at March 31, 2020.  This reflected net growth of $522 million (13%) when compared to $3.92 billion at March 31, 2019 and increased $198 million (5% growth linked quarter; 19% annualized) when compared to the December 31, 2019 balance.    

 

•

The Company’s loan-to-deposit ratio was 99% at March 31, 2020, down from both December 31, 2019 and March 31, 2019 levels.

 

•

In addition to $1.2 billion (21% of total assets) of balance sheet liquidity (investments, interest-earning deposits and cash), the Company also has access to approximately $2.2 billion of available secured funding at the Federal Home Loan Bank and the Federal Reserve.

 

•

The Company authorized a 5% (960,000 shares) stock repurchase program on July 25, 2019 The Company completed the final purchases under the program in the first quarter of 2020.

 

•

The Company’s and Bank’s capital ratios at March 31, 2020 remain strong and the Company’s tangible book value per share at March 31, 2020 was $24.20 reflecting an increase of 5% from $23.11 at March 31, 2019, despite $6.5 million of share repurchases made in the quarter and the higher Q1 2020 provision for loan losses.

 

•

Asset quality metrics continued to be strong as of March 31, 2020. Nonperforming assets at March 31, 2020 were $29.4 million, or 0.50% of total assets.  

SUPPLEMENTAL QUARTERLY DETAILS:

 

Wealth Management Business

In the March 2020 quarter, the Bank’s wealth management business generated $9.96 million in fee income, compared to $9.17 million for the March 2019 quarter, and $10.12 million for the December 2019 quarter. The March 2020 and December 2019 quarters included three months of fee income related to Point View, which was acquired effective September 1, 2019. The first quarter of 2020 has been negatively impacted by declines in the market value of the Company’s Assets Under Management (AUM) / Assets Under Administration (AUA) as a result of declines in the equity markets driven by the COVID-19 pandemic.

The market value of the Company’s AUM/AUA declined from $7.5 billion at December 31, 2019 to $6.4 billion at March 31, 2020, reflecting a 14% decline. Changes in the market value of the Company’s AUM/AUA are approximately 75% correlated to the changes in value of the S&P index, which declined approximately 20% from December 31, 2019 to March 31, 2020.  

John P. Babcock, President of the “Peapack Private Wealth Management” division, said, “Client retention during the Covid-19 crisis has been excellent with negligible account closings and no atypical withdrawal activity. Proactive client outreach continues at full strength.” Babcock went on to note, “Q1 2020 AUM/AUA client inflows of approximately $178 million included AUM (managed accounts) inflows of $120 million compared to $83 million for Q4 2019.”

Loans / Commercial Banking

Total loans of $4.42 billion at March 31, 2020 increased from $3.90 billion at March 31, 2019 (13% annual growth), but only increased slightly when compared to the December 31, 2019 level.  Loan/line origination levels for the March quarter were robust, but so was paydown activity. In light of the current environment the Company believes origination levels, excluding PPP loan originations, will decline from recent levels, but so will amortization and paydown levels.

Total C&I loans (including equipment finance leases and loans of $671 million) at March 31, 2020 were $1.81 billion.  This reflected net growth of $400 million (28%) when compared to $1.41 billion at March 31, 2019 and reflected net growth of $34 million when compared to the December 31, 2019 balance (2% growth linked quarter; 8% annualized).

The Company maintains a well-diversified loan portfolio, by loan type and by industry concentration, as detailed in the Q1 2020 Investor Update (and Supplemental Financial Information).

Mr. Kennedy noted, “Our newly expanded Corporate Advisory business compliments our commercial banking and wealth management businesses by giving us capability to engage in high level strategic debt, capital and

4

valuation analysis coupled with succession, estate and wealth planning strategies, enabling us to provide a unique boutique level of service, giving us a competitive advantage over much of our peers.”

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 for the March 2020 quarter increased $198 million from the $4.24 billion at December 31, 2019 to $4.44 billion at March 31, 2020.  Mr. Kennedy noted, “Of our total deposits only 17 percent are above the FDIC insurance limit, reinforcing the “core” nature of our deposit base.”

For the quarter ended March 31, 2020, the Company’s balance sheet liquidity (investments, interest-earning deposits and cash) increased to $1.2 billion (or 21% of assets), funded by increased client deposits of $198 million and a $500 million one-month borrowing from the Federal Home Loan Bank. The borrowing was transacted in mid-March specifically to increase the Company’s balance sheet liquidity in the event of significant depositor withdrawals and/or significant borrower draws on existing unused credit lines in the current environment. As of late April, client deposits continued to increase, and borrower draws on unused lines were minimal, and, on April 24, 2020, the Company repaid the borrowing.  

As of March 31, 2020, in addition to the $1.2 billion of balance sheet liquidity, the Company also had approximately $1.75 billion of secured funding available from the Federal Home Loan Bank, of which $620 million was drawn as of March 31, 2020. Additionally, the Company also had $1.4 billion of secured funding available from the Federal Reserve Discount Window, none of which was drawn.

Mr. Kennedy noted, “As a commercial bank, a large portion of our loans reprice when the Fed changes rates. The 150 basis point reduction in target Fed Funds near the end of Q1 2020 had the effect of reducing the Company’s interest income earned on assets by approximately $24 million on an annualized basis. However, at the same time, we were able to strategically reprice our deposits to offset nearly all of that decline.”  

 

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

 

Three Months Ended

 

 

Three Months Ended

 

 

Three Months Ended

 

 

March 31, 2020

 

 

December 31, 2019

 

 

March 31, 2019

 

 

NII

 

 

NIM

 

 

NII

 

 

NIM

 

 

NII

 

 

NIM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NII/NIM excluding the below

$

31,279

 

 

2.60%

 

 

$

30,385

 

 

2.61%

 

 

$

29,432

 

 

2.72%

 

Prepayment premiums received on multifamily loan paydowns

 

525

 

 

0.05%

 

 

 

414

 

 

0.03%

 

 

 

432

 

 

0.04%

 

Effect of maintaining excess interest earning cash

 

(57

)

 

-0.08%

 

 

 

115

 

 

-0.04%

 

 

 

143

 

 

-0.06%

 

NII/NIM as reported

$

31,747

 

 

2.57%

 

 

$

30,914

 

 

2.60%

 

 

$

30,007

 

 

2.70%

 

Net interest income and net interest margin comparisons are shown above.

The Company’s reported NIM declined three basis points compared to the linked quarter while core NIM declined only one basis point compared to the linked quarter.

Interest and fees from PPP loans will benefit future net interest income.  For further details, see the Q1 2020 Investor Update (and Supplemental Financial Information).

Other Noninterest Income (other than Wealth Management fee income)

Noninterest income from Capital Markets activities (loan level back-to-back swap activities, the SBA lending and sale program, and mortgage banking income) totaled $2.76 million for the March 2020 quarter compared to $3.73 million for the December 2019 quarter and $736,000 for the March 2019 quarter.  Income from these programs are not linear each quarter, as some quarters will be higher than others.

 

5

Operating Expenses

The Company’s total operating expenses were $28.24 million for the quarter ended March 31, 2020, compared to $26.70 million for the December 2019 quarter and $25.72 million for the March 2019 quarter.  The March 2020 and December 2019 quarters included three months of expenses related to Point View’s operations.  Strategic hiring and normal salary increases also contributed to the increase for the March 2020 quarter. There was no FDIC insurance expense for the December 2019 quarter as the Bank utilized its small bank assessment credit from the FDIC; $250,000 was recorded in the March 2020 quarter. Further, the March 2020 quarter included seasonal payroll tax expense increases, as well as increased medical insurance costs when compared to the December 2019 quarter.  

Income Taxes

 

The Company recorded a $3.34 million tax benefit for the March 2020 quarter, principally as a result of 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

For further details, see the Q1 2020 Investor Update (and Supplemental Financial Information).

Nonperforming assets at March 31, 2020 (which does not include troubled debt restructured loans that are performing in accordance with their terms) were $29.4 million, or 0.50% of total assets, compared to $28.9 million, or 0.56% of total assets, at December 31, 2019 and $24.9 million, or 0.53% of total assets, at March 31, 2019.  Total loans past due 30 through 89 days and still accruing were $8.3 million at March 31, 2020, compared to $1.9 million at December 31, 2019 and $2.5 million at March 31, 2019. The March 31, 2020 balance included one commercial real estate loan with a balance of $3.5 million that was brought fully current in early April.    

For the quarter ended March 31, 2020, the Company’s provision for loan and lease losses was $20.0 million compared to $2.0 million for the December 2019 quarter and $100,000 for the March 2019 quarter. The increased provision for loan losses in the March 2020 quarter was due to the current environment created by the COVID-19 pandemic, which led to increased qualitative loss factors when calculating the allowance for loan losses as described in the Q1 2020 Investor Update (and Supplemental Financial Information). The Company’s provision for loan and lease losses (and its allowance for loan and lease losses) also reflect, among other things, the Company’s asset quality metrics, net loan growth, net charge-offs/recoveries, and the composition of the loan portfolio.

At March 31, 2020, the allowance for loan and lease losses was $63.78 million (1.44% of total loans), compared to $43.68 million at December 31, 2019 (0.99% of total loans), and $38.65 million (0.99% of total loans) at March 31, 2019.  

Capital / Dividend / Stock Repurchase Program

The Company’s capital position during the March 2020 quarter was benefitted by net income of $1.4 million, which was offset by the purchase of shares through the Company’s stock repurchase program. Early in the quarter, the Company purchased 220,222 shares, at an average price of $29.45, for a total cost of $6.5 million.

The Company’s and Bank’s capital ratios at March 31, 2020 all remain strong.  Such ratios remain well above regulatory well capitalized standards.

The Company employs quarterly capital stress testing – adverse case and severely adverse case. In the December 31, 2019 severely, adverse case, no growth scenario, 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. For further details, see the Q1 2020 Investor Update (and Supplemental Financial Information).

As previously announced, on April 28, 2020, the Company declared a cash dividend of $0.05 per share payable on May 27, 2020 to shareholders of record on May 12, 2020.

6

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $5.8 billion and AUM/AUA administration of $6.4 billion as of March 31, 2020.  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 inability to successfully grow our business and implement our strategic plan, including an inability to generate revenues to offset the increased personnel and other costs related to the strategic plan;

 

•

the impact of anticipated higher operating expenses in 2020 and beyond;

 

•

our inability to successfully integrate wealth management firm acquisitions;

 

•

our inability to manage our growth;

 

•

our inability 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 value in our investment portfolio;

 

•

impact on our business 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 nonperforming 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;

 

•

our inability to execute upon new business initiatives;

 

•

our lack of liquidity to fund our various cash obligations;

 

•

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 outbreak 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 and when and how the economy may be reopened. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be

7

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 is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, 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 have to be increased 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;

 

•

as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income;

 

•

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

 

•

our wealth management revenues may decline with continuing market turmoil;

 

•

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, 2019.  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.

(Tables to follow)


8

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in Thousands, except share data)

(Unaudited)

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

45,395

 

 

$

45,556

 

 

$

45,948

 

 

$

44,603

 

 

$

44,563

 

Interest expense

 

 

13,648

 

 

 

14,642

 

 

 

15,863

 

 

 

15,335

 

 

 

14,556

 

Net interest income

 

 

31,747

 

 

 

30,914

 

 

 

30,085

 

 

 

29,268

 

 

 

30,007

 

Wealth management fee income

 

 

9,955

 

 

 

10,120

 

 

 

9,501

 

 

 

9,568

 

 

 

9,174

 

Service charges and fees

 

 

816

 

 

 

893

 

 

 

882

 

 

 

897

 

 

 

816

 

Bank owned life insurance

 

 

328

 

 

 

325

 

 

 

332

 

 

 

326

 

 

 

338

 

Gain on loans held for sale at fair value (B)

   (Mortgage banking)

 

 

292

 

 

 

344

 

 

 

198

 

 

 

132

 

 

 

47

 

Loss on loans held for sale at lower of cost or

   fair value

 

 

(3

)

 

 

(4

)

 

 

(6

)

 

 

—

 

 

 

—

 

Fee income related to loan level, back-to-back (B)

   swaps

 

 

1,418

 

 

 

2,459

 

 

 

2,349

 

 

 

721

 

 

 

270

 

Gain on sale of SBA loans (B)

 

 

1,054

 

 

 

929

 

 

 

224

 

 

 

573

 

 

 

419

 

Other income

 

 

459

 

 

 

504

 

 

 

902

 

 

 

740

 

 

 

606

 

Securities gains/(losses), net

 

 

198

 

 

 

(45

)

 

 

34

 

 

 

69

 

 

 

59

 

Total other income

 

 

14,517

 

 

 

15,525

 

 

 

14,416

 

 

 

13,026

 

 

 

11,729

 

Salaries and employee benefits

 

 

19,226

 

 

 

17,954

 

 

 

17,476

 

 

 

17,543

 

 

 

17,156

 

Premises and equipment

 

 

4,043

 

 

 

3,898

 

 

 

3,849

 

 

 

3,600

 

 

 

3,388

 

FDIC insurance expense

 

 

250

 

 

 

—

 

 

 

(277

)

 

 

277

 

 

 

277

 

Other expenses

 

 

4,716

 

 

 

4,849

 

 

 

5,211

 

 

 

4,753

 

 

 

4,894

 

Total operating expenses

 

 

28,235

 

 

 

26,701

 

 

 

26,259

 

 

 

26,173

 

 

 

25,715

 

Pretax income before provision for loan losses

 

 

18,029

 

 

 

19,738

 

 

 

18,242

 

 

 

16,121

 

 

 

16,021

 

Provision for loan and lease losses (A)

 

 

20,000

 

 

 

1,950

 

 

 

800

 

 

 

1,150

 

 

 

100

 

(Loss)/income before income taxes

 

 

(1,971

)

 

 

17,788

 

 

 

17,442

 

 

 

14,971

 

 

 

15,921

 

Income tax (benefit)/expense (C)

 

 

(3,344

)

 

 

5,555

 

 

 

5,216

 

 

 

3,421

 

 

 

4,496

 

Net income

 

$

1,373

 

 

$

12,233

 

 

$

12,226

 

 

$

11,550

 

 

$

11,425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue (D)

 

$

46,264

 

 

$

46,439

 

 

$

44,501

 

 

$

42,294

 

 

$

41,736

 

Per Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (basic)

 

$

0.07

 

 

$

0.64

 

 

$

0.63

 

 

$

0.59

 

 

$

0.59

 

Earnings per share (diluted)

 

 

0.07

 

 

 

0.64

 

 

 

0.63

 

 

 

0.59

 

 

 

0.58

 

Weighted average number of common

   shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

18,858,343

 

 

 

18,966,917

 

 

 

19,314,666

 

 

 

19,447,155

 

 

 

19,350,452

 

Diluted

 

 

19,079,575

 

 

 

19,207,738

 

 

 

19,484,905

 

 

 

19,568,371

 

 

 

19,658,006

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets annualized (ROAA)

 

 

0.11

%

 

 

0.98

%

 

 

1.00

%

 

 

0.99

%

 

 

0.98

%

Return on average equity annualized (ROAE)

 

 

1.08

%

 

 

9.81

%

 

 

9.87

%

 

 

9.49

%

 

 

9.65

%

Net interest margin (tax- equivalent basis)

 

 

2.57

%

 

 

2.60

%

 

 

2.60

%

 

 

2.64

%

 

 

2.70

%

GAAP efficiency ratio (E)

 

 

61.03

%

 

 

57.50

%

 

 

59.01

%

 

 

61.88

%

 

 

61.61

%

Operating expenses / average assets annualized

 

 

2.18

%

 

 

2.13

%

 

 

2.16

%

 

 

2.25

%

 

 

2.21

%

9

 

(A) The March 2020 quarter included a provision for loan and lease losses of $20.0 million.  The increase in the provision for loan and lease losses was primarily due to the current environment created by the COVID-19 pandemic.

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

(C)

The March 2020 quarter 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.

(D)

Total revenue includes net interest income plus total other income.

(E)

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

 

10

PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in Thousands)

(Unaudited)

 

 

As of

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

6,171

 

 

$

6,591

 

 

$

5,770

 

 

$

5,351

 

 

$

4,726

 

Federal funds sold

 

 

102

 

 

 

102

 

 

 

101

 

 

 

101

 

 

 

101

 

Interest-earning deposits (A)

 

 

767,730

 

 

 

201,492

 

 

 

221,242

 

 

 

298,575

 

 

 

235,487

 

Total cash and cash equivalents

 

 

774,003

 

 

 

208,185

 

 

 

227,113

 

 

 

304,027

 

 

 

240,314

 

Securities available for sale

 

 

400,558

 

 

 

390,755

 

 

 

349,989

 

 

 

378,839

 

 

 

384,400

 

Equity security

 

 

14,034

 

 

 

10,836

 

 

 

7,881

 

 

 

4,847

 

 

 

4,778

 

FHLB and FRB stock, at cost

 

 

40,871

 

 

 

24,068

 

 

 

21,403

 

 

 

18,338

 

 

 

18,460

 

Residential mortgage

 

 

532,063

 

 

 

552,019

 

 

 

561,543

 

 

 

572,926

 

 

 

569,304

 

Multifamily mortgage

 

 

1,203,487

 

 

 

1,210,003

 

 

 

1,197,093

 

 

 

1,129,476

 

 

 

1,104,406

 

Commercial mortgage

 

 

760,648

 

 

 

761,244

 

 

 

721,261

 

 

 

694,674

 

 

 

705,221

 

Commercial loans

 

 

1,810,214

 

 

 

1,776,450

 

 

 

1,575,076

 

 

 

1,518,591

 

 

 

1,410,146

 

Consumer loans

 

 

53,365

 

 

 

54,372

 

 

 

53,829

 

 

 

53,995

 

 

 

54,276

 

Home equity lines of credit

 

 

55,856

 

 

 

57,248

 

 

 

58,423

 

 

 

62,522

 

 

 

57,639

 

Other loans

 

 

347

 

 

 

349

 

 

 

380

 

 

 

424

 

 

 

355

 

Total loans

 

 

4,415,980

 

 

 

4,411,685

 

 

 

4,167,605

 

 

 

4,032,608

 

 

 

3,901,347

 

Less: Allowances for loan and lease losses

 

 

63,783

 

 

 

43,676

 

 

 

41,580

 

 

 

39,791

 

 

 

38,653

 

Net loans

 

 

4,352,197

 

 

 

4,368,009

 

 

 

4,126,025

 

 

 

3,992,817

 

 

 

3,862,694

 

Premises and equipment

 

 

21,243

 

 

 

20,913

 

 

 

20,898

 

 

 

20,987

 

 

 

21,201

 

Other real estate owned

 

 

50

 

 

 

50

 

 

 

336

 

 

 

—

 

 

 

—

 

Accrued interest receivable

 

 

11,816

 

 

 

10,494

 

 

 

11,759

 

 

 

11,594

 

 

 

11,688

 

Bank owned life insurance

 

 

46,309

 

 

 

46,128

 

 

 

45,940

 

 

 

45,744

 

 

 

45,554

 

Goodwill and other intangible assets

 

 

40,265

 

 

 

40,588

 

 

 

41,111

 

 

 

31,941

 

 

 

32,170

 

Finance lease right-of-use assets

 

 

4,891

 

 

 

5,078

 

 

 

5,265

 

 

 

5,452

 

 

 

5,639

 

Operating lease right-of-use assets

 

 

11,553

 

 

 

12,132

 

 

 

10,328

 

 

 

11,017

 

 

 

7,541

 

Other assets (B)

 

 

113,668

 

 

 

45,643

 

 

 

57,361

 

 

 

45,631

 

 

 

27,867

 

TOTAL ASSETS

 

$

5,831,458

 

 

$

5,182,879

 

 

$

4,925,409

 

 

$

4,871,234

 

 

$

4,662,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

581,085

 

 

$

529,281

 

 

$

544,464

 

 

$

544,431

 

 

$

476,013

 

Interest-bearing demand deposits

 

 

1,680,452

 

 

 

1,510,363

 

 

 

1,352,471

 

 

 

1,388,821

 

 

 

1,268,823

 

Savings

 

 

112,668

 

 

 

112,652

 

 

 

115,448

 

 

 

112,438

 

 

 

114,865

 

Money market accounts

 

 

1,163,410

 

 

 

1,196,313

 

 

 

1,196,188

 

 

 

1,207,358

 

 

 

1,209,835

 

Certificates of deposit – Retail

 

 

651,000

 

 

 

633,763

 

 

 

583,425

 

 

 

570,384

 

 

 

545,450

 

Certificates of deposit – Listing Service

 

 

38,895

 

 

 

47,430

 

 

 

55,664

 

 

 

58,541

 

 

 

68,055

 

Subtotal “customer” deposits

 

 

4,227,510

 

 

 

4,029,802

 

 

 

3,847,660

 

 

 

3,881,973

 

 

 

3,683,041

 

IB Demand – Brokered

 

 

180,000

 

 

 

180,000

 

 

 

180,000

 

 

 

180,000

 

 

 

180,000

 

Certificates of deposit – Brokered

 

 

33,723

 

 

 

33,709

 

 

 

33,696

 

 

 

33,682

 

 

 

56,165

 

Total deposits

 

 

4,441,233

 

 

 

4,243,511

 

 

 

4,061,356

 

 

 

4,095,655

 

 

 

3,919,206

 

Short-term borrowings (A)

 

 

515,000

 

 

 

128,100

 

 

 

67,000

 

 

 

—

 

 

 

—

 

FHLB advances

 

 

105,000

 

 

 

105,000

 

 

 

105,000

 

 

 

105,000

 

 

 

105,000

 

Finance lease liability

 

 

7,402

 

 

 

7,598

 

 

 

7,793

 

 

 

7,985

 

 

 

8,175

 

Operating lease liability

 

 

11,852

 

 

 

12,423

 

 

 

10,619

 

 

 

11,269

 

 

 

7,683

 

Subordinated debt, net

 

 

83,473

 

 

 

83,417

 

 

 

83,361

 

 

 

83,305

 

 

 

83,249

 

Other liabilities (B)

 

 

160,173

 

 

 

91,227

 

 

 

94,930

 

 

 

74,132

 

 

 

57,521

 

Due to brokers

 

 

10,885

 

 

 

7,951

 

 

 

—

 

 

 

—

 

 

 

—

 

TOTAL LIABILITIES

 

 

5,335,018

 

 

 

4,679,227

 

 

 

4,430,059

 

 

 

4,377,346

 

 

 

4,180,834

 

Shareholders’ equity

 

 

496,440

 

 

 

503,652

 

 

 

495,350

 

 

 

493,888

 

 

 

481,472

 

TOTAL LIABILITIES AND

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

$

5,831,458

 

 

$

5,182,879

 

 

$

4,925,409

 

 

$

4,871,234

 

 

$

4,662,306

 

Assets under management and / or administration at

   Peapack-Gladstone Bank’s Private Wealth Management

   Division (market value, not included above-dollars in billions)

 

$

6.4

 

 

$

7.5

 

 

$

7.0

 

 

$

6.6

 

 

$

6.3

 

(A) The increase in interest-earning deposits and short-term borrowings at March 31, 2020 is primarily due to a one-month FHLB Advance for $500.0 million transacted on March 23, 2020 with proceeds maintained to bolster the Company’s on-balance-sheet liquidity which was repaid on April 24, 2020.

(B)

The increase in other assets and other liabilities at March 31, 2020 is was primarily due to the change in the fair value of our back-to-back swap program.

11

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in Thousands)

(Unaudited)

 

 

As of

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

Asset Quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due over 90 days and still accruing

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Nonaccrual loans (A)

 

 

29,324

 

 

 

28,881

 

 

 

29,383

 

 

 

31,150

 

 

 

24,892

 

Other real estate owned

 

 

50

 

 

 

50

 

 

 

336

 

 

 

—

 

 

 

—

 

Total nonperforming assets

 

$

29,374

 

 

$

28,931

 

 

$

29,719

 

 

$

31,150

 

 

$

24,892

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 

0.66

%

 

 

0.65

%

 

 

0.71

%

 

 

0.77

%

 

 

0.64

%

Nonperforming assets to total assets

 

 

0.50

%

 

 

0.56

%

 

 

0.60

%

 

 

0.64

%

 

 

0.53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing TDRs (B)(C)

 

$

2,389

 

 

$

2,357

 

 

$

2,527

 

 

$

3,772

 

 

$

4,274

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

8,261

 

 

$

1,910

 

 

$

6,333

 

 

$

432

 

 

$

2,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified loans

 

$

58,938

 

 

$

58,908

 

 

$

53,882

 

 

$

56,135

 

 

$

51,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impaired loans

 

$

36,369

 

 

$

35,924

 

 

$

36,627

 

 

$

34,941

 

 

$

29,185

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of period

 

$

43,676

 

 

$

41,580

 

 

$

39,791

 

 

$

38,653

 

 

$

38,504

 

Provision for loan and lease losses

 

 

20,000

 

 

 

1,950

 

 

 

800

 

 

 

1,150

 

 

 

100

 

Recoveries (charge-offs), net

 

 

107

 

 

 

146

 

 

 

989

 

 

 

(12

)

 

 

49

 

End of period

 

$

63,783

 

 

$

43,676

 

 

$

41,580

 

 

$

39,791

 

 

$

38,653

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ALLL to nonperforming loans

 

 

217.51

%

 

 

151.23

%

 

 

141.51

%

 

 

127.74

%

 

 

155.28

%

ALLL to total loans

 

 

1.444

%

 

 

0.990

%

 

 

0.998

%

 

 

0.987

%

 

 

0.991

%

General ALLL to total loans (E)

 

 

1.301

%

 

 

0.927

%

 

 

0.932

%

 

 

0.956

%

 

 

0.984

%

(A)  Includes one casual dining commercial banking relationship, with a balance of $5.9 million at March 31, 2020, that went on nonaccrual at June 30, 2019.

(B)

Amounts reflect TDRs that are paying according to restructured terms.

(C)

Amount does not include $25.9 million at March 31, 2020, $25.8 million at December 31, 2019, $19.7 million at September 30, 2019, $19.8 million at June 30, 2019 and $20.0 million at March 31, 2019, of TDRs included in nonaccrual loans.

(D) Includes a non-owner occupied CRE loan with a balance of $3.5 million at March 31, 2020.  This loan was brought fully current in early April 2020.  The $6.3 million at September 30, 2019 included one $4.3 million commercial real estate loan that was in process of a rate modification (not a TDR modification).  The loan was brought fully current in early October 2019.

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

12

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in Thousands)

(Unaudited)

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2020 (I)

 

 

2019

 

 

2019

 

Capital Adequacy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity to total assets (A)

 

 

 

 

8.51

%

 

 

 

 

9.72

%

 

 

 

 

10.33

%

Tangible Equity to tangible assets (B)

 

 

 

 

7.88

%

 

 

 

 

9.01

%

 

 

 

 

9.70

%

Book value per share (C)

 

 

 

$

26.33

 

 

 

 

$

26.61

 

 

 

 

$

24.76

 

Tangible Book Value per share (D)

 

 

 

$

24.20

 

 

 

 

$

24.47

 

 

 

 

$

23.11

 

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

2019

 

Regulatory Capital – Holding Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage

 

$

458,640

 

 

8.93%

 

 

$

463,521

 

 

9.33%

 

 

$

450,244

 

 

9.76%

 

Tier I capital to risk-weighted assets

 

 

458,640

 

 

10.71

 

 

 

463,521

 

 

11.14

 

 

 

450,244

 

 

12.19

 

Common equity tier I capital ratio

   to risk-weighted assets

 

 

458,639

 

 

10.71

 

 

 

463,520

 

 

11.14

 

 

 

450,242

 

 

12.19

 

Tier I & II capital to risk-weighted assets

 

 

595,770

 

 

13.91

 

 

 

590,614

 

 

14.20

 

 

 

572,146

 

 

15.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory Capital – Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage (E)

 

$

527,433

 

 

10.28%

 

 

$

527,833

 

 

10.63%

 

 

$

518,702

 

 

11.25%

 

Tier I capital to risk-weighted assets (F)

 

 

527,433

 

 

12.33

 

 

 

527,833

 

 

12.70

 

 

 

518,702

 

 

14.06

 

Common equity tier I capital ratio

   to risk-weighted assets (G)

 

 

527,432

 

 

12.33

 

 

 

527,832

 

 

12.70

 

 

 

518,700

 

 

14.06

 

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

 

 

581,025

 

 

13.58

 

 

 

571,509

 

 

13.76

 

 

 

557,355

 

 

15.10

 

 

(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 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% ($257 million)

(F) Regulatory well capitalized standard = 6.50% ($278 million)

(G) Regulatory well capitalized standard = 8.00% ($342 million)

(H) Regulatory well capitalized standard = 10.00% ($428 million)

(I)  The increase in interest-earning deposits funded by the $500.0 million FHLB Advance inflated Total Assets at March 31, 2020 by that amount.  This had the effect of reducing the equity to total assets ratio and tangible equity to tangible assets ratio by 0.80% and 0.74%, respectively.

 

 

 

13

PEAPACK-GLADSTONE FINANCIAL CORPORATION

LOANS CLOSED

(Dollars in Thousands)

(Unaudited)

 

 

 

For the Quarters Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

Residential loans retained

 

$

14,831

 

 

$

17,115

 

 

$

19,073

 

 

$

21,998

 

 

$

10,839

 

Residential loans sold

 

 

19,391

 

 

 

21,255

 

 

 

15,846

 

 

 

9,785

 

 

 

3,090

 

Total residential loans

 

 

34,222

 

 

 

38,370

 

 

 

34,919

 

 

 

31,783

 

 

 

13,929

 

Commercial real estate

 

 

8,858

 

 

 

52,630

 

 

 

43,414

 

 

 

34,204

 

 

 

21,025

 

Multifamily

 

 

61,998

 

 

 

63,627

 

 

 

77,138

 

 

 

58,604

 

 

 

21,122

 

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

 

 

42,908

 

 

 

174,946

 

 

 

228,903

 

 

 

143,944

 

 

 

141,128

 

SBA

 

 

13,830

 

 

 

19,195

 

 

 

3,510

 

 

 

3,740

 

 

 

9,050

 

Wealth lines of credit (A)

 

 

3,250

 

 

 

42,575

 

 

 

6,980

 

 

 

6,725

 

 

 

7,380

 

Total commercial loans

 

 

130,844

 

 

 

352,973

 

 

 

359,945

 

 

 

247,217

 

 

 

199,705

 

Installment loans

 

 

256

 

 

 

984

 

 

 

362

 

 

 

1,497

 

 

 

558

 

Home equity lines of credit (A)

 

 

3,632

 

 

 

2,414

 

 

 

5,631

 

 

 

3,626

 

 

 

1,607

 

Total loans closed

 

$

168,954

 

 

$

394,741

 

 

$

400,857

 

 

$

284,123

 

 

$

215,799

 

 

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

(B)

Includes equipment finance.

14

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 

 

 

March 31, 2020

 

 

March 31, 2019

 

 

 

Average

 

 

Income/

 

 

 

 

 

 

Average

 

 

Income/

 

 

 

 

 

 

 

Balance

 

 

Expense

 

 

Yield

 

 

Balance

 

 

Expense

 

 

Yield

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (A)

 

$

411,806

 

 

$

2,459

 

 

 

2.39

%

 

$

387,566

 

 

$

2,684

 

 

 

2.77

%

Tax-exempt (A) (B)

 

 

10,534

 

 

 

131

 

 

 

4.97

 

 

 

17,345

 

 

 

210

 

 

 

4.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (B) (C):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages

 

 

535,114

 

 

 

4,576

 

 

 

3.42

 

 

 

571,637

 

 

 

4,895

 

 

 

3.43

 

Commercial mortgages

 

 

1,955,808

 

 

 

18,483

 

 

 

3.78

 

 

 

1,824,371

 

 

 

18,021

 

 

 

3.95

 

Commercial

 

 

1,758,137

 

 

 

18,593

 

 

 

4.23

 

 

 

1,379,585

 

 

 

16,750

 

 

 

4.86

 

Commercial construction

 

 

5,629

 

 

 

88

 

 

 

6.25

 

 

 

—

 

 

 

—

 

 

 

—

 

Installment

 

 

53,983

 

 

 

464

 

 

 

3.44

 

 

 

55,215

 

 

 

577

 

 

 

4.18

 

Home equity

 

 

55,654

 

 

 

614

 

 

 

4.41

 

 

 

60,421

 

 

 

766

 

 

 

5.07

 

Other

 

 

364

 

 

 

9

 

 

 

9.89

 

 

 

412

 

 

 

11

 

 

 

10.68

 

Total loans

 

 

4,364,689

 

 

 

42,827

 

 

 

3.92

 

 

 

3,891,641

 

 

 

41,020

 

 

 

4.22

 

Federal funds sold

 

 

102

 

 

 

—

 

 

 

0.25

 

 

 

101

 

 

 

—

 

 

 

0.25

 

Interest-earning deposits

 

 

251,566

 

 

 

552

 

 

 

0.88

 

 

 

237,251

 

 

 

1,270

 

 

 

2.14

 

Total interest-earning assets

 

 

5,038,697

 

 

 

45,969

 

 

 

3.65

%

 

 

4,533,904

 

 

 

45,184

 

 

 

3.99

%

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

5,517

 

 

 

 

 

 

 

 

 

 

 

5,398

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

 

(44,368

)

 

 

 

 

 

 

 

 

 

 

(38,948

)

 

 

 

 

 

 

 

 

Premises and equipment

 

 

21,145

 

 

 

 

 

 

 

 

 

 

 

21,467

 

 

 

 

 

 

 

 

 

Other assets

 

 

161,452

 

 

 

 

 

 

 

 

 

 

 

122,102

 

 

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 

143,746

 

 

 

 

 

 

 

 

 

 

 

110,019

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,182,443

 

 

 

 

 

 

 

 

 

 

$

4,643,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

1,540,798

 

 

$

3,447

 

 

 

0.89

%

 

$

1,284,611

 

 

$

3,710

 

 

 

1.16

%

Money markets

 

 

1,192,049

 

 

 

2,981

 

 

 

1.00

 

 

 

1,208,004

 

 

 

4,335

 

 

 

1.44

 

Savings

 

 

110,905

 

 

 

15

 

 

 

0.05

 

 

 

114,003

 

 

 

16

 

 

 

0.06

 

Certificates of deposit – retail

 

 

698,019

 

 

 

3,694

 

 

 

2.12

 

 

 

607,178

 

 

 

3,234

 

 

 

2.13

 

Subtotal interest-bearing deposits

 

 

3,541,771

 

 

 

10,137

 

 

 

1.14

 

 

 

3,213,796

 

 

 

11,295

 

 

 

1.41

 

Interest-bearing demand – brokered

 

 

180,000

 

 

 

923

 

 

 

2.05

 

 

 

180,000

 

 

 

739

 

 

 

1.64

 

Certificates of deposit – brokered

 

 

33,715

 

 

 

263

 

 

 

3.12

 

 

 

56,154

 

 

 

365

 

 

 

2.60

 

Total interest-bearing deposits

 

 

3,755,486

 

 

 

11,323

 

 

 

1.21

 

 

 

3,449,950

 

 

 

12,399

 

 

 

1.44

 

Borrowings

 

 

183,398

 

 

 

1,012

 

 

 

2.21

 

 

 

105,900

 

 

 

834

 

 

 

3.15

 

Capital lease obligation

 

 

7,475

 

 

 

90

 

 

 

4.82

 

 

 

8,244

 

 

 

99

 

 

 

4.80

 

Subordinated debt

 

 

83,439

 

 

 

1,223

 

 

 

5.86

 

 

 

83,213

 

 

 

1,224

 

 

 

5.88

 

Total interest-bearing liabilities

 

 

4,029,798

 

 

 

13,648

 

 

 

1.35

%

 

 

3,647,307

 

 

 

14,556

 

 

 

1.60

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

542,557

 

 

 

 

 

 

 

 

 

 

 

471,265

 

 

 

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

101,662

 

 

 

 

 

 

 

 

 

 

 

51,791

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

644,219

 

 

 

 

 

 

 

 

 

 

 

523,056

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

508,426

 

 

 

 

 

 

 

 

 

 

 

473,560

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

5,182,443

 

 

 

 

 

 

 

 

 

 

$

4,643,923

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

32,321

 

 

 

 

 

 

 

 

 

 

$

30,628

 

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

2.30

%

 

 

 

 

 

 

 

 

 

 

2.39

%

Net interest margin (D)

 

 

 

 

 

 

 

 

 

 

2.57

%

 

 

 

 

 

 

 

 

 

 

2.70

%

(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.

15

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

 

Average

 

 

Income/

 

 

 

 

 

 

Average

 

 

Income/

 

 

 

 

 

 

 

Balance

 

 

Expense

 

 

Yield

 

 

Balance

 

 

Expense

 

 

Yield

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (A)

 

$

411,806

 

 

$

2,459

 

 

 

2.39

%

 

$

393,549

 

 

$

2,428

 

 

 

2.47

%

Tax-exempt (A) (B)

 

 

10,534

 

 

 

131

 

 

 

4.97

 

 

 

12,037

 

 

 

147

 

 

 

4.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (B) (C):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages

 

 

535,114

 

 

 

4,576

 

 

 

3.42

 

 

 

557,132

 

 

 

4,780

 

 

 

3.43

 

Commercial mortgages

 

 

1,955,808

 

 

 

18,483

 

 

 

3.78

 

 

 

1,959,902

 

 

 

18,588

 

 

 

3.79

 

Commercial

 

 

1,758,137

 

 

 

18,593

 

 

 

4.23

 

 

 

1,662,026

 

 

 

18,413

 

 

 

4.43

 

Commercial construction

 

 

5,629

 

 

 

88

 

 

 

6.25

 

 

 

4,842

 

 

 

81

 

 

 

7

 

Installment

 

 

53,983

 

 

 

464

 

 

 

3.44

 

 

 

54,562

 

 

 

524

 

 

 

3.84

 

Home equity

 

 

55,654

 

 

 

614

 

 

 

4.41

 

 

 

58,082

 

 

 

662

 

 

 

4.56

 

Other

 

 

364

 

 

 

9

 

 

 

9.89

 

 

 

379

 

 

 

10

 

 

 

10.55

 

Total loans

 

 

4,364,689

 

 

 

42,827

 

 

 

3.92

 

 

 

4,296,925

 

 

 

43,058

 

 

 

4.01

 

Federal funds sold

 

 

102

 

 

 

—

 

 

 

0.25

 

 

 

102

 

 

 

—

 

 

 

0.25

 

Interest-earning deposits

 

 

251,566

 

 

 

552

 

 

 

0.88

 

 

 

159,759

 

 

 

560

 

 

 

1.40

 

Total interest-earning assets

 

 

5,038,697

 

 

 

45,969

 

 

 

3.65

%

 

 

4,862,372

 

 

 

46,193

 

 

 

3.80

%

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

5,517

 

 

 

 

 

 

 

 

 

 

 

5,600

 

 

 

 

 

 

 

 

 

Allowance for loan and lease losses

 

 

(44,368

)

 

 

 

 

 

 

 

 

 

 

(42,374

)

 

 

 

 

 

 

 

 

Premises and equipment

 

 

21,145

 

 

 

 

 

 

 

 

 

 

 

20,946

 

 

 

 

 

 

 

 

 

Other assets

 

 

161,452

 

 

 

 

 

 

 

 

 

 

 

166,868

 

 

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 

143,746

 

 

 

 

 

 

 

 

 

 

 

151,040

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,182,443

 

 

 

 

 

 

 

 

 

 

$

5,013,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

1,540,798

 

 

$

3,447

 

 

 

0.89

%

 

$

1,407,151

 

 

$

3,489

 

 

 

0.99

%

Money markets

 

 

1,192,049

 

 

 

2,981

 

 

 

1.00

 

 

 

1,169,413

 

 

 

3,456

 

 

 

1.18

 

Savings

 

 

110,905

 

 

 

15

 

 

 

0.05

 

 

 

112,597

 

 

 

16

 

 

 

0.06

 

Certificates of deposit – retail

 

 

698,019

 

 

 

3,694

 

 

 

2.12

 

 

 

660,159

 

 

 

3,734

 

 

 

2.26

 

Subtotal interest-bearing deposits

 

 

3,541,771

 

 

 

10,137

 

 

 

1.14

 

 

 

3,349,320

 

 

 

10,695

 

 

 

1.28

 

Interest-bearing demand – brokered

 

 

180,000

 

 

 

923

 

 

 

2.05

 

 

 

180,000

 

 

 

981

 

 

 

2.18

 

Certificates of deposit – brokered

 

 

33,715

 

 

 

263

 

 

 

3.12

 

 

 

33,702

 

 

 

267

 

 

 

3.17

 

Total interest-bearing deposits

 

 

3,755,486

 

 

 

11,323

 

 

 

1.21

 

 

 

3,563,022

 

 

 

11,943

 

 

 

1.34

 

Borrowings

 

 

183,398

 

 

 

1,012

 

 

 

2.21

 

 

 

221,462

 

 

 

1,383

 

 

 

2.50

 

Capital lease obligation

 

 

7,475

 

 

 

90

 

 

 

4.82

 

 

 

7,669

 

 

 

92

 

 

 

4.80

 

Subordinated debt

 

 

83,439

 

 

 

1,223

 

 

 

5.86

 

 

 

83,385

 

 

 

1,224

 

 

 

5.87

 

Total interest-bearing liabilities

 

 

4,029,798

 

 

 

13,648

 

 

 

1.35

%

 

 

3,875,538

 

 

 

14,642

 

 

 

1.51

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

542,557

 

 

 

 

 

 

 

 

 

 

 

539,501

 

 

 

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

101,662

 

 

 

 

 

 

 

 

 

 

 

99,702

 

 

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

644,219

 

 

 

 

 

 

 

 

 

 

 

639,203

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

508,426

 

 

 

 

 

 

 

 

 

 

 

498,671

 

 

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

5,182,443

 

 

 

 

 

 

 

 

 

 

$

5,013,412

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

32,321

 

 

 

 

 

 

 

 

 

 

$

31,551

 

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

 

 

2.30

%

 

 

 

 

 

 

 

 

 

 

2.29

%

Net interest margin (D)

 

 

 

 

 

 

 

 

 

 

2.57

%

 

 

 

 

 

 

 

 

 

 

2.60

%

(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.

 

 

16

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 ORE 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 one reasonable measure of core expenses relative to core revenue.

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios.  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.

Non-GAAP Financial Reconciliation

(Dollars in thousands, except share data)

 

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

Tangible Book Value Per Share

 

2020 (A)

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

Shareholders’ equity

 

$

496,440

 

 

$

503,652

 

 

$

495,350

 

 

$

493,888

 

 

$

481,472

 

Less:  Intangible assets, net

 

 

40,265

 

 

 

40,588

 

 

 

41,111

 

 

 

31,941

 

 

 

32,170

 

Tangible equity

 

 

456,175

 

 

 

463,064

 

 

 

454,239

 

 

 

461,947

 

 

 

449,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period end shares outstanding

 

 

18,852,523

 

 

 

18,926,810

 

 

 

18,999,241

 

 

 

19,456,312

 

 

 

19,445,363

 

Tangible book value per share

 

$

24.20

 

 

$

24.47

 

 

$

23.91

 

 

$

23.74

 

 

$

23.11

 

Book value per share

 

 

26.33

 

 

 

26.61

 

 

 

26.07

 

 

 

25.38

 

 

 

24.76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Equity to Tangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,831,458

 

 

$

5,182,879

 

 

$

4,925,409

 

 

$

4,871,234

 

 

$

4,662,306

 

Less: Intangible assets, net

 

 

40,265

 

 

 

40,588

 

 

 

41,111

 

 

 

31,941

 

 

 

32,170

 

Tangible assets

 

 

5,791,193

 

 

 

5,142,291

 

 

 

4,884,298

 

 

 

4,839,293

 

 

 

4,630,136

 

Tangible equity to tangible assets

 

 

7.88

%

 

 

9.01

%

 

 

9.30

%

 

 

9.55

%

 

 

9.70

%

Equity to assets

 

 

8.51

%

 

 

9.72

%

 

 

10.06

%

 

 

10.14

%

 

 

10.33

%

 

 

(A)

The increase in interest-earning deposits funded by the $500.0 million FHLB Advance inflated Total Assets at March 31, 2020 by that amount.  This had the effect of reducing the equity to total assets ratio and tangible equity to tangible assets ratio by 0.80% and 0.74%, respectively.

 

 

17

 

 

Three Months Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

Efficiency Ratio

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

Net interest income

 

$

31,747

 

 

$

30,914

 

 

$

30,085

 

 

$

29,268

 

 

$

30,007

 

Total other income

 

 

14,517

 

 

 

15,525

 

 

 

14,416

 

 

 

13,026

 

 

 

11,729

 

Less:  Loss on loans held for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

at lower of cost or fair value

 

 

3

 

 

 

4

 

 

 

6

 

 

 

—

 

 

 

—

 

Less:  Income from life insurance proceeds

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Add:  Securities (gains)/losses, net

 

 

(198

)

 

 

45

 

 

 

(34

)

 

 

(69

)

 

 

(59

)

Total recurring revenue

 

 

46,069

 

 

 

46,488

 

 

 

44,473

 

 

 

42,225

 

 

 

41,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

28,235

 

 

 

26,701

 

 

 

26,259

 

 

 

26,173

 

 

 

25,715

 

Less: ORE provision

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total operating expense

 

 

28,235

 

 

 

26,701

 

 

 

26,259

 

 

 

26,173

 

 

 

25,715

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

61.29

%

 

 

57.44

%

 

 

59.04

%

 

 

61.98

%

 

 

61.70

%

 

18