New
Jersey
|
22-3537895
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
Large
accelerated filer o
|
Accelerated
filer ý
|
|
Non-accelerated
filer (do not check if a smaller reporting company) o
|
Smaller
reporting company o
|
Financial
Statements (Unaudited):
|
||
Consolidated
Statements of Condition March 31, 2008 and
|
||
December
31, 2007
|
Page
3
|
|
Consolidated
Statements of Income for the three months
|
||
ended
March 31, 2008 and 2007
|
Page
4
|
|
Consolidated
Statements of Changes in Shareholders’ Equity
|
||
for
the three months ended March 31, 2008 and 2007
|
Page
5
|
|
Consolidated
Statements of Cash Flows for the three months
|
||
ended
March 31, 2008 and 2007
|
Page
6
|
|
Notes
to Consolidated Financial Statements
|
Page
7
|
|
Management’s
Discussion and Analysis of Financial Condition
|
||
and
Results of Operations
|
Page
12
|
|
Quantitative
and Qualitative Disclosures about Market Risk
|
Page
22
|
|
Controls
and Procedures
|
Page
22
|
Risk
Factors
|
Page
23
|
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
Page
23
|
|
Exhibits
|
Page
23
|
March
31,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
Cash
and due from banks
|
$ | 25,205 | $ | 25,443 | ||||
Federal
funds sold
|
1,690 | 1,771 | ||||||
Interest-earning
deposits
|
50,441 | 973 | ||||||
Total
cash and cash equivalents
|
77,336 | 28,187 | ||||||
Investment
securities held to maturity (approximate market
|
||||||||
value
$43,305 in 2008 and $45,070 in 2007)
|
42,819 | 45,139 | ||||||
Securities
available for sale
|
228,885 | 236,944 | ||||||
FHLB
and FRB Stock, at cost
|
4,112 | 4,293 | ||||||
Loans
|
983,358 | 981,180 | ||||||
Less: Allowance
for loan losses
|
7,777 | 7,500 | ||||||
Net
Loans
|
975,581 | 973,680 | ||||||
Premises
and equipment
|
26,364 | 26,236 | ||||||
Other
real estate owned
|
965 | - | ||||||
Accrued
interest receivable
|
4,998 | 5,122 | ||||||
Cash
surrender value of life insurance
|
24,709 | 19,474 | ||||||
Other
assets
|
10,067 | 7,901 | ||||||
TOTAL
ASSETS
|
$ | 1,395,836 | $ | 1,346,976 | ||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
demand deposits
|
$ | 197,403 | $ | 199,266 | ||||
Interest-bearing
deposits:
|
||||||||
Checking
|
135,948 | 145,490 | ||||||
Savings
|
65,919 | 64,772 | ||||||
Money
market accounts
|
412,890 | 377,544 | ||||||
Certificates
of deposit over $100,000
|
182,764 | 155,410 | ||||||
Certificates
of deposit less than $100,000
|
235,550 | 237,785 | ||||||
Total
deposits
|
1,230,474 | 1,180,267 | ||||||
Overnight
borrowings
|
- | 15,650 | ||||||
Long-term
debt
|
40,658 | 29,169 | ||||||
Accrued
expenses and other liabilities
|
19,011 | 14,461 | ||||||
TOTAL
LIABILITIES
|
1,290,143 | 1,239,547 | ||||||
SHAREHOLDERS’
EQUITY
|
||||||||
Common
stock (no par value; $0.83 per share;
|
||||||||
authorized
20,000,000 shares; issued shares, 8,599,512 at
|
||||||||
March
31, 2008 and 8,577,446 at December 31, 2007;
|
||||||||
outstanding
shares, 8,289,125 at March 31, 2008 and
|
||||||||
8,304,486
at December 31, 2007)
|
7,166 | 7,148 | ||||||
Surplus
|
91,308 | 90,677 | ||||||
Treasury
stock at cost, 310,987 shares at March 31, 2008
|
||||||||
and
272,960 shares at December 31, 2007
|
(7,196 | ) | (6,255 | ) | ||||
Retained
earnings
|
23,437 | 21,750 | ||||||
Accumulated
other comprehensive loss, net of income tax
|
(9,022 | ) | (5,891 | ) | ||||
TOTAL
SHAREHOLDERS’ EQUITY
|
105,693 | 107,429 | ||||||
TOTAL
LIABILITIES & SHAREHOLDERS’ EQUITY
|
$ | 1,395,836 | $ | 1,346,976 | ||||
See
accompanying notes to consolidated financial statements.
|
Three
Months Ended
March
31,
|
||||||||
2008
|
2007
|
|||||||
INTEREST
INCOME
|
||||||||
Interest
and fees on loans
|
$ | 14,683 | $ | 13,179 | ||||
Interest
on investment securities:
|
||||||||
Taxable
|
174 | 234 | ||||||
Tax-exempt
|
241 | 271 | ||||||
Interest
on securities available for sale:
|
||||||||
Taxable
|
2,809 | 3,275 | ||||||
Tax-exempt
|
283 | 245 | ||||||
Interest-earning
deposits
|
48 | 11 | ||||||
Interest
on federal funds sold
|
107 | 79 | ||||||
Total
interest income
|
18,345 | 17,294 | ||||||
INTEREST
EXPENSE
|
||||||||
Interest
on savings and interest-bearing deposit
|
||||||||
accounts
|
2,958 | 4,243 | ||||||
Interest
on certificates of deposit over $100,000
|
1,842 | 1,606 | ||||||
Interest
on other time deposits
|
2,661 | 2,858 | ||||||
Interest
on borrowed funds
|
370 | 263 | ||||||
Total
interest expense
|
7,831 | 8,970 | ||||||
NET
INTEREST INCOME BEFORE
|
||||||||
PROVISION
FOR LOAN LOSSES
|
10,514 | 8,324 | ||||||
Provision
for loan losses
|
430 | 125 | ||||||
NET
INTEREST INCOME AFTER
|
||||||||
PROVISION
FOR LOAN LOSSES
|
10,084 | 8,199 | ||||||
OTHER
INCOME
|
||||||||
Trust
department income
|
2,485 | 2,142 | ||||||
Service
charges and fees
|
489 | 490 | ||||||
Bank
owned life insurance
|
269 | 216 | ||||||
Securities
gains
|
310 | 162 | ||||||
Other
income
|
176 | 178 | ||||||
Total
other income
|
3,729 | 3,188 | ||||||
OTHER
EXPENSES
|
||||||||
Salaries
and employee benefits
|
4,911 | 4,254 | ||||||
Premises
and equipment
|
2,040 | 1,854 | ||||||
Other
expenses
|
1,658 | 1,450 | ||||||
Total
other expenses
|
8,609 | 7,558 | ||||||
INCOME
BEFORE INCOME TAX EXPENSE
|
5,204 | 3,829 | ||||||
Income
tax expense
|
1,741 | 1,137 | ||||||
NET
INCOME
|
$ | 3,463 | $ | 2,692 | ||||
EARNINGS
PER SHARE
|
||||||||
Basic
|
$ | 0.42 | $ | 0.33 | ||||
Diluted
|
$ | 0.41 | $ | 0.32 | ||||
Average
basic shares outstanding
|
8,296,494 | 8,273,250 | ||||||
Average
diluted shares outstanding
|
8,397,751 | 8,400,599 | ||||||
See
accompanying notes to consolidated financial statements.
|
Three
Months Ended
March
31,
|
||||||||
2008
|
2007
|
|||||||
Balance,
beginning of period
|
$ | 107,429 | $ | 103,763 | ||||
Cumulative
effect adjustment resulting from the adoption of
|
||||||||
EITF
06-04
|
(449 | ) | - | |||||
Balance,
beginning of period, as adjusted
|
106,980 | 103,763 | ||||||
Comprehensive
income:
|
||||||||
Net
income
|
3,463 | 2,692 | ||||||
Unrealized
holding (losses)/gains/ on securities
|
||||||||
arising
during the period, net of tax
|
(2,930 | ) | 376 | |||||
Less: reclassification
adjustment for gains
|
||||||||
included
in net income, net of tax
|
201 | 105 | ||||||
(3,131 | ) | 271 | ||||||
Total
comprehensive income
|
332 | 2,963 | ||||||
Common
stock options exercised
|
386 | 219 | ||||||
Purchase
of treasury stock
|
(941 | ) | (181 | ) | ||||
Cash
dividends declared
|
(1,328 | ) | (1,241 | ) | ||||
Stock-based
compensation expense
|
101 | 45 | ||||||
Tax
benefit on disqualifying and nonqualifying
|
||||||||
exercise
of stock options
|
163 | - | ||||||
Balance,
March 31,
|
$ | 105,693 | $ | 105,568 | ||||
See
accompanying notes to consolidated financial statements.
|
Three
Months Ended March 31,
|
||||||||
2008
|
2007
|
|||||||
OPERATING
ACTIVITIES:
|
||||||||
Net
income:
|
$ | 3,463 | $ | 2,692 | ||||
Adjustments
to reconcile net income to net cash
|
||||||||
provided
by operating activities:
|
||||||||
Depreciation
|
574 | 530 | ||||||
Amortization
of premium and accretion of
|
||||||||
discount
on securities, net
|
75 | 80 | ||||||
Provision
for loan losses
|
430 | 125 | ||||||
Gains
on security sales
|
(310 | ) | (162 | ) | ||||
Gain
on loans sold
|
- | (1 | ) | |||||
Loss/(Gain)
on disposal of fixed assets
|
71 | (3 | ) | |||||
Gain
on sale of other real estate owned
|
(24 | ) | - | |||||
Stock-based
compensation
|
101 | 45 | ||||||
Increase
in cash surrender value of life insurance, net
|
(235 | ) | (188 | ) | ||||
Decrease/(increase)
in accrued interest receivable
|
124 | 281 | ||||||
(Increase)/Decrease
in other assets
|
(91 | ) | 198 | |||||
Increase/(Decrease)
in accrued expenses and other liabilities
|
4,102 | (3,946 | ) | |||||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
8,280 | (349 | ) | |||||
INVESTING
ACTIVITIES:
|
||||||||
Proceeds
from maturities of investment securities
|
2,002 | 2,002 | ||||||
Proceeds
from maturities of securities available for sale
|
11,792 | 14,313 | ||||||
Proceeds
from calls of investment securities
|
300 | 150 | ||||||
Proceeds
from calls and sales of securities available for sale
|
19,419 | 810 | ||||||
Purchase
of securities available for sale
|
(27,924 | ) | (4,596 | ) | ||||
Purchase
of life insurance
|
(5,000 | ) | - | |||||
Proceeds
from sales of loans
|
6,658 | 858 | ||||||
Net
increase in loans
|
(10,216 | ) | (13,277 | ) | ||||
Proceeds
from sales of other real estate owned
|
286 | - | ||||||
Purchases
of premises and equipment
|
(804 | ) | (1,128 | ) | ||||
Disposal
of premises and equipment
|
31 | 30 | ||||||
NET
CASH USED IN INVESTING ACTIVITIES
|
(3,456 | ) | (838 | ) | ||||
FINANCING
ACTIVITIES:
|
||||||||
Net
increase in deposits
|
50,207 | 21,291 | ||||||
Net
decrease in other borrowings
|
(15,650 | ) | - | |||||
Proceeds
from Federal Home Loan Bank advances
|
12,000 | - | ||||||
Repayments
of Federal Home Loan Bank advances
|
(511 | ) | (444 | ) | ||||
Cash
dividends paid
|
(1,329 | ) | (1,241 | ) | ||||
Tax
benefit on stock option exercises
|
163 | - | ||||||
Exercise
of stock options
|
386 | 219 | ||||||
Purchase
of treasury stock
|
(941 | ) | (181 | ) | ||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
|
44,325 | 19,644 | ||||||
Net
increase in cash and cash equivalents
|
49,149 | 18,457 | ||||||
Cash
and cash equivalents at beginning of period
|
28,187 | 30,258 | ||||||
Cash
and cash equivalents at end of period
|
$ | 77,336 | $ | 48,715 | ||||
Supplemental
disclosures of cash flow information:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$ | 7,309 | $ | 8,067 | ||||
Income
taxes
|
- | 750 | ||||||
See
accompanying notes to consolidated financial statements.
|
|
1.
|
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
|
Number
|
Exercise
|
Weighted
|
Aggregate
|
|||||||||||||
of
|
Price
|
Average
|
Intrinsic
|
|||||||||||||
(Dollars
in thousands except share data)
|
Shares
|
Per
Share
|
Exercise
Price
|
Value
|
||||||||||||
Balance,
December 31, 2007
|
583,812 | $ | 13.62-$32.14 | $ | 24.77 | |||||||||||
Granted
|
64,860 | 24.57-27.04 | 24.59 | |||||||||||||
Exercised
|
(22,066 | ) | 16.86-18.23 | 17.50 | ||||||||||||
Forfeited
|
(100 | ) | 27.90 | 27.90 | ||||||||||||
Balance,
March 31, 2008
|
626,506 | $ | 13.62-$32.14 | $ | 25.01 | $ | 1,931 | |||||||||
Options
exercisable, March 31, 2008
|
496,757 | $ | 1,764 |
2008
|
2007
|
|||||||
Dividend
yield
|
2.37 | % | 1.99 | % | ||||
Expected
volatility
|
50 | % | 42 | % | ||||
Expected
life
|
7
years
|
5
years
|
||||||
Risk-free
interest rate
|
3.86 | % | 4.56 | % |
Three
Months Ended
March
31,
|
||||||||
(In
Thousands, except per share data)
|
2008
|
2007
|
||||||
Net
Income to Common Shareholders
|
$ | 3,463 | $ | 2,692 | ||||
Basic
Weighted-Average Common Shares Outstanding
|
8,296,494 | 8,273,250 | ||||||
Plus: Common
Stock Equivalents
|
101,257 | 127,349 | ||||||
Diluted
Weighted-Average Common Shares Outstanding
|
8,397,751 | 8,400,599 | ||||||
Net
Income Per Common Share
|
||||||||
Basic
|
$ | 0.42 | $ | 0.33 | ||||
Diluted
|
0.41 | 0.32 |
March
31,
|
December
31,
|
|||||||
(In
thousands)
|
2008
|
2007
|
||||||
Residential
real estate
|
$ | 494,806 | $ | 497,016 | ||||
Commercial
real estate
|
249,654 | 237,316 | ||||||
Commercial
loans
|
132,478 | 129,747 | ||||||
Construction
loans
|
51,928 | 60,589 | ||||||
Consumer
loans
|
34,353 | 37,264 | ||||||
Other
loans
|
20,139 | 19,248 | ||||||
Total
loans
|
$ | 983,358 | $ | 981,180 |
(In
thousands)
|
||||
2008
|
$ | - | ||
2009
|
2,000 | |||
2010
|
13,390 | |||
2011
|
3,000 | |||
2012
|
5,000 | |||
Over
5 years
|
17,268 | |||
Total
|
$ | 40,658 |
Three
Months Ended
March
31,
|
||||||||
(In
thousands)
|
2008
|
2007
|
||||||
Service
cost
|
$ | 434 | $ | 438 | ||||
Interest
cost
|
229 | 195 | ||||||
Expected
return on plan assets
|
(289 | ) | (252 | ) | ||||
Amortization
of:
|
||||||||
Net
loss
|
9 | 9 | ||||||
Unrecognized
prior service cost
|
- | - | ||||||
Unrecognized
remaining net assets
|
(2 | ) | (2 | ) | ||||
Net
periodic benefit cost
|
$ | 381 | $ | 388 |
|
5.
|
BUSINESS
SEGMENTS
|
PGB
Trust
|
||||||||||||
Banking
|
&
Investments
|
Total
|
||||||||||
(In
thousands)
|
2008
|
2008
|
2008
|
|||||||||
Net
interest income
|
$ | 9,803 | $ | 711 | $ | 10,514 | ||||||
Noninterest
income
|
1,175 | 2,554 | 3,729 | |||||||||
Total
income
|
10,978 | 3,265 | 14,243 | |||||||||
Provision
for loan losses
|
430 | - | 430 | |||||||||
Premises
and equipment expense
|
1,828 | 212 | 2,040 | |||||||||
Other
noninterest expense
|
4,893 | 1,676 | 6,569 | |||||||||
Total
noninterest expense
|
7,151 | 1,888 | 9,039 | |||||||||
Income
before income tax expense
|
3,827 | 1,377 | 5,204 | |||||||||
Income
tax expense
|
1,280 | 461 | 1,741 | |||||||||
Net
income
|
$ | 2,547 | $ | 916 | $ | 3,463 | ||||||
Total
assets at period end
|
$ | 1,395,184 | $ | 652 | $ | 1,395,836 |
|
6.
|
FAIR
VALUE
|
|
Level
1: Quoted prices (unadjusted) or identical assets or
liabilities in active markets that the entity has the ability to access as
of the measurement date.
|
|
Level
2: Significant other observable inputs other than Level 1
prices such as quoted prices for similar assets or liabilities; quoted
prices in markets that are not active; or other inputs that are observable
or can be corroborated by observable market
data.
|
|
Level
3: Significant unobservable inputs that reflect a reporting
entity’s own assumptions about the assumptions that market participants
would use in pricing an asset or
liability.
|
Fair
Value Measurements at March 31, 2008 Using
|
||||||||||||||||
Quoted
|
||||||||||||||||
Prices
in
|
||||||||||||||||
Active
|
||||||||||||||||
Markets
|
Significant
|
|||||||||||||||
For
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
March
31,
|
Assets
|
Inputs
|
Inputs
|
|||||||||||||
2008
|
(Level
1)
|
(Level
2)
|
(Level
3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Available
for Sale Securities
|
$ | 228,885 | $ | 2,711 | $ | 226,174 | $ | - |
|
Ÿ
|
Effectiveness
of the Corporation’s balance sheet restructuring
initiative.
|
|
Ÿ
|
The
uncertain credit environment in which the Corporation
operates.
|
|
Ÿ
|
Unexpected
decline in the direction of the economy in New
Jersey.
|
|
Ÿ
|
Unexpected
changes in interest rates.
|
|
Ÿ
|
Failure
to grow business.
|
|
Ÿ
|
Inability
to manage growth in commercial
loans.
|
|
Ÿ
|
Unexpected
loan prepayment volume.
|
|
Ÿ
|
Unanticipated
exposure to credit risks.
|
|
Ÿ
|
Insufficient
allowance for loan losses.
|
|
Ÿ
|
Competition
from other financial institutions.
|
|
Ÿ
|
Adverse
effects of government regulation or different than anticipated effects
from existing regulations.
|
|
Ÿ
|
Decline
in the levels of loan quality and origination
volume.
|
|
Ÿ
|
Decline
in trust assets or deposits.
|
|
Ÿ
|
Unexpected
classification of securities to other-than-temporary impaired
status.
|
March 31,
2008
|
March 31,
2007
|
|||||||||||||||||||||||
Average
|
Income/
|
Average
|
Income/
|
|||||||||||||||||||||
Balance
|
Expense
|
Yield
|
Balance
|
Expense
|
Yield
|
|||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Interest-earnings
assets:
|
||||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||||
Taxable
(1)
|
$ | 231,715 | $ | 2,983 | 5.15 | % | $ | 282,137 | $ | 3,509 | 4.97 | % | ||||||||||||
Tax-exempt
(1) (2)
|
56,821 | 776 | 5.46 | 56,502 | 740 | 5.24 | ||||||||||||||||||
Loans
(2) (3)
|
982,625 | 14,704 | 5.99 | 870,905 | 13,193 | 6.06 | ||||||||||||||||||
Federal
funds sold
|
13,153 | 107 | 3.26 | 5,884 | 79 | 5.38 | ||||||||||||||||||
Interest-earning
deposits
|
7,819 | 48 | 2.45 | 898 | 11 | 5.02 | ||||||||||||||||||
Total
interest-earning assets
|
1,292,133 | $ | 18,618 | 5.76 | % | 1,216,326 | $ | 17,532 | 5.77 | % | ||||||||||||||
Noninterest
-earning assets:
|
||||||||||||||||||||||||
Cash
and due from banks
|
20,809 | 23,127 | ||||||||||||||||||||||
Allowance
for loan losses
|
(7,463 | ) | (6,770 | ) | ||||||||||||||||||||
Premises
and equipment
|
26,473 | 24,406 | ||||||||||||||||||||||
Other
assets
|
28,436 | 26,642 | ||||||||||||||||||||||
Total
noninterest-earning assets
|
68,255 | 67,405 | ||||||||||||||||||||||
Total
assets
|
$ | 1,360,388 | $ | 1,283,731 | ||||||||||||||||||||
LIABILITIES:
|
||||||||||||||||||||||||
Interest-bearing
deposits:
|
||||||||||||||||||||||||
Checking
|
$ | 136,440 | $ | 210 | 0.62 | % | $ | 136,941 | $ | 282 | 0.82 | % | ||||||||||||
Money
markets
|
406,070 | 2,649 | 2.61 | 378,082 | 3,837 | 4.06 | ||||||||||||||||||
Savings
|
64,753 | 99 | 0.61 | 72,574 | 124 | 0.68 | ||||||||||||||||||
Certificates
of deposit
|
403,912 | 4,503 | 4.46 | 372,280 | 4,464 | 4.80 | ||||||||||||||||||
Total
interest-bearing deposits
|
1,011,175 | 7,461 | 2.95 | 959,877 | 8,707 | 3.63 | ||||||||||||||||||
Borrowings
|
41,014 | 370 | 3.61 | 27,930 | 263 | 3.77 | ||||||||||||||||||
Total
interest-bearing liabilities
|
1,052,189 | 7,831 | 2.98 | 987,807 | 8,970 | 3.63 | ||||||||||||||||||
Noninterest
bearing liabilities
|
||||||||||||||||||||||||
Demand
deposits
|
185,818 | 180,247 | ||||||||||||||||||||||
Accrued
expenses and
|
||||||||||||||||||||||||
other
liabilities
|
14,267 | 10,967 | ||||||||||||||||||||||
Total
noninterest-bearing
|
||||||||||||||||||||||||
liabilities
|
200,085 | 191,214 | ||||||||||||||||||||||
Shareholders’
equity
|
108,114 | 104,710 | ||||||||||||||||||||||
Total
liabilities and
|
||||||||||||||||||||||||
shareholders’
equity
|
$ | 1,360,388 | $ | 1,283,731 | ||||||||||||||||||||
Net
Interest income
|
||||||||||||||||||||||||
(tax-equivalent
basis)
|
10,787 | 8,562 | ||||||||||||||||||||||
Net
interest spread
|
2.78 | % | 2.14 | % | ||||||||||||||||||||
Net
interest margin (4)
|
3.34 | % | 2.82 | % | ||||||||||||||||||||
Tax
equivalent adjustment
|
(273 | ) | (238 | ) | ||||||||||||||||||||
Net
interest income
|
$ | 10,514 | $ | 8,324 |
March 31,
2008
|
December 31,
2007
|
|||||||||||||||||||||||
Average
|
Income/
|
Average
|
Income/
|
|||||||||||||||||||||
Balance
|
Expense
|
Yield
|
Balance
|
Expense
|
Yield
|
|||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Interest-earnings
assets:
|
||||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||||
Taxable
(1)
|
$ | 231,715 | $ | 2,983 | 5.15 | % | $ | 251,018 | $ | 3,332 | 5.31 | % | ||||||||||||
Tax-exempt
(1) (2)
|
56,821 | 776 | 5.46 | 55,263 | 733 | 5.31 | ||||||||||||||||||
Loans
(2) (3)
|
982,625 | 14,704 | 5.99 | 961,424 | 15,008 | 6.24 | ||||||||||||||||||
Federal
funds sold
|
13,153 | 107 | 3.26 | 6,102 | 71 | 4.63 | ||||||||||||||||||
Interest-earning
deposits
|
7,819 | 48 | 2.45 | 897 | 9 | 4.03 | ||||||||||||||||||
Total
interest-earning assets
|
1,292,133 | $ | 18,618 | 5.76 | % | 1,274,704 | $ | 19,153 | 6.01 | % | ||||||||||||||
Noninterest
-earning assets:
|
||||||||||||||||||||||||
Cash
and due from banks
|
20,809 | 22,203 | ||||||||||||||||||||||
Allowance
for loan losses
|
(7,463 | ) | (7,114 | ) | ||||||||||||||||||||
Premises
and equipment
|
26,473 | 26,145 | ||||||||||||||||||||||
Other
assets
|
28,436 | 26,574 | ||||||||||||||||||||||
Total
noninterest-earning assets
|
68,255 | 67,808 | ||||||||||||||||||||||
Total
assets
|
$ | 1,360,388 | $ | 1,342,512 | ||||||||||||||||||||
LIABILITIES:
|
||||||||||||||||||||||||
Interest-bearing
deposits:
|
||||||||||||||||||||||||
Checking
|
$ | 136,440 | $ | 210 | 0.62 | % | $ | 132,446 | $ | 238 | 0.72 | % | ||||||||||||
Money
markets
|
406,070 | 2,649 | 2.61 | 399,177 | 3,417 | 3.42 | ||||||||||||||||||
Savings
|
64,753 | 99 | 0.61 | 65,470 | 101 | 0.62 | ||||||||||||||||||
Certificates
of deposit
|
403,912 | 4,503 | 4.46 | 395,784 | 4,757 | 4.81 | ||||||||||||||||||
Total
interest-bearing deposits
|
1,011,175 | 7,461 | 2.95 | 992,877 | 8,513 | 3.43 | ||||||||||||||||||
Borrowings
|
41,014 | 370 | 3.61 | 39,369 | 406 | 4.13 | ||||||||||||||||||
Total
interest-bearing liabilities
|
1,052,189 | 7,831 | 2.98 | 1,032,246 | 8,919 | 3.46 | ||||||||||||||||||
Noninterest
bearing liabilities
|
||||||||||||||||||||||||
Demand
deposits
|
185,818 | 189,384 | ||||||||||||||||||||||
Accrued
expenses and
|
||||||||||||||||||||||||
other
liabilities
|
14,267 | 12,357 | ||||||||||||||||||||||
Total
noninterest-bearing
|
||||||||||||||||||||||||
liabilities
|
200,085 | 201,741 | ||||||||||||||||||||||
Shareholders’
equity
|
108,114 | 108,525 | ||||||||||||||||||||||
Total
liabilities and
|
||||||||||||||||||||||||
shareholders’
equity
|
$ | 1,360,388 | $ | 1,342,512 | ||||||||||||||||||||
Net
Interest income
|
||||||||||||||||||||||||
(tax-equivalent
basis)
|
10,787 | 10,234 | ||||||||||||||||||||||
Net
interest spread
|
2.78 | % | 2.55 | % | ||||||||||||||||||||
Net
interest margin (4)
|
3.34 | % | 3.21 | % | ||||||||||||||||||||
Tax
equivalent adjustment
|
(273 | ) | (246 | ) | ||||||||||||||||||||
Net
interest income
|
$ | 10,514 | $ | 9,988 |
|
(1)
|
Average
balances for available-for sale securities are based on amortized
cost.
|
|
(2)
|
Interest
income is presented on a tax-equivalent basis using a 35 percent federal
tax rate.
|
|
(3)
|
Loans
are stated net of unearned income and include non-accrual
loans.
|
|
(4)
|
Net
interest income on a tax-equivalent basis as a percentage of total average
interest-earning assets.
|
Three
Months Ended
March
31,
|
||||||||
(In
thousands)
|
2008
|
2007
|
||||||
Trust
department income
|
$ | 2,485 | $ | 2,142 | ||||
Service
charges and fees
|
489 | 490 | ||||||
Bank
owned life insurance
|
269 | 216 | ||||||
Other
non-interest income
|
155 | 90 | ||||||
Safe
deposit rental fees
|
67 | 66 | ||||||
Fees
for other services
|
25 | 19 | ||||||
(Losses)/gains
on disposal of fixed assets
|
(71 | ) | 3 | |||||
Securities
gains
|
310 | 162 | ||||||
Total
other income
|
$ | 3,729 | $ | 3,188 |
Three
Months Ended
|
||||||||
March
31,
|
||||||||
(In
thousands)
|
2008
|
2007
|
||||||
Salaries
and employee benefits
|
$ | 4,911 | $ | 4,254 | ||||
Premises
and equipment
|
2,040 | 1,854 | ||||||
Advertising
|
253 | 113 | ||||||
Professional
fees
|
237 | 273 | ||||||
Trust
department expense
|
139 | 99 | ||||||
Telephone
|
111 | 106 | ||||||
Stationery
and supplies
|
110 | 78 | ||||||
Postage
|
91 | 84 | ||||||
Other
expense
|
717 | 697 | ||||||
Total
other expense
|
$ | 8,609 | $ | 7,558 |
March
31,
|
December
31,
|
|||||||
(In
thousands)
|
2008
|
2007
|
||||||
Loans
past due in excess of 90 days and still accruing
|
$ | - | $ | - | ||||
Non-accrual
loans
|
4,506 | 2,131 | ||||||
Other
real estate owned
|
965 | - | ||||||
Total
non-performing assets
|
$ | 5,471 | $ | 2,131 | ||||
Non-performing
loans as a % of total loans
|
0.46 | % | 0.22 | % | ||||
Non-performing
assets as a % of total loans plus
|
||||||||
other
real estate owned
|
0.56 | % | 0.22 | % | ||||
Allowance
as a % of total loans
|
0.79 | % | 0.76 | % |
(In
thousands)
|
2008
|
2007
|
||||||
Balance,
January 1,
|
$ | 7,500 | $ | 6,768 | ||||
Provision
charged to expense
|
430 | 125 | ||||||
Charge-offs
|
(154 | ) | - | |||||
Recoveries
|
1 | 1 | ||||||
Balance,
March 31,
|
$ | 7,777 | $ | 6,894 |
Issuer
Purchases of Equity Securities
|
||||||||||||||||
Total
Number of
|
||||||||||||||||
Shares
|
Maximum
Number
|
|||||||||||||||
Total
|
Purchased
as
|
Of
Shares That May
|
||||||||||||||
Number
of
|
Average
|
Part
of Publicly
|
Yet
be Purchased
|
|||||||||||||
Shares
|
Price
Paid
|
Announced
Plans
|
Under
the Plans or
|
|||||||||||||
Period
|
Purchased
|
Per
Share
|
Or
Programs
|
Programs
|
||||||||||||
January
1-31, 2008
|
6,346 | $ | 24.41 | 6,346 | 61,254 | |||||||||||
February
1-29, 2008
|
4,154 | 25.37 | 4,154 | 57,100 | ||||||||||||
March
1-31, 2008
|
11,800 | 25.17 | 11,800 | 45,300 | ||||||||||||
Total
|
22,300 | $ | 24.99 | 22,300 |
3
|
Articles
of Incorporation and By-Laws:
|
|
A.
Restated Certificate of Incorporation as in effect on the date of this
filing (filed herewith).
|
||
B. Amended
By-Laws of the Registrant as in effect on the date of this filing are
incorporated herein by reference to the Registrant’s Current Report on
Form 8-K filed on April 27, 2007.
|
||
31.1
|
Certification
of Frank A. Kissel, Chief Executive Officer of the Corporation, pursuant
to Securities Exchange Act Rule 13a-14(a).
|
|
31.2
|
Certification
of Arthur F. Birmingham, Chief Financial Officer of the Corporation,
pursuant to Securities Exchange Act Rule 13a-14(a).
|
|
32
|
Certification
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act Of 2002, signed by Frank A. Kissel, Chief Executive
Officer of the Corporation, and Arthur F. Birmingham, Chief Financial
Officer of the Corporation.
|
PEAPACK-GLADSTONE
FINANCIAL CORPORATION
|
|
(Registrant)
|
|
DATE: May
8, 2008
|
By:
/s/ Frank A. Kissel
|
Frank
A. Kissel
|
|
Chairman
of the Board and Chief Executive Officer
|
|
DATE: May
8, 2008
|
By:
/s/ Arthur F. Birmingham
|
Arthur
F. Birmingham
|
|
Executive
Vice President and Chief Financial
Officer
|
Number
|
Description
|
|
3
|
Articles
of Incorporation and By-Laws:
|
|
A.
Restated Certificate of Incorporation as in effect on the date of this
filing (filed herewith).
|
||
B.
Amended By-Laws of the Registrant as in effect on the date of
this filing are incorporated herein by reference to the Registrant’s
Current Report on Form 8-K filed on April 27, 2007.
|
||
31.1
|
Certification
of Frank A. Kissel, Chief Executive Officer of the Corporation, pursuant
to Securities Exchange Act Rule 13a-14(a).
|
|
31.2
|
Certification
of Arthur F. Birmingham, Chief Financial Officer of the Corporation,
pursuant to Securities Exchange Act Rule 13a-14(a).
|
|
32
|
Certification
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes-Oxley Act Of 2002, signed by Frank A. Kissel, Chief Executive
Officer of the Corporation, and Arthur F. Birmingham, Chief Financial
Officer of the Corporation.
|