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
|
Item 1A
|
Risk Factors
|
Page 36
|
Item 2
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Page 36
|
Item 6
|
Exhibits
|
Page 36
|
September 30,
|
December 31,
|
|||||||
2009
|
2008
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 9,343 | $ | 25,686 | ||||
Federal funds sold
|
200 | 200 | ||||||
Interest-earning deposits
|
46,876 | 1,003 | ||||||
Total cash and cash equivalents
|
56,419 | 26,889 | ||||||
Investment securities held to maturity (approximate fair
|
||||||||
value $86,698 in 2009 and $52,175 in 2008)
|
86,703 | 51,731 | ||||||
Securities available for sale
|
252,786 | 173,543 | ||||||
FHLB and FRB Stock, at cost
|
5,329 | 4,902 | ||||||
Loans
|
1,007,981 | 1,052,982 | ||||||
Less: Allowance for loan losses
|
12,947 | 9,688 | ||||||
Net Loans
|
995,034 | 1,043,294 | ||||||
Premises and equipment
|
28,011 | 26,936 | ||||||
Other real estate owned
|
680 | 1,211 | ||||||
Accrued interest receivable
|
5,359 | 4,117 | ||||||
Cash surrender value of life insurance
|
26,087 | 25,480 | ||||||
Deferred tax assets, net
|
22,154 | 23,143 | ||||||
Other assets
|
9,117 | 4,179 | ||||||
TOTAL ASSETS
|
$ | 1,487,679 | $ | 1,385,425 | ||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing demand deposits
|
$ | 199,804 | $ | 210,030 | ||||
Interest-bearing deposits:
|
||||||||
Checking
|
212,687 | 167,727 | ||||||
Savings
|
73,308 | 67,453 | ||||||
Money market accounts
|
470,123 | 364,628 | ||||||
Certificates of deposit $100,000 and over
|
159,942 | 195,826 | ||||||
Certificates of deposit less than $100,000
|
209,994 | 232,224 | ||||||
Total deposits
|
1,325,858 | 1,237,888 | ||||||
Overnight borrowings
|
- | 15,250 | ||||||
Federal Home Loan Bank advances
|
36,815 | 39,748 | ||||||
Accrued expenses and other liabilities
|
5,862 | 8,645 | ||||||
TOTAL LIABILITIES
|
1,368,535 | 1,301,531 | ||||||
SHAREHOLDERS’ EQUITY *
|
||||||||
Preferred stock (no par value; authorized 500,000 shares; issued 28,685
|
||||||||
shares at September 30, 2009 and none at December 31, 2008;
|
||||||||
liquidation preference of $1,000 per share)
|
27,286 | - | ||||||
Common stock (no par value; $0.83 per share; authorized 21,000,000
|
||||||||
shares; issued shares, 9,125,328 at September 30, 2009 and 9,060,165
|
||||||||
at December 31, 2008; outstanding shares, 8,715,907 at September
|
||||||||
30, 2009 and 8,704,314 at December 31, 2008)
|
9,189 | 7,190 | ||||||
Surplus
|
93,185 | 92,169 | ||||||
Treasury stock at cost, 408,178 shares at September 30, 2009 and
|
||||||||
355,851 shares at December 31, 2008
|
(8,988 | ) | (7,894 | ) | ||||
Retained earnings
|
(65 | ) | (6,063 | ) | ||||
Accumulated other comprehensive loss, net of income tax
|
(1,463 | ) | (1,508 | ) | ||||
TOTAL SHAREHOLDERS’ EQUITY
|
119,144 | 83,894 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY
|
$ | 1,487,679 | $ | 1,385,425 |
|
* Share data reflects the five percent common stock dividend declared on June 18, 2009, and issued August 3, 2009 to shareholders of record on July 9, 2009.
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
INTEREST INCOME
|
||||||||||||||||
Interest and fees on loans
|
$ | 13,502 | $ | 14,878 | $ | 41,764 | $ | 43,845 | ||||||||
Interest on investment securities:
|
||||||||||||||||
Taxable
|
421 | 905 | 933 | 1,235 | ||||||||||||
Tax-exempt
|
237 | 225 | 695 | 699 | ||||||||||||
Interest on securities available for sale:
|
||||||||||||||||
Taxable
|
2,041 | 1,727 | 5,955 | 7,083 | ||||||||||||
Tax-exempt
|
153 | 164 | 492 | 758 | ||||||||||||
Interest-earning deposits
|
25 | 10 | 44 | 134 | ||||||||||||
Interest on federal funds sold
|
- | 3 | - | 115 | ||||||||||||
Total interest income
|
16,379 | 17,912 | 49,883 | 53,869 | ||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest on savings and interest-bearing deposit
|
||||||||||||||||
accounts
|
1,598 | 2,307 | 4,701 | 7,427 | ||||||||||||
Interest on certificates of deposit over $100,000
|
909 | 1,295 | 3,423 | 4,696 | ||||||||||||
Interest on other time deposits
|
1,286 | 1,696 | 4,500 | 6,440 | ||||||||||||
Interest on borrowed funds
|
336 | 461 | 1,035 | 1,222 | ||||||||||||
Total interest expense
|
4,129 | 5,759 | 13,659 | 19,785 | ||||||||||||
NET INTEREST INCOME BEFORE
|
||||||||||||||||
PROVISION FOR LOAN LOSSES
|
12,250 | 12,153 | 36,224 | 34,084 | ||||||||||||
Provision for loan losses
|
2,750 | 780 | 6,750 | 1,800 | ||||||||||||
NET INTEREST INCOME AFTER
|
||||||||||||||||
PROVISION FOR LOAN LOSSES
|
9,500 | 11,373 | 29,474 | 32,284 | ||||||||||||
OTHER INCOME
|
||||||||||||||||
Trust department income
|
2,200 | 2,489 | 7,082 | 7,640 | ||||||||||||
Service charges and fees
|
554 | 554 | 1,624 | 1,583 | ||||||||||||
Bank owned life insurance
|
240 | 293 | 668 | 865 | ||||||||||||
Securities gains, net
|
(2 | ) | 104 | 111 | 483 | |||||||||||
Other income
|
343 | 117 | 942 | 376 | ||||||||||||
Total other income
|
3,335 | 3,557 | 10,427 | 10,947 | ||||||||||||
OTHER EXPENSES
|
||||||||||||||||
Salaries and employee benefits
|
5,622 | 5,509 | 16,585 | 15,253 | ||||||||||||
Premises and equipment
|
2,185 | 2,116 | 6,444 | 6,264 | ||||||||||||
Other expenses
|
3,133 | 1,966 | 8,629 | 5,812 | ||||||||||||
Total other expenses
|
10,940 | 9,591 | 31,658 | 27,329 | ||||||||||||
INCOME BEFORE INCOME TAX EXPENSE
|
1,895 | 5,339 | 8,243 | 15,902 | ||||||||||||
Income tax expense
|
583 | 1,822 | 2,519 | 5,343 | ||||||||||||
NET INCOME
|
1,312 | 3,517 | 5,724 | 10,559 | ||||||||||||
Dividends on preferred stock and accretion
|
430 | - | 1,063 | - | ||||||||||||
NET INCOME AVAILABLE TO COMMON
|
||||||||||||||||
SHAREHOLDERS
|
$ | 882 | $ | 3,517 | $ | 4,661 | $ | 10,559 | ||||||||
EARNINGS PER COMMON SHARE *
|
||||||||||||||||
Basic
|
$ | 0.10 | $ | 0.40 | $ | 0.53 | $ | 1.21 | ||||||||
Diluted
|
$ | 0.10 | $ | 0.40 | $ | 0.53 | $ | 1.20 | ||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING *
|
||||||||||||||||
Basic
|
8,715,549 | 8,702,106 | 8,713,662 | 8,708,658 | ||||||||||||
Diluted
|
8,773,874 | 8,813,327 | 8,774,113 | 8,812,421 |
|
* Share data reflects the five percent common stock dividend declared on June 18, 2009, and issued August 3, 2009 to shareholders of record on July 9, 2009.
|
|
See accompanying notes to consolidated financial statements.
|
Accumulated
|
||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||
(In Thousands, Except
|
Common
|
Preferred
|
Treasury
|
Retained
|
Comprehensive
|
|||||||||||||||||||||||
Per Share Data)
|
Stock
|
Stock
|
Surplus
|
Stock
|
Earnings
|
Income/(Loss)
|
Total
|
|||||||||||||||||||||
Balance at December 31, 2008
|
||||||||||||||||||||||||||||
8,704,314 Shares Outstanding
|
$ | 7,190 | $ | - | $ | 92,169 | $ | (7,894 | ) | $ | (6,063 | ) | $ | (1,508 | ) | $ | 83,894 | |||||||||||
Comprehensive Income:
|
||||||||||||||||||||||||||||
Net Income 2009
|
5,724 | 5,724 | ||||||||||||||||||||||||||
Unrealized Holding Gains on
|
||||||||||||||||||||||||||||
Securities Arising During the
|
||||||||||||||||||||||||||||
Period, Net of Amortization
|
||||||||||||||||||||||||||||
(Net of Income Tax
|
||||||||||||||||||||||||||||
Expense of $2,468)
|
3,217 | |||||||||||||||||||||||||||
Less: Reclassification
|
||||||||||||||||||||||||||||
Adjustment for Gains
|
||||||||||||||||||||||||||||
Included in Net Income (Net
|
||||||||||||||||||||||||||||
of Income Tax Expense
|
||||||||||||||||||||||||||||
of $39)
|
72 | |||||||||||||||||||||||||||
Net Unrealized Holding
|
||||||||||||||||||||||||||||
Gains on Securities Arising
|
||||||||||||||||||||||||||||
During the Period (Net of
|
||||||||||||||||||||||||||||
Income Tax Expense
|
||||||||||||||||||||||||||||
of $2,429)
|
3,145 | 3,145 | ||||||||||||||||||||||||||
Total Comprehensive Income
|
8,869 | |||||||||||||||||||||||||||
Gross Proceeds from Issuance
|
||||||||||||||||||||||||||||
of Preferred Stocks and
|
||||||||||||||||||||||||||||
Warrants
|
1,601 | 27,084 | 28,685 | |||||||||||||||||||||||||
Accretion of Discount on
|
||||||||||||||||||||||||||||
Preferred Stock
|
202 | (202 | ) | - | ||||||||||||||||||||||||
Costs Related to Issuance of
|
||||||||||||||||||||||||||||
Preferred Stock
|
(112 | ) | (112 | ) | ||||||||||||||||||||||||
Cash Dividends Declared on
|
||||||||||||||||||||||||||||
Common Stock
|
(1,764 | ) | (1,764 | ) | ||||||||||||||||||||||||
Cash Dividends Declared on
|
||||||||||||||||||||||||||||
Preferred Stock
|
(860 | ) | (860 | ) | ||||||||||||||||||||||||
Common Stock Option Expense
|
396 | 396 | ||||||||||||||||||||||||||
Common Stock Options
|
||||||||||||||||||||||||||||
Exercised
|
51 | 1,057 | 1,108 | |||||||||||||||||||||||||
Stock Dividend 5 Percent
|
346 | (346 | ) | - | ||||||||||||||||||||||||
Sales of Shares (Dividend
|
||||||||||||||||||||||||||||
Reinvestment Program)
|
1 | 21 | 22 | |||||||||||||||||||||||||
Adjustment to Initially Apply
|
||||||||||||||||||||||||||||
“Recognition and Presentation
|
||||||||||||||||||||||||||||
Of Other-Than-Temporary
|
||||||||||||||||||||||||||||
Impairments”
|
||||||||||||||||||||||||||||
Under ASC 320-10-65
|
||||||||||||||||||||||||||||
(Net of Income Tax Benefit
|
||||||||||||||||||||||||||||
of $1,669)
|
3,100 | (3,100 | ) | - | ||||||||||||||||||||||||
Increase in Treasury Shares
|
||||||||||||||||||||||||||||
Associated with Common
|
||||||||||||||||||||||||||||
Stock Options Exercised
|
(1,094 | ) | (1,094 | ) | ||||||||||||||||||||||||
Balance at September 30, 2009
|
||||||||||||||||||||||||||||
8,715,907 Shares Outstanding
|
$ | 9,189 | $ | 27,286 | $ | 93,185 | $ | (8,988 | ) | $ | (65 | ) | $ | (1,463 | ) | $ | 119,144 |
Accumulated
|
||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||
(In Thousands, Except
|
Common
|
Preferred
|
Treasury
|
Retained
|
Comprehensive
|
|||||||||||||||||||||||
Per Share Data)
|
Stock
|
Stock
|
Surplus
|
Stock
|
Earnings
|
Income/(Loss)
|
Total
|
|||||||||||||||||||||
Balance at December 31, 2007
|
||||||||||||||||||||||||||||
8,719,710 Shares Outstanding
|
$ | 7,148 | $ | - | $ | 90,677 | $ | (6,255 | ) | $ | 21,750 | $ | (5,891 | ) | $ | 107,429 | ||||||||||||
Cumulative Effect Adjustment
|
(449 | ) | (449 | ) | ||||||||||||||||||||||||
Balance at January 1, 2008,
|
||||||||||||||||||||||||||||
As adjusted
|
$ | 7,148 | $ | - | $ | 90,677 | $ | (6,255 | ) | $ | 21,301 | $ | (5,891 | ) | $ | 106,980 | ||||||||||||
Comprehensive Income:
|
||||||||||||||||||||||||||||
Net Income 2008
|
10,559 | 10,559 | ||||||||||||||||||||||||||
Unrealized Holding Gains on
|
||||||||||||||||||||||||||||
Securities Arising During the
|
||||||||||||||||||||||||||||
Period (Net of Income Tax
|
||||||||||||||||||||||||||||
Benefit of $1,740)
|
(8,353 | ) | ||||||||||||||||||||||||||
Less: Reclassification
|
||||||||||||||||||||||||||||
Adjustment for Gains
|
||||||||||||||||||||||||||||
Included in Net Income (Net
|
||||||||||||||||||||||||||||
of Income Tax Expense
|
||||||||||||||||||||||||||||
of $169)
|
314 | |||||||||||||||||||||||||||
Less: Reclassification
|
||||||||||||||||||||||||||||
Adjustment of Amortization of
|
||||||||||||||||||||||||||||
Accumulated Other
|
||||||||||||||||||||||||||||
Comprehensive Income
|
123 | |||||||||||||||||||||||||||
Net Unrealized Holding
|
||||||||||||||||||||||||||||
Gains on Securities Arising
|
||||||||||||||||||||||||||||
During the Period (Net of
|
||||||||||||||||||||||||||||
Income Tax Benefit of $1,571)
|
(8,790 | ) | (8,790 | ) | ||||||||||||||||||||||||
Pension Costs (Net of Tax
|
||||||||||||||||||||||||||||
Of $875)
|
1,267 | 1,267 | ||||||||||||||||||||||||||
Total Comprehensive Income
|
3,036 | |||||||||||||||||||||||||||
Cash Dividends Declared on
|
||||||||||||||||||||||||||||
Common Stock
|
(3,977 | ) | (3,977 | ) | ||||||||||||||||||||||||
Common Stock Option Expense
|
554 | 554 | ||||||||||||||||||||||||||
Common Stock Options
|
||||||||||||||||||||||||||||
Exercised
|
39 | 803 | 842 | |||||||||||||||||||||||||
Increase in Treasury Shares
|
||||||||||||||||||||||||||||
Associated with Common
|
||||||||||||||||||||||||||||
Stock Options Exercised/
|
||||||||||||||||||||||||||||
Purchase of Treasury Stock
|
(1,583 | ) | (1,583 | ) | ||||||||||||||||||||||||
Balance at September 30, 2008
|
||||||||||||||||||||||||||||
8,702,786 Shares Outstanding
|
$ | 7,187 | $ | - | $ | 92,034 | $ | (7,838 | ) | $ | 27,883 | $ | (13,414 | ) | $ | 105,852 |
Nine Months Ended September 30,
|
||||||||
2009
|
2008
|
|||||||
OPERATING ACTIVITIES:
|
||||||||
Net income:
|
$ | 5,724 | $ | 10,559 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
1,794 | 1,702 | ||||||
Amortization of premium and accretion of discount on securities, net
|
(21 | ) | 128 | |||||
Provision for loan losses
|
6,750 | 1,800 | ||||||
Provision for other real estate owned losses
|
640 | - | ||||||
Provision for deferred taxes
|
989 | - | ||||||
Stock-based compensation
|
230 | 265 | ||||||
Gains on called securities, held to maturity
|
(2 | ) | - | |||||
Gains on security sales, available for sale
|
(109 | ) | (483 | ) | ||||
Loans originated for sale
|
(39,008 | ) | (8,759 | ) | ||||
Proceeds from sales of loans
|
39,541 | 8,863 | ||||||
Gains on loans sold
|
(533 | ) | (104 | ) | ||||
Gain on sale of other real estate owned
|
(16 | ) | 7 | |||||
Loss on disposal of fixed assets
|
13 | 153 | ||||||
Increase in cash surrender value of life insurance, net
|
(607 | ) | (775 | ) | ||||
(Increase)/decrease in accrued interest receivable
|
(1,242 | ) | 238 | |||||
(Increase)/decrease in other assets
|
(7,044 | ) | (403 | ) | ||||
(Decrease) in accrued expenses and other liabilities
|
(1,588 | ) | (5,758 | ) | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
5,511 | 7,433 | ||||||
INVESTING ACTIVITIES:
|
||||||||
Proceeds from maturities of investment securities
|
7,376 | 6,817 | ||||||
Proceeds from maturities of securities available for sale
|
29,282 | 35,045 | ||||||
Proceeds from calls of investment securities
|
759 | 593 | ||||||
Proceeds from calls of securities available for sale
|
900 | 28,477 | ||||||
Proceeds from sales of securities available for sale
|
538 | 7,642 | ||||||
Purchase of investment securities
|
(43,806 | ) | - | |||||
Purchase of securities available for sale
|
(104,198 | ) | (45,530 | ) | ||||
Purchase of life insurance
|
- | (5,000 | ) | |||||
Net decrease/(increase) in loans
|
41,155 | (57,143 | ) | |||||
Proceeds from sales of other real estate owned
|
262 | 514 | ||||||
Purchases of premises and equipment
|
(2,884 | ) | (2,090 | ) | ||||
Disposal of premises and equipment
|
2 | 32 | ||||||
NET CASH USED IN INVESTING ACTIVITIES
|
(70,614 | ) | (30,643 | ) | ||||
FINANCING ACTIVITIES:
|
||||||||
Net increase/(decrease) in deposits
|
87,970 | (19,282 | ) | |||||
Net (decrease)/increase in other borrowings
|
(15,250 | ) | 39,350 | |||||
Proceeds from Federal Home Loan Bank advances
|
- | 12,000 | ||||||
Repayments of Federal Home Loan Bank advances
|
(2,933 | ) | (1,115 | ) | ||||
Gross proceeds from preferred stock and warrants
|
28,685 | - | ||||||
Costs related to issuance of preferred stock
|
(112 | ) | - | |||||
Cash dividends paid on preferred stock
|
(860 | ) | - | |||||
Cash dividends paid on common stock
|
(3,069 | ) | (3,981 | ) | ||||
Tax benefit on stock option exercises
|
166 | 289 | ||||||
Exercise of stock options
|
1,108 | 843 | ||||||
Sales of Shares (DRIP Program)
|
22 | - | ||||||
Increase in treasury shares associated with common stock options
|
||||||||
exercised/purchase of treasury shares
|
(1,094 | ) | (1,583 | ) | ||||
NET CASH PROVIDED BY FINANCING ACTIVITIES
|
94,633 | 26,521 | ||||||
Net increase/(decrease) in cash and cash equivalents
|
29,530 | 3,311 | ||||||
Cash and cash equivalents at beginning of period
|
26,889 | 28,187 | ||||||
Cash and cash equivalents at end of period
|
$ | 56,419 | $ | 31,498 | ||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$ | 14,856 | $ | 23,232 | ||||
Income taxes
|
3,993 | 6,881 | ||||||
Transfer of loans to Other Real Estate Owned
|
355 | - | ||||||
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, 2008
|
629,591 | $ | 12.97-$31.60 | $ | 24.20 | |||||||||||
Granted
|
6,480 | 13.46-24.14 | 19.01 | |||||||||||||
Exercised
|
(63,921 | ) | 14.93-17.77 | 17.33 | ||||||||||||
Forfeited
|
(17,072 | ) | 12.97-28.10 | 24.01 | ||||||||||||
Balance, September 30, 2009
|
555,078 | $ | 12.97-$31.60 | $ | 24.93 | $ | 65 | |||||||||
Vested and Expected to Vest (1)
|
548,462 | $ | 13.46-$31.60 | $ | 24.95 | $ | 65 | |||||||||
Exercisable at September 30, 2009
|
449,475 | $ | 12.97-$31.43 | $ | 24.99 | $ | 64 |
(1)
|
The difference between the shares which are exercisable (fully vested) and those which are expected to vest is due to anticipated forfeitures.
|
2009
|
2008
|
|||||||
Dividend yield
|
2.35 | % | 2.40 | % | ||||
Expected volatility
|
51 | % | 50 | % | ||||
Expected life
|
7 years
|
7 years
|
||||||
Risk-free interest rate
|
2.30 | % | 3.81 | % |
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
(In Thousands, except per share data)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Net Income to Common Shareholders
|
$ | 882 | $ | 3,517 | $ | 4,661 | $ | 10,559 | ||||||||
Basic Weighted-Average Common
|
||||||||||||||||
Shares Outstanding
|
8,715,549 | 8,702,106 | 8,713,662 | 8,708,658 | ||||||||||||
Plus: Common Stock Equivalents
|
58,325 | 111,221 | 60,451 | 103,763 | ||||||||||||
Diluted Weighted-Average Common
|
||||||||||||||||
Shares Outstanding
|
8,773,874 | 8,813,327 | 8,774,113 | 8,812,421 | ||||||||||||
Net Income Per Common Share
|
||||||||||||||||
Basic
|
$ | 0.10 | $ | 0.40 | $ | 0.53 | $ | 1.21 | ||||||||
Diluted
|
0.10 | 0.40 | 0.53 | 1.20 |
September 30,
|
December 31,
|
|||||||
(In thousands)
|
2009
|
2008
|
||||||
Residential mortgage
|
$ | 466,601 | $ | 505,150 | ||||
Commercial mortgage
|
279,336 | 274,640 | ||||||
Commercial loans
|
129,671 | 143,188 | ||||||
Construction loans
|
65,760 | 66,785 | ||||||
Consumer loans
|
26,571 | 29,789 | ||||||
Home equity loans
|
38,450 | 31,054 | ||||||
Other loans
|
1,592 | 2,376 | ||||||
Total loans
|
$ | 1,007,981 | $ | 1,052,982 |
September 30, 2009
|
||||||||||||||||
Gross
|
Gross
|
Approximate
|
||||||||||||||
Carrying
|
Unrecognized
|
Unrecognized
|
Fair
|
|||||||||||||
(In Thousands)
|
Amount
|
Gains
|
Losses
|
Value
|
||||||||||||
U.S. Treasury
|
$ | 5,000 | $ | 11 | $ | - | $ | 5,011 | ||||||||
Mortgage-Backed Securities
|
39,499 | 715 | (20 | ) | 40,194 | |||||||||||
State and Political Subdivisions
|
32,165 | 481 | - | 32,646 | ||||||||||||
Trust Preferred Pooled Securities
|
10,039 | - | (1,192 | ) | 8,847 | |||||||||||
Total
|
$ | 86,703 | $ | 1,207 | $ | (1,212 | ) | $ | 86,698 |
December 31, 2008
|
||||||||||||||||
Gross
|
Gross
|
Approximate
|
||||||||||||||
Carrying
|
Unrecognized
|
Unrecognized
|
Fair
|
|||||||||||||
(In Thousands)
|
Amount
|
Gains
|
Losses
|
Value
|
||||||||||||
U.S. Treasury
|
$ | 500 | $ | 14 | $ | - | $ | 514 | ||||||||
Mortgage-Backed Securities
|
10,007 | 214 | (34 | ) | 10,187 | |||||||||||
State and Political Subdivisions
|
29,670 | 257 | (7 | ) | 29,920 | |||||||||||
Trust Preferred Pooled Securities
|
11,554 | - | - | 11,554 | ||||||||||||
Total
|
$ | 51,731 | $ | 485 | $ | (41 | ) | $ | 52,175 |
September 30, 2009
|
||||||||||||||||||||||||
Duration of Unrealized Loss
|
||||||||||||||||||||||||
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Approximate
|
Approximate
|
Approximate
|
||||||||||||||||||||||
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
|||||||||||||||||||
(In Thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
Mortgage-Backed
|
||||||||||||||||||||||||
Securities
|
$ | 7,465 | $ | (19 | ) | $ | 13 | $ | (1 | ) | $ | 7,478 | $ | (20 | ) | |||||||||
Trust Preferred
|
||||||||||||||||||||||||
Securities
|
- | - | 649 | (1,192 | ) | 649 | (1,192 | ) | ||||||||||||||||
Total
|
$ | 7,465 | $ | (19 | ) | $ | 662 | $ | (1,193 | ) | $ | 8,127 | $ | (1,212 | ) |
December 31, 2008
|
||||||||||||||||||||||||
Duration of Unrealized Loss
|
||||||||||||||||||||||||
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Approximate
|
Approximate
|
Approximate
|
||||||||||||||||||||||
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
Fair
|
Unrecognized
|
|||||||||||||||||||
(In Thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
Mortgage-Backed
|
||||||||||||||||||||||||
Securities
|
$ | 1,736 | $ | (34 | ) | $ | - | $ | - | $ | 1,736 | $ | (34 | ) | ||||||||||
State and Political
|
||||||||||||||||||||||||
Subdivisions
|
3,146 | (6 | ) | 349 | (1 | ) | 3,495 | (7 | ) | |||||||||||||||
Total
|
$ | 4,882 | $ | (40 | ) | $ | 349 | $ | (1 | ) | $ | 5,231 | $ | (41 | ) |
September 30, 2009
|
||||||||||||||||
Gross
|
Gross
|
Approximate
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(In Thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
U.S. Government-Sponsored
|
||||||||||||||||
Agencies
|
$ | 100,501 | $ | 537 | $ | (1 | ) | $ | 101,037 | |||||||
Mortgage-Backed Securities
|
121,196 | 4,942 | (702 | ) | 125,436 | |||||||||||
State and Political Subdivisions
|
19,564 | 422 | (43 | ) | 19,943 | |||||||||||
Other Securities
|
3,999 | - | (1,137 | ) | 2,862 | |||||||||||
Marketable Equity Securities
|
4,069 | 83 | (644 | ) | 3,508 | |||||||||||
Total
|
$ | 249,329 | $ | 5,984 | $ | (2,527 | ) | $ | 252,786 |
December 31, 2008
|
||||||||||||||||
Gross
|
Gross
|
Approximate
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(In Thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
Mortgage-Backed Securities
|
$ | 146,456 | $ | 2,952 | $ | (3,333 | ) | $ | 146,075 | |||||||
State and Political Subdivisions
|
21,282 | 141 | (431 | ) | 20,992 | |||||||||||
Other Securities
|
4,319 | - | (1,209 | ) | 3,110 | |||||||||||
Marketable Equity Securities
|
4,069 | 15 | (718 | ) | 3,366 | |||||||||||
Total
|
$ | 176,126 | $ | 3,108 | $ | (5,691 | ) | $ | 173,543 |
September 30, 2009
|
||||||||||||||||||||||||
Duration of Unrealized Loss
|
||||||||||||||||||||||||
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Approximate
|
Approximate
|
Approximate
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
(In Thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
U.S. Government-
|
||||||||||||||||||||||||
Sponsored Agencies
|
$ | 5,030 | $ | (1 | ) | $ | - | $ | - | $ | 5,030 | $ | (1 | ) | ||||||||||
Mortgage-Backed
|
||||||||||||||||||||||||
Securities
|
3,596 | (68 | ) | 9,703 | (634 | ) | 13,299 | (702 | ) | |||||||||||||||
State and Political
|
||||||||||||||||||||||||
Subdivisions
|
- | - | 731 | (43 | ) | 731 | (43 | ) | ||||||||||||||||
Other Securities
|
- | - | 1,862 | (1,137 | ) | 1,862 | (1,137 | ) | ||||||||||||||||
Marketable Equity
|
||||||||||||||||||||||||
Securities
|
697 | (332 | ) | 1,828 | (312 | ) | 2,525 | (644 | ) | |||||||||||||||
Total
|
$ | 9,323 | $ | (401 | ) | $ | 14,124 | $ | (2,126 | ) | $ | 23,447 | $ | (2,527 | ) |
December 31, 2008
|
||||||||||||||||||||||||
Duration of Unrealized Loss
|
||||||||||||||||||||||||
Less Than 12 Months
|
12 Months or Longer
|
Total
|
||||||||||||||||||||||
Approximate
|
Approximate
|
Approximate
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
(In Thousands)
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
||||||||||||||||||
U.S. Government-
|
||||||||||||||||||||||||
Sponsored Agencies
|
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Mortgage-Backed
|
||||||||||||||||||||||||
Securities
|
24,019 | (3,157 | ) | 5,354 | (176 | ) | 29,373 | (3,333 | ) | |||||||||||||||
State and Political
|
||||||||||||||||||||||||
Subdivisions
|
7,513 | (431 | ) | - | - | 7,513 | (431 | ) | ||||||||||||||||
Other Securities
|
- | - | 1,790 | (1,209 | ) | 1,790 | (1,209 | ) | ||||||||||||||||
Marketable Equity
|
||||||||||||||||||||||||
Securities
|
1,843 | (366 | ) | 800 | (352 | ) | 2,643 | (718 | ) | |||||||||||||||
Total
|
$ | 33,375 | $ | (3,954 | ) | $ | 7,944 | $ | (1,737 | ) | $ | 41,319 | $ | (5,691 | ) |
(In thousands)
|
||||
2009
|
$ | - | ||
2010
|
12,155 | |||
2011
|
3,000 | |||
2012
|
5,000 | |||
2013
|
1,660 | |||
Over 5 years
|
15,000 | |||
Total
|
$ | 36,815 |
(In thousands)
|
Three Months Ended
September 30,
2008
|
Nine Months Ended
September 30,
2008
|
||||||
Service cost
|
$ | - | $ | 637 | ||||
Interest cost
|
176 | 633 | ||||||
Expected return on plan assets
|
(261 | ) | (839 | ) | ||||
Amortization of:
|
||||||||
Net loss
|
- | 17 | ||||||
Unrecognized remaining net assets
|
- | (3 | ) | |||||
Net periodic (benefit) cost
|
$ | (85 | ) | $ | 445 |
Three Months Ended September 30, 2009
|
||||||||||||
(in thousands)
|
PGB Trust
|
|||||||||||
Banking
|
& Investments
|
Total
|
||||||||||
Net interest income
|
$ | 11,514 | $ | 736 | $ | 12,250 | ||||||
Noninterest income
|
1,088 | 2,247 | 3,335 | |||||||||
Total income
|
12,602 | 2,983 | 15,585 | |||||||||
Provision for loan losses
|
2,750 | - | 2,750 | |||||||||
Salaries and benefits
|
4,509 | 1,113 | 5,622 | |||||||||
Premises and equipment expense
|
1,999 | 186 | 2,185 | |||||||||
Other noninterest expense
|
2,357 | 776 | 3,133 | |||||||||
Total noninterest expense
|
11,615 | 2,075 | 13,690 | |||||||||
Income before income tax expense
|
987 | 908 | 1,895 | |||||||||
Income tax expense
|
303 | 280 | 583 | |||||||||
Net income
|
$ | 684 | $ | 628 | $ | 1,312 |
Three Months Ended September 30, 2008
|
||||||||||||
(in thousands)
|
PGB Trust
|
|||||||||||
Banking
|
& Investments
|
Total
|
||||||||||
Net interest income
|
$ | 11,519 | $ | 634 | $ | 12,153 | ||||||
Noninterest income
|
1,028 | 2,529 | 3,557 | |||||||||
Total income
|
12,547 | 3,163 | 15,710 | |||||||||
Provision for loan losses
|
780 | - | 780 | |||||||||
Salaries and benefits
|
4,343 | 1,166 | 5,509 | |||||||||
Premises and equipment expense
|
1,923 | 193 | 2,116 | |||||||||
Other noninterest expense
|
1,401 | 565 | 1,966 | |||||||||
Total noninterest expense
|
8,447 | 1,924 | 10,371 | |||||||||
Income before income tax expense
|
4,100 | 1,239 | 5,339 | |||||||||
Income tax expense
|
1,405 | 417 | 1,822 | |||||||||
Net income
|
$ | 2,695 | $ | 822 | $ | 3,517 |
Nine Months Ended September 30, 2009
|
||||||||||||
(in thousands)
|
PGB Trust
|
|||||||||||
Banking
|
& Investments
|
Total
|
||||||||||
Net interest income
|
$ | 33,943 | $ | 2,281 | $ | 36,224 | ||||||
Noninterest income
|
3,215 | 7,212 | 10,427 | |||||||||
Total income
|
37,158 | 9,493 | 46,651 | |||||||||
Provision for loan losses
|
6,750 | - | 6,750 | |||||||||
Salaries and benefits
|
13,182 | 3,403 | 16,585 | |||||||||
Premises and equipment expense
|
5,884 | 560 | 6,444 | |||||||||
Other noninterest expense
|
6,534 | 2,095 | 8,629 | |||||||||
Total noninterest expense
|
32,350 | 6,058 | 38,408 | |||||||||
Income before income tax expense
|
4,808 | 3,435 | 8,243 | |||||||||
Income tax expense
|
1,469 | 1,050 | 2,519 | |||||||||
Net income
|
$ | 3,339 | $ | 2,385 | $ | 5,724 | ||||||
Total assets at period end
|
$ | 1,485,978 | $ | 1,701 | $ | 1,487,679 |
Nine Months Ended September 30, 2008
|
||||||||||||
(in thousands)
|
PGB Trust
|
|||||||||||
Banking
|
& Investments
|
Total
|
||||||||||
Net interest income
|
$ | 31,953 | $ | 2,131 | $ | 34,084 | ||||||
Noninterest income
|
3,166 | 7,781 | 10,947 | |||||||||
Total income
|
35,119 | 9,912 | 45,031 | |||||||||
Provision for loan losses
|
1,800 | - | 1,800 | |||||||||
Salaries and benefits
|
12,082 | 3,171 | 15,253 | |||||||||
Premises and equipment expense
|
5,684 | 580 | 6,264 | |||||||||
Other noninterest expense
|
3,940 | 1,872 | 5,812 | |||||||||
Total noninterest expense
|
23,506 | 5,623 | 29,129 | |||||||||
Income before income tax expense
|
11,613 | 4,289 | 15,902 | |||||||||
Income tax expense
|
3,910 | 1,433 | 5,343 | |||||||||
Net income
|
$ | 7,703 | $ | 2,856 | $ | 10,559 | ||||||
Total assets at period end
|
$ | 1,367,889 | $ | 1,009 | $ | 1,368,898 |
September 30, 2009
|
December 31, 2008
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
(In Thousands)
|
Amount
|
Value
|
Amount
|
Value
|
||||||||||||
Financial Assets:
|
||||||||||||||||
Cash and Cash Equivalents
|
$ | 56,419 | $ | 56,419 | $ | 26,889 | $ | 26,889 | ||||||||
Investment Securities, Held to Maturity
|
86,703 | 86,698 | 51,731 | 52,175 | ||||||||||||
Securities Available for Sale
|
252,786 | 252,786 | 173,543 | 173,543 | ||||||||||||
FHLB and FRB Stock
|
5,329 | 5,329 | 4,902 | 4,902 | ||||||||||||
Loans, Net of Allowance for
|
||||||||||||||||
Loan Losses
|
995,034 | 1,008,716 | 1,043,294 | 1,052,320 | ||||||||||||
Financial Liabilities:
|
||||||||||||||||
Deposits
|
1,325,858 | 1,329,376 | 1,237,888 | 1,243,230 | ||||||||||||
Overnight Borrowings
|
- | - | 15,250 | 15,250 | ||||||||||||
Federal Home Loan Bank Advances
|
36,815 | 38,388 | 39,748 | 41,310 |
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 Using
|
||||||||||||||||
Quoted
|
||||||||||||||||
Prices in
|
||||||||||||||||
Active
|
||||||||||||||||
Markets
|
Significant
|
|||||||||||||||
For
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||
September 30,
2009 |
||||||||||||||||
Assets:
|
||||||||||||||||
U.S. Government-Sponsored
|
||||||||||||||||
Agencies
|
$ | 101,037 | $ | - | $ | 101,037 | $ | - | ||||||||
Mortgage-Backed Securities
|
125,436 | - | 125,436 | - | ||||||||||||
State and Political Subdivisions
|
19,943 | - | 19,943 | - | ||||||||||||
Other Securities
|
2,862 | - | 2,862 | - | ||||||||||||
Marketable Equity Securities
|
3,508 | 3,508 | - | - | ||||||||||||
Total
|
$ | 252,786 | $ | 3,508 | $ | 249,278 | $ | - | ||||||||
December 31,
2008 |
||||||||||||||||
Assets:
|
||||||||||||||||
Mortgage-Backed Securities
|
$ | 146,075 | $ | - | $ | 146,075 | $ | - | ||||||||
State and Political Subdivisions
|
20,992 | - | 20,992 | - | ||||||||||||
Other Securities
|
3,110 | - | 3,110 | - | ||||||||||||
Marketable Equity Securities
|
3,366 | 3,366 | - | - | ||||||||||||
Total
|
$ | 173,543 | $ | 3,366 | $ | 170,177 | $ | - |
Fair Value Measurements Using
|
||||||||||||||||
Quoted
|
||||||||||||||||
Prices in
|
||||||||||||||||
Active
|
||||||||||||||||
Markets
|
Significant
|
|||||||||||||||
For
|
Other
|
Significant
|
||||||||||||||
Identical
|
Observable
|
Unobservable
|
||||||||||||||
Assets
|
Inputs
|
Inputs
|
||||||||||||||
(Level 1)
|
(Level 2)
|
(Level 3)
|
||||||||||||||
September 30,
2009
|
||||||||||||||||
Assets:
|
||||||||||||||||
Impaired Loans
|
$ | 37,961 | $ | - | $ | - | $ | 37,961 | ||||||||
Other Real Estate Owned
|
680 | - | - | 680 | ||||||||||||
December 31,
2008
|
||||||||||||||||
Assets:
|
||||||||||||||||
Trust Preferred Pooled
|
||||||||||||||||
Securities
|
$ | 11,554 | $ | - | $ | - | $ | 11,554 | ||||||||
Impaired Loans
|
14,600 | - | - | 14,600 |
September 30, 2009
|
September 30, 2008
|
|||||||||||||||||||||||
Average
|
Income/
|
Average
|
Income/
|
|||||||||||||||||||||
Balance
|
Expense
|
Yield
|
Balance
|
Expense
|
Yield
|
|||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Interest-earnings assets:
|
||||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||||
Taxable (1)
|
$ | 275,325 | $ | 2,462 | 3.58 | % | $ | 202,248 | $ | 2,632 | 5.21 | % | ||||||||||||
Tax-exempt (1) (2)
|
51,853 | 626 | 4.84 | 44,121 | 643 | 5.83 | ||||||||||||||||||
Loans (2) (3)
|
1,009,348 | 13,521 | 5.36 | 1,019,791 | 14,903 | 5.85 | ||||||||||||||||||
Federal funds sold
|
201 | - | 0.20 | 716 | 3 | 1.94 | ||||||||||||||||||
Interest-earning deposits
|
49,639 | 25 | 0.20 | 2,085 | 10 | 1.91 | ||||||||||||||||||
Total interest-earning assets
|
1,386,366 | $ | 16,634 | 4.80 | % | 1,268,961 | $ | 18,191 | 5.73 | % | ||||||||||||||
Noninterest -earning assets:
|
||||||||||||||||||||||||
Cash and due from banks
|
8,301 | 20,586 | ||||||||||||||||||||||
Allowance for loan losses
|
(11,140 | ) | (8,313 | ) | ||||||||||||||||||||
Premises and equipment
|
27,705 | 26,507 | ||||||||||||||||||||||
Other assets
|
58,157 | 41,338 | ||||||||||||||||||||||
Total noninterest-earning assets
|
83,023 | 80,118 | ||||||||||||||||||||||
Total assets
|
$ | 1,469,389 | $ | 1,349,079 | ||||||||||||||||||||
LIABILITIES:
|
||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
Checking
|
$ | 216,646 | $ | 405 | 0.75 | % | $ | 146,673 | $ | 309 | 0.84 | % | ||||||||||||
Money markets
|
445,839 | 1,108 | 0.99 | 397,778 | 1,896 | 1.91 | ||||||||||||||||||
Savings
|
72,126 | 85 | 0.47 | 66,586 | 102 | 0.61 | ||||||||||||||||||
Certificates of deposit
|
374,548 | 2,195 | 2.34 | 372,465 | 2,991 | 3.21 | ||||||||||||||||||
Total interest-bearing deposits
|
1,109,159 | 3,793 | 1.37 | 983,502 | 5,298 | 2.15 | ||||||||||||||||||
Borrowings
|
36,923 | 336 | 3.64 | 58,076 | 461 | 3.18 | ||||||||||||||||||
Total interest-bearing liabilities
|
1,146,082 | 4,129 | 1.44 | 1,041,578 | 5,759 | 2.21 | ||||||||||||||||||
Noninterest bearing liabilities
|
||||||||||||||||||||||||
Demand deposits
|
198,800 | 193,050 | ||||||||||||||||||||||
Accrued expenses and
|
||||||||||||||||||||||||
other liabilities
|
6,579 | 9,951 | ||||||||||||||||||||||
Total noninterest-bearing
|
||||||||||||||||||||||||
liabilities
|
205,379 | 203,001 | ||||||||||||||||||||||
Shareholders’ equity
|
117,928 | 104,500 | ||||||||||||||||||||||
Total liabilities and
|
||||||||||||||||||||||||
shareholders’ equity
|
$ | 1,469,389 | $ | 1,349,079 | ||||||||||||||||||||
Net Interest income
|
||||||||||||||||||||||||
(tax-equivalent basis)
|
12,505 | 12,432 | ||||||||||||||||||||||
Net interest spread
|
3.36 | % | 3.52 | % | ||||||||||||||||||||
Net interest margin (4)
|
3.61 | % | 3.92 | % | ||||||||||||||||||||
Tax equivalent adjustment
|
(255 | ) | (279 | ) | ||||||||||||||||||||
Net interest income
|
$ | 12,250 | $ | 12,153 |
|
(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.
|
September 30, 2009
|
September 30, 2008
|
|||||||||||||||||||||||
Average
|
Income/
|
Average
|
Income/
|
|||||||||||||||||||||
Balance
|
Expense
|
Yield
|
Balance
|
Expense
|
Yield
|
|||||||||||||||||||
ASSETS:
|
||||||||||||||||||||||||
Interest-earnings assets:
|
||||||||||||||||||||||||
Investments:
|
||||||||||||||||||||||||
Taxable (1)
|
$ | 228,359 | $ | 6,887 | 4.02 | % | $ | 220,120 | $ | 8,317 | 5.04 | % | ||||||||||||
Tax-exempt (1) (2)
|
50,293 | 1,898 | 5.03 | 53,153 | 2,248 | 5.64 | ||||||||||||||||||
Loans (2) (3)
|
1,029,833 | 41,825 | 5.42 | 998,228 | 43,917 | 5.87 | ||||||||||||||||||
Federal funds sold
|
200 | - | 0.20 | 4,891 | 115 | 3.14 | ||||||||||||||||||
Interest-earning deposits
|
47,479 | 43 | 0.12 | 8,081 | 134 | 2.20 | ||||||||||||||||||
Total interest-earning assets
|
1,356,164 | $ | 50,653 | 4.98 | % | 1,284,473 | $ | 54,731 | 5.68 | % | ||||||||||||||
Noninterest -earning assets:
|
||||||||||||||||||||||||
Cash and due from banks
|
7,441 | 20,708 | ||||||||||||||||||||||
Allowance for loan losses
|
(10,207 | ) | (7,850 | ) | ||||||||||||||||||||
Premises and equipment
|
27,153 | 26,488 | ||||||||||||||||||||||
Other assets
|
56,173 | 31,954 | ||||||||||||||||||||||
Total noninterest-earning assets
|
80,560 | 71,300 | ||||||||||||||||||||||
Total assets
|
$ | 1,436,724 | $ | 1,355,773 | ||||||||||||||||||||
LIABILITIES:
|
||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
Checking
|
$ | 192,822 | $ | 1,050 | 0.73 | % | $ | 139,945 | $ | 733 | 0.70 | % | ||||||||||||
Money markets
|
414,054 | 3,407 | 1.10 | 399,367 | 6,392 | 2.13 | ||||||||||||||||||
Savings
|
70,353 | 244 | 0.46 | 65,780 | 301 | 0.61 | ||||||||||||||||||
Certificates of deposit
|
402,500 | 7,923 | 2.62 | 391,047 | 11,137 | 3.80 | ||||||||||||||||||
Total interest-bearing deposits
|
1,079,729 | 12,624 | 1.56 | 996,139 | 18,563 | 2.48 | ||||||||||||||||||
Borrowings
|
39,147 | 1,035 | 3.52 | 48,390 | 1,122 | 3.37 | ||||||||||||||||||
Total interest-bearing liabilities
|
1,118,876 | 13,659 | 1.63 | 1,044,529 | 19,785 | 2.53 | ||||||||||||||||||
Noninterest bearing liabilities
|
||||||||||||||||||||||||
Demand deposits
|
196,201 | 192,599 | ||||||||||||||||||||||
Accrued expenses and
|
||||||||||||||||||||||||
other liabilities
|
6,310 | 12,472 | ||||||||||||||||||||||
Total noninterest-bearing
|
||||||||||||||||||||||||
liabilities
|
202,511 | 205,071 | ||||||||||||||||||||||
Shareholders’ equity
|
115,337 | 106,173 | ||||||||||||||||||||||
Total liabilities and
|
||||||||||||||||||||||||
shareholders’ equity
|
$ | 1,436,724 | $ | 1,355,773 | ||||||||||||||||||||
Net Interest income
|
||||||||||||||||||||||||
(tax-equivalent basis)
|
36,994 | 34,946 | ||||||||||||||||||||||
Net interest spread
|
3.35 | % | 3.15 | % | ||||||||||||||||||||
Net interest margin (4)
|
3.64 | % | 3.63 | % | ||||||||||||||||||||
Tax equivalent adjustment
|
(770 | ) | (862 | ) | ||||||||||||||||||||
Net interest income
|
$ | 36,224 | $ | 34,084 |
(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
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
(In thousands)
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Salaries and employee benefits
|
$ | 5,622 | $ | 5,509 | 16,585 | 15,253 | ||||||||||
Premises and equipment
|
2,185 | 2,116 | 6,444 | 6,264 | ||||||||||||
FDIC assessment
|
724 | 211 | 2,475 | 374 | ||||||||||||
Provision for losses on OREO
|
375 | - | 640 | - | ||||||||||||
Professional and legal fees
|
368 | 269 | 1,062 | 889 | ||||||||||||
Advertising
|
221 | 254 | 632 | 787 | ||||||||||||
Trust department expense
|
197 | 153 | 559 | 490 | ||||||||||||
Telephone
|
143 | 121 | 394 | 350 | ||||||||||||
Stationery and supplies
|
127 | 114 | 357 | 355 | ||||||||||||
Postage
|
84 | 76 | 281 | 273 | ||||||||||||
Other expense
|
894 | 768 | 2,229 | 2,294 | ||||||||||||
Total other expense
|
$ | 10,940 | $ | 9,591 | 31,658 | 27,329 |
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
2009
|
2009
|
2009
|
2008
|
2008
|
||||||||||||||||
Loans past due over 90 days
|
||||||||||||||||||||
and still accruing
|
$ | 1,118 | $ | 104 | $ | - | $ | - | $ | - | ||||||||||
Non-accrual loans
|
13,082 | 12,998 | 11,139 | 5,393 | 3,804 | |||||||||||||||
Other real estate owned
|
680 | 700 | 965 | 1,211 | 1,211 | |||||||||||||||
Total non-performing assets
|
$ | 14,880 | $ | 13,802 | $ | 12,104 | $ | 6,604 | $ | 5,015 | ||||||||||
Troubled debt restructured loans
|
$ | 18,671 | $ | 7,766 | $ | - | $ | - | $ | - | ||||||||||
Non-performing loans as a % of
|
||||||||||||||||||||
total loans
|
1.41 | % | 1.28 | % | 1.07 | % | 0.51 | % | 0.37 | % | ||||||||||
Non-performing assets as a % of
|
||||||||||||||||||||
total assets
|
1.00 | % | 0.95 | % | 0.85 | % | 0.48 | % | 0.37 | % | ||||||||||
Non-performing assets as a % of
|
||||||||||||||||||||
total loans plus other real
|
||||||||||||||||||||
estate owned
|
1.48 | % | 1.35 | % | 1.16 | % | 0.63 | % | 0.48 | % | ||||||||||
Allowance for loan losses as a %
|
||||||||||||||||||||
of total loans
|
1.28 | % | 1.08 | % | 0.94 | % | 0.92 | % | 0.88 | % | ||||||||||
Allowance for loan losses as a %
|
||||||||||||||||||||
of non-performing loans
|
91.18 | % | 84.37 | % | 87.64 | % | 179.64 | % | 238.91 | % |
(In thousands)
|
2009
|
2008
|
||||||
Balance, January 1,
|
$ | 9,688 | $ | 7,500 | ||||
Provision charged to expense
|
6,750 | 1,800 | ||||||
Charge-offs
|
(3,550 | ) | (239 | ) | ||||
Recoveries
|
59 | 27 | ||||||
Balance, September 30,
|
$ | 12,947 | $ | 9,088 |
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
2009
|
2009
|
2009
|
2008
|
2008
|
||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||
Beginning of period
|
$ | 11,054 | $ | 9,762 | $ | 9,688 | $ | 9,088 | $ | 8,295 | ||||||||||
Provision for loan losses
|
2,750 | 2,000 | 2,000 | 600 | 780 | |||||||||||||||
Charge-offs, net
|
(857 | ) | (708 | ) | (1,926 | ) | - | 13 | ||||||||||||
End of period
|
$ | 12,947 | $ | 11,054 | $ | 9,762 | $ | 9,688 | $ | 9,088 |
3
|
Articles of Incorporation and By-Laws:
|
|
A. Certificate of Incorporation of the Registrant, as amended.
|
||
B. By-Laws of the Registrant, incorporated herein by reference to the Registrant’s Current Report on Form 8-K filed on April 23, 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 Jeffrey J. Carfora, 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 Jeffrey J. Carfora, Chief Financial Officer of the Corporation.
|
PEAPACK-GLADSTONE FINANCIAL CORPORATION
|
|
(Registrant)
|
|
DATE: November 9, 2009
|
By: /s/ Frank A. Kissel
|
Frank A. Kissel
|
|
Chairman of the Board and Chief Executive Officer
|
|
DATE: November 9, 2009
|
By: /s/ Jeffrey J. Carfora
|
Jeffrey J. Carfora
|
|
Executive Vice President and Chief Financial Officer and
|
|
Chief Accounting Officer
|
Number
|
Description
|
|
3
|
Articles of Incorporation and By-Laws:
|
|
A. Certificate of Incorporation of the Registrant, as amended.
|
||
B. By-Laws of the Registrant, incorporated herein by reference to the Registrant’s Current Report on Form 8-K filed on April 23, 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 Jeffrey J. Carfora, 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 Jeffrey J. Carfora, Chief Financial Officer of the Corporation.
|
Name
|
Address
|
Anthony J. Consi, II
|
158 Route 206 North
|
Gladstone, NJ 07934
|
|
Pamela Hill
|
158 Route 206 North
|
Gladstone, NJ 07934
|
|
Frank A. Kissel
|
158 Route 206 North
|
Gladstone, NJ 07934
|
|
John D. Kissel
|
158 Route 206 North
|
Gladstone, NJ 07934
|
|
James R. Lamb
|
158 Route 206 North
|
Gladstone, NJ 07934
|
|
Edward A. Merton
|
158 Route 206 North
|
Gladstone, NJ 07934
|
|
F. Duffield Meyercord
|
158 Route 206 North
|
Gladstone, NJ 07934
|
|
John R. Mulcahy
|
158 Route 206 North
|
Gladstone, NJ 07934
|
|
Robert M. Rogers
|
158 Route 206 North
|
Gladstone, NJ 07934
|
|
Philip W. Smith, III
|
158 Route 206 North
|
Gladstone, NJ 07934
|
|
Craig C. Spengeman
|
158 Route 206 North
|
Gladstone, NJ 07934
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Peapack-Gladstone Financial Corporation;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of director (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: November 9, 2009
|
By:
|
/s/ Frank A. Kissel
|
Name:
|
Frank A. Kissel
|
|
Title:
|
Chairman of the Board and
|
|
Chief Executive Officer
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Peapack-Gladstone Financial Corporation;
|
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of director (or persons performing the equivalent functions):
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: November 9, 2009
|
By:
|
/s/ Jeffrey J. Carfora
|
Name:
|
Jeffrey J. Carfora
|
|
Title:
|
Executive Vice President and
|
|
Chief Financial Officer and
|
||
Chief Accounting Officer
|
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.
|
/s/ Frank A. Kissel
|
Name: Frank A. Kissel
|
Title: Chief Executive Officer
|
Date: November 9, 2009
|
/s/ Jeffrey J. Carfora
|
Name: Jeffrey J. Carfora
|
Title: Chief Financial Officer and Chief Accounting Officer
|
Date: November 9, 2009
|