BEDMINSTER, NJ , April 25, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the “Company”) announces its first quarter 2023 results.

This earnings release should be read in conjunction with the Company’s Q1 2023 Investor Update, a copy of which is available on our website at www.pgbank.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

The Company recorded total revenue of $62.0 million, net income of $18.4 million and diluted earnings per share (“EPS”) of $1.01 for the quarter ended March 31, 2023, compared to revenue of $54.3 million, net income of $13.4 million and diluted EPS of $0.71 for the three months ended March 31, 2022.

The Company’s return on average assets, return on average equity, and return on average tangible equity were 1.16%, 13.50% and 14.78%, respectively, for the quarter ended March 31, 2023. Return on average tangible equity is a non-GAAP financial measure. See the reconciliation tables included in this release.

The March 2023 quarter results reflect improvement in net interest income and net interest margin, which improved by $4.4 million and 19 basis points, respectively, when compared to the first quarter of 2022. On a linked quarter basis, the Company experienced net interest margin compression of 24 basis points resulting in a decline in net interest income of $4.1 million compared to the fourth quarter of 2022. The margin compression was primarily driven by an increase in our cost of funds during the first quarter of 2023, as clients moved funds from noninterest bearing accounts to higher yielding deposit accounts.

Deposits grew by $104 million (8% annualized growth) to $5.3 billion during the first quarter of 2023 compared to $5.2 billion as of December 31, 2022. The Company’s liquidity position also remains strong as on-balance sheet liquidity (investments available for sale, interest-earning deposits and cash) grew to $851 million as of March 31, 2023 driven by an increase in cash balances of $61 million during the first quarter.

Douglas L. Kennedy, President and CEO said, “Our first quarter results demonstrated a strong start to the year for our Company. Despite headwinds facing the industry, we grew deposits, loans, and capital during the first quarter. Liquidity and capital remain strong and I am proud of the strength of our balance sheet. We continue to closely monitor deposit balances and have proactively reached out to clients with larger uninsured balances to discuss alternative solutions if needed, including managing them into fully insured FDIC products. I am pleased with the first quarter results and look forward to successfully navigating these turbulent times as we continue to focus on delivering the highest levels of client service."

During the first quarter of 2023, the Company authorized a new 5% stock repurchase program of up to 890,000 shares. Purchases will be conducted in accordance with SEC Rule 10b-18.

Mr. Kennedy noted, “We believe that repurchasing shares of our common stock at appropriate times will continue to drive additional shareholder value. While this repurchase plan was approved during the first quarter, we will proceed cautiously with regard to capital management as conditions continue to unfold.”

The following are select highlights for the period ended March 31, 2023:

Peapack Private Wealth Management:

• AUM/AUA in our Peapack Private Wealth Management Division totaled $10.4 billion at March 31, 2023.
• Gross new business inflows for Q1 2023 totaled $254 million ($237 million managed).
• Wealth Management fee income of $13.8 million for Q1 2023 comprised 22% of total revenue for the quarter.
  
  

Commercial Banking and Balance Sheet Management:

• The net interest margin ("NIM") improved by 19 basis points in Q1 2023 to 2.88% compared to Q1 2022 and declined 24 basis points when compared to Q4 2022.
• Total deposits grew $104 million (2% linked quarter or 8% annualized) to $5.3 billion from $5.2 billion at December 31, 2022.
• Noninterest-bearing demand deposits declined by $150 million during the first quarter, but still comprised 21% of total deposits as of March 31, 2023.
• Core deposits (which includes noninterest-bearing demand and interest-bearing demand, savings and money market accounts) totaled 92% of total deposits at March 31, 2023.
• Total loans were $5.4 billion at March 31, 2023 reflecting growth of $79 million (1% linked quarter or 6% annualized) when compared to $5.3 billion at December 31, 2022.
• Commercial & industrial lending (“C&I”) loan/lease balances comprised 42% of the total loan portfolio at March 31, 2023.
• Fee income on unused commercial lines of credit totaled $852,000 for Q1 2023.
  
  

Capital Management:

• The Company repurchased 83,014 shares of Company stock for a total cost of $2.9 million during Q1 2023. The Company repurchased 930,977 shares of stock for a total cost of $32.7 million during the year ended December 31, 2022.
• At March 31, 2023, Regulatory Tier 1 Leverage Ratio stood at 11.0% for Peapack-Gladstone Bank (the "Bank") and 9.0% for the Company; and Regulatory Common Equity Tier 1 Ratio (to Risk-Weighted Assets) stood at 13.9% for the Bank and 11.4% for the Company. These ratios are significantly above well capitalized standards, as capital has benefitted from strong net income generation.

Non-Core Items:

The March 2023 quarter included the following items, which management believes are non-core items:

• $209,000 positive fair value adjustment on an equity security held for CRA investment.
• $175,000 expense associated with three retail branch closures.
• $300,000 of restricted stock expense associated with an executive retiring.
• These items increased total revenue by $209,000, reduced net income by $193,000 and EPS by $0.01 for the March 2023 quarter.

SUMMARY INCOME STATEMENT DETAILS:

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

March 2023 Quarter Compared to Prior Year Quarter

		Three Months Ended					Three Months Ended
		March 31,					March 31,				Increase/
(Dollars in millions, except per share data)		2023					2022				(Decrease)
Net interest income		$	43.98				$	39.62			$	4.36				11	%
Wealth management fee income			13.76					14.83				(1.07	)			(7	)
Capital markets activity (A)			0.97					4.65				(3.68	)			(79	)
Other income (B)			3.33					(4.77	)			8.10			N/A
Total other income			18.06					14.71				3.35				23
Operating expenses (C)			35.57					34.17				1.40				4
Pretax income before provision for credit losses			26.47					20.16				6.31				31
Provision for credit losses			1.51					2.37				(0.86	)			(36	)
Pretax income			24.96					17.79				7.17				40
Income tax expense			6.60					4.35				2.25				52
Net income		$	18.36				$	13.44			$	4.92				37	%
Diluted EPS		$	1.01				$	0.71			$	0.30				42	%
Total Revenue (D)		$	62.04				$	54.33			$	7.71				14	%
Return on average assets annualized			1.16	%				0.87	%			0.29
Return on average equity annualized			13.50	%				9.88	%			3.62

(A) Capital markets activity includes fee income from loan level back-to-back swaps, the SBA lending and sale program, corporate advisory and mortgage banking activities.
(B) Other income for the March 2023 and 2022 quarters included a fair value adjustment on a CRA equity security of positive $209,000 and negative $682,000, respectively. Other income for the March 2022 quarter included a $6.6 million loss on sale of securities.
(C) The March 2023 quarter included $300,000 of expense related to accelerated vesting of restricted stock related to one executive and $175,000 of expense associated with three retail branch closures. The March 2022 quarter included $1.5 million of severance expense related to certain staff reorganizations.
(D) Total revenue equals the sum of net interest income plus total other income.

March 2023 Quarter Compared to Linked Quarter

		Three Months Ended				Three Months Ended
		March 31,				December 31,					Increase/
(Dollars in millions, except per share data)		2023				2022					(Decrease)
Net interest income		$	43.98			$	48.04				$	(4.06	)			(8	)%
Wealth management fee income			13.76				12.98					0.78				6
Capital markets activity (A)			0.97				0.95					0.02				2
Other income (B)			3.33				2.88					0.45				16
Total other income			18.06				16.81					1.25				7
Operating expenses (C)			35.57				33.41					2.16				6
Pretax income before provision for credit losses			26.47				31.44					(4.97	)			(16	)
Provision for credit losses			1.51				1.93					(0.42	)			(22	)
Pretax income			24.96				29.51					(4.55	)			(15	)
Income tax expense (D)			6.60				8.93					(2.33	)			(26	)
Net income		$	18.36			$	20.58				$	(2.22	)			(11	)%
Diluted EPS		$	1.01			$	1.12				$	(0.11	)			(10	)%
Total Revenue (E)		$	62.04			$	64.85				$	(2.81	)			(4	)%
Return on average assets annualized			1.16	%			1.33	%				(0.17	)
Return on average equity annualized			13.50	%			15.73	%				(2.23	)

(A) Capital markets activity includes fee income from loan level back-to-back swaps, the SBA lending and sale program, corporate advisory and mortgage banking activities.
(B) Other income for the March 2023 and December 2022 quarters included a fair value adjustment on a CRA equity security of positive $209,000 and $28,000, respectively. Other income for the December 2022 quarter included gain on sale of property of $275,000 and income from life insurance proceeds of $25,000.
(C) The March 2023 quarter included $300,000 of expense related to accelerated vesting of restricted stock related to one executive and $175,000 of expense associated with three retail branch closures. The December 2022 quarter included $200,000 of expense related to accelerated vesting of restricted stock related to one employee.
(D) The three months ended December 31, 2022 included $750,000 of income tax expense (net of Federal benefit) related to the recent approval of legislation that changed the nexus standard for New York City business tax ($563,000 of that amount related to the first nine months of 2022).
(E) Total revenue equals the sum of net interest income plus total other income.

SUPPLEMENTAL QUARTERLY DETAILS:

Peapack Private Wealth Management

AUM/AUA in the Bank’s Peapack Private Wealth Management (“PPWM”) Division totaled $10.4 billion at March 31, 2023. For the March 2023 quarter, PPWM generated $13.8 million in fee income, compared to $13.0 million for the December 31, 2022 quarter and $14.8 million for the March 2022 quarter. The equity market generally improved during Q1 2023, growing 7%, but is still down almost 10% compared to a year ago.

John Babcock, President of Peapack Private Wealth Management noted, “Notwithstanding broad market forces that negatively impacted both the equity and bond markets in 2022, and with economic uncertainty ahead, our business remains sound and we continue to attract new clients as well as additional funds from existing relationships. In Q1 2023, total new accounts and client additions totaled $254 million ($237 million managed), and net flows were positive. As we look ahead in 2023, our new business pipeline is healthy and we remain focused on delivering excellent service and advice to our clients. Our highly skilled wealth management professionals, our fiduciary powers and expertise, our financial planning capabilities and our high-touch client service model distinguishes PPWM in our market and continues to drive our growth and success.”

Loans / Commercial Banking

Total loans were $5.4 billion at March 31, 2023, reflecting growth of $79 million (1% linked quarter or 6% annualized) when compared to $5.3 billion at December 31, 2022, and growth of $230 million (4%) when compared to $5.1 billion at March 31, 2022.

Total C&I loans and leases at March 31, 2023 were $2.3 billion or 42% of the total loan portfolio.

Mr. Kennedy noted, “Our loan growth has historically been strong, however, given economic uncertainty and rising interest rates, we believe loan demand will subside somewhat as we look further into 2023. We began tightening our initial underwriting in anticipation of a potential economic downturn in early 2022. Given the current environment, we believe we will achieve modest loan growth in 2023.”

Mr. Kennedy also noted, “We are proud to have built a leading middle market commercial banking franchise, as evidenced by our C&I Portfolio, Treasury Management services, and Corporate Advisory and SBA businesses. Additionally, we are encouraged by the expansion into the Life Insurance Premium Finance business and believe it will prove to be a safe and profitable business line that aligns with the Company's overall strategy.”

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

The Company’s NII of $44.0 million and NIM of 2.88% for Q1 2023 decreased $4.1 million and 24 basis points from NII of $48.0 million and NIM of 3.12%, for the linked quarter (Q4 2022) and increased $4.4 million and 19 basis points from NII of $39.6 million and NIM of 2.69% for the prior year quarter (Q1 2022). When comparing Q1 2023 to Q4 2022, the Company's net interest income benefitted from the increases in LIBOR and the Prime rate during 2022 and into 2023 increasing the yield on interest earning assets and from an increase of $92 million in the average balance of interest-earning assets. During Q1 2023 the cost of deposits and borrowings has increased at a more rapid pace than our yield on assets as a result of the significant increase in the fed funds rate over the last twelve months. The increase in our deposit betas during Q4 2022 and Q1 2023 has begun to accelerate as the competition for deposit balances intensifies. Interest expense also increased due to an increase of $206 million in the average balance of interest-bearing liabilities.

Funding / Liquidity / Interest Rate Risk Management

The Company actively manages its deposit base to reduce reliance on wholesale funding, volatility, and/or operational risk. Total deposits increased $104 million to $5.3 billion at March 31, 2023 from $5.2 billion at December 31, 2022. The Company saw limited deposit outflows during first quarter with most outflow activity related to larger deposit relationships utilizing their funds for normal business purposes such as deployment of excess liquidity into the equity or treasury markets, asset acquisitions or further investments into their businesses, and tax payments.

Mr. Kennedy noted, "Although we did see minimal outflows associated with clients concerned about deposit insurance, our team actively engaged with many of our deposit customers during the first quarter to discuss any concerns and provide peace of mind regarding the safety and soundness of our institution. Additionally, we migrated $63 million of uninsured deposits into fully-insured FDIC products for those customers that desired that type of protection."

Mr. Kennedy also noted, “92% of our deposits are demand, savings, or money market accounts, and our noninterest bearing deposits comprise 21% of our total deposits. These metrics reflect the core nature of the majority of our deposit base.”

At March 31, 2023, the Company’s balance sheet liquidity (investments available for sale, interest-earning deposits and cash) totaled $851.1 million (or 13% of assets).

The Company maintains additional liquidity resources of approximately $3.3 billion through secured available funding with the Federal Home Loan Bank ($1.5 billion) and secured funding from the Federal Reserve Discount Window ($1.8 billion). The available funding from the Federal Home Loan Bank and the Federal Reserve are secured by the Company’s loan and investment portfolios. In addition, the Company also has access to the Bank Term Funding Program offered by the Federal Reserve Bank for the next twelve months if needed.

Income from Capital Markets Activities

Noninterest income from Capital Markets activities (detailed below) totaled $966,000 for the March 2023 quarter compared to $950,000 for the December 2022 quarter and $4.7 million for the March 2022 quarter. The March 2022 quarter results were driven by $2.8 million in gains on sales of SBA loans and $1.6 million in Corporate Advisory income.

		Three Months Ended				Three Months Ended				Three Months Ended
		March 31,				December 31,				March 31,
(Dollars in thousands, except per share data)		2023				2022				2022
Gain on loans held for sale at fair value (Mortgage banking)		$	21			$	25			$	247
Fee income related to loan level, back-to-back swaps			—				293				—
Gain on sale of SBA loans			865				624				2,844
Corporate advisory fee income			80				8				1,561
Total capital markets activity		$	966			$	950			$	4,652

Other Noninterest Income (other than Wealth Management Fee Income and Income from Capital Markets Activities)        

Other noninterest income was $3.3 million for Q1 2023 compared to $2.9 million for Q4 2022 and $1.8 million for Q1 2022 when excluding the $6.6 million loss on sale of securities. Q1 2023 included $852,000 of unused line fees compared to $732,000 for Q4 2022 and $122,000 for Q1 2022. Q4 2022 included a gain on sale of property of $275,000. Additionally, Q1 2023 included $145,000 of income recorded by the Equipment Finance Division related to equipment transfers to lessees while Q4 2022 and Q1 2022 included $294,000 and $426,000, respectively, of such income. The loss on the sale of securities in Q1 2022 was the result of a strategic decision to reposition the balance sheet.

Operating Expenses

The Company’s total operating expenses were $35.6 million for the first quarter of 2023, compared to $33.4 million for the December 2022 quarter and $34.2 million for the March 2022 quarter. The March 2023 quarter had increased costs related to restricted stock expense associated with additional shares being granted to executives due to performance measures exceeding peers; $300,000 of expense associated with one executive retiring; and $175,000 of expense associated with the closing of three retail branch locations. The March 2023 quarter compared to the March 2022 quarter included increases associated with compensation related to the hiring of more full-time equivalent employees which grew from 478 at March 31, 2022 to 512 at March 31, 2023, as well as normal annual merit increases. The March 2022 quarter included $1.5 million of severance expense associated with certain staff reorganizations within several areas of the bank.

Mr. Kennedy noted, “While we continue to manage expenses closely and prudently, as demonstrated by the three retail branch locations we closed during the first quarter of 2023, we have and will continue to invest in our existing team in order to retain the talent we have acquired. We will also grow and expand our core wealth management and commercial banking businesses, including strategic hires and lift-outs if opportunities arise, and invest in digital and other enhancements to further enhance the client experience.”

Income Taxes

The effective tax rate for the three months ended March 31, 2023 was 26.4%, as compared to 30.3% for the December 2022 quarter and 24.5% for the quarter ended March 31, 2022. The three months ended December 31, 2022 included $750,000 of income tax expense (net of Federal benefit) related to the approval of legislation that changed the nexus standard for New York City business tax ($563,000 of that amount related to the first nine months of 2022). The March 31, 2023 and 2022 quarters benefitted from the vesting of restricted stock at prices higher than grant prices.

Asset Quality / Provision for Credit Losses

Nonperforming assets (which does not include modified loans that are performing in accordance with their terms) were $28.8 million, or 0.44% of total assets at March 31, 2023, as compared to $19.1 million at December 31, 2022. The increase was primarily due to one multifamily relationship of $9.7 million that transferred to a nonaccrual status during the quarter. Loans past due 30 to 89 days and still accruing were $2.8 million, or 0.05% of total loans.

Criticized and classified loans totaled $104.6 million at March 31, 2023, reflecting declines from both March 31, 2022 and December 31, 2022 levels. The Company currently has no loans or leases on deferral and accruing.

For the quarter ended March 31, 2023, the Company’s provision for credit losses was $1.5 million compared to $1.9 million for the December 2022 quarter and $2.4 million for the March 2022 quarter. The provision for credit losses in the March 2023 quarter was driven by loan growth, in addition to specific reserves on two loans that were transferred to non-accrual status during the first quarter.

At March 31, 2023, the allowance for credit losses was $62.3 million (1.16% of total loans), compared to $60.8 million (1.15% of loans) at December 31, 2022, and $58.4 million (1.13% of loans) at March 31, 2022.

Capital

The Company’s capital position during the March 2023 quarter increased as a result of net income of $18.4 million, which was partially offset by the repurchase of 83,014 shares of common stock through the Company’s stock repurchase program at a total cost of $2.9 million and the quarterly dividend of $883,000. Additionally, during the first quarter of 2023 the Company recorded a net gain in accumulated other comprehensive income of $6.8 million ($8.7 million gain related to the available for sale portfolio partially offset by a $1.9 million loss on cash flow hedges) reducing the total accumulated other comprehensive loss amount to $67.4 million as of March 31, 2023 ($72.2 million loss related to the available for sale portfolio partially offset by a $4.8 million gain on the cash flow hedges).

Tangible book value per share improved during Q1 2023 to $28.20 at March 31, 2023 from $27.26 at December 31, 2022. Tangible book value per share is a non-GAAP financial measure. See the reconciliation tables included i this release. The Company’s and Bank’s regulatory capital ratios as of March 31, 2023 remain strong, and generally reflect increases from December 31, 2022 and March 31, 2022 levels. Where applicable, such ratios remain well above regulatory well capitalized standards.

The Company employs quarterly capital stress testing modelling an adverse case and severely adverse case. In the most recently completed stress test (as of December 31, 2022), under the severely adverse case, and no growth scenario, the Bank remains well capitalized over a two-year stress period. With an additional stress overlay impacting the industries most affected by the Pandemic more severely, the Bank still remains well capitalized over the two-year stress period.

On April 24, 2023, the Company declared a cash dividend of $0.05 per share payable on May 22, 2023 to shareholders of record on May 8, 2023.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $6.5 billion and assets under management/administration of $10.4 billion as of March 31, 2023. 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 ability to successfully grow our business and implement our strategic plan, including our ability to generate revenues to offset the increased personnel and other costs related to the strategic plan;
• the impact of anticipated higher operating expenses in 2023 and beyond;
• our ability to successfully integrate wealth management firm acquisitions;
• our ability to manage our growth;
• our ability to successfully integrate our expanded employee base;
• an unexpected decline in the economy, in particular in our New Jersey and New York market areas, including potential recessionary conditions;
• declines in our net interest margin caused by the interest rate environment and/or our highly competitive market;
• declines in the value in our investment portfolio;
• impact from a pandemic event on our business, operations, customers, allowance for credit losses and capital levels;
• the continuing impact of the COVID-19 pandemic on our business and results of operation;
• higher than expected increases in our allowance for credit losses;
• higher than expected increases in loan and lease losses or in the level of delinquent, nonperforming, classified and criticized loans;
• inflation and changes in interest rates, which may adversely impact or margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and lead to higher operating costs;
• decline in real estate values within our market areas;
• legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Basel III and related regulations) that may result in increased compliance costs;
• successful cyberattacks against our IT infrastructure and that of our IT and third-party providers;
• higher than expected FDIC insurance premiums;
• adverse weather conditions;
• the current or anticipated impact of military conflict, terrorism or other geopolitical events;
• our inability to successfully generate new business in new geographic markets;
• a reduction in our lower-cost funding sources;
• changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio;
• our inability to adapt to technological changes;
• claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters;
• our inability to retain key employees;
• demands for loans and deposits in our market areas;
• adverse changes in securities markets;
• changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
• changes in accounting policies and practices; and
• other unexpected material adverse changes in our operations or earnings.

A discussion of these and other factors that could affect our results is included in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2022. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Contact:

Frank A. Cavallaro, SEVP and CFO

Peapack-Gladstone Financial Corporation

T: 908-306-8933

(Tables to follow)

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except per share data)
(Unaudited)

		For the Three Months Ended
		March 31,				Dec 31,				Sept 30,				June 30,				March 31,
		2023				2022				2022				2022				2022
Income Statement Data:
Interest income		$	70,491			$	64,202			$	55,013			$	48,520			$	44,140
Interest expense			26,513				16,162				9,488				5,627				4,518
Net interest income			43,978				48,040				45,525				42,893				39,622
Wealth management fee income			13,762				12,983				12,943				13,891				14,834
Service charges and fees			1,258				1,150				1,060				1,063				952
Bank owned life insurance			297				321				299				310				313
Gain on loans held for sale at fair value (Mortgage banking) (A)			21				25				60				151				247
Gain/(loss) on loans held for sale at lower of cost or fair value			—				—				—				—				—
Fee income related to loan level, back-to-back swaps (A)			—				293				—				—				—
Gain on sale of SBA loans (A)			865				624				622				2,675				2,844
Corporate advisory fee income (A)			80				8				102				33				1,561
Other income			1,567				1,380				1,868				860				1,254
Loss on securities sale, net (B)			—				—				—				—				(6,609	)
Fair value adjustment for CRA equity security			209				28				(571	)			(475	)			(682	)
Total other income			18,059				16,812				16,383				18,508				14,714
Salaries and employee benefits (C)			24,586				22,489				22,656				21,882				22,449
Premises and equipment			4,374				4,898				4,534				4,640				4,647
FDIC insurance expense			711				455				510				503				471
Swap valuation allowance			—				—				—				—				673
Other expenses			5,903				5,570				5,860				5,634				5,929
Total operating expenses			35,574				33,412				33,560				32,659				34,169
Pretax income before provision for credit losses			26,463				31,440				28,348				28,742				20,167
Provision for credit losses			1,513				1,930				599				1,449				2,375
Income before income taxes			24,950				29,510				27,749				27,293				17,792
Income tax expense (D)			6,595				8,931				7,623				7,193				4,351
Net income		$	18,355			$	20,579			$	20,126			$	20,100			$	13,441
Total revenue (E)		$	62,037			$	64,852			$	61,908			$	61,401			$	54,336
Per Common Share Data:
Earnings per share (basic)		$	1.03			$	1.15			$	1.11			$	1.10			$	0.73
Earnings per share (diluted)			1.01				1.12				1.09				1.08				0.71
Weighted average number of common shares outstanding:
Basic			17,841,203				17,915,058				18,072,385				18,325,605				18,339,013
Diluted			18,263,310				18,382,193				18,420,661				18,637,340				18,946,683
Performance Ratios:
Return on average assets annualized (ROAA)			1.16	%			1.33	%			1.30	%			1.30	%			0.87	%
Return on average equity annualized (ROAE)			13.50	%			15.73	%			15.21	%			15.43	%			9.88	%
Return on average tangible common equity annualized (ROATCE) (F)			14.78	%			17.30	%			16.73	%			17.00	%			10.85	%
Net interest margin (tax-equivalent basis)			2.88	%			3.12	%			2.98	%			2.83	%			2.69	%
GAAP efficiency ratio (G)			57.34	%			51.52	%			54.21	%			53.19	%			62.88	%
Operating expenses / average assets annualized			2.26	%			2.15	%			2.17	%			2.11	%			2.22	%

(A) Gain on loans held for sale at fair value (mortgage banking), fee income related to loan level, back-to-back swaps, gain on sale of SBA loans and corporate advisory fee income are all included in “capital markets activity” as referred to within the earnings release.
(B) Loss on sale of securities was a result of a balance sheet repositioning employed in the March 2022 quarter.
(C) The March 2022 quarter included $1.5 million of severance expense related to corporate restructuring.
(D) The three months ended December 31, 2022 included $750,000 income tax expense (net federal benefit) related to a recent New York City nexus determination change which included $563,000 from prior quarters.
(E) Total revenue equals the sum of net interest income plus total other income.
(F) Return on average tangible common equity is calculated by dividing tangible common equity by annualized net income. See Non-GAAP financial measures reconciliation included in these tables.
(G) Calculated as total operating expenses as a percentage of total revenue. For Non-GAAP efficiency ratio, see the Non-GAAP financial measures reconciliation included in these tables.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)

		As of
		March 31,				Dec 31,				Sept 30,				June 30,				March 31,
		2023				2022				2022				2022				2022
ASSETS
Cash and due from banks		$	6,514			$	5,937			$	5,066			$	6,203			$	8,849
Federal funds sold			—				—				—				—				—
Interest-earning deposits			244,779				184,138				103,214				147,222				105,111
Total cash and cash equivalents			251,293				190,075				108,280				153,425				113,960
Securities available for sale			556,266				554,648				497,880				556,791				601,163
Securities held to maturity			111,609				102,291				103,551				105,048				106,816
CRA equity security, at fair value			13,194				12,985				12,957				13,528				14,003
FHLB and FRB stock, at cost (A)			30,338				30,672				14,986				13,710				18,570
Residential mortgage			544,655				525,756				519,088				512,341				513,289
Multifamily mortgage			1,871,387				1,863,915				1,856,675				1,876,783				1,850,097
Commercial mortgage			613,911				624,625				638,903				657,812				669,899
Commercial and industrial loans			2,266,837				2,213,762				2,099,917				2,048,474				2,041,720
Consumer loans			49,002				38,014				37,412				37,675				35,322
Home equity lines of credit			33,294				34,496				36,375				36,023				38,604
Other loans			443				304				259				236				226
Total loans			5,379,529				5,300,872				5,188,629				5,169,344				5,149,157
Less: Allowances for credit losses			62,250				60,829				59,683				59,022				58,386
Net loans			5,317,279				5,240,043				5,128,946				5,110,322				5,090,771
Premises and equipment			23,782				23,831				23,781				22,804				22,960
Other real estate owned			116				116				116				116				—
Accrued interest receivable			19,143				25,157				17,816				23,468				22,890
Bank owned life insurance			47,261				47,147				47,072				46,944				46,805
Goodwill and other intangible assets			46,979				47,333				47,698				48,082				48,471
Finance lease right-of-use assets			2,648				2,835				3,021				3,209				3,395
Operating lease right-of-use assets			12,262				12,873				13,404				14,192				14,725
Due from brokers (B)			—				—				—				—				120,245
Other assets (C)			47,848				63,587				67,753				39,528				30,890
TOTAL ASSETS		$	6,480,018			$	6,353,593			$	6,087,261			$	6,151,167			$	6,255,664
LIABILITIES
Deposits:
Noninterest-bearing demand deposits		$	1,096,549			$	1,246,066			$	1,317,954			$	1,043,225			$	1,023,208
Interest-bearing demand deposits			2,797,493				2,143,611				2,149,629				2,456,988				2,362,987
Savings			132,523				157,338				166,821				168,441				162,116
Money market accounts			873,329				1,228,234				1,178,112				1,217,516				1,304,017
Certificates of deposit – Retail			357,131				318,573				345,047				375,387				384,909
Certificates of deposit – Listing Service			15,922				25,358				30,647				31,348				31,348
Subtotal “customer” deposits			5,272,947				5,119,180				5,188,210				5,292,905				5,268,585
IB Demand – Brokered			10,000				60,000				85,000				85,000				85,000
Certificates of deposit – Brokered			25,895				25,984				25,974				25,963				33,831
Total deposits			5,308,842				5,205,164				5,299,184				5,403,868				5,387,416
Short-term borrowings			378,800				379,530				32,369				—				122,085
Finance lease liability			4,385				4,696				5,003				5,305				5,573
Operating lease liability			13,082				13,704				14,101				14,756				15,155
Subordinated debt, net			133,059				132,987				132,916				132,844				132,772
Due to brokers			8,308				—				—				—				—
Other liabilities (C)			78,584				84,532				88,174				74,070				69,237
TOTAL LIABILITIES			5,925,060				5,820,613				5,571,747				5,630,843				5,732,238
Shareholders’ equity			554,958				532,980				515,514				520,324				523,426
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY		$	6,480,018			$	6,353,593			$	6,087,261			$	6,151,167			$	6,255,664
Assets under management and / or administration at Peapack-Gladstone Bank’s Private Wealth Management Division (market value, not included above-dollars in billions)		$	10.4			$	9.9			$	9.3			$	9.5			$	10.7

(A) FHLB means "Federal Home Loan Bank" and FRB means "Federal Reserve Bank."
(B) Includes $120 million due from FHLB related to securities sales at March 31, 2022. The $120 million received on April 1, 2022, was used to reduce short term borrowings.
(C) The change in other assets and other liabilities was primarily due to the change in the fair value of our back-to-back swap program.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)

		As of
		March 31,				Dec 31,				Sept 30,				June 30,				March 31,
		2023				2022				2022				2022				2022
Asset Quality:
Loans past due over 90 days and still accruing		$	—			$	—			$	—			$	—			$	—
Nonaccrual loans			28,659				18,974				15,724				15,078				15,884
Other real estate owned			116				116				116				116				—
Total nonperforming assets		$	28,775			$	19,090			$	15,840			$	15,194			$	15,884
Nonperforming loans to total loans			0.53	%			0.36	%			0.30	%			0.29	%			0.31	%
Nonperforming assets to total assets			0.44	%			0.30	%			0.26	%			0.25	%			0.25	%
Performing modifications (A)		$	248			$	—			$	—			$	—			$	—
Performing TDRs (B)(C)		$	—			$	965			$	2,761			$	2,272			$	2,375
Loans past due 30 through 89 days and still accruing (D)		$	2,762			$	7,592			$	7,248			$	3,126			$	606
Loans subject to special mention		$	46,566			$	64,842			$	82,107			$	98,787			$	110,252
Classified loans		$	58,010			$	42,985			$	27,507			$	27,167			$	47,386
Individually evaluated loans		$	27,736			$	16,732			$	13,047			$	13,227			$	16,147
Allowance for credit losses ("ACL"):
Beginning of quarter		$	60,829			$	59,683			$	59,022			$	58,386			$	61,697
Day one CECL adjustment			—				—				—				—				(5,536	)
Provision for credit losses (E)			1,464				2,103				665				646				2,489
(Charge-offs)/recoveries, net (F)			(43	)			(957	)			(4	)			(10	)			(264	)
End of quarter		$	62,250			$	60,829			$	59,683			$	59,022			$	58,386
ACL to nonperforming loans			217.21	%			320.59	%			379.57	%			391.44	%			367.58	%
ACL to total loans			1.16	%			1.15	%			1.15	%			1.14	%			1.13	%
General ACL to total loans (G)			1.11	%			1.12	%			1.10	%			1.09	%			1.09	%

(A) Amounts reflect modifications that are paying according to modified terms.
(B) Amounts reflect troubled debt restructurings (“TDRs”) that are paying according to restructured terms.
(C) Excludes TDRs included in nonaccrual loans in the following amounts: $13.4 million at December 31, 2022; $12.9 million at September 30, 2022; $13.5 million at June 30, 2022 and $13.6 million at March 31, 2022. On January 1, 2023, the Company adopted Accounting Standards Update 2022-02, which replaced the accounting and recognition of TDRs.
(D) Includes $4.5 million outstanding to U.S. governmental entities at December 31, 2022.
(E) Provision to roll forward the ACL excludes a provision of $49,000 at March 31, 2023, a credit of $173,000 at December 31, 2022, a credit of $66,000 at September 30, 2022, a provision of $803,000 at June 30, 2022 and a credit of $114,000 at March 31, 2022 related to off-balance sheet commitments.
(F) Net charge-offs for the quarter ended December 31, 2022 included a charge-off of $1.2 million of a previously established specific reserve on one commercial real estate loan.
(G) Total ACL less specific reserves equals general ACL.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)

		As of
		March 31,						December 31,						March 31,
		2023						2022						2022
Capital Adequacy
Equity to total assets (A)					8.56	%					8.39	%					8.37	%
Tangible equity to tangible assets (B)					7.90	%					7.70	%					7.65	%
Book value per share (C)				$	30.81					$	29.92					$	28.49
Tangible book value per share (D)				$	28.20					$	27.26					$	25.85
Tangible equity to tangible assets excluding other comprehensive loss*					8.85	%					8.77	%					8.26	%
Tangible book value per share excluding other comprehensive loss*				$	31.94					$	31.43					$	28.08

*Excludes other comprehensive loss of $67.4 million for the quarter ended March 31, 2023, $74.2 million for the quarter ended December 31, 2022, and $40.9 million for the quarter ended March 31, 2022. See Non-GAAP financial measures reconciliation included in these tables.

(A) Equity to total assets is calculated as total shareholders’ equity as a percentage of total assets at quarter end.
(B) Tangible equity and tangible assets are calculated by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. Tangible equity as a percentage of tangible assets at quarter end is calculated by dividing tangible equity by tangible assets at quarter end. See Non-GAAP financial measures reconciliation included in these tables.
(C) Book value per common share is calculated by dividing shareholders’ equity by quarter end common shares outstanding.
(D) Tangible book value per share excludes intangible assets. Tangible book value per share is calculated by dividing tangible equity by quarter end common shares outstanding. See Non-GAAP financial measures reconciliation tables.

		As of
		March 31,							December 31,							March 31,
		2023							2022							2022
Regulatory Capital – Holding Company
Tier I leverage		$	573,154			9.02	%		$	557,627			8.90	%		$	513,838			8.37	%
Tier I capital to risk-weighted assets			573,154			11.39				557,627			11.02				513,838			10.16
Common equity tier I capital ratio to risk-weighted assets			573,136			11.39				557,609			11.02				513,814			10.16
Tier I & II capital to risk-weighted assets			762,095			15.15				745,197			14.73				705,184			13.94
Regulatory Capital – Bank
Tier I leverage (E)		$	700,858			11.03	%		$	680,137			10.85	%		$	631,522			10.29	%
Tier I capital to risk-weighted assets (F)			700,858			13.93				680,137			13.45				631,522			12.49
Common equity tier I capital ratio to risk-weighted assets (G)			700,840			13.93				680,119			13.45				631,498			12.49
Tier I & II capital to risk-weighted assets (H)			763,732			15.18				741,719			14.67				690,096			13.65

(E) Regulatory well capitalized standard (including capital conservation buffer) = 4.00% ($254 million)
(F) Regulatory well capitalized standard (including capital conservation buffer) = 8.50% ($428 million)
(G) Regulatory well capitalized standard (including capital conservation buffer) = 7.00% ($352 million)
(H) Regulatory well capitalized standard (including capital conservation buffer) = 10.50% ($528 million)

PEAPACK-GLADSTONE FINANCIAL CORPORATION
LOANS CLOSED
(Dollars in Thousands)
(Unaudited)

		For the Quarters Ended
		March 31,				Dec 31,				Sept 30,				June 30,				March 31,
		2023				2022				2022				2022				2022
Residential loans retained		$	30,303			$	28,051			$	17,885			$	35,172			$	41,547
Residential loans sold			1,477				1,840				4,898				9,886				15,669
Total residential loans			31,780				29,891				22,783				45,058				57,216
Commercial real estate			18,990				6,747				7,320				13,960				25,575
Multifamily			30,150				37,500				4,000				74,564				265,650
Commercial (C&I) loans/leases (A) (B)			207,814				238,568				251,249				332,801				143,029
SBA			9,950				17,431				5,682				10,534				26,093
Wealth lines of credit (A)			23,225				7,700				4,450				12,575				9,400
Total commercial loans			290,129				307,946				272,701				444,434				469,747
Installment loans			12,086				1,845				1,253				100				131
Home equity lines of credit (A)			2,921				3,815				5,614				3,897				1,341
Total loans closed		$	336,916			$	343,497			$	302,351			$	493,489			$	528,435

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

PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
(Tax-Equivalent Basis, Dollars in Thousands)
(Unaudited)

		For the Three Months Ended
		March 31, 2023												March 31, 2022
		Average				Income/								Average				Income/
		Balance				Expense				Yield				Balance				Expense				Yield
ASSETS:
Interest-earning assets:
Investments:
Taxable (A)		$	791,125			$	4,471				2.26	%		$	928,828			$	3,606				1.55	%
Tax-exempt (A) (B)			1,864				19				4.08				4,701				48				4.08
Loans (B) (C):
Mortgages			529,570				4,283				3.24				508,408				3,656				2.88
Commercial mortgages			2,478,645				25,917				4.18				2,353,032				18,175				3.09
Commercial			2,201,801				33,369				6.06				2,008,464				18,203				3.63
Commercial construction			4,296				88				8.19				18,087				160				3.54
Installment			39,945				609				6.10				34,475				254				2.95
Home equity			33,839				591				6.99				40,245				324				3.22
Other			276				7				10.14				283				6				8.48
Total loans			5,288,372				64,864				4.91				4,962,994				40,778				3.29
Federal funds sold			—				—				—				—				—				—
Interest-earning deposits			163,225				1,538				3.77				127,121				29				0.09
Total interest-earning assets			6,244,586				70,892				4.54	%			6,023,644				44,461				2.95	%
Noninterest-earning assets:
Cash and due from banks			10,449												7,455
Allowance for credit losses			(61,567	)											(61,001	)
Premises and equipment			23,927												23,022
Other assets			84,800												168,239
Total noninterest-earning assets			57,609												137,715
Total assets		$	6,302,195											$	6,161,359
LIABILITIES:
Interest-bearing deposits:
Checking		$	2,567,426			$	16,481				2.57	%		$	2,330,340			$	1,238				0.21	%
Money markets			1,124,047				4,874				1.73				1,294,100				539				0.17
Savings			141,285				28				0.08				156,554				5				0.01
Certificates of deposit – retail			357,953				1,729				1.93				426,166				606				0.57
Subtotal interest-bearing deposits			4,190,711				23,112				2.21				4,207,160				2,388				0.23
Interest-bearing demand – brokered			26,111				208				3.19				85,000				373				1.76
Certificates of deposit – brokered			25,961				205				3.16				33,823				261				3.09
Total interest-bearing deposits			4,242,783				23,525				2.22				4,325,983				3,022				0.28
Borrowings			104,915				1,296				4.94				55,513				64				0.46
Capital lease obligation			4,493				53				4.72				5,662				68				4.80
Subordinated debt			133,017				1,639				4.93				132,731				1,364				4.11
Total interest-bearing liabilities			4,485,208				26,513				2.36	%			4,519,889				4,518				0.40	%
Noninterest-bearing liabilities:
Demand deposits			1,176,495												978,288
Accrued expenses and other liabilities			96,631												119,003
Total noninterest-bearing liabilities			1,273,126												1,097,291
Shareholders’ equity			543,861												544,179
Total liabilities and shareholders’ equity		$	6,302,195											$	6,161,359
Net interest income						$	44,379											$	39,943
Net interest spread											2.18	%											2.55	%
Net interest margin (D)											2.88	%											2.69	%

(A) Average balances for available for sale securities are based on amortized cost.
(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual loans.
(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
(Tax-Equivalent Basis, Dollars in Thousands)
(Unaudited)

		For the Three Months Ended
		March 31, 2023												December 31, 2022
		Average				Income/								Average				Income/
		Balance				Expense				Yield				Balance				Expense				Yield
ASSETS:
Interest-earning assets:
Investments:
Taxable (A)		$	791,125			$	4,471				2.26	%		$	761,164			$	3,859				2.03	%
Tax-exempt (A) (B)			1,864				19				4.08				1,999				20				4.00
Loans (B) (C):
Mortgages			529,570				4,283				3.24				516,721				4,017				3.11
Commercial mortgages			2,478,645				25,917				4.18				2,497,847				25,007				4.00
Commercial			2,201,801				33,369				6.06				2,136,355				29,314				5.49
Commercial construction			4,296				88				8.19				4,213				68				6.46
Installment			39,945				609				6.10				36,648				496				5.41
Home equity			33,839				591				6.99				36,067				550				6.10
Other			276				7				10.14				292				8				10.96
Total loans			5,288,372				64,864				4.91				5,228,143				59,460				4.55
Federal funds sold			—				—				—				—				—				—
Interest-earning deposits			163,225				1,538				3.77				161,573				1,258				3.11
Total interest-earning assets			6,244,586				70,892				4.54	%			6,152,879				64,597				4.20	%
Noninterest-earning assets:
Cash and due from banks			10,449												6,723
Allowance for credit losses			(61,567	)											(60,070	)
Premises and equipment			23,927												23,682
Other assets			84,800												83,641
Total noninterest-earning assets			57,609												53,976
Total assets		$	6,302,195											$	6,206,855
LIABILITIES:
Interest-bearing deposits:
Checking		$	2,567,426			$	16,481				2.57	%		$	2,222,130			$	9,165				1.65	%
Money markets			1,124,047				4,874				1.73				1,246,179				3,438				1.10
Savings			141,285				28				0.08				161,569				12				0.03
Certificates of deposit – retail			357,953				1,729				1.93				360,589				922				1.02
Subtotal interest-bearing deposits			4,190,711				23,112				2.21				3,990,467				13,537				1.36
Interest-bearing demand – brokered			26,111				208				3.19				81,739				497				2.43
Certificates of deposit – brokered			25,961				205				3.16				25,979				210				3.23
Total interest-bearing deposits			4,242,783				23,525				2.22				4,098,185				14,244				1.39
Borrowings			104,915				1,296				4.94				43,710				497				4.55
Capital lease obligation			4,493				53				4.72				4,803				58				4.83
Subordinated debt			133,017				1,639				4.93				132,947				1,363				4.10
Total interest-bearing liabilities			4,485,208				26,513				2.36	%			4,279,645				16,162				1.51	%
Noninterest-bearing liabilities:
Demand deposits			1,176,495												1,303,432
Accrued expenses and other liabilities			96,631												100,372
Total noninterest-bearing liabilities			1,273,126												1,403,804
Shareholders’ equity			543,861												523,406
Total liabilities and shareholders’ equity		$	6,302,195											$	6,206,855
Net interest income						$	44,379											$	48,435
Net interest spread											2.18	%											2.69	%
Net interest margin (D)											2.88	%											3.12	%

(A) Average balances for available for sale securities are based on amortized cost.
(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual loans.
(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

PEAPACK-GLADSTONE FINANCIAL 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 common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders’ equity by common shares outstanding at period end. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.

The efficiency ratio is a non-GAAP measure of expense control relative to recurring revenue. We calculate the efficiency ratio by dividing total noninterest expenses, excluding other real estate owned provision, as determined under GAAP, by net interest income and total noninterest income as determined under GAAP, but excluding net gains/(losses) on loans held for sale at lower of cost or fair value and excluding net gains on securities from this calculation, which we refer to below as recurring revenue. We believe that this provides a reasonable measure of core expenses relative to core revenue.

We believe these non-GAAP financial measures provide information that is important to investors and useful in understanding our financial position, results and ratios because our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titles measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share and efficiency ratio to the underlying GAAP numbers is set forth below.

(Dollars in thousands, except per share data)

		Three Months Ended
		March 31,				Dec 31,				Sept 30,				June 30,				March 31,
Tangible Book Value Per Share		2023				2022				2022				2022				2022
Shareholders’ equity		$	554,958			$	532,980			$	515,514			$	520,324			$	523,426
Less: Intangible assets, net			46,979				47,333				47,698				48,082				48,471
Tangible equity		$	507,979			$	485,647			$	467,816			$	472,242			$	474,955
Less: other comprehensive loss			(67,445	)			(74,211	)			(74,983	)			(58,727	)			(40,938	)
Tangible equity excluding other comprehensive loss		$	575,424			$	559,858			$	542,799			$	530,969			$	515,893
Period end shares outstanding			18,014,757				17,813,451				17,920,571				18,190,009				18,370,312
Tangible book value per share		$	28.20			$	27.26			$	26.10			$	25.96			$	25.85
Tangible book value per share excluding other comprehensive loss		$	31.94			$	31.43			$	30.29			$	29.19			$	28.08
Book value per share			30.81				29.92				28.77				28.60				28.49
Tangible Equity to Tangible Assets
Total assets		$	6,480,018			$	6,353,593			$	6,087,261			$	6,151,167			$	6,255,664
Less: Intangible assets, net			46,979				47,333				47,698				48,082				48,471
Tangible assets		$	6,433,039			$	6,306,260			$	6,039,563			$	6,103,085			$	6,207,193
Less: other comprehensive loss			(67,445	)			(74,211	)			(74,983	)			(58,727	)			(40,938	)
Tangible assets excluding other comprehensive loss		$	6,500,484			$	6,380,471			$	6,114,546			$	6,161,812			$	6,248,131
Tangible equity to tangible assets			7.90	%			7.70	%			7.75	%			7.74	%			7.65	%
Tangible equity to tangible assets excluding other comprehensive loss			8.85	%			8.77	%			8.88	%			8.62	%			8.26	%
Equity to assets			8.56	%			8.39	%			8.47	%			8.46	%			8.37	%

(Dollars in thousands, except per share data)

		Three Months Ended
		March 31,				Dec 31,				Sept 30,				June 30,				March 31,
Return on Average Tangible Equity		2023				2022				2022				2022				2022
Net income		$	18,355			$	20,579			$	20,126			$	20,100			$	13,441
Average shareholders’ equity		$	543,861			$	523,406			$	529,160			$	521,197			$	544,179
Less: Average intangible assets, net			47,189				47,531				47,922				48,291				48,717
Average tangible equity		$	496,672			$	475,875			$	481,238			$	472,906			$	495,462
Return on average tangible common equity			14.78	%			17.30	%			16.73	%			17.00	%			10.85	%

(Dollars in thousands, except per share data)

		Three Months Ended
		March 31,				Dec 31,				Sept 30,				June 30,				March 31,
Efficiency Ratio		2023				2022				2022				2022				2022
Net interest income		$	43,978			$	48,040			$	45,525			$	42,893			$	39,622
Total other income			18,059				16,812				16,383				18,508				14,714
Add:
Fair value adjustment for CRA equity security			(209	)			(28	)			571				475				682
Less:
Loss on securities sale, net			—				—				—				—				6,609
Gain on sale of property			—				(275	)			—				—				—
Income from life insurance proceeds			—				(25	)			—				—				—
Total recurring revenue			61,828				64,524				62,479				61,876				61,627
Operating expenses			35,574				33,412				33,560				32,659				34,169
Less:
Swap valuation allowance			—				—				—				—				673
Accelerated Stock Vesting for Retirement			300				—				—				—				—
Branch Closure Expense			175				—				—				—				—
Severance expense			—				—				—				—				1,476
Total operating expense			35,099				33,412				33,560				32,659				32,020
Efficiency ratio			56.77	%			51.78	%			53.71	%			52.78	%			51.96	%

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