Bedminster, N.J., May 05, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the “Company”) announces its first quarter 2020 results.

This earnings release should be read in conjunction with the Company’s Q1 2020 Investor Update (and Supplemental Financial Information), a copy of which is available on our website at www.pgbank.com and as via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

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

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

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

EXECUTIVE SUMMARY:

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

March 2020 Quarter Compared to Prior Year Quarter

Three Three Months Months Ended Ended March31, March31, Increase/ (Dollars in millions, except per share data) 2020 2019 (Decrease) ------- ------- ------------------- Net interest income $ 31.75 $ 30.01 $ 1.74 6 % Wealth management fee income (A) 9.96 9.17 0.79 9 Capital markets activity (B) 2.76 0.74 2.02 273 Other income 1.80 1.82 (0.02 ) (1 ) - ----- - ----- - ------ ------ Total other income 14.52 11.73 2.79 24 Operating expenses 28.24 25.72 2.52 10 - ----- - ----- - ------ ------ Pretax income before provision for loan losses 18.03 16.02 2.01 13 Provision for loan and lease losses (C) 20.00 0.10 19.90 19,900 - ----- - ----- - ------ ------ Pretax (loss)/income (1.97 ) 15.92 (17.89 ) (112 ) Income tax (benefit)/expense (D) (3.34 ) 4.49 (7.83 ) (174 ) - ----- - ----- - ------ ------ Net income $ 1.37 $ 11.43 $ (10.06 ) (88 )% Diluted EPS $ 0.07 $ 0.58 $ (0.51 ) (88 )% Total Revenue $ 46.27 $ 41.74 $ 4.53 11 % Return on average assets annualized 0.11 % 0.98 % (0.87 ) Return on average equity annualized 1.08 % 9.65 % (8.57 )

a. The March 2020 quarter included a full quarter of wealth management fee income and expense related to Point View Wealth Management, (“Point View”), which was acquired effective September 1, 2019. b. Capital markets activity includes loan level back-to-back swap activities, the SBA lending and sale program, and mortgage banking activities. c. The March 2020 quarter included a provision for loan and lease losses of $20.0 million. The increase in the provision for loan and lease losses was primarily due to the current environment created by the COVID-19 pandemic. d. The March 2020 quarter included a $3.2 million tax benefit related to the carryback of tax NOLs to prior years when the Federal tax rate was 14% higher.

March 2020 Quarter Compared to Linked Quarter

Three Three Months Months Ended Ended March31, December Increase/ 31, (Dollars in millions, except per share data) 2020 2019 (Decrease) ------- ------- ----------------- Net interest income $ 31.75 $ 30.91 $ 0.84 3 % Wealth management fee income 9.96 10.12 (0.16 ) (2 ) Capital markets activity (A) 2.76 3.73 (0.97 ) (26 ) Other income 1.80 1.68 0.12 7 - ----- - ----- - ------ ---- Total other income 14.52 15.53 (1.01 ) (7 ) Operating expenses 28.24 26.70 1.54 6 - ----- - ----- - ------ ---- Pretax income before provision for loan losses 18.03 19.74 (1.71 ) (9 ) Provision for loan and lease losses (B) 20.00 1.95 18.05 926 - ----- - ----- - ------ ---- Pretax (loss)/income (1.97 ) 17.79 (19.76 ) (111 ) Income tax (benefit)/expense (C) (3.34 ) 5.56 (8.90 ) (160 ) - ----- - ----- - ------ ---- Net income $ 1.37 $ 12.23 $ (10.86 ) (89 )% Diluted EPS $ 0.07 $ 0.64 $ (0.57 ) (89 )% Total Revenue $ 46.27 $ 46.44 $ (0.17 ) (0 )% Return on average assets annualized 0.11 % 0.98 % (0.87 ) Return on average equity annualized 1.08 % 9.81 % (8.73 )

a. Capital markets activity includes loan level back-to-back swap activities, the SBA lending and sale program, and mortgage banking activities. b. The March 2020 quarter included a provision for loan and lease losses of $20.0 million. The increase in the provision for loan and lease losses was primarily due to the current environment created by the COVID-19 pandemic. c. The March 2020 quarter included a $3.2 million tax benefit related to the carryback of tax NOLs to prior years when the Federal tax rate was 14% higher.

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

-- Emphasis on the health and safety of our employees and clients. -- Adapt the way in which we interact with clients and prospects to reflect the current environment. -- Actively manage emerging credit risk associated with the environment caused by the COVID-19 pandemic. -- Conservatively manage capital and liquidity in response to current market conditions. -- Pursue new client opportunities presented by the PPP. -- Continue to grow and expand our wealth management and commercial banking businesses.

Select highlights for the quarter included:

-- Wealth management fee income, which comprised approximately 22% of the Company’s total revenue for the quarter ended March 31, 2020, continues to contribute significantly to the Company’s diversified revenue sources. -- Total commercial and industrial (“C&I”) loans (including equipment finance leases and loans of $671 million) at March 31, 2020 were $1.81 billion. This reflected net growth of $400 million (28%) when compared to $1.41 billion at March 31, 2019 and reflected net growth of $34 million when compared to the December 31, 2019 balance (2% growth linked quarter; 8% annualized). -- As of March 31, 2020, total C&I loans comprised 41% of the total loan portfolio, as compared to 36% at March 31, 2019. As of March 31, 2020, total multifamily loans comprised 27% of the total loan portfolio compared to 28% at March 31, 2019. -- Deposits totaled $4.44 billion at March 31, 2020. This reflected net growth of $522 million (13%) when compared to $3.92 billion at March 31, 2019 and increased $198 million (5% growth linked quarter; 19% annualized) when compared to the December 31, 2019 balance. -- The Company’s loan-to-deposit ratio was 99% at March 31, 2020, down from both December 31, 2019 and March 31, 2019 levels. -- In addition to $1.2 billion (21% of total assets) of balance sheet liquidity (investments, interest-earning deposits and cash), the Company also has access to approximately $2.2 billion of available secured funding at the Federal Home Loan Bank and the Federal Reserve. -- The Company authorized a 5% (960,000 shares) stock repurchase program on July 25, 2019 The Company completed the final purchases under the program in the first quarter of 2020. -- The Company’s and Bank’s capital ratios at March 31, 2020 remain strong and the Company’s tangible book value per share at March 31, 2020 was $24.20 reflecting an increase of 5% from $23.11 at March 31, 2019, despite $6.5 million of share repurchases made in the quarter and the higher Q1 2020 provision for loan losses. -- Asset quality metrics continued to be strong as of March 31, 2020. Nonperforming assets at March 31, 2020 were $29.4 million, or 0.50% of total assets.

SUPPLEMENTAL QUARTERLY DETAILS:

Wealth Management Business

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

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

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

Loans / Commercial Banking

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

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

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

Mr. Kennedy noted, “Our newly expanded Corporate Advisory business complements our commercial banking and wealth management businesses by giving us capability to engage in high level strategic debt, capital and valuation analysis coupled with succession, estate and wealth planning strategies, enabling us to provide a unique boutique level of service, giving us a competitive advantage over much of our peers.”

Funding / Liquidity / Interest Rate Risk Management

The Company actively manages its deposit base to reduce reliance on wholesale sourced deposits, volatility, and/or operational risk. Total deposits for the March 2020 quarter increased $198 million from the $4.24 billion at December 31, 2019 to $4.44 billion at March 31, 2020. Mr. Kennedy noted, “Of our total deposits only 17 percent are above the FDIC insurance limit, reinforcing the “core” nature of our deposit base.”

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

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

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

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

Three Months Ended Three Months Ended Three Months Ended March 31, 2020 December 31, 2019 March 31, 2019 NII NIM NII NIM NII NIM -------- ------- -------- ------- -------- ------- NII/NIM excluding the below $ 31,279 2.60 % $ 30,385 2.61 % $ 29,432 2.72 % Prepayment premiums received on multifamily 525 0.05 % 414 0.03 % 432 0.04 % loan paydowns Effect of maintaining excess interest earning (57 ) -0.08 % 115 -0.04 % 143 -0.06 % cash - ------ ----- - - ------ ----- - - ------ ----- - NII/NIM as reported $ 31,747 2.57 % $ 30,914 2.60 % $ 30,007 2.70 % - ------ ----- - - ------ ----- - - ------ ----- -

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

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

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

Other Noninterest Income (other than Wealth Management fee income)

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

Operating Expenses

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

Income Taxes

The Company recorded a $3.34 million tax benefit for the March 2020 quarter, principally as a result of a $3.2 million Federal income tax benefit that resulted from a tax NOL carryback. The Company had a $23 million operating loss for tax purposes in 2018 (when the Federal tax rate was 21%) resulting from accelerated tax depreciation. Under the CARES Act, the Company was allowed to carry this NOL back to a period when the Federal tax rate was 35%, generating a permanent tax benefit.

Asset Quality / Provision for Loan and Lease LossesFor further details, see the Q1 2020 Investor Update (and Supplemental Financial Information).

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

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

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

Capital / Dividend / Stock Repurchase Program

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

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

The Company employs quarterly capital stress testing – adverse case and severely adverse case. In the December 31, 2019 severely, adverse case, no growth scenario, the Bank remains well capitalized over a two-year stress period. With a Pandemic stress overlay, the Bank still remains well capitalized over the two-year stress period. For further details, see the Q1 2020 Investor Update (and Supplemental Financial Information).

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

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $5.8 billion and AUM/AUA administration of $6.4 billion as of March 31, 2020. Founded in 1921, Peapack-Gladstone Bank is a commercial bank that provides innovative wealth management, commercial and retail solutions, including residential lending and online platforms, to businesses and consumers. Peapack Private, the bank’s wealth management division, offers comprehensive financial, tax, fiduciary and investment advice and solutions, to individuals, families, privately-held businesses, family offices and not-for-profit organizations, which help them to establish, maintain and expand their legacy. Together, Peapack-Gladstone Bank and Peapack Private offer an unparalleled commitment to client service. Visit www.pgbank.com and www.peapackprivate.com for more information.

The foregoing may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, investments, relationships, opportunities and market conditions. These statements may be identified by such forward-looking terminology as “expect,” “look,” “believe,” “anticipate,” “may” or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to:

-- our inability to successfully grow our business and implement our strategic plan, including an inability to generate revenues to offset the increased personnel and other costs related to the strategic plan; -- the impact of anticipated higher operating expenses in 2020 and beyond; -- our inability to successfully integrate wealth management firm acquisitions; -- our inability to manage our growth; -- our inability to successfully integrate our expanded employee base; -- an unexpected decline in the economy, in particular in our New Jersey and New York market areas; -- declines in our net interest margin caused by the interest rate environment and/or our highly competitive market; -- declines in value in our investment portfolio; -- impact on our business from a pandemic event on our business, operations, customers, allowance for loan losses and capital levels; -- higher than expected increases in our allowance for loan and lease losses; -- higher than expected increases in loan and lease losses or in the level of nonperforming loans; -- changes in interest rates; -- decline in real estate values within our market areas; -- legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Basel III and related regulations) that may result in increased compliance costs; -- successful cyberattacks against our IT infrastructure and that of our IT and third party providers; -- higher than expected FDIC insurance premiums; -- adverse weather conditions; -- our inability to successfully generate new business in new geographic markets; -- our inability to execute upon new business initiatives; -- our lack of liquidity to fund our various cash obligations; -- reduction in our lower-cost funding sources; -- our inability to adapt to technological changes; -- claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters; -- our inability to retain key employees; -- demands for loans and deposits in our market areas; -- adverse changes in securities markets; -- changes in accounting policies and practices; and -- other unexpected material adverse changes in our operations or earnings.

Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus can be controlled and abated and when and how the economy may be reopened. As the result of the COVID-19 pandemic and the related adverse local and national economic consequences, we could be subject to any of the following risks, any of which could have a material, adverse effect on our business, financial condition, liquidity, and results of operations:

-- demand for our products and services may decline, making it difficult to grow assets and income; -- if the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income; -- collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase; -- our allowance for loan losses may have to be increased if borrowers experience financial difficulties, which will adversely affect our net income; -- the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us; -- as the result of the decline in the Federal Reserve Board’s target federal funds rate to near 0%, the yield on our assets may decline to a greater extent than the decline in our cost of interest-bearing liabilities, reducing our net interest margin and spread and reducing net income; -- a material decrease in net income or a net loss over several quarters could result in a decrease in the rate of our quarterly cash dividend; -- our wealth management revenues may decline with continuing market turmoil; -- our cyber security risks are increased as the result of an increase in the number of employees working remotely; and -- FDIC premiums may increase if the agency experience additional resolution costs.

A discussion of these and other factors that could affect our results is included in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2019. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

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

(Tables to follow)

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

For the Three Months Ended ---------------------------------------------------------------------------- March 31, Dec 31, Sept 30, June 30, March 31, 2020 2019 2019 2019 2019 ------------ ------------ ------------ ------------ ------------ Income Statement Data: Interest income $ 45,395 $ 45,556 $ 45,948 $ 44,603 $ 44,563 Interest expense 13,648 14,642 15,863 15,335 14,556 - ---------- - ---------- - ---------- - ---------- - ---------- Net interest income 31,747 30,914 30,085 29,268 30,007 Wealth management fee income 9,955 10,120 9,501 9,568 9,174 Service charges and fees 816 893 882 897 816 Bank owned life insurance 328 325 332 326 338 Gain on loans held for sale at fair value (B) 292 344 198 132 47 (Mortgage banking) Loss on loans held for sale at lower of cost or (3 ) (4 ) (6 ) — — fair value Fee income related to loan level, back-to-back (B) 1,418 2,459 2,349 721 270 swaps Gain on sale of SBA loans (B) 1,054 929 224 573 419 Other income 459 504 902 740 606 Securities gains/(losses), net 198 (45 ) 34 69 59 - ---------- - ---------- - ---------- - ---------- - ---------- Total other income 14,517 15,525 14,416 13,026 11,729 - ---------- - ---------- - ---------- - ---------- - ---------- Salaries and employee benefits 19,226 17,954 17,476 17,543 17,156 Premises and equipment 4,043 3,898 3,849 3,600 3,388 FDIC insurance expense 250 — (277 ) 277 277 Other expenses 4,716 4,849 5,211 4,753 4,894 - ---------- - ---------- - ---------- - ---------- - ---------- Total operating expenses 28,235 26,701 26,259 26,173 25,715 - ---------- - ---------- - ---------- - ---------- - ---------- Pretax income before provision 18,029 19,738 18,242 16,121 16,021 for loan losses Provision for loan and lease 20,000 1,950 800 1,150 100 losses (A) - ---------- - ---------- - ---------- - ---------- - ---------- (Loss)/income before income (1,971 ) 17,788 17,442 14,971 15,921 taxes Income tax (benefit)/expense (3,344 ) 5,555 5,216 3,421 4,496 (C) - ---------- - ---------- - ---------- - ---------- - ---------- Net income $ 1,373 $ 12,233 $ 12,226 $ 11,550 $ 11,425 - ---------- - ---------- - ---------- - ---------- - ---------- Total revenue (D) $ 46,264 $ 46,439 $ 44,501 $ 42,294 $ 41,736 - ---------- - ---------- - ---------- - ---------- - ---------- Per Common Share Data: Earnings per share (basic) $ 0.07 $ 0.64 $ 0.63 $ 0.59 $ 0.59 Earnings per share (diluted) 0.07 0.64 0.63 0.59 0.58 Weighted average number of common shares outstanding: Basic 18,858,343 18,966,917 19,314,666 19,447,155 19,350,452 Diluted 19,079,575 19,207,738 19,484,905 19,568,371 19,658,006 Performance Ratios: Return on average assets 0.11 % 0.98 % 1.00 % 0.99 % 0.98 % annualized (ROAA) Return on average equity 1.08 % 9.81 % 9.87 % 9.49 % 9.65 % annualized (ROAE) Net interest margin (tax- 2.57 % 2.60 % 2.60 % 2.64 % 2.70 % equivalent basis) GAAP efficiency ratio (E) 61.03 % 57.50 % 59.01 % 61.88 % 61.61 % Operating expenses / average 2.18 % 2.13 % 2.16 % 2.25 % 2.21 % assets annualized

(A) The March 2020 quarter included a provision for loan and lease losses of $20.0 million. The increase in the provision for loan and lease losses was primarily due to the current environment created by the COVID-19 pandemic. (B) Gain on loans held for sale at fair value (mortgage banking), fee income related to loan level, back-to-back swaps and gain on sale of SBA loans are all included in “capital markets activity” as referred to within the earnings release(C) The March 2020 quarter included a $3.2 million tax benefit related to the carryback of tax NOLs to prior years when the Federal tax rate was 14% higher.(D) Total revenue includes net interest income plus total other income.(E) Calculated as total operating expenses as a percentage of total revenue. For Non-GAAP efficiency ratio, see Non-GAAP financial measures reconciliation included in these tables.

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

As of ------------------------------------------------------------------- March 31, Dec 31, Sept 30, June 30, March 31, 2020 2019 2019 2019 2019 ----------- ----------- ----------- ----------- ----------- ASSETS Cash and due from banks $ 6,171 $ 6,591 $ 5,770 $ 5,351 $ 4,726 Federal funds sold 102 102 101 101 101 Interest-earning deposits (A) 767,730 201,492 221,242 298,575 235,487 - --------- - --------- - --------- - --------- - --------- Total cash and cash equivalents 774,003 208,185 227,113 304,027 240,314 Securities available for sale 400,558 390,755 349,989 378,839 384,400 Equity security 14,034 10,836 7,881 4,847 4,778 FHLB and FRB stock, at cost 40,871 24,068 21,403 18,338 18,460 Residential mortgage 532,063 552,019 561,543 572,926 569,304 Multifamily mortgage 1,203,487 1,210,003 1,197,093 1,129,476 1,104,406 Commercial mortgage 760,648 761,244 721,261 694,674 705,221 Commercial loans 1,810,214 1,776,450 1,575,076 1,518,591 1,410,146 Consumer loans 53,365 54,372 53,829 53,995 54,276 Home equity lines of credit 55,856 57,248 58,423 62,522 57,639 Other loans 347 349 380 424 355 - --------- - --------- - --------- - --------- - --------- Total loans 4,415,980 4,411,685 4,167,605 4,032,608 3,901,347 Less: Allowances for loan and lease 63,783 43,676 41,580 39,791 38,653 losses - --------- - --------- - --------- - --------- - --------- Net loans 4,352,197 4,368,009 4,126,025 3,992,817 3,862,694 Premises and equipment 21,243 20,913 20,898 20,987 21,201 Other real estate owned 50 50 336 — — Accrued interest receivable 11,816 10,494 11,759 11,594 11,688 Bank owned life insurance 46,309 46,128 45,940 45,744 45,554 Goodwill and other intangible assets 40,265 40,588 41,111 31,941 32,170 Finance lease right-of-use assets 4,891 5,078 5,265 5,452 5,639 Operating lease right-of-use assets 11,553 12,132 10,328 11,017 7,541 Other assets (B) 113,668 45,643 57,361 45,631 27,867 - --------- - --------- - --------- - --------- - --------- TOTAL ASSETS $ 5,831,458 $ 5,182,879 $ 4,925,409 $ 4,871,234 $ 4,662,306 - --------- - --------- - --------- - --------- - --------- LIABILITIES Deposits: Noninterest-bearing demand deposits $ 581,085 $ 529,281 $ 544,464 $ 544,431 $ 476,013 Interest-bearing demand deposits 1,680,452 1,510,363 1,352,471 1,388,821 1,268,823 Savings 112,668 112,652 115,448 112,438 114,865 Money market accounts 1,163,410 1,196,313 1,196,188 1,207,358 1,209,835 Certificates of deposit – Retail 651,000 633,763 583,425 570,384 545,450 Certificates of deposit – Listing 38,895 47,430 55,664 58,541 68,055 Service - --------- - --------- - --------- - --------- - --------- Subtotal “customer” deposits 4,227,510 4,029,802 3,847,660 3,881,973 3,683,041 IB Demand – Brokered 180,000 180,000 180,000 180,000 180,000 Certificates of deposit – Brokered 33,723 33,709 33,696 33,682 56,165 - --------- - --------- - --------- - --------- - --------- Total deposits 4,441,233 4,243,511 4,061,356 4,095,655 3,919,206 Short-term borrowings (A) 515,000 128,100 67,000 — — FHLB advances 105,000 105,000 105,000 105,000 105,000 Finance lease liability 7,402 7,598 7,793 7,985 8,175 Operating lease liability 11,852 12,423 10,619 11,269 7,683 Subordinated debt, net 83,473 83,417 83,361 83,305 83,249 Other liabilities (B) 160,173 91,227 94,930 74,132 57,521 Due to brokers 10,885 7,951 — — — - --------- - --------- - --------- - --------- - --------- TOTAL LIABILITIES 5,335,018 4,679,227 4,430,059 4,377,346 4,180,834 Shareholders’ equity 496,440 503,652 495,350 493,888 481,472 - --------- - --------- - --------- - --------- - --------- TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 5,831,458 $ 5,182,879 $ 4,925,409 $ 4,871,234 $ 4,662,306 - --------- - --------- - --------- - --------- - --------- Assets under management and / or administration at Peapack-Gladstone Bank’s Private Wealth $ 6.4 $ 7.5 $ 7.0 $ 6.6 $ 6.3 Management Division (market value, not included above-dollars in billions)

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

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

As of -------------------------------------------------------- March Dec 31, Sept 30, June 30, March 31, 31, 2020 2019 2019 2019 2019 -------- -------- -------- -------- -------- Asset Quality: Loans past due over 90 days and still accruing $ — $ — $ — $ — $ — Nonaccrual loans (A) 29,324 28,881 29,383 31,150 24,892 Other real estate owned 50 50 336 — — - ------ - ------ - ------ - ------ - ------ Total nonperforming assets $ 29,374 $ 28,931 $ 29,719 $ 31,150 $ 24,892 - ------ - ------ - ------ - ------ - ------ Nonperforming loans to total loans 0.66 % 0.65 % 0.71 % 0.77 % 0.64 % Nonperforming assets to total assets 0.50 % 0.56 % 0.60 % 0.64 % 0.53 % Performing TDRs (B)(C) $ 2,389 $ 2,357 $ 2,527 $ 3,772 $ 4,274 Loans past due 30 through 89 days and still $ 8,261 $ 1,910 $ 6,333 $ 432 $ 2,492 accruing (D) Classified loans $ 58,938 $ 58,908 $ 53,882 $ 56,135 $ 51,306 Impaired loans $ 36,369 $ 35,924 $ 36,627 $ 34,941 $ 29,185 Allowance for loan and lease losses: Beginning of period $ 43,676 $ 41,580 $ 39,791 $ 38,653 $ 38,504 Provision for loan and lease losses 20,000 1,950 800 1,150 100 Recoveries (charge-offs), net 107 146 989 (12 ) 49 - ------ - ------ - ------ - ------ - ------ End of period $ 63,783 $ 43,676 $ 41,580 $ 39,791 $ 38,653 - ------ - ------ - ------ - ------ - ------ ALLL to nonperforming loans 217.51 % 151.23 % 141.51 % 127.74 % 155.28 % ALLL to total loans 1.444 % 0.990 % 0.998 % 0.987 % 0.991 % General ALLL to total loans (E) 1.301 % 0.927 % 0.932 % 0.956 % 0.984 %

(A) Includes one casual dining commercial banking relationship, with a balance of $5.9 million at March 31, 2020, that went on nonaccrual at June 30, 2019.(B) Amounts reflect TDRs that are paying according to restructured terms.(C) Amount does not include $25.9 million at March 31, 2020, $25.8 million at December 31, 2019, $19.7 million at September 30, 2019, $19.8 million at June 30, 2019 and $20.0 million at March 31, 2019, of TDRs included in nonaccrual loans.(D) Includes a non-owner occupied CRE loan with a balance of $3.5 million at March 31, 2020. This loan was brought fully current in early April 2020. The $6.3 million at September 30, 2019 included one $4.3 million commercial real estate loan that was in process of a rate modification (not a TDR modification). The loan was brought fully current in early October 2019.(E) Total ALLL less specific reserves equals general ALLL.

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

March31, December March31, 31, 2020 (I) 2019 2019 --------- --------- --------- Capital Adequacy Equity to total assets (A) 8.51 % 9.72 % 10.33 % Tangible Equity to tangible assets (B) 7.88 % 9.01 % 9.70 % Book value per share (C) $ 26.33 $ 26.61 $ 24.76 Tangible Book Value per share (D) $ 24.20 $ 24.47 $ 23.11

March31, December 31, March31, 2020 2019 2019 ----------------- - ----------------- - ----------------- - Regulatory Capital–Holding Company Tier I leverage $ 458,640 8.93 % $ 463,521 9.33 % $ 450,244 9.76 % Tier I capital to risk-weighted assets 458,640 10.71 463,521 11.14 450,244 12.19 Common equity tier I capital ratio 458,639 10.71 463,520 11.14 450,242 12.19 to risk-weighted assets Tier I & II capital to risk-weighted assets 595,770 13.91 590,614 14.20 572,146 15.49 Regulatory Capital–Bank Tier I leverage (E) $ 527,433 10.28 % $ 527,833 10.63 % $ 518,702 11.25 % Tier I capital to risk-weighted assets (F) 527,433 12.33 527,833 12.70 518,702 14.06 Common equity tier I capital ratio 527,432 12.33 527,832 12.70 518,700 14.06 to risk-weighted assets (G) Tier I & II capital to risk-weighted assets 581,025 13.58 571,509 13.76 557,355 15.10 (H)

(A) Equity to total assets is calculated as total shareholders’ equity as a percentage of total assets at period end.(B) Tangible equity and tangible assets are calculated by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. Tangible equity as a percentage of tangible assets at period end is calculated by dividing tangible equity by tangible assets at period end. See Non-GAAP financial measures reconciliation included in these tables.(C) Book value per common share is calculated by dividing shareholders’ equity by period end common shares outstanding.(D) Tangible book value per excludes intangible assets. Tangible book value per share is calculated by dividing tangible equity by period end common shares outstanding. See Non-GAAP financial measures reconciliation tables.(E) Regulatory well capitalized standard = 5.00% ($257 million)(F) Regulatory well capitalized standard = 6.50% ($278 million)(G) Regulatory well capitalized standard = 8.00% ($342 million)(H) Regulatory well capitalized standard = 10.00% ($428 million)(I) The increase in interest-earning deposits funded by the $500.0 million FHLB Advance inflated Total Assets at March 31, 2020 by that amount. This had the effect of reducing the equity to total assets ratio and tangible equity to tangible assets ratio by 0.80% and 0.74%, respectively.

PEAPACK-GLADSTONE FINANCIAL CORPORATIONLOANS CLOSED(Dollars in Thousands)(Unaudited)

For the Quarters Ended --------------------------------------------------------- March 31, Dec 31, Sept 30, June 30, March 31, 2020 2019 2019 2019 2019 --------- --------- --------- --------- --------- Residential loans retained $ 14,831 $ 17,115 $ 19,073 $ 21,998 $ 10,839 Residential loans sold 19,391 21,255 15,846 9,785 3,090 - ------- - ------- - ------- - ------- - ------- Total residential loans 34,222 38,370 34,919 31,783 13,929 Commercial real estate 8,858 52,630 43,414 34,204 21,025 Multifamily 61,998 63,627 77,138 58,604 21,122 Commercial (C&I) loans (A) (B) 42,908 174,946 228,903 143,944 141,128 SBA 13,830 19,195 3,510 3,740 9,050 Wealth lines of credit (A) 3,250 42,575 6,980 6,725 7,380 - ------- - ------- - ------- - ------- - ------- Total commercial loans 130,844 352,973 359,945 247,217 199,705 Installment loans 256 984 362 1,497 558 Home equity lines of credit (A) 3,632 2,414 5,631 3,626 1,607 - ------- - ------- - ------- - ------- - ------- Total loans closed $ 168,954 $ 394,741 $ 400,857 $ 284,123 $ 215,799 - ------- - ------- - ------- - ------- - -------

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

PEAPACK-GLADSTONE FINANCIAL CORPORATIONAVERAGE BALANCE SHEETUNAUDITEDTHREE MONTHS ENDED(Tax-Equivalent Basis, Dollars in Thousands)

March31, 2020 March31, 2019 ------------------------------- -------------------------------- Average Income/ Average Income/ Balance Expense Yield Balance Expense Yield ----------- -------- ----- ----------- -------- ------ ASSETS: Interest-earning assets: Investments: Taxable (A) $ 411,806 $ 2,459 2.39 % $ 387,566 $ 2,684 2.77 % Tax-exempt (A) (B) 10,534 131 4.97 17,345 210 4.84 Loans (B) (C): Mortgages 535,114 4,576 3.42 571,637 4,895 3.43 Commercial mortgages 1,955,808 18,483 3.78 1,824,371 18,021 3.95 Commercial 1,758,137 18,593 4.23 1,379,585 16,750 4.86 Commercial construction 5,629 88 6.25 — — — Installment 53,983 464 3.44 55,215 577 4.18 Home equity 55,654 614 4.41 60,421 766 5.07 Other 364 9 9.89 412 11 10.68 - --------- - ------ ---- - --------- - ------ ----- Total loans 4,364,689 42,827 3.92 3,891,641 41,020 4.22 - --------- - ------ ---- - --------- - ------ ----- Federal funds sold 102 — 0.25 101 — 0.25 Interest-earning deposits 251,566 552 0.88 237,251 1,270 2.14 - --------- - ------ ---- - --------- - ------ ----- Total interest-earning assets 5,038,697 45,969 3.65 % 4,533,904 45,184 3.99 % - --------- - ------ ---- - --------- - ------ ----- Noninterest-earning assets: Cash and due from banks 5,517 5,398 Allowance for loan and lease losses (44,368 ) (38,948 ) Premises and equipment 21,145 21,467 Other assets 161,452 122,102 - --------- - --------- Total noninterest-earning assets 143,746 110,019 - --------- - --------- Total assets $ 5,182,443 $ 4,643,923 - --------- - --------- LIABILITIES: Interest-bearing deposits: Checking $ 1,540,798 $ 3,447 0.89 % $ 1,284,611 $ 3,710 1.16 % Money markets 1,192,049 2,981 1.00 1,208,004 4,335 1.44 Savings 110,905 15 0.05 114,003 16 0.06 Certificates of deposit – retail 698,019 3,694 2.12 607,178 3,234 2.13 - --------- - ------ ---- - --------- - ------ ----- Subtotal interest-bearing deposits 3,541,771 10,137 1.14 3,213,796 11,295 1.41 Interest-bearing demand – brokered 180,000 923 2.05 180,000 739 1.64 Certificates of deposit – brokered 33,715 263 3.12 56,154 365 2.60 - --------- - ------ ---- - --------- - ------ ----- Total interest-bearing deposits 3,755,486 11,323 1.21 3,449,950 12,399 1.44 - --------- - ------ ---- - --------- - ------ ----- Borrowings 183,398 1,012 2.21 105,900 834 3.15 Capital lease obligation 7,475 90 4.82 8,244 99 4.80 Subordinated debt 83,439 1,223 5.86 83,213 1,224 5.88 - --------- - ------ ---- - --------- - ------ ----- Total interest-bearing liabilities 4,029,798 13,648 1.35 % 3,647,307 14,556 1.60 % - --------- - ------ ---- - --------- - ------ ----- Noninterest-bearing liabilities: Demand deposits 542,557 471,265 Accrued expenses and other liabilities 101,662 51,791 - --------- - --------- Total noninterest-bearing liabilities 644,219 523,056 Shareholders’ equity 508,426 473,560 - --------- - --------- Total liabilities and shareholders’ $ 5,182,443 $ 4,643,923 equity - --------- - --------- Net interest income $ 32,321 $ 30,628 - ------ - ------ Net interest spread 2.30 % 2.39 % ---- ----- Net interest margin (D) 2.57 % 2.70 % ---- -----

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

PEAPACK-GLADSTONE FINANCIAL CORPORATIONAVERAGE BALANCE SHEETUNAUDITEDTHREE MONTHS ENDED(Tax-Equivalent Basis, Dollars in Thousands)

March31, 2020 December 31, 2019 ------------------------------- -------------------------------- Average Income/ Average Income/ Balance Expense Yield Balance Expense Yield ----------- -------- ----- ----------- -------- ------ ASSETS: Interest-earning assets: Investments: Taxable (A) $ 411,806 $ 2,459 2.39 % $ 393,549 $ 2,428 2.47 % Tax-exempt (A) (B) 10,534 131 4.97 12,037 147 4.88 Loans (B) (C): Mortgages 535,114 4,576 3.42 557,132 4,780 3.43 Commercial mortgages 1,955,808 18,483 3.78 1,959,902 18,588 3.79 Commercial 1,758,137 18,593 4.23 1,662,026 18,413 4.43 Commercial construction 5,629 88 6.25 4,842 81 7 Installment 53,983 464 3.44 54,562 524 3.84 Home equity 55,654 614 4.41 58,082 662 4.56 Other 364 9 9.89 379 10 10.55 - --------- - ------ ---- - --------- - ------ ----- Total loans 4,364,689 42,827 3.92 4,296,925 43,058 4.01 - --------- - ------ ---- - --------- - ------ ----- Federal funds sold 102 — 0.25 102 — 0.25 Interest-earning deposits 251,566 552 0.88 159,759 560 1.40 - --------- - ------ ---- - --------- - ------ ----- Total interest-earning assets 5,038,697 45,969 3.65 % 4,862,372 46,193 3.80 % - --------- - ------ ---- - --------- - ------ ----- Noninterest-earning assets: Cash and due from banks 5,517 5,600 Allowance for loan and lease losses (44,368 ) (42,374 ) Premises and equipment 21,145 20,946 Other assets 161,452 166,868 - --------- - --------- Total noninterest-earning assets 143,746 151,040 - --------- - --------- Total assets $ 5,182,443 $ 5,013,412 - --------- - --------- LIABILITIES: Interest-bearing deposits: Checking $ 1,540,798 $ 3,447 0.89 % $ 1,407,151 $ 3,489 0.99 % Money markets 1,192,049 2,981 1.00 1,169,413 3,456 1.18 Savings 110,905 15 0.05 112,597 16 0.06 Certificates of deposit – retail 698,019 3,694 2.12 660,159 3,734 2.26 - --------- - ------ ---- - --------- - ------ ----- Subtotal interest-bearing deposits 3,541,771 10,137 1.14 3,349,320 10,695 1.28 Interest-bearing demand – brokered 180,000 923 2.05 180,000 981 2.18 Certificates of deposit – brokered 33,715 263 3.12 33,702 267 3.17 - --------- - ------ ---- - --------- - ------ ----- Total interest-bearing deposits 3,755,486 11,323 1.21 3,563,022 11,943 1.34 - --------- - ------ ---- - --------- - ------ ----- Borrowings 183,398 1,012 2.21 221,462 1,383 2.50 Capital lease obligation 7,475 90 4.82 7,669 92 4.80 Subordinated debt 83,439 1,223 5.86 83,385 1,224 5.87 - --------- - ------ ---- - --------- - ------ ----- Total interest-bearing liabilities 4,029,798 13,648 1.35 % 3,875,538 14,642 1.51 % - --------- - ------ ---- - --------- - ------ ----- Noninterest-bearing liabilities: Demand deposits 542,557 539,501 Accrued expenses and other liabilities 101,662 99,702 - --------- - --------- Total noninterest-bearing liabilities 644,219 639,203 Shareholders’ equity 508,426 498,671 - --------- - --------- Total liabilities and shareholders’ $ 5,182,443 $ 5,013,412 equity - --------- - --------- Net interest income $ 32,321 $ 31,551 - ------ - ------ Net interest spread 2.30 % 2.29 % ---- ----- Net interest margin (D) 2.57 % 2.60 % ---- -----

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

PEAPACK-GLADSTONE FINANCIAL CORPORATIONNON-GAAP FINANCIAL MEASURES RECONCILIATION

Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. We calculate tangible book value per share by dividing tangible equity by period end common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders’ equity by period end common shares outstanding. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.

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

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

Non-GAAP Financial Reconciliation

(Dollars in thousands, except share data)

Three Months Ended ---------------------------------------------------------------------------- March 31, Dec 31, Sept 30, June 30, March 31, Tangible Book Value Per Share 2020 (A) 2019 2019 2019 2019 ------------ ------------ ------------ ------------ ------------ Shareholders’ equity $ 496,440 $ 503,652 $ 495,350 $ 493,888 $ 481,472 Less: Intangible assets, net 40,265 40,588 41,111 31,941 32,170 - ---------- - ---------- - ---------- - ---------- - ---------- Tangible equity 456,175 463,064 454,239 461,947 449,302 Period end shares outstanding 18,852,523 18,926,810 18,999,241 19,456,312 19,445,363 Tangible book value per share $ 24.20 $ 24.47 $ 23.91 $ 23.74 $ 23.11 Book value per share 26.33 26.61 26.07 25.38 24.76 Tangible Equity to Tangible Assets Total assets $ 5,831,458 $ 5,182,879 $ 4,925,409 $ 4,871,234 $ 4,662,306 Less: Intangible assets, net 40,265 40,588 41,111 31,941 32,170 - ---------- - ---------- - ---------- - ---------- - ---------- Tangible assets 5,791,193 5,142,291 4,884,298 4,839,293 4,630,136 Tangible equity to tangible 7.88 % 9.01 % 9.30 % 9.55 % 9.70 % assets Equity to assets 8.51 % 9.72 % 10.06 % 10.14 % 10.33 %

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

Three Months Ended -------------------------------------------------------- March Dec 31, Sept 30, June 30, March 31, 31, Efficiency Ratio 2020 2019 2019 2019 2019 -------- -------- -------- -------- -------- Net interest income $ 31,747 $ 30,914 $ 30,085 $ 29,268 $ 30,007 Total other income 14,517 15,525 14,416 13,026 11,729 Less: Loss on loans held for sale at lower of cost or fair value 3 4 6 — — Less: Income from life insurance proceeds — — — — — Add: Securities (gains)/losses, net (198 ) 45 (34 ) (69 ) (59 ) - ------ - ------ - ------ - ------ - ------ Total recurring revenue 46,069 46,488 44,473 42,225 41,677 - ------ - ------ - ------ - ------ - ------ Operating expenses 28,235 26,701 26,259 26,173 25,715 Less: ORE provision — — — — — - ------ - ------ - ------ - ------ - ------ Total operating expense 28,235 26,701 26,259 26,173 25,715 - ------ - ------ - ------ - ------ - ------ Efficiency ratio 61.29 % 57.44 % 59.04 % 61.98 % 61.70 %

Contact:

Jeffrey J. Carfora, SEVP and CFO

Peapack-Gladstone Financial Corporation

T: 908-719-4308

Copyright 2020 GlobeNewswire, Inc.

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