Peapack-Gladstone Financial 8K Reports Another Quarter of Strong Results | PGC 29 Oct 15

Exhibit 99.1

Contact:

Jeffrey J. Carfora, SEVP and CFO

Peapack-Gladstone Financial Corporation

T: 908-719-4308

PEAPACK-GLADSTONE FINANCIAL CORPORATION

REPORTS ANOTHER QUARTER OF STRONG RESULTS

Bedminster, N.J. – October 28, 2015 –Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market:PGC) (the “Corporation” or the “Company”) recorded net income of $15.63 million and diluted earnings per share of $1.02 for the nine months ended September 30, 2015, compared to $10.68 million and $0.90, respectively, for the same nine month period last year, reflecting growth of 46 percent and 13 percent, respectively. The Company’s provision for loan losses for the nine months of 2015 of $5.15 million reflected an increase of $1.53 million from the $3.63 million for the same 2014 period.

For the quarter ended September 30, 2015, the Corporation recorded net income of $5.38 million and diluted earnings per share of $0.35, compared to $3.86 million and diluted earnings per share of $0.32 for the same three month period last year, reflecting in of 39 percent and 9 percent, respectively. The Company’s provision for loan losses for the third quarter of 2015 of $1.60 million reflected an increase of $450 thousand from the $1.15 million for the third quarter of 2014.

The following table summarizes earnings for the quarters ended:

	September			September			Increase/
(Dollars in millions, except EPS)	2015			2014			(Decrease)
Net interest income	$	21.71		$	17.05		$	4.66		27	%
Provision for loan losses	$	1.60		$	1.15		$	0.45		39	%
Pretax income	$	8.82		$	6.26		$	2.56		41	%
Net income	$	5.38		$	3.86		$	1.52		39	%
Diluted EPS	$	0.35		$	0.32		$	0.03		9	%
Total revenue	$	27.32		$	22.10		$	5.22		24	%

Return on average assets		0.66	%		0.63	%		0.03
Return on average equity		8.19	%		8.35	%		(0.16	)
Efficiency ratio (A)		61.14	%		66.58	%		(5.44	)

(A) See Non-GAAP financial measures reconciliation table on page 26.

Doug Kennedy, President and CEO, said, “We continue to generate strong results and drive operating efficiencies, as we continue to successfully execute on our Growth Strategy –Expanding Our Reach.”

Q3 2015 highlights follow:

Earnings and performance ratios for the third quarter of 2015 reflected improvementwhen compared to the third quarter of 2014’s results (as reflected just above).Year over year growth in EPS was 9 percent, despite 2.776 million common shares issued in the December 2014 capital raise.

Loans at September 30, 2015 totaled $2.86 billion. This reflected growth of $814 million when compared to $2.04 billion at September 30, 2014.Year over year loan growth was 40 percent.

Multifamily loan participations sold in the third quarter of 2015 totaled $40 million.Additionally, as of September 30, 2015, $27 million of multifamily loans were classified as loans held for sale representing a participation transaction that is anticipated to close during Q4 2015.

Asset quality metrics continued to be strong at September 30, 2015. Nonperforming assets at September 30, 2015 were $7.9 million or 0.24 percent of total assets. Total loans past due 30 through 89 days and still accruing were $2.7 million at September 30, 2015.

Commercial & Industrial (C&I) loans at September 30, 2015 totaled $457 million. This reflected growth of $231 million when compared to the $226 million at September 30, 2014.Year over year C&I loan growth was 102 percent.(Not included in totals above are $20 million of C&I loans which closed in early October.)

Total“customer” deposit balances (defined as deposits excluding brokered CDs and brokered “overnight” interest-bearing demand deposits)grew to $2.55 billion at September 30, 2015 from $1.93 billion at September 30, 2014.Year over year customer deposit growth totaled 32 percent.

The Company’s net interest income for the third quarter of 2015 was $21.71 million. This reflected improvement when compared to $17.05 million for the third quarter of 2014. Year over year growth in net interest income was 27 percent.

At September 30, 2015,the market value of assets under administration at the Private Wealth Management Division of Peapack-Gladstone Bank (“the Bank”) was nearly $3.3 billion,including the acquisition of Wealth Management Consultants, which occurred in May 2015.

Fee income from the Private Wealth Management Division totaled $4.17 million for the third quarter of 2015, growing from $3.66 million for the third quarter of 2014. Year over year growth in wealth management fee income was 14 percent.

The Company continued to leverage the capital raised in the fourth quarter of 2014. The Company believes it has sufficient capital to support its continued growth and expansion for the immediate future.

The book value per share at September 30, 2015 of $17.33 reflected improvement when compared to $15.80 at September 30, 2014.Year over year growth in book value per share totaled 10 percent.

Net Interest Income / Net Interest Margin

Net interest income was $21.71 million for the third quarter of 2015, compared to $17.05 million for the same quarter last year, reflecting growth of $4.66 million or 27 percent when compared to the prior year period. Net interest income for the third quarter of 2015 benefitted from significant loan growth during the fourth quarter of 2014, as well as during the first nine months of 2015.

While net interest income for the third quarter of 2015 improved compared to prior periods, the net interest margin, on a fully tax-equivalent basis, was 2.75 percent for the September 2015 quarter compared to 2.89 percent for the September 2014 quarter. Net interest margin continued to be impacted by the effect of low market yields, as well as competitive pressures in attracting new loans and deposits. The Company expects continued loan and deposit growth in this competitive environment.

Net interest margin is also affected by the maintenance of larger average interest earning deposit/cash balances, as well as larger balances of liquid investment securities. During 2014, the Company began maintaining greater liquidity on its balance sheet to support its expansive loan program. Mr. Kennedy said, “As I have said before, given our rapid growth, we had decided to maintain and will continue to maintain higher liquidity on our balance sheet than typically needed for operations.” Mr. Kennedy went on to note, “In addition to liquidity from cash equivalents and investment securities on our balance sheet, we also have close to $900 million of net secured funding available from the Federal Home Loan Bank.”

Loan Originations / Loans

Total loan originations were $1.05 billion for the nine months ended September 30, 2015 compared to $772 million for the same nine month period in 2014.

For the third quarter ended September 30, 2015 loan originations were $290 million, down from $417 million for the June 2015 quarter, but up from $221 million for the September 2014 quarter. At September 30, 2015, loans totaled $2.86 billion compared to $2.74 billion three months ago at June 30, 2015 and compared to $2.04 billion one year ago at September 30, 2014, representing net increases of $113 million or 4 percent sequentially and $814 million or 40 percent, year over year.

At September 30, 2015, the multifamily loan portfolio loans totaled $1.44 billion compared to $1.37 billion three months ago at June 30, 2015 and compared to $928 million one year ago at September 30, 2014, representing net increases of $73 million or 5 percent sequentially and $516 million or 56 percent, year over year. The increases were net of participations sold, including $40 million of participations sold in the current September 2015 quarter, and $139 million for the nine months ended September 30, 2015. These participations were part of the Company’s balance sheet management strategy and will likely continue in 2015 and beyond.

The commercial mortgage loan portfolio grew by $24 million from June 30, 2015 to September 30, 2015, reflecting linked quarter growth of 6 percent, and grew by $67 million from September 30, 2014 to September 30, 2015, reflecting year over year growth of 20 percent.

The net increases in both the multifamily and commercial mortgage portfolios were attributable to: the addition of seasoned banking professionals; continued attention to the client service aspect of the lending process; an expansion of New Jersey-based real estate marketing activities; and a focus on the Boroughs of New York City multifamily markets beginning in mid-2013. The increase was also due to demand from borrowers looking to refinance multifamily and other commercial mortgages held by other institutions.

Mr. Kennedy said, “As I explained last quarter, we anticipated multifamily loan growth would be less than past quarters, as we manage our balance sheet such that the C&I loan portfolio becomes a larger percentage of our overall loan portfolio. Our C&I pipeline remains robust and we believe we will continue to deliver strong growth.”

For the quarter and nine months ended September 30, 2015 the Company closed $37 million and $215 million of commercial loans, respectively. Additionally, not included in these amounts are $20 million of C&I loans which closed in early October. When comparing September 30, 2015 to September 30, 2014, commercial loans grew $231 million or 102 percent, to $457 million at September 30, 2015 from $226 million one year ago at September 30, 2014. At September 30, 2015 the commercial loan portfolio comprised 16 percent of the overall loan portfolio, up from 11 percent one year ago at September 30, 2014.

Mr. Kennedy said, “As a result of our investment in and commitment to C&I banking, including the addition in 2014 and 2015 of highly regarded bankers with industry and capital markets expertise, and the addition of Eric H. Waser, Head of Commercial Banking in February 2015, we have seen, and believe will continue to see, our C&I client base and corresponding loan portfolio grow and consume a larger percentage of our overall loan portfolio. However, due to the nature of this business, this growth will likely not be linear each quarter, but rather will be apparent over longer periods of time.”

Mr. Kennedy went on to say, “We believe our private banking business model of addressing the sophisticated needs and expectations of successful business owners and entrepreneurs is being well received. The ability to engage in high level strategic debt, capital and valuation analysis coupled with succession, estate and wealth planning strategies, enables us to provide a unique boutique level of service to business owners and middle market clients.”

Deposits / Funding / Balance Sheet Management

Net asset growth of $151 million and paydowns of overnight borrowings of $88 million and brokered (overnight) interest-bearing deposits of $50 million in the September 2015 quarter were principally funded by customer deposit growth of $274 million. Mr. Kennedy said, “As I noted in last quarter’s release, we saw much of our June 30 deposit pipeline fund throughout July, eliminating our June 30^th overnight borrowing position.” Mr. Kennedy went on to say, “Customer deposit growth throughout the September quarter was very strong. A portion of this growth was due to a New York City based family office which opened a multiple account core deposit relationship.”

Although brokered interest-bearing demand (“overnight”) deposits decreased $50 million to $243 million at September 30, 2015, these deposits continue to be maintained as an additional source of liquidity. The interest rate paid on these deposits allows the Bank to fund at attractive rates and engage in interest rate swaps to hedge its asset-liability interest rate risk. The Company ensures ample available collateralized liquidity as a backup to these short term brokered deposits.

From a liquidity/funding perspective, such brokered deposits, at a direct cost of approximately 25 basis points (excluding costs of hedging), are generally a more cost effective alternative than borrowings which require pledged collateral when drawn, as secured wholesale borrowings do. From a balance sheet management perspective, the rate paid on these short term brokered deposits enables their use in swap transactions for an efficient hedging/interest rate risk management program. As of September 30, 2015, the Company had transacted pay fixed, receive floating interest rate swaps totaling $180 million notional amount.

Certificates of deposit have also been utilized more extensively in 2015 compared to prior periods. The majority of these deposits have been longer term and have generally been transacted as part of the Company’s interest rate risk management. These certificates of deposit are also a more cost effective alternative than other borrowings of similar duration.

Mr. Kennedy noted, “The Company will continue to place an intense focus on providing high touch client service and growing its core deposit base. Our full array of treasury management products will help support both core deposit growth and commercial lending opportunities.”

Wealth Management Business

In the September 2015 quarter, Peapack-Gladstone Bank’s wealth management business generated $4.17 million in fee income compared to $4.53 million for the June 2015 quarter. The June quarter included $399 thousand of fees related to tax return preparation which is seasonal to that quarter. John P. Babcock, President of Private Wealth Management, noted, “Excluding the effect of the tax return preparation fees, wealth management fees for the September 2015 quarter were generally flat to the fee income in the June 2015 quarter, notwithstanding an approximate 8 percent decline in the S&P index during the September 2015 quarter. The effect of the associated market value declines were positively offset by continued strong new business and new client acquisitions.”

The September 2015 quarter’s wealth management fees reflected an increase of $508 thousand or 14 percent when compared to fees for the same 2014 quarter. The growth in fee income was due to a combination of our acquisition of Wealth Management Consultants, LLC (WMC) which closed in May 2015, as well as new business.

The market value of the assets under administration (AUA) of the wealth management division was $3.25 billion at September 30, 2015, down approximately 6 percent from $3.45 billion at June 30, 2015 due to investment value depreciation due to market conditions, but up 14 percent from $2.86 billion at September 30, 2014 due to the WMC acquisition as well as new business.

Mr. Babcock said, “We continue to incorporate wealth into every conversation we have with all of the Company’s clients, across all business lines. We have expanded our wealth management team and will continue to grow our team and expand the products, services, and advice we deliver to our clients. Despite the headwinds from Q3 market action going into the fourth quarter, we continue to remain optimistic and see continued strong growth in this business segment.”

Other Noninterest Income

Service charges and fees for the September 2015 quarter were $832 thousand, compared to $829 thousand for the September 2014 quarter. Several categories reflected improvement in the quarter, including income from debit card usage as well as account analysis fees. These increases were offset by reduced overdraft/NSF fees.

The September 2015 quarter included $102 thousand of income from the sale of newly originated residential mortgage loans (mortgage banking), up from $87 thousand in the same 2014 quarter. The volume of residential loans originated for sale was slightly greater in the 2015 period compared to the 2014 period.

Securities gains were $83 thousand for the September 2015 quarter compared to $39 thousand for the September 2014 quarter. Sales of securities have been generally employed to benefit interest rate risk, prepayment risk, and/or liquidity risk. Given the duration of our investment portfolio and the interest rate environment, as well as the future outlook, we anticipate such sales will continue to be a very small component of the Company’s operations.

Other income of $164 thousand for the September 2015 quarter was generally flat to the September 2014 quarter, but down $381 thousand from the June 2015 quarter. The June 2015 quarter included $373 thousand of fee income related to the Company’s loan level / back-to-back swap program, while the September quarter did not include any fee income from this program. The program utilizes mirror interest rate swaps, one directly with the loan customer and one directly with a well-established counterparty. This enables a loan customer to benefit from a fixed rate loan, while the Company records a floating rate loan. The program provides enhanced interest rate risk management, as well as the potential for fee income for the Company. While the Company cannot predict the amount of fee income that may be recognized each period, this program is a part of ongoing operations.

Operating Expenses

The Company’s total operating expenses were $16.90 million for the quarter ended September 30, 2015 compared to $14.69 million in the same 2014 quarter, reflecting a net increase of $2.21 million. The increase in total operating expenses is in line with our Strategic Plan.

Salary and benefits expense increased in the September 2015 quarter when compared to the same quarter last year due to strategic hiring in line with the Company’s Plan. Also contributing to the increase was the acquisition of WMC. Additionally, normal salary increases and increased bonus/incentive accruals associated with the Company’s growth contributed to the increase.

Premises and equipment expense and FDIC insurance expense for the quarter ended September 30, 2015 increased when compared to the same quarter last year. The increases were consistent with the Company’s continued growth.

Other expenses for the September 2015 quarter increased when compared to the September 2014 quarter. The current 2015 period included: a $250 thousand provision for losses on REO, increased wealth management division expenses due to growth in the business as well as the WMC acquisition, and increased professional fee expenses associated with the Company’s growth, as well as various project work.

Mr. Kennedy noted, “Expense increases continue to track to our Plan. We expect that the trend of higher operating expenses will continue, as we continue to bring on high caliber revenue producers and invest in our infrastructure, in line with our Plan. Further, we generally expect revenue and profitability related to new revenue producers to lag those expenses by several quarters. It is important to note, however, that our plan has delivered positive operating leverage as evidenced by revenue growth outpacing expense growth, which has caused our Efficiency Ratio to improve. Our Efficiency Ratio was 61 percent for the September 2015 quarter, reflecting an improvement from 67 percent for the September 2014 quarter. Additionally, total expenses as a percentage of average assets has improved to 2.07 percent for the September 2015 quarter from 2.39 percent for the September 2014.”

Mr. Kennedy also said, “After completing a comprehensive analysis of our branch locations, we have decided to close two of our branch offices. Our analysis included review of transaction volume; deposit source, mix and balances; deposit growth opportunities; market share; and profitability. Our branches located at 1038 Stelton Road in Piscataway (“Piscataway”) and at 54 Morris and Essex Turnpike on the Short Hills/Summit border (“Short Hills”) will be closed in December 2015. However, we plan on repositioning our Short Hills office as a non-branch financial services office. Due to the nature of the deposits in both locations, as well as the close proximity of our other Summit branch to the Short Hills location, we anticipate that we will retain the majority of deposits. While we anticipate an approximate $2.4 million to $3.0 million pretax charge (approximately $1.5 million to $1.8 million after tax) in Q4 2015 related to these closures, we expect expense saves that will recoup that charge in three years or less.”

Provision for Loan Losses / Asset Quality

For the quarter ended September 30, 2015, the Company’s provision for loan losses was $1.60 million, compared to $1.15 million for the September 2014 quarter. Charge-offs, net of recoveries, for the third quarter of 2015 year were only $195 thousand. The larger provision in 2015 was due to loan growth, as well as greater qualitative factor allocations of the allowance to C&I and Commercial Real Estate loans.

At September 30, 2015 the allowance for loan losses was $24.37 million, 320 percent of nonperforming loans and 0.85 percent of total loans, compared to $18.30 million, 208 percent of nonperforming loans and 0.90 percent of total loans one year prior, at September 30, 2014.

The Company’s provision for loan losses and its allowance for loan losses continue to track consistently with the Company’s net loan growth and asset quality metrics.

Nonperforming assets at September 30, 2015 were just $7.9 million or 0.24 percent of total assets. Total loans past due 30 through 89 days and still accruing were only $2.7 million at September 30, 2015.

Capital / Dividends

The Company’s capital position in the September 2015 quarter was benefitted by net income of $5.4 million and also by $4.3 million of voluntary share purchases in the Dividend Reinvestment Plan, which continue to be a source of capital for the company.

At September 30, 2015, the Company’s leverage, common equity tier 1, tier 1 and total risk based capital ratios were 8.10 percent, 12.44 percent, 12.44 percent and 13.59 percent, respectively. The Company’s ratios are all above the respective 5 percent, 6.5 percent, 8 percent, and 10 percent levels required to be considered well capitalized under regulatory guidelines applicable to banks.

As previously announced on October 22, 2015, the Board of Directors declared a regular cash dividend of $0.05 per share payable on November 20, 2015 to shareholders of record on November 5, 2015.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $3.27 billion as of September 30, 2015. Founded in 1921, Peapack-Gladstone Bank is a commercial bank that provides innovative private banking services to businesses, non-profits and consumers, which help them to establish, maintain and expand their legacy. Through its private banking locations in Bedminster, Morristown, Princeton and Teaneck, its wealth management division, and its branch network and online platforms, Peapack-Gladstone Bank offers an unparalleled commitment to client service.

The foregoing contains 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

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;

inability to manage our growth;

inability to successfully integrate our expanded employee base;

a continued or 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 low interest rate environment and highly competitive market;

declines in value in our investment portfolio

higher than expected increases in our allowance for loan losses;

higher than expected increases in loan losses or in the level of nonperforming loans;

unexpected changes in interest rates;

a continued or unexpected 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) subject us to additional regulatory oversight which may result in increased compliance costs;

successful cyberattacks against our IT infrastructure and that of our IT providers;

higher than expected FDIC insurance premiums;

adverse weather conditions;

inability to successfully generate new business in new geographic markets;

inability to execute upon new business initiatives;

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; 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, 2014. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Corporation’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 CORPORATION

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in Thousands)

(Unaudited)

	As of
	Sept 30,		June 30,		March 31,		Dec 31,		Sept 30,
	2015		2015		2015		2014		2014
ASSETS
Cash and due from banks	$	10,695	$	6,205	$	7,439	$	6,621	$	6,596
Federal funds sold		101		101		101		101		101
Interest-earning deposits		65,402		32,382		65,283		24,485		114,124
Total cash and cash equivalents		76,198		38,688		72,823		31,207		120,821

Securities available for sale		220,930		245,897		276,119		332,652		269,550
FHLB and FRB stock, at cost		11,737		15,590		10,598		11,593		9,121

Loans held for sale		27,524		745		4,245		839		351

Residential mortgage		469,865		470,863		466,333		466,760		470,030
Multifamily mortgage		1,444,334		1,371,139		1,214,714		1,080,256		928,054
Commercial mortgage		399,592		375,440		339,037		308,491		332,507
Commercial loans		456,611		438,461		336,079		308,743		225,814
Construction loans		1,409		1,417		5,777		5,998		6,025
Consumer loans		32,563		29,996		28,206		28,040		27,597
Home equity lines of credit		50,370		51,675		50,399		50,141		48,200
Other loans		483		2,947		1,755		1,838		2,560
Total loans		2,855,227		2,741,938		2,442,300		2,250,267		2,040,787
Less: Allowances for loan losses		24,374		22,969		20,816		19,480		18,299
Net loans		2,830,853		2,718,969		2,421,484		2,230,787		2,022,488

Premises and equipment		31,310		31,637		32,068		32,258		30,825
Other real estate owned		330		956		1,103		1,324		949
Accrued interest receivable		6,839		6,451		5,943		5,371		5,126
Bank owned life insurance		32,727		32,565		32,404		32,634		32,448
Deferred tax assets, net		14,613		12,673		10,458		10,491		11,661
Other assets		15,902		13,999		12,212		13,241		11,181
TOTAL ASSETS	$	3,268,963	$	3,118,170	$	2,879,457	$	2,702,397	$	2,514,521

LIABILITIES
Deposits:
Noninterest-bearing demand deposits	$	399,200	$	386,588	$	377,399	$	366,371	$	383,268
Interest-bearing demand deposits		829,970		667,847		634,580		600,889		558,537
Savings		117,665		120,606		115,515		112,878		111,897
Money market accounts		792,685		717,246		714,466		700,069		713,383
Certificates of deposit - Retail		411,335		384,235		310,678		198,819		165,834
Subtotal “customer” deposits		2,550,855		2,276,522		2,152,638		1,979,026		1,932,919
IB Demand - Brokered		243,000		293,000		263,000		188,000		138,000
Certificates of deposit - Brokered		93,690		94,224		106,694		131,667		132,500
Total deposits		2,887,545		2,663,746		2,522,332		2,298,693		2,203,419

Overnight borrowings		—		87,500		—		54,600		—
Federal home loan bank advances		83,692		83,692		83,692		83,692		83,692
Capital lease obligation		10,350		10,475		10,594		10,712		9,734
Other liabilities		19,448		14,881		13,486		12,433		12,646
Due to brokers, securities settlements		1,528		—		—		—		16,960
TOTAL LIABILITIES		3,002,563		2,860,294		2,630,104		2,460,130		2,326,451
Shareholders’ equity		266,400		257,876		249,353		242,267		188,070
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY	$	3,268,963	$	3,118,170	$	2,879,457	$	2,702,397	$	2,514,521


Assets under administration at
Peapack-Gladstone Bank’s
Wealth Management Division
(market value, not included above)	$	3,250,835	$	3,445,939	$	3,053,110	$	2,986,623	$	2,857,727

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in Thousands)

(Unaudited)

	As of
	Sept 30,			June 30,			March 31,			Dec 31,			Sept 30,
	2015			2015			2015			2014			2014
Asset Quality:
Loans past due over 90 days
and still accruing	$	—		$	—		$	—		$	—		$	—
Nonaccrual loans		7,615			7,111			6,335			6,850			8,790
Other real estate owned		330			956			1,103			1,324			949
Total nonperforming assets	$	7,945		$	8,067		$	7,438		$	8,174		$	9,739

Nonperforming loans to
total loans		0.27	%		0.26	%		0.26	%		0.30	%		0.43	%
Nonperforming assets to
total assets		0.24	%		0.26	%		0.26	%		0.30	%		0.39	%

Accruing TDR’s (A)	$	14,609		$	13,695		$	13,561		$	13,601		$	13,045

Loans past due 30 through 89
days and still accruing	$	2,748		$	1,744		$	2,481		$	1,755		$	2,278

Classified loans	$	41,985		$	38,676		$	38,450		$	35,809		$	34,752

Impaired loans	$	22,224		$	20,806		$	19,896		$	20,451		$	21,834

Allowance for loan losses:
Beginning of period	$	22,969		$	20,816		$	19,480		$	18,299		$	17,204
Provision for loan losses		1,600			2,200			1,350			1,250			1,150
Charge-offs, net		(195	)		(47	)		(14	)		(69	)		(55	)
End of period	$	24,374		$	22,969		$	20,816		$	19,480		$	18,299


ALLL to nonperforming loans		320.08	%		323.01	%		328.59	%		284.38	%		208.18	%
ALLL to total loans		0.85	%		0.84	%		0.85	%		0.87	%		0.90	%

Capital Adequacy
Tier I leverage		8.10	%		8.48	%		8.80	%		9.11	%		7.57	%

Tier I capital to risk weighted assets		12.44	%		12.46	%		13.57	%		14.38	%		12.16	%

Common equity tier I capital ratio
to risk-weighted assets (B)		12.44	%		12.46	%		13.57	%		N/A			N/A

Tier I & II capital to
risk-weighted assets		13.59	%		13.58	%		14.71	%		15.55	%		13.36	%

Equity to total assets		8.15	%		8.27	%		8.66	%		8.96	%		7.48	%
(end of period)

Book value per share (C) (D)	$	17.33		$	17.02		$	16.61		$	16.36		$	15.80

(A)

Does not include $2.8 million at September 30, 2015, $2.2 million at June 30, 2015, $1.4 million at March 31, 2015, $1.4 million at December 31, 2014, and $2.4 million at September 30, 2014 of TDR’s included in nonaccrual loans.

(B)

New capital ratio required under Basel III effective March 31, 2015.

(C)

Shares included in the book value per share calculation are shares outstanding at period end less the restricted shares that have not yet vested.

(D)

Tangible book value per share was $17.12 at September 30, 2015, $16.80 at June 30, 2015, $16.57 at March 31, 2015, $16.32 at December 31, 2014, and $15.75 at September 30, 2014. Tangible book value per share is different than book value per share because it excludes intangible assets. See Non-GAAP financial measures reconciliation included in these tables.

PEAPACK-GLADSTONE FINANCIAL CORPORATION

LOANS CLOSED

(Dollars in Thousands)

(Unaudited)

	For the Quarters Ended
	Sept 30,		June 30,		March 31,		Dec 31,		Sept 30,
	2015		2015		2015		2014		2014

Residential loans retained	$	20,623	$	23,117	$	16,986	$	10,661	$	20,540
Residential loans sold		6,078		10,978		8,938		8,230		5,561
Total residential loans		26,701		34,095		25,924		18,891		26,101

CRE (includes
Community banking)		47,450		29,561		57,787		14,953		3,208
Multifamily (includes
Community banking)		149,763		206,803		209,034		172,021		105,584
Commercial loans (includes
Community banking)		37,361		136,483		40,696		89,905		74,029
Wealth lines of credit		24,000		6,150		10,260		—		—
Total commercial loans		258,574		378,997		317,777		276,879		182,821

Installment loans		933		1,128		344		2,015		9,410

Home equity lines of credit		3,775		3,225		3,377		4,140		2,550

Total loans closed	$	289,983	$	417,445	$	347,422	$	301,925	$	220,882

	For the Nine Months Ended
	Sept 30,		Sept 30,
	2015		2014
Residential loans retained	$	60,726	$	49,438
Residential loans sold		25,994		19,916
Total residential loans		86,720		69,354

CRE (includes
Community banking)		134,798		39,224
Multifamily (includes
Community banking)		565,600		480,664
Commercial loans (includes
Community banking)		214,540		152,654
Wealth lines of credit		40,410		—
Total commercial loans		955,348		672,542

Installment loans		2,405		16,471

Home equity lines of credit		10,377		13,927

Total loans closed	$	1,054,850	$	772,294

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

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in Thousands, except share data)

(Unaudited)

	For the Three Months Ended
	Sept 30,			June 30,			March 31,			Dec 31,			Sept 30,
	2015			2015			2015			2014			2014
Income Statement Data:
Interest income	$	25,806		$	23,852		$	22,361		$	20,786		$	19,210
Interest expense		4,100			3,508			2,778			2,434			2,162
Net interest income		21,706			20,344			19,583			18,352			17,048
Provision for loan losses		1,600			2,200			1,350			1,250			1,150
Net interest income after
provision for loan losses		20,106			18,144			18,233			17,102			15,898
Wealth management fee income		4,169			4,532			4,031			3,822			3,661
Service charges and fees		832			837			805			880			829
Bank owned life insurance		260			248			537			274			276
Gain on loans held for sale at fair
value (Mortgage banking)		102			161			148			128			87
(Loss)/gain on loans held for sale at
lower of cost or fair value		—			—			—			(3	)		(7	)
Other income		164			545			93			142			167
Securities gains, net		83			176			268			44			39
Total other income		5,610			6,499			5,882			5,287			5,052
Salaries and employee benefits		10,322			9,872			9,425			9,188			9,116
Premises and equipment		2,785			2,778			2,616			2,627			2,564
FDIC insurance expense		416			431			482			453			350
Other expenses		3,376			3,185			3,245			3,310			2,663
Total operating expenses		16,899			16,266			15,768			15,578			14,693
Income before income taxes		8,817			8,377			8,347			6,811			6,257
Income tax expense		3,434			3,139			3,339			2,599			2,393
Net income	$	5,383		$	5,238		$	5,008		$	4,212		$	3,864


Total revenue	$	27,316		$	26,843		$	25,465		$	23,639		$	22,100


Per Common Share Data:

Earnings per share (basic)	$	0.35		$	0.34		$	0.34		$	0.32		$	0.33
Earnings per share (diluted)		0.35			0.34			0.33			0.32			0.32

Weighted average number of
common shares outstanding:
Basic		15,253,009			15,082,516			14,909,722			13,037,947			11,841,777
Diluted		15,435,939			15,233,151			15,070,352			13,163,877			11,956,356

Performance Ratios:

Return on average assets
annualized		0.66	%		0.70	%		0.71	%		0.64	%		0.63	%
Return on average common
equity annualized		8.19	%		8.24	%		8.13	%		8.01	%		8.35	%
Net interest margin
(taxable equivalent basis)		2.75	%		2.80	%		2.88	%		2.89	%		2.89	%
Efficiency ratio (A)		61.14	%		61.00	%		62.58	%		66.01	%		66.58	%
Operating expenses / average
assets annualized		2.07	%		2.16	%		2.24	%		2.36	%		2.39	%

(A)

Calculated as (total operating expenses, excluding provision for losses on REO) as a percentage of (net interest income plus noninterest income less gain on securities and loss or gain on loans held for sale at lower of cost or fair value). See Non-GAAP financial measures reconciliation included in these tables.

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in Thousands, except share data)

(Unaudited)

	For the
	Nine Months Ended
	September 30,						Change
Income Statement Data:	2015			2014			$			%
Interest income	$	72,019		$	54,789		$	17,230			31	%
Interest expense		10,386			5,247			5,139			98	%
Net interest income		61,633			49,542			12,091			24	%
Provision for loan losses		5,150			3,625			1,525			42	%
Net interest income after
provision for loan losses		56,483			45,917			10,566			23	%
Wealth management fee income		12,732			11,420			1,312			11	%
Service charges and fees		2,474			2,231			243			11	%
Bank owned life insurance		1,045			818			227			28	%
Gain on loans held for sale at fair
Value (Mortgage banking)		411			310			101			33	%
(Loss)/gain on loans held for sale at
lower of cost or fair value		—			169			(169	)		-100	%
Other income		802			356			446			125	%
Securities gains, net		527			216			311			144	%
Total other income		17,991			15,520			2,471			16	%
Salaries and employee benefits		29,619			27,053			2,566		��	9	%
Premises and equipment		8,179			7,336			843			11	%
FDIC insurance expense		1,329			928			401			43	%
Other expenses		9,806			8,645			1,161			13	%
Total operating expenses		48,933			43,962			4,971			11	%
Income before income taxes		25,541			17,475			8,066			46	%
Income tax expense		9,912			6,797			3,115			46	%
Net income	$	15,629		$	10,678			4,951			46	%


Total revenue (See footnote (A) below)	$	79,624		$	65,062			14,562			22	%


Per Common Share Data:

Earnings per share (basic)	$	1.04		$	0.91		$	0.13			14	%
Earnings per share (diluted)		1.02			0.90			0.12			13	%

Weighted average number of
common shares outstanding:
Basic		15,083,006			11,723,873			3,359,133			29	%
Diluted		15,293,747			11,833,507			3,460,240			29	%

Performance Ratios:

Return on average assets annualized		0.69	%		0.63	%		0.06	%		10	%
Return on average common equity annualized		8.19	%		7.95	%		0.24	%		3	%

Net interest margin (taxable equivalent basis)		2.81	%		3.06	%		-0.25			-8	%

Efficiency ratio (B)		61.55	%		67.35	%		-5.80			-9	%

Operating expenses / average assets annualized		2.15	%		2.60	%		-0.45			-17	%

(A)

Total revenue includes a $169 thousand gain (for 2014) from sale of loans held for sale at lower of cost or fair value. Excluding this gain, total revenue was $64,893 (for 2014).

(B)

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

	September 30, 2015								September 30, 2014
	Average			Income/					Average			Income/
	Balance			Expense		Yield			Balance			Expense		Yield
ASSETS:
Interest-earning assets:
Investments:
Taxable (1)	$	214,967		$	959		1.78	%	$	192,207		$	960		2.00	%
Tax-exempt (1) (2)		30,682			211		2.76			47,701			268		2.25
Loans held for sale		1,075			10		3.76			1,026			10		3.90
Loans (2) (3):
Mortgages		465,603			3,796		3.26			464,227			3,879		3.34
Commercial mortgages		1,839,312			16,119		3.51			1,231,798			11,790		3.83
Commercial		454,239			4,132		3.64			166,092			1,597		3.85
Commercial construction		1,742			18		4.13			6,029			65		4.31
Installment		31,361			268		3.42			24,965			249		3.99
Home equity		51,012			415		3.25			48,371			394		3.26
Other		510			12		9.41			563			13		9.24
Total loans		2,843,779			24,760		3.48			1,942,045			17,987		3.70
Federal funds sold		101			—		0.10			101			—		0.10
Interest-earning deposits		96,308			46		0.19			197,705			109		0.22
Total interest-earning assets		3,186,912			25,986		3.26	%		2,380,785			19,334		3.25	%
Noninterest-Earning Assets:
Cash and due from banks		7,434								6,262
Allowance for loan losses		(23,726	)							(17,720	)
Premises and equipment		31,574								30,985
Other assets		68,067								60,717
Total noninterest-earning assets		83,349								80,244
Total assets	$	3,270,261							$	2,461,029

LIABILITIES:
Interest-bearing deposits:
Checking	$	810,106		$	356		0.18	%	$	541,920		$	232		0.17	%
Money markets		757,135			546		0.29			689,721			430		0.25
Savings		118,329			17		0.06			113,802			15		0.05
Certificates of deposit – retail		403,593			1,296		1.28			158,472			357		0.90
Subtotal interest-bearing deposits		2,089,163			2,215		0.42			1,503,915			1,034		0.28
Interest-bearing demand - brokered		292,456			857		1.17			138,000			84		0.24
Certificates of deposit – brokered		93,907			504		2.15			144,872			550		1.52
Total interest-bearing deposits		2,475,526			3,576		0.58			1,786,787			1,668		0.37
Borrowings		107,770			399		1.48			83,692			377		1.80
Capital lease obligation		10,394			125		4.81			9,770			117		4.79
Total interest-bearing liabilities		2,593,690			4,100		0.63			1,880,249			2,162		0.46
Noninterest-bearing liabilities:
Demand deposits		398,181								383,423
Accrued expenses and
other liabilities		15,619								12,165
Total noninterest-bearing liabilities		413,800								395,588
Shareholders’ equity		262,771								185,192
Total liabilities and
shareholders’ equity	$	3,270,261							$	2,461,029
Net interest income				$	21,886							$	17,172
Net interest spread							2.63	%							2.79	%
Net interest margin (4)							2.75	%							2.89	%

(1)	Average balances for available for sale securities are based on amortized cost.
(2)	Interest income is presented on a tax-equivalent basis using a 35 percent federal tax rate.
(3)	Loans are stated net of unearned income and include nonaccrual loans.
(4)	Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

	September 30, 2015								June 30, 2015
	Average			Income/					Average			Income/
	Balance			Expense		Yield			Balance			Expense		Yield
ASSETS:
Interest-earning assets:
Investments:
Taxable (1)	$	214,967		$	959		1.78	%	$	244,087		$	1,037		1.70	%
Tax-exempt (1) (2)		30,682			211		2.76			30,941			210		2.71
Loans held for sale		1,075			10		3.76			2,049			24		4.64
Loans (2) (3):
Mortgages		465,603			3,796		3.26			466,033			3,800		3.26
Commercial mortgages		1,839,312			16,119		3.51			1,663,150			14,767		3.55
Commercial		454,239			4,132		3.64			360,517			3,347		3.71
Commercial construction		1,742			18		4.13			5,713			61		4.27
Installment		31,361			268		3.42			29,169			256		3.51
Home equity		51,012			415		3.25			51,710			417		3.23
Other		510			12		9.41			527			12		9.11
Total loans		2,843,779			24,760		3.48			2,576,819			22,660		3.52
Federal funds sold		101			—		0.10			101			—		0.10
Interest-earning deposits		96,308			46		0.19			69,780			39		0.22
Total interest-earning assets		3,186,912			25,986		3.26	%		2,923,777			23,970		3.28	%
Noninterest-Earning Assets:
Cash and due from banks		7,434								6,385
Allowance for loan losses		(23,726	)							(21,493	)
Premises and equipment		31,574								31,983
Other assets		68,067								66,131
Total noninterest-earning assets		83,349								83,006
Total assets	$	3,270,261							$	3,006,783

LIABILITIES:
Interest-bearing deposits:
Checking	$	810,106		$	356		0.18	%	$	670,473		$	359		0.21	%
Money markets		757,135			546		0.29			703,236			461		0.26
Savings		118,329			17		0.06			117,411			16		0.05
Certificates of deposit – retail		403,593			1,296		1.28			343,781			1,051		1.22
Subtotal interest-bearing deposits		2,089,163			2,215		0.42			1,834,901			1,887		0.41
Interest-bearing demand - brokered		292,456			857		1.17			265,802			563		0.85
Certificates of deposit – brokered		93,907			504		2.15			98,191			504		2.05
Total interest-bearing deposits		2,475,526			3,576		0.58			2,198,894			2,954		0.54
Borrowings		107,770			399		1.48			146,441			428		1.17
Capital lease obligation		10,394			125		4.81			10,515			126		4.79
Total interest-bearing liabilities		2,593,690			4,100		0.63			2,355,850			3,508		0.60
Noninterest-bearing liabilities:
Demand deposits		398,181								384,604
Accrued expenses and
other liabilities		15,619								12,133
Total noninterest-bearing liabilities		413,800								396,737
Shareholders’ equity		262,771								254,196
Total liabilities and
shareholders’ equity	$	3,270,261							$	3,006,783
Net interest income				$	21,886							$	20,462
Net interest spread							2.63	%							2.68	%
Net interest margin (4)							2.75	%							2.80	%

(1)	Average balances for available for sale securities are based on amortized cost.
(2)	Interest income is presented on a tax-equivalent basis using a 35 percent federal tax rate.
(3)	Loans are stated net of unearned income and include nonaccrual loans.
(4)	Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

NINE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

	September 30, 2015								September 30, 2014
	Average			Income/					Average			Income/
	Balance			Expense		Yield			Balance			Expense		Yield
ASSETS:
Interest-earning assets:
Investments:
Taxable (1)	$	244,117		$	3,178		1.74	%	$	196,313		$	2,998		2.04	%
Tax-exempt (1) (2)		33,059			652		2.63			55,209			917		2.21
Loans held for sale		1,301			44		4.49			1,124			35		4.17
Loans (2) (3):
Mortgages		465,785			11,380		3.26			497,692			12,635		3.38
Commercial mortgages		1,655,501			44,475		3.58			1,108,732			31,943		3.84
Commercial		377,461			10,376		3.67			147,666			4,442		4.01
Commercial construction		4,446			141		4.23			5,989			197		4.39
Installment		29,454			776		3.51			22,906			710		4.13
Home equity		51,129			1,237		3.23			47,569			1,149		3.22
Other		522			37		9.45			562			39		9.25
Total loans		2,584,298			68,422		3.53			1,831,116			51,115		3.72
Federal funds sold		101			—		0.10			101			—		0.10
Interest-earning deposits		85,932			128		0.20			94,120			142		0.20
Total interest-earning assets		2,948,808			72,424		3.27	%		2,177,983			55,207		3.38	%
Noninterest-Earning Assets:
Cash and due from banks		6,877								6,548
Allowance for loan losses		(21,772	)							(17,012	)
Premises and equipment		31,935								30,966
Other assets		66,038								60,216
Total noninterest-earning assets		83,078								80,718
Total assets	$	3,031,886							$	2,258,701

LIABILITIES:
Interest-bearing deposits:
Checking	$	704,558		$	1,028		0.19	%	$	458,811		$	438		0.13	%
Money markets		723,824			1,470		0.27			666,986			1,137		0.23
Savings		116,410			48		0.05			115,746			45		0.05
Certificates of deposit – retail		332,315			3,010		1.21			154,091			1,081		0.94
Subtotal interest-bearing deposits		1,877,107			5,556		0.39			1,395,634			2,701		0.26
Interest-bearing demand - brokered		266,443			1,700		0.85			117,348			198		0.22
Certificates of deposit – brokered		106,048			1,532		1.93			86,986			845		1.30
Total interest-bearing deposits		2,249,598			8,788		0.52			1,599,968			3,744		0.31
Borrowings		121,277			1,219		1.34			97,359			1,149		1.57
Capital lease obligation		10,514			379		4.81			9,861			354		4.79
Total interest-bearing liabilities		2,381,389			10,386		0.58			1,707,188			5,247		0.41
Noninterest-bearing liabilities:
Demand deposits		383,161								361,726
Accrued expenses and
other liabilities		12,852								10,597
Total noninterest-bearing liabilities		396,013								372,323
Shareholders’ equity		254,484								179,190
Total liabilities and
shareholders’ equity	$	3,031,886							$	2,258,701
Net interest income				$	62,038							$	49,960
Net interest spread							2.69	%							2.97	%
Net interest margin (4)							2.81	%							3.06	%

(1)	Average balances for available for sale securities are based on amortized cost.
(2)	Interest income is presented on a tax-equivalent basis using a 35 percent federal tax rate.
(3)	Loans are stated net of unearned income and include nonaccrual loans.
(4)	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 period end common shares outstanding less restricted shares not yet vested, as compared to book value per common share, which we calculate by dividing shareholders’ equity by period end common shares outstanding less restricted shares not yet vested. 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
	Sept 30,			June 30,			March 31,			Dec 31,			Sept 30,
Tangible Book Value Per Share	2015			2015			2015			2014			2014
Shareholders’ equity	$	266,400		$	257,876		$	249,353		$	242,267		$	188,070
Less: Intangible assets		3,311			3,342			563			563			563
Tangible equity		263,089			254,534			248,790			241,704			187,507

Period end shares outstanding		15,805,815			15,592,168			15,440,430			15,155,717			12,286,821
Less: Restricted shares not yet vested		435,312			436,908			429,642			345,095			382,252
Total outstanding shares		15,370,503			15,155,260			15,010,788			14,810,622			11,904,569
Tangible book value per share		17.12			16.80			16.57			16.32			15.75
Book value per share		17.33			17.02			16.61			16.36			15.80

Tangible Equity to Tangible Assets
Total Assets		3,268,963			3,118,170			2,879,457			2,702,397			2,514,521
Less: Intangible assets		3,311			3,342			563			563			563
Tangible assets		3,265,652			3,114,828			2,878,894			2,701,834			2,513,958
Tangible equity to tangible assets		8.06	%		8.17	%		8.64	%		8.95	%		7.46	%
Equity to assets		8.15	%		8.27	%		8.66	%		8.96	%		7.48	%

	Three Months Ended
	Sept 30,			June 30,			March 31,			Dec 31,			Sept 30,
Efficiency Ratio	2015			2015			2015			2014			2014

Net interest income	$	21,706		$	20,344		$	19,583		$	18,352		$	17,048
Total other income		5,610			6,499			5,882			5,287			5,052
Less: (Loss)/gain on loans
held for sale at lower of cost
or fair value		—			—			—			(3	)		(7	)
Less: Securities gains, net		83			176			268			44			39
Total recurring revenue		27,233			26,667			25,197			23,598			22,068

Operating expenses		16,899			16,266			15,768			15,578			14,693
Less: ORE provision		250			—			—			—			—
Total operating expenses		16,649			16,266			15,768			15,578			14,693

Efficiency ratio		61.14	%		61.00	%		62.58	%		66.01	%		66.58	%

	Nine Months Ended
	Sept 30,			Sept 30,
Efficiency Ratio	2015			2014

Net interest income	$	61,633		$	49,542
Total other income		17,991			15,520
Less: Gain on loans
held for sale at lower of cost
or fair value		—			169
Less: Securities gains, net		527			216
Total recurring revenue		79,097			64,677

Operating expenses		48,933			43,962
Less: ORE provision		250			400
Total operating expenses		48,683			43,562

Efficiency ratio		61.55	%		67.35	%

Peapack-Gladstone Financial (PGC) 8-KReports Another Quarter of Strong Results