Exhibit 99.1

Contact:

Jeffrey J. Carfora, SEVP and CFO

Peapack-Gladstone Financial Corporation

T: 908-719-4308

PEAPACK-GLADSTONE FINANCIAL CORPORATION

REPORTS THIRD QUARTER RESULTS,

AS RECORD WEALTH MANAGEMENT FEE INCOME DRIVES TOTAL FEE

INCOME TO 34% OF TOTAL REVENUE

Bedminster, N.J.– October 28, 2021 – Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the “Company”) announces its third quarter 2021 results.

This earnings release should be read in conjunction with the Company’s Q3 2021 Investor Update (and Supplemental Financial Information), a copy of which is available on our website at www.pgbank.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.  

For the nine months ended September 30, 2021, the Company recorded total revenue of $154.13 million, net income of $41.77 million and diluted earnings per share (“EPS”) of $2.15 compared to revenue of $143.22 million, net income of $23.16 million and diluted EPS of $1.22, respectively, for the same nine-month period ended September 30, 2020. The revenue improvement was driven by increased wealth management fee income, net interest income and gain on the sale of SBA loans, partially offset by reduced gain on sale of PPP loans.

For the quarter ended September 30, 2021, the Company recorded total revenue of $52.99 million, net income of $14.17 million and diluted earnings per share (“EPS”) of $0.74, compared to revenue of $52.36 million, net income of $13.55 million and diluted EPS of $0.71, respectively, for the same three-month period ended September 30, 2020.

The three and nine months ended September 30, 2020 included a $7.4 million gain on sale of PPP loans. The 2020 periods also included a much higher provision for loan losses than the 2021 periods, due to the environment in 2020 created by the COVID-19 pandemic, which led to increased qualitative loss factors when calculating the allowance for loan losses.

The September 2021 quarter included increased noninterest income (when excluding the $7.4 million gain on sale of PPP loans in 2020), principally record wealth management fee income and income from capital markets activities (which includes mortgage banking income, SBA loan income, and corporate advisory fee income) when compared to the same quarter in 2020.

The September 2021 quarter also included a $1.35 million swap valuation allowance recorded in operating expenses related to an allowance for termination of a loan level, back-to-back swap on a commercial real estate loan placed on nonaccrual status.  

As previously disclosed, on January 28, 2021, the Company authorized the repurchase of up to 948,735 shares, or approximately 5% of its outstanding shares. During the third quarter of 2021 the Company purchased 227,060 shares at an average price of $32.73 for a total cost of $7.43 million. Through September 30, 2021, the Company has repurchased 619,815 shares at an average price of $31.33 for a total cost of $19.42 million, under the program.

Douglas L. Kennedy, President and CEO, said, “Our third quarter results showed continued growth in our wealth management and commercial banking businesses. Our pipelines for both of these businesses continue to be robust heading into the fourth quarter.”

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Mr. Kennedy also said, “In addition to record growth in wealth management fees year-to-date in 2021, we also saw strong growth in revenue from our capital markets activities. Increases in these areas year-over-year more than offset the $7.4 million of gains generated in 2020 from PPP loan sales.”  

EXECUTIVE SUMMARY:

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

September 2021 Year Compared to Prior Year

	Nine Months Ended			Nine Months Ended
	September 30,			September 30,			Increase/
(Dollars in millions, except per share data)	2021			2020			(Decrease)
Net interest income	$	100.85		$	95.87		$	4.98		5	%
Wealth management fee income (A)		39.03			30.07			8.96		30
Capital markets activity (B)		7.10			5.02			2.08		41
Other income (C)		7.15			12.26			(5.11	)	(42	)
Total other income		53.28			47.35			5.93		13
Operating expenses (A) (D)		94.46			85.71			8.75		10
Pretax income before provision for loan losses		59.67			57.51			2.16		4
Provision for loan and lease losses (E)		2.73			30.05			(27.32	)	(91	)
Pretax income		56.94			27.46			29.48		107
Income tax expense/(benefit) (F)		15.17			4.30			10.87		253
Net income	$	41.77		$	23.16		$	18.61		80	%
Diluted EPS	$	2.15		$	1.22		$	0.93		76	%
Total Revenue (G)	$	154.13		$	143.22		$	10.91		8	%
Return on average assets annualized		0.94	%		0.54	%		0.40
Return on average equity annualized		10.43	%		6.07	%		4.36

(A) The September 2021 nine months included nine months of wealth management fee income and expense related to the December hires of the teams from Lucas Capital Management (“Lucas”) and Noyes Capital Management (“Noyes”) and three months of wealth management fee income and expense related to the July acquisition of Princeton Portfolio Strategies Group (“PPSG”).

(B) Capital markets activity included fee income from loan level back-to-back swaps, the SBA lending and sale program, corporate advisory activities and mortgage banking activities. The September 2021 nine months included $1.3 million of corporate advisory fee income, the majority of which related to a large investment banking advisory event, which closed in the March 2021 quarter. There were no fees related to loan level back-to-back swap activities in the nine months ended September 30, 2021, compared to $1.6 million in the same 2020 period.  

(C) The 2021 nine months included a cost of $842,000 related to the termination of interest rate swaps; a $1.4 million gain on loans held at lower of cost or fair value; $722,000 of fee income related to the referral of PPP loans to a third party; and $455,000 of additional BOLI income related to receipt of life insurance proceeds.  The 2020 nine months included a $7.4 million gain on the sale of $355 million of PPP loans.

(D) The 2021 nine months included $1.5 million of severance expense related to certain corporate restructuring within several areas of the Bank; $648,000 of expense related to the redemption of subordinated debt; and $1.4 million related to a swap valuation allowance.  

(E) The 2020 nine months included a provision for loan and lease losses of $30.1 million, primarily due to the environment at that time created by the COVID-19 pandemic.

(F) The 2020 nine months 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.

(G) Total revenue equals net interest income plus total other income.

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September 2021 Quarter Compared to Prior Year Quarter

	Three Months Ended			Three Months Ended
	September 30,			September 30,			Increase/
(Dollars in millions, except per share data)	2021			2020			(Decrease)
Net interest income	$	35.21		$	32.15		$	3.06		10	%
Wealth management fee income (A)		13.86			10.12			3.74		37
Capital markets activity (B)		2.06			1.11			0.95		86
Other income (C)		1.86			8.98			(7.12	)	(79	)
Total other income		17.78			20.21			(2.43	)	(12	)
Operating expenses (A) (D)		32.18			28.46			3.72		13
Pretax income before provision for loan losses		20.81			23.90			(3.09	)	(13	)
Provision for loan and lease losses (E)		1.60			5.15			(3.55	)	(69	)
Pretax income		19.21			18.75			0.46		2
Income tax expense		5.04			5.20			(0.16	)	(3	)
Net income	$	14.17		$	13.55		$	0.62		5	%
Diluted EPS	$	0.74		$	0.71		$	0.03		4	%
Total Revenue (F)	$	52.99		$	52.36		$	0.63		1	%
Return on average assets annualized		0.95	%		0.89	%		0.06
Return on average equity annualized		10.40	%		10.53	%		(0.13	)

(A) The September 2021 quarter included a full quarter of wealth management fee income and expense related to the December hires of the teams from Lucas and Noyes and the July acquisition of PPSG.

(B) Capital markets activity included fee income from loan level back-to-back swaps, the SBA lending and sale program, corporate advisory activities, and mortgage banking activities.

(C) The quarter ended September 30, 2020 included a gain on sale of $7.4 million on the sale of $355 million of PPP loans.

(D) The September 2021 quarter included $1.4 million related to a swap valuation allowance.  

(E) The September 2020 quarter included a provision for loan and lease losses of $5.2 million, primarily due to the environment at that time created by the COVID-19 pandemic.

(F) Total revenue equals net interest income plus total other income.

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September 2021 Quarter Compared to Linked Quarter

	Three Months Ended			Three Months Ended
	September 30,			June 30,			Increase/
(Dollars in millions, except per share data)	2021			2021			(Decrease)
Net interest income	$	35.21		$	33.85		$	1.36		4	%
Wealth management fee income (A)		13.86			13.03			0.83		6
Capital markets activity (B)		2.06			1.46			0.60		41
Other income (C)		1.86			3.18			(1.32	)	(42	)
Total other income		17.78			17.67			0.11		1
Operating expenses (D)		32.18			30.68			1.50		5
Pretax income before provision for loan losses		20.81			20.84			(0.03	)	(0	)
Provision for loan and lease losses		1.60			0.90			0.70		78
Pretax income		19.21			19.94			(0.73	)	(4	)
Income tax expense		5.04			5.52			(0.48	)	(9	)
Net income	$	14.17		$	14.42		$	(0.25	)	(2	)%
Diluted EPS	$	0.74		$	0.74		$	-		0	%
Total Revenue (E)	$	52.99		$	51.52		$	1.47		3	%
Return on average assets annualized		0.95	%		0.97	%		(0.02	)
Return on average equity annualized		10.40	%		10.86	%		(0.46	)

(A) The September 2021 quarter included a full quarter of wealth management fee income and expense related to the July acquisition of PPSG.

(B) Capital markets activity included fee income from loan level back-to-back swaps, the SBA lending and sale program, corporate advisory and mortgage banking activities.

(C) The quarter ended June 30, 2021 included a cost of $842,000 related to the termination of interest rate swaps; a $1.1 million gain on the sale of PPP loans; $722,000 of fee income related to the referral of PPP loans to a third party; and $153,000 of additional BOLI income related to receipt of life insurance proceeds.

(D) The September 2021 quarter included $1.4 million related to a swap valuation allowance.   The June 2021 quarter included $648,000 of expense related to the redemption of subordinated debt.

(E) Total revenue equals net interest income plus total other income.

The Company’s priorities include:

• Grow and expand our three primary drivers of profitability: Wealth Management, Commercial Banking and Capital Markets businesses.

• Continued well-disciplined wealth management acquisitions.

• Continue loan and deposit pricing discipline.

• Continue to execute on our stock repurchase program.

• Drive Return on Assets to greater than 1% and Return on Average Tangible Common Equity to greater than 14% over time.

Select highlights:

Peapack Private Wealth Management:

• AUM/AUA in our Peapack Private Wealth Management Division grew to $10.3 billion at September 30, 2021 (from $8.8 billion at December 31, 2020).

• Wealth Management fee income increased to $14 million for Q3 2021 (compared to $10 million for Q3 2020).

• On July 1, 2021, we closed on the acquisition of PPSG.

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Commercial Banking and Balance Sheet Management:

• At September 30, 2021, loans totaled $4.55 billion (excluding $49 million of PPP loans), compared to $4.21 billion (excluding $196 million of PPP loans) at December 31, 2020, reflecting growth of 8% (or 11% annualized)  

• Core deposits (which includes noninterest-bearing demand and interest-bearing demand, savings and money market) totaled 89% of total deposits at September 30, 2021, with an average cost of 0.17%. Noninterest bearing demand deposit accounts (included in core deposits) totaled 18% of total deposits.

• The net interest margin improved by 4 basis points in Q3 2021 compared to Q2 2021 and improved 22 basis points when compared to Q3 2020.   

Capital Management:

• Continued to execute on the previously approved stock repurchase program – during Q3 repurchased 227,060 shares at an average price of $32.73 for a total cost of $7.4 million. (Year-to-date through September 30, 2021, the Company has repurchased 619,815 shares).

• Tangible book value per share increased to $26.50 at September 30, 2021 from $25.47 at December 31, 2020, despite recent stock repurchase activity. See the Non-GAAP financial measures reconciliation included in this release.

SUPPLEMENTAL QUARTERLY DETAILS:

Wealth Management

In the September 2021 quarter, the Bank’s wealth management business generated a record $13.86 million in fee income, compared to $10.12 million for the September 2020 quarter, and $13.03 million for the June 2021 quarter.

The market value of the Company’s AUM/AUA increased to $10.3 billion at September 30, 2021 from $8.8 billion at December 31, 2020, due to $715 million of organic new business, acquisitions, and favorable market conditions.

John P. Babcock, President of the Peapack Private Wealth Management division, said, “2021 showed continued strong new business, new client acquisition and client retention. We ended 2020 with a very strong Q4 and this continued into 2021 with gross inflows of $715 million for the first nine months of 2021.” Babcock went on to note, “We continue to look to grow our wealth business organically and through selective acquisitions. We continue to make significant progress on our infrastructure consolidation including launching our new trading platform, as well as adding more resources to our financial planning team.”

Loans / Commercial Banking

At September 30, 2021, loans and leases totaled $4.55 billion (excluding $49 million of PPP loans), compared to $4.21 billion (excluding $196 million of PPP loans) at December 31, 2020, reflecting year-to-date growth of $338 million or 8% (11% annualized). This growth was achieved despite over $400 million of accelerated prepayments over the nine-month period.  

Total C&I loans and leases (including the PPP loans) at September 30, 2021 were $1.83 billion or 40% of the total loan portfolio.

Mr. Kennedy noted, “Our commercial loan pipelines continue to be strong going into the fourth quarter, standing at approximately $400 million with likelihood of closing during the fourth quarter of 2021. Notwithstanding the sale and forgiveness of PPP loans and significant payoff activity, we believe that we will achieve high single digit loan growth for 2021, which was the upper end of our guidance provided in the beginning of 2021.”

Mr. Kennedy also noted, “As mentioned in the past, our Corporate Advisory business, which gives us the capability to engage in high level strategic debt, capital and valuation analysis, is enabling us to provide a unique

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boutique level of service. This business has gained momentum and also has a robust pipeline of new business opportunities.”

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 at September 30, 2021 increased $558 million to $5.38 billion from $4.82 billion at December 31, 2020. Along with the deposit growth, the change in mix was favorable, as noninterest bearing demand deposits increased $153 million, interest-bearing demand increased $507 million, while higher costing CDs declined $104 million and brokered deposits declined $25 million, when comparing September 30, 2021 to December 31, 2020.  

Mr. Kennedy noted, “89% of our deposits are demand, savings, or money market, and, our noninterest bearing deposits comprise 18% of our total deposits; both metrics reinforce the “core” nature of our deposit base.”

At September 30, 2021, the Company’s balance sheet liquidity (investments, interest-earning deposits and cash) totaled $1.5 billion (or 24% of assets). This level is much higher than the level at June 30, 2021 due to a significant increase in core deposits during Q3 2021. In addition, the Company has approximately $1.9 billion of secured funding available from the Federal Home Loan Bank and $1.1 billion of secured funding available from the Federal Reserve Discount Window.  The available funding from the Federal Home Loan Bank and the Federal Reserve is secured by the Company’s loan and investment portfolios.

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 the first quarter of 2020 reduced the Company’s yield on assets. However, we were able to strategically reprice our deposits over time to offset much of that decline. Further, when interest rates rise, we expect that our net interest income will improve. Our current modeling indicates that 42% of our loan portfolio will reprice within three months (54% within one-year).”

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

	Nine Months Ended				Nine Months Ended
	September 30, 2021				September 30, 2020
	NII			NIM	NII			NIM
NII/NIM excluding the below	$	97,655		2.53%	$	91,901		2.51%
Prepayment premiums received on loan paydowns		1,530		0.03%		1,005		0.02%
Effect of maintaining excess interest earning cash		(365	)	-0.17%		(1,000	)	-0.19%
Effect of PPP loans		2,029		-0.04%		3,961		-0.01%
NII/NIM as reported	$	100,849		2.35%	$	95,867		2.33%
	Three Months Ended				Three Months Ended				Three Months Ended
	September 30, 2021				June 30, 2021				September 30, 2020
	NII			NIM	NII			NIM	NII			NIM
NII/NIM excluding the below	$	34,635		2.56%	$	32,446		2.56%	$	30,327		2.45%
Prepayment premiums received on loan paydowns		325		0.02%		501		0.04%		104		0.01%
Effect of maintaining excess interest earning cash		(46	)	-0.14%		(115	)	-0.15%		(266	)	-0.24%
Effect of PPP loans		297		-0.02%		1,013		-0.07%		1,984		-0.02%
NII/NIM as reported	$	35,211		2.42%	$	33,845		2.38%	$	32,149		2.20%

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As shown above, the Company’s reported NIM increased 4 basis points compared to the linked quarter. The Bank strategically lowered its cost of funds and grew its average loan portfolio, both of which benefitted NIM.

Future net interest income and net interest margin should benefit from the following:

➣ Robust loan pipelines to generate loan growth and utilize excess liquidity.

➣ Continued downward repricing of maturing CDs.

➣ An increase in target Fed funds (should that occur).

Income from Capital Markets Activities

	Three Months Ended		Three Months Ended		Three Months Ended
	September 30,		June 30,		September 30,
(Dollars in thousands, except per share data)	2021		2021		2020
Gain on loans held for sale at fair value (Mortgage banking)	$	408	$	409	$	954
Fee income related to loan level, back-to-back swaps		—		—		—
Gain on sale of SBA loans		1,569		932		79
Corporate advisory fee income		84		121		75
Total capital markets activity	$	2,061	$	1,462	$	1,108

Noninterest income from Capital Markets activities (detailed above) totaled $2.06 million for the September 2021 quarter compared to $1.46 million for the June 2021 quarter and $1.11 million for the September 2020 quarter.  The September 2021 and June 2021 quarter results were driven by $1.57 million and $932,000 in gains on the sale of SBA loans, respectively. The September 2020 quarter reflected increased mortgage banking activity due to greater refinance activity in the low-rate environment. During the September 2021, June 2021 and September 2020 quarter, the Company recorded minimal corporate advisory fee income.  These transactions tend to be larger and take longer to complete. As noted previously, the pipeline of such business is robust. The September 2021, June 2021 and September 2020 quarters included no income from loan level, back-to-back swap activities, as there has been, and will continue to be, minimal activity for such in the current environment.

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

Other noninterest income (as defined above) totaled $1.86 million, $3.18 million, and $8.98 million, for the September 2021, June 2021, and September 2020 quarters, respectively. The June 2021 quarter included $153,000 of Bank Owned life Insurance income due to receipt of life insurance proceeds; a $1.13 million gain on the sale of PPP loans; and $722,000 of fee income related to referral of PPP loans to a third party. This was partially offset by an $842,000 cost on the termination of $40 million notional interest rate swaps with an all-in cost of 1.50%. The September 2020 quarter included a $7.43 million gain on the sale of PPP loans.

Operating Expenses

The Company’s total operating expenses were $32.18 million for the quarter ended September 30, 2021, compared to $30.68 million for the June 2021 quarter and $28.46 million for the September 2020 quarter. The September 2021 quarter included $1.35 million related to a swap valuation allowance.  The September 2021 quarter also included a full quarter’s worth of expense related to the teams hired from Lucas and Noyes and the acquisition of PPSG. The June 2021 quarter included $648,000 of expense related to the redemption of subordinated debt.  The June 2021 quarter also included a full quarter’s worth of expense related to the teams hired from Lucas and Noyes.

Mr. Kennedy noted, “While we continue to manage expenses closely and prudently, we will invest in digital enhancements to improve the client experience and grow and expand our core wealth management and commercial banking businesses, including lift-outs, strategic hires, and wealth M&A.”

Income Taxes

The effective tax rate for the three months ended September 30, 2021 was 26.22%, as compared to 27.69% for the June 2021 quarter and 27.75% for the quarter ended September 30, 2020.

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The effective tax rate for the nine months of 2021 was 26.65% compared to 15.65% for the first nine months of 2020. During the first quarter of 2020, the Company recorded a $3.34 million tax benefit, principally due to 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 Losses

For further details, see the Q3 2021 Investor Update (and Supplemental Financial Information).

Nonperforming assets (which does not include troubled debt restructured loans that are performing in accordance with their terms) at September 30, 2021were $25.9 million, or 0.42% of total assets, compared to $11.5 million, or 0.19% of total assets, at December 31, 2020. A single large commercial real estate loan with a large retail component, and on deferral, was placed on nonaccrual status as of September 30, 2021.  

For the quarter ended September 30, 2021, the Company’s provision for loan and lease losses was $1.6 million compared to $900,000 for the June 2021 quarter and $5.15 million for the September 2020 quarter. The decreased provision for loan and lease losses in the 2021 quarters when compared to the 2020 quarter reflect the reduced qualitative loss factors related to the unemployment rate and amount of loan deferrals and other economic qualitative factors due to the COVID-19 pandemic, when calculating the allowance for loan losses. Loans on deferral, and accruing, entered into during the COVID-19 pandemic have come down significantly from the prior year (declined from $914 million at June 30, 2020 to $13 million at September 30, 2021). The Company’s provision for loan and lease losses, and its allowance for loan and lease losses (ALLL) also reflect, among other things, the Company’s assessment of asset quality metrics, net charge-offs/recoveries, and the composition of the loan portfolio.

At September 30, 2021, the allowance for loan and lease losses was $65.13 million (1.42% of total loans), compared to $63.51 million at June 30, 2021 (1.39% of loans) and $67.31 million at December 31, 2020 (1.53% of total loans).  See page 16 in the Q3 2021 Investor Update (and Supplemental Financial Information) for a rollforward of the Company’s ALLL from June 30, 2021 to September 30, 2021. The Company will adopt CECL effective January 1, 2022 and does not expect a material adjustment upon adoption.

Capital

The Company’s capital position during the September 2021 quarter was benefitted by net income of $14.17 million, which was offset by the purchase of shares through the Company’s stock repurchase program and the quarterly dividend. During the third quarter of 2021, the Company repurchased 227,060 shares at an average price of $32.73 for a total cost of $7.4 million.  GAAP Capital at September 30, 2021 was also impacted by an increase in the unrealized loss on securities from June 30, 2021 to September 30, 2021, due to a rise in medium-term Treasury yields as of September 30, 2021.

The Company’s and Bank’s capital ratios at September 30, 2021 all remain strong.  Such ratios remain well above regulatory well capitalized standards.

As previously announced, in the fourth quarter of 2020, the Company successfully completed a private placement of $100 million in fixed-to floating rate subordinated notes due 2030 at a rate of 3.5%. Such funds benefitted the Company’s Regulatory Tier 2 Capital. At the time, the Company noted the proceeds raised would be used for general corporate purposes, which could include stock repurchases, the redemption of the Company’s existing 6% subordinated debt and acquisitions of wealth management firms. Throughout the first nine months of 2021, the Company repurchased $19 million of stock.  On June 30, 2021 the Company redeemed its 6% subordinated debt. On July 1, 2021 the Company closed on the acquisition of PPSG.

The Company employs quarterly capital stress testing run under multiple scenarios, including a no growth, severely adverse case. In such case as of June 30, 2021, the Bank remains well capitalized over a two-year stress period.With a Pandemic stress overlay on this case, the Bank still remains well capitalized over the two-year stress period. For further details, see page 26 in the Q3 2021 Investor Update (and Supplemental Financial Information).

On October 27, 2021, the Company declared a cash dividend of $0.05 per share payable on November 26, 2021 to shareholders of record on November 10, 2021.

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ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $6.2 billion and assets under management/administration of $10.3 billion as of September 30, 2021.  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 2021 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 the value in our investment portfolio;

• impact 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 delinquent, nonperforming, classified and criticized 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;

• a 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 pandemic 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 whether the gradual reopening of businesses will result in a meaningful increase in economic activity. 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:

9

• 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 higher 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 increase 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;

• a material decrease in net income or a net loss over several quarters could result in an elimination or a decrease in the rate of our quarterly cash dividend;

• our wealth management revenues may decline with continuing market turmoil;

• a worsening of business and economic conditions or in the financial markets could result in an impairment of certain intangible assets, such as goodwill;

• the unanticipated loss or unavailability of key employees due to the outbreak, which could harm our ability to operate our business or execute our business strategy, especially as we may not be successful in finding and integrating suitable successors;

• we may face litigation, regulatory enforcement and reputation risk as a result of our participation in the PPP and the risk that the SBA may not fund some or all PPP loan guaranties;

• 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, 2020.  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)

10

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,
	2021			2021			2021			2020			2020
Income Statement Data:
Interest income	$	40,067		$	39,686		$	38,239		$	38,532		$	40,174
Interest expense		4,856			5,841			6,446			6,797			8,025
Net interest income		35,211			33,845			31,793			31,735			32,149
Wealth management fee income		13,860			13,034			12,131			10,791			10,119
Service charges and fees		959			896			846			859			785
Bank owned life insurance		311			466			611			313			314
Gain on loans held for sale at fair value    (Mortgage banking) (A)		408			409			1,025			1,470			954
Gain/(loss) on loans held for sale at lower of cost or    fair value(B)		—			1,125			282			—			7,429
Fee income related to loan level, back-to-back    swaps (A)		—			—			—			—			—
Gain on sale of SBA loans (A)		1,569			932			1,449			375			79
Corporate advisory fee income (A)		84			121			1,098			50			75
Loss on swap termination		—			(842	)		—			—			—
Other income (C)		660			1,495			643			590			456
Securities gains/(losses), net		(70	)		42			(265	)		(42	)		—
Total other income		17,781			17,678			17,820			14,406			20,211
Salaries and employee benefits (D)		19,859			19,910			21,990			19,902			19,202
Premises and equipment		4,459			4,074			4,113			4,189			4,109
FDIC insurance expense		555			529			585			665			605
FHLB prepayment penalty		—			—			—			4,784			—
Valuation allowance loans held for sale (E)		—			—			—			4,425			—
Swap valuation allowance		1,350			—			—			—			—
Other expenses		5,962			6,171			4,906			5,284			4,545
Total operating expenses		32,185			30,684			31,594			39,249			28,461
Pretax income before provision for loan losses		20,807			20,839			18,019			6,892			23,899
Provision for loan and lease losses (F)		1,600			900			225			2,350			5,150
Income before income taxes		19,207			19,939			17,794			4,542			18,749
Income tax expense		5,036			5,521			4,616			1,512			5,202
Net income	$	14,171		$	14,418		$	13,178		$	3,030		$	13,547
Total revenue (G)	$	52,992		$	51,523		$	49,613		$	46,141		$	52,360
Per Common Share Data:
Earnings per share (basic)	$	0.76		$	0.76		$	0.70		$	0.16		$	0.72
Earnings per share (diluted)		0.74			0.74			0.67			0.16			0.71
Weighted average number of common    shares outstanding:
Basic		18,763,316			18,963,237			18,950,305			18,947,864			18,908,337
Diluted		19,273,831			19,439,439			19,531,689			19,334,569			19,132,650
Performance Ratios:
Return on average assets annualized (ROAA)		0.95	%		0.97	%		0.89	%		0.21	%		0.89	%
Return on average equity annualized (ROAE)		10.40	%		10.86	%		10.03	%		2.32	%		10.53	%
Return on average tangible common equity (ROATCE) (H)		11.43	%		11.83	%		10.94	%		2.51	%		11.41	%
Net interest margin (tax-equivalent basis)		2.42	%		2.38	%		2.28	%		2.25	%		2.20	%
GAAP efficiency ratio (I)		60.74	%		59.55	%		63.68	%		85.06	%		54.36	%
Operating expenses / average assets annualized		2.16	%		2.06	%		2.14	%		2.66	%		1.86	%

11

(A) Gain on loans held for sale at fair value (mortgage banking), fee income related to loan level, back-to-back swaps, gain on sale of SBA loans and corporate advisory fee income are all included in “capital markets activity” as referred to within the earnings release.

(B) Includes gain on sale of $355 million and $57 million of PPP loans completed in the September 2020 and June 2021 quarters, respectively.

(C) Includes income of $722,000 from the referral of PPP loans to a third-party firm during the June 2021 quarter.

(D) The March 2021 quarter included $1.5 million of severance expense related to corporate restructuring.

(E) The December 2020 quarter reflects a $4.4 million write-down of a commercial real estate held for sale loan associated with an assisted living facility.

(F) The September 2020 and December 2020 quarters included a higher provision for loan and lease losses primarily due to the environment created by the COVID-19 pandemic.

(G) Total revenue equals net interest income plus total other income.

(H) Return on average tangible common equity is calculated by dividing tangible common equity by annualized net income.  See Non-GAAP financial measures reconciliation included in these tables.

(I) Calculated as total operating expenses as a percentage of total revenue.  For Non-GAAP efficiency ratio, see the Non-GAAP financial measures reconciliation included in these tables.

12

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in Thousands, except share data)

(Unaudited)

	For the Nine Months Ended
	September 30,						Change
	2021			2020			$			%
Income Statement Data:
Interest income	$	117,992		$	127,218		$	(9,226	)		-7	%
Interest expense		17,143			31,351			(14,208	)		-45	%
Net interest income		100,849			95,867			4,982			5	%
Wealth management fee income		39,025			30,070			8,955			30	%
Service charges and fees		2,701			2,296			405			18	%
Bank owned life insurance		1,388			960			428			45	%
Gain on loans held for sale at fair value (Mortgage banking) (A)		1,842			1,796			46			3	%
Gain on loans held for sale at lower of cost or fair value (B)		1,407			7,426			(6,019	)		-81	%
Fee income related to loan level, back-to-back swaps (A)		—			1,620			(1,620	)		-100	%
Gain on sale of SBA loans (A)		3,950			1,391			2,559			184	%
Corporate advisory fee income (A)		1,303			215			1,088			506	%
Loss on swap termination		(842	)		—			(842	)	N/A
Other income (C)		2,798			1,257			1,541			123	%
Securities gains/(losses), net		(293	)		323			(616	)		-191	%
Total other income		53,279			47,354			5,925			13	%
Salaries and employee benefits (D)		61,759			57,614			4,145			7	%
Premises and equipment		12,646			12,188			458			4	%
FDIC insurance expense		1,669			1,310			359			27	%
Swap valuation allowance		1,350			—			1,350		N/A
Other expenses		17,039			14,598			2,441			17	%
Total operating expenses		94,463			85,710			8,753			10	%
Pretax income before provision for loan losses		59,665			57,511			2,154			4	%
Provision for loan and lease losses (E)		2,725			30,050			(27,325	)		-91	%
Income before income taxes		56,940			27,461			29,479			107	%
Income tax expense (F)		15,173			4,299			10,874			253	%
Net income	$	41,767		$	23,162		$	18,605			80	%
Total revenue (G)	$	154,128		$	143,221		$	10,907			8	%
Per Common Share Data:
Earnings per share (basic)	$	2.21		$	1.23		$	0.98			80	%
Earnings per share (diluted)		2.15			1.22			0.93			76	%
Weighted average number of common shares outstanding:
Basic		18,891,601			18,879,688			11,913			0	%
Diluted		19,390,522			19,052,605			337,917			2	%
Performance Ratios:
Return on average assets annualized (ROAA)		0.94	%		0.54	%		0.40	%		74	%
Return on average equity annualized (ROAE)		10.43	%		6.07	%		4.36	%		72	%
Return on average tangible common equity (ROATCE) (H)		11.40	%		6.59	%		4.81	%		73	%
Net interest margin (tax-equivalent basis)		2.35	%		2.33	%		0.02	%		1	%
GAAP efficiency ratio (I)		61.29	%		59.84	%		1.45	%		2	%
Operating expenses / average assets annualized		2.12	%		1.99	%		0.13	%		7	%

13

(A) Gain on loans held for sale at fair value (mortgage banking), fee income related to loan level, back-to-back swaps, gain on sale of SBA loans and corporate advisory fee income are all included in “capital markets activity” as referred to within the earnings release.

(B) Includes gain on sale of PPP loans of $57 million and $355 million completed in the nine months ended September 30, 2021 and 2020, respectively.

(C) Includes income of $722,000 from the referral of PPP loans to a third-party firm during the nine months ended September 2021.

(D) The nine months ended September 30, 2021 included $1.5 million of severance expense related to corporate restructuring.

(E) The nine months ended September 30, 2020 included a higher provision for loan and lease losses primarily due to the environment created by the COVID-19 pandemic.

(F) 2020 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.

(G) Total revenue equals net interest income plus total other income.

(H) Return on average tangible common equity is calculated by dividing tangible common equity by annualized net income.  See Non-GAAP financial measures reconciliation included in these tables.

(I) Calculated as total operating expenses as a percentage of total revenue.  For Non-GAAP efficiency ratio, see the Non-GAAP financial measures reconciliation included in these tables.

14

PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in Thousands)

(Unaudited)

	As of
	Sept 30,		June 30,		March 31,		Dec 31,		Sept 30,
	2021		2021		2021		2020		2020
ASSETS
Cash and due from banks	$	9,299	$	12,684	$	8,159	$	10,629	$	8,400
Federal funds sold		—		—		102		102		102
Interest-earning deposits		606,913		190,778		468,276		642,591		670,863
Total cash and cash equivalents		616,212		203,462		476,537		653,322		679,365
Securities available for sale		843,779		823,820		875,301		622,689		596,929
Equity security		14,824		14,894		14,852		15,117		15,159
FHLB and FRB stock, at cost		12,950		12,901		13,699		13,709		18,433
Residential mortgage		510,878		504,181		498,884		520,188		532,120
Multifamily mortgage		1,497,683		1,420,043		1,178,940		1,127,198		1,168,796
Commercial mortgage		680,107		702,777		697,599		694,034		722,678
Commercial loans (A)		1,833,532		1,880,830		1,982,570		1,975,337		1,930,984
Consumer loans		30,689		31,889		36,519		37,016		51,859
Home equity lines of credit		42,512		44,062		45,624		50,547		52,194
Other loans		245		204		199		225		260
Total loans		4,595,646		4,583,986		4,440,335		4,404,545		4,458,891
Less: Allowances for loan and lease losses		65,133		63,505		67,536		67,309		66,145
Net loans		4,530,513		4,520,481		4,372,799		4,337,236		4,392,746
Premises and equipment		23,123		23,261		23,260		21,609		21,668
Other real estate owned		—		—		50		50		50
Accrued interest receivable		22,790		23,117		23,916		22,495		22,192
Bank owned life insurance		46,510		46,605		46,448		46,809		46,645
Goodwill and other intangible assets		49,333		43,156		43,524		43,891		39,622
Finance lease right-of-use assets		3,769		3,956		4,143		4,330		4,517
Operating lease right-of-use assets		10,307		9,569		10,186		9,421		10,011
Other assets (B)		66,175		66,466		64,912		99,764		110,770
TOTAL ASSETS	$	6,240,285	$	5,791,688	$	5,969,627	$	5,890,442	$	5,958,107
LIABILITIES
Deposits:
Noninterest-bearing demand deposits	$	986,765	$	959,494	$	908,922	$	833,500	$	838,307
Interest-bearing demand deposits		2,355,892		1,978,497		1,987,567		1,849,254		1,858,529
Savings		168,831		147,227		141,743		130,731		127,737
Money market accounts		1,287,686		1,213,992		1,256,605		1,298,885		1,251,349
Certificates of deposit – Retail		426,981		446,143		474,668		530,222		586,801
Certificates of deposit – Listing Service		31,382		31,631		31,631		32,128		32,677
Subtotal “customer” deposits		5,257,537		4,776,984		4,801,136		4,674,720		4,695,400
IB Demand – Brokered		85,000		85,000		110,000		110,000		130,000
Certificates of deposit – Brokered		33,804		33,791		33,777		33,764		33,750
Total deposits		5,376,341		4,895,775		4,944,913		4,818,484		4,859,150
Short-term borrowings		—		—		15,000		15,000		15,000
FHLB advances (C)		—		—		—		—		105,000
Paycheck Protection Program Liquidity Facility (D)		48,496		83,586		168,180		177,086		183,790
Finance lease liability		6,063		6,299		6,528		6,753		6,976
Operating lease liability		10,644		9,902		10,509		9,737		10,318
Subordinated debt, net (E)		132,629		132,557		181,837		181,794		83,585
Other liabilities (B)		123,098		125,110		120,219		154,466		156,472
Due to brokers		—		—		—		—		15,088
TOTAL LIABILITIES		5,697,271		5,253,229		5,447,186		5,363,320		5,435,379
Shareholders’ equity		543,014		538,459		522,441		527,122		522,728
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY	$	6,240,285	$	5,791,688	$	5,969,627	$	5,890,442	$	5,958,107
Assets under management and / or administration at    Peapack-Gladstone Bank’s Private Wealth Management    Division (market value, not included above-dollars in billions)	$	10.3	$	9.8	$	9.4	$	8.8	$	7.6

(A) Includes PPP loans of $49 million at September 30, 2021, $84 million at June 30, 2021, $233 million at March 31, 2021, $196 million at December 31, 2020, and $202 million at September 30, 2020.

15

(B) The change in other assets and other liabilities was primarily due to the change in the fair value of our back-to-back swap program.

(C) The Company prepaid $105 million of FHLB advances with a weighted-average rate of 3.20% during the December 2020 quarter.

(D) Represents funding provided by the Federal Reserve for pledged PPP loans.

(E) The increase was due to the completion of a $100 million subordinated debt offering in December 2020.  The Company redeemed $50 million of subordinated debt on June 30, 2021.

16

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in Thousands)

(Unaudited)

	As of
	Sept 30,			June 30,			March 31,			Dec 31,			Sept 30,
	2021			2021			2021			2020			2020
Asset Quality:
Loans past due over 90 days and still accruing	$	—		$	—		$	—		$	—		$	—
Nonaccrual loans (A)		25,925			5,962			11,767			11,410			8,611
Other real estate owned		—			—			50			50			50
Total nonperforming assets	$	25,925		$	5,962		$	11,817		$	11,460		$	8,661
Nonperforming loans to total loans		0.56	%		0.13	%		0.27	%		0.26	%		0.19	%
Nonperforming assets to total assets		0.42	%		0.10	%		0.20	%		0.19	%		0.15	%
Performing TDRs (B)(C)	$	416		$	190		$	197		$	201		$	2,278
Loans past due 30 through 89 days and still accruing (D)(E)	$	1,193		$	1,678		$	1,622		$	5,053		$	6,609
Loans subject to special mention	$	115,935		$	148,601		$	166,013		$	162,103		$	129,700
Classified loans	$	51,937		$	11,178		$	25,714		$	37,771		$	41,263
Impaired loans	$	26,341		$	6,498		$	11,964		$	16,204		$	15,514
Allowance for loan and lease losses:
Beginning of period	$	63,505		$	67,536		$	67,309		$	66,145		$	66,065
Provision for loan and lease losses		1,600			900			225			2,350			5,150
(Charge-offs)/recoveries, net		28			(4,931	)		2			(1,186	)		(5,070	)
End of period	$	65,133		$	63,505		$	67,536		$	67,309		$	66,145
ALLL to nonperforming loans		251.24	%		1065.16	%		573.94	%		589.91	%		768.15	%
ALLL to total loans		1.42	%		1.39	%		1.52	%		1.53	%		1.48	%
General ALLL to total loans (F)		1.26	%		1.38	%		1.45	%		1.47	%		1.48	%

(A) Excludes one commercial loan held for sale of $5.6 million at September 30, 2021, June 30, 2021 and March 31, 2021. Excludes residential and commercial loans held for sale of $8.5 million at December 31, 2020.  Excludes one commercial loan held for sale of $10.0 million at September 30, 2020.

(B) Amounts reflect TDRs that are paying according to restructured terms.

(C) Amount excludes $4.0 million at September 30, 2021, $3.9 million at June 30, 2021, $3.9 million at March 31, 2021, $4.0 million at December 31, 2020 and $5.2 million at September 30, 2020 of TDRs included in nonaccrual loans.

(D) Excludes a residential loan held for sale of $93,000 at December 31, 2020.

(E) December 31, 2020 includes $1.3 million of residential loans that are classified as delinquent due to an escrow payment shortage due to a recent change in escrow payment requirement.

(F) Total ALLL less specific reserves equals general ALLL.

17

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in Thousands)

(Unaudited)

	September 30,				December 31,				September 30,
	2021				2020				2020
Capital Adequacy
Equity to total assets (A)(J)			8.70	%			8.95	%			8.77	%
Tangible Equity to tangible assets (B)			7.97	%			8.27	%			8.16	%
Tangible Equity to tangible assets excluding    PPP loans (C)			8.04	%			8.55	%			8.45	%
Book value per share (D)		$	29.15			$	27.78			$	27.62
Tangible Book Value per share (E)		$	26.50			$	25.47			$	25.53

	September 30,			December 31,			September 30,
	2021			2020			2020
Regulatory Capital – Holding Company
Tier I leverage	$	501,188	8.56%	$	483,535	8.53%	$	483,782	8.54%
Tier I capital to risk-weighted assets		501,188	10.97		483,535	11.93		483,782	11.76
Common equity tier I capital ratio    to risk-weighted assets		501,159	10.97		483,500	11.93		483,747	11.75
Tier I & II capital to risk-weighted assets		691,044	15.12		716,210	17.67		618,993	15.04
Regulatory Capital – Bank
Tier I leverage (F)	$	594,610	10.15%	$	549,575	9.71%	$	547,761	9.68%
Tier I capital to risk-weighted assets (G)		594,610	13.01		549,575	13.55		547,761		13.33
Common equity tier I capital ratio    to risk-weighted assets (H)		594,581	13.01		549,540	13.55		547,726		13.33
Tier I & II capital to risk-weighted assets (I)		651,841	14.26		600,478	14.81		599,314	14.58

(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) Tangible equity and tangible assets excluding PPP loans are calculated by excluding the balance of intangible assets from shareholders’ equity and excluding the balance of intangible assets and PPP loans from total assets. Tangible equity as a percentage of tangible assets excluding PPP loans at period end is calculated by dividing tangible equity by tangible assets excluding PPP loans at period end.  See Non-GAAP financial measures reconciliation included in these tables.

(D) Book value per common share is calculated by dividing shareholders’ equity by period end common shares outstanding

(E) Tangible book value per share 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.

(F) Regulatory well capitalized standard = 5.00% ($293 million)

(G) Regulatory well capitalized standard = 8.00% ($366 million)

(H) Regulatory well capitalized standard = 6.50% ($297 million)

(I) Regulatory well capitalized standard = 10.00% ($457 million)

(J) PPP loans with a balance of $49 million at September 30, 2021, $196 million at December 31, 2020 and $202 million at September 30, 2020 increased total assets.

18

PEAPACK-GLADSTONE FINANCIAL CORPORATION

LOANS CLOSED

(Dollars in Thousands)

(Unaudited)

	For the Quarters Ended
	Sept 30,		June 30,		March 31,		Dec 31,		Sept 30,
	2021		2021		2021		2020		2020
Residential loans retained	$	36,845	$	37,083	$	15,814	$	22,316	$	32,599
Residential loans sold		24,041		25,432		45,873		64,630		54,521
Total residential loans		60,886		62,515		61,687		86,946		87,120
Commercial real estate		14,944		12,243		38,363		—		1,613
Multifamily		120,716		255,820		85,009		1,184		1,500
Commercial (C&I) loans (A) (B)		143,121		141,285		129,141		218,235		118,048
SBA (C)		11,570		15,976		58,730		8,355		4,962
Wealth lines of credit (A)		10,020		3,200		2,475		3,925		2,000
Total commercial loans		300,371		428,524		313,718		231,699		128,123
Installment loans		178		25		63		690		253
Home equity lines of credit (A)		2,535		4,140		1,899		2,330		4,759
Total loans closed	$	363,970	$	495,204	$	377,367	$	321,665	$	220,255

	For the Nine Months Ended
	Sept 30,		Sept 30,
	2021		2020
Residential loans retained	$	89,742	$	66,057
Residential loans sold		95,346		110,973
Total residential loans		185,088		177,030
Commercial real estate		65,550		11,219
Multifamily		461,545		75,458
Commercial (C&I) loans (A) (B)		413,547		260,250
SBA (C)		86,276		614,443
Wealth lines of credit (A)		15,695		5,750
Total commercial loans		1,042,613		967,120
Installment loans		266		1,459
Home equity lines of credit (A)		8,574		12,671
Total loans closed	$	1,236,541	$	1,158,280

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

(B) Includes equipment finance.

(C) Includes PPP loans of $9.2 million for the quarter ended June 30, 2021, $47 million for the quarter ended March 31, 2021 and $596 million for the nine months ended September 30, 2020.

19

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

	September 30, 2021								September 30, 2020
	Average			Income/					Average			Income/
	Balance			Expense		Yield			Balance			Expense		Yield
ASSETS:
Interest-earning assets:
Investments:
Taxable (A)	$	820,574		$	2,824		1.38	%	$	553,607		$	2,182		1.58	%
Tax-exempt (A) (B)		6,035			64		4.24			9,127			116		5.08
Loans (B) (C):
Mortgages		503,621			3,779		3.00			529,500			4,437		3.35
Commercial mortgages		2,133,259			16,114		3.02			1,929,319			15,115		3.13
Commercial		1,826,368			16,553		3.63			2,134,399			17,653		3.31
Commercial construction		24,596			198		3.22			4,395			55		5.01
Installment		32,219			245		3.04			52,659			377		2.86
Home equity		43,182			357		3.31			53,373			444		3.33
Other		252			5		7.94			283			7		9.89
Total loans		4,563,497			37,251		3.27			4,703,928			38,088		3.24
Federal funds sold		-			—		-			102			—		0.25
Interest-earning deposits		413,623			142		0.14			652,832			159		0.10
Total interest-earning assets		5,803,729			40,281		2.78	%		5,919,596			40,545		2.74	%
Noninterest-earning assets:
Cash and due from banks		8,592								7,479
Allowance for loan and lease losses		(64,100	)							(68,110	)
Premises and equipment		23,311								21,511
Other assets		201,287								242,017
Total noninterest-earning assets		169,090								202,897
Total assets	$	5,972,819							$	6,122,493
LIABILITIES:
Interest-bearing deposits:
Checking	$	2,098,827		$	1,177		0.22	%	$	1,828,780		$	1,130		0.25	%
Money markets		1,257,760			683		0.22			1,235,040			920		0.30
Savings		152,759			20		0.05			125,016			16		0.05
Certificates of deposit – retail		461,917			836		0.72			642,732			2,529		1.57
Subtotal interest-bearing deposits		3,971,263			2,716		0.27			3,831,568			4,595		0.48
Interest-bearing demand – brokered		85,000			385		1.81			130,000			636		1.96
Certificates of deposit – brokered		33,796			266		3.15			33,742			267		3.17
Total interest-bearing deposits		4,090,059			3,367		0.33			3,995,310			5,498		0.55
Borrowings		64,332			57		0.35			475,465			1,221		1.03
Capital lease obligation		6,147			74		4.82			7,054			84		4.76
Subordinated debt		132,588			1,358		4.10			83,552			1,222		5.85
Total interest-bearing liabilities		4,293,126			4,856		0.45	%		4,561,381			8,025		0.70	%
Noninterest-bearing liabilities:
Demand deposits		997,450								872,560
Accrued expenses and other liabilities		137,387								173,816
Total noninterest-bearing liabilities		1,134,837								1,046,376
Shareholders’ equity		544,856								514,736
Total liabilities and shareholders’ equity	$	5,972,819							$	6,122,493
Net interest income				$	35,425							$	32,520
Net interest spread							2.33	%							2.04	%
Net interest margin (D)							2.42	%							2.20	%

(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.

20

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

THREE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

	September 30, 2021								June 30, 2021
	Average			Income/					Average			Income/
	Balance			Expense		Yield			Balance			Expense		Yield
ASSETS:
Interest-earning assets:
Investments:
Taxable (A)	$	820,574		$	2,824		1.38	%	$	884,374		$	3,020		1.37	%
Tax-exempt (A) (B)		6,035			64		4.24			6,891			81		4.70
Loans (B) (C):
Mortgages		503,621			3,779		3.00			498,594			3,826		3.07
Commercial mortgages		2,133,259			16,114		3.02			1,941,330			15,056		3.10
Commercial		1,826,368			16,553		3.63			1,942,802			16,984		3.50
Commercial construction		24,596			198		3.22			20,952			180		3.44
Installment		32,219			245		3.04			34,319			255		2.97
Home equity		43,182			357		3.31			45,042			377		3.35
Other		252			5		7.94			219			5		9.13
Total loans		4,563,497			37,251		3.27			4,483,258			36,683		3.27
Federal funds sold		0			—		-			91			—		0.06
Interest-earning deposits		413,623			142		0.14			428,464			97		0.09
Total interest-earning assets		5,803,729			40,281		2.78	%		5,803,078			39,881		2.75	%
Noninterest-earning assets:
Cash and due from banks		8,592								10,360
Allowance for loan and lease losses		(64,100	)							(67,593	)
Premises and equipment		23,311								23,307
Other assets		201,287								182,421
Total noninterest-earning assets		169,090								148,495
Total assets	$	5,972,819							$	5,951,573
LIABILITIES:
Interest-bearing deposits:
Checking	$	2,098,827		$	1,177		0.22	%	$	1,980,688		$	944		0.19	%
Money markets		1,257,760			683		0.22			1,235,464			727		0.24
Savings		152,759			20		0.05			144,044			18		0.05
Certificates of deposit – retail		461,917			836		0.72			488,148			1,027		0.84
Subtotal interest-bearing deposits		3,971,263			2,716		0.27			3,848,344			2,716		0.28
Interest-bearing demand – brokered		85,000			385		1.81			105,604			456		1.73
Certificates of deposit – brokered		33,796			266		3.15			33,783			264		3.13
Total interest-bearing deposits		4,090,059			3,367		0.33			3,987,731			3,436		0.34
Borrowings		64,332			57		0.35			166,343			182		0.44
Capital lease obligation		6,147			74		4.82			6,380			76		4.76
Subordinated debt		132,588			1,358		4.10			181,317			2,147		4.74
Total interest-bearing liabilities		4,293,126			4,856		0.45	%		4,341,771			5,841		0.54	%
Noninterest-bearing liabilities:
Demand deposits		997,450								948,851
Accrued expenses and other liabilities		137,387								129,980
Total noninterest-bearing liabilities		1,134,837								1,078,831
Shareholders’ equity		544,856								530,971
Total liabilities and shareholders’ equity	$	5,972,819							$	5,951,573
Net interest income				$	35,425							$	34,040
Net interest spread							2.33	%							2.21	%
Net interest margin (D)							2.42	%							2.38	%

(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.

21

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

UNAUDITED

NINE MONTHS ENDED

(Tax-Equivalent Basis, Dollars in Thousands)

	September 30, 2021								September 30, 2020
	Average			Income/					Average			Income/
	Balance			Expense		Yield			Balance			Expense		Yield
ASSETS:
Interest-earning assets:
Investments:
Taxable (A)	$	822,262		$	8,473		1.37	%	$	467,881		$	6,749		1.92	%
Tax-exempt (A) (B)		6,961			243		4.65			9,930			376		5.05
Loans (B) (C):
Mortgages		501,276			11,559		3.07			531,563			13,510		3.39
Commercial mortgages		1,972,723			45,590		3.08			1,989,256			49,745		3.33
Commercial		1,900,231			49,992		3.51			1,977,597			54,450		3.67
Commercial construction		20,418			516		3.37			4,440			187		5.62
Installment		34,724			777		2.98			53,165			1,212		3.04
Home equity		45,672			1,133		3.31			54,627			1,512		3.69
Other		239			15		8.37			321			23		9.55
Total loans		4,475,283			109,582		3.26			4,610,969			120,639		3.49
Federal funds sold		64			—		0.13			102			—		0.25
Interest-earning deposits		465,287			367		0.11			468,064			820		0.23
Total interest-earning assets		5,769,857			118,665		2.74	%		5,556,946			128,584		3.09	%
Noninterest-earning assets:
Cash and due from banks		10,018								6,149
Allowance for loan and lease losses		(67,592	)							(58,896	)
Premises and equipment		23,087								21,373
Other assets		203,344								212,716
Total noninterest-earning assets		168,857								181,342
Total assets	$	5,938,714							$	5,738,288
LIABILITIES:
Interest-bearing deposits:
Checking	$	1,996,663		$	3,099		0.21	%	$	1,706,558		$	6,219		0.49	%
Money markets		1,250,933			2,204		0.23			1,211,720			5,374		0.59
Savings		140,066			55		0.05			118,291			47		0.05
Certificates of deposit – retail		494,255			3,333		0.90			672,308			9,370		1.86
Subtotal interest-bearing deposits		3,881,917			8,691		0.30			3,708,877			21,010		0.76
Interest-bearing demand – brokered		100,110			1,334		1.78			153,358			2,259		1.96
Certificates of deposit – brokered		33,783			791		3.12			33,729			794		3.14
Total interest-bearing deposits		4,015,810			10,816		0.36			3,895,964			24,063		0.82
Borrowings		138,448			448		0.43			330,324			3,360		1.36
Capital lease obligation		6,376			229		4.79			7,266			261		4.79
Subordinated debt		165,053			5,650		4.56			83,496			3,667		5.86
Total interest-bearing liabilities		4,325,687			17,143		0.53	%		4,317,050			31,351		0.97	%
Noninterest-bearing liabilities:
Demand deposits		932,088								763,414
Accrued expenses and other liabilities		143,045								149,187
Total noninterest-bearing liabilities		1,075,133								912,601
Shareholders’ equity		533,894								508,637
Total liabilities and shareholders’ equity	$	5,934,714							$	5,738,288
Net interest income				$	101,522							$	97,233
Net interest spread							2.21	%							2.12	%
Net interest margin (D)							2.35	%							2.33	%

(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.

22

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

We believe 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.

(Dollars in thousands, except share data)

	Three Months Ended
	Sept 30,			June 30,			March 31,			Dec 31,			Sept 30,
Tangible Book Value Per Share	2021			2021			2021			2020			2020
Shareholders’ equity	$	543,014		$	538,459		$	522,441		$	527,122		$	522,728
Less:  Intangible assets, net		49,333			43,156			43,524			43,891			39,622
Tangible equity		493,681			495,303			478,917			483,231			483,106
Period end shares outstanding		18,627,910			18,829,877			19,034,870			18,974,703			18,924,953
Tangible book value per share	$	26.50		$	26.30		$	25.16		$	25.47		$	25.53
Book value per share		29.15			28.60			27.45			27.78			27.62
Tangible Equity to Tangible Assets
Total assets	$	6,240,285		$	5,791,688		$	5,969,627		$	5,890,442		$	5,958,107
Less: Intangible assets, net		49,333			43,156			43,524			43,891			39,622
Tangible assets		6,190,952			5,748,532			5,926,103			5,846,551			5,918,485
Less: PPP Loans		48,721			83,766			232,721			195,574			201,991
Tangible Assets excluding PPP Loans		6,142,231			5,664,766			5,693,382			5,650,977			5,716,494
Tangible equity to tangible assets		7.97	%		8.62	%		8.08	%		8.27	%		8.16	%
Tangible equity to tangible assets excluding PPP loans		8.04	%		8.74	%		8.41	%		8.55	%		8.45	%
Equity to assets (A)		8.70	%		9.30	%		8.75	%		8.95	%		8.77	%

(A) Equity to total assets would be 8.77% if PPP loans of $47 million were excluded from total assets as of September 30, 2021. Equity to total assets would be 9.43% if PPP loans of $84 million were excluded from total assets as of June 30, 2021. Equity to total assets would be 9.11% if PPP loans of $233 million were excluded from total assets of March 31, 2021. Equity to total assets would be 9.26% if PPP loans of $196 million were excluded from total assets as of December 31, 2020. Equity to total assets would be 9.08% if PPP loans of $202 million were excluded from total assets as of September 30, 2020.

23

	Three Months Ended
	Sept 30,			June 30,			March 31,			Dec 31,			Sept 30,
Return on Average Tangible Equity	2021			2021			2021			2020			2020
Net income	$	14,171		$	14,418		$	13,178		$	3,030		$	13,547
Average shareholders’ equity	$	544,856		$	530,971		$	525,643		$	523,446		$	514,736
Less:  Average intangible assets, net		48,757			43,366			43,742			40,336			39,811
Average tangible equity		496,099			487,605			481,901			483,110			474,925
Return on average tangible common equity		11.43	%		11.83	%		10.94	%		2.51	%		11.41	%

	For the Nine Months Ended
	Sept 30,			Sept 30,
Return on Average Tangible Equity	2021			2020
Net income	$	41,767		$	23,162
Average shareholders’ equity	$	533,894		$	508,637
Less:  Average intangible assets, net		45,306			40,135
Average tangible equity		488,588			468,502
Return on average tangible common equity		11.40	%		6.59	%

	Three Months Ended
	Sept 30,			June 30,			March 31,			Dec 31,			Sept 30,
Efficiency Ratio	2021			2021			2021			2020			2020
Net interest income	$	35,211		$	33,845		$	31,793		$	31,735		$	32,149
Total other income		17,781			17,678			17,820			14,406			20,211
Add:
Securities (gains)/losses, net		70			(42	)		265			42			—
Less:
Loss/(gain) on loans held for sale
at lower of cost or fair value		—			(1,125	)		(282	)		—			(7,429	)
Income from life insurance proceeds		—			(153	)		(302	)		—			—
Loss/(gain) on swap termination		—			842			—			—			—
Total recurring revenue		53,062			51,045			49,294			46,183			44,931
Operating expenses		32,185			30,684			31,594			39,249			28,461
Less:
FHLB prepayment penalty		—			—			—			4,784			—
Valuation allowance loans held for sale		—			—			—			4,425			—
Write-off of subordinated debt costs		—			648			—			—			—
Swap valuation allowance		1,350			—			—			—			—
Severance expense		—			—			1,532			—			—
Total operating expense		30,835			30,036			30,062			30,040			28,461
Efficiency ratio		58.11	%		58.84	%		60.99	%		65.05	%		63.34	%

24

	For the Nine Months Ended
	Sept 30,			Sept 30,
Efficiency Ratio	2021			2020
Net interest income	$	100,849		$	95,867
Total other income		53,279			47,354
Add:
Securities (gains)/losses, net		293			(323	)
Less:
Loss/(gain) on swap termination		842			—
Income from life insurance proceeds		(455	)		—
Loss/(gain) on loans held for sale
at lower of cost or fair value		(1,407	)		(7,426	)
Total recurring revenue		153,401			135,472
Operating expenses		94,463			85,710
Less:
Write-off of subordinated debt costs		648			—
Swap valuation allowance		1,350			—
Severance expense		1,532			—
Total operating expense		90,933			85,710
Efficiency ratio		59.28	%		63.27	%

25