CONDENSED FINANCIAL STATEMENTS OF PEAPACK-GLADSTONE FINANCIAL CORPORATION (PARENT COMPANY ONLY) (Tables)

12 Months Ended

Dec. 31, 2018

STATEMENTS OF CONDITION

	December 31,
(In thousands)	2018			2017
Assets
Cash	$	12,971		$	14,563
Interest-earning deposits		517			515
Total cash and cash equivalents		13,488			15,078
Investment in subsidiary		535,277			469,622
Other assets		3,734			2,551
Total assets	$	552,499		$	487,251
Liabilities
Subordinated debt	$	83,193		$	83,024
Other liabilities		293			549
Total liabilities		83,486			83,573
Shareholders’ equity
Common stock		16,459			15,858
Surplus		309,088			283,552
Treasury stock		(8,988	)		(8,988	)
Retained earnings		154,799			114,468
Accumulated other comprehensive loss		(2,345	)		(1,212	)
Total shareholders’ equity		469,013			403,678
Total liabilities and shareholders’ equity	$	552,499		$	487,251

STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

	Years Ended December 31,
(In thousands)	2018			2017			2016
Income
Dividend from Bank	$	—		$	—		$	—
Other income		4			2			1
Total income		4			2			1
Expenses
Interest expenses		4,887			3,206			1,696
Other expenses		480			554			699
Total expenses		5,367			3,760			2,395
Loss before income tax benefit and equity in undistributed earnings of Bank		(5,363	)		(3,758	)		(2,394	)
Income tax benefit		(1,123	)		(1,313	)		(835	)
Net loss before equity in undistributed earnings of Bank		(4,240	)		(2,445	)		(1,559	)
Equity in undistributed earnings of Bank/(dividends in excess of earnings)		48,410			38,942			28,036
Net income	$	44,170		$	36,497		$	26,477
Other comprehensive (loss)/income		(1,260	)		534			(1,152	)
Comprehensive income	$	42,910		$	37,031		$	25,325

STATEMENTS OF CASH FLOWS

	Years Ended December 31,
(In thousands)	2018			2017			2016
Cash flows from operating activities:
Net income	$	44,170		$	36,497		$	26,477
Undistributed earnings of Bank		(48,410	)		(38,942	)		(28,036	)
Amortization of subordinated debt costs		171			135			71
Increase in other assets		(1,183	)		(1,248	)		(889	)
Increase in other liabilities		(256	)		113			114
Net cash used in operating activities		(5,508	)		(3,445	)		(2,263	)

Cash flows from investing activities:
Capital contribution to subsidiary		(9,322	)		(60,177	)		(57,823	)
Net cash used in investing activities		(9,322	)		(60,177	)		(57,823	)

Cash flows from financing activities:
Cash dividends paid on common stock		(3,712	)		(3,548	)		(3,296	)
Exercise of stock options, net of stock swaps		275			690			1,069
Proceeds from issuance of subordinated debt		—			34,125			48,693
Issuance of common shares (DRIP program)		16,677			36,588			22,461
Net cash provided by financing activities		13,240			67,855			68,927

Net (decrease)/increase in cash and cash equivalents		(1,590	)		4,233			8,841
Cash and cash equivalents at beginning of period		15,078			10,845			2,004
Cash and cash equivalents at end of period	$	13,488		$	15,078		$	10,845