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

12 Months Ended

Dec. 31, 2022

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

STATEMENTS OF CONDITION


	December 31,
(In thousands)	2022			2021
Assets
Cash	$	7,967		$	27,530
Interest-earning deposits		523			522
Total cash and cash equivalents		8,490			28,052
Investment in subsidiary		655,490			650,918
Other assets		2,356			680
Total assets	$	666,336		$	679,650
Liabilities
Subordinated debt	$	132,987		$	132,701
Other liabilities		369			561
Total liabilities		133,356			133,262
Shareholders’ equity
Common stock		17,513			17,220
Surplus		338,706			332,358
Treasury stock		(97,826	)		(65,104	)
Retained earnings		348,798			274,288
Accumulated other comprehensive loss		(74,211	)		(12,374	)
Total shareholders’ equity		532,980			546,388
Total liabilities and shareholders’ equity	$	666,336		$	679,650

STATEMENTS OF INCOME AND COMPREHENSIVE INCOME


	Years Ended December 31,
(In thousands)	2022			2021			2020
Income
Dividend from Bank	$	23,000		$	—		$	13,000
Other income		2			—			2
Total income		23,002			—			13,002
Expenses
Interest expense		5,453			7,013			4,992
Other expenses		1,130			1,602			948
Total expenses		6,583			8,615			5,940
Income/(loss) before income tax benefit and equity in undistributed earnings of Bank		16,419			(8,615	)		7,062
Income tax benefit		(1,676	)		(2,340	)		(1,247	)
Net income/(loss) before equity in undistributed earnings of Bank		18,095			(6,275	)		8,309
Equity in undistributed earnings of Bank/(dividends in excess of earnings)		56,151			62,897			17,883
Net income	$	74,246		$	56,622		$	26,192
Other comprehensive (loss)/income		(61,837	)		(10,982	)		103
Comprehensive income	$	12,409		$	45,640		$	26,295

STATEMENTS OF CASH FLOWS


	Years Ended December 31,
(In thousands)	2022			2021			2020
Cash flows from operating activities:
Net income	$	74,246		$	56,622		$	26,192
Undistributed earnings of Bank		(56,151	)		(62,897	)		(17,883	)
Amortization of subordinated debt costs		286			1,002			234
(Increase)/decrease in other assets		(1,676	)		(674	)		4,914
(Decrease)/increase in other liabilities		(192	)		(1,979	)		2,176
Net cash provided by/(used in) operating activities		16,513			(7,926	)		15,633

Cash flows from investing activities:
Capital contribution to subsidiary		—			—			—
Net cash used in investing activities		—			—			—

Cash flows from financing activities:
Cash dividends paid on common stock		(3,645	)		(3,775	)		(3,780	)
Exercise of stock options, net of stock swaps		292			187			230
Proceeds from issuance of subordinated debt		—			—			98,143
Repayments of subordinated debt		—			(50,000	)		—
Purchase of treasury shares		(32,722	)		(28,627	)		(6,487	)
Net cash (used in)/provided by financing activities		(36,075	)		(82,215	)		88,106

Net (decrease)/increase in cash and cash equivalents		(19,562	)		(90,141	)		103,739
Cash and cash equivalents at beginning of period		28,052			118,193			14,454
Cash and cash equivalents at end of period	$	8,490		$	28,052		$	118,193