Financial Highlights (In thousands, except per share data)

Selected Year-End Data 2019 2018 2017
Pre-Tax Income $66,122 $57,720 $54,307
Net Income 47,434 44,170 36,497
Total Assets 5,182,879 4,617,858 4,260,547
Total Deposits 4,243,511 3,895,340 3,698,354
Total Investment Securities 390,755 377,936 327,633
Total Loans 4,411,685 3,933,049 3,705,611
Total Shareholders’ Equity 503,652 469,013 403,678
Assets under Management and/or Administration at Peapack-Gladstone Bank’s Private Wealth Management Division (Market Value) $7.5 billion $5.8 billion $5.5 billion
Per Common Share:
Earnings—Basic $2.46 $2.33 $2.07
Earnings—Diluted 2.44 2.31 2.03
Book Value 26.61 24.25 21.68
Financial Ratios:
Net Interest Margin 2.63% 2.75% 2.80%
Return on Average Assets 0.99 1.02 0.89
Return on Average Common Equity 9.70 10.13 10.12
Regulatory Capital Ratios:
Total Capital to Risk-Weighted Assets 14.20% 15.03% 14.84%
Tier 1 Capital to Risk-Weighted Assets 11.14 11.76 11.31
Common Equity Tier 1 Capital to Risk-Weighted Assets 11.14 11.76 11.31
Tier 1 Capital to Average Assets 9.33 9.82 9.04
Earnings per Share
Net Income
Total Loans
Dear Valued Shareholder,

On behalf of Peapack-Gladstone Financial Corporation and all of its wholly owned divisions and subsidiaries, I hope you and your families are safe and healthy.

These are certainly unprecedented times for everyone, but it is during times like these that I find comfort and security in knowing that I am not alone. It is my hope that you feel the same, and that you know Peapack-Gladstone Bank and its team of hard-working employees are here for you.

For nearly 100 years, we have put our clients and our communities first. These are two of our most important core principles, which we stand by each and every day. These statements truly define who we are and exemplify our commitment to doing the right thing, providing a trusted relationship for clients, even during extremely difficult times.

The theme of our 2019 Annual Report is “Focused on the Client.” The decision to follow this theme throughout the Report was made well before the Coronavirus entered our lives, but I feel strongly that it rings even more true today than ever before. Although much has changed during the last few months, our commitment to our clients, and our focus on our clients, will never waiver. Whether it is through support of our community organizations in need with funds or volunteers, or through loan or financing relief for our commercial and consumer clients, or specifically through offering Paycheck Protection Program assistance for our small businesses, we will always provide a steady hand.

I am proud of our 2019 accomplishments and that we were able to deliver a seventh year of record results for our shareholders. The enclosed report tells our story, which I hope you will also take pride in.

As we look ahead to our new normal, we will continue to keep our shareholders, our clients, our communities and our employees at the forefront. This will drive our success.

Respectfully yours,

Douglas L. Kennedy
President & CEO
Peapack-Gladstone Bank