Peapack-Gladstone Financial Corporation Reports 45% Increase In First Quarter Diluted Earnings Per Share

    GLADSTONE, N.J., April 23 /PRNewswire-FirstCall/ -- Peapack-Gladstone
 Financial Corporation (Amex:   PGC) reported record earnings of $0.87 per
 diluted share for the first quarter ended March 31, 2002, an increase of
 45.0 percent over the $0.60 per diluted share for the first quarter of 2001.
 Net income increased to $2.96 million for the quarter compared with
 $2.03 million for the first quarter of 2001, an increase of 45.9 percent.
     The quarter ended March 31, 2002 produced a return on average assets
 ("ROA") of 1.64 percent, a return on average equity ("ROE") of 18.32 percent,
 and an efficiency ratio of 53.13 percent.
     Frank A. Kissel, Peapack's Chairman and CEO noted, "We are very pleased
 with our results for the quarter.  We have been able to provide higher than
 average returns to our shareholders through growth within our market areas and
 prudent lending practices.  PGB Trust and Investments, as well, had a very
 successful quarter as the book value of assets grew to $916 million, an
 increase of $224 million or 32.3 percent over the level of assets on
 March 31, 2001."
     Mr. Kissel continued, "Our application for a new full service branch to be
 located in the King's Shopping Center in Warren has received regulatory
 approvals and will open in the near future.
     We are looking forward to serving this affluent, high growth market.
 Peapack will continue to explore opportunities for new branches in communities
 strategically located contiguous to our existing market to complement and
 enhance our business."
     Net interest income for the first quarter of 2002 was $7.71 million
 resulting in a net interest margin of 4.57 percent.  This compares with
 $5.74 million and a net interest margin of 4.08 percent for the first quarter
 of 2001, and $6.86 million and a net interest margin of 4.27 percent for the
 fourth quarter of 2001.  Loan and deposit growth, the redeployment of lower
 yielding short term assets into the higher yielding securities portfolio and
 lower cost of funds were all factors in the significant increase in net
 interest income.
     Total loans grew to $426.0 million at March 31, 2002, compared to
 $356.9 million at March 31, 2001, an increase of $69.2 million or
 19.4 percent.
     Total deposits grew 25.6 percent to $676.6 million at March 31, 2002 from
 $538.6 million at March 31, 2001.  All deposits categories recorded increases
 as the cost of funds fell to 1.86 percent in the first quarter of 2002 as
 compared to 3.12 percent in the first quarter of 2001 and 2.35 percent in the
 fourth quarter of 2001.
     Investment securities grew $122.5 million while federal funds sold and
 short term investments fell $55.8 million at March 31, 2002 as compared to the
 same period a year ago.
     Other income before gains on securities was $804 thousand in the first
 quarter of 2002, an increase of $301 thousand or 59.8 percent over 2001
 levels.  This increase was primarily due to additions to cash surrender value
 of Bank Owned Life Insurance, which grew $197 thousand and service charges on
 deposit accounts which increased $71 thousand.
     Other expense for the first quarter of 2002 increased 21.7 percent to
 $5.13 million compared to $4.22 million for the first quarter of 2001.  The
 increase reflects increased staffing levels and expense commensurate with
 business expansion including two new branch locations.
     Credit quality remained strong as non-performing loans totaled
 $433 thousand or 0.10 percent of total loans at March 31, 2002 as compared to
 $455 thousand or 0.13 percent of total loans at March 31, 2001.  The allowance
 for loan losses was $4.20 million or 0.99 percent of total loans at
 March 31, 2002 as compared to $3.56 million or 1.00 percent of total loans at
 March 31, 2001.
 
     Peapack-Gladstone Financial Corporation is a bank holding company with
 total assets of $755 million as of March 31, 2002.  Peapack-Gladstone Bank,
 its wholly owned community bank, was established in 1921, and has 16 branches
 in Somerset, Hunterdon and Morris Counties.  Its Trust Division, PGB Trust and
 Investments with $1.2 billion in assets under management, operates at the
 Bank's main office located at 190 Main Street in Gladstone.  To learn more
 about Peapack-Gladstone Financial Corporation and its services please visit
 our web site at http://www.pgbank.com or call 908-234-0700.
 
     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, relationships, opportunities, technology and market conditions.
 These statements may be identified by such forward-looking terminology as
 "expect," "look," "believe," "anticipate," "may," "will," or similar
 statements or variations of such terms.  Such forward-looking statements
 include certain risks and uncertainties.  These include, but are not limited
 to, the direction of the economy in New Jersey especially as it has been
 affected by recent developments, the direction of interest rates, continued
 levels of loan quality and origination volume, continued relationships with
 major customers including sources for loans, as well as the effects of general
 economic conditions and legal and regulatory barriers and structure.  Actual
 results may differ materially from such forward-looking statements.
 Peapack-Gladstone assumes no obligation for updating any such forward-looking
 statements at any time.
 
 
                    PEAPACK-GLADSTONE FINANCIAL CORPORATION
                      SELECTED CONSOLIDATED FINANCIAL DATA
                                   UNAUDITED
                (Dollars in Thousands, Except Per Share Amounts)
 
                                               At or For The Three Months Ended
                                                               March 31,
                                                            2002        2001
     Income Statement Data:
         Interest income                                  $10,690      $9,694
         Interest expense                                   2,981       3,959
         Net interest income                                7,709       5,735
         Provision for loan losses                            199         126
         Net interest income after
          provision for loan losses                         7,510       5,609
         Other income                                         804         503
         Securities Gains                                      17           0
         Trust Fees                                         1,146       1,131
         Other expense                                      5,132       4,217
         Income before income taxes                         4,345       3,026
         Income tax expenses                                1,384         996
         Net income                                        $2,961      $2,030
 
     Balance Sheet Data:
         Total assets                                    $754,879    $600,881
         Federal funds sold                                 7,841      48,509
         Short-term investments                               472      15,651
         Securities held to maturity                       60,030      63,605
         Securities available for sale                    214,572      88,524
         Loans                                            426,029     356,858
         Allowance for Loan Losses                          4,200       3,564
         Deposits                                         676,556     538,622
         Stockholders' equity                              64,142      57,533
 
     Trust Department Assets
      (book value, not included above)                   $915,995    $692,168
 
     Average Balance Sheet Data:
         Total Assets                                    $721,284    $575,639
         Earning Assets                                   676,275     546,409
         Loans, net                                       415,069     342,904
         Interest-Bearing Deposits                        530,384     419,031
         Demand Deposits                                  111,718      96,844
         Borrowings                                         8,033           0
         Stockholders' equity                              64,637      56,282
 
     Performance Ratios:
         Return on average assets                            1.64 %      1.41 %
         Return on average equity                           18.32       14.43
 
     Efficiency Ratio                                       53.13 %     57.23 %
 
     Net Interest Margin (Taxable Equivalent Basis)          4.57 %      4.08 %
 
     Asset Quality:
         Loans past due over 90 days and still accruing      $216        $259
         Non-accrual loans                                    217         196
         Net (charge-offs)/recoveries                         (22)          2
         Allowance for loan losses to total loans            0.99 %      1.00 %
 
     Per Share Data: (1)
         Earnings per share (Basic)                         $0.89       $0.61
         Earnings per share (Diluted)                        0.87        0.60
         Book Value                                         19.24       17.25
 
     Capital Adequacy:
         Tier I Leverage                                     8.92 %      8.78 %
         Tier I Capital to Risk-Weighted Assets             18.98       18.54
         Tier I & Tier II Capital to Risk-Weighted Assets   20.21       19.84
 
     (1) Restated for the 10% stock dividend declared September 13, 2001.
 
 
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SOURCE Peapack-Gladstone Financial Corporation

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