News Details

GLADSTONE, N.J.--(BUSINESS WIRE)-- Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market:PGC) today announced an Enhanced Dividend Reinvestment Plan, a 5% Common Stock Dividend, a $0.05 Quarterly Cash Dividend and a Change in Dividend Declaration Dates.

At its regularly scheduled June 18, 2009 Board Meeting, the Corporation's Board of Directors approved four dividend actions. First, the Board adopted an Enhanced Dividend Reinvestment Plan which, beginning with the August 3, 2009 Dividend payment, will allow shareholders to not only reinvest their cash dividend in PGC shares, but also purchase up to $50,000 of additional PGC shares per quarter, each at a 3% discount to market pricing. A registration statement providing for this plan was filed with the SEC on June 18, 2009.

Second, the Board voted to issue a stock dividend to all shareholders of record as of July 9, 2009, payable on August 3, 2009 and equal to 5% of shares outstanding. This stock dividend represents the Board's confidence in the Corporation.

Third, the Board declared a $0.05 per share quarterly dividend payable to all shareholders of record as of July 9, 2009 and payable on August 3, 2009. The $0.05 per share dividend represents a reduction from the prior quarterly dividend of $0.16 per share. This decision was not taken lightly, and rests squarely upon the Board's determination to both increase capital during uncertain times and redeem the $28,685,000 of preferred shares purchased by the U.S. Department of Treasury on January 9, 2009. The reduction in the cash dividend will increase the Corporation's capital by $3.6 million per year. This savings, together with the Corporation's ongoing profitability, will better enable the Corporation to redeem the Treasury investment and buttress capital, both of which will put the Corporation in a solid position to take advantage of the coming, more conservative banking environment.

Frank A. Kissel, Chairman and Chief Executive Officer, stated, "The decision to reduce our cash dividend was difficult and not made quickly. After considerable deliberation, our Board determined that repaying the Treasury investment and building capital were sound business objectives and would maximize shareholder value. We view the decision to lower the dividend as temporary, and we look forward to increasing the dividend in the future."

Finally, the Board voted to change future dividend declaration dates. Beginning with the third quarter of this year, the Corporation will declare dividends in the month following the end of each quarter. This will allow the Corporation's Board to declare dividends based upon the prior quarter's financial performance. Accordingly, the Corporation's next two dividend declaration dates are scheduled for October, 2009 and January, 2010.

Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.45 billion as of May 31, 2009. Peapack-Gladstone Bank, its wholly owned community bank, was established in 1921 and has 23 branches in Somerset, Hunterdon, Morris, Middlesex and Union Counties. Its Trust Division, PGB Trust and Investments, operates at its primary office in Gladstone located at 190 Main Street, its Morristown office located at 233 South Street, its Summit office located at 48 DeForest Avenue and its Bethlehem, PA office located at One Bethlehem Plaza. To learn more about Peapack-Gladstone Financial Corporation and its services please visit our web site at 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, investments, relationships, opportunities and market conditions. These statements may be identified by such forward-looking terminology as "will," "plan," "expect," "view", "look," "look forward," "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, loan losses, loan loss provisions, classification of securities to other-than-temporary impaired status, impairment charges with respect to securities and loans, unanticipated costs in connection with new branch openings, deterioration of the economy and its effects on the Corporation's business and assets, unexpected changes in interest rates, inability to manage growth in commercial loans, unexpected loan prepayment volume, unanticipated exposure to credit risks, insufficient allowance for loan losses, competition from other financial institutions, adverse effects of government regulation or different than anticipated effects from existing regulations, passage by Congress of a law which unilaterally amends the terms of the Treasury's investment in the Corporation in a way that adversely affects the Corporation, a decline in the level of loan quality and origination volume, a decline in the level or increase in the cost of deposits, a decline in the level or decrease in the yield of assets, a decline in trust assets, and other unexpected events. Peapack-Gladstone assumes no obligation for updating any such forward-looking statements at any time.

    Source: Peapack-Gladstone Financial Corporation