GLADSTONE, N.J.--(BUSINESS WIRE)--
Peapack-Gladstone Financial Corporation (NASDAQ Global Select
Market:PGC) (the “Corporation”) announced today that it has received
approval from the U.S. Treasury to redeem an additional 25% of the
preferred shares originally issued under the Treasury’s Capital Purchase
Program (“CPP”). The Corporation expects to repay approximately $7.2
million to the Treasury (including accrued and unpaid dividends of
approximately $15 thousand) on March 2, 2011. The Corporation’s
redemption of the shares is not subject to additional conditions or
stipulations from the Treasury.
Frank A. Kissel, Chairman and CEO, said “We are pleased to be able to
redeem a second 25% portion of the original CPP investment. When
combining this redemption with our first redemption in 2010, we will
have repaid half of the original CPP investment from internally
generated capital, without diluting existing shareholders. Our plan has
been, and is, to redeem the CPP investment over time from internally
generated capital.” Mr. Kissel went on to note that the partial
redemption this year will save the Corporation approximately $360
thousand in dividend expense on an annual basis.
As a result of the repurchase, the accretion related to the preferred
stock will be accelerated and an approximate $246 thousand reduction to
retained earnings will be recorded during the first quarter.
In connection with the January 2009 original issuance of the preferred
stock under the Treasury’s CPP program, the Corporation issued to the
Treasury a warrant to purchase 150,296 common shares at $28.63 per share
(after adjusting for a 5% stock dividend issued August 3, 2009). This
warrant is still held by the Treasury and will remain outstanding.
About the Corporation
Peapack-Gladstone Financial Corporation is a bank holding company with
total assets of $1.51 billion as of December 31, 2010. Peapack-Gladstone
Bank, its wholly owned community bank, was established in 1921, and has
23 branches in Somerset, Hunterdon, Morris, Middlesex and Union
Counties. The Bank’s Trust Division, PGB Trust and Investments, operates
at the Bank’s new corporate offices located at 500 Hills Drive in
Bedminster and at four other locations in Clinton, Morristown and
Summit, New Jersey and Bethlehem, Pennsylvania. 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 “intend,” “expect”, “look”,
“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, those risk factors set forth in the “Risk Factor” section of
our Annual Report on Form 10-K for the year ended December 31, 2009 and
subsequent Forms 10-Q. The Corporation assumes no obligation for
updating any such forward-looking statements at any time.
Source: Peapack-Gladstone Financial Corporation
Contact:
Peapack-Gladstone Financial Corporation
Jeffrey J. Carfora,
908-719-4308
EVP and CFO