Exhibit 99.1

Contact: 

Jeffrey J. Carfora, SEVP and CFO

Peapack-Gladstone Financial Corporation 

T: 908-719-4308

PEAPACK-GLADSTONE FINANCIAL CORPORATION  

REPORTS RESULTS FOR THE THIRD QUARTER OF 2013 

BEDMINSTER, N.J. – October 21, 2013 – Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market:PGC) (the “Corporation” or the “Company”) recorded net income available to common shareholders of $6.87 million and diluted earnings per share of $0.76 for the nine months ended September 30, 2013. This compared to $8.16 million and $0.93, respectively, for the same nine month period last year.

The 2013 nine months included: 1) a $933 thousand compensation expense accrual related to certain staff restructurings, resulting in an after-tax charge of approximately $569 thousand or approximately six cents per fully diluted share; and 2) a $930 thousand write-down of an REO property, resulting in an after tax charge of approximately $595 thousand or approximately seven cents per diluted share.

For the quarter ended September 30, 2013, the Corporation recorded net income available to common shareholders of $1.96 million and diluted earnings per share of $0.22. This compared to $2.83 million and $0.32, respectively, for the same quarter last year.

The 2013 third quarter included the $933 thousand compensation expense accrual described above.

Doug Kennedy, President and CEO, said, “We had another quarter of solid accomplishment. Most importantly, we continued to implement and follow through on our Strategic Plan – known as “Expanding Our Reach”. As previously reported, this Plan focuses on the client experience and organic growth across all lines of business. The Plan calls for expansion of existing lines of business and establishment of a new commercial and industrial (C&I) lending platform through the use of private banking teams, who will lead with deposit gathering and wealth management discussions. The Plan further calls for establishment of a community based sales force that supports our branches and will serve as a primary point of contact for clients.

Mr. Kennedy went on to note the following additional highlights for the third quarter of 2013:

Net Interest Income and Margin

Net interest income was $13.37 million for the third quarter of 2013, reflecting an increase of $523 thousand from the same quarter last year. The net interest margin, on a fully tax-equivalent basis, was 3.28 percent for the September 2013 quarter compared to 3.50 percent for the September 2012 quarter.

Net interest income for the current quarter benefitted from significant loan growth during 2013, principally multifamily and commercial mortgage, funded by deposits, borrowings, and a decline in lower yielding investment securities and interest earning cash balances.

Net interest margin for the current 2013 quarter declined when compared to the same quarter last year due to the effect of low market yields, which compressed asset yields more than deposit costs. Partially offsetting this effect, net interest margin benefitted in the current quarter from the positive effect of increased loans funded by deposits and cash flows from lower yielding investment securities and interest earning cash balances.

Loans

For the third quarter of 2013, average loans totaled $1.32 billion as compared to $1.10 billion for the same quarter in 2012, reflecting an increase of $224 million, or 20 percent.

The average commercial mortgage and commercial loan portfolio for the quarter ended September 2013 increased $206 million, or 41 percent, from the same quarter of 2012. The increase was attributable to a more concerted focus on this type of business in both the New Jersey and New York City markets, as well as demand from high-quality borrowers looking to refinance multifamily and other commercial mortgages held by other institutions.

Total loans at September 30, 2013 grew $300 million or 27 percent when compared to total loans at September 30, 2012.

Total loan originations were $255 million for the third quarter of 2013, up significantly from $81 million for the same quarter of 2012. Loan originations were $536 million for the first nine months of 2013, also up significantly from $281 million for the same nine month period of 2012. Included in the total were commercial mortgage (principally multifamily) / commercial loan originations of $349 million and $201 million for the 2013 nine months and quarter, respectively, compared to only $95 million and $22 million for the 2012 periods, respectively.

Mr. Kennedy said “We continue to be successful in generating solid lending growth. As part of our Strategic Plan, we introduced a comprehensive Commercial & Industrial (C&I) lending program and we have closed $44 million of volume so far this year. We expect such volume to continue to increase in future periods. Further, our multifamily lenders have generated significant closed volume and continue to maintain very robust pipelines.”

Deposits

For the September 2013 quarter, average total deposits (interest-bearing and noninterest-bearing) increased $113 million when compared to the same quarter last year. Over that same period, the Company saw growth in each of its deposit categories, except certificates of deposit. For the third quarter of 2013, average certificates of deposit (CDs) declined $23 million from the same 2012 quarter. These higher-cost CDs were replaced with lower-cost, more stable core deposits.

Total deposits at September 30, 2013 increased $140 million, or nearly 10 percent from September 30, 2012. The Company continues to successfully focus on:

—       Business and personal relationships;

—       Municipal relationships within its market territory; and

—      Growth in deposits associated with its lending activities.

Mr. Kennedy commented, “I continue to believe that our focus on providing high touch client service and our strong and valuable core deposit base are key differentiators for us as we grow our business.” Additionally, as previously announced, Anthony V. Bilotta, Jr. has joined the Company as Executive Vice President, Head of Retail Banking and Marketing. Anthony joins us with over 30 years of industry experience.

Peapack-Gladstone Bank Trust & Investments

In the third quarter of 2013, Peapack-Gladstone Bank Trust & Investments generated $3.30 million in fee income compared to $2.92 million for the third quarter of 2012, reflecting growth of 13 percent. The market value of the assets under administration (AUA) of the wealth management division was $2.58 billion at September 30, 2013, up from $2.30 billion at December 31, 2012 and $2.15 billion reported at September 30, 2012. The growth in fee income and AUA was due to new business, market value improvement, as well as solid investment advisory and management.

Mr. Kennedy noted, “The wealth management business adds significant value to our Company, and differentiates us from many of our competitors. Conversations with all clients and potential clients across all lines of business include a wealth discussion.”

Other Noninterest Income

In the September 2013 quarter, other noninterest income, exclusive of trust fees and securities gains, totaled $1.30 million, reflecting a decrease of $107 thousand or 8 percent when compared to the same quarter a year ago. The third quarter of 2013 included $277 thousand of income from the sale of newly originated residential mortgage loans, down from $358 thousand in the same 2012 quarter. Mr. Kennedy noted, “Due to the rise in mortgage rates earlier this year, a decrease in residential mortgage loan originations and resultant mortgage banking income was expected for the quarter. A reduced level of mortgage banking income is expected in the foreseeable future. Mortgage banking income is not a significant portion of revenue (only 2 percent of total revenue for the nine months ended September 30, 2013). Further, we have reduced our overhead expense associated with mortgage banking; we have taken steps to improve our loan volume on the commercial front which has and will improve net interest income; and we have introduced Treasury Management services/products, which will contribute to non-interest income in the future.”

Operating Expenses

The Company’s total operating expenses were $14.17 million for the third quarter of 2013 compared to $11.99 million in the same 2012 quarter. The 2013 quarter included the previously mentioned $933 thousand compensation expense accrual related to certain staff restructurings. Excluding this expense accrual, salary and benefits expense rose $965 thousand from the 2012 quarter principally due to strategic hiring in line with the Company’s Strategic Plan, as well as normal salary increases and increased bonus/incentive and profit sharing accruals. The 2013 total expense levels also included various professional and other fees associated with various training and consulting, some of which was associated with the Strategic Plan.

Mr. Kennedy noted, “We expected higher operating expenses in 2013 relative to 2012. And we expect that the trend of higher operating expenses will continue in the future in line with our Strategic Plan. Further, we generally expect revenue and profitability related to those increased expenses to lag those expenses by several quarters. It is important to note, however, that we did see an improvement in revenue in this current quarter relative to the June 2013 quarter, as well as the September 2012 quarter. ”

Provision for Loan Losses / Asset Quality

For the quarter ended September 30, 2013, the Company’s provision for loan losses was $750 thousand compared to the same amount of provision recorded in the third quarter of 2012. Charge-offs, net of recoveries, for the third quarter of 2013 were $132 thousand compared to $543 thousand for the September 2012 quarter. At September 30, 2013 the allowance for loan losses was 204 percent of nonperforming loans and 1.01 percent of total loans.

Nonperforming assets totaled $9.7 million or just 0.54 percent of total assets at September 30, 2013 compared to $20.4 million or 1.29 percent of assets at September 30, 2012. The 0.54 percent nonperforming asset ratio, at September 30, 2013, compares favorably to a 1.20 percent weighted average for all Mid-Atlantic banks.

Capital / Dividends

At September 30, 2013, the Company’s leverage ratio, tier 1 and total risk based capital ratios were 7.20 percent, 11.30 percent and 12.55 percent, respectively. The Company’s ratios are all above the levels necessary to be considered well-capitalized under regulatory guidelines applicable to banks. The Company’s common equity ratio (common equity to total assets) at September 30, 2013 was 7.03 percent of total assets, only down slightly when compared to 7.32 percent at December 31, 2012 and still strong, despite the negative impact to GAAP capital of the September 30, 2013 mark-to-market of the investment portfolio available for sale, due to the rise in market interest rates.

On October 17, 2013, the Board of Directors declared a regular cash dividend of $0.05 per share payable on November 14, 2013 to shareholders of record on October 31, 2013.

As previously announced, on April 19, 2013 the Company filed a Form S-3 Registration Statement registering $50 million in securities, to be issued in the future from time to time at indeterminate prices (“Shelf Registration”). This Shelf Registration was filed to enable the Company to efficiently take advantage of the capital markets from time to time in the future, as needed to support growth associated with its Strategic Plan.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a bank holding company with total assets of $1.80 billion as of September 30, 2013. Established in 1921, Peapack-Gladstone Bank is a commercial bank that offers a full range of quality products and services to businesses, non-profits and consumers through its New Jersey locations, online access, a wealth management division, and its subsidiary, PGB Trust & Investments of Delaware. For additional information about Peapack-Gladstone Bank or to open an account online, visit www.pgbank.com or call 908-234-0700. Member FDIC. Equal Housing Lender.

●	inability to successfully grow our business and implement our strategic plan, including an inability to generate revenues to offset the increased personnel and other costs related to the strategic plan;
●	inability to manage our growth;
●	a continued or unexpected decline in the economy, in particular in our New Jersey and New York market areas;
●	declines in our net interest margin caused by the low interest rate and highly competitive market;
●	declines in value in our investment portfolio;
●	higher than expected increases in our allowance for loan losses;
●	higher than expected increases in loan losses or in the level of nonperforming loans;
●	unexpected changes in interest rates;
●	a continued or unexpected decline in real estate values within our market areas;
●	legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Basel III and related regulations) subject us to additional regulatory oversight which may result in increased compliance costs;
●	successful cyber attacks against our IT infrastructure and that of our IT providers;
●	higher than expected FDIC insurance premiums;
●	lack of liquidity to fund our various cash obligations;
●	reduction in our lower-cost funding sources;
●	our inability to adapt to technological changes;
●	claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters; and
●	other unexpected material adverse changes in our operations or earnings.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

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