UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 11-K

 

 

 ANNUAL REPORT PURSUANT TO SECTION 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the fiscal year ended December 31, 2020

 

 

OR

 

 

 TRANSITION REPORT PURSUANT TO SECTION 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

Commission File Number:  001-16197

 

 

A.

Full title of the plan and address of the plan, if different from that of the issuer named below:

 

 

Peapack-Gladstone Bank Employees’ Savings and Investment Plan

 

 

B.

Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

 

 

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

500 Hills Drive, Suite 300

Bedminster, New Jersey 07921-1538

 


 

 


 

PEAPACK-GLADSTONE BANK

EMPLOYEES’ SAVINGS AND

INVESTMENT PLAN

 

FINANCIAL STATEMENTS

December 31, 2020 and 2019

 

 

 

 


 

 

FINANCIAL STATEMENTS

December 31, 2020 and 2019

 

CONTENTS

 

 

 

 

 


 

 

 

Report of Independent Registered Public Accounting Firm

 

Plan Participants and Plan Administrator

Peapack-Gladstone Bank Employees’ Savings and Investment Plan

Bedminster, New Jersey

 

 

Opinion on the Financial Statements

 

We have audited the accompanying statements of net assets available for benefits of Peapack-Gladstone Bank Employees’ Savings and Investment Plan (the “Plan”) as of December 31, 2020 and 2019, the related statement of changes in net assets available for benefits for the year ended December 31, 2020, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2020 and 2019, and the changes in net assets available for benefits for the year ended December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on the Plan's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

Supplemental Information

 

The supplemental Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2020 has been subjected to audit procedures performed in conjunction with the audit of Peapack-Gladstone Bank Employees’ Savings and Investment Plan’s financial statements. The supplemental schedule is the responsibility of the Plan’s management. Our audit procedures included determining whether the information presented in the supplemental schedule reconciles to the financial statements or the underlying

4

 


 

 

accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplemental schedule, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental schedule is fairly stated in all material respects in relation to the financial statements as a whole.

 

 

 

/s/ Crowe LLP

Crowe LLP

 

We have served as the Plan's auditor since 2007.

 

New York, New York

June 25, 2021

 

 

5

 


PEAPACK-GLADSTONE BANK EMPLOYEES’ SAVINGS AND INVESTMENT PLAN

STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS

December 31, 2020 and December 31, 2019

 

 

 

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

Investments at fair value (Note 4)

 

$

57,156,474

 

 

$

47,164,222

 

Investment at contract value (Note 5)

 

 

8,263,247

 

 

 

6,718,886

 

Receivables:

 

 

 

 

 

 

 

 

Employer contribution receivable

 

 

177,492

 

 

 

137,362

 

Notes receivable from participants

 

 

631,384

 

 

 

538,326

 

Total receivables

 

 

808,876

 

 

 

675,688

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

66,228,597

 

 

 

54,558,796

 

 

 

 

 

 

 

 

 

 

NET ASSETS AVAILABLE FOR BENEFITS

 

$

66,228,597

 

 

$

54,558,796

 

 

See accompanying notes to the financial statements.

 

 

6

 


PEAPACK-GLADSTONE BANK EMPLOYEES’ SAVINGS AND INVESTMENT PLAN

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

Year Ended December 31, 2020

 

 

 

 

Additions to net assets attributed to:

 

 

 

 

Contributions:

 

 

 

 

Participant contributions

 

$

4,841,772

 

Employer contributions-Cash

 

 

1,499,405

 

Employee rollovers

 

 

205,865

 

Total contributions

 

 

6,547,042

 

 

 

 

 

 

Investment income:

 

 

 

 

Net appreciation in fair value of investments

 

 

4,935,055

 

Dividend income

 

 

571,010

 

Interest income

 

 

1,333,741

 

Total income

 

 

6,839,806

 

 

 

 

 

 

Total additions

 

 

13,386,848

 

 

 

 

 

 

Deductions from net assets attributable to:

 

 

 

 

Miscellaneous fees

 

 

4,215

 

Benefits paid to participants

 

 

1,712,832

 

Total deductions

 

 

1,717,047

 

 

 

 

 

 

Net increase in net assets available for benefits

 

 

11,669,801

 

 

 

 

 

 

Net assets available for benefits

 

 

 

 

Beginning of year

 

 

54,558,796

 

 

 

 

 

 

End of year

 

$

66,228,597

 

 

See accompanying notes to the financial statements.

7

 


PEAPACK-GLADSTONE BANK EMPLOYEES’ SAVINGS AND INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2020 and 2019

 

 

 

NOTE 1 - DESCRIPTION OF PLAN

The following description of the Peapack-Gladstone Bank Employees’ Savings and Investment Plan (“the Plan”) provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan’s provisions.

General: The Plan is a participant-directed, tax-qualified defined contribution plan covering all full-time employees of the Peapack-Gladstone Bank (“the Bank”) who have met the eligibility requirements, as defined below. It is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

The Plan includes an automatic deferral feature. Accordingly, the Employer will automatically withhold a portion of the participant’s base compensation from his or her pay each payroll period and contribute that amount to the Plan as a pre-tax 401(k) deferral unless the participant makes a contrary election.  The automatic deferral percentage will increase by 1% per year up to a maximum of 10% of compensation.

Contributions: Participants are eligible to participate for purposes of elective deferrals when they have attained the age of 21 and have completed one quarter of a year of service. A ‘year of service’ is defined as 1,000 hours in a 12-consecutive month period beginning with the participant’s hire date. Each year, participants may contribute up to 92% of base compensation, as defined in the Plan, up to the Internal Revenue Service (“IRS”) limit of $19,500 for 2020.  Participants may also contribute amounts representing distributions from other qualified defined benefit or contribution plans in the form of rollovers.  If a participant is at least age 50 or will attain age 50 before the end of a calendar year, then the participant may elect to defer additional amounts in whole percentage amounts (called "catch-up contributions") to the plan for that year. The additional amounts may be deferred regardless of any other limitations on the amount that the participant may defer to the plan. The maximum "catch-up contribution" that a participant can make in 2020 was $6,500. After 2020, the maximum may increase for cost-of-living adjustments.  Any "catch-up contributions" that a participant makes will not be taken into account in determining any Employer matching contribution made to the Plan.

For participants who have attained the age of 21 and have completed one quarter of a year of service, they shall be eligible to participate with respect to a match contribution (the “Match Contributions”) as of the date the participant has satisfied such requirement. The Bank shall contribute for each payroll period on behalf of each participant, an amount equal to 50% of salary reduction deferrals made on behalf of the participant, up to 6% of the participant’s compensation. For 2020, the Bank contributed $1,499,405 in cash to the Plan through the Match Contribution.

8

 


PEAPACK-GLADSTONE BANK EMPLOYEES’ SAVINGS AND INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2020 and 2019

 

 

NOTE 1 - DESCRIPTION OF PLAN (Continued)

Each year, the Bank may elect, at its discretion, to make contributions to the Plan for those participants who have attained the age of 21, have completed one year of service, and are employed by the Bank on the last day of the Plan year (the “Profit Sharing Contribution”).  The Bank did not make a Profit Sharing Contribution to the Plan in 2020.

Each year, the Bank may elect, at its discretion, to make contributions to the Plan for those participants who were participants in the Peapack-Gladstone Bank Employees’ Retirement Plan (“Pension Plan”) as of May 12, 2008 (“Determination Date”).  The Bank did not make an “Age and Service” Contribution to the Plan in 2020.

Each year, the Bank may elect, at its discretion, to make contributions to the Plan for those participants who were participants in the Pension Plan as of the Determination Date.  The Bank did not make an “Enhanced Contribution” to the Plan in 2020.

Each year, the Bank may elect, at its discretion, to make a Qualified Non-Elective Contribution (“QNEC Contribution”) to all eligible participants.  While no QNEC Contribution has been determined at this time related to 2020, the Bank may choose to make this contribution at a later date.  

Participant Accounts: Each participant’s account is credited with the participant’s contribution and allocation of (a) the Bank’s contributions and (b) Plan earnings and is charged with his or her withdrawals and an allocation of administrative expense. Allocations are based on participant earnings or account balances, as defined in the Plan. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account. Each participant directs the investment of his or her account to any of the investment options available under the Plan.

Vesting: Participants are immediately vested in their contributions, plus actual earnings or losses thereon. Vesting in the matching and non-matching contributions portion of their accounts, plus actual earnings or losses thereon, is based on years of continuous service, as defined in the Plan. A participant is 100% vested after three years of continuous service.

Payment of Benefits:   On termination of service due to death, disability, or retirement, a participant may elect to receive either a lump-sum amount equal to the value of the participant’s vested interest in his or her account, or equal periodic installments. For termination of service due to other reasons, a participant may receive the value of the vested interest in his or her account as a lump-sum distribution.

9

 


PEAPACK-GLADSTONE BANK EMPLOYEES’ SAVINGS AND INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2020 and 2019

 

 

NOTE 1 - DESCRIPTION OF PLAN (Continued)

Forfeitures: Forfeitures of employer contributions arising from the termination of members who were not fully vested shall be used to offset future employer contributions.  Nonvested portions of participant accounts are considered to be forfeited as of the last day of the plan year in which the later of the one-year break-in-service or distribution occurs. The total forfeitures available for use to reduce future contributions were $44,691 for 2019 and $1,938 for 2020, respectively.  In 2020, $53,216 were used to fund the employer contribution.

Management of Trust Funds: The assets of the Plan are managed by Prudential Insurance Company of America (“Prudential”) through its Prudential Investment Management Services unit.

Notes Receivable from Participants (“Loans”): Participants may borrow from their fund accounts up to maximum equal to the lesser of $50,000 or 50% of their vested account balance. Loan transactions are treated as a transfer to (from) the investment funds from (to) the loan fund. Loan terms range from one to five years or longer for the purchase of a primary residence. The loans are secured by the balance in the participant’s account and bear interest at a rate commensurate with local prevailing rates as determined quarterly by the Plan administrator. Principal and interest is paid ratably through monthly payroll deductions.

Administrative Expenses: Generally, the administrative expenses are paid by the Bank. However, investment management fees and operating expenses charged to the Plan for investments in the mutual funds are deducted from income earned on a daily basis and are not separately reflected. Consequently, management fees and operating expenses are reflected as a reduction of investment return for such investments.


10

 


PEAPACK-GLADSTONE BANK EMPLOYEES’ SAVINGS AND INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2020 and 2019

 

 

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting: The accompanying financial statements of the Plan have been prepared using the accrual basis of accounting and present the net assets available for benefits and the changes in those net assets.

Investment Valuation and Income Recognition:  Other than the fully benefit-responsive contract, which is reported at contract value, the Plan’s investments are reported at fair value. Contract value is the relevant measure for the Plan’s fully benefit-responsive investment contracts, because contract value is the amount Plan participants generally receive when executing transactions under the terms of the contract and Plan provisions.  Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.  Net appreciation (depreciation) includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

Payment of Benefits: Benefits are recorded when paid.

Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Plan administrator to make estimates and assumptions that affect certain reported amounts and disclosures, and actual results may differ from these estimates.

Risks and Uncertainties: The Plan holds various investments. Investments are exposed to various risks such as interest rate, market, liquidity and credit risks. Due to the level of risk associated with certain investments and the sensitivity of certain fair value estimates to changes in valuation assumptions, it is at least reasonably possible that changes in the fair values of investments will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

Concentration of Credit Risk: At December 31, 2020 and 2019, approximately 7.4% and 11.0% of the Plan’s investments were invested in Peapack-Gladstone Financial Corporation Common Stock, respectively.

Notes Receivable from Participants: Notes receivable from participants are reported at their unpaid principal balance plus any accrued but unpaid interest, with no allowance for credit losses, as repayments of principal and interest are received through payroll deductions and the notes are collateralized by the participants’ account balances.


11

 


PEAPACK-GLADSTONE BANK EMPLOYEES’ SAVINGS AND INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2020 and 2019

 

 

 

NOTE 3 - RIGHTS UPON PLAN TERMINATION

Although the Bank has not expressed intent to terminate the Plan, it may do so at any time by action of its Board of Directors subject to the provisions of ERISA. If the Plan were terminated or partially terminated pursuant to ERISA, however, all members of the Plan would automatically become 100% vested in their fund balances.

NOTE 4 - FAIR VALUE MEASUREMENTS

Fair value is the price that would be received by the Plan for an asset or paid by the Plan to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date in the Plan’s principal or most advantageous market for the asset or liability. Fair value measurements are determined by maximizing the use of observable inputs and minimizing the use of unobservable inputs. The hierarchy places the highest priority on unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurements) and gives the lowest priority to unobservable inputs (Level 3 measurements). The three levels of inputs within the fair value hierarchy are defined as follows:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the Plan has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect the Plan’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

In some cases, a valuation technique used to measure fair value may include inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.

The following descriptions of the valuation methods and assumptions used by the Plan to estimate the fair values of investments apply to investments held directly by the Plan.

Mutual Funds: The fair values of mutual fund investments are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs).


12

 


PEAPACK-GLADSTONE BANK EMPLOYEES’ SAVINGS AND INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2020 and 2019

 

 

 

NOTE 4 - FAIR VALUE MEASUREMENTS (Continued)

Company Common Stock: The fair value of the Peapack-Gladstone Financial Corporation common stock investment is determined by obtaining quoted prices on Nasdaq, a nationally recognized stock exchange (Level 1 inputs).

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Investments measured at fair value on a recurring basis are summarized below:

 

 

 

Fair Value Measurements

 

 

 

At December 31, Using

 

 

 

Quoted Prices

 

 

Significant

 

 

 

 

 

 

 

 

In Active

 

 

Other

 

Significant

 

 

 

 

 

 

Markets for

 

 

Observable

 

Unobservable

 

 

 

 

 

 

Identical Assets

 

 

Inputs

 

Inputs

 

 

 

 

 

 

(Level 1)

 

 

(Level 2)

 

(Level 3)

 

Total

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

Peapack-Gladstone Financial Corporation

   common stock

 

$

4,864,871

 

 

-

 

-

 

$

4,864,871

 

Mutual Funds

 

 

52,291,603

 

 

-

 

-

 

 

52,291,603

 

Total

 

$

57,156,474

 

 

-

 

-

 

$

57,156,474

 

 

 

 

Fair Value Measurements

 

 

 

At December 31, Using

 

 

 

Quoted Prices

 

 

Significant

 

 

 

 

 

 

 

 

In Active

 

 

Other

 

Significant

 

 

 

 

 

 

Markets for

 

 

Observable

 

Unobservable

 

 

 

 

 

 

Identical Assets

 

 

Inputs

 

Inputs

 

 

 

 

 

 

(Level 1)

 

 

(Level 2)

 

(Level 3)

 

Total

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

Peapack-Gladstone Financial Corporation

   common stock

 

$

5,913,681

 

 

-

 

-

 

$

5,913,681

 

Mutual Funds

 

 

41,250,541

 

 

-

 

-

 

 

41,250,541

 

Total

 

$

47,164,222

 

 

-

 

-

 

$

47,164,222

 

 

There were no significant transfers between Level 1 and Level 2 during 2020.

13

 


PEAPACK-GLADSTONE BANK EMPLOYEES’ SAVINGS AND INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2020 and 2019

 

 

NOTE 5 - INVESTMENT CONTRACT WITH INSURANCE COMPANY

In 2006, the Plan entered into a fully benefit-responsive group annuity contract with Prudential Retirement Insurance & Annuity Company (“PRIAC”), an indirect wholly owned subsidiary of Prudential Financial, Inc., by investing in the PRIAC Guaranteed Income Fund. PRIAC maintains the contributions in its general account. The account is credited with earnings on the underlying investments and charged for participant withdrawals and administrative expenses. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investments at contract value. Contract value represents contributions made under the contract, plus earnings, less participant withdrawals and administrative expenses. There are no reserves against contract value for credit risk of PRIAC or otherwise.

The fully benefit-responsive group annuity contract is a traditional contract, whereby the Plan owns only the contract itself.

 

 

2020

 

 

2019

 

Traditional Investment Contract

 

$

8,263,247

 

 

$

6,718,886

 

 

The Plan’s investment contract specifies that generally there are not any events that could limit the ability of the Plan to transact at contract value paid within 90 days or in rare circumstances, contract value paid over time. There are not any events that allow the issuer to terminate the contract and which require the plan sponsor to settle at an amount different than contract value paid either within 90 days or over time. Currently, management believes that the occurrence of an event that would cause the Plan to transact contract distributions at less than contract value is not probable.

The crediting interest rate of the contract is based on an agreed‑upon formula with PRIAC, as defined in the contract agreement, but cannot be less than 1.5%. Such interest rates are reviewed on a semiannual basis for resetting. The key factors that influence future interest crediting rates could include the following: current economic and market conditions; the level of market interest rates; and both the expected and actual experience of a reference portfolio within PRIAC’s general account.

14

 


PEAPACK-GLADSTONE BANK EMPLOYEES’ SAVINGS AND INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2020 and 2019

 

 

NOTE 6 - TAX STATUS

The Plan was designed under the Prudential Insurance Company of America Prototype Plan and Trust. The Prototype Plan received a favorable tax opinion letter dated April 29, 2014. The Plan administrator believes that the Plan has been designed to be a qualified plan as described in Section 401(a) of the Internal Revenue Code (“IRC”), and therefore exempt from payment of federal income taxes under provisions of Section 501(a) of the IRC. The Plan has been amended since the opinion letter was received. However, the Plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC.

U.S. GAAP requires plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2020 and 2019, there are no uncertain tax positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The plan administrator believes it is no longer subject to income tax examinations for years prior to 2017.

15

 


PEAPACK-GLADSTONE BANK EMPLOYEES’ SAVINGS AND INVESTMENT PLAN

NOTES TO FINANCIAL STATEMENTS

December 31, 2020 and 2019

 

 

NOTE 7 – RISKS AND UNCERTAINTIES

The Plan primarily invests in various investments which are exposed to various risks, such as interest rate, market, and credit risks.  Due to the level of risk associated with certain investments, it is reasonably possible that changes in the value of investments will occur in the near-term and that such changes could materially affect participants' account balances and the amounts reported in the accompanying statements of net assets available for benefits and supplemental schedule.

 

During March 2020, the World Health Organization declared the novel strain of coronavirus (“COVID-19”) a global pandemic in response to the rapidly growing outbreak of the virus. The COVID-19 pandemic is having, and will likely continue to have, significant effects on global markets, businesses, and communities. While the full impact of COVID-19 is unknown and cannot be reasonably estimated as these events are still developing, it could impact the volatility of the Company’s share price, valuation of investments held by the Plan and net investment income. The impact to participants would be dependent on the timing of distributions and the related share price of investments held at the distribution date.

 

NOTE 8 - PARTY-IN-INTEREST TRANSACTIONS

Parties-in-interest are defined under Department of Labor regulations as any fiduciary of the Plan, any party rendering service to the Plan, the employer, and certain others. The Plan holds a guaranteed investment contract with PRIAC, which is also a custodian of the Plan. The Plan also holds shares of Peapack-Gladstone Financial Corporation Common Stock, for which the number of shares and fair values were 213,746 and $4,864,871, respectively, as of December 31, 2020; and, 191,381 and $5,913,681, respectively, as of December 31, 2019. The Plan recognized dividend income of $40,970 during 2020 from this related-party investment. Notes receivable from participants held by the Plan and related fees, also reflect party-in-interest transactions.

Certain administrative functions are performed by officers or employees of the Bank. No such officer or employee receives compensation from the Plan. As described above, the administrative expenses of the Plan are generally paid directly by the Bank.

 

NOTE 9 – SUBSEQUENT EVENTS

The Plan has evaluated, for consideration of recognition or disclosure, subsequent events that have occurred through the date of issuance, June xx, 2021, and has determined that no significant events occurred after December 31, 2020, but prior to the issuance of these financial statements, that would have a material impact on its financial statements.

 

16

 


 

 

SUPPLEMENTAL SCHEDULE

 

17

 


PEAPACK-GLADSTONE BANK EMPLOYEES’ SAVINGS AND INVESTMENT PLAN

SCHEDULE H, LINE 4(i) – SCHEDULE OF ASSETS (HELD AT END OF YEAR)

December 31, 2020

 

 

 

Plan Sponsor:

 

Peapack–Gladstone Financial Corporation

 

 

 

 

 

Employer Identification Number:

 

22-2491488

 

 

 

 

 

Plan Number:

 

002

 

 

 

 

 

 

(c)

 

 

 

 

 

 

 

 

 

 

Description of Investment,

 

 

 

 

 

 

 

 

(b)

 

Including Maturity Date,

 

 

 

(e)

 

 

 

Identify of Issuer, Borrower,

 

Rate of Interest,

 

(d)

 

Current

 

(a)

 

Lessor, or Similar Party

 

Par or Maturity Value

 

Cost

 

Value

 

*

 

Peapack-Gladstone

Financial Corporation

 

Common stock

 

#

 

 

4,864,871

 

Mutual Funds

 

 

 

American Funds

 

American Funds Europacific Fund

 

#

 

 

5,820,233

 

 

 

American Century

 

American Century Mid Cap Value

 

#

 

 

309,768

 

 

 

Gabelli

 

Gabelli Small-Cap Growth

 

#

 

 

1,070,337

 

 

 

Goldman Sachs

 

Goldman Sachs Small-Cap Value

 

#

 

 

2,594,054

 

 

 

Invesco

 

Invesco Comstock

 

#

 

 

3,989,980

 

 

 

Invesco

 

Invesco Equity & Income

 

#

 

 

2,412,384

 

 

 

JP Morgan

 

JP Morgan Mid-Cap Growth A

 

#

 

 

3,661,829

 

 

 

Massachusetts Investors

 

MFS Massachusetts Investors

Growth Stock R3

 

#

 

 

8,957,394

 

 

 

Massachusetts Investors

 

MFS International Diversification R3

 

#

 

 

747,000

 

 

 

Pioneer

 

Pioneer Strat Income A

 

#

 

 

784,547

 

 

 

18

 


 

 

 

 

 

 

 

(c)

 

 

 

 

 

 

 

 

 

 

Description of Investment,

 

 

 

 

 

 

 

 

(b)

 

Including Maturity Date,

 

 

 

(e)

 

 

 

Identify of Issuer, Borrower,

 

Rate of Interest,

 

(d)

 

Current

 

(a)

 

Lessor, or Similar Party

 

Par or Maturity Value

 

Cost

 

Value

 

 

 

Putnam

 

Putnam Income A

 

#

 

 

5,048,739

 

 

 

Vanguard

 

Vanguard Intermediate Term

 

#

 

 

1,778,336

 

 

 

Vanguard

 

Vanguard FTSE World Index Admiral

 

#

 

 

1,030,597

 

 

 

Vanguard

 

Vanguard Small-Cap Index Admiral

 

#

 

 

1,451,374

 

 

 

Vanguard

 

Vanguard 500 Index Admiral

 

#

 

 

10,844,055

 

 

 

Vanguard

 

Vanguard FTSE Social Index Admiral

 

#

 

 

168,026

 

 

 

Vanguard

 

Vanguard Mid-Cap Index Fund

 

#

 

 

1,622,951

 

 

 

 

 

 

 

 

 

 

52,291,603

 

Investment Contract

 

*

 

Prudential Retirement Insurance and Annuity Company

 

Guaranteed Income Fund

Agreement No: GA-39867

 

#

 

 

8,263,247

 

 

 

 

 

 

 

 

 

 

 

 

Notes Receivable from Participants

 

*

 

Participant Loans

 

Interest rates 4.25% to 6.50%

Maturing at various dates through 2029

 

-

 

 

631,384

 

 

 

Total

 

 

 

 

 

$

66,051,105

 

 

*A party-in-interest, as defined by ERISA.

#Investments are participant directed and therefore cost information is not presented.

 


19

 


 

 

 

Exhibit Index

 

Exhibit Number

 

Document

 

 

 

Exhibit 23.1

 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

 

 


20

 


 

 

SIGNATURES

 

 

The Plan.  Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

Peapack-Gladstone Bank Employees’ Savings and Investment Plan

 

 

 

 

 

 

Date:  June 28, 2021

By:

/s/ Cecelia T. Lardieri

 

 

Name: Cecelia T. Lardieri

 

 

Title: Plan Administrator

 

 

 

 

21

 

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