11.

BENEFIT PLANS

The Company sponsors a profit sharing plan and a savings plan under Section 401(K) of the Internal Revenue Code, covering substantially all salaried employees over the age of 21 with at least 12 months of service. Under the savings plan, the Company contributes three percent of salary for each employee regardless of the employees' contributions as well as partially matching employee contributions. The Company contributed to an enhanced benefit plan to employees who were previously in the defined benefit plan, which was discontinued in 2008. This enhanced benefit was discretionary and was eliminated in 2014. In 2013 and 2012, the enhanced benefit was approximately $850 thousand and $856 thousand, respectively. Expense for the savings plan totaled approximately $1.4 million, $1.9 million and $1.8 million in 2014, 2013 and 2012, respectively.

Contributions to the profit sharing plan are made at the discretion of the Board of Directors and all funds are invested solely in Peapack-Gladstone Financial Corporation common stock. The Company did not contribute to the profit sharing plan in 2014. The aggregate contribution to the profit sharing plan was $200 thousand in each of 2013 and 2012.