SHAREHOLDERS EQUITY

12 Months Ended

Dec. 31, 2014

SHAREHOLDERS' EQUITY [Abstract]

SHAREHOLDERS EQUITY

17. SHAREHOLDERS EQUITY

In December 2014, the Company successfully completed the sale of 2,776,215 common shares in its “at-the-market” equity offering program announced on October 23, 2014. The common shares in the offering were sold at a weighted average price of $18.01 per share, representing proceeds to the Company of $48.4 million, net of offering costs of $216 thousand. The Board of Directors authorized the Company to contribute $48.2 million of the proceeds received from the equity offering to the Bank as equity. The Company contributed the cash prior to year end 2014.

In December 2013, the Company successfully completed the sale of 2,470,588 common shares in its rights offering and sale to standby investors. The common shares in the offering were all sold at a price of $17.00 per share, representing proceeds to the Company of $41.1 million, net of offering costs of $900 thousand. On December 19, 2013, the Board of Directors authorized the Company to contribute $40.5 million of the proceeds received from the rights offering to the Bank as equity. At December 31, 2013, the Company entered into a note agreement with the Bank, which resulted in a capital contribution of $40.5 million to the Bank. The note matured on January 10, 2014 and the cash was transferred from the Company to the Bank on January 2, 2014 to satisfy the note agreement.

In addition, the Dividend Reinvestment Plan of Peapack-Gladstone Financial Corporation, or the Plan, allows shareholders of the Company to purchase additional shares of common stock using cash dividends without payment of any brokerage commissions or other charges. In addition, shareholders may also make voluntary cash payments of up to $50,000 per quarter to purchase additional shares of common stock. The Plan provides that shares may be purchased directly from the Company out of its authorized but unissued or treasury shares, or in the open market. During 2013 and 2014 the shares purchased under the Plan were from authorized but unissued shares. The price of shares purchased under the Plan will be the average price paid for such shares by the Plan's administrator, Computershare Investor Services. The price to the Plan administrator of shares purchased directly from Peapack-Gladstone with reinvested dividends or voluntary cash payments will be 97% of their “fair market value,” as that term is herein defined in the Plan. The 3% discount will continue until terminated or modified by action of the Board of Directors. Total shares issued through the Plan in 2014 totaled 416,057 that resulted in additional capital of $7.4 million, of which 404,000 shares were issued through the voluntary purchase portion of the Plan. Total shares issued through the Plan in 2013 totaled 200,265 that resulted in additional capital of $3.2 million, of which 194,000 shares were issued through the voluntary purchase portion of the Plan.