This is almost incomprehensible for a bank of this size: I cannot even begin to explain what is going through my mind. The meeting on Jan 6th is a must attend for all shareholders: Read below.



:31PM Peapack-Gladstone Financial reports reasonable liklihood that it would take a "material OTTI charge" in Q4 (PGC) : Co reports that the Corporation would take a material Other Than Temporary Impairment (O.T.T.I.) charge in 4Q08 relating to its portfolio of Trust Preferred Pooled Securities. The Corporation's subsidiary Peapack-Gladstone Bank has two primary asset portfolios: its loan portfolio, which was $1.04 bln at Sep 30, 2008, and its investment portfolio, which was $239 mln at Sep 30, 2008, and consists primarily of interest bearing or dividend paying obligations like bonds and preferred stocks. The Corporation's investments in the trust preferred securities primarily represent an investment in community banks around the country. Unfortunately, many of these community banks are deeply involved in real estate lending in areas hard hit by the real estate downturn, and many have come under considerable pressure as a result of significant defaults within their real estate loan portfolios. Because of the significant stress on their loan portfolios, a growing number of these banks have deferred paying dividends on the trust preferred shares they issued to the pools in which the Corporation invested. In addition, there is a widespread belief among market participants, who in normal times transact in these securities in the secondary market, that additional banks will defer paying dividends as the real estate and economic downturn continues. As a result of these factors, together with the fact that risk premiums have recently increased markedly across almost all asset classes, including the trust preferred asset class, the fair value of the Corporation's trust preferred securities, or the value the Corporation could realize if it were forced to sell the securities into the secondary market now, has declined materially. The amortized cost of these securities is $67.1 mln, and as of Nov 30, 2008, the estimated fair value of these securities had not been determined as the market for these securities is illiquid. However, the fair value could be as low as $12.7 mln.