• Banking
  • Q&As on the Banking Crisis
• Internet Banking and Bill Pay
• Mortgage
• Security

Banking

Q: Are my deposit accounts FDIC insured?
A: The basic insurance amount is $100,000 per depositor per insured bank. Certain retirement accounts, such as Individual Retirement Accounts (IRAs), are insured up to $250,000 per depositor per insured bank.  FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor through December 31, 2013.

Q: How do I set up Direct Deposit of my payroll check?
A: If your employer participates in a direct deposit program, simply provide our Bank routing and transit number and your account number to the Human Resources or Payroll department at your company, and your direct deposit will usually begin within thirty days.

Q: How do I set up Direct Deposit of my Social Security check?
A: Simply contact us to set-up your direct deposit right over the phone. Please have your Social Security Number and account information available.

Q: Can I get information about my account by phone?
A: Yes! Account information is available through Access24 Phone Banking. Just use a touch-tone phone to call Access24 and follow the simple instructions to quickly and easily: check account balances, check CD and loan rates, inquire about loan balances and payments, transfer funds between accounts, verify interest paid and earned, verify if a check has cleared and more. Call the Access24 Phone Banking System today: Q: What products can I apply for online?
A: We have a variety of personal deposit accounts that you can apply for online. Open an Account

Q: Is interest paid on my checking account?
A: If you want a checking account that pays a market rate of interest, check out our Interest Bearing checking account or our Chairman's Club account, available to those who are 55 or better.

Q: Can I open an account if I don't live in the United States? What if I live in the United States but am not a citizen yet?
A: At this time, we only accept applications from persons residing within the United States with valid U.S. tax identification numbers (Social Security Numbers). If you have questions, please contact us.

Q: Can I do all of my banking with you?
A: Absolutely! And with online banking, Direct Deposit and ATMs, everyday banking activities can be performed when it's convenient for you.

Q: Can I look at all of my transactions at any time?
A: Yes! Online Banking gives you access to your account information 24 hours a day, 7 days a week!

Q: How frequently is my information updated?
A: Your account information is updated every business day with new transactions that posted to your account the previous business day.

Q: Are wire transfers possible to and from my checking, money market and savings accounts?
A: Yes! Funds can be transferred to and from accounts by wire transfer or via ACH (Automated Clearing House) debits or credits. Contact us for more information.

Q: How do I make a deposit to my account from a remote location?
A: Most deposits can be made by using Direct Deposit, ATMs or ACH (Automated Clearing House) transactions. We also offer a bank-by-mail service, which allows you to mail non-recurring deposits. Contact us for details on a method that's best for you.

Q: What happens if I lose my Visa Check Card or ATM card?
A: If your Visa Check Card or ATM card is lost or stolen, you should immediately contact Peapack-Gladstone Bank at (908) 234-0700 or after hours call (866) 546-8273.

The 'Banking Crisis'

(Source American Bankers Association, July 15, 2008)
Q: Is there a banking crisis?
A: Let's set the record straight: The banking industry – traditional federally insured, federally regulated depository institutions which include your local commercial bank, thrift or savings bank -- is safe and sound. And your account in commercial banks, thrifts and savings banks carry FDIC insurance.

Q: How do we know that?
A: Federally regulated banks are required to employ underwriting practices to avoid losses and to promote safe and sound operations. And when they do not operate appropriately, their regulators, who visit them annually, will take exception to such practices and require corrective action.

Q: Who regulates banks?
A: That depends on the bank's charter. There are four federal regulators – the Federal Reserve Board; the Comptroller of the Currency; the Office of Thrift Supervision; and the Federal Deposit Insurance Corporation. The FDIC also insures deposits in its member banks up to $100,000 for regular accounts and up to $250,000 for retirement accounts. That insurance applies to accounts in FDIC member banks that are commercial banks, thrifts and savings banks.

Q: But I'm hearing and seeing so much news that keeps talking about the "banking" crisis. What gives?
A: The problem is that words matter. And when one word is used to mean several different things, it inevitably creates confusion. For example, we know what a bank is. But sometimes a business that wants to add status to its name will call itself a "bank" even though it is not an insured depository institution—such as a commercial bank, thrift or savings bank.  Bear Stearns, the investment house headquartered in New York City, was not a commercial bank. It was an investment "bank."  The word "bank" is also applied to mortgage firms. Their function, their purpose and their regulation differ from federally insured depository institutions. And in this time of market turmoil, it is worthwhile remembering that only commercial banks, thrifts and savings banks carry FDIC insurance.

Q: Market turmoil makes me nervous. What's the banking system – the federally regulated banks you mentioned – doing about it?
A: They are providing stability. Having a safe and sound banking system to rely on shows the importance of the role banks play in our local communities and in our nation's economy. They are the source of stability and of growth. That is true regardless of their asset size, their charter or their business plan. And the vast majority of federally regulated, federally insured banks today hold more capital than the law requires.

Q: I keep seeing headlines and hearing news reports that repeat the word "crisis" – the "subprime crisis."
A: Keep in mind that those reports overlook the fact that the subprime lending crisis was caused by unregulated brokers and Wall Street institutions themselves, sometimes using the title "bank," and not by regulated, insured banks.

Our banking system is strong. This crisis will pass, as have all the others, and the result will be a stronger financial system with fewer unregulated players and a reminder that liquidity and capital are both important to solvency.

Internet Banking and Bill Pay

Q: When do I have access to use Internet Banking?
A: Online Banking gives you access to your account information 24 hours a day, 7 days a week!

Q: Will I be able to use Bill Pay with any of my PGB accounts?
A: No. Bill Pay can only be used with a checking account.

Q: How do I enroll?
A: PGB NetAccess Internet Banking allows you to bank when you want, where you want. To get started simply complete an application:

PGB NetAccess Personal Application
PGB NetAccess Business Application
Q: When can I start using Bill Pay?
A: Within 72 hours your account will be open and ready for you to use.

Q: Is there a fee for Bill Pay?
A: No! It's Free!

Q: What bills can I pay through Bill Pay?
A: You can use Bill Pay to pay practically anything - charge accounts, utilities, auto loans, even your doctor or day-care center.

Q: How many days does it take for a payment to reach the payee?
A: Since payment processing can take three to five working days, the safest thing is to always schedule your payments at least five working days before the due date.

Q: Can anyone else see my accounts over the Internet?
A: Peapack-Gladstone Bank uses the latest technology to keep your account information secure and we have extremely high criteria to guarantee the security of your banking information online. Security features exist at every level-from your PC, to the Internet, and over our secure network. For your peace of mind, PGB NetAccess uses 128-bit encryption, firewalls, remote servers and other techniques to ensure the security and confidentiality of your personal information. A few of these are listed below:

• Your banking information never travels the Internet without encryption protection.
• Login sessions have a time-out limit and after the limit is reached you are required to login again.
• PIN guessing is deterred and reported.
• Multifactor Authentication added in December 2006.

Internet security is an ongoing task. We are constantly developing and implementing security enhancements to ensure the integrity of our Internet Banking system.

Q: What if I have a question about Bill Pay or NetAccess?
A: Peapack-Gladstone Bank is committed to personal service. If you have any questions, call Customer Relations at (908) 234-0700.

Q: What happens if I forget my PIN?
A: If you forget your PIN, contact Customer Relations at (908) 234-0700.

Q: What is Mobile Banking?
A: Very simply, Mobile Banking is the ability to do your banking through your cell phone.  You must be enrolled in our online banking product, NetAccess, and have a cell phone with internet capabilities.  Mobile Banking is FREE however you should contact your cell phone provider to find out what their charges are for web-enabled wireless capabilities and text messaging.  You should also verify if your cell phone provider allows secure SSL Traffic.   
  
Q: How do I activate Mobile Banking?
A: You must already be set-up as a NetAccess online banking customer with Peapack-Gladstone Bank.  If you are not a current Peapck-Gladstone Bank NetAccess user, stop at any of our conveniently located branches  to apply.  If you are a NetAccess user simply log into online banking as you normally would to do your banking via your computer.

• Select Options
• Select Mobile Settings
• Check Activating Mobile Banking Access
• Select the  Accounts you want to access
• Fill in your Cell Phone Number and your Wireless Provider
• Review the Mobile Banking Agreement and click I Agree

A few minutes later you will receive a SMS Text Message on your cell phone confirming your enrollment to our Mobile Banking product.  You will also receive the URL to access your accounts through Mobile Banking.  Now you are ready to start using your cell phone to view accounts, transfer funds and pay bills. 

Q: Which cell phone providers can be used with PGB Mobile Banking?
A: PGB Mobile Banking can be used with the following providers:

• Alltel
• AT&T
• Cellular One
• Cingular
• Nextel
• Sprint PCS
• T-Mobile USA
• Verizon
• Virgin Mobile
  

Mortgage

Q: What are the benefits of an Adjustable Rate Mortgage (ARM)?
A: An ARM usually has a low introductory rate that stays fixed for an initial interest rate period, which ranges from 1 to 7 years. Then the rate will adjust up or down annually for the life of the loan based on a specified index. Some popular indexes used by mortgage lenders include the One Year T-Bill that adjusts weekly or the London Interbank Offered Rate (LIBOR) that adjusts daily, so it reacts more quickly to changes in the financial markets. An ARM is a good option if you believe interest rates will go down over the next few years or if you plan on staying in your home 5 to 7 years or less. Rates and Terms

Q: What are the benefits of a 15-year mortgage? A: A 15-year mortgage allows you to own your home in half the time of a conventional 30-Year mortgage. Although payments are higher with a 15-year mortgage, you'll save thousands of dollars in interest and build equity faster. Rates and Terms

Q: What is "Amortization"?
A: Amortization is the repayment of principal from scheduled mortgage payments that exceed the amount of interest due. The scheduled monthly payment less the interest amount equals the amortization (repayment) amount. For example, a 30-year mortgage includes an amortization –monthly repayment of principal – that will pay off the loan in 30 years. Some borrowers choose to pay extra principal payments to pay off their mortgages before the end of the loan term. As the mortgage principal balance is paid down, each monthly payment will include smaller amounts of interest paid monthly and larger amounts of repayments towards the principal balance.

Q: What is "Negative Amortization"?
A: Negative Amortization is the payment of less than the monthly interest due on a mortgage loan. The interest amount that is not paid is added to the loan balance, increasing the loan amount and decreasing the equity in the property.

Q: What is the Annual Percentage Rate or APR?
A: The Annual Percentage Rate is provided on Lenders' rate sheets and in the Truth-In-Lending Disclosure. It is a comprehensive measure of credit cost to the borrower that takes into account the interest rate, points and other fees charged by the lender. It is a useful tool to use when shopping for a mortgage. You can compare a loan program with the same rate between different lenders to determine which lender has the overall lowest cost mortgage loan.

Q: What is an Escrow Account and how much will I need in my Escrow Account?
A: It is common for home mortgage transactions to include an escrow agreement where the borrower adds a specified amount for taxes and hazard insurance to the regular monthly mortgage payment. The money goes into an escrow account out of which the lender pays the taxes and insurance when they come due.

The escrow account is established with a deposit that the borrower provides at closing. Lenders generally keep enough money in the account to pay the taxes or insurance when they are due and a two-month cushion.

Q: What is Loan-to-value ratio or LTV?
A: LTV is the loan amount divided by the lesser of the selling price or the appraised value. The LTV and down payment are different ways of expressing the same set of facts. If you have a 30% down payment, then you have a 70% loan-to-value. Different loan programs have different maximum LTVs depending on the terms of the loan that you are requesting.

Q: What are points?
A: Points or discount points are an upfront cash payment required by the lender as part of the charge for the loan, expressed as a percent of the loan amount; e.g., "1 point" means a charge of 1% of the loan amount. It is common for most lenders to offer a wide range of rate/point combinations.

Q: What is Private Mortgage Insurance or PMI?
A: Private Mortgage Insurance is insurance required by a lender when more than 80% of a property value is financed. PMI protects the lender in case the borrower(s) stops making payments on the loan. If PMI is required, the lender will usually include an amount to cover the expense in your monthly mortgage payment. Lenders will allow borrower(s) to request the PMI to be cancelled if the loan amount reaches less than 80% of the property value based on the original appraisal, or a new appraisal if the property has appreciated in value. Lenders are required to cancel PMI once the loan balance reaches 78% of the original property value.

Q: Interest-Only Mortgage Payments – Are They For Me?
A: Traditional mortgages allow for amortization, or the repayment of some of the principal balance, on a monthly basis. Interest-only loans allow you to pay only the interest for a specified number of years. After that, your monthly payment increases to include repayment of both the principal and interest for the balance of the term of the loan. For example, if you take out an interest-only loan for 30 years, the interest-only period might be for 10 years, and then the loan payment will be re-calculated at a higher monthly payment amount to repay the loan for the remaining 20 years. The increase in the monthly payment when the loan starts to amortize can be substantial, especially if the loan is an adjustable rate mortgage. This type of loan works best for people who are able to make principal reduction payments during the interest-only period.

Q: Payment-Option ARMs – Are They For Me?
A: A payment-option ARM is an adjustable rate mortgage that allows you to choose among several payment options each month. These options typically include: (1) a traditional payment of principal and interest, (2) an interest-only payment; or, (3) a minimum payment that may be less than the amount of interest due that month. If you choose this option, which is considered negative amortization, the amount of the interest you do not pay will be added to the principal of the loan, increasing the loan amount and hence increasing the amount of interest due on the loan. At the end of the payment option period, the lender will "recast" the loan and depending on the loan balance and the interest rate at the time, the monthly payment could increase significantly. This type of loan works best for people who may currently have modest income, but are reasonably certain that their income will go up in the future, so they will be able to handle the payment increases.

Security

Q: How can I make sure my online banking sessions are secure?
A: We have several effective security features that we encourage you to implement when you use NetAccess Internet Banking:

• Never reveal your password to anyone or leave your password anywhere that someone else can obtain and use it.
• Change your password on a regular basis.
• Use the Exit button to end each Internet Banking session.
• Do not use the Back button to exit the site.
• Balance your account on a regular basis.

Q: What happens if I lose my Visa Check Card or ATM card?
A:  If your Visa Check Card or ATM card is lost or stolen, you should immediately contact Peapack-Gladstone Bank at (908) 234-0700 or after hours call (866) 546-8273.