BEDMINSTER, NJ - January 29, 2026 (NEWMEDIAWIRE) - Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the "Company") announces its fourth quarter 2025 financial results.

This earnings release should be read in conjunction with the Company’s Q4 2025 Investor Update, a copy of which is available on our website at www.peapackprivate.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. 

The Company recorded net income of $12.2 million and diluted earnings per share (“EPS”) of $0.69 for the quarter ended December 31, 2025, which is an increase of 26%, compared to net income of $9.6 million and diluted EPS of $0.54 for the quarter ended September 30, 2025.

Net income for the twelve-month period ended December 31, 2025 grew by 13% to $37.3 million, or $2.10 per share, compared to $33.0 million, or $1.85 per share for the twelve months ended December 31, 2024. 

Total deposits grew by a net amount of $460 million, or 8%, over the last twelve months to $6.6 billion at December 31, 2025. Core relationship deposits increased $828 million for the year, as the Company continues to replace higher-cost deposit balances with new relationships at a lower funding cost. Noninterest-bearing deposit growth was strong throughout the year increasing by $316 million, or 28%, during 2025. Total loans grew by $738 million, or 13%, to $6.3 billion during the twelve-month period ended December 31, 2025. Loans were originated at a weighted average coupon of 6.60% during the year, resulting in an incremental spread of more than 400 basis points on new business when compared to funding sources in 2025.

Net interest income increased $6.0 million, or 12%, on a linked quarter basis to $56.5 million for the fourth quarter of 2025 compared to $50.6 million for the third quarter of 2025.  The growth in net interest income was driven by improvement in the cost on average interest-bearing liabilities, as well as continued improvement in the net interest margin. The net interest margin ("NIM") increased to 3.08% for the quarter ended December 31, 2025 compared to 2.81% for the quarter ended September 30, 2025 and 2.46% for the quarter ended December 31, 2024.

Douglas L. Kennedy, President and CEO stated, “Our fourth quarter results demonstrate our ability to digest significant investments over a short period of time while delivering earnings growth, improved operating leverage, and meaningful shareholder value. Strong core deposit growth, disciplined pricing, and consistent execution have driven eight consecutive quarters of net interest income growth and continued expansion in our net interest margin. The transformation of our deposit base is a key differentiator for Peapack Private.”

Mr. Kennedy added, “Anchored by a $13 billion wealth management franchise, our private banking model continues to deliver stable fee income, deeper client relationships, and long-term growth opportunities. We believe Peapack Private Bank & Trust is the premier boutique alternative to the mega banks in metro New York, and the success of our expansion efforts continue to exceed expectations affirming this belief."

The following are select highlights for the period ended December 31, 2025: 

Commercial Banking and Balance Sheet Management:

• Total loans increased $738 million to $6.3 billion at December 31, 2025 from $5.5 billion at December 31, 2024.
• Commercial and industrial lending (“C&I”) accounted for 55% of new business originations during the fourth quarter. C&I balances represented 44% of the total loan portfolio at December 31, 2025.
• Total deposits increased by $460 million, to $6.6 billion at December 31, 2025 compared to $6.1 billion at December 31, 2024.  Noninterest-bearing demand deposits grew $105 million during the fourth quarter ($316 million year-to-date).
• Fee income on unused commercial lines of credit totaled $908,000 for Q4 2025.
• The NIM expanded to 3.08% for Q4 2025, an increase of 27 basis points compared to 2.81% for Q3 2025.

Wealth Management:

• AUM/AUA in our Wealth Management Division grew by $1.2 billion to $13.1 billion at December 31, 2025 compared to $11.9 billion at December 31, 2024.
• New business inflows totaled $291 million in Q4 2025 and $1.0 billion for the full year 2025.  
• Wealth Management fee income was $16.1 million in Q4 2025, which amounted to 21% of total revenue for the quarter.

Capital Management: 

• Tangible book value per share increased 10% to $34.99 per share at December 31, 2025 compared to $31.89 at December 31, 2024. Book value per share increased 9% to $37.49 per share at December 31, 2025 compared to $34.45 at December 31, 2024.
• At December 31, 2025, the Tier 1 Leverage Ratio was 9.89% for Peapack Private Bank & Trust (the "Bank") and 8.87% for the Company. The Common Equity Tier 1 Ratio was 11.52% for the Bank and 10.33% for the Company at December 31, 2025. These ratios remain significantly above well capitalized standards, as capital continues to benefit from net income generation.

SUMMARY INCOME STATEMENT DETAILS:

The following tables summarize specified financial details for the periods shown.

SUPPLEMENTAL QUARTERLY DETAILS:

Wealth Management

AUM/AUA in the Bank’s Wealth Management Division increased to $13.1 billion at December 31, 2025 compared to $11.9 billion at December 31, 2024.  For the December 2025 quarter, the Wealth Management Team generated $16.1 million in fee income, compared to $15.8 million for the September 30, 2025 quarter and $15.5 million for the December 2024 quarter.

John Babcock, President of the Bank's Wealth Management Division, noted, “Our Wealth Management business delivered another strong quarter, driven by continued client inflows and the depth of our advisory relationships. We ended the year with a record $13.1 billion in assets under management and administration, reflecting both organic growth and market appreciation. Our integrated wealth platform, combined with our high-touch service model, continues to resonate with high-net-worth clients across our market."

Loans / Commercial Banking

Total loans increased $738 million, or 13%, to $6.3 billion at December 30, 2025, compared to $5.5 billion at December 31, 2024, primarily driven by commercial and industrial loan originations during the year. C&I growth was driven by business expansion and capital investment. Total C&I loans and leases at December 31, 2025 were $2.7 billion or 44% of the total loan portfolio.

Mr. Kennedy noted, “Loan growth during the quarter was driven by our core C&I franchise, including equipment finance, where we continue to see strong demand from well-capitalized middle-market clients. We are scaling our C&I platform while maintaining disciplined underwriting standards and reducing reliance on higher-risk segments, which we believe positions the loan portfolio for durable, risk-adjusted growth. Our Commercial Real Estate lending team also contributed to the growth in the period focusing on clients that bring a complete relationship to Peapack Private.”

Net Interest Income (NII)/Net Interest Margin (NIM)

The Company’s NII of $56.5 million and NIM of 3.08% for Q4 2025 increased $6.0 million and 27 basis points from NII of $50.6 million and NIM of 2.81% for the linked quarter (Q3 2025) and increased $14.6 million and 62 basis points from NII of $41.9 million and NIM of 2.46% compared to the prior year period (Q4 2024). Our single point of contact private banking strategy and metro New York City expansion continues to deliver lower-cost core deposit relationships resulting in consistent improvement in our cost of funds and net interest margin.

Funding / Liquidity / Interest Rate Risk Management

Total deposits increased $460 million to $6.6 billion at December 31, 2025 from $6.1 billion at December 31, 2024.  The growth in deposits strengthened balance sheet liquidity and significantly reduced reliance on outside borrowings and other non-core funding sources. Outstanding overnight borrowings totaled $73.3 million at December 31, 2025.

At December 31, 2025, the Company’s balance sheet liquidity totaled $990 million, or 13% of total assets. The Company maintains additional liquidity resources of approximately $3.6 billion through secured available borrowing facilities with the Federal Home Loan Bank and the Federal Reserve Discount Window.  The available funding from the Federal Home Loan Bank and the Federal Reserve are secured by the Company’s loan and investment portfolios. The Company's total on and off-balance sheet liquidity totaled $4.6 billion at December 31, 2025, which amounted to 244% of the total uninsured/uncollateralized deposits currently on the Company’s balance sheet.

Income from Capital Markets Activities 

Noninterest income from Capital Markets activities (detailed below) totaled $873,000 for the December 2025 quarter compared to $901,000 for the September 2025 quarter and $114,000 for the December 2024 quarter.  The third quarter of 2025 included revenue from a corporate advisory transaction in the amount of $639,000.

Other Noninterest Income (other than Wealth Management Fee Income and Income from Capital Markets Activities)

Other noninterest income was $4.7 million for Q4 2025 compared to $3.4 million for Q3 2025 and $4.3 million for Q4 2024.  Q4 2025 included income of $357,000 recorded by the Equipment Finance Division related to equipment transfers to lessees upon the termination of leases compared to income of $398,000 for Q3 2025 and $646,000 for Q4 2024.  Additionally, Q4 2025 included $908,000 of unused line fees compared to $825,000 for Q3 2025 and $880,000 for Q4 2024.  Other income also included a gain on sale of property of $318,000 in the fourth quarter of 2025.

Operating Expenses

Total operating expenses were $53.5 million for the fourth quarter of 2025, compared to $52.3 million for the third quarter of 2025 and $47.9 million for the quarter ended December 31, 2024. The increase during the fourth quarter was primarily driven by expenses associated with the Company’s ongoing expansion into New York City and Long Island, including higher premises and equipment expenses.  Premises and equipment expense increased by $465,000 in the fourth quarter of 2025 compared to the linked third quarter, primarily due to the opening of two new Long Island offices and related computer and software equipment investments. Loan expense increased $434,000, largely due to expenses related to the workout of several equipment finance problem loans of $305,000 for the quarter ended December 31, 2025.

The addition of new members to our equipment financing team in the third quarter of 2025 also contributed to higher operating expenses.  FDIC assessment expense increased for the three months ended December 31, 2025 due primarily to higher assessment rates implemented by the FDIC and an increase in the Bank's average total assets subject to assessment.

Mr. Kennedy noted, “While we continue to make targeted investments to support our expansion in Metro New York and enhance the client experience, we are seeing the pace of operating expense growth moderate as these initiatives mature. We remain focused on maintaining strong expense discipline while investing in areas that support long-term growth and profitability."

Income Taxes 

The effective tax rate for the three months ended December 31, 2025 was 28.4%, as compared to 29.2% for the September 2025 quarter and 24.5% for the quarter ended December 31, 2024. The December 2024 quarter included the impact of discrete, favorable federal return to provision adjustments primarily related to the Company’s state tax apportionment rate. 

Asset Quality / Provision for Credit Losses

Nonperforming assets decreased to $68.2 million, or 0.91% of total assets, at December 31, 2025, compared to $84.1 million, or 1.13% of total assets, at September 30, 2025. The decrease in nonperforming assets during the fourth quarter was largely driven by the sale of two multifamily loans with balances totaling $12.5 million and one commercial loan with a balance of $2.7 million. Loans past due 30 to 89 days and still accruing decreased to $26.6 million, or 0.42% of total loans, at December 31, 2025 compared to $28.8 million, or 0.48% of total loans, at September 30, 2025. Criticized and classified loans decreased during the fourth quarter by $21.6 million to $169.9 million at December 31, 2025 compared to $191.5 million at September 30, 2025. The decline in criticized and classified loan balances was primarily driven by the reduction in nonperforming assets mentioned above. The Company currently has no loans or leases on deferral and still accruing.

For the quarter ended December 31, 2025, the provision for credit losses was $7.7 million compared to $4.8 million for the September 2025 quarter and $1.7 million for the December 2024 quarter. The increased provision for credit losses in the fourth quarter of 2025 was driven by an increase in specific reserves of approximately $5.8 million related to two multifamily loans and one C&I loan, as the Company continues to aggressively work to reduce nonperforming asset balances. Loan growth during the quarter drove the remaining balance of the provision.

At December 31, 2025, the allowance for credit losses ("ACL") was $71.0 million (1.14% of total loans), compared to $68.6 million (1.14% of total loans) at September 30, 2025, and $73.0 million (1.32% of total loans) at December 31, 2024.  Charge-offs of $6.3 million during the period were associated with two multifamily loans that were sold in the fourth quarter. Specific reserves of $5.7 million, related to these charge-offs, had been established in prior periods.

Mr. Kennedy noted, “During the fourth quarter, we continued to proactively address problem credits, resulting in a meaningful reduction in nonperforming assets. We have committed to work through asset quality issues in a deliberate manner with an ultimate goal of preserving capital and maintaining appropriate reserve coverage."

Capital

The Company’s capital position increased during the fourth quarter of 2025 due to net income of $12.2 million and positive movement in accumulated other comprehensive income of $2.9 million related to the fair value of the Company’s investment securities portfolio driven by the interest rate environment.  

Tangible book value per share increased 10% to $34.99 per share at December 31, 2025 from $31.89 at December 31, 2024. Book value per share increased 9% to $37.49 per share at December 31, 2025 compared to $34.45 at December 31, 2024. The Company’s and Bank’s regulatory capital ratios as of December 31, 2025 remain strong. Where applicable, such ratios remain well above regulatory well capitalized standards.

The Company employs quarterly capital stress testing modeling of an adverse case and severely adverse case. In the most recently completed stress test (as of September 30, 2025), the Bank remains well capitalized over a two-year stress period.

On December 18, 2025, the Company declared a cash dividend of $0.05 per share payable on February 26, 2026 to shareholders of record on February 12, 2026.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $7.5 billion and assets under management and/or administration of $13.1 billion as of December 31, 2025. Founded in 1921, Peapack Private Bank & Trust, a subsidiary of Peapack-Gladstone Financial Corporation, is a commercial bank that offers a client-centric approach to banking, providing high-quality products along with customized and innovative wealth management, investment banking, commercial and retail solutions. The Bank's wealth management division offers comprehensive financial, tax, fiduciary and investment advice and solutions to individuals, families, privately held businesses, family offices and not-for-profit organizations, which help them to establish, maintain and expand their legacy. Peapack Private Bank & Trust offers an unparalleled commitment to client service.  Visit www.peapackprivate.com for more information.

FORWARD-LOOKING STATEMENTS

The foregoing may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, investments, relationships, opportunities and market conditions.  These statements may be identified by such forward-looking terminology as “expect,” “look,” “believe,” “anticipate,” “may” or similar statements or variations of such terms.  Actual results may differ materially from such forward-looking statements.  Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to:

• our ability to successfully grow our business and implement our strategic plan, including our ability to generate revenues to offset the increased personnel and other costs related to the strategic plan;
• the impact of anticipated higher operating expenses in 2026 and beyond;
• our ability to successfully integrate wealth management firm and team acquisitions;
• our ability to successfully integrate our expanded employee base;
• an unexpected decline in the economy, in particular in our New Jersey and New York market areas, including potential recessionary conditions;
• declines in our net interest margin caused by the interest rate environment and/or our highly competitive market;
• declines in the value in our investment portfolio;
• impact from a pandemic event on our business, operations, customers, allowance for credit losses and capital levels;
• higher than expected increases in our allowance for credit losses;
• changes in the methodology and assumptions used to calculate the allowance for credit losses;
• higher than expected increases in credit losses or in the level of delinquent, nonperforming, classified and criticized loans or charge-offs;
• inflation and changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and lead to higher operating costs;
• decline in real estate values within our market areas;
• legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Basel III and related regulations) that may result in increased compliance costs;
• the imposition of tariffs or other domestic or international governmental policies and retaliatory responses;
• the impact of any federal government shutdown;
• the failure to maintain current technologies and/or to successfully implement future information technology enhancements;
• successful cyberattacks against our IT infrastructure and that of our IT and third-party providers;
• higher than expected FDIC insurance premiums;
• adverse weather conditions;
• the current or anticipated impact of military conflict, terrorism or other geopolitical events;
• our inability to successfully generate new business in new geographic markets, including our expansion into New York City and Long Island;
• a reduction in our lower-cost funding sources;
• changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio;
• our inability to adapt to technological changes;
• claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters;
• our inability to retain key employees;
• demands for loans and deposits in our market areas;
• adverse changes in securities markets;
• changes in New York City rent regulation law;
• changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary and fiscal policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
• changes in accounting policies and practices; and/or
• other unexpected material adverse changes in our financial condition, operations or earnings.

A discussion of these and other factors that could affect our results is included in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2025.  Except as may be required by the applicable law or regulation, we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Contact:

Frank A. Cavallaro, SEVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-306-8933

 (Tables to follow) 

(A) Return on average tangible equity is calculated by dividing tangible equity by annualized net income.  See non-GAAP financial measures reconciliation included in these tables.

(B) Calculated as total operating expenses as a percentage of total revenue.  For non-GAAP efficiency ratio, see the non-GAAP financial measures reconciliation included in these tables.

(A) Return on average tangible equity is calculated by dividing tangible equity by annualized net income.  See non-GAAP financial measures reconciliation included in these tables.

(B) Calculated as total operating expenses as a percentage of total revenue.  For non-GAAP efficiency ratio, see the non-GAAP financial measures reconciliation included in these tables.