Oct 22, 2025 (NewMediaWire via COMTEX) --
BEDMINSTER, NJ - October 22, 2025 (NEWMEDIAWIRE) - Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the "Company") announces its third quarter 2025 financial results.
This earnings release should be read in conjunction with the Company’s Q3 2025 Investor Update, a copy of which is available on our website at www.peapackprivate.comand 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 $9.6 million and diluted earnings per share (“EPS”) of $0.54 for the quarter ended September 30, 2025, which is an increase of 21%, compared to net income of $7.9 million and diluted EPS of $0.45 for the quarter ended June 30, 2025.
Through the first nine months of the year, deposits grew $433 million, or 7%, to $6.6 billion as of September 30, 2025. Core relationship deposits increased $708 million during the nine months ended September 30, 2025 with noninterest-bearing deposits increasing by $211 million, or 19%, during this period. The deposit growth funded $506 million of loan growth at a weighted average coupon of 6.75%, resulting in an incremental spread of more than 400 basis points through the first nine months of 2025.
Net interest income increased $2.3 million, or 5%, on a linked quarter basis to $50.6 million for the third quarter of 2025 compared to $48.3 million for the second quarter of 2025. The growth in net interest income was driven by improvement in the yield on average interest earning assets, as well as continued improvement in the net interest margin. The net interest margin ("NIM") increased to 2.81% for the quarter ended September 30, 2025 compared to 2.77% for the quarter ended June 30, 2025 and 2.34% for the quarter ended September 30, 2024.
“We continue to make significant progress with our Metro New York expansion,” said Douglas L. Kennedy, President and CEO. “Over the past two years, our newly hired teams have onboarded more than 850 new client relationships, adding over $1.75 billion in core relationship deposits and more than $900 million in new loans. This momentum has enabled us to deliver a fourth consecutive quarter of positive operating leverage, grow core earnings by 54% over the last twelve months, drive improvement in earnings per share and tangible book value per share, all while absorbing significant investments in our expansion efforts.”
“We continued to add talented professionals in the third quarter as we expanded our equipment finance group by adding an experienced team in Long Island. We also hired three New York-based wealth advisors to take advantage of our growing presence in that market. Our transformation into Peapack Private Bank & Trust reflects our evolution toward becoming the premier boutique private bank serving Metro New York," stated Mr. Kennedy.
Mr. Kennedy also noted, “With strong earnings momentum, we aggressively addressed problem credits as nonperforming assets declined by $31 million in the quarter. Going forward, we will continue to actively manage other problem assets with a focus on capital preservation.”
The following are select highlights for the period ended September 30, 2025:
Wealth Management:
- AUM/AUA in our Wealth Management Division grew by $1.0 billion to $12.9 billion at September 30, 2025 compared to $11.9 billion at December 31, 2024.
- New business inflows for Q3 2025 totaled $214 million.
- Wealth Management fee income was $15.8 million in Q3 2025, which amounted to 22% of total revenue for the quarter.
Commercial Banking and Balance Sheet Management:
- Total loans increased $506 million to $6.0 billion at September 30, 2025 from $5.5 billion at December 31, 2024.
- Commercial and industrial lending (“C&I”) accounted for 69% of the new business originations during the third quarter. C&I balances represented 44% of the total loan portfolio at September 30, 2025.
- Total deposits increased by $433 million, to $6.6 billion at September 30, 2025 compared to $6.1 billion at December 31, 2024. Noninterest-bearing demand deposits grew $86 million during the third quarter, and represented 20% of total deposits as of September 30, 2025.
- Fee income on unused commercial lines of credit totaled $825,000 for Q3 2025.
- The NIM expanded to 2.81% for Q3 2025, an increase of 4 basis points compared to 2.77% for Q2 2025.
Capital Management:
- Tangible book value per share increased 7% to $34.10 per share at September 30, 2025 compared to $31.89 at December 31, 2024. Book value per share increased 6% to $36.62 per share at September 30, 2025 compared to $34.45 at December 31, 2024. Tangible book value per share is a non-GAAP financial measure. See the reconciliation tables included in this release for further detail.
- At September 30, 2025, the Tier 1 Leverage Ratio was 9.89% for Peapack Private Bank & Trust (the "Bank") and 8.86% for the Company. The Common Equity Tier 1 Ratio was 11.70% for the Bank and 10.47% for the Company at September 30, 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.
September 2025 Quarter Compared to Prior Year (Dollars in millions, except per share data) (unaudited) Nine Months Ended September30, 2025 Nine Months Ended September30, 2024 Increase/ (Decrease) Net interest income $ 144.37 $ 107.10 $ 37.27 35% Wealth management fee income 47.18 45.98 1.20 3 Capital markets activity 2.16 2.30 (0.14) (6) Other income 11.09 10.91 0.18 2 Total other income 60.43 59.19 1.24 2 Total Revenue 204.80 166.29 38.51 23% Operating expenses 153.63 127.82 25.81 20 Pretax income before provision for credit losses 51.17 38.47 12.70 33 Provision for credit losses 15.85 5.76 10.09 175 Pretax income 35.32 32.71 2.61 8 Income tax expense 10.15 8.96 1.19 13 Net income $ 25.17 $ 23.75 $ 1.42 6% Diluted EPS $ 1.42 $ 1.34 $ 0.08 6% Return on average assets 0.47% 0.49% (0.02) Return on average equity 5.41% 5.42% (0.01)
September 2025 Quarter Compared to Prior Year Quarter (Dollars in millions, except per share data) (unaudited) Three Months Ended September30, 2025 Three Months Ended September30, 2024 Increase/ (Decrease) Net interest income $ 50.57 $ 37.68 $ 12.89 34% Wealth management fee income 15.80 15.15 0.65 4 Capital markets activity 0.90 0.44 0.46 105 Other income 3.42 3.35 0.07 2 Total other income 20.12 18.94 1.18 6 Total Revenue 70.69 56.62 14.07 25% Operating expenses 52.30 44.65 7.65 17 Pretax income before provision for credit losses 18.39 11.97 6.42 54 Provision for credit losses 4.79 1.22 3.57 293 Pretax income 13.60 10.75 2.85 27 Income tax expense 3.97 3.16 0.81 26 Net income $ 9.63 $ 7.59 $ 2.04 27% Diluted EPS $ 0.54 $ 0.43 $ 0.11 26% Return on average assets annualized 0.53% 0.46% 0.07 Return on average equity annualized 6.12% 5.12% 1.00
September 2025 Quarter Compared to Linked Quarter (Dollars in millions, except per share data) (unaudited) Three Months Ended September30, 2025 Three Months Ended June 30, 2025 Increase/ (Decrease) Net interest income $ 50.57 $ 48.29 $ 2.28 5% Wealth management fee income 15.80 15.94 (0.14) (1) Capital markets activity 0.90 0.80 0.10 13 Other income 3.42 4.71 (1.29) (27) Total other income 20.12 21.45 (1.33) (6) Total Revenue 70.69 69.74 0.95 1% Operating expenses 52.30 51.89 0.41 1 Pretax income before provision for credit losses 18.39 17.85 0.54 3 Provision for credit losses 4.79 6.59 (1.80) (27) Pretax income 13.60 11.26 2.34 21 Income tax expense 3.97 3.32 0.65 20 Net income $ 9.63 $ 7.94 $ 1.69 21% Diluted EPS $ 0.54 $ 0.45 $ 0.09 20% Return on average assets annualized 0.53% 0.45% 0.08 Return on average equity annualized 6.12% 5.11% 1.01
SUPPLEMENTAL QUARTERLY DETAILS:
Wealth Management
AUM/AUA in the Bank’s Wealth Management Division increased to $12.9 billion at September 30, 2025 compared to $11.9 billion at December 31, 2024. For the September 2025 quarter, the Wealth Management Team generated $15.8 million in fee income, compared to $15.9 million for the June 30, 2025 quarter and $15.2 million for the September 2024 quarter.
John Babcock, President of the Bank's Wealth Management Division, noted, “Q3 2025 saw continued strong client inflows driven by new accounts and client additions of $214 million. Our new business pipeline is healthy, and we continue to remain focused on delivering excellent service and advice to our clients. Our highly skilled wealth management professionals, our fiduciary powers and expertise, and our financial planning capabilities combined with our high-touch client service model distinguishes us in our market and continues to drive our growth and success.”
Loans / Commercial Banking
Total loans increased $506 million, or 9%, to $6.0 billion at September 30, 2025, compared to $5.5 billion at December 31, 2024, primarily driven by commercial and industrial loan originations during the quarter. C&I growth was driven by business expansion and capital investment. Total C&I loans and leases at September 30, 2025 were $2.7 billion or 44% of the total loan portfolio.
Mr. Kennedy noted, “We are proud to have built a leading middle-market commercial banking franchise, as evidenced by our C&I loan portfolio and complimented by Treasury Management services, Corporate Advisory and SBA businesses. These business lines fit perfectly with our private banking business model and will continue to generate solid production going forward. During the current year, we have originated loans that carried an average spread of more than 425 basis points above our current cost of funds.”
Net Interest Income (NII)/Net Interest Margin (NIM)
The Company’s NII of $50.6 million and NIM of 2.81% for Q3 2025 increased $2.3 million and four basis points from NII of $48.3 million and NIM of 2.77% for the linked quarter (Q2 2025) and increased $12.9 million and 47 basis points from NII of $37.7 million and NIM of 2.34% compared to the prior year period (Q3 2024). Our single point of contact private banking strategy and New York City expansion continues to deliver lower-cost core deposit relationships resulting in consistent improvement in our net interest margin.
Funding / Liquidity / Interest Rate Risk Management
Total deposits increased $433 million to $6.6 billion at September 30, 2025 from $6.1 billion at December 31, 2024. The growth in deposits strengthened balance sheet liquidity and reduced reliance on outside borrowings and other non-core funding sources. There were no outstanding overnight borrowings at September 30, 2025.
At September 30, 2025, the Company’s balance sheet liquidity (investments available for sale, interest-earning deposits and cash) totaled $1.1 billion, or 15% of total assets. The Company maintains additional liquidity resources of approximately $3.8 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 $4.9 billion at September 30, 2025, which amounts to 267% 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 $901,000 for the September 2025 quarter compared to $799,000 for the June 2025 quarter and $435,000 for the September 2024 quarter. The third quarter of 2025 benefitted from one corporate advisory transaction for $639,000.
(Dollars in thousands, except per share data) (unaudited) Three Months Ended September30, 2025 Three Months Ended June 30, 2025 Three Months Ended September30, 2024 Gain on loans held for sale at fair value (Mortgage banking) $ 6 $ 27 $ 15 Fee income related to loan level, back-to-back swaps -- 221 -- Gain on sale of SBA loans 203 521 365 Corporate advisory fee income 692 30 55 Total capital markets activity $ 901 $ 799 $ 435
Other Noninterest Income (other than Wealth Management Fee Income and Income from Capital Markets Activities)
Other noninterest income was $3.4 million for Q3 2025 compared to $4.7 million for Q2 2025 and $3.4 million for Q3 2024. Q3 2025 included income of $398,000 recorded by the Equipment Finance Division related to equipment transfers to lessees upon the termination of leases compared to income of $482,000 for Q2 2025 and $225,000 for Q3 2024. Additionally, Q3 2025 included $825,000 of unused line fees compared to $869,000 for Q2 2025 and $845,000 for Q3 2024. Other income also included a gain of $875,000 in the second quarter of 2025 for the termination of a lease agreement for a branch location that was no longer in use.
Operating Expenses
Total operating expenses were $52.3 million for the third quarter of 2025, compared to $51.9 million for the second quarter of 2025 and $44.6 million for the quarter ended September 30, 2024. The increase during the third quarter was primarily driven by expenses associated with the Company’s ongoing expansion into New York City and Long Island, increased health insurance costs, and annual merit increases. The addition of production teams in Long Island and the new equipment financing team also contributed to the growth in operating expenses.
Mr. Kennedy noted, “We continue to make investments related to our strategic decision to expand into Metro New York City and are confident that these investments will position us for future growth and profitability, which will ultimately translate to increased shareholder value. We continue to look for opportunities to create efficiencies and manage expenses throughout the Company while investing in enhancements to the client experience."
Income Taxes
The effective tax rate for the three months ended September 30, 2025 was 29.2%, as compared to 29.5% for the June 2025 quarter and 29.4% for the quarter ended September 30, 2024.
Asset Quality / Provision for Credit Losses
Nonperforming assets decreased to $84.1 million, or 1.13% of total assets, at September 30, 2025, as compared to $115.0 million, or 1.60% of total assets, at June 30, 2025. The decrease in nonperforming assets during the third quarter was driven by the resolution of an equipment financing relationship with a loan balance of $20.1 million and three multifamily loans with balances totaling $11.8 million. Loans past due 30 to 89 days and still accruing increased to $28.8 million, or 0.48% of total loans, at September 30, 2025 compared to $15.5 million, or 0.27% of total loans, at June 30, 2025. The increase in loans past due is principally due to $4.2 million of multifamily loans and $8.8 million of C&I loans . Criticized and classified loans decreased during the third quarter by $41.2 million to $191.5 million at September 30, 2025 compared to $232.7 million at June 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 September 30, 2025, the provision for credit losses was $4.8 million compared to $6.6 million for the June 2025 quarter and $1.2 million for the September 2024 quarter. The provision for credit losses in the third quarter of 2025 was driven by an increase in specific reserves totaling $4.3 million related to two multifamily loans, in addition to an increase driven by loan growth of $203 million.
At September 30, 2025, the allowance for credit losses ("ACL") was $68.6 million (1.14% of total loans), compared to $81.8 million (1.40% of total loans) at June 30, 2025, and $71.3 million (1.34% of total loans) at September 30, 2024. The decrease in the ACL during the third quarter was mainly driven by charge-offs of $18.0 million during the period. A charge-off of $11.3 million was related to one equipment financing relationship and charge-offs of $6.7 million were associated with three multifamily loans that were liquidated in the third quarter. Each of the charge-offs in the current period were tied to specific provisions that were recorded in previous periods.
Mr. Kennedy noted, “We continue to closely monitor asset quality metrics and work through each problem credit individually, while carrying appropriate reserve coverage."
Capital
The Company’s capital position increased during the third quarter of 2025 due to net income of $9.6 million and positive movement in accumulated other comprehensive income of $5.1 million related to the fair value of the Company’s investment securities portfolio driven by the interest rate environment. Those increases were partially offset by the repurchase of 100,000 shares through the Company's repurchase program at a total cost of $2.7 million.
Tangible book value per share increased 7% to $34.10 per share at September 30, 2025 from $31.89 at December 31, 2024. (Tangible book value per share is a non-GAAP financial measure. See the reconciliation tables included in this release for further detail.) Book value per share increased 6% to $36.62 per share at September 30, 2025 compared to $34.45 at December 31, 2024. The Company’s and Bank’s regulatory capital ratios as of September 30, 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 June 30, 2025), the Bank remains well capitalized over a two-year stress period.
On September 29, 2025, the Company declared a cash dividend of $0.05 per share payable on November 28, 2025 to shareholders of record on November 6, 2025.
ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $7.4 billion and assets under management and/or administration of $12.9 billion as of September 30, 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 2025 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;
- 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 the current 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 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, 2024. 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)
PEAPACK-GLADSTONE FINANCIAL CORPORATION SELECTED CONSOLIDATED FINANCIAL DATA (Dollars in Thousands, except per share data) (Unaudited) For the Three Months Ended Sept 30, 2025 June 30, 2025 March 31, 2025 Dec 31 2024 Sept 30, 2024 Income Statement Data: Interest income $ 92,545 $ 89,651 $ 86,345 $ 86,166 $ 83,203 Interest expense 41,972 41,361 40,840 44,258 45,522 Net interest income 50,573 48,290 45,505 41,908 37,681 Wealth management fee income 15,798 15,943 15,435 15,482 15,150 Service charges and fees 1,184 1,194 1,112 1,323 1,327 Bank owned life insurance 383 370 371 335 390 Gain on loans held for sale at fair value (Mortgage banking) 6 27 63 58 15 Loss on loans held for sale at lower of cost or fair value (364 ) -- -- -- -- Fee income related to loan level, back-to-back swaps -- 221 -- -- -- Gain on sale of SBA loans 203 521 302 -- 365 Corporate advisory fee income 692 30 90 56 55 Other income 2,094 3,096 1,286 2,125 1,162 Securities gains, net -- 7 -- -- -- Fair value adjustment for CRA equity security 125 42 195 549 474 Total other income 20,121 21,451 18,854 19,928 18,938 Total revenue 70,694 69,741 64,359 61,836 56,619 Compensation and employee benefits 36,756 36,061 35,879 32,915 31,050 Premises and equipment 6,676 6,641 6,154 5,995 5,633 FDIC insurance expense 1,345 1,045 855 825 870 Other expenses 7,520 8,146 6,552 8,125 7,096 Total operating expenses 52,297 51,893 49,440 47,860 44,649 Pretax income before provision for credit losses 18,397 17,848 14,919 13,976 11,970 Provision for credit losses 4,790 6,586 4,471 1,738 1,224 Income before income taxes 13,607 11,262 10,448 12,238 10,746 Income tax expense 3,976 3,321 2,853 2,998 3,159 Net income $ 9,631 $ 7,941 $ 7,595 $ 9,240 $ 7,587 Per Common Share Data: Earnings per share (basic) $ 0.55 $ 0.45 $ 0.43 $ 0.53 $ 0.43 Earnings per share (diluted) 0.54 0.45 0.43 0.52 0.43 Weighted average number of common shares outstanding: Basic 17,576,899 17,704,110 17,610,917 17,585,213 17,616,046 Diluted 17,686,979 17,773,237 17,812,222 17,770,717 17,700,042 Performance Ratios: Return on average assets annualized (ROAA) 0.53% 0.45% 0.43% 0.54% 0.46% Return on average equity annualized (ROAE) 6.12% 5.11% 4.98% 6.15% 5.12% Return on average tangible equity annualized (ROATCE) (A) 6.59% 5.50% 5.37% 6.65% 5.54% Net interest margin (tax-equivalent basis) 2.81% 2.77% 2.68% 2.46% 2.34% GAAP efficiency ratio (B) 73.98% 74.41% 76.82% 77.40% 78.86% Operating expenses / average assets annualized 2.87% 2.92% 2.82% 2.77% 2.73%
(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.
PEAPACK-GLADSTONE FINANCIAL CORPORATION SELECTED CONSOLIDATED FINANCIAL DATA (Dollars in Thousands, except per share data) (Unaudited) For the Nine Months Ended September 30, Change 2025 2024 $ % Income Statement Data: Interest income $ 268,541 $ 241,635 $ 26,906 11% Interest expense 124,173 134,537 (10,364) -8% Net interest income 144,368 107,098 37,270 35% Wealth management fee income 47,176 45,976 1,200 3% Service charges and fees 3,490 3,994 (504) -13% Bank owned life insurance 1,124 1,221 (97) -8% Gain on loans held for sale at fair value (Mortgage banking) 96 105 (9) -9% Loss/(gain) on loans held for sale at lower of cost or fair value (364) 23 (387) -1683% Fee income related to loan level, back-to-back swaps 221 -- 221 N/A Gain on sale of SBA loans 1,026 1,214 (188) -15% Corporate advisory fee income 812 976 (164) -17% Other income 6,476 5,406 1,070 20% Securities gains, net 7 -- 7 N/A Fair value adjustment for CRA equity security 362 279 83 30% Total other income 60,426 59,194 1,232 2% Total revenue 204,794 166,292 38,502 23% Compensation and employee benefits 108,696 89,410 19,286 22% Premises and equipment 19,471 16,490 2,981 18% FDIC insurance expense 3,245 2,685 560 21% Other expenses 22,218 19,231 2,987 16% Total operating expenses 153,630 127,816 25,814 20% Pretax income before provision for credit losses 51,164 38,476 12,688 33% Provision for credit losses 15,847 5,762 10,085 175% Income before income taxes 35,317 32,714 2,603 8% Income tax expense 10,150 8,966 1,184 13% Net income $ 25,167 $ 23,748 $ 1,419 6% Per Common Share Data: Earnings per share (basic) $ 1.43 $ 1.34 $ 0.09 7% Earnings per share (diluted) 1.42 1.34 0.08 6% Weighted average number of common shares outstanding: Basic 17,630,517 17,691,309 (60,792) 0% Diluted 17,763,871 17,746,560 17,311 0% Performance Ratios: Return on average assets (ROAA) 0.47% 0.49% (0.02)% -4% Return on average equity (ROAE) 5.41% 5.42% (0.01)% 0% Return on average tangible equity (ROATCE) (A) 5.83% 5.88% (0.05)% -1% Net interest margin (tax-equivalent basis) 2.76% 2.26% 0.50% 22% GAAP efficiency ratio (B) 75.02% 76.86% (1.84)% -2% Operating expenses / average assets 2.87% 2.65% 0.22% 8%
(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.
PEAPACK-GLADSTONE FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF CONDITION (Dollars in Thousands) (Unaudited) As of Sept 30, 2025 June 30, 2025 March 31, 2025 Dec 31, 2024 Sept 30, 2024 ASSETS Cash and due from banks $ 8,514 $ 7,524 $ 7,885 $ 8,492 $ 8,129 Federal funds sold -- -- -- -- -- Interest-earning deposits 338,672 308,078 224,032 382,875 484,529 Total cash and cash equivalents 347,186 315,602 231,917 391,367 492,658 Securities available for sale 756,578 767,533 832,030 784,544 682,713 Securities held to maturity 97,414 98,623 100,285 101,635 103,158 CRA equity security, at fair value 13,403 13,278 13,236 13,041 13,445 FHLB and FRB stock, at cost (A) 11,387 11,467 12,311 12,373 12,459 Residential mortgage 649,523 649,703 630,245 614,840 591,374 Multifamily mortgage 1,796,533 1,794,854 1,775,132 1,799,754 1,784,861 Commercial mortgage 689,166 643,520 633,957 588,104 578,559 Commercial and industrial loans 2,662,661 2,543,092 2,528,235 2,397,699 2,247,853 Consumer loans 171,811 140,668 140,443 77,785 78,160 Home equity lines of credit 57,166 52,434 48,301 42,327 38,971 Other loans 405 261 359 411 389 Total loans 6,027,265 5,824,532 5,756,672 5,520,920 5,320,167 Less: Allowance for credit losses 68,642 81,770 75,150 72,992 71,283 Net loans 5,958,623 5,742,762 5,681,522 5,447,928 5,248,884 Premises and equipment 37,756 36,626 31,639 28,888 25,716 Accrued interest receivable 34,120 33,209 31,968 29,898 31,973 Bank owned life insurance 48,381 48,239 48,110 47,981 47,837 Goodwill and other intangible assets 44,111 44,383 44,655 44,926 45,198 Finance lease right-of-use assets 879 914 950 985 1,020 Operating lease right-of-use assets 37,692 38,291 39,456 40,289 41,650 Due from brokers -- -- -- -- -- Other assets 52,112 49,746 52,573 67,383 47,081 TOTAL ASSETS $ 7,439,642 $ 7,200,673 $ 7,120,652 $ 7,011,238 $ 6,793,792 LIABILITIES Deposits: Noninterest-bearing demand deposits $ 1,323,492 $ 1,237,864 $ 1,184,860 $ 1,112,734 $ 1,079,877 Interest-bearing demand deposits 3,509,403 3,483,295 3,450,014 3,334,269 3,316,217 Savings 104,524 103,846 107,581 103,136 103,979 Money market accounts 1,226,506 1,095,665 1,087,959 1,078,024 902,562 Certificates of deposit - Retail 397,338 440,612 442,369 483,998 515,297 Certificates of deposit - Listing Service 899 1,841 3,773 6,861 7,454 Subtotal “customer” deposits 6,562,162 6,363,123 6,276,556 6,119,022 5,925,386 IB Demand - Brokered -- -- 10,000 10,000 10,000 Certificates of deposit - Brokered -- -- -- -- -- Total deposits 6,562,162 6,363,123 6,286,556 6,129,022 5,935,386 Short-term borrowings -- -- -- -- -- Finance lease liability 1,227 1,268 1,308 1,348 1,388 Operating lease liability 41,139 41,806 42,948 43,569 44,775 Subordinated debt, net 98,981 98,933 98,884 133,561 133,489 Due to brokers 25,125 -- -- 18,514 -- Other liabilities 68,458 65,766 69,083 79,375 71,140 TOTAL LIABILITIES 6,797,092 6,570,896 6,498,779 6,405,389 6,186,178 Shareholders’ equity 642,550 629,777 621,873 605,849 607,614 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 7,439,642 $ 7,200,673 $ 7,120,652 $ 7,011,238 $ 6,793,792 Assets under management and / or administration at Peapack Private Bank & Trust's Wealth Management Division (market value, not included above-dollars in billions) $ 12.9 $ 12.3 $ 11.8 $ 11.9 $ 12.1
(A) FHLB means "Federal Home Loan Bank" and FRB means "Federal Reserve Bank."
PEAPACK-GLADSTONE FINANCIAL CORPORATION SELECTED BALANCE SHEET DATA (Dollars in Thousands) (Unaudited) As of Sept 30, 2025 June 30, 2025 March 31, 2025 Dec 31, 2024 Sept 30, 2024 Asset Quality: Loans past due over 90 days and still accruing $ -- $ -- $ -- $ -- $ -- Nonaccrual loans 84,142 114,958 97,170 100,168 80,453 Other real estate owned -- -- -- -- -- Total nonperforming assets $ 84,142 $ 114,958 $ 97,170 $ 100,168 $ 80,453 Nonperforming loans to total loans 1.40% 1.97% 1.69% 1.81% 1.51% Nonperforming assets to total assets 1.13% 1.60% 1.36% 1.43% 1.18% Performing modifications (A)(B) $ 101,501 $ 111,962 $ 63,259 $ 45,846 $ 51,796 Loans past due 30 through 89 days and still accruing $ 28,817 $ 15,522 $ 28,323 $ 4,870 $ 31,446 Loans subject to special mention $ 56,534 $ 86,907 $ 75,248 $ 46,518 $ 113,655 Classified loans $ 134,982 $ 145,783 $ 142,273 $ 145,394 $ 147,422 Individually evaluated loans $ 84,142 $ 114,958 $ 97,170 $ 99,775 $ 79,972 Allowance for credit losses ("ACL"): Beginning of quarter $ 81,770 $ 75,150 $ 72,992 $ 71,283 $ 67,984 Provision for credit losses (C) 4,871 6,577 4,494 1,753 1,227 (Charge-offs)/recoveries, net (D) (17,999) 43 (2,336) (44) 2,072 End of quarter $ 68,642 $ 81,770 $ 75,150 $ 72,992 $ 71,283 ACL to nonperforming loans 81.58% 71.13% 77.34% 72.87% 88.60% ACL to total loans 1.14% 1.40% 1.31% 1.32% 1.34% Collectively evaluated ACL to total loans (E) 0.95% 1.06% 1.09% 1.09% 1.16% (A) Amounts reflect modifications that are paying according to modified terms.
(B) Excludes modifications included in nonaccrual loans of $37.6 million at September 30, 2025, $38.1 million at June 30, 2025, $3.9 million at March 31, 2025, $3.6 million at December 31, 2024 and $3.7 million at September 30, 2024.
(C) Excludes a credit of $81,000 at September 30, 2025, provision of $9,000 at June 30, 2025, a credit of $23,000 at March 31, 2025, a credit of $15,000 at December 31, 2024 and a credit of $3,000 at September 30, 2024 related to off-balance sheet commitments.
(D) Includes charge-offs of $6.7 million related to three commercial mortgage loans and $11.3 million related to one equipment financing relationship for the quarter ended September 30, 2025.
(E) Total ACL less reserves to loans individually evaluated equals collectively evaluated ACL.
PEAPACK-GLADSTONE FINANCIAL CORPORATION SELECTED BALANCE SHEET DATA (Dollars in Thousands) (Unaudited) As of September30, 2025 December 31, 2024 September30, 2024 Capital Adequacy Equity to total assets (A) 8.64% 8.64 8.94% Tangible equity to tangible assets (B) 8.09% 8.05% 8.33% Book value per share (C) $ 36.62 $ 34.45 $ 34.57 Tangible book value per share (D) $ 34.10 $ 31.89 $ 32.00
(A) Equity to total assets is calculated as total shareholders’ equity as a percentage of total assets at quarter end.
(B) Tangible equity and tangible assets are calculated by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. Tangible equity as a percentage of tangible assets at quarter end is calculated by dividing tangible equity by tangible assets at quarter end. See Non-GAAP financial measures reconciliation included in these tables.
(C) Book value per common share is calculated by dividing shareholders’ equity by quarter end common shares outstanding.
(D) Tangible book value per share excludes intangible assets. Tangible book value per share is calculated by dividing tangible equity by quarter end common shares outstanding. See Non-GAAP financial measures reconciliation tables.
As of September30, 2025 December 31, 2024 September30, 2024 Regulatory Capital – Holding Company Tier I leverage $ 647,549 8.86% $ 625,830 9.01% $ 615,486 9.33% Tier I capital to risk-weighted assets 647,549 10.47 625,830 11.51 615,486 11.67 Common equity tier I capital ratio to risk-weighted assets 647,543 10.47 625,824 11.51 615,474 11.67 Tier I & II capital to risk-weighted assets 815,770 13.20 806,404 14.84 800,961 15.19 Regulatory Capital - Bank Tier I leverage (E) $ 722,684 9.89% $ 733,389 10.57% $ 724,038 10.99% Tier I capital to risk-weighted assets (F) 722,684 11.70 733,389 13.50 724,038 13.75 Common equity tier I capital ratio to risk-weighted assets (G) 722,678 11.70 733,383 13.50 724,026 13.75 Tier I & II capital to risk-weighted assets (H) 791,924 12.82 801,365 14.75 789,954 15.00
(E) Regulatory well capitalized standard (including capital conservation buffer) = 4.00% ($292 million)
(F) Regulatory well capitalized standard (including capital conservation buffer) = 8.50% ($525 million)
(G) Regulatory well capitalized standard (including capital conservation buffer) = 7.00% ($433 million)
(H) Regulatory well capitalized standard (including capital conservation buffer) = 10.50% ($649 million)
PEAPACK-GLADSTONE FINANCIAL CORPORATION LOANS CLOSED (Dollars in Thousands) (Unaudited) For the Quarters Ended Sept 30, 2025 June 30, 2025 March 31, 2025 Dec 31, 2024 Sept 30, 2024 Residential loans retained $ 18,323 $ 34,990 $ 25,157 $ 39,279 $ 26,955 Residential loans sold 445 1,712 4,074 4,220 1,853 Total residential loans 18,768 36,702 29,231 43,499 28,808 Commercial real estate 78,825 24,086 47,280 15,800 4,300 Multifamily 47,991 73,350 6,800 12,550 11,295 Commercial (C&I) loans (A) (B) 453,554 200,671 257,282 432,115 242,829 SBA 6,821 7,090 5,928 5,964 9,106 Wealth lines of credit (A) 2,700 2,400 9,900 550 11,675 Total commercial loans 589,891 307,597 327,190 466,979 279,205 Installment loans 47,115 8,164 76,941 7,182 8,137 Home equity lines of credit (A) 11,755 5,154 4,805 10,236 10,421 Total loans closed $ 667,529 $ 357,617 $ 438,167 $ 527,896 $ 326,571
For the Nine Months Ended Sept 30, 2025 Sept 30, 2024 Residential loans retained $ 78,470 $ 54,703 Residential loans sold 6,231 8,239 Total residential loans 84,701 62,942 Commercial real estate 150,191 18,400 Multifamily 128,141 17,525 Commercial (C&I) loans (A) (B) 911,507 491,697 SBA 19,839 20,096 Wealth lines of credit (A) 15,000 26,475 Total commercial loans 1,224,678 574,193 Installment loans 132,220 16,669 Home equity lines of credit (A) 21,714 17,311 Total loans closed $ 1,463,313 $ 671,115
(A) Includes loans and lines of credit that closed in the period but not necessarily funded.
(B) Includes equipment finance.
PEAPACK-GLADSTONE FINANCIAL CORPORATION AVERAGE BALANCE SHEET (Tax-Equivalent Basis, Dollars in Thousands) (Unaudited) For the Three Months Ended September30, 2025 September30, 2024 Average Balance Income/ Expense Annualized Yield Average Balance Income/ Expense Annualized Yield ASSETS: Interest-earning assets: Investments: Taxable (A) $ 963,706 $ 7,504 3.11% $ 865,892 $ 6,107 2.82% Tax-exempt (A) (B) -- -- -- -- -- -- Loans (B) (C): Mortgages 650,299 7,337 4.51 579,949 5,834 4.02 Commercial mortgages 2,458,008 28,447 4.63 2,381,771 27,362 4.60 Commercial 2,586,780 42,790 6.62 2,159,648 37,588 6.96 Commercial construction -- -- -- 22,371 507 9.07 Installment 156,471 2,718 6.95 73,440 1,267 6.90 Home equity 53,781 1,020 7.59 38,768 814 8.40 Other 363 5 5.43 239 6 10.04 Total loans 5,905,702 82,317 5.58 5,256,186 73,378 5.58 Federal funds sold -- -- -- -- -- -- Interest-earning deposits 304,681 2,960 3.89 326,707 3,982 4.88 Total interest-earning assets 7,174,089 92,781 5.17% 6,448,785 83,467 5.18% Noninterest-earning assets: Cash and due from banks 12,279 7,521 Allowance for credit losses (82,803) (70,317) Premises and equipment 37,608 25,530 Other assets 136,238 139,042 Total noninterest-earning assets 103,322 101,776 Total assets $ 7,277,411 $ 6,550,561 LIABILITIES: Interest-bearing deposits: Checking $ 3,640,088 $ 29,975 3.29% $ 3,214,186 $ 31,506 3.92% Money markets 1,005,633 7,225 2.87 833,325 6,419 3.08 Savings 104,777 178 0.68 104,293 117 0.45 Certificates of deposit – retail 429,389 3,657 3.41 512,794 5,540 4.32 Subtotal interest-bearing deposits 5,179,887 41,035 3.17 4,664,598 43,582 3.74 Interest-bearing demand – brokered -- -- -- 10,000 134 5.36 Certificates of deposit – brokered -- -- -- 7,913 106 5.36 Total interest-bearing deposits 5,179,887 41,035 3.17 4,682,511 43,822 3.74 Borrowings -- -- -- -- -- -- Capital lease obligation 1,242 13 4.19 1,401 15 4.28 Subordinated debt 98,954 924 3.74 133,449 1,685 5.05 Total interest-bearing liabilities 5,280,083 41,972 3.18% 4,817,361 45,522 3.78% Noninterest-bearing liabilities: Demand deposits 1,261,607 1,016,014 Accrued expenses and other liabilities 106,630 124,399 Total noninterest-bearing liabilities 1,368,237 1,140,413 Shareholders’ equity 629,091 592,787 Total liabilities and shareholders’ equity $ 7,277,411 $ 6,550,561 Net interest income $ 50,809 $ 37,945 Net interest spread 1.99% 1.40% Net interest margin (D) 2.81% 2.34%
(A) Average balances for available for sale securities are based on amortized cost.
(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual loans.
(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
PEAPACK-GLADSTONE FINANCIAL CORPORATION AVERAGE BALANCE SHEET (Tax-Equivalent Basis, Dollars in Thousands) (Unaudited) For the Three Months Ended September30, 2025 June 30, 2025 Average Balance Income/ Expense Annualized Yield Average Balance Income/ Expense Annualized Yield ASSETS: Interest-earning assets: Investments: Taxable (A) $ 963,706 $ 7,504 3.11 % $ 1,037,598 $ 8,370 3.23% Tax-exempt (A) (B) -- -- -- -- -- -- Loans (B) (C): Mortgages 650,299 7,337 4.51 640,955 7,138 4.45 Commercial mortgages 2,458,008 28,447 4.63 2,426,318 27,392 4.52 Commercial 2,586,780 42,790 6.62 2,539,929 42,015 6.62 Commercial construction -- -- -- -- -- -- Installment 156,471 2,718 6.95 140,133 2,403 6.86 Home equity 53,781 1,020 7.59 50,613 946 7.48 Other 363 5 5.43 348 5 5.75 Total loans 5,905,702 82,317 5.58 5,798,296 79,899 5.51 Federal funds sold -- -- -- -- -- -- Interest-earning deposits 304,681 2,960 3.89 183,584 1,618 3.53 Total interest-earning assets 7,174,089 92,781 5.17% 7,019,478 89,887 5.12% Noninterest-earning assets: Cash and due from banks 12,279 8,237 Allowance for credit losses (82,803) (76,811) Premises and equipment 37,608 35,501 Other assets 136,238 130,550 Total noninterest-earning assets 103,322 97,477 Total assets $ 7,277,411 $ 7,116,955 LIABILITIES: Interest-bearing deposits: Checking $ 3,640,088 $ 29,975 3.29% $ 3,558,108 $ 29,116 3.27% Money markets 1,005,633 7,225 2.87 950,891 6,544 2.75 Savings 104,777 178 0.68 104,114 147 0.56 Certificates of deposit – retail 429,389 3,657 3.41 447,422 4,002 3.58 Subtotal interest-bearing deposits 5,179,887 41,035 3.17 5,060,535 39,809 3.15 Interest-bearing demand – brokered -- -- -- 9,121 110 4.82 Certificates of deposit – brokered -- -- -- -- -- -- Total interest-bearing deposits 5,179,887 41,035 3.17 5,069,656 39,919 3.15 Borrowings -- -- -- 44,656 505 4.52 Capital lease obligation 1,242 13 4.19 1,283 13 4.05 Subordinated debt 98,954 924 3.74 98,905 924 3.74 Total interest-bearing liabilities 5,280,083 41,972 3.18% 5,214,500 41,361 3.17% Noninterest-bearing liabilities: Demand deposits 1,261,607 1,172,535 Accrued expenses and other liabilities 106,630 108,020 Total noninterest-bearing liabilities 1,368,237 1,280,555 Shareholders’ equity 629,091 621,900 Total liabilities and shareholders’ equity $ 7,277,411 $ 7,116,955 Net interest income $ 50,809 $ 48,526 Net interest spread 1.99% 1.95% Net interest margin (D) 2.81% 2.77%
(A) Average balances for available for sale securities are based on amortized cost.
(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual loans.
(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
PEAPACK-GLADSTONE FINANCIAL CORPORATION AVERAGE BALANCE SHEET (Tax-Equivalent Basis, Dollars in Thousands) (Unaudited) For the Nine Months Ended September30, 2025 September 30, 2024 Average Balance Income/ Expense Yield Average Balance Income/ Expense Yield ASSETS: Interest-earning assets: Investments: Taxable (A) $ 1,010,936 $ 24,087 3.18% $ 820,594 $ 16,411 2.67% Tax-exempt (A) (B) -- -- -- -- -- -- Loans (B) (C): Mortgages 636,268 21,146 4.43 578,187 16,836 3.88 Commercial mortgages 2,423,225 82,017 4.51 2,420,772 81,783 4.50 Commercial 2,520,420 124,909 6.61 2,196,921 112,214 6.81 Commercial construction -- -- -- 20,981 1,
