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.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 $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.

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.

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)

(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.