Peapack-Gladstone Financial Corporation and Peapack-Gladstone Bank’s Investment Grade Ratings Confirmed by Moody’s Investors Service

Rhea-AI Summary

Peapack-Gladstone Financial (NASDAQ: PGC) announced that Moody's Investors Service has confirmed investment grade ratings for both the Company and its banking subsidiary, Peapack-Gladstone Bank. Moody's confirmed the Baa3 long-term local currency issuer rating for the Company and the baa2 baseline credit assessment for the Bank. The outlook on long-term ratings has been changed to 'stable' from 'under review'.

Moody's cited the Company's solid capital position and recent improvements in funding and liquidity profile as mitigants against the Bank's risk profile. The deposit base demonstrated resilience during the 2023 regional banking crisis. Peapack-Gladstone Financial also holds an investment grade credit rating from Kroll Bond Rating Agency, affirmed in May 2024.

Positive

• Moody's confirmed investment grade ratings for both the Company and its banking subsidiary
• Outlook changed to 'stable' from 'under review'
• Company maintains a solid capital position
• Improvements in funding and liquidity profile noted
• Deposit base demonstrated resilience during the 2023 regional banking crisis
• Investment grade credit rating also held from Kroll Bond Rating Agency

Negative

• None.

Insights

Financial Analyst

The confirmation of investment grade ratings for Peapack-Gladstone Financial and its banking subsidiary by Moody's is a positive development for the company. This affirmation, following a review initiated in June, underscores the company's financial stability and resilience.

Key points from Moody's assessment:

• Sustained solid capital position
• Improved funding and liquidity profile
• Resilient deposit base during the 2023 regional banking crisis

The change in outlook to "stable" from "under review" suggests reduced uncertainty about the company's financial health. With $6.51 billion in total assets and $11.5 billion in assets under management/administration, PGC demonstrates a strong market position.

For investors, this rating confirmation provides reassurance about the company's creditworthiness and financial stability, potentially positively impacting investor confidence and the company's ability to access capital markets on favorable terms.

BEDMINSTER, NJ, Sept. 30, 2024 (GLOBE NEWSWIRE) -- Peapack-Gladstone Financial Corporation (“the Company”) (NASDAQ Global Select Market:  PGC) reports today that Moody’s Investors Service (“Moody’s”) has confirmed investor grade ratings for both the Company and its banking subsidiary, Peapack-Gladstone Bank (“the Bank”). Moody’s has confirmed the Baa3 long term local currency issuer rating for the Company, and the baa2 baseline credit assessment (BCA) for the Bank.

The outlooks on the long-term issuer rating of the Company and on the long-term deposits and issuer ratings of Peapack-Gladstone Bank have been changed to “stable” from ratings under review. These actions conclude the review for possible downgrade that was initiated back in June of this year.

To establish the rating, Moody’s extensively reviewed the business fundamentals and financial conditions of the Company and the Bank, as well as the terms and conditions surrounding issuer and deposit ratings.

In confirming these ratings, Moody’s indicated that the Company’s sustained solid capital position and recent improvements in its funding and liquidity profile are adequate mitigants against the Bank’s risk profile. Moody’s also indicated that the Company has successfully strengthened its funding and liquidity profile over the last year. The overall funding structure remains a credit strength with the deposit base demonstrating resilience during the 2023 regional banking crisis.

President and CEO Douglas L. Kennedy commented, “It is gratifying to receive this confirmation as it is a true indicator of the strength of our current strategy and business model.”

View the full Moody’s report at moodys.com.

Peapack-Gladstone Financial Corporation also holds an investment grade credit rating from Kroll Bond Rating Agency (KBRA). Kroll affirmed the investment grade ratings for both the Company and the Bank in May 2024.

About the Company

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $6.51 billion and assets under management and/or administration of $11.5 billion as of June 30, 2024. Founded in 1921, Peapack-Gladstone Bank 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. Peapack Private, a division of Peapack-Gladstone Bank, 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. Together, Peapack-Gladstone Bank and Peapack Private offer an unparalleled commitment to client service. Visit www.pgbank.com and www.peapackprivate.com for more information.

Contact:  Denise M. Pace-Sanders, SVP-Managing Principal, Brand and Marketing Director, dpace@pgbank.com, 908.470.3322, Peapack-Gladstone Bank, 500 Hills Drive, Suite 300, Bedminster, NJ 07921.

FAQ

What ratings did Moody's confirm for Peapack-Gladstone Financial (PGC)?

Moody's confirmed a Baa3 long-term local currency issuer rating for Peapack-Gladstone Financial and a baa2 baseline credit assessment for Peapack-Gladstone Bank.

How did Moody's change the outlook for Peapack-Gladstone Financial (PGC)?

Moody's changed the outlook on long-term ratings for Peapack-Gladstone Financial from 'under review' to 'stable'.

What factors did Moody's cite in confirming Peapack-Gladstone Financial 's (PGC) ratings?

Moody's cited the company's sustained solid capital position and recent improvements in its funding and liquidity profile as adequate mitigants against the Bank's risk profile.

How did Peapack-Gladstone Financial 's (PGC) deposit base perform during the 2023 regional banking crisis?

According to Moody's, Peapack-Gladstone Financial 's deposit base demonstrated resilience during the 2023 regional banking crisis.