STOCK TITAN
  1. Home
  2. Sec-filings
  3. PGC
  4. [8-K] PEAPACK GLADSTONE FINANCIAL CORP Reports Material Event

Peapack-Gladstone (NASDAQ: PGC) grows Q1 2026 earnings, margin and capital

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Peapack-Gladstone Financial Corporation reported strong first quarter 2026 results, highlighted by higher earnings, loan and deposit growth, and stronger capital. Net income reached $14.2 million, or $0.80 per diluted share, up from $12.2 million, or $0.69, in the previous quarter and $7.6 million, or $0.43, a year earlier.

Total revenue rose to $82.5 million, with net interest income of $59.9 million and a net interest margin of 3.26%, reflecting improved loan yields and a better funding mix. Loans grew to $6.4 billion and deposits to $6.8 billion, supported by strong growth in noninterest-bearing accounts. Wealth management remained a key contributor, with $13.1 billion in assets under management and administration and $16.5 million of fee income.

Asset quality improved as nonperforming assets fell to $59.3 million, or 0.77% of total assets, while allowance coverage remained solid at 1.04% of total loans. The company redeemed $100 million of subordinated debt and completed a $30 million private placement of 6.00% Series B Non-Cumulative Convertible Preferred Stock, helping lift shareholders’ equity to $699 million and tangible book value per share to $37.02. The board declared a $0.05 per-share cash dividend.

Positive

  • Strong earnings growth and profitability: Q1 2026 net income rose to $14.2 million with diluted EPS of $0.80, up sharply from $0.69 in Q4 2025 and $0.43 a year earlier, supported by higher revenue and improved efficiency.
  • Margin expansion and revenue momentum: Net interest income increased to $59.9 million and net interest margin widened to 3.26%, while total revenue reached $82.5 million, indicating effective loan pricing and a better funding mix.
  • Improved capital structure and tangible book value: Redemption of $100 million of subordinated debt and issuance of $30 million of 6.00% Series B Non-Cumulative Convertible Preferred Stock strengthened capital, helping lift tangible book value per share 14% year-over-year to $37.02.

Negative

  • None.

Insights

Q1 2026 shows broad-based growth, margin expansion, and stronger capital.

Peapack-Gladstone Financial Corporation delivered materially higher profitability, with net income of $14.2 million and diluted EPS of $0.80, up sharply year-over-year. Revenue reached $82.5 million as net interest income grew to $59.9 million and net interest margin expanded to 3.26%.

Balance sheet growth was healthy and relationship-driven. Loans increased to $6.4 billion and deposits to $6.8 billion, with noninterest-bearing deposits contributing nearly half of quarterly deposit growth. Wealth management remained a diversified earnings pillar, generating $16.5 million of fee income and supporting $13.1 billion in assets under management and administration as of March 31, 2026.

Asset quality trends were generally favorable: nonperforming assets declined to 0.77% of total assets, though the quarter included elevated charge-offs largely tied to a small number of credits. The $30 million preferred equity issuance and $100 million subordinated debt redemption improved capital quality, with the holding company’s Tier 1 leverage ratio at 9.24% and CET1 at 10.55% as of March 31, 2026. Future filings can further clarify how loan growth, funding mix, and credit costs evolve under this capital structure.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Net income $14.2 million Quarter ended March 31, 2026
Diluted EPS $0.80 per share Quarter ended March 31, 2026
Total revenue $82.5 million Quarter ended March 31, 2026
Net interest margin 3.26% Quarter ended March 31, 2026
Total loans $6.4 billion Balance at March 31, 2026
Total deposits $6.8 billion Balance at March 31, 2026
Nonperforming assets ratio 0.77% of total assets As of March 31, 2026
Tangible book value per share $37.02 As of March 31, 2026
net interest margin financial
"Net interest margin expanded to 3.26% compared to 3.08% in the prior quarter and 2.68% in the prior-year period"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
nonperforming assets financial
"nonperforming assets decreased to $59.3 million, or 0.77% of total assets"
Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.
allowance for credit losses financial
"the allowance for credit losses ("ACL") was $67.0 million (1.04% of total loans)"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
Series B Non-Cumulative Convertible Preferred Stock financial
"completed a private placement of $30.0 million of 6.00% Series B Non-Cumulative Convertible Preferred Stock in March"
Tier 1 Leverage Ratio financial
"The Tier 1 Leverage Ratio at March 31, 2026 was 9.02% for the Bank and 9.24% for the Company"
Tier 1 leverage ratio measures a bank’s core capital — the money that can absorb losses — as a share of its total assets, showing how much of its balance sheet is funded by real loss-absorbing capital rather than borrowed money. Investors use it like a safety gauge: a higher ratio means a bigger cushion against shocks and lower risk of insolvency, similar to how a thicker spare tire reduces the chance of being stranded.
tangible book value per share financial
"Tangible book value per share increased 14% to $37.02 per share at March 31, 2026"
Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.
Net income $14.2 million +86% YoY
Diluted EPS $0.80 +86% YoY (from $0.43)
Total revenue $82.5 million +28% YoY (from $64.3 million)
Net interest margin 3.26% +58 bps YoY (from 2.68%)
Total loans $6.4 billion +12% YoY
Total deposits $6.8 billion +9% YoY
Understanding 8-K Material Events →
false000105074300010507432026-04-222026-04-22

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported)

April 22, 2026

 

PEAPACK-GLADSTONE FINANCIAL CORPORATION

(Exact Name of Registrant as Specified in Charter)

 

New Jersey

001-16197

22-3537895

(State or Other Jurisdiction

(Commission

(I.R.S. Employer

  of Incorporation)

File Number)

Identification No.)

 

 

 

500 Hills Drive, Suite 300, Bedminster, New Jersey

07921

(Address of Principal Executive Offices)

(Zip Code)

 

Registrant’s telephone number, including area code

(908) 234-0700

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, no par value

 

PGC

 

The NASDAQ Stock Market, LLC

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

 

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

 

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

 

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2 of this chapter).

Emerging growth company ☐

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. ☐

 

 

INFORMATION TO BE INCLUDED IN THE REPORT

Item 2.02 Results of Operations and Financial Condition.

On April 22, 2026, Peapack-Gladstone Financial Corporation (the "Company") issued a press release reporting earnings and other financial results for the three months ended March 31, 2026. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated by reference in its entirety.

The information disclosed under this Item 2.02, including Exhibit 99.1, shall be considered “furnished” but not “filed” for purposes of the Securities Exchange Act of 1934, as amended.

 

Item 7.01 Regulation FD Disclosure.

The Company is furnishing presentation materials included as Exhibit 99.2 to this report. The Company is not undertaking to update this presentation. The information in this report (including Exhibit 99.1) is being furnished pursuant to Item 7.01 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. This report will not be deemed an admission as to the materiality of any information herein (including Exhibit 99.2).

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.

 

Title

 

 

 

99.1

 

Press Release dated April 22, 2026.

 

 

 

99.2

 

Investor Presentation used by the Company for the first quarter of 2026.

 

 

 

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PEAPACK-GLADSTONE FINANCIAL CORPORATION

Dated: April 22, 2026

By:

/s/ Frank A. Cavallaro

Frank A. Cavallaro

Senior Executive Vice President and Chief Financial Officer

 

Exhibit 99.1

Contact:

Frank A. Cavallaro, SEVP and CFO

Peapack-Gladstone Financial Corporation

T: 908-306-8933

PEAPACK-GLADSTONE FINANCIAL CORPORATION

REPORTS FIRST QUARTER FINANCIAL RESULTS

 

Bedminster, N.J. – April 22, 2026 – Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the "Company") announces its first quarter 2026 financial results.

This earnings release should be read in conjunction with the Company’s Q1 2026 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’s results reflect continued execution of its private banking strategy and strategic expansion throughout the Metropolitan New York region. Investments in talent, geographic expansion, and client relationships continue to strengthen the Company’s deposit franchise, enhance its balance sheet, and support durable long-term earnings growth.

 

Douglas L. Kennedy, President and CEO stated, “Our first quarter results reflect continued momentum and sustainability in delivering enhanced shareholder value. Core earnings increased for a sixth consecutive quarter, with net income reaching $14.2 million, up 16% over the previous quarter and 86% over the first quarter of 2025.”

For the quarter ended March 31, 2026, the Company reported net income of $14.2 million, or $0.80 per diluted share, compared to $12.2 million, or $0.69 per diluted share, for the quarter ended December 31, 2025.

 

Mr. Kennedy added, “This performance continues to be driven by steady growth in both loans and deposits. Total loans increased by 12% over the last twelve months to $6.4 billion, while deposits grew 9% to $6.8 billion during the same period reflecting the strength of our client-focused approach and consistent execution across business lines."

 

During the first quarter the Company also announced a commitment by Strategic Value Bank Partners to purchase up to $50 million of preferred stock. Strategic Value Bank Partners is a well-known, long-term investor primarily focused on the banking sector. The commitment included an initial $30 million private placement of the preferred stock which closed during March 2026 with the ability to issue an additional $20 million through the end of 2027.

 

Mr. Kennedy noted, “We are very pleased to partner with Strategic Value Bank Partners whose long-term orientation aligns well with our current strategic initiatives. This capital raise provides the flexibility needed to continue to execute on our growth and expansion plan while maintaining capital levels consistent with our long-standing targets. More importantly, it reflects our disciplined approach to capital management with the ultimate goal of delivering top tier returns and value to our entire shareholder base.”

1

First Quarter Highlights:

•
Net Income: $14.2 million, or $0.80 per diluted share
•
Net Interest Income: $59.9 million, representing the eighth consecutive quarter of growth
•
Net Interest Margin: 3.26%, an increase of 18 basis points compared to the previous quarter and 58 basis points year-over-year
•
Loan Growth: $6.4 billion in total loans, an increase of $686 million year-over-year
•
Deposits: $6.8 billion at March 31, 2026, an increase of $540 million year-over-year
•
Wealth Management: $13.1 billion in assets under management and administration
•
Wealth Management Fee Income: $16.5 million or 20% of total revenue
•
Shareholders' Equity: $699 million at March 31, 2026, an increase of $77 million year-over-year
•
Shareholder Value: Tangible book value per share increased 14% year-over-year to $37.02. See Non-GAAP financial measures reconciliation included in these table. Book value per share increased 13% year-over-year to $39.48

 

 

Key Financial Metrics

 

Q1 2026

 

 

Q4 2025

 

 

Q1 2025

 

Net income ($ millions)

 

$

14.2

 

 

$

12.2

 

 

$

7.6

 

Diluted EPS

 

$

0.80

 

 

$

0.69

 

 

$

0.43

 

Net interest income ($ millions)

 

$

59.9

 

 

$

56.5

 

 

$

45.5

 

Net interest margin

 

 

3.26

%

 

 

3.08

%

 

 

2.68

%

Total revenue ($ millions)

 

$

82.5

 

 

$

78.2

 

 

$

64.3

 

Operating expenses ($ millions)

 

$

55.4

 

 

$

53.5

 

 

$

49.4

 

Pre-provision net revenue ($ millions)

 

$

27.1

 

 

$

24.7

 

 

$

14.9

 

Return on average assets (annualized)

 

 

0.74

%

 

 

0.65

%

 

 

0.43

%

Return on average equity (annualized)

 

 

8.51

%

 

 

7.51

%

 

 

4.98

%

 

Earnings and Operating Leverage

 

The Company had strong revenue growth of 28% year-over-year, with total revenue of $82.5 million for the first quarter of 2026, compared to $78.2 million for the fourth quarter of 2025 and $64.3 million for the first quarter of 2025. Revenue growth has been primarily attributable to the consistent improvement in net interest income over the last twelve months. The increase in revenue growth translated into higher earnings driving positive operating leverage and improved profitability.

Operating expenses increased at a more moderate pace increasing to $55.4 million for the first quarter of 2026, compared to $53.5 million for the fourth quarter of 2025 and $49.4 million for the first quarter of 2025. The increase during the first quarter was primarily driven by increased health insurance costs and annual merit increases.

 

Net Interest Income and Margin

 

Net interest income totaled $59.9 million for the first quarter of 2026, an increase of $3.4 million, or 6%, from the fourth quarter of 2025 and an increase of $14.4 million, or 32%, from the first quarter of 2025. Net interest margin expanded to 3.26% compared to 3.08% in the prior quarter and 2.68% in the prior-year period continuing the upward trend over the past several quarters. This improvement in net interest income and net interest margin was driven primarily by an increase in interest-earning assets coupled with lower costs on average interest-bearing liabilities and continued growth in core deposit relationships. This momentum reflects discipline in our loan pricing and continued improvement in our funding mix.

 

Loans / Commercial Banking

Total loans increased $184.1 million, or 12% annualized, to $6.4 billion at March 31, 2026, compared to $6.3 billion at December 31, 2025, primarily driven by commercial mortgage and commercial and industrial loan originations during the quarter. Commercial mortgage activity was bolstered by sponsor demand for stabilized assets

2

and refinancing activity. C&I growth was driven by business expansion and capital investment. Total C&I loans and leases at March 31, 2026 were $2.8 billion, or 43% 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.”

 

Wealth Management

 

John Babcock, President of the Bank’s Wealth Management Division, stated, “Our Wealth Management business delivered another quarter of solid performance, with wealth management fee income totaling $16.5 million for the first quarter of 2026, compared to $16.1 million for the fourth quarter of 2025 and $15.4 million for the first quarter of 2025 driven by continued client inflows of $227 million, along with disciplined cost management and operating efficiency. We ended the quarter with assets under management and administration remaining stable at $13.1 billion as of March 31, 2026, compared to prior quarter end, despite the market volatility late in the quarter."

 

Funding / Liquidity / Interest Rate Risk Management

 

Total deposits increased $237.8 million, or 14% annualized, to $6.8 billion at March 31, 2026, from $6.6 billion at December 31, 2025. Noninterest-bearing deposits increased by $115.8 million, which represented 49% of the deposit growth during the quarter and a meaningful portion of total funding, supporting both margin expansion and balance sheet stability.

The Company’s liquidity profile remains strong with a loan-to-deposit ratio of 94%. At March 31, 2026, the Company’s balance sheet liquidity totaled $991 million, or 13% of total assets. The Company maintains additional liquidity resources of approximately $4.0 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 $5.0 billion at March 31, 2026, which amounted to 240% of the total uninsured/uncollateralized deposits currently on the Company’s balance sheet. The Company continues to maintain a well-balanced funding base with a high level of operating deposits and no reliance on brokered funding.

 

In the first quarter of 2026, the Company used its strong liquidity to reposition a portion of the securities portfolio, exiting lower-yielding, longer-duration assets without impacting earnings, and redeploying them into higher-yielding bonds with better structure.

 

Asset Quality / Provision for Credit Losses

Asset quality continued to improve with nonperforming assets declining for the third consecutive quarter. In the first quarter of 2026, nonperforming assets decreased to $59.3 million, or 0.77% of total assets, compared to $68.2 million, or 0.91% of total assets, at December 31, 2025. The decrease in nonperforming assets during the first quarter of 2026 was largely driven by the liquidation of one commercial loan with a balance of $9.6 million. Loans past due 30 to 89 days and still accruing increased to $47.1 million, or 0.73% of total loans, at March 31, 2026 compared to $26.6 million, or 0.42% of total loans, at December 31, 2025. The increase in past due loans at March 31, 2026 was primarily due to one multifamily relationship with an outstanding balance of $36.2 million.

 

Mr. Kennedy noted, “Overall credit trends remain favorable and we continue to manage the portfolio proactively and conservatively. 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."

The provision for credit losses totaled $7.3 million for the first quarter of 2026, compared to $7.7 million for the fourth quarter of 2025 and $4.5 million for the March 31, 2025 quarter. The first quarter provision was attributable to loan growth of $184.1 million resulting in a provision of $1.3 million, in addition to changes in specific reserves which required a provision of $6.0 million.

3

At March 31, 2026, the allowance for credit losses ("ACL") was $67.0 million (1.04% of total loans), compared to $71.0 million (1.14% of total loans) at December 31, 2025. Charge-offs of $11.3 million during the period were associated with the sale of one multifamily loan with a balance totaling $8.3 million and the liquidation of one commercial loan with a balance of $9.6 million. Specific reserves of $5.8 million, related to these charge-offs, had been established in prior periods.

Capital

The Company’s capital position was strengthened during the first quarter of 2026. The Company redeemed $100.0 million of subordinated debt in the first quarter of 2026, which had become less efficient from a capital standpoint, and replaced a portion of it with the issuance of preferred equity. The Company successfully completed a private placement of $30.0 million of 6.00% Series B Non-Cumulative Convertible Preferred Stock in March. The preferred equity enhances the quality of our capital base while maintaining an attractive overall cost and improving financial flexibility.

Tangible book value per share increased 14% to $37.02 per share at March 31, 2026 from $32.56 at March 31, 2025. See Non-GAAP financial measures reconciliation included in these tables. Book value per share increased 13% to $39.48 per share at March 31, 2026 compared to $35.08 at March 31, 2025.

The Company’s and Bank’s regulatory capital ratios as of March 31, 2026 remain strong. The Tier 1 Leverage Ratio at March 31, 2026 was 9.02% for the Bank and 9.24% for the Company, while the Common Equity Tier 1 Ratio was 10.77% for the Bank and 10.55% for the Company. Where applicable, such ratios remain well above regulatory well capitalized standards.

On March 26, 2026, the Company declared a cash dividend of $0.05 per share payable on May 21, 2026 to shareholders of record on May 7, 2026.

Investor Conference Call

Peapack-Gladstone Financial Corporation's CEO Douglas Kennedy will host a conference call with investors and the financial community on April 23, 2026 at 11:00 a.m. (ET) to review first quarter 2026 financial results. The live audio webcast and presentation slides will be available using the following link: https://events.q4inc.com/attendee/461093557. Investor presentation materials will be made available prior to the conference call by going to the Investor Relations page on our Company website at www.peapackprivate.com. A replay will be available under the Events & Presentation section on our Investor Relations website.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $7.7 billion and assets under management and/or administration of $13.1 billion as of March 31, 2026. 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.

4

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 of 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;
•
demand 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.

5

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.

(Tables to follow)

6

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in Thousands, except per share data)

(Unaudited)

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

95,049

 

 

$

93,984

 

 

$

92,545

 

 

$

89,651

 

 

$

86,345

 

Interest expense

 

 

35,153

 

 

 

37,442

 

 

 

41,972

 

 

 

41,361

 

 

 

40,840

 

Net interest income

 

 

59,896

 

 

 

56,542

 

 

 

50,573

 

 

 

48,290

 

 

 

45,505

 

Wealth management fee income

 

 

16,503

 

 

 

16,064

 

 

 

15,798

 

 

 

15,943

 

 

 

15,435

 

Service charges and fees

 

 

1,359

 

 

 

1,317

 

 

 

1,184

 

 

 

1,194

 

 

 

1,112

 

Capital markets revenue

 

 

544

 

 

 

873

 

 

 

901

 

 

 

799

 

 

 

455

 

Other income

 

 

4,191

 

 

 

3,405

 

 

 

2,238

 

 

 

3,515

 

 

 

1,852

 

Total other income

 

 

22,597

 

 

 

21,659

 

 

 

20,121

 

 

 

21,451

 

 

 

18,854

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

82,493

 

 

 

78,201

 

 

 

70,694

 

 

 

69,741

 

 

 

64,359

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation expense

 

 

29,782

 

 

 

28,399

 

 

 

28,613

 

 

 

28,232

 

 

 

26,315

 

Benefits expense

 

 

9,583

 

 

 

8,397

 

 

 

8,143

 

 

 

7,829

 

 

 

9,564

 

Premises and equipment

 

 

6,858

 

 

 

7,142

 

 

 

6,676

 

 

 

6,641

 

 

 

6,154

 

FDIC insurance expense

 

 

1,388

 

 

 

1,565

 

 

 

1,345

 

 

 

1,045

 

 

 

855

 

Professional and legal fees

 

 

1,554

 

 

 

1,868

 

 

 

1,972

 

 

 

1,645

 

 

 

1,190

 

Trust department expense

 

 

1,180

 

 

 

1,139

 

 

 

1,111

 

 

 

1,092

 

 

 

1,043

 

Loan expense

 

 

556

 

 

 

905

 

 

 

475

 

 

 

939

 

 

 

433

 

Advertising

 

 

267

 

 

 

329

 

 

 

651

 

 

 

919

 

 

 

154

 

Other expenses

 

 

4,272

 

 

 

3,794

 

 

 

3,311

 

 

 

3,551

 

 

 

3,732

 

Total operating expenses

 

 

55,440

 

 

 

53,538

 

 

 

52,297

 

 

 

51,893

 

 

 

49,440

 

Pretax income before provision for credit losses

 

 

27,053

 

 

 

24,663

 

 

 

18,397

 

 

 

17,848

 

 

 

14,919

 

Provision for credit losses

 

 

7,327

 

 

 

7,671

 

 

 

4,790

 

 

 

6,586

 

 

 

4,471

 

Income before income taxes

 

 

19,726

 

 

 

16,992

 

 

 

13,607

 

 

 

11,262

 

 

 

10,448

 

Income tax expense

 

 

5,573

 

 

 

4,833

 

 

 

3,976

 

 

 

3,321

 

 

 

2,853

 

    Net Income

 

 

14,153

 

 

 

12,159

 

 

 

9,631

 

 

 

7,941

 

 

 

7,595

 

Dividends on preferred stock

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net income available to common shareholders

 

$

14,153

 

 

$

12,159

 

 

$

9,631

 

 

$

7,941

 

 

$

7,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (basic)

 

$

0.80

 

 

$

0.69

 

 

$

0.55

 

 

$

0.45

 

 

$

0.43

 

Earnings per share (diluted)

 

 

0.80

 

 

 

0.69

 

 

 

0.54

 

 

 

0.45

 

 

 

0.43

 

Weighted average number of common
   shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

17,585,846

 

 

 

17,558,019

 

 

 

17,576,899

 

 

 

17,704,110

 

 

 

17,610,917

 

Diluted

 

 

17,760,678

 

 

 

17,705,355

 

 

 

17,686,979

 

 

 

17,773,237

 

 

 

17,812,222

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets annualized (ROAA)

 

 

0.74

%

 

 

0.65

%

 

 

0.53

%

 

 

0.45

%

 

 

0.43

%

Return on average equity annualized (ROAE)

 

 

8.51

%

 

 

7.51

%

 

 

6.12

%

 

 

5.11

%

 

 

4.98

%

Return on average tangible equity annualized (ROATCE) (A)

 

 

9.10

%

 

 

8.06

%

 

 

6.59

%

 

 

5.50

%

 

 

5.37

%

Net interest margin (tax-equivalent basis)

 

 

3.26

%

 

 

3.08

%

 

 

2.81

%

 

 

2.77

%

 

 

2.68

%

GAAP efficiency ratio (B)

 

 

67.21

%

 

 

68.46

%

 

 

73.98

%

 

 

74.41

%

 

 

76.82

%

Operating expenses / average assets annualized

 

 

2.92

%

 

 

2.88

%

 

 

2.87

%

 

 

2.92

%

 

 

2.82

%

 

 

(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.

7

PEAPACK-GLADSTONE FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CONDITION

(Dollars in Thousands)

(Unaudited)

 

 

As of

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

9,220

 

 

$

8,712

 

 

$

8,514

 

 

$

7,524

 

 

$

7,885

 

Interest-earning deposits

 

 

244,194

 

 

 

179,108

 

 

 

338,672

 

 

 

308,078

 

 

 

224,032

 

Total cash and cash equivalents

 

 

253,414

 

 

 

187,820

 

 

 

347,186

 

 

 

315,602

 

 

 

231,917

 

Securities available for sale

 

 

710,046

 

 

 

774,203

 

 

 

756,578

 

 

 

767,533

 

 

 

832,030

 

Securities held to maturity

 

 

79,478

 

 

 

95,862

 

 

 

97,414

 

 

 

98,623

 

 

 

100,285

 

CRA equity security, at fair value

 

 

13,375

 

 

 

13,459

 

 

 

13,403

 

 

 

13,278

 

 

 

13,236

 

FHLB and FRB stock, at cost (A)

 

 

14,170

 

 

 

14,605

 

 

 

11,387

 

 

 

11,467

 

 

 

12,311

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

662,949

 

 

 

648,216

 

 

 

649,523

 

 

 

649,703

 

 

 

630,245

 

Multifamily mortgage

 

 

1,824,882

 

 

 

1,862,592

 

 

 

1,796,533

 

 

 

1,794,854

 

 

 

1,775,132

 

Commercial mortgage

 

 

887,712

 

 

 

774,428

 

 

 

689,166

 

 

 

643,520

 

 

 

633,957

 

Commercial and industrial loans

 

 

2,797,352

 

 

 

2,726,379

 

 

 

2,662,661

 

 

 

2,543,092

 

 

 

2,528,235

 

Consumer loans

 

 

210,731

 

 

 

187,360

 

 

 

171,811

 

 

 

140,668

 

 

 

140,443

 

Home equity lines of credit

 

 

58,194

 

 

 

59,306

 

 

 

57,166

 

 

 

52,434

 

 

 

48,301

 

Other loans

 

 

860

 

 

 

342

 

 

 

405

 

 

 

261

 

 

 

359

 

Total loans

 

 

6,442,680

 

 

 

6,258,623

 

 

 

6,027,265

 

 

 

5,824,532

 

 

 

5,756,672

 

Less: Allowance for credit losses

 

 

67,026

 

 

 

71,039

 

 

 

68,642

 

 

 

81,770

 

 

 

75,150

 

Net loans

 

 

6,375,654

 

 

 

6,187,584

 

 

 

5,958,623

 

 

 

5,742,762

 

 

 

5,681,522

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment

 

 

39,322

 

 

 

39,164

 

 

 

37,756

 

 

 

36,626

 

 

 

31,639

 

Accrued interest receivable

 

 

33,115

 

 

 

31,971

 

 

 

34,120

 

 

 

33,209

 

 

 

31,968

 

Bank owned life insurance

 

 

47,896

 

 

 

47,761

 

 

 

48,381

 

 

 

48,239

 

 

 

48,110

 

Goodwill and other intangible assets

 

 

43,595

 

 

 

43,839

 

 

 

44,111

 

 

 

44,383

 

 

 

44,655

 

Finance lease right-of-use assets

 

 

809

 

 

 

844

 

 

 

879

 

 

 

914

 

 

 

950

 

Operating lease right-of-use assets

 

 

38,079

 

 

 

39,886

 

 

 

37,692

 

 

 

38,291

 

 

 

39,456

 

Other assets

 

 

50,012

 

 

 

49,411

 

 

 

52,112

 

 

 

49,746

 

 

 

52,573

 

TOTAL ASSETS

 

$

7,698,965

 

 

$

7,526,409

 

 

$

7,439,642

 

 

$

7,200,673

 

 

$

7,120,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

1,544,515

 

 

$

1,428,745

 

 

$

1,323,492

 

 

$

1,237,864

 

 

$

1,184,860

 

Interest-bearing demand deposits

 

 

3,533,203

 

 

 

3,448,497

 

 

 

3,509,403

 

 

 

3,483,295

 

 

 

3,450,014

 

Savings

 

 

114,955

 

 

 

105,123

 

 

 

104,524

 

 

 

103,846

 

 

 

107,581

 

Money market accounts

 

 

1,222,405

 

 

 

1,197,995

 

 

 

1,226,506

 

 

 

1,095,665

 

 

 

1,087,959

 

Certificates of deposit – Retail

 

 

411,688

 

 

 

408,219

 

 

 

397,338

 

 

 

440,612

 

 

 

442,369

 

Certificates of deposit – Listing Service

 

 

—

 

 

 

400

 

 

 

899

 

 

 

1,841

 

 

 

3,773

 

Subtotal “customer” deposits

 

 

6,826,766

 

 

 

6,588,979

 

 

 

6,562,162

 

 

 

6,363,123

 

 

 

6,276,556

 

IB Demand – Brokered

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,000

 

Total deposits

 

 

6,826,766

 

 

 

6,588,979

 

 

 

6,562,162

 

 

 

6,363,123

 

 

 

6,286,556

 

Short-term borrowings

 

 

63,830

 

 

 

73,267

 

 

 

—

 

 

 

—

 

 

 

—

 

Finance lease liability

 

 

1,145

 

 

 

1,186

 

 

 

1,227

 

 

 

1,268

 

 

 

1,308

 

Operating lease liability

 

 

41,458

 

 

 

43,294

 

 

 

41,139

 

 

 

41,806

 

 

 

42,948

 

Subordinated debt, net

 

 

—

 

 

 

99,030

 

 

 

98,981

 

 

 

98,933

 

 

 

98,884

 

Due to brokers

 

 

—

 

 

 

—

 

 

 

25,125

 

 

 

—

 

 

 

—

 

Other liabilities

 

 

66,562

 

 

 

62,447

 

 

 

68,458

 

 

 

65,766

 

 

 

69,083

 

TOTAL LIABILITIES

 

 

6,999,761

 

 

 

6,868,203

 

 

 

6,797,092

 

 

 

6,570,896

 

 

 

6,498,779

 

Shareholders’ equity

 

 

699,204

 

 

 

658,206

 

 

 

642,550

 

 

 

629,777

 

 

 

621,873

 

TOTAL LIABILITIES AND

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

$

7,698,965

 

 

$

7,526,409

 

 

$

7,439,642

 

 

$

7,200,673

 

 

$

7,120,652

 

Assets under management and / or administration at
Peapack Private Bank & Trust's Wealth Management
Division (market value, not included above-dollars in billions)

 

$

13.1

 

 

$

13.1

 

 

$

12.9

 

 

$

12.3

 

 

$

11.8

 

 

 

(A) FHLB means "Federal Home Loan Bank" and FRB means "Federal Reserve Bank."

8

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in Thousands)

(Unaudited)

 

 

As of

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

Asset Quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due over 90 days and still accruing

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Nonaccrual loans

 

 

59,321

 

 

 

68,243

 

 

 

84,142

 

 

 

114,958

 

 

 

97,170

 

Other real estate owned

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total nonperforming assets

 

$

59,321

 

 

$

68,243

 

 

$

84,142

 

 

$

114,958

 

 

$

97,170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 

0.92

%

 

 

1.09

%

 

 

1.40

%

 

 

1.97

%

 

 

1.69

%

Nonperforming assets to total assets

 

 

0.77

%

 

 

0.91

%

 

 

1.13

%

 

 

1.60

%

 

 

1.36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing modifications (A)(B)

 

$

85,835

 

 

$

95,266

 

 

$

101,501

 

 

$

111,962

 

 

$

63,259

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due 30 through 89 days and still accruing

 

$

47,053

 

 

$

26,555

 

 

$

28,817

 

 

$

15,522

 

 

$

28,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans subject to special mention

 

$

75,935

 

 

$

51,027

 

 

$

56,534

 

 

$

86,907

 

 

$

75,248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified loans

 

$

90,583

 

 

$

118,912

 

 

$

134,982

 

 

$

145,783

 

 

$

142,273

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans

 

$

59,321

 

 

$

68,243

 

 

$

84,142

 

 

$

114,958

 

 

$

97,170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses ("ACL"):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of quarter

 

$

71,039

 

 

$

68,642

 

 

$

81,770

 

 

$

75,150

 

 

$

72,992

 

Provision for credit losses (C)

 

 

7,322

 

 

 

7,659

 

 

 

4,871

 

 

 

6,577

 

 

 

4,494

 

(Charge-offs)/recoveries, net (D)

 

 

(11,335

)

 

 

(5,262

)

 

 

(17,999

)

 

 

43

 

 

 

(2,336

)

End of quarter

 

$

67,026

 

 

$

71,039

 

 

$

68,642

 

 

$

81,770

 

 

$

75,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL to nonperforming loans

 

 

112.99

%

 

 

104.10

%

 

 

81.58

%

 

 

71.13

%

 

 

77.34

%

ACL to total loans

 

 

1.04

%

 

 

1.14

%

 

 

1.14

%

 

 

1.40

%

 

 

1.31

%

Collectively evaluated ACL to total loans (E)

 

 

0.94

%

 

 

0.94

%

 

 

0.95

%

 

 

1.06

%

 

 

1.09

%

 

 

(A) Amounts reflect modifications that are paying according to modified terms.

(B) Excludes modifications included in nonaccrual loans of $19.6 million at March 31, 2026, $36.0 million at December 31, 2025, $37.6 million at September 30, 2025, $38.1 million at June 30, 2025 and $3.9 million at March 31, 2025.

(C) Excludes provision of $5,000 at March 31, 2026, provision of $12,000 at December 31, 2025, a credit of $81,000 at September 30, 2025, provision of $9,000 at June 30, 2025, and a credit of $23,000 at March 31, 2025 related to off-balance sheet commitments.

(D) Includes charge-offs of $7.8 million related to two commercial and industrial loans and $3.5 million to one multifamily loan for the quarter ended March 31, 2026. Includes charge-offs of $6.3 million related to two multifamily loans for the quarter ended December 31, 2025. Includes charge-offs of $6.7 million related to three multifamily 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.

9

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED BALANCE SHEET DATA

(Dollars in Thousands)

(Unaudited)

 

 

As of

 

 

 

March 31,

 

 

Dec 31,

 

 

March 31,

 

 

 

2026

 

 

2025

 

 

2025

 

Capital Adequacy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity to total assets (A)

 

 

 

 

9.08

%

 

 

 

 

8.75

%

 

 

 

 

8.73

%

Tangible equity to tangible assets (B)

 

 

 

 

8.56

%

 

 

 

 

8.21

%

 

 

 

 

8.16

%

Book value per share (C)

 

 

 

$

39.48

 

 

 

 

$

37.49

 

 

 

 

$

35.08

 

Tangible book value per share (D)

 

 

 

$

37.02

 

 

 

 

$

34.99

 

 

 

 

$

32.56

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

March 31,

 

Dec 31,

 

March 31,

 

 

2026

 

2025

 

2025

Regulatory Capital – Holding Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage

 

$

704,063

 

 

9.24%

 

$

660,696

 

 

8.87%

 

$

633,456

 

 

8.98%

Tier I capital to risk-weighted assets

 

 

704,063

 

 

11.02

 

 

660,696

 

 

10.33

 

 

633,456

 

 

11.19

Common equity tier I capital ratio
   to risk-weighted assets

 

 

674,004

 

 

10.55

 

 

660,637

 

 

10.33

 

 

633,450

 

 

11.19

Tier I & II capital to risk-weighted assets

 

 

771,704

 

 

12.08

 

 

811,375

 

 

12.68

 

 

803,173

 

 

14.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory Capital – Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage (E)

 

$

687,120

 

 

9.02%

 

$

735,931

 

 

9.89%

 

$

708,276

 

 

10.05%

Tier I capital to risk-weighted assets (F)

 

 

687,120

 

 

10.77

 

 

735,931

 

 

11.52

 

 

708,276

 

 

12.52

Common equity tier I capital ratio
   to risk-weighted assets (G)

 

 

687,061

 

 

10.77

 

 

735,872

 

 

11.52

 

 

708,270

 

 

12.52

Tier I & II capital to risk-weighted assets (H)

 

 

754,761

 

 

11.83

 

 

807,580

 

 

12.64

 

 

779,068

 

 

13.77

 

 

(E) Regulatory well capitalized standard (including capital conservation buffer) = 4.00% ($305 million)

(F) Regulatory well capitalized standard (including capital conservation buffer) = 8.50% ($542 million)

(G) Regulatory well capitalized standard (including capital conservation buffer) = 7.00% ($446 million)

(H) Regulatory well capitalized standard (including capital conservation buffer) = 10.50% ($670 million)

 

 

10

PEAPACK-GLADSTONE FINANCIAL CORPORATION

LOANS CLOSED

(Dollars in Thousands)

(Unaudited)

 

 

 

For the Quarters Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

Residential loans retained

 

$

29,376

 

 

$

18,993

 

 

$

18,323

 

 

$

34,990

 

 

$

25,157

 

Residential loans sold

 

 

4,680

 

 

 

2,544

 

 

 

445

 

 

 

1,712

 

 

 

4,074

 

Total residential loans

 

 

34,056

 

 

 

21,537

 

 

 

18,768

 

 

 

36,702

 

 

 

29,231

 

Commercial real estate

 

 

138,570

 

 

 

130,790

 

 

 

78,825

 

 

 

24,086

 

 

 

47,280

 

Multifamily

 

 

31,825

 

 

 

100,611

 

 

 

47,991

 

 

 

73,350

 

 

 

6,800

 

Commercial (C&I) loans (A) (B)

 

 

274,269

 

 

 

358,468

 

 

 

453,554

 

 

 

200,671

 

 

 

257,282

 

SBA

 

 

11,445

 

 

 

2,666

 

 

 

6,821

 

 

 

7,090

 

 

 

5,928

 

Wealth lines of credit (A)

 

 

5,225

 

 

 

3,925

 

 

 

2,700

 

 

 

2,400

 

 

 

9,900

 

Total commercial loans

 

 

461,334

 

 

 

596,460

 

 

 

589,891

 

 

 

307,597

 

 

 

327,190

 

Installment loans

 

 

30,171

 

 

 

40,428

 

 

 

47,115

 

 

 

8,164

 

 

 

76,941

 

Home equity lines of credit (A)

 

 

6,638

 

 

 

3,929

 

 

 

11,755

 

 

 

5,154

 

 

 

4,805

 

Total loans closed

 

$

532,199

 

 

$

662,354

 

 

$

667,529

 

 

$

357,617

 

 

$

438,167

 

 

(A) Includes loans and lines of credit that closed in the period but not necessarily funded.

(B) Includes equipment finance.

 

 

11

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

(Tax-Equivalent Basis, Dollars in Thousands)

(Unaudited)

 

 

For the Three Months Ended

 

 

 

March 31, 2026

 

 

March 31, 2025

 

 

 

Average

 

 

Income/

 

 

Annualized

 

 

Average

 

 

Income/

 

 

Annualized

 

 

 

Balance

 

 

Expense

 

 

Yield

 

 

Balance

 

 

Expense

 

 

Yield

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (A)

 

$

934,080

 

 

$

7,126

 

 

 

3.05

%

 

$

1,032,257

 

 

$

8,213

 

 

 

3.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (B) (C):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages

 

 

656,719

 

 

 

7,958

 

 

 

4.85

 

 

 

617,185

 

 

 

6,670

 

 

 

4.32

 

Commercial mortgages

 

 

2,678,193

 

 

 

31,551

 

 

 

4.71

 

 

 

2,384,542

 

 

 

26,179

 

 

 

4.39

 

Commercial

 

 

2,773,733

 

 

 

43,359

 

 

 

6.25

 

 

 

2,432,862

 

 

 

40,104

 

 

 

6.59

 

Commercial construction

 

 

576

 

 

 

9

 

 

 

6.25

 

 

 

—

 

 

 

—

 

 

 

—

 

Installment

 

 

199,070

 

 

 

2,994

 

 

 

6.02

 

 

 

107,506

 

 

 

1,793

 

 

 

6.67

 

Home equity

 

 

55,816

 

 

 

936

 

 

 

6.71

 

 

 

45,949

 

 

 

845

 

 

 

7.36

 

Other

 

 

627

 

 

 

5

 

 

 

3.19

 

 

 

304

 

 

 

5

 

 

 

6.81

 

Total loans

 

 

6,364,734

 

 

 

86,812

 

 

 

5.46

 

 

 

5,588,348

 

 

 

75,596

 

 

 

5.41

 

Federal funds sold

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest-earning deposits

 

 

188,404

 

 

 

1,325

 

 

 

2.81

 

 

 

290,702

 

 

 

2,776

 

 

 

3.82

 

Total interest-earning assets

 

 

7,487,218

 

 

 

95,263

 

 

 

5.09

%

 

 

6,911,307

 

 

 

86,585

 

 

 

5.01

%

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

8,692

 

 

 

 

 

 

 

 

 

8,380

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(71,767

)

 

 

 

 

 

 

 

 

(74,413

)

 

 

 

 

 

 

Premises and equipment

 

 

39,336

 

 

 

 

 

 

 

 

 

29,954

 

 

 

 

 

 

 

Other assets

 

 

139,139

 

 

 

 

 

 

 

 

 

128,754

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 

115,400

 

 

 

 

 

 

 

 

 

92,675

 

 

 

 

 

 

 

Total assets

 

$

7,602,618

 

 

 

 

 

 

 

 

$

7,003,982

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

3,713,856

 

 

$

23,842

 

 

 

2.57

%

 

$

3,445,903

 

 

$

28,078

 

 

 

3.26

%

Money markets

 

 

1,070,606

 

 

 

6,368

 

 

 

2.38

 

 

 

982,245

 

 

 

6,717

 

 

 

2.74

 

Savings

 

 

111,872

 

 

 

193

 

 

 

0.69

 

 

 

106,073

 

 

 

118

 

 

 

0.44

 

Certificates of deposit – retail

 

 

411,628

 

 

 

3,099

 

 

 

3.01

 

 

 

468,176

 

 

 

4,363

 

 

 

3.73

 

Subtotal interest-bearing deposits

 

 

5,307,962

 

 

 

33,502

 

 

 

2.52

 

 

 

5,002,397

 

 

 

39,276

 

 

 

3.14

 

Interest-bearing demand – brokered

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,000

 

 

 

100

 

 

 

4.00

 

Certificates of deposit – brokered

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total interest-bearing deposits

 

 

5,307,962

 

 

 

33,502

 

 

 

2.52

 

 

 

5,012,397

 

 

 

39,376

 

 

 

3.14

 

Borrowings

 

 

45,262

 

 

 

432

 

 

 

3.82

 

 

 

1,001.00

 

 

 

11.00

 

 

 

4.54

 

Capital lease obligation

 

 

1,159

 

 

 

12

 

 

 

4.14

 

 

 

1,322

 

 

 

14

 

 

 

4.20

 

Subordinated debt

 

 

66,026

 

 

 

1,207

 

 

 

7.31

 

 

 

126,641

 

 

 

1,439

 

 

 

4.55

 

Total interest-bearing liabilities

 

 

5,420,409

 

 

 

35,153

 

 

 

2.59

%

 

 

5,141,361

 

 

 

40,840

 

 

 

3.18

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

1,405,577

 

 

 

 

 

 

 

 

 

1,122,191

 

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

111,095

 

 

 

 

 

 

 

 

 

129,857

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

1,516,672

 

 

 

 

 

 

 

 

 

1,252,048

 

 

 

 

 

 

 

Shareholders’ equity

 

 

665,537

 

 

 

 

 

 

 

 

 

610,573

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

7,602,618

 

 

 

 

 

 

 

 

$

7,003,982

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

60,110

 

 

 

 

 

 

 

 

$

45,745

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

2.50

%

 

 

 

 

 

 

 

 

1.83

%

Net interest margin (D)

 

 

 

 

 

 

 

 

3.26

%

 

 

 

 

 

 

 

 

2.68

%

 

 

(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.

12

PEAPACK-GLADSTONE FINANCIAL CORPORATION

AVERAGE BALANCE SHEET

(Tax-Equivalent Basis, Dollars in Thousands)

(Unaudited)

 

 

For the Three Months Ended

 

 

 

March 31, 2026

 

 

Dec 31, 2025

 

 

 

Average

 

 

Income/

 

 

Annualized

 

 

Average

 

 

Income/

 

 

Annualized

 

 

 

Balance

 

 

Expense

 

 

Yield

 

 

Balance

 

 

Expense

 

 

Yield

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (A)

 

$

934,080

 

 

$

7,126

 

 

 

3.05

%

 

$

958,470

 

 

$

7,426

 

 

 

3.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (B) (C):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages

 

 

656,719

 

 

 

7,958

 

 

 

4.85

 

 

 

646,533

 

 

 

7,469

 

 

 

4.62

 

Commercial mortgages

 

 

2,678,193

 

 

 

31,551

 

 

 

4.71

 

 

 

2,521,899

 

 

 

29,727

 

 

 

4.72

 

Commercial

 

 

2,773,733

 

 

 

43,359

 

 

 

6.25

 

 

 

2,674,515

 

 

 

43,089

 

 

 

6.44

 

Commercial construction

 

 

576

 

 

 

9

 

 

 

6.25

 

 

 

252

 

 

 

5

 

 

 

7.94

 

Installment

 

 

199,070

 

 

 

2,994

 

 

 

6.02

 

 

 

181,182

 

 

 

3,122

 

 

 

6.89

 

Home equity

 

 

55,816

 

 

 

936

 

 

 

6.71

 

 

 

57,781

 

 

 

1,040

 

 

 

7.20

 

Other

 

 

627

 

 

 

5

 

 

 

3.19

 

 

 

487

 

 

 

5

 

 

 

4.28

 

Total loans

 

 

6,364,734

 

 

 

86,812

 

 

 

5.46

 

 

 

6,082,649

 

 

 

84,457

 

 

 

5.55

 

Federal funds sold

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest-earning deposits

 

 

188,404

 

 

 

1,325

 

 

 

2.81

 

 

 

272,711

 

 

 

2,330

 

 

 

3.42

 

Total interest-earning assets

 

 

7,487,218

 

 

 

95,263

 

 

 

5.09

%

 

 

7,313,830

 

 

 

94,213

 

 

 

5.15

%

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

8,692

 

 

 

 

 

 

 

 

 

8,412

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(71,767

)

 

 

 

 

 

 

 

 

(68,024

)

 

 

 

 

 

 

Premises and equipment

 

 

39,336

 

 

 

 

 

 

 

 

 

38,252

 

 

 

 

 

 

 

Other assets

 

 

139,139

 

 

 

 

 

 

 

 

 

135,915

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 

115,400

 

 

 

 

 

 

 

 

 

114,555

 

 

 

 

 

 

 

Total assets

 

$

7,602,618

 

 

 

 

 

 

 

 

$

7,428,385

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

3,713,856

 

 

$

23,842

 

 

 

2.57

%

 

$

3,647,796

 

 

$

26,375

 

 

 

2.89

%

Money markets

 

 

1,070,606

 

 

 

6,368

 

 

 

2.38

 

 

 

1,059,749

 

 

 

6,983

 

 

 

2.64

 

Savings

 

 

111,872

 

 

 

193

 

 

 

0.69

 

 

 

104,033

 

 

 

173

 

 

 

0.67

 

Certificates of deposit – retail

 

 

411,628

 

 

 

3,099

 

 

 

3.01

 

 

 

390,446

 

 

 

2,948

 

 

 

3.02

 

Subtotal interest-bearing deposits

 

 

5,307,962

 

 

 

33,502

 

 

 

2.52

 

 

 

5,202,024

 

 

 

36,479

 

 

 

2.80

 

Interest-bearing demand – brokered

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Certificates of deposit – brokered

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total interest-bearing deposits

 

 

5,307,962

 

 

 

33,502

 

 

 

2.52

 

 

 

5,202,024

 

 

 

36,479

 

 

 

2.80

 

Borrowings

 

 

45,262

 

 

 

432

 

 

 

3.82

 

 

 

2,727

 

 

 

27

 

 

 

3.96

 

Capital lease obligation

 

 

1,159

 

 

 

12

 

 

 

4.14

 

 

 

1,201

 

 

 

13

 

 

 

4.33

 

Subordinated debt

 

 

66,026

 

 

 

1,207

 

 

 

7.31

 

 

 

99,004

 

 

 

923

 

 

 

3.73

 

Total interest-bearing liabilities

 

 

5,420,409

 

 

 

35,153

 

 

 

2.59

%

 

 

5,304,956

 

 

 

37,442

 

 

 

2.82

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

1,405,577

 

 

 

 

 

 

 

 

 

1,359,724

 

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

111,095

 

 

 

 

 

 

 

 

 

116,060

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

1,516,672

 

 

 

 

 

 

 

 

 

1,475,784

 

 

 

 

 

 

 

Shareholders’ equity

 

 

665,537

 

 

 

 

 

 

 

 

 

647,645

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

7,602,618

 

 

 

 

 

 

 

 

$

7,428,385

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

60,110

 

 

 

 

 

 

 

 

$

56,771

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

2.50

%

 

 

 

 

 

 

 

 

2.33

%

Net interest margin (D)

 

 

 

 

 

 

 

 

3.26

%

 

 

 

 

 

 

 

 

3.08

%

 

 

(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.

 

13

PEAPACK-GLADSTONE FINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES RECONCILIATION

Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. We calculate tangible book value per share by dividing tangible equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders’ equity by common shares outstanding at period end. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.

The efficiency ratio is a non-GAAP measure of expense control relative to recurring revenue. We calculate the efficiency ratio by dividing total noninterest expenses, excluding other real estate owned provision, as determined under GAAP, by net interest income and total noninterest income as determined under GAAP, but excluding net gains/(losses) on loans held for sale at lower of cost or fair value and excluding net gains on securities from this calculation, which we refer to below as recurring revenue. We believe that this provides a reasonable measure of core expenses relative to core revenue.

We believe these non-GAAP financial measures provide information that is important to investors and useful in understanding our financial position, results and ratios because our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share and efficiency ratio to the underlying GAAP numbers is set forth below.

 

 

Three Months Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

Tangible Book Value Per Share

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

Shareholders’ equity

 

$

699,204

 

 

$

658,206

 

 

$

642,550

 

 

$

629,777

 

 

$

621,873

 

Less: Intangible assets, net

 

 

43,595

 

 

 

43,839

 

 

 

44,111

 

 

 

44,383

 

 

 

44,655

 

Tangible equity

 

$

655,609

 

 

$

614,367

 

 

$

598,439

 

 

$

585,394

 

 

$

577,218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period end shares outstanding

 

 

17,708,327

 

 

 

17,558,019

 

 

 

17,548,471

 

 

 

17,636,264

 

 

 

17,726,251

 

Tangible book value per share

 

$

37.02

 

 

$

34.99

 

 

$

34.10

 

 

$

33.19

 

 

$

32.56

 

Book value per share

 

 

39.48

 

 

 

37.49

 

 

 

36.62

 

 

 

35.71

 

 

 

35.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Equity to Tangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

7,698,965

 

 

$

7,526,409

 

 

$

7,439,642

 

 

$

7,200,673

 

 

$

7,120,652

 

Less: Intangible assets, net

 

 

43,595

 

 

 

43,839

 

 

 

44,111

 

 

 

44,383

 

 

 

44,655

 

Tangible assets

 

$

7,655,370

 

 

$

7,482,570

 

 

$

7,395,531

 

 

$

7,156,290

 

 

$

7,075,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible equity to tangible assets

 

 

8.56

%

 

 

8.21

%

 

 

8.09

%

 

 

8.18

%

 

 

8.16

%

Equity to assets

 

 

9.08

%

 

 

8.75

%

 

 

8.64

%

 

 

8.75

%

 

 

8.73

%

 

14

(Dollars in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

Return on Average Tangible Equity

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

Net income

 

$

14,153

 

 

$

12,159

 

 

$

9,631

 

 

$

7,941

 

 

$

7,595

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders’ equity

 

$

665,537

 

 

$

647,645

 

 

$

629,091

 

 

$

621,900

 

 

$

610,573

 

Less: Average intangible assets, net

 

 

43,741

 

 

 

43,982

 

 

 

44,266

 

 

 

44,538

 

 

 

44,815

 

Average tangible equity

 

$

621,796

 

 

$

603,663

 

 

$

584,825

 

 

$

577,362

 

 

$

565,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity

 

 

9.10

%

 

 

8.06

%

 

 

6.59

%

 

 

5.50

%

 

 

5.37

%

 

 

(Dollars in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

Efficiency Ratio

 

2026

 

 

2025

 

 

2025

 

 

2025

 

 

2025

 

Net interest income

 

$

59,896

 

 

$

56,542

 

 

$

50,573

 

 

$

48,290

 

 

$

45,505

 

Total other income

 

 

22,597

 

 

 

21,659

 

 

 

20,121

 

 

 

21,451

 

 

 

18,854

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment for CRA equity security

 

 

84

 

 

 

(56

)

 

 

(125

)

 

 

(42

)

 

 

(195

)

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on loans held for sale at lower of cost or fair value

 

 

—

 

 

 

—

 

 

 

364

 

 

 

—

 

 

 

—

 

Income from life insurance proceeds

 

 

—

 

 

 

(161

)

 

 

—

 

 

 

—

 

 

 

 

Loss/(gain) on securities sale, net

 

 

81

 

 

 

—

 

 

 

—

 

 

 

(7

)

 

 

—

 

Gain on sale of property

 

 

—

 

 

 

(318

)

 

 

—

 

 

 

—

 

 

 

—

 

Gain on lease termination

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(875

)

 

 

—

 

Total recurring revenue

 

 

82,658

 

 

 

77,666

 

 

 

70,933

 

 

 

68,817

 

 

 

64,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

55,440

 

 

 

53,538

 

 

 

52,297

 

 

 

51,893

 

 

 

49,440

 

Total operating expense

 

 

55,440

 

 

 

53,538

 

 

 

52,297

 

 

 

51,893

 

 

 

49,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

67.07

%

 

 

68.93

%

 

 

73.73

%

 

 

75.41

%

 

 

77.05

%

 

 

 

 

 

 

 

 

 

 

 

 

15

Slide 1

The Q1 2026 Investor Update should be read in conjunction with the Q1 2026 Earnings Release issued on April 22, 2026. Investor Update Q1 2026 Exhibit 99.2

Slide 2

First Quarter 2026 Highlights Delivering positive momentum See page 19 for notes and important information. Earnings Performance Banking & Wealth Momentum Sustained earnings momentum with EPS of $0.80 up 16% QoQ and 86% YoY Sixth consecutive quarter of core earnings1 growth, up 10% QoQ and 81% YoY, driven by continued NII growth and moderate expense growth Margin expansion continues in a meaningful way, with NIM expanding 18 bps QoQ to 3.26%, up 45 bps over the past 6 months and 106 bps from its recent low in Q1 2024 Sustained positive operating leverage with efficiency ratio improving for a sixth consecutive quarter to 67% Consistent balance sheet growth and execution driven by strong relationship-focused activity 683 NIB DDA accounts opened and funded in Q1; growth of $116 million represented 49% of the $238 million in total deposit growth Asset quality continues to improve with nonperforming assets declining for a third consecutive quarter to 0.77% Strong wealth momentum continues with $227 million of new business inflows Proactive capital actions enhance flexibility and support continued growth: preferred equity issuance, subordinated debt redemption, and bond optimization $0.80 + 86% YoY EPS 4 consecutive quarters of growth + 81% YoY PPNR1 Growth 6 consecutive quarters of growth + 32% YoY NII Growth 8 consecutive quarters of growth 3.26% + 58 bps YoY Net Interest Margin + 45 bps over the last six months - 39% YoY Nonperforming Assets 3 consecutive quarters of improvement + 32% Q1 Annualized NIB DDA Growth Up 30% YoY + 12% Q1 Annualized Loan Growth Consistent production

Slide 3

Quarterly Earnings Momentum Continuing to deliver shareholder value Sustained earnings momentum, with EPS of $0.80, up 16% QoQ and 86% YoY Sixth consecutive quarter of core earnings1 growth, up 10% QoQ and 81% YoY Operating leverage sustained, with efficiency ratio improving for a sixth consecutive quarter to 67% Margin expansion continues, with NIM increasing 18 bps QoQ to 3.26% and up 45 bps over the last six months and 58 bps YoY Credit costs remain manageable, with provision reflecting loan growth and specific reserves on a limited number of loans Results have led to TBVPS growth of 14% YoY ($ in millions, except per share data) See page 19 for notes and important information. Key Observations +81% YoY +86% YoY +58 bps YoY +14% YoY

Slide 4

Metro New York Expansion Timeline Strategic investments made during industry stress is creating long-term value Annualized PPNR ($ millions) March 2023 – July 2023: Three large bank failures and rapid increase in Fed Funds bring industry-wide volatility April 2024: Hired 13 teams and leadership for NYC May 2023: Hired a team of seasoned bankers in NYC April 2024 – Present: Execution & Inflection April 2025: NYC financial center Flagship opened The decision to expand in New York City during industry stress has translated into: Earnings inflection following NYC launch Summer 2025: Hired new Head of CRE, Head of Equipment Finance, Senior Wealth Advisors, and 6 Long Island Teams January 2025: Rebranded as Peapack Private Bank & Trust Enhanced funding profile Balance sheet remix Disciplined lending Margin expansion Expense normalization Positive operating leverage

Slide 5

Proactive Capital Actions to Support Growth TBVPS growth creates shareholder value $30 million convertible preferred issuance executed in Q1, with the flexibility to call up to an additional $20 million Minimal execution costs and immediate capital benefit, with strong alignment to long-term strategy providing up to $20 million of additional growth capital Common Equity Tier 1 improved meaningfully QoQ through organic capital generation and RWA management Tier 1 grew above 11.0% following the preferred equity issuance, enhancing capital flexibility and capacity for growth Subordinated debt replaced with higher-quality Tier 1 capital, improving overall capital efficiency Positions the balance sheet to support continued loan growth at attractive spreads Optimization & Flexibility Pro Forma Impact of additional $20MM Impact of preferred issuance 14% TBVPS Growth over LTM See page 19 for notes and important information.

Slide 6

Deposit Trends NIB DDA represents 67% of deposit growth over LTM Continued deposit momentum, with core relationship deposits1 increasing $238 million and total deposits eclipsing $6.8 billion 49% of deposit growth in Q1 was NIB, demonstrating successful relationship-focused growth and continued improvement in funding quality Granular and consistent client acquisition, with 683 NIB DDA accounts opened and funded in the quarter, above recent quarterly averages Funding mix continues to improve with NIB deposits now representing 23% of total deposits, up from 17% 24 months ago Disciplined and growing deposit franchise, supporting strong betas and continued margin expansion $6.8 $6.3 $6.4 30% NIB Growth over LTM ($ in billions) $6.6 See page 19 for notes and important information. $6.6 ~600 Average # of NIB DDA Accounts opened per quarter Key Trends & Impacts

Slide 7

Loan Trends Consistent growth focused on our strengths in C&I and CRE Consistent loan growth, with total loans increasing $184 million QoQ, reaching $6.4 billion Disciplined relationship driven approach, supporting growth at attractive risk-adjusted spreads Our core competency in C&I continues to be a growth engine, up 11% over the last twelve months and comprises 43% of loans Mix shift toward C&I reduces reliance on non-relationship Multifamily and improves diversification Diversification across 386 distinct industries provides portfolio resilience Diversified Across 386 NAICS Codes Gross Loans1 $6.4 billion $6.3 $6.4 $5.7 $5.8 $6.0 ($ in billions) 11% C&I Growth YoY +12% YoY Loan Growth See page 19 for notes and important information. Loan Growth & Mix

Slide 8

Net Interest Income Consistently delivering positive operating leverage & NII growth See page 19 for notes and important information. Key Observations NII growth continued in Q1 driven by balance sheet expansion and improved funding mix NIM of 3.26%, up 18 bps QoQ, reflects disciplined pricing and deposit mix benefits Deposit growth continues to drive the funding remix, with 49% of deposit growth in the quarter in NIB DDA Incremental spread for the quarter was 3.75%1 NIM is up 106 bps since its recent trough in Q1 2024 Loan production at attractive spreads support revenue growth and operating leverage Strong deposit franchise support ongoing stability

Slide 9

Wealth Management AUM/AUA remained stable despite volatile market conditions Sustained Long-Term Growth Track record of sustained long-term growth, achieving a 10% CAGR over the past three years. Strength and Scalability Market leader with $13.1 billion in assets under management and administration at quarter end, despite market volatility in Q1. High Value Client Relationships Average client relationship size of $4.6 million highlights Peapack Private’s focus on high net worth and ultra high net worth individuals and families. Strong Profitability and Operating Leverage Delivered a 41% EBITDA margin in FY 2025, illustrating disciplined cost management and operating efficiency. Comprehensive and Integrated Wealth Offering Peapack Private provides a holistic suite of services, including financial planning, investment management, trust and fiduciary services, and estate and tax planning — all grounded in personalized advice. Performance Insights $16.5 YTD Revenue +10% AUM/AUA Growth

Slide 10

Balance Sheet Strength 94% loan-to-deposit ratio and over $5.0 billion of available liquidity (~65% of total assets) reflect a strong and flexible position Core relationship deposits1 now fund 99% of loans, a meaningful shift in the balance sheet over the past several quarters Funding mix continues to improve through steady growth in operating and NIB deposits During the quarter, liquidity was strategically deployed into loan growth within core lending businesses at attractive spreads No reliance on brokered deposits, and minimal use of short-term borrowings See page 19 for notes and important information. By the Numbers +29%3 + 56%3 + 44%3

Slide 11

Credit Quality Problem loans remain well-controlled 30-89 Days Past Due / Gross Loans Nonperforming Assets / Total Assets Disciplined credit management and workout activity continue to drive improvement in classified and nonaccrual loans Nonperforming assets declined for a third consecutive quarter to 0.77% of total assets, down $9 million in Q1 and down $56 million over the last three quarters Early-stage delinquencies increased modestly in the quarter, largely driven by one relationship, and remain at manageable levels relative to total loans Problem loan trends remain contained with no evidence of broad-based credit deterioration ACL coverage of total loans remains stable at 1.04%, providing solid protection against residual credit risk Special Mention Loans / Gross Loans Key Observations 1 1 1 See page 19 for notes and important information.

Slide 12

Rent-Regulated Multifamily Continues to remain resilient with no evidence of systemic deterioration $1.8 billion Multifamily Portfolio Portfolio continues to run off with limited new originations focused on fully-banked relationships Isolated credit migration with recent increases in early-stage delinquencies and special mention loans driven by a single relationship; underlying collateral performance is generally stable Overall exposure remains manageable and represents a relatively small portion of the balance sheet Core portfolio anchored by experienced operators with significant ownership basis, supporting underlying credit quality New York Rent Regulated Multifamily Key Observations

Slide 13

Positioned for Long-Term Growth & Compelling Returns Boutique alternative to large banks in the Metro New York region. Anchored by a scarce and valuable $13.1 billion wealth management franchise. Expansion strategy has transformed our liquidity profile and creates a scalable foundation for future growth. Wealth management and spread income creates a platform for earnings durability. Commercial & Industrial relationships are delivering disciplined loan growth and core deposits. Continued expansion of our $2.8 billion commercial lending business, complementary treasury management platform, and sell-side advisory services supports deeper client engagement and revenue growth. Investments in technology and artificial intelligence are enhancing operating efficiency, driving innovation and supporting the delivery of white glove client experience, with a focus on governance. We remain laser-focused on cultivating a strong client-centric culture, independently affirmed by industry recognition: ABA Best Banks To Work For eight years in a row. Crain’s 2024 and 2025 Best Places to Work in NYC.

Slide 14

Statement Regarding Forward-Looking Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and may include expressions about Management’s strategies and Management’s expectations about financial condition and operating results, 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 actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to: 1) 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; 2) the impact of anticipated higher operating expenses in 2026 and beyond; 3) our ability to successfully integrate wealth management firm and team acquisitions; 4) our ability to successfully integrate our expanded employee base; 5) an unexpected decline in the economy, in particular in our New Jersey and New York market areas, including potential recessionary conditions; 6) declines in our net interest margin caused by the interest rate environment and/or our highly competitive market; 7) adverse changes in securities markets; 8) impact from a pandemic event on our business, operations, customers, allowance for credit losses and capital levels; 9) higher than expected increases in our allowance for credit losses; 10) changes in the methodology and assumptions used to calculate the allowance for credit losses; 11) higher than expected increases in credit losses or in the level of delinquent, nonperforming, classified and criticized loans or charge-offs; 12) 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; 13) decline in real estate values within our market areas; 14) 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; 15) the imposition of tariffs or other domestic or international governmental policies and retaliatory responses; 16) the impact of any federal government shutdown; 17) the failure to maintain current technologies and/or to successfully implement future information technology enhancements; 18) successful cyberattacks against our IT infrastructure and that of our IT and third-party providers; 19) higher than expected FDIC insurance premiums; 20) adverse weather conditions; 21) the current or anticipated impact of military conflict, terrorism or other geopolitical events; 22) our inability to successfully generate new business in new geographic markets, including our expansion into New York City and Long Island; 23) a reduction in our lower-cost funding sources; 24) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; 25) our inability to adapt to technological changes; 26) claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters; 27) our inability to retain key employees; 28) demand for loans and deposits in our market areas; 29) changes in New York City rent regulation law; 30) 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; 31) changes in accounting policies and practices; and/or 32) other unexpected material adverse changes in our financial condition, operations or earnings. The Company undertakes 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, the Company cannot guarantee future results, levels of activity, performance or achievements.  

Slide 15

Appendix A: Supplemental Information & Franchise Overview

Slide 16

Bedminster New York City Melville NEW YORK NEW JERSEY CONNECTICUT PENNSYLVANIA Greenville Rye Brook Princeton Morristown Summit Red Bank Lakewood Teaneck DE Peapack Private Bank & Trust Financial Centers Garden City Peapack Private The Premier Alternative to the Mega Banks in Metropolitan New York $13.1B Wealth AUM $6.8B Deposits $6.4B Loans  14% ▲ 12% ▲ 14% ▲ CAGR Since 2012 Founded in 1921, Peapack Private is the boutique alternative to large banks in the Metropolitan New York region, delivering white glove service through a single point of contact model. Grounded in an established wealth franchise, Peapack Private has demonstrated the ability to scale and compete for over the past decade. Strategic expansion underway throughout Metropolitan NY began in 2023; headcount has increased by more than 30% over that time and performance continues to exceed expectations.

Slide 17

The Peapack Private Client Experience Net Promoter Score Client satisfaction substantially exceeds the U.S. Banking Industry Benchmark Elevated boutique banking experience Distinct alternative to large banks with a refined, client-first service philosophy Personalized, relationship-driven service model Dedicated Relationship Manager delivering tailored solutions Trusted advisor approach built on integrity Transparent, professional interactions that foster long-term client relationships High-touch, responsive client experience and ease of doing business Clear communication, efficient processes, and seamless client interactions Net Promoter Score Momentum 41 57 65 NPS UP +24 Points Since 2023 Banking Industry Benchmark1 Based on Real Client Feedback See page 19 for notes and important information.

Slide 18

Appendix B: Notes & Financial Tables

Slide 19

Notes First Quarter 2026 Highlights slide See Non-GAAP Financial Measurement Reconciliation included in these appendices. Quarterly Earnings Momentum slide See Non-GAAP Financial Measurement Reconciliation included in these appendices. See Non-GAAP Financial Measurement Reconciliation included in these appendices. Proactive Capital Actions to Support Growth slide See Non-GAAP Financial Measurement Reconciliation included in these appendices. Deposit Trends slide Core relationship deposits defined as deposit relationships that are not custodial, brokered, or listing service. Loan Trends slide 1) Gross loans include loans held for sale. Net Interest Income slide 1) Incremental spread is defined as the weighted average loan coupon of loans originated in the period less the average cost of newly funded deposit accounts for the same period. Balance Sheet Strength slide Core relationship deposits defined as deposit relationships that are not custodial, brokered, or listing service. Total available liquidity defined as cash plus cash equivalents plus available-for-sale securities plus borrowing capacity less borrowings, letters of credit, and pledged securities plus customer deposits held off balance sheet. Growth rates are calculated from 12/31/2023 through 3/31/2026. Credit Quality slide 1) New York Rent Regulated Multifamily. Net Promoter Score slide 1) U.S. Banking Industry benchmark data source is Qualtrics, an international leader in client surveys and net promoter score.

Slide 20

Balance Sheet & AUM/AUA Summary

Slide 21

Asset Quality 1) Amounts reflect modifications that are paying according to modified terms. 2) Excludes modifications included in nonaccrual loans of $3.9 million at March 31, 2025, $36.0 million at December 31, 2025 and $19.6 million at March 31, 2026. 3) Excludes a credit of $23,000 at March 31, 2025, provision of $12,000 at December 31, 2025 and provision of $5,000 at March 31, 2026 related to off-balance sheet commitments. 4) Includes charge-offs of $6.3 million related to two multifamily loans for the quarter ended December 31, 2025.  Includes charge-offs of $7.8 million related to two commercial and industrial loans and $3.5 million to one multifamily loan for the quarter ended March 31, 2026. 5) Total ACL less reserves to loans individually evaluated equals collectively evaluated ACL.

Slide 22

Capital Summary 1) 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. 2) 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.

Slide 23

Quarterly Income Statement 1) Return on average tangible common equity is calculated by dividing tangible common equity by annualized net income.  See Non-GAAP financial measures reconciliation table.

Slide 24

Non-GAAP Financial Measurement Reconciliation We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios.  Our management internally assesses our performance based, in part, on these measures.  However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures.  As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies.

Slide 25

Non-GAAP Financial Measurement Reconciliation We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios.  Our management internally assesses our performance based, in part, on these measures.  However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures.  As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. Pre-Provision Net Revenue (“PPNR”) is a non-GAAP financial measure used by the Company to assess the earnings available to absorb credit losses and support capital from its core banking operations. PPNR is defined as: Net interest income (GAAP) + Noninterest income (GAAP) − Noninterest expense (GAAP) It excludes the provision for credit losses and income tax expense. PPNR is not a substitute for net income as reported under GAAP, and the calculation may differ from similarly-named measures at other institutions.

Slide 26

Douglas L. Kennedy President & Chief Executive Officer (908) 719-6554 dkennedy@peapackprivate.com Frank A. Cavallaro Senior EVP & Chief Financial Officer (908) 306-8933 fcavallaro@peapackprivate.com CONTACTS John P. Babcock Senior EVP & President of Peapack Private Wealth Management (908) 719-3301 jbabcock@peapackprivate.com Matthew P. Remo SVP | Managing Principal – Treasurer & Head of Corporate Finance (908) 872-9899 mremo@peapackprivate.com CORPORATE HEADQUARTERS 500 Hills Drive, Suite 300 P.O. Box 700 Bedminster, New Jersey 07921 (908) 234-0700 peapackprivate.com

Source: View Original Filing on SEC EDGAR

FAQ

How did Peapack-Gladstone Financial (PGC) perform in Q1 2026?

Peapack-Gladstone reported net income of $14.2 million, or $0.80 per diluted share, for Q1 2026. This compares to $12.2 million, or $0.69, in the prior quarter and $7.6 million, or $0.43, in Q1 2025, reflecting strong earnings growth.

What were Peapack-Gladstone Financial (PGC) key revenue and margin metrics in Q1 2026?

Total revenue reached $82.5 million in Q1 2026, driven by net interest income of $59.9 million. Net interest margin expanded to 3.26%, up from 3.08% in Q4 2025 and 2.68% in Q1 2025, highlighting improved spreads and funding mix.

How did loans and deposits change for Peapack-Gladstone Financial (PGC) in Q1 2026?

Total loans increased to $6.4 billion at March 31, 2026, up 12% year-over-year, while deposits reached $6.8 billion, up 9% year-over-year. Growth was supported by commercial lending and strong noninterest-bearing deposit inflows.

What is the asset quality profile of Peapack-Gladstone Financial (PGC) after Q1 2026?

Nonperforming assets declined to $59.3 million, or 0.77% of total assets, at March 31, 2026, down from $68.2 million, or 0.91%, at December 31, 2025. The allowance for credit losses stood at $67.0 million, or 1.04% of total loans.

What capital actions did Peapack-Gladstone Financial (PGC) take in Q1 2026?

The company redeemed $100.0 million of subordinated debt and completed a $30.0 million private placement of 6.00% Series B Non-Cumulative Convertible Preferred Stock. These steps enhanced capital quality and supported future balance sheet growth.

How important is wealth management to Peapack-Gladstone Financial (PGC)?

Wealth management is a significant contributor, with $13.1 billion in assets under management and administration as of March 31, 2026. The segment generated $16.5 million of fee income in Q1 2026, representing about 20% of total revenue.

Did Peapack-Gladstone Financial (PGC) declare a dividend for Q1 2026?

Yes. On March 26, 2026, the company declared a cash dividend of $0.05 per share, payable on May 21, 2026, to shareholders of record on May 7, 2026, continuing its practice of returning cash to common shareholders.

Filing Exhibits & Attachments

3 documents

Press Releases

Other Documents