Peapack-Gladstone Financial Corporation Reports Third Quarter Financial Results
BEDMINSTER, N.J., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the "Company ") announced its third quarter 2026 financial results.
This earnings release should be read in conjunction with the Company’s Q3 2026 Investor Update, a copy of which is available on our website atwww.peapackprivate.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission atwww.sec.gov.
The Company reported third quarter 2026 financial results that reflect continued execution of its private banking strategy and earnings momentum. Total revenue increased 24% year-over-year to $87.5 million, representing the Company 's tenth consecutive quarter of revenue growth, as net interest income increased 33% to $67.5 million and net interest margin expanded to 3.34%. Wealth management fee income of $17.3 million represented 20% of total revenue. At the same time, operating expenses increased only 5% year-over-year and declined on a linked-quarter basis, producing another quarter of meaningful positive operating leverage. These results reflect the maturation of the Company 's strategic investments across the Metropolitan New York market and reinforce management 's confidence in the long-term earnings power of the franchise. The Company continued to generate relationship-based balance sheet growth, with total loans reaching $7.1 billion and deposits reaching $7.4 billion at September 30, 2026.
Douglas L. Kennedy, President and CEO stated, “Our investments in experienced teams across New York City, Westchester and Long Island are translating into deeper client relationships and strong loan and deposit growth. We have built the capabilities and geographic presence to serve more of our clients’ financial needs, and the earnings contribution from that platform continues to grow. "
Mr. Kennedy added, "We enter the fourth quarter with strong pipelines and confidence in our teams. Our focus is on increasing productivity across the platform we have built, maintaining pricing and expense discipline, and translating continued relationship growth into higher returns. Credit and capital discipline remain central to that execution.”
Our third quarter results reflect continued momentum and sustainability in delivering enhanced shareholder value. The continued growth in net interest income and expansion in net interest margin, together with disciplined expense management, led to net income available to common shareholders of $18.5 million, or $0.99 per diluted share for the third quarter, compared to $15.8 million, or $0.86 per diluted share, for the linked quarter and $9.6 million, or $0.54 per diluted share for the quarter ended September 30, 2025. Net income available to common shareholders increased 17% on a linked-quarter basis, and diluted earnings per share increased 83% year-over-year. Operating expenses declined 1% sequentially to $55.1 million; the GAAP efficiency ratio improved 166 basis points to 63.03%. Asset quality also improved, with nonperforming assets declining 20% sequentially to $55.8 million, or 0.68% of total assets. Tangible book value per share increased 6% year-over-year to $36.24 at September 30, 2026.
During the first quarter the Company announced a commitment by Strategic Value Bank Partners to purchase up to $50 million of convertible 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. Based on this quarter’s results and projected growth rates, we elected to issue the remaining $20 million of our 6% non-cumulative perpetual convertible preferred stock on July 24, 2026.
Third Quarter Highlights:
- Net income available to common shareholders of $18.5 million, or $0.99 per diluted share
- Total revenue of $87.5 million, representing the tenth consecutive quarter of revenue growth
- Net interest income: $67.5 million, up 6% compared to the linked quarter and 33% year-over-year
- Net interest margin: 3.34%, an increase of two basis points compared to the linked quarter and 53 basis points year-over-year
- Loan growth: $7.1 billion in total loans, an increase of $1.1 billion year-over-year
- Deposits: $7.4 billion at September 30, 2026, an increase of $796 million year-over-year
- Wealth management: $13.6 billion in assets under management and administration, up 6% year-over-year
- Wealth management fee income: $17.3 million or 20% of total revenue
- Shareholders ' equity: $735.6 million at September 30, 2026, an increase of $93 million year-over-year
- Tangible book value per share increased 6% year-over-year to $36.24. Book value per share increased 6% year-over-year to $38.67
| Key Financial Metrics | Q3 2026 | Q2 2026 | Q3 2025 | |||||||||
| Net income available to common shareholders ($ millions) | $ | 18.5 | $ | 15.8 | $ | 9.6 | ||||||
| Diluted EPS | $ | 0.99 | $ | 0.86 | $ | 0.54 | ||||||
| Net interest income ($ millions) | $ | 67.5 | $ | 63.9 | $ | 50.6 | ||||||
| Net interest margin | 3.34 | % | 3.32 | % | 2.81 | % | ||||||
| Total revenue ($ millions) | $ | 87.5 | $ | 86.1 | $ | 70.7 | ||||||
| Operating expenses ($ millions) | $ | 55.1 | $ | 55.7 | $ | 52.3 | ||||||
| Pre-provision net revenue ($ millions) | $ | 32.3 | $ | 30.4 | $ | 18.4 | ||||||
| Return on average assets (annualized) | 0.93 | % | 0.81 | % | 0.53 | % | ||||||
| Return on average common equity (annualized) | 10.70 | % | 9.34 | % | 6.12 | % | ||||||
Earnings and Operating Leverage
The Company generated strong revenue growth of 24% year-over-year, with total revenue of $87.5 million for the third quarter of 2026, compared to $86.1 million for the second quarter of 2026 and $70.7 million for the third quarter of 2025. Revenue growth was primarily attributable to the consistent improvement in net interest income over the last twelve months. The increase in revenue and continued expense discipline translated into higher earnings driving positive operating leverage and improved profitability.
Operating expenses decreased to $55.1 million for the third quarter of 2026, compared to $55.7 million for the second quarter of 2026. Operating expenses were $52.3 million for the third quarter of 2025. The GAAP efficiency ratio improved for an eighth consecutive quarter to approximately 63%.
Net Interest Income and Margin
Net interest income totaled $67.5 million for the third quarter of 2026, an increase of $3.6 million, or 6%, from the second quarter of 2026 and an increase of $16.9 million, or 33%, from the third quarter of 2025. Net interest margin expanded to 3.34% compared to 3.32% in the prior quarter and 2.81% in the third quarter of 2025, continuing the upward trend over the past several quarters. This improvement in net interest income and net interest margin was primarily driven by balance sheet repositioning, disciplined pricing and improved earning-asset yields.
Loans / Commercial Banking
Total loans increased $403 million, or 24% on an annualized basis, to $7.1 billion at September 30, 2026, compared to $6.7 billion at June 30, 2026. Loans have grown $1.1 billion year-over-year. Growth remained concentrated in our core areas of strength, particularly C&I and commercial real estate. Commercial mortgage activity was bolstered by sponsor demand for stabilized assets and refinancing activity. C&I growth was driven by business expansion and capital investment. Total C&I loans and leases at September 30, 2026 were $3.1 billion, or 43% of the total loan portfolio.
Mr. Kennedy noted, “The strength of our loan growth is measured not only by its pace, but also by its quality. Our bankers continue to onboard core relationships, delivering a coordinated approach that integrates commercial banking, personal banking, treasury management and wealth management through a single point of contact. This relationship model deepens client engagement and enables us to compete effectively with much larger institutions. "
Wealth Management
John Babcock, President of the Bank’s Wealth Management Division, stated, “Wealth Management generated $346 million of gross client inflows during the quarter, reflecting the strength of our client relationships and the breadth of our advisory platform. We continue to deepen those relationships by bringing investment management, trust, tax, financial planning and other specialized services together with the Bank’s lending and liquidity capabilities to serve clients and their families over time.”
Funding / Liquidity / Interest Rate Risk Management
Total deposits increased $301 million, or 17% annualized, to $7.4 billion at September 30, 2026, from $7.1 billion at June 30, 2026. Relationship-based deposits have created solid franchise value for our Company. Noninterest-bearing deposits increased $232 million year-over-year, representing 29% of total deposit growth over the last twelve months and a meaningful component of total funding, supporting both margin expansion and balance sheet stability. In addition, short-term borrowings increased $206 million during the third quarter of 2026 to supplement deposit funding and support continued loan growth, while maintaining appropriate liquidity levels.
The Company’s liquidity profile remains strong with a loan-to-deposit ratio of 96%. At September 30, 2026, the Company’s balance sheet liquidity totaled $1.1 billion, or 13% of total assets. The Company maintains additional liquidity resources of approximately $4.2 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 $5.3 billion at September 30, 2026, which amounted to 214% of the total uninsured/uncollateralized deposits currently on the Company 's balance sheet. The Company continues to maintain a well-diversified funding base with a high level of operating deposits and no reliance on brokered funding.
Income Taxes
The effective tax rate was 20.5% for the September 2026 quarter, compared to 28.4% for the June 2026 quarter and 29.2% for the quarter ended September 30, 2025. The effective tax rate for the third quarter of 2026 included a discrete income tax benefit of approximately $1.8 million related to the purchase of transferable production tax credits.
Asset Quality / Provision for Credit Losses
Nonperforming assets decreased to $57.8 million, or 0.68% of total assets compared to $72.2 million, or 0.91% of total assets, at June 30, 2026. The decrease in nonperforming assets during the third quarter of 2026 reflects the Company 's concentrated effort to resolve problem loans. Loans past due 30 through 89 days and still accruing decreased to $39.4 million, or 0.56% of total loans at September 30, 2026, compared to $48.1 million, or 0.72% of total loans, at June 30, 2026.
Mr. Kennedy noted, “During the quarter, we made progress in reducing nonperforming assets and delinquent loan balances, while loans subject to special mention and classified also declined. These trends reflect our active management of individual credit situations and the progress we are making in resolving them. We remain focused on disciplined underwriting, proactive portfolio oversight and maintaining reserve coverage that is appropriate for the risk profile of the portfolio. "
The provision for credit losses totaled $8.5 million for the third quarter of 2026, compared to $8.1 million for the second quarter of 2026 and $4.8 million for the September 30, 2025 quarter. During the third quarter of 2026, approximately $5.0 million of the provision was attributable to loan growth of $403 million while $4.6 million related to increases in specific reserves, partially offset by improved economic factors.
At September 30, 2026, the allowance for credit losses ( "ACL ") was $73.0 million (1.03% of total loans), compared to $69.2 million (1.04% of total loans) at June 30, 2026. The increase in the ACL was due to the provision for credit losses of $8.5 million, partially offset by net charge-offs of $4.7 million. Charge-offs consisted of $1.7 million during the period related to two multifamily properties and $2.8 million related to seven commercial and industrial loans. These charge-offs were partially offset by recoveries of $25,000 during the third quarter of 2026.
Capital
The Company’s capital position remained solid during the third quarter of 2026 and continued to benefit from earnings generation. Based on our continued growth, we elected in July to issue the remaining $20 million of our 6% non-cumulative perpetual convertible preferred stock available under the $50 million commitment announced in the first quarter. Based on current results, projected growth and capital needs, management determined that completing the remaining issuance was appropriate to support continued relationship-based balance sheet growth, while maintaining prudent capital levels.
To further support capital, the Company has reinstated the feature in our Dividend Reinvestment Plan which will allow participants to purchase shares of our common stock through the Plan at a 3% discount to the current market price. This enhancement will become effective beginning with the Company 's next dividend payment in November 2026.
Tangible book value per share increased 6% to $36.24 per share at September 30, 2026 from $34.10 at September 30, 2025. Book value per share increased 6% to $38.67 per share at September 30, 2026 compared to $36.62 at September 30, 2025.
As of September 30, 2026, the Company and the Bank maintained strong regulatory capital ratios. The Tier 1 Leverage Ratio at September 30, 2026 was 9.13% for the Bank and 9.29% for the Company, while the Common Equity Tier 1 Ratio was 10.59% for the Bank and 10.06% for the Company. Where applicable, such ratios remain well above regulatory well capitalized standards.
Investor Conference Call
Peapack-Gladstone Financial Corporation 's CEO Douglas Kennedy will host a conference call with investors and the financial community on October 28, 2026 at 11:00 a.m. (ET) to review third quarter 2026 financial results. The live audio webcast and presentation slides will be available using the following link: https://events.q4inc.com/attendee/855592172 or join the toll-free teleconference by dialing 1-833-461-5787 and entering access code 855 592 172. 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 $8.5 billion and assets under management and/or administration of $13.6 billion as of September 30, 2026. Founded in 1921, Peapack Private Bank & Trust is a boutique private bank serving successful individuals, families, business owners, family offices, and their trusted advisors through personalized relationships and bespoke banking, lending, wealth management, investment banking, and trust solutions. Distinguished by a relationship-first approach, every client is supported by a dedicated relationship manager who provides thoughtful guidance, seamless coordination, and access to the Bank 's full breadth of expertise. The Bank 's Wealth Management division delivers sophisticated investment management, fiduciary, tax, estate, and financial planning strategies designed to help clients preserve, grow, and transfer wealth across generations. Defined by discretion, exceptional service, and enduring relationships, Peapack Private is committed to helping clients achieve their financial goals while protecting the legacy they have built. For more information, visit www.peapackprivate.com.
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, the shape of the yield curve 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, trade restrictions and retaliatory measures impacting our borrowers and the broader economy;
- the impact of any federal government shutdown, debt ceiling impasses or fiscal uncertainty;
- the failure to maintain current technologies and/or to successfully implement future information technology enhancements and the operational risks associated with the adoption of artificial intelligence and other emerging technologies;
- risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors;
- 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;
- 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 attract and 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.
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)
| PEAPACK-GLADSTONE FINANCIAL CORPORATION SELECTED CONSOLIDATED FINANCIAL DATA (Dollars in Thousands, except per share data) (Unaudited) | ||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||
| Sept 30, | June 30, | March 31, | Dec 31, | Sept 30, | ||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||
| Income Statement Data: | ||||||||||||||||||||
| Interest income | $ | 106,871 | $ | 100,210 | $ | 95,049 | $ | 93,984 | $ | 92,545 | ||||||||||
| Interest expense | 39,379 | 36,289 | 35,153 | 37,442 | 41,972 | |||||||||||||||
| Net interest income | 67,492 | 63,921 | 59,896 | 56,542 | 50,573 | |||||||||||||||
| Wealth management fee income | 17,279 | 17,220 | 16,503 | 16,064 | 15,798 | |||||||||||||||
| Service charges and fees | 1,443 | 1,390 | 1,359 | 1,317 | 1,184 | |||||||||||||||
| Capital markets revenue | 131 | 925 | 544 | 873 | 901 | |||||||||||||||
| Other income | 1,143 | 2,596 | 4,191 | 3,405 | 2,238 | |||||||||||||||
| Total other income | 19,996 | 22,131 | 22,597 | 21,659 | 20,121 | |||||||||||||||
| Total revenue | 87,488 | 86,052 | 82,493 | 78,201 | 70,694 | |||||||||||||||
| Compensation expense | 29,879 | 29,352 | 29,782 | 28,399 | 28,613 | |||||||||||||||
| Benefits expense | 9,427 | 10,250 | 9,583 | 8,397 | 8,143 | |||||||||||||||
| Premises and equipment | 7,190 | 7,009 | 6,858 | 7,142 | 6,676 | |||||||||||||||
| FDIC insurance expense | 1,557 | 1,495 | 1,388 | 1,565 | 1,345 | |||||||||||||||
| Professional and legal fees | 1,509 | 1,532 | 1,554 | 1,868 | 1,972 | |||||||||||||||
| Trust department expense | 1,186 | 1,189 | 1,180 | 1,139 | 1,111 | |||||||||||||||
| Loan expense | 430 | 687 | 556 | 905 | 475 | |||||||||||||||
| Advertising | 377 | 468 | 267 | 329 | 651 | |||||||||||||||
| Other expenses | 3,593 | 3,685 | 4,272 | 3,794 | 3,311 | |||||||||||||||
| Total operating expenses | 55,148 | 55,667 | 55,440 | 53,538 | 52,297 | |||||||||||||||
| Pretax income before provision for credit losses | 32,340 | 30,385 | 27,053 | 24,663 | 18,397 | |||||||||||||||
| Provision for credit losses | 8,499 | 8,088 | 7,327 | 7,671 | 4,790 | |||||||||||||||
| Income before income taxes | 23,841 | 22,297 | 19,726 | 16,992 | 13,607 | |||||||||||||||
| Income tax expense | 4,895 | 6,325 | 5,573 | 4,833 | 3,976 | |||||||||||||||
| Net Income | 18,946 | 15,972 | 14,153 | 12,159 | 9,631 | |||||||||||||||
| Dividends on preferred stock | 495 | 195 | — | — | — | |||||||||||||||
| Net income available to common shareholders | $ | 18,451 | $ | 15,777 | $ | 14,153 | $ | 12,159 | $ | 9,631 | ||||||||||
| Per Common Share Data: | ||||||||||||||||||||
| Earnings per share (basic) | $ | 1.04 | $ | 0.89 | $ | 0.80 | $ | 0.69 | $ | 0.55 | ||||||||||
| Earnings per share (diluted) | 0.99 | 0.86 | 0.80 | 0.69 | 0.54 | |||||||||||||||
| Weighted average number of commonshares outstanding: | ||||||||||||||||||||
| Basic | 17,727,852 | 17,717,883 | 17,585,846 | 17,558,019 | 17,576,899 | |||||||||||||||
| Diluted | 19,069,474 | 18,625,408 | 17,760,678 | 17,705,355 | 17,686,979 | |||||||||||||||
| Performance Ratios: | ||||||||||||||||||||
| Return on average assets annualized (ROAA) | 0.93 | % | 0.81 | % | 0.74 | % | 0.65 | % | 0.53 | % | ||||||||||
| Return on average common equity annualized (ROACE) | 10.70 | % | 9.34 | % | 8.53 | % | 7.51 | % | 6.12 | % | ||||||||||
| Return on average tangible common equity annualized (ROATCE) (A) | 11.41 | % | 9.98 | % | 9.13 | % | 8.06 | % | 6.59 | % | ||||||||||
| Net interest margin (tax-equivalent basis) | 3.34 | % | 3.32 | % | 3.26 | % | 3.08 | % | 2.81 | % | ||||||||||
| GAAP efficiency ratio (B) | 63.03 | % | 64.69 | % | 67.21 | % | 68.46 | % | 73.98 | % | ||||||||||
| Operating expenses / average assets annualized | 2.70 | % | 2.83 | % | 2.92 | % | 2.88 | % | 2.87 | % |
(A) Return on average tangible common equity is calculated by dividing annualized net income available to common shareholders by average tangible common equity. See non-GAAP financial measures reconciliation included in these tables.
(B) Calculated as total operating expenses as a percentage of total revenue. For non-GAAP efficiency ratio, see the non-GAAP financial measures reconciliation included in these tables.
| PEAPACK-GLADSTONE FINANCIAL CORPORATION SELECTED CONSOLIDATED FINANCIAL DATA (Dollars in Thousands, except per share data) (Unaudited) | ||||||||||||||||
| For the Nine Months Ended | ||||||||||||||||
| September 30, | Change | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| Income Statement Data: | ||||||||||||||||
| Interest income | $ | 302,130 | $ | 268,541 | $ | 33,589 | 13 | % | ||||||||
| Interest expense | 110,821 | 124,173 | (13,352 | ) | -11 | % | ||||||||||
| Net interest income | 191,309 | 144,368 | 46,941 | 33 | % | |||||||||||
| Wealth management fee income | 51,002 | 47,176 | 3,826 | 8 | % | |||||||||||
| Service charges and fees | 4,192 | 3,490 | 702 | 20 | % | |||||||||||
| Capital markets revenue | 1,600 | 2,155 | (555 | ) | -26 | % | ||||||||||
| Other income | 7,930 | 7,605 | 325 | 4 | % | |||||||||||
| Total other income | 64,724 | 60,426 | 4,298 | 7 | % | |||||||||||
| Total revenue | 256,033 | 204,794 | 51,239 | 25 | % | |||||||||||
| Compensation expense | 89,013 | 83,160 | 5,853 | 7 | % | |||||||||||
| Benefits expense | 29,260 | 25,536 | 3,724 | 15 | % | |||||||||||
| Premises and equipment | 21,057 | 19,471 | 1,586 | 8 | % | |||||||||||
| FDIC insurance expense | 4,440 | 3,245 | 1,195 | 37 | % | |||||||||||
| Professional and legal fees | 4,595 | 4,807 | (212 | ) | -4 | % | ||||||||||
| Trust department expense | 3,555 | 3,246 | 309 | 10 | % | |||||||||||
| Loan expense | 1,673 | 1,847 | (174 | ) | -9 | % | ||||||||||
| Advertising | 1,112 | 1,724 | (612 | ) | -35 | % | ||||||||||
| Other expenses | 11,550 | 10,594 | 956 | 9 | % | |||||||||||
| Total operating expenses | 166,255 | 153,630 | 12,625 | 8 | % | |||||||||||
| Pretax income before provision for credit losses | 89,778 | 51,164 | 38,614 | 75 | % | |||||||||||
| Provision for credit losses | 23,914 | 15,847 | 8,067 | 51 | % | |||||||||||
| Income before income taxes | 65,864 | 35,317 | 30,547 | 86 | % | |||||||||||
| Income tax expense | 16,793 | 10,150 | 6,643 | 65 | % | |||||||||||
| Net Income | 49,071 | 25,167 | 23,904 | 95 | % | |||||||||||
| Dividends on preferred stock | 690 | — | 690 | N/A | ||||||||||||
| Net income available to common shareholders | $ | 48,381 | $ | 25,167 | $ | 23,214 | 92 | % | ||||||||
| Per Common Share Data: | ||||||||||||||||
| Earnings per share (basic) | $ | 2.74 | $ | 1.43 | $ | 1.31 | 92 | % | ||||||||
| Earnings per share (diluted) | 2.65 | 1.42 | 1.23 | 87 | % | |||||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 17,677,714 | 17,630,517 | 47,197 | 0 | % | |||||||||||
| Diluted | 18,500,371 | 17,763,871 | 736,500 | 4 | % | |||||||||||
| Performance Ratios: | ||||||||||||||||
| Return on average assets (ROAA) | 0.83 | % | 0.47 | % | 0.36 | % | 77 | % | ||||||||
| Return on average common equity (ROAE) | 9.54 | % | 5.41 | % | 4.13 | % | 76 | % | ||||||||
| Return on average tangible common equity (ROATCE) (A) | 10.19 | % | 5.83 | % | 4.36 | % | 75 | % | ||||||||
| Net interest margin (tax-equivalent basis) | 3.30 | % | 2.76 | % | 0.54 | % | 20 | % | ||||||||
| GAAP efficiency ratio (B) | 64.93 | % | 75.02 | % | (10.09 | )% | -13 | % | ||||||||
| Operating expenses / average assets | 2.81 | % | 2.87 | % | (0.06 | )% | -2 | % |
(A) Return on average tangible common equity is calculated by dividing annualized net income available to common shareholders by average tangible common equity. See non-GAAP financial measures reconciliation included in these tables.
(B) Calculated as total operating expenses as a percentage of total revenue. For non-GAAP efficiency ratio, see the non-GAAP financial measures reconciliation included in these tables.
| PEAPACK-GLADSTONE FINANCIAL CORPORATION CONSOLIDATED STATEMENTS OF CONDITION (Dollars in Thousands) (Unaudited) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| Sept 30, | June 30, | March 31, | Dec 31, | Sept 30, | ||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 9,039 | $ | 8,388 | $ | 9,220 | $ | 8,712 | $ | 8,514 | ||||||||||
| Interest-earning deposits | 259,843 | 245,506 | 244,194 | 179,108 | 338,672 | |||||||||||||||
| Total cash and cash equivalents | 268,882 | 253,894 | 253,414 | 187,820 | 347,186 | |||||||||||||||
| Securities available for sale | 811,994 | 752,440 | 710,046 | 774,203 | 756,578 | |||||||||||||||
| Securities held to maturity | 77,350 | 78,560 | 79,478 | 95,862 | 97,414 | |||||||||||||||
| CRA equity security, at fair value | 12,818 | 13,320 | 13,375 | 13,459 | 13,403 | |||||||||||||||
| FHLB and FRB stock, at cost (A) | 22,199 | 12,931 | 14,170 | 14,605 | 11,387 | |||||||||||||||
| Residential mortgage | 670,985 | 679,234 | 662,949 | 648,216 | 649,523 | |||||||||||||||
| Multifamily mortgage | 1,832,595 | 1,804,380 | 1,824,882 | 1,862,592 | 1,796,533 | |||||||||||||||
| Commercial mortgage | 1,137,877 | 981,896 | 887,712 | 774,428 | 689,166 | |||||||||||||||
| Commercial and industrial loans | 3,071,232 | 2,935,914 | 2,797,352 | 2,726,379 | 2,662,661 | |||||||||||||||
| Consumer loans | 311,167 | 220,961 | 210,731 | 187,360 | 171,811 | |||||||||||||||
| Home equity lines of credit | 56,702 | 55,136 | 58,194 | 59,306 | 57,166 | |||||||||||||||
| Other loans | 1,128 | 1,108 | 860 | 342 | 405 | |||||||||||||||
| Total loans | 7,081,686 | 6,678,629 | 6,442,680 | 6,258,623 | 6,027,265 | |||||||||||||||
| Less: Allowance for credit losses | 72,951 | 69,167 | 67,026 | 71,039 | 68,642 | |||||||||||||||
| Net loans | 7,008,735 | 6,609,462 | 6,375,654 | 6,187,584 | 5,958,623 | |||||||||||||||
| Premises and equipment | 41,983 | 40,830 | 39,322 | 39,164 | 37,756 | |||||||||||||||
| Other real estate owned | 96 | 908 | — | — | — | |||||||||||||||
| Accrued interest receivable | 35,297 | 34,060 | 33,115 | 31,971 | 34,120 | |||||||||||||||
| Bank owned life insurance | 48,266 | 48,071 | 47,896 | 47,761 | 48,381 | |||||||||||||||
| Goodwill and other intangible assets | 43,116 | 43,352 | 43,595 | 43,839 | 44,111 | |||||||||||||||
| Finance lease right-of-use assets | 739 | 774 | 809 | 844 | 879 | |||||||||||||||
| Operating lease right-of-use assets | 43,399 | 38,098 | 38,079 | 39,886 | 37,692 | |||||||||||||||
| Other assets | 82,672 | 43,593 | 50,012 | 49,411 | 52,112 | |||||||||||||||
| TOTAL ASSETS | $ | 8,497,546 | $ | 7,970,293 | $ | 7,698,965 | $ | 7,526,409 | $ | 7,439,642 | ||||||||||
| LIABILITIES | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 1,555,544 | $ | 1,624,244 | $ | 1,544,515 | $ | 1,428,745 | $ | 1,323,492 | ||||||||||
| Interest-bearing demand deposits | 3,658,620 | 3,497,096 | 3,533,203 | 3,448,497 | 3,509,403 | |||||||||||||||
| Savings | 103,933 | 111,710 | 114,955 | 105,123 | 104,524 | |||||||||||||||
| Money market accounts | 1,670,251 | 1,448,916 | 1,222,405 | 1,197,995 | 1,226,506 | |||||||||||||||
| Certificates of deposit – Retail | 370,034 | 375,633 | 411,688 | 408,219 | 397,338 | |||||||||||||||
| Certificates of deposit – Listing Service | — | — | — | 400 | 899 | |||||||||||||||
| Total deposits | 7,358,382 | 7,057,599 | 6,826,766 | 6,588,979 | 6,562,162 | |||||||||||||||
| Short-term borrowings | 281,119 | 74,854 | 63,830 | 73,267 | — | |||||||||||||||
| Finance lease liability | 1,060 | 1,103 | 1,145 | 1,186 | 1,227 | |||||||||||||||
| Operating lease liability | 46,804 | 41,493 | 41,458 | 43,294 | 41,139 | |||||||||||||||
| Subordinated debt, net | — | — | — | 99,030 | 98,981 | |||||||||||||||
| Due to brokers | — | 9,642 | — | — | 25,125 | |||||||||||||||
| Other liabilities | 74,555 | 69,817 | 66,562 | 62,447 | 68,458 | |||||||||||||||
| TOTAL LIABILITIES | 7,761,920 | 7,254,508 | 6,999,761 | 6,868,203 | 6,797,092 | |||||||||||||||
| Shareholders’ equity | 735,626 | 715,785 | 699,204 | 658,206 | 642,550 | |||||||||||||||
| TOTAL LIABILITIES AND | ||||||||||||||||||||
| SHAREHOLDERS’ EQUITY | $ | 8,497,546 | $ | 7,970,293 | $ | 7,698,965 | $ | 7,526,409 | $ | 7,439,642 | ||||||||||
| Assets under management and / or administration atPeapack Private Bank & Trust 's Wealth ManagementDivision (market value, not included above-dollars in billions) | $ | 13.6 | $ | 13.9 | $ | 13.1 | $ | 13.1 | $ | 12.9 |
(A) FHLB means "Federal Home Loan Bank " and FRB means "Federal Reserve Bank. "
| PEAPACK-GLADSTONE FINANCIAL CORPORATION SELECTED BALANCE SHEET DATA (Dollars in Thousands) (Unaudited) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| Sept 30, | June 30, | March 31, | Dec 31, | Sept 30, | ||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||
| Asset Quality: | ||||||||||||||||||||
| Loans past due over 90 days and still accruing (A) | $ | 200 | $ | 3,300 | $ | — | $ | — | $ | — | ||||||||||
| Nonaccrual loans | 57,535 | 68,034 | 59,321 | 68,243 | 84,142 | |||||||||||||||
| Other real estate owned | 96 | 908 | — | — | — | |||||||||||||||
| Total nonperforming assets | $ | 57,831 | $ | 72,242 | $ | 59,321 | $ | 68,243 | $ | 84,142 | ||||||||||
| Nonperforming loans to total loans | 0.82 | % | 1.07 | % | 0.92 | % | 1.09 | % | 1.40 | % | ||||||||||
| Nonperforming assets to total assets | 0.68 | % | 0.91 | % | 0.77 | % | 0.91 | % | 1.13 | % | ||||||||||
| Performing modifications (B)(C) | $ | 38,388 | $ | 27,268 | $ | 85,835 | $ | 95,266 | $ | 101,501 | ||||||||||
| Loans past due 30 through 89 days and still accruing (D) | $ | 39,379 | $ | 48,080 | $ | 47,053 | $ | 26,555 | $ | 28,817 | ||||||||||
| Loans subject to special mention | $ | 56,380 | $ | 59,832 | $ | 75,935 | $ | 51,027 | $ | 56,534 | ||||||||||
| Classified loans | $ | 89,498 | $ | 97,713 | $ | 90,583 | $ | 118,912 | $ | 134,982 | ||||||||||
| Individually evaluated loans | $ | 57,535 | $ | 68,034 | $ | 59,321 | $ | 68,243 | $ | 84,142 | ||||||||||
| Allowance for credit losses ( "ACL "): | ||||||||||||||||||||
| Beginning of quarter | $ | 69,167 | $ | 67,026 | $ | 71,039 | $ | 68,642 | $ | 81,770 | ||||||||||
| Provision for credit losses (E) | 8,436 | 8,012 | 7,322 | 7,659 | 4,871 | |||||||||||||||
| (Charge-offs)/recoveries, net (F) | (4,652 | ) | (5,871 | ) | (11,335 | ) | (5,262 | ) | (17,999 | ) | ||||||||||
| End of quarter | $ | 72,951 | $ | 69,167 | $ | 67,026 | $ | 71,039 | $ | 68,642 | ||||||||||
| ACL to nonperforming loans | 126.35 | % | 96.96 | % | 112.99 | % | 104.10 | % | 81.58 | % | ||||||||||
| ACL to total loans | 1.03 | % | 1.04 | % | 1.04 | % | 1.14 | % | 1.14 | % | ||||||||||
| Collectively evaluated ACL to total loans (G) | 0.97 | % | 0.97 | % | 0.94 | % | 0.94 | % | 0.95 | % |
(A) Related to one matured, well secured multifamily loan. Closing is pending resolution of certain legal matters at June 30, 2026.
(B) Amounts reflect modifications that are paying according to modified terms.
(C) Excludes modifications included in nonaccrual loans of $24.7 million at September 30, 2026, $21.6 million at June 30, 2026, $19.6 million at March 31, 2026, $36.0 million at December 31, 2025 and $37.6 million at September 30, 2025.
(D) Includes one equipment financing relationship of $10.3 million that was in the process of restructuring at June 30, 2026.
(E) Excludes provision of $63,000 at September 30, 2026, provision of $76,000 at June 30, 2026, provision of $5,000 at March 31, 2026, provision of $12,000 at December 31, 2025 and a credit of $81,000 at September 30, 2025.
(F) Includes charge-offs of $1.7 million related to two multifamily loans and $2.8 million related to seven commercial and industrial loans for the quarter ended September 30, 2026. Includes charge-offs of $4.8 million related to one multifamily loan and $995,000 related to one commercial mortgage for the quarter ended June 30, 2026. 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.
(G) Total ACL less reserves to loans individually evaluated equals collectively evaluated ACL.
| PEAPACK-GLADSTONE FINANCIAL CORPORATION SELECTED BALANCE SHEET DATA (Dollars in Thousands) (Unaudited) | ||||||||||||
| As of | ||||||||||||
| September 30, | December 31, | September 30, | ||||||||||
| 2026 | 2025 | 2025 | ||||||||||
| Capital Adequacy | ||||||||||||
| Common equity to total assets (A) | 8.07 | % | 8.75 | % | 8.64 | % | ||||||
| Tangible common equity to tangible assets (B) | 7.60 | % | 8.21 | % | 8.09 | % | ||||||
| Book value per share (C) | $ | 38.67 | $ | 37.49 | $ | 36.62 | ||||||
| Tangible book value per share (D) | $ | 36.24 | $ | 34.99 | $ | 34.10 | ||||||
(A) Common equity to total assets is calculated as total shareholders’ equity, less preferred stock, as a percentage of total assets at quarter end.
(B) Tangible common equity is calculated by subtracting goodwill, other intangible assets and preferred stock from shareholders ' equity. Tangible assets is calculated by subtracting the balance of goodwill and other intangible assets from total assets. Tangible common equity as a percentage of tangible assets at quarter end is calculated by dividing tangible common 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, less preferred stock, by quarter end common shares outstanding.
(D) Tangible book value per share excludes goodwill and other intangible assets. Tangible book value per share is calculated by dividing tangible common equity by quarter end common shares outstanding. See Non-GAAP financial measures reconciliation tables.
| As of | |||||||||||||||||||||
| September 30, | December 31, | September 30, | |||||||||||||||||||
| 2026 | 2025 | 2025 | |||||||||||||||||||
| Regulatory Capital – Holding Company | |||||||||||||||||||||
| Tier I leverage | $ | 760,887 | 9.29 | % | $ | 660,696 | 8.87 | % | $ | 647,549 | 8.86 | % | |||||||||
| Tier I capital to risk-weighted assets | 760,887 | 10.77 | 660,696 | 10.33 | 647,549 | 10.47 | |||||||||||||||
| Common equity tier I capital ratio to risk-weighted assets | 710,828 | 10.06 | 660,637 | 10.33 | 647,543 | 10.47 | |||||||||||||||
| Tier I & II capital to risk-weighted assets | 834,593 | 11.81 | 811,375 | 12.68 | 815,770 | 13.20 | |||||||||||||||
| Regulatory Capital – Bank | |||||||||||||||||||||
| Tier I leverage (E) | $ | 747,076 | 9.13 | % | $ | 735,931 | 9.89 | % | $ | 722,684 | 9.89 | % | |||||||||
| Tier I capital to risk-weighted assets (F) | 747,076 | 10.59 | 735,931 | 11.52 | 722,684 | 11.70 | |||||||||||||||
| Common equity tier I capital ratio to risk-weighted assets (G) | 747,017 | 10.59 | 735,872 | 11.52 | 722,678 | 11.70 | |||||||||||||||
| Tier I & II capital to risk-weighted assets (H) | 820,782 | 11.63 | 807,580 | 12.64 | 791,924 | 12.82 |
(E) Regulatory well capitalized standard (including capital conservation buffer) = 4.00% ($327 million)
(F) Regulatory well capitalized standard (including capital conservation buffer) = 8.50% ($600 million)
(G) Regulatory well capitalized standard (including capital conservation buffer) = 7.00% ($494 million)
(H) Regulatory well capitalized standard (including capital conservation buffer) = 10.50% ($741 million)
| PEAPACK-GLADSTONE FINANCIAL CORPORATION LOANS CLOSED (Dollars in Thousands) (Unaudited) | ||||||||||||||||||||
| For the Quarters Ended | ||||||||||||||||||||
| Sept 30, | June 30, | March 31, | Dec 31, | Sept 30, | ||||||||||||||||
| 2026 | 2026 | 2026 | 2025 | 2025 | ||||||||||||||||
| Residential loans retained | $ | 25,698 | $ | 52,253 | $ | 29,376 | $ | 18,993 | $ | 18,323 | ||||||||||
| Residential loans sold | 2,077 | 4,792 | 4,680 | 2,544 | 445 | |||||||||||||||
| Total residential loans | 27,775 | 57,045 | 34,056 | 21,537 | 18,768 | |||||||||||||||
| Commercial real estate | 183,231 | 136,077 | 138,570 | 130,790 | 78,825 | |||||||||||||||
| Multifamily | 58,895 | 46,500 | 31,825 | 100,611 | 47,991 | |||||||||||||||
| Commercial (C&I) loans (A) (B) | 514,517 | 383,129 | 274,269 | 358,468 | 453,554 | |||||||||||||||
| SBA | — | — | 11,445 | 2,666 | 6,821 | |||||||||||||||
| Wealth lines of credit (A) | 12,450 | 23,255 | 5,225 | 3,925 | 2,700 | |||||||||||||||
| Total commercial loans | 769,093 | 588,961 | 461,334 | 596,460 | 589,891 | |||||||||||||||
| Installment loans | 123,422 | 26,844 | 30,171 | 40,428 | 47,115 | |||||||||||||||
| Home equity lines of credit (A) | 10,394 | 4,369 | 6,638 | 3,929 | 11,755 | |||||||||||||||
| Total loans closed | $ | 930,684 | $ | 677,219 | $ | 532,199 | $ | 662,354 | $ | 667,529 |
(A) Includes loans and lines of credit that closed in the period but not necessarily funded.
(B) Includes equipment finance.
| For the Nine Months Ended | ||||||||
| Sept 30, | Sept 30, | |||||||
| 2026 | 2025 | |||||||
| Residential loans retained | $ | 107,327 | $ | 78,470 | ||||
| Residential loans sold | 11,549 | 6,231 | ||||||
| Total residential loans | 118,876 | 84,701 | ||||||
| Commercial real estate | 457,878 | 150,191 | ||||||
| Multifamily | 137,220 | 128,141 | ||||||
| Commercial (C&I) loans (A) (B) | 1,171,915 | 911,507 | ||||||
| SBA | 11,445 | 19,839 | ||||||
| Wealth lines of credit (A) | 40,930 | 15,000 | ||||||
| Total commercial loans | 1,819,388 | 1,224,678 | ||||||
| Installment loans | 180,437 | 132,220 | ||||||
| Home equity lines of credit (A) | 21,401 | 21,714 | ||||||
| Total loans closed | $ | 2,140,102 | $ | 1,463,313 |
(A) Includes loans and lines of credit that closed in the period but not necessarily funded.
(B) Includes equipment finance.
| PEAPACK-GLADSTONE FINANCIAL CORPORATION AVERAGE BALANCE SHEET (Tax-Equivalent Basis, Dollars in Thousands) (Unaudited) | ||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||
| Average | Income/ | Annualized | Average | Income/ | Annualized | |||||||||||||||||||
| Balance | Expense | Yield | Balance | Expense | Yield | |||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Investments: | ||||||||||||||||||||||||
| Taxable (A) | $ | 939,090 | $ | 7,430 | 3.16 | % | $ | 963,706 | $ | 7,504 | 3.11 | % | ||||||||||||
| Loans (B) (C): | ||||||||||||||||||||||||
| Mortgages | 668,213 | 7,909 | 4.73 | 650,299 | 7,337 | 4.51 | ||||||||||||||||||
| Commercial mortgages | 2,839,401 | 36,229 | 5.06 | 2,458,008 | 28,447 | 4.63 | ||||||||||||||||||
| Commercial | 3,008,999 | 48,106 | 6.39 | 2,586,780 | 42,790 | 6.62 | ||||||||||||||||||
| Commercial construction | 807 | 13 | 6.39 | — | — | — | ||||||||||||||||||
| Installment | 307,122 | 4,753 | 6.14 | 156,471 | 2,718 | 6.95 | ||||||||||||||||||
| Home equity | 55,640 | 962 | 6.86 | 53,781 | 1,020 | 7.59 | ||||||||||||||||||
| Other | 1,033 | 4 | 1.54 | 363 | 5 | 5.43 | ||||||||||||||||||
| Total loans | 6,881,215 | 97,976 | 5.65 | 5,905,702 | 82,317 | 5.58 | ||||||||||||||||||
| Interest-earning deposits | 226,092 | 1,679 | 2.95 | 304,681 | 2,960 | 3.89 | ||||||||||||||||||
| Total interest-earning assets | 8,046,397 | 107,085 | 5.28 | % | 7,174,089 | 92,781 | 5.17 | % | ||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Cash and due from banks | 8,293 | 12,279 | ||||||||||||||||||||||
| Allowance for credit losses | (71,902 | ) | (82,803 | ) | ||||||||||||||||||||
| Premises and equipment | 41,471 | 37,608 | ||||||||||||||||||||||
| Other assets | 132,562 | 136,238 | ||||||||||||||||||||||
| Total noninterest-earning assets | 110,424 | 103,322 | ||||||||||||||||||||||
| Total assets | $ | 8,156,821 | $ | 7,277,411 | ||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| Checking | $ | 3,811,998 | $ | 26,454 | 2.75 | % | $ | 3,640,088 | $ | 29,975 | 3.29 | % | ||||||||||||
| Money markets | 1,315,270 | 8,848 | 2.67 | 1,005,633 | 7,225 | 2.87 | ||||||||||||||||||
| Savings | 106,103 | 197 | 0.74 | 104,777 | 178 | 0.68 | ||||||||||||||||||
| Certificates of deposit – retail | 376,680 | 2,736 | 2.88 | 429,389 | 3,657 | 3.41 | ||||||||||||||||||
| Subtotal interest-bearing deposits | 5,610,051 | 38,235 | 2.70 | 5,179,887 | 41,035 | 3.17 | ||||||||||||||||||
| Interest-bearing demand – brokered | — | — | — | — | — | — | ||||||||||||||||||
| Total interest-bearing deposits | 5,610,051 | 38,235 | 2.70 | 5,179,887 | 41,035 | 3.17 | ||||||||||||||||||
| Borrowings | 111,630 | 1,133 | 4.03 | — | — | — | ||||||||||||||||||
| Capital lease obligation | 1,075 | 11 | 4.06 | 1,242 | 13 | 4.19 | ||||||||||||||||||
| Subordinated debt | — | — | — | 98,954 | 924 | 3.74 | ||||||||||||||||||
| Total interest-bearing liabilities | 5,722,756 | 39,379 | 2.73 | % | 5,280,083 | 41,972 | 3.18 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Demand deposits | 1,583,319 | 1,261,607 | ||||||||||||||||||||||
| Accrued expenses and other liabilities | 115,929 | 106,630 | ||||||||||||||||||||||
| Total noninterest-bearing liabilities | 1,699,248 | 1,368,237 | ||||||||||||||||||||||
| Shareholders’ equity | 734,817 | 629,091 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 8,156,821 | $ | 7,277,411 | ||||||||||||||||||||
| Net interest income | $ | 67,706 | $ | 50,809 | ||||||||||||||||||||
| Net interest spread | 2.55 | % | 1.99 | % | ||||||||||||||||||||
| Net interest margin (D) | 3.34 | % | 2.81 | % |
(A) Average balances for available for sale securities are based on amortized cost.
(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual loans.
(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
| PEAPACK-GLADSTONE FINANCIAL CORPORATION AVERAGE BALANCE SHEET (Tax-Equivalent Basis, Dollars in Thousands) (Unaudited) | ||||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | |||||||||||||||||||||||
| Average | Income/ | Annualized | Average | Income/ | Annualized | |||||||||||||||||||
| Balance | Expense | Yield | Balance | Expense | Yield | |||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Investments: | ||||||||||||||||||||||||
| Taxable (A) | $ | 939,090 | $ | 7,430 | 3.16 | % | $ | 902,433 | $ | 6,947 | 3.08 | % | ||||||||||||
| Loans (B) (C): | ||||||||||||||||||||||||
| Mortgages | 668,213 | 7,909 | 4.73 | 674,171 | 8,121 | 4.82 | ||||||||||||||||||
| Commercial mortgages | 2,839,401 | 36,229 | 5.06 | 2,728,178 | 33,116 | 4.87 | ||||||||||||||||||
| Commercial | 3,008,999 | 48,106 | 6.39 | 2,854,290 | 45,245 | 6.34 | ||||||||||||||||||
| Commercial construction | 807 | 13 | 6.39 | 746 | 12 | 6.45 | ||||||||||||||||||
| Installment | 307,122 | 4,753 | 6.14 | 219,354 | 3,457 | 6.32 | ||||||||||||||||||
| Home equity | 55,640 | 962 | 6.86 | 57,084 | 973 | 6.84 | ||||||||||||||||||
| Other | 1,033 | 4 | 1.54 | 1,079 | 4 | 1.49 | ||||||||||||||||||
| Total loans | 6,881,215 | 97,976 | 5.65 | 6,534,902 | 90,928 | 5.58 | ||||||||||||||||||
| Interest-earning deposits | 226,092 | 1,679 | 2.95 | 321,314 | 2,550 | 3.18 | ||||||||||||||||||
| Total interest-earning assets | 8,046,397 | 107,085 | 5.28 | % | 7,758,649 | 100,425 | 5.19 | % | ||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Cash and due from banks | 8,293 | 7,865 | ||||||||||||||||||||||
| Allowance for credit losses | (71,902 | ) | (66,991 | ) | ||||||||||||||||||||
| Premises and equipment | 41,471 | 40,188 | ||||||||||||||||||||||
| Other assets | 132,562 | 131,214 | ||||||||||||||||||||||
| Total noninterest-earning assets | 110,424 | 112,276 | ||||||||||||||||||||||
| Total assets | $ | 8,156,821 | $ | 7,870,925 | ||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| Checking | $ | 3,811,998 | $ | 26,454 | 2.75 | % | $ | 3,810,661 | $ | 25,306 | 2.66 | % | ||||||||||||
| Money markets | 1,315,270 | 8,848 | 2.67 | 1,194,874 | 7,665 | 2.57 | ||||||||||||||||||
| Savings | 106,103 | 197 | 0.74 | 112,263 | 205 | 0.73 | ||||||||||||||||||
| Certificates of deposit – retail | 376,680 | 2,736 | 2.88 | 396,342 | 2,947 | 2.98 | ||||||||||||||||||
| Total interest-bearing deposits | 5,610,051 | 38,235 | 2.70 | 5,514,140 | 36,123 | 2.63 | ||||||||||||||||||
| Borrowings | 111,630 | 1,133 | 4.03 | 15,087 | 154 | 4.09 | ||||||||||||||||||
| Capital lease obligation | 1,075 | 11 | 4.06 | 1,118 | 12 | 4.31 | ||||||||||||||||||
| Subordinated debt | — | — | — | — | — | — | ||||||||||||||||||
| Total interest-bearing liabilities | 5,722,756 | 39,379 | 2.73 | % | 5,530,345 | 36,289 | 2.63 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Demand deposits | 1,583,319 | 1,528,479 | ||||||||||||||||||||||
| Accrued expenses and other liabilities | 115,929 | 106,295 | ||||||||||||||||||||||
| Total noninterest-bearing liabilities | 1,699,248 | 1,634,774 | ||||||||||||||||||||||
| Shareholders’ equity | 734,817 | 705,806 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 8,156,821 | $ | 7,870,925 | ||||||||||||||||||||
| Net interest income | $ | 67,706 | $ | 64,136 | ||||||||||||||||||||
| Net interest spread | 2.55 | % | 2.56 | % | ||||||||||||||||||||
| Net interest margin (D) | 3.34 | % | 3.32 | % |
(A) Average balances for available for sale securities are based on amortized cost.
(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual loans.
(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
| PEAPACK-GLADSTONE FINANCIAL CORPORATION AVERAGE BALANCE SHEET (Tax-Equivalent Basis, Dollars in Thousands) (Unaudited) | ||||||||||||||||||||||||
| For the Nine Months Ended | ||||||||||||||||||||||||
| September 30, 2026 | September 30, 2025 | |||||||||||||||||||||||
| Average | Income/ | Average | Income/ | |||||||||||||||||||||
| Balance | Expense | Yield | Balance | Expense | Yield | |||||||||||||||||||
| ASSETS: | ||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Investments: | ||||||||||||||||||||||||
| Taxable (A) | $ | 925,220 | $ | 21,503 | 3.10 | % | $ | 1,010,936 | $ | 24,087 | 3.18 | % | ||||||||||||
| Loans (B) (C): | ||||||||||||||||||||||||
| Mortgages | 666,410 | 23,988 | 4.80 | 636,268 | 21,146 | 4.43 | ||||||||||||||||||
| Commercial mortgages | 2,749,181 | 100,896 | 4.91 | 2,423,225 | 82,017 | 4.51 | ||||||||||||||||||
| Commercial | 2,879,869 | 136,708 | 6.33 | 2,520,420 | 124,909 | 6.61 | ||||||||||||||||||
| Commercial construction | 711 | 35 | 6.58 | — | — | — | ||||||||||||||||||
| Installment | 242,244 | 11,205 | 6.18 | 134,883 | 6,914 | 6.83 | ||||||||||||||||||
| Home equity | 56,179 | 2,871 | 6.83 | 50,143 | 2,811 | 7.47 | ||||||||||||||||||
| Other | 914 | 13 | 1.90 | 339 | 15 | 5.95 | ||||||||||||||||||
| Total loans | 6,595,508 | 275,716 | 5.59 | 5,765,278 | 237,812 | 5.50 | ||||||||||||||||||
| Interest-earning deposits | 245,408 | 5,554 | 3.03 | 259,707 | 7,354 | 3.78 | ||||||||||||||||||
| Total interest-earning assets | 7,766,136 | 302,773 | 5.21 | % | 7,035,921 | 269,253 | 5.10 | % | ||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||
| Cash and due from banks | 8,282 | 9,646 | ||||||||||||||||||||||
| Allowance for credit losses | (70,221 | ) | (78,040 | ) | ||||||||||||||||||||
| Premises and equipment | 40,339 | 34,382 | ||||||||||||||||||||||
| Other assets | 134,264 | 130,645 | ||||||||||||||||||||||
| Total noninterest-earning assets | 112,664 | 96,633 | ||||||||||||||||||||||
| Total assets | $ | 7,878,800 | $ | 7,132,554 | ||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||
| Checking | $ | 3,779,199 | $ | 75,602 | 2.67 | % | $ | 3,548,745 | $ | 87,168 | 3.28 | % | ||||||||||||
| Money markets | 1,194,479 | 22,881 | 2.56 | 979,675 | 20,487 | 2.79 | ||||||||||||||||||
| Savings | 110,058 | 595 | 0.72 | 104,983 | 443 | 0.56 | ||||||||||||||||||
| Certificates of deposit – retail | 394,755 | 8,782 | 2.97 | 448,187 | 12,022 | 3.58 | ||||||||||||||||||
| Subtotal interest-bearing deposits | 5,478,491 | 107,860 | 2.63 | 5,081,590 | 120,120 | 3.15 | ||||||||||||||||||
| Interest-bearing demand – brokered | — | — | — | 6,337 | 210 | 4.42 | ||||||||||||||||||
| Total interest-bearing deposits | 5,478,491 | 107,860 | 2.63 | 5,087,927 | 120,330 | 3.15 | ||||||||||||||||||
| Borrowings | 57,569 | 1,719 | 3.99 | 15,215 | 516 | 4.53 | ||||||||||||||||||
| Capital lease obligation | 1,117 | 35 | 4.19 | 1,282 | 40 | 4.16 | ||||||||||||||||||
| Subordinated debt | 21,767 | 1,207 | 7.41 | 108,065 | 3,287 | 4.06 | ||||||||||||||||||
| Total interest-bearing liabilities | 5,558,944 | 110,821 | 2.67 | % | 5,212,489 | 124,173 | 3.18 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Demand deposits | 1,506,443 | 1,185,955 | ||||||||||||||||||||||
| Accrued expenses and other liabilities | 111,106 | 113,521 | ||||||||||||||||||||||
| Total noninterest-bearing liabilities | 1,617,549 | 1,299,476 | ||||||||||||||||||||||
| Shareholders’ equity | 702,307 | 620,589 | ||||||||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 7,878,800 | $ | 7,132,554 | ||||||||||||||||||||
| Net interest income | $ | 191,952 | $ | 145,080 | ||||||||||||||||||||
| Net interest spread | 2.54 | % | 1.92 | % | ||||||||||||||||||||
| Net interest margin (D) | 3.30 | % | 2.76 | % |
(A) Average balances for available for sale securities are based on amortized cost.
(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.
(C) Loans are stated net of unearned income and include nonaccrual loans.
(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.
| PEAPACK-GLADSTONE FINANCIAL CORPORATION NON-GAAP FINANCIAL MEASURES RECONCILIATION |
Tangible book value per share and tangible common equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible common equity by subtracting goodwill, other intangible assets and preferred stock from total shareholders’ equity. Tangible assets are calculated by subtracting goodwill, and other intangible assets from total assets. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing total common equity by common shares outstanding at period end. We calculate tangible common equity as a percentage of tangible assets at period end by dividing tangible common equity by tangible assets at period end. Management believes these non-GAAP measures are useful to investors in assessing the amount of capital attributable to common shareholders and facilitate comparisons with other banking organizations that use similar measures.
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, return on average tangible common equity, and efficiency ratio to the underlying GAAP numbers is set forth below.
| Three Months Ended | ||||||||||||||||||||
| Sept 30, | June 30, | March 31, | Dec 31, | Sept 30, | ||||||||||||||||
| Tangible Book Value Per Share | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Shareholders’ equity | $ | 735,626 | $ | 715,785 | $ | 699,204 | $ | 658,206 | $ | 642,550 | ||||||||||
| Less: preferred stock | 50,000 | 30,000 | 30,000 | — | — | |||||||||||||||
| Total common equity | 685,626 | 685,785 | 669,204 | 658,206 | 642,550 | |||||||||||||||
| Less: intangible assets, net | 43,116 | 43,352 | 43,595 | 43,839 | 44,111 | |||||||||||||||
| Tangible common equity | $ | 642,510 | $ | 642,433 | $ | 625,609 | $ | 614,367 | $ | 598,439 | ||||||||||
| Period end shares outstanding | 17,727,952 | 17,718,733 | 17,708,327 | 17,558,019 | 17,548,471 | |||||||||||||||
| Tangible book value per share | $ | 36.24 | $ | 36.26 | $ | 35.33 | $ | 34.99 | $ | 34.10 | ||||||||||
| Book value per share | 38.67 | 38.70 | 37.79 | 37.49 | 36.62 | |||||||||||||||
| Tangible Equity to Tangible Assets | ||||||||||||||||||||
| Total assets | $ | 8,497,546 | $ | 7,970,293 | $ | 7,698,965 | $ | 7,526,409 | $ | 7,439,642 | ||||||||||
| Less: intangible assets, net | 43,116 | 43,352 | 43,595 | 43,839 | 44,111 | |||||||||||||||
| Tangible assets | $ | 8,454,430 | $ | 7,926,941 | $ | 7,655,370 | $ | 7,482,570 | $ | 7,395,531 | ||||||||||
| Tangible common equity to tangible assets | 7.60 | % | 8.10 | % | 8.17 | % | 8.21 | % | 8.09 | % | ||||||||||
| Common equity to assets | 8.07 | % | 8.60 | % | 8.69 | % | 8.75 | % | 8.64 | % | ||||||||||
(Dollars in thousands, except per share data)
| Three Months Ended | ||||||||||||||||||||
| Sept 30, | June 30, | March 31, | Dec 31, | Sept 30, | ||||||||||||||||
| Return on Average Tangible Common Equity | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Net income available to common shareholders | $ | 18,451 | $ | 15,777 | $ | 14,153 | $ | 12,159 | $ | 9,631 | ||||||||||
| Average shareholders’ equity | $ | 734,817 | $ | 705,806 | $ | 665,537 | $ | 647,645 | $ | 629,091 | ||||||||||
| Less: average preferred stock | 45,000 | 30,000 | 2,000 | — | — | |||||||||||||||
| Total average common equity | 689,817 | 675,806 | 663,537 | 647,645 | 629,091 | |||||||||||||||
| Less: average intangible assets, net | 43,246 | 43,487 | 43,741 | 43,982 | 44,266 | |||||||||||||||
| Total average tangible common equity | $ | 646,571 | $ | 632,319 | $ | 619,796 | $ | 603,663 | $ | 584,825 | ||||||||||
| Return on average tangible common equity | 11.41 | % | 9.98 | % | 9.13 | % | 8.06 | % | 6.59 | % | ||||||||||
| For the Nine Months Ended | ||||||||
| Sept 30, | Sept 30, | |||||||
| Return on Average Tangible Common Equity | 2026 | 2025 | ||||||
| Net income available to common shareholders | $ | 48,381 | $ | 25,167 | ||||
| Average shareholders’ equity | $ | 702,307 | $ | 620,589 | ||||
| Less: average preferred stock | 25,824 | — | ||||||
| Total average common equity | 676,483 | 620,589 | ||||||
| Less: average intangible assets, net | 43,490 | 44,676 | ||||||
| Total average tangible common equity | $ | 632,993 | $ | 575,913 | ||||
| Return on average tangible common equity | 10.19 | % | 5.83 | % | ||||
(Dollars in thousands)
| Three Months Ended | ||||||||||||||||||||
| Sept 30, | June 30, | March 31, | Dec 31, | Sept 30, | ||||||||||||||||
| Efficiency Ratio | 2026 | 2026 | 2026 | 2025 | 2025 | |||||||||||||||
| Net interest income | $ | 67,492 | $ | 63,921 | $ | 59,896 | $ | 56,542 | $ | 50,573 | ||||||||||
| Total other income | 19,996 | 22,131 | 22,597 | 21,659 | 20,121 | |||||||||||||||
| Add: | ||||||||||||||||||||
| Fair value adjustment for CRA equity security | 502 | 55 | 84 | (56 | ) | (125 | ) | |||||||||||||
| Less: | ||||||||||||||||||||
| Loss on loans held for sale at lower of cost or fair value | — | — | — | — | 364 | |||||||||||||||
| Income from life insurance proceeds | — | — | — | (161 | ) | |||||||||||||||
| Loss on securities sale, net | — | — | 81 | — | — | |||||||||||||||
| Gain on sale of property | — | — | — | (318 | ) | — | ||||||||||||||
| Loss on sale of OREO property | 510 | — | — | — | — | |||||||||||||||
| Total recurring revenue | 88,500 | 86,107 | 82,658 | 77,666 | 70,933 | |||||||||||||||
| Operating expenses | 55,148 | 55,667 | 55,440 | 53,538 | 52,297 | |||||||||||||||
| Total operating expense | 55,148 | 55,667 | 55,440 | 53,538 | 52,297 | |||||||||||||||
| Efficiency ratio | 62.31 | % | 64.65 | % | 67.07 | % | 68.93 | % | 73.73 | % | ||||||||||
| For the Nine Months Ended | ||||||||
| September 30, | September 30, | |||||||
| Efficiency Ratio | 2026 | 2025 | ||||||
| Net interest income | $ | 191,309 | $ | 144,368 | ||||
| Total other income | 64,724 | 60,426 | ||||||
| Add: | ||||||||
| Fair value adjustment for CRA equity security | 641 | (362 | ) | |||||
| Less: | ||||||||
| Loss/(gain) on loans held for sale at lower of cost or fair value | — | 364 | ||||||
| Income from life insurance proceeds | — | — | ||||||
| Loss/(gain) on securities sale, net | 81 | (7 | ) | |||||
| Gain on sale of property | — | — | ||||||
| Loss on sale of OREO property | 510 | — | ||||||
| Gain on lease termination | — | (875 | ) | |||||
| Total recurring revenue | 257,265 | 203,914 | ||||||
| Operating expenses | 166,255 | 153,630 | ||||||
| Total operating expense | 166,255 | 153,630 | ||||||
| Efficiency ratio | 64.62 | % | 75.34 | % | ||||
Contact:
Frank A. Cavallaro, SEVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-306-8933
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