Moody's Confirms Investment Grade Ratings for Peapack-Gladstone Financial Corporation

Peapack-Gladstone Financial Corporation (NASDAQ: PGC) and its banking subsidiary, Peapack-Gladstone Bank, have received confirmation of their investment grade ratings from Moody's Investors Service, marking a significant vote of confidence in the financial institution's stability and strategic direction. This confirmation comes after a thorough review process that began in June of this year.

Moody's has affirmed the Baa3 long-term local currency issuer rating for Peapack-Gladstone Financial Corporation and the baa2 baseline credit assessment (BCA) for Peapack-Gladstone Bank. Additionally, the outlook on these ratings has been revised from 'under review' to 'stable,' indicating a positive view of the company's financial health and future prospects.

The confirmation of these investment grade ratings is particularly noteworthy in the context of the recent turbulence in the regional banking sector. Moody's decision reflects the company's ability to maintain a solid capital position and improve its funding and liquidity profile over the past year. The rating agency specifically highlighted the resilience of Peapack-Gladstone's deposit base during the 2023 regional banking crisis as a key factor in their assessment.

This rating affirmation carries significant implications for Peapack-Gladstone Financial Corporation and its stakeholders. Investment grade ratings are crucial for financial institutions as they influence the company's ability to access capital markets, attract investors, and secure favorable terms for financial transactions. For customers and partners, these ratings provide reassurance about the bank's stability and creditworthiness, potentially leading to increased trust and business opportunities.

Douglas L. Kennedy, President and CEO of Peapack-Gladstone Financial Corporation, expressed satisfaction with the rating confirmation, stating that it validates the strength of the company's current strategy and business model. This endorsement from a respected rating agency like Moody's can serve as a powerful tool for the bank in its competitive landscape, potentially aiding in customer acquisition and retention.

The comprehensive review conducted by Moody's encompassed an extensive analysis of Peapack-Gladstone's business fundamentals, financial conditions, and the terms surrounding its issuer and deposit ratings. The positive outcome of this review suggests that the company has successfully navigated the challenges faced by the banking industry in recent times and has positioned itself for sustainable growth.

It's worth noting that Peapack-Gladstone Financial Corporation also maintains an investment grade credit rating from Kroll Bond Rating Agency (KBRA), which was affirmed in May 2024. This dual confirmation from two reputable rating agencies further strengthens the company's financial credibility in the market.

As of June 30, 2024, Peapack-Gladstone Financial Corporation reported total assets of $6.51 billion and assets under management and/or administration of $11.5 billion. These figures, combined with the recent rating confirmations, paint a picture of a robust financial institution with a strong foundation for future growth and stability.

The banking landscape continues to evolve, with regulatory changes, technological advancements, and economic fluctuations presenting ongoing challenges. In this context, Peapack-Gladstone's ability to maintain investment grade ratings is a testament to its resilience and adaptability. As the company moves forward with its client-centric approach to banking and wealth management, these ratings are likely to play a crucial role in supporting its strategic initiatives and market position.