Peapack-Gladstone Financial Corporation Reports Strong First Quarter 2026 Results with Significant Growth in Earnings and Loans

Peapack-Gladstone Financial Corporation reported first quarter 2026 net income of $14.2 million, or $0.80 per diluted share, representing a 16% increase from the previous quarter and an 86% increase from the first quarter of 2025. President and CEO Douglas L. Kennedy stated that core earnings increased for a sixth consecutive quarter, reflecting continued momentum in delivering enhanced shareholder value. The company's performance was driven by steady growth in both loans and deposits, with total loans increasing by 12% over the last twelve months to $6.4 billion, while deposits grew 9% to $6.8 billion during the same period.

Net interest income totaled $59.9 million for the first quarter of 2026, marking the eighth consecutive quarter of growth, while net interest margin expanded to 3.26%, an increase of 18 basis points compared to the previous quarter and 58 basis points year-over-year. Total revenue reached $82.5 million for the quarter, representing 28% year-over-year growth, primarily attributable to consistent improvement in net interest income over the last twelve months. The company's wealth management division delivered solid performance with fee income totaling $16.5 million, representing 20% of total revenue, while assets under management and administration remained stable at $13.1 billion despite market volatility late in the quarter.

During the first quarter, the company announced a commitment by Strategic Value Bank Partners to purchase up to $50 million of preferred stock, including an initial $30 million private placement that closed in March 2026. Kennedy noted that this capital raise provides the flexibility needed to continue executing on growth and expansion plans while maintaining capital levels consistent with long-standing targets. The company's capital position was strengthened through the redemption of $100 million of subordinated debt and its replacement with preferred equity, enhancing the quality of the capital base while maintaining an attractive overall cost and improving financial flexibility.

Asset quality continued to improve with nonperforming assets declining for the third consecutive quarter to $59.3 million, or 0.77% of total assets. The provision for credit losses totaled $7.3 million for the first quarter, with the allowance for credit losses standing at $67.0 million, representing 1.04% of total loans. The company's liquidity profile remains strong with a loan-to-deposit ratio of 94% and total on and off-balance sheet liquidity totaling $5.0 billion at March 31, 2026, which amounted to 240% of total uninsured/uncollateralized deposits. Tangible book value per share increased 14% year-over-year to $37.02, while book value per share increased 13% to $39.48.

The company's regulatory capital ratios remain strong, with the Tier 1 Leverage Ratio at 9.24% for the company and 9.02% for the bank, while the Common Equity Tier 1 Ratio was 10.55% for the company and 10.77% for the bank, well above regulatory well-capitalized standards. Investors can access additional information through the company's Q1 2026 Investor Update available on their website at https://www.peapackprivate.com and via a Current Report on Form 8-K on the Securities and Exchange Commission website at https://www.sec.gov. The company will host a conference call on April 23, 2026, to review first quarter results, with materials available on the Investor Relations page of their website.