Peapack-Gladstone Financial Corporation Reports Strong Fourth Quarter Growth with Net Interest Margin Expansion

Peapack-Gladstone Financial Corporation reported substantial financial improvement for the fourth quarter of 2025, with net income reaching $12.2 million and diluted earnings per share of $0.69, representing a 26% increase from the previous quarter. The company's net interest margin expanded significantly to 3.08% for the quarter ended December 31, 2025, compared to 2.81% for the third quarter and 2.46% for the same period in 2024. This margin expansion reflects the company's successful transformation of its deposit base and disciplined pricing strategy, which has driven eight consecutive quarters of net interest income growth.

Total deposits grew by $460 million, or 8%, over the last twelve months to $6.6 billion at December 31, 2025, with core relationship deposits increasing $828 million for the year. The company has been actively replacing higher-cost deposit balances with new relationships at lower funding costs, resulting in noninterest-bearing deposit growth of $316 million, or 28%, during 2025. Total loans increased by $738 million, or 13%, to $6.3 billion during the same period, with commercial and industrial lending accounting for 55% of new business originations during the fourth quarter. These financial results demonstrate the company's ability to manage significant investments while delivering improved operating leverage and shareholder value.

The wealth management division showed particular strength, with assets under management and administration growing by $1.2 billion to $13.1 billion at December 31, 2025, compared to $11.9 billion a year earlier. Wealth management fee income reached $16.1 million in the fourth quarter, representing 21% of total revenue for the period. New business inflows totaled $291 million in the fourth quarter and $1.0 billion for the full year 2025, indicating strong client acquisition and retention. The company's capital position remained robust, with tangible book value per share increasing 10% to $34.99 per share at December 31, 2025, compared to $31.89 at December 31, 2024.

President and CEO Douglas L. Kennedy emphasized the company's strategic positioning, stating that Peapack Private Bank & Trust serves as a premier boutique alternative to larger banks in the metro New York market. The company's expansion efforts into New York City and Long Island have contributed to operating expense growth but are viewed as strategic investments supporting long-term growth and profitability. Asset quality showed improvement, with nonperforming assets decreasing to $68.2 million, or 0.91% of total assets, at December 31, 2025, compared to $84.1 million, or 1.13% of total assets, at September 30, 2025. The company maintains strong regulatory capital ratios well above well-capitalized standards, with a Tier 1 Leverage Ratio of 9.89% for the bank and 8.87% for the company at year-end.

For the full year 2025, net income grew by 13% to $37.3 million, or $2.10 per share, compared to $33.0 million, or $1.85 per share for 2024. Total revenue increased 24% to $283.0 million for the year, driven by a 35% increase in net interest income to $200.9 million. The company's detailed financial results are available in its Q4 2025 Investor Update on its website at https://www.peapackprivate.com and through a Current Report on Form 8-K on the Securities and Exchange Commission website at https://www.sec.gov. These results position the company for continued growth in 2026, supported by its integrated wealth platform, commercial banking expansion, and disciplined approach to balance sheet management.