Peapack-Gladstone Financial Corporation Secures $50 Million Preferred Stock Commitment from Strategic Value Bank Partners

Peapack-Gladstone Financial Corporation, the holding company for Peapack Private Bank & Trust, has announced a $50 million preferred stock commitment from affiliates of Strategic Value Bank Partners, a long-term investor focused on the banking sector. The commitment includes an initial $30 million private placement of non-cumulative perpetual convertible preferred stock, with the ability to issue up to an additional $20 million of preferred stock through the end of 2027. This transaction represents a significant capital infusion that will provide the company with flexibility to execute its strategic initiatives while maintaining capital levels consistent with its long-standing targets.

The preferred stock carries a dividend rate of 6.00% per annum, is non-callable for the first five years, and thereafter may be redeemed, subject to applicable terms. The preferred stock is convertible to common stock at the option of the holder after five years, subject to applicable terms. The issuance is not listed on any securities exchange and is expected to qualify as Tier 1 capital, subject to applicable regulatory requirements. This structure provides the company with regulatory capital benefits while offering Strategic Value Bank Partners a long-term investment opportunity with conversion potential.

Proceeds will be used for general corporate purposes, which may include supporting organic growth, investments at the holding-company or bank level, acquisitions or other business combinations, and the reduction or refinancing of existing debt. This capital raise comes at a time when the company has been making significant investments in its expansion across the New York metropolitan market, with management reporting positive operating leverage and improving earnings momentum. The transaction reflects the company's disciplined approach to capital management, including actions taken to improve the efficiency and quality of its capital structure.

Douglas L. Kennedy, President and CEO, noted that the partnership with Strategic Value Bank Partners aligns well with the company's strategy, stating that their long-term orientation complements the company's growth objectives. Marty Adams, Co-Founder and Principal of Strategic Value Bank Partners, expressed strong conviction in the management team and the progress made in building a premier private banking and wealth management franchise serving clients across the New York metropolitan market. Additional details regarding the transaction, including the terms of the preferred stock and related agreements, are included in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission, available at https://www.sec.gov/edgar.shtml.

The announcement comes as the company continues to expand its presence in the competitive New York metropolitan banking market, where it has been building its private banking and wealth management franchise. The capital commitment from an established banking sector investor like Strategic Value Bank Partners provides validation of the company's strategic direction and financial performance. This transaction enables Peapack-Gladstone Financial Corporation to pursue growth opportunities while maintaining the capital strength necessary to support its expanding operations and client base in one of the nation's most important financial markets.