Peapack-Gladstone Q1 2026 Earnings Soar 86% with Strong Loan Growth

Peapack-Gladstone Financial Corporation (NASDAQ: PGC), the parent company of Peapack Private Bank & Trust, announced robust first quarter 2026 financial results, demonstrating significant growth across key metrics. Under the leadership of President and CEO Douglas L. Kennedy, the company reported net income of $14.2 million, a 16% increase from the previous quarter and an impressive 86% surge compared to Q1 2025. This performance was driven by steady expansion in both loans and deposits, with total loans reaching $6.4 billion (up 12% year-over-year) and deposits growing to $6.8 billion (up 9%). The company's strategic private banking approach and geographic expansion throughout the Metropolitan New York region continue to strengthen its deposit franchise and support durable long-term earnings growth. Key financial highlights included net interest income of $59.9 million (marking the eighth consecutive quarter of growth), a net interest margin of 3.26%, and wealth management fee income of $16.5 million representing 20% of total revenue. Investors can access detailed information through the company's Q1 2026 Investor Update available on their website at www.peapackprivate.com.

The quarter was further bolstered by a strategic capital partnership with long-term investor Strategic Value Bank Partners, which committed to purchase up to $50 million of preferred stock, including an initial $30 million private placement closed in March 2026. This capital raise provides flexibility for continued growth initiatives while maintaining disciplined capital management. The company's asset quality showed improvement with nonperforming assets declining for the third consecutive quarter to $59.3 million (0.77% of total assets), while maintaining strong liquidity with $5.0 billion in total on and off-balance sheet liquidity. Wealth Management Division President John Babcock reported stable assets under management and administration at $13.1 billion despite market volatility, with continued client inflows of $227 million. The company's capital position strengthened significantly, with tangible book value per share increasing 14% to $37.02 and regulatory capital ratios remaining well above well-capitalized standards. A cash dividend of $0.05 per share was declared payable in May 2026, reflecting the company's commitment to shareholder value.

Operational performance showed strong revenue growth of 28% year-over-year to $82.5 million, driven primarily by consistent improvement in net interest income. The company successfully repositioned its securities portfolio during the quarter, exiting lower-yielding assets and redeploying into higher-yielding bonds without impacting earnings. Commercial banking activity remained robust with commercial mortgage and commercial/industrial loan originations driving portfolio growth, particularly in equipment finance where demand from well-capitalized middle-market clients remained strong. The company maintains a well-balanced funding base with no reliance on brokered funding and a loan-to-deposit ratio of 94%. Overall credit trends remain favorable with proactive portfolio management, and the company continues to execute its strategic expansion plan while delivering enhanced shareholder value through disciplined execution across all business lines.