BEDMINSTER, NJ - July 21, 2025 (NEWMEDIAWIRE) - Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the "Company") announces its second quarter 2025 financial results.

This earnings release should be read in conjunction with the Company’s Q2 2025 Investor Update, a copy of which is available on our website at www.peapackprivate.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

Deposits grew to $6.4 billion as of June 30, 2025, which represents an increase of $707 million, or 12%, over the last twelve months. During the second quarter of 2025, there were newly funded accounts of $282 million at an average weighted cost of 1.88%. Noninterest-bearing deposits increased by $53 million during the current period and have grown by 30% over the last year.

The Company recorded net income of $7.9 million and diluted earnings per share (“EPS”) of $0.45 for the quarter ended June 30, 2025 compared to net income of $7.6 million and diluted EPS of $0.43 for the quarter ended March 31, 2025.

Net interest income increased $2.8 million, or 6%, on a linked quarter basis to $48.3 million for the second quarter of 2025 compared to $45.5 million for the first quarter of 2025. The growth in net interest income was driven by improvement in the yield on average interest earning assets, as well as continued improvement in the net interest margin. The net interest margin increased to 2.77% for the quarter ended June 30, 2025 compared to 2.68% for the quarter ended March 31, 2025 and 2.25% for the quarter ended June 30, 2024.

Douglas L. Kennedy, President and CEO, said, “Our Metro New York expansion continues to deliver strong results. We’ve had great success driving deposit growth at a favorable mix. In less than the two years since the initial hiring of experienced private banking teams in New York City, we have successfully on-boarded over 700 new relationships with more than $1.3 billion in new core relationship deposit balances and $464 million in loan balances. This expansion initiative has resulted in an increase of over 30% in our employee headcount. However, we have managed to deliver a third consecutive quarter of positive operating leverage.”

Mr. Kennedy also noted, “In line with our expansion strategy, we have added five production teams in Long Island during the second quarter. The addition of these new teams combined with our re-branding to Peapack Private Bank & Trust earlier this year demonstrates the evolution of our Company to become the premier boutique private bank in Metro New York.”

The following are select highlights for the period ended June 30, 2025:

Wealth Management:

• AUM/AUA in our Wealth Management Division totaled $12.3 billion at June 30, 2025 compared to $11.9 billion at December 31, 2024.
• New business inflows for Q2 2025 totaled $193 million.
• Wealth Management fee income was $15.9 million in Q2 2025, which amounted to 23% of total revenue for the quarter.

Commercial Banking and Balance Sheet Management:

• Total loans increased $304 million to $5.8 billion at June 30, 2025 from $5.5 billion at December 31, 2024.
• Commercial and industrial lending (“C&I”) accounted for 58% of the new business originations during the second quarter. C&I balances grew to 44% of the total loan portfolio at June 30, 2025.
• Total deposits increased by $234 million, to $6.4 billion at June 30, 2025 compared to $6.1 billion at December 31, 2024. Noninterest-bearing demand deposits grew $53 million during the second quarter, and represented 19% of total deposits as of June 30, 2025.
• Fee income on unused commercial lines of credit totaled $869,000 for Q2 2025.
• The net interest margin ("NIM") was 2.77% for Q2 2025, an increase of 9 basis points compared to 2.68% for Q1 2025.

Capital Management:

• Tangible book value per share increased 4% to $33.19 per share at June 30, 2025 compared to $31.89 at December 31, 2024. Book value per share increased 4% to $35.71 per share at June 30, 2025 compared to $34.45 at December 31, 2024. Tangible book value per share is a non-GAAP financial measure. See the reconciliation tables included in this release for further detail.
• At June 30, 2025, the Tier 1 Leverage Ratio stood at 9.99% for Peapack Private Bank & Trust (the "Bank") and 8.94% for the Company. The Common Equity Tier 1 Ratio was 12.29% for the Bank and 10.99% for the Company at June 30, 2025. These ratios remain significantly above well capitalized standards, as capital continues to benefit from net income generation.

SUMMARY INCOME STATEMENT DETAILS:

The following tables summarize specified financial details for the periods shown.

(Dollars in millions, except per share data) (unaudited)

Six Months Ended
June 30,
2025

Six Months Ended
June 30,
2024

Increase/
(Decrease)

Net interest income

$

93.80

$

69.42

$

24.38

35%

Wealth management fee income

31.38

30.83

0.55

2

Capital markets activity

1.25

1.86

(0.61)

(33)

Other income

7.68

7.57

0.11

1

Total other income

40.31

40.26

0.05

0

Total Revenue

134.11

109.68

24.43

22%

Operating expenses

101.33

83.17

18.16

22

Pretax income before provision for credit losses

32.78

26.51

6.27

24

Provision for credit losses

11.06

4.54

6.52

144

Pretax income

21.72

21.97

(0.25)

(1)

Income tax expense

6.17

5.81

0.36

6

Net income

$

15.55

$

16.16

$

(0.61)

(4)%

Diluted EPS

$

0.87

$

0.91

$

(0.04)

(4)%

Return on average assets

0.44%

0.51%

(0.07)

Return on average equity

5.04%

5.58%

(0.54)

June 2025 Quarter Compared to Prior Year Quarter

(Dollars in millions, except per share data) (unaudited)

Three Months Ended
June 30,
2025

Three Months Ended
June 30,
2024

Increase/
(Decrease)

Net interest income

$

48.29

$

35.04

$

13.25

38%

Wealth management fee income

15.94

16.42

(0.48)

(3)

Capital markets activity

0.80

0.59

0.21

36

Other income

4.71

4.55

0.16

4

Total other income

21.45

21.56

(0.11)

(1)

Total Revenue

69.74

56.60

13.14

23%

Operating expenses

51.89

43.13

8.76

20

Pretax income before provision for credit losses

17.85

13.47

4.38

33

Provision for credit losses

6.59

3.91

2.68

69

Pretax income

11.26

9.56

1.70

18

Income tax expense

3.32

2.03

1.29

64

Net income

$

7.94

$

7.53

$

0.41

5%

Diluted EPS

$

0.45

$

0.42

$

0.03

7%

Return on average assets annualized

0.45%

0.47%

(0.02)

Return on average equity annualized

5.11%

5.22%

(0.11)

June 2025 Quarter Compared to Linked Quarter

(Dollars in millions, except per share data) (unaudited)

Three Months Ended
June 30,
2025

Three Months Ended
March 31,
2025

Increase/
(Decrease)

Net interest income

$

48.29

$

45.51

$

2.78

6%

Wealth management fee income

15.94

15.44

0.50

3

Capital markets activity

0.80

0.46

0.34

74

Other income

4.71

2.95

1.76

60

Total other income

21.45

18.85

2.60

14

Total Revenue

69.74

64.36

5.38

8%

Operating expenses

51.89

49.44

2.45

5

Pretax income before provision for credit losses

17.85

14.92

2.93

20

Provision for credit losses

6.59

4.47

2.12

47

Pretax income

11.26

10.45

0.81

8

Income tax expense

3.32

2.85

0.47

16

Net income

$

7.94

$

7.60

$

0.34

4%

Diluted EPS

$

0.45

$

0.43

$

0.02

5%

Return on average assets annualized

0.45%

0.43%

0.02

Return on average equity annualized

5.11%

4.98%

0.13

SUPPLEMENTAL QUARTERLY DETAILS:

Wealth Management

AUM/AUA in the Bank’s Wealth Management Division increased to $12.3 billion at June 30, 2025 compared to $11.9 billion at December 31, 2024. For the June 2025 quarter, the Wealth Management Team generated $15.9 million in fee income, compared to $15.4 million for the March 31, 2025 quarter and $16.4 million for the June 2024 quarter.

John Babcock, President of the Bank's Wealth Management Division, noted, “Q2 2025 saw continued strong client inflows driven by new accounts and client additions of $193 million. Our new business pipeline is healthy, and we continue to remain focused on delivering excellent service and advice to our clients. Our highly skilled wealth management professionals, our fiduciary powers and expertise, and our financial planning capabilities combined with our high-touch client service model distinguishes us in our market and continues to drive our growth and success.”

Loans / Commercial Banking

Total loans increased $304 million, or 5%, to $5.8 billion at June 30, 2025, compared to $5.5 billion at December 31, 2024, primarily driven by multifamily and commercial and industrial loan originations during the quarter. The increase in multifamily lending was supported by stronger demand as rates have become more attractive, while C&I growth was driven by business expansion and capital investment. Total C&I loans and leases at June 30, 2025 were $2.5 billion or 44% of the total loan portfolio.

Mr. Kennedy noted, “We are proud to have built a leading middle-market commercial banking franchise, as evidenced by our C&I loan portfolio and complimented by Treasury Management services, Corporate Advisory and SBA businesses. These business lines fit perfectly with our private banking business model and will continue to generate solid production going forward. During the current year, we have originated loans that carried an average spread of more than 450 basis points above our current cost of funds.”

Net Interest Income (NII)/Net Interest Margin (NIM)

The Company’s NII of $48.3 million and NIM of 2.77% for Q2 2025 increased $2.8 million and 9 basis points from NII of $45.5 million and NIM of 2.68% for the linked quarter (Q1 2025) and increased $13.2 million and 52 basis points from NII of $35.0 million and NIM of 2.25% compared to the prior year period (Q2 2024). Our single point of contact private banking strategy and New York City expansion continues to deliver lower-cost core deposit relationships resulting in consistent improvement in our net interest margin.

Funding / Liquidity / Interest Rate Risk Management

Total deposits increased $234 million to $6.4 billion at June 30, 2025 from $6.1 billion at December 31, 2024. The overall growth in deposits has strengthened balance sheet liquidity and reduced reliance on outside borrowings and other non-core funding sources. There were no outstanding overnight borrowings at June 30, 2025.

At June 30, 2025, the Company’s balance sheet liquidity (investments available for sale, interest-earning deposits and cash) totaled $1.1 billion, or 15% of total assets. The Company maintains additional liquidity resources of approximately $3.5 billion through secured available borrowing facilities with the Federal Home Loan Bank and the Federal Reserve Discount Window. The available funding from the Federal Home Loan Bank and the Federal Reserve are secured by the Company’s loan and investment portfolios. The Company's total on and off-balance sheet liquidity totaled $4.6 billion at June 30, 2025, which amounts to 277% of the total uninsured/uncollateralized deposits currently on the Company’s balance sheet.

Income from Capital Markets Activities

Noninterest income from Capital Markets activities (detailed below) totaled $799,000 for the June 2025 quarter compared to $455,000 for the March 2025 quarter and $586,000 for the June 2024 quarter.

(Dollars in thousands, except per share data) (unaudited)

Three Months Ended
June 30,
2025

Three Months Ended
March 31,
2025

Three Months Ended
June 30,
2024

Gain on loans held for sale at fair value (Mortgage banking)

$

27

$

63

$

34

Fee income related to loan level, back-to-back swaps

221

-

-

Gain on sale of SBA loans

521

302

449

Corporate advisory fee income

30

90

103

Total capital markets activity

$

799

$

455

$

586

Other Noninterest Income (other than Wealth Management Fee Income and Income from Capital Markets Activities)

Other noninterest income was $4.7 million for Q2 2025 compared to $3.0 million for Q1 2025 and $4.6 million for Q2 2024. Q2 2025 included a gain of $875,000 related to an early lease termination for a branch location. Prior quarters included a loss of $415,000 in Q1 2025 and income of $1.6 million in Q2 2024 recorded by the Equipment Finance Division related to equipment transfers to lessees upon the termination of leases. Additionally, Q2 2025 included $869,000 of unused line fees compared to $932,000 for Q1 2025 and $786,000 for Q2 2024.

Operating Expenses

Total operating expenses were $51.9 million for the second quarter of 2025, compared to $49.4 million for the first quarter of 2025 and $43.1 million for the quarter ended June 30, 2024. The increase during the second quarter was primarily driven by expenses associated with the Company’s ongoing expansion into New York City, increased health insurance costs, and annual merit increases. The addition of production teams in Long Island also contributed to the growth in operating expenses.

Mr. Kennedy noted, “We continue to make investments related to our strategic decision to expand into Metro New York City and are confident that these investments will position us for future growth and profitability, which will ultimately translate to increased shareholder value. We continue to look for opportunities to create efficiencies and manage expenses throughout the Company while investing in enhancements to the client experience."

Income Taxes

The effective tax rate for the three months ended June 30, 2025 was 29.5%, as compared to 27.3% for the March 2025 quarter and 21.2% for the quarter ended June 30, 2024. The June 2024 quarter included a benefit related to the Company's deferred tax assets associated with a surtax imposed by the State of New Jersey in June 2024. Excluding such a benefit, the effective tax rate for the June 2024 quarter would have been approximately 29.0%.

Asset Quality / Provision for Credit Losses

Nonperforming assets increased to $115.0 million, or 1.60% of total assets, at June 30, 2025, as compared to $97.2 million, or 1.36% of total assets, at March 31, 2025. The increase in nonperforming assets during the second quarter was driven by the addition of two commercial and industrial relationships totaling $14.5 million and one multifamily loan totaling $4.8 million. Multifamily loans represent approximately 49% of nonperforming assets as of June 30, 2025. Loans past due 30 to 89 days and still accruing decreased to $15.5 million, or 0.27% of total loans, at June 30, 2025 compared to $28.3 million, or 0.49% of total loans, at March 31, 2025. Criticized and classified loans increased to $232.7 million at June 30, 2025, reflecting an increase of $15.2 million as compared to $217.5 million at March 31, 2025. The Company currently has no loans or leases on deferral and still accruing.

For the quarter ended June 30, 2025, the provision for credit losses was $6.6 million compared to $4.5 million for the March 2025 quarter and $3.9 for the June 2024 quarter. The provision for credit losses in the second quarter of 2025 was driven by deterioration in key economic model drivers and an increase in specific reserves for one equipment financing relationship of $5.8 million.

At June 30, 2025, the allowance for credit losses was $81.8 million (1.40% of total loans), compared to $75.2 million (1.31% of total loans) at March 31, 2025, and $68.0 million (1.29% of total loans) at June 30, 2024.

Mr. Kennedy noted, “We continue to closely monitor asset quality metrics. We believe that most of our credit issues in the multifamily loan portfolio are isolated to a small number of specific borrowers and sponsors. We continue to work through each credit individually, while building appropriate reserve coverage. All of the multifamily loans that repriced in 2024 have continued to make their scheduled payments despite the higher rate environment."

Capital

The Company’s capital position increased during the second quarter of 2025 due to net income of $7.9 million and positive movement in accumulated other comprehensive income of $2.1 million related to the fair value of the Company’s investment securities portfolio due to the interest rate environment, which was partially offset by the repurchase of 100,000 shares through the Company's repurchase program at a total cost of $2.8 million.

Tangible book value per share increased 4% to $33.19 per share at June 30, 2025 from $31.89 at December 31, 2024. (Tangible book value per share is a non-GAAP financial measure. See the reconciliation tables included in this release for further detail.) Book value per share increased 4% to $35.71 per share at June 30, 2025 compared to $34.45 at December 31, 2024. The Company’s and Bank’s regulatory capital ratios as of June 30, 2025 remain strong. Where applicable, such ratios remain well above regulatory well capitalized standards.

The Company employs quarterly capital stress testing modeling of an adverse case and severely adverse case. In the most recently completed stress test (as of March 31, 2025), the Bank remains well capitalized over a two-year stress period.

On June 26, 2025, the Company declared a cash dividend of $0.05 per share payable on August 21, 2025 to shareholders of record on August 7, 2025.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $7.2 billion and assets under management and/or administration of $12.3 billion as of June 30, 2025. Founded in 1921, Peapack Private Bank & Trust, a subsidiary of Peapack-Gladstone Financial Corporation, is a commercial bank that offers a client-centric approach to banking, providing high-quality products along with customized and innovative wealth management, investment banking, commercial and retail solutions. The Bank's wealth management division offers comprehensive financial, tax, fiduciary and investment advice and solutions to individuals, families, privately held businesses, family offices and not-for-profit organizations, which help them to establish, maintain and expand their legacy. Peapack Private Bank & Trust offers an unparalleled commitment to client service. Visit www.peapackprivate.com for more information.

FORWARD-LOOKING STATEMENTS

The foregoing may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about new and existing programs and products, investments, relationships, opportunities and market conditions. These statements may be identified by such forward-looking terminology as “expect,” “look,” “believe,” “anticipate,” “may” or similar statements or variations of such terms. Actual results may differ materially from such forward-looking statements. Factors that may cause results to differ materially from such forward-looking statements include, but are not limited to:

• our ability to successfully grow our business and implement our strategic plan, including our ability to generate revenues to offset the increased personnel and other costs related to the strategic plan;
• the impact of anticipated higher operating expenses in 2025 and beyond;
• our ability to successfully integrate wealth management firm and team acquisitions;
• our ability to successfully integrate our expanded employee base;
• an unexpected decline in the economy, in particular in our New Jersey and New York market areas, including potential recessionary conditions;
• declines in our net interest margin caused by the interest rate environment and/or our highly competitive market;
• declines in the value in our investment portfolio;
• impact from a pandemic event on our business, operations, customers, allowance for credit losses and capital levels;
• higher than expected increases in our allowance for credit losses;
• higher than expected increases in credit losses or in the level of delinquent, nonperforming, classified and criticized loans or charge-offs;
• inflation and changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and lead to higher operating costs;
• decline in real estate values within our market areas;
• legislative and regulatory actions (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Basel III and related regulations) that may result in increased compliance costs;
• the imposition of tariffs or other domestic or international governmental policies and retaliatory responses;
• the failure to maintain current technologies and/or to successfully implement future information technology enhancements;
• successful cyberattacks against our IT infrastructure and that of our IT and third-party providers;
• higher than expected FDIC insurance premiums;
• adverse weather conditions;
• the current or anticipated impact of military conflict, terrorism or other geopolitical events;
• our inability to successfully generate new business in new geographic markets, including our expansion into New York City;
• a reduction in our lower-cost funding sources;
• changes in liquidity, including the size and composition of our deposit portfolio, including the percentage of uninsured deposits in the portfolio;
• our inability to adapt to technological changes;
• claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters;
• our inability to retain key employees;
• demands for loans and deposits in our market areas;
• adverse changes in securities markets;
• changes in New York City rent regulation law;
• changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
• changes in accounting policies and practices; and/or
• other unexpected material adverse changes in our financial condition, operations or earnings.

A discussion of these and other factors that could affect our results is included in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2024. Except as may be required by the applicable law or regulation, we undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Contact:

Frank A. Cavallaro, SEVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-306-8933

(Tables to follow)

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except per share data)
(Unaudited)

For the Three Months Ended

June 30,
2025

March 31,
2025

Dec 31,
2024

Sept 30,
2024

June 30,
2024

Income Statement Data:

Interest income

$

89,651

$

86,345

$

86,166

$

83,203

$

79,238

Interest expense

41,361

40,840

44,258

45,522

44,196

Net interest income

48,290

45,505

41,908

37,681

35,042

Wealth management fee income

15,943

15,435

15,482

15,150

16,419

Service charges and fees

1,194

1,112

1,323

1,327

1,345

Bank owned life insurance

370

371

335

390

328

Gain on loans held for sale at fair value
(Mortgage banking)

27

63

58

15

34

Gain on loans held for sale at lower
of cost or fair value

-

-

-

-

23

Fee income related to loan level, back-to-back swaps

221

-

-

-

-

Gain on sale of SBA loans

521

302

-

365

449

Corporate advisory fee income

30

90

56

55

103

Other income

3,096

1,286

2,125

1,162

2,938

Securities gains, net

7

-

-

-

-

Fair value adjustment for CRA equity security

42

195

549

474

(84)

Total other income

21,451

18,854

19,928

18,938

21,555

Total revenue

69,741

64,359

61,836

56,619

56,597

Compensation and employee benefits

36,061

35,879

32,915

31,050

29,884

Premises and equipment

6,641

6,154

5,995

5,633

5,776

FDIC insurance expense

1,045

855

825

870

870

Other expenses

8,146

6,552

8,125

7,096

6,596

Total operating expenses

51,893

49,440

47,860

44,649

43,126

Pretax income before provision for credit losses

17,848

14,919

13,976

11,970

13,471

Provision for credit losses

6,586

4,471

1,738

1,224

3,911

Income before income taxes

11,262

10,448

12,238

10,746

9,560

Income tax expense

3,321

2,853

2,998

3,159

2,030

Net income

$

7,941

$

7,595

$

9,240

$

7,587

$

7,530

Per Common Share Data:

Earnings per share (basic)

$

0.45

$

0.43

$

0.53

$

0.43

$

0.42

Earnings per share (diluted)

0.45

0.43

0.52

0.43

0.42

Weighted average number of common
shares outstanding:

Basic

17,704,110

17,610,917

17,585,213

17,616,046

17,747,070

Diluted

17,773,237

17,812,222

17,770,717

17,700,042

17,792,296

Performance Ratios:

Return on average assets annualized (ROAA)

0.45%

0.43%

0.54%

0.46

%

0.47%

Return on average equity annualized (ROAE)

5.11%

4.98%

6.15%

5.12

%

5.22%

Return on average tangible equity annualized (ROATCE) (A)

5.50%

5.37%

6.65%

5.54

%

5.67%

Net interest margin (tax-equivalent basis)

2.77%

2.68%

2.46%

2.34

%

2.25%

GAAP efficiency ratio (B)

74.41%

76.82%

77.40%

78.86

%

76.20%

Operating expenses / average assets annualized

2.92%

2.82%

2.77%

2.73

%

2.70%

(A) Return on average tangible equity is calculated by dividing tangible equity by annualized net income. See non-GAAP financial measures reconciliation included in these tables.

(B) Calculated as total operating expenses as a percentage of total revenue. For non-GAAP efficiency ratio, see the non-GAAP financial measures reconciliation included in these tables.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except per share data)
(Unaudited)

For the Six Months Ended
June 30,

Change

2025

2024

$

%

Income Statement Data:

Interest income

$

175,996

$

158,432

$

17,564

11%

Interest expense

82,201

89,015

(6,814)

-8%

Net interest income

93,795

69,417

24,378

35%

Wealth management fee income

31,378

30,826

552

2%

Service charges and fees

2,306

2,667

(361)

-14%

Bank owned life insurance

741

831

(90)

-11%

Gain on loans held for sale at fair value (Mortgage banking)

90

90

-

0%

Gain on loans held for sale at lower of cost or fair value

-

23

(23)

-100%

Fee income related to loan level, back-to-back swaps

221

-

221

N/A

Gain on sale of SBA loans

823

849

(26)

-3%

Corporate advisory fee income

120

921

(801)

-87%

Other income

4,382

4,244

138

3%

Securities gains, net

7

-

7

N/A

Fair value adjustment for CRA equity security

237

(195)

432

-222%

Total other income

40,305

40,256

49

0%

Total revenue

134,100

109,673

24,427

22%

Compensation and employee benefits

71,940

58,360

13,580

23%

Premises and equipment

12,795

10,857

1,938

18%

FDIC insurance expense

1,900

1,815

85

5%

Other expenses

14,698

12,135

2,563

21%

Total operating expenses

101,333

83,167

18,166

22%

Pretax income before provision for credit losses

32,767

26,506

6,261

24%

Provision for credit losses

11,057

4,538

6,519

144%

Income before income taxes

21,710

21,968

(258)

-1%

Income tax expense

6,174

5,807

367

6%

Net income

$

15,536

$

16,161

$

(625)

-4%

Per Common Share Data:

Earnings per share (basic)

$

0.88

$

0.91

$

(0.03)

-3%

Earnings per share (diluted)

0.87

0.91

(0.04)

-4%

Weighted average number of common shares outstanding:

Basic

17,657,771

17,729,355

(71,584)

0%

Diluted

17,799,095

17,811,895

(12,800)

0%

Performance Ratios:

Return on average assets (ROAA)

0.44%

0.51%

(0.07)%

-14%

Return on average equity (ROAE)

5.04%

5.58%

(0.54)%

-10%

Return on average tangible equity (ROATCE) (A)

5.44%

6.06%

(0.62)%

-10%

Net interest margin (tax-equivalent basis)

2.73%

2.22%

0.51%

23%

GAAP efficiency ratio (B)

75.57%

75.83%

(0.26)%

0%

Operating expenses / average assets

2.87%

2.60%

0.27%

10%

(A) Return on average tangible equity is calculated by dividing tangible equity by annualized net income. See non-GAAP financial measures reconciliation included in these tables.

(B) Calculated as total operating expenses as a percentage of total revenue. For non-GAAP efficiency ratio, see the non-GAAP financial measures reconciliation included in these tables.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)

As of

June 30,
2025

March 31,
2025

Dec 31,
2024

Sept 30,
2024

June 30,
2024

ASSETS

Cash and due from banks

$

7,524

$

7,885

$

8,492

$

8,129

$

5,586

Federal funds sold

-

-

-

-

-

Interest-earning deposits

308,078

224,032

382,875

484,529

310,143

Total cash and cash equivalents

315,602

231,917

391,367

492,658

315,729

Securities available for sale

767,533

832,030

784,544

682,713

591,884

Securities held to maturity

98,623

100,285

101,635

103,158

105,013

CRA equity security, at fair value

13,278

13,236

13,041

13,445

12,971

FHLB and FRB stock, at cost (A)

11,467

12,311

12,373

12,459

12,478

Residential mortgage

649,703

630,245

614,840

591,374

579,057

Multifamily mortgage

1,794,854

1,775,132

1,799,754

1,784,861

1,796,687

Commercial mortgage

643,520

633,957

588,104

578,559

600,859

Commercial and industrial loans

2,543,092

2,528,235

2,397,699

2,247,853

2,185,827

Consumer loans

140,668

140,443

77,785

78,160

69,579

Home equity lines of credit

52,434

48,301

42,327

38,971

37,117

Other loans

261

359

411

389

172

Total loans

5,824,532

5,756,672

5,520,920

5,320,167

5,269,298

Less: Allowance for credit losses

81,770

75,150

72,992

71,283

67,984

Net loans

5,742,762

5,681,522

5,447,928

5,248,884

5,201,314

Premises and equipment

36,626

31,639

28,888

25,716

24,932

Accrued interest receivable

33,209

31,968

29,898

31,973

33,534

Bank owned life insurance

48,239

48,110

47,981

47,837

47,716

Goodwill and other intangible assets

44,383

44,655

44,926

45,198

45,470

Finance lease right-of-use assets

914

950

985

1,020

1,055

Operating lease right-of-use assets

38,291

39,456

40,289

41,650

38,683

Due from brokers

-

-

-

-

3,184

Other assets

49,746

52,573

67,383

47,081

71,387

TOTAL ASSETS

$

7,200,673

$

7,120,652

$

7,011,238

$

6,793,792

$

6,505,350

LIABILITIES

Deposits:

Noninterest-bearing demand deposits

$

1,237,864

$

1,184,860

$

1,112,734

$

1,079,877

$

950,368

Interest-bearing demand deposits

3,483,295

3,450,014

3,334,269

3,316,217

3,229,814

Savings

103,846

107,581

103,136

103,979

105,602

Money market accounts

1,095,665

1,087,959

1,078,024

902,562

824,158

Certificates of deposit – Retail

440,612

442,369

483,998

515,297

502,810

Certificates of deposit – Listing Service

1,841

3,773

6,861

7,454

7,454

Subtotal “customer” deposits

6,363,123

6,276,556

6,119,022

5,925,386

5,620,206

IB Demand – Brokered

-

10,000

10,000

10,000

10,000

Certificates of deposit – Brokered

-

-

-

-

26,000

Total deposits

6,363,123

6,286,556

6,129,022

5,935,386

5,656,206

Short-term borrowings

-

-

-

-

-

Finance lease liability

1,268

1,308

1,348

1,388

1,427

Operating lease liability

41,806

42,948

43,569

44,775

41,347

Subordinated debt, net

98,933

98,884

133,561

133,489

133,417

Due to brokers

-

-

18,514

-

9,981

Other liabilities

65,766

69,083

79,375

71,140

74,650

TOTAL LIABILITIES

6,570,896

6,498,779

6,405,389

6,186,178

5,917,028

Shareholders’ equity

629,777

621,873

605,849

607,614

588,322

TOTAL LIABILITIES AND

SHAREHOLDERS’ EQUITY

$

7,200,673

$

7,120,652

$

7,011,238

$

6,793,792

$

6,505,350

Assets under management and / or administration at
Peapack Private Bank & Trust's Wealth Management
Division (market value, not included above-dollars in billions)

$

12.3

$

11.8

$

11.9

$

12.1

$

11.5

(A) FHLB means "Federal Home Loan Bank" and FRB means "Federal Reserve Bank."

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)

As of

June 30,
2025

March 31,
2025

Dec 31,
2024

Sept 30,
2024

June 30,
2024

Asset Quality:

Loans past due over 90 days and still accruing

$

-

$

-

$

-

$

-

$

-

Nonaccrual loans

114,958

97,170

100,168

80,453

82,075

Other real estate owned

-

-

-

-

-

Total nonperforming assets

$

114,958

$

97,170

$

100,168

$

80,453

$

82,075

Nonperforming loans to total loans

1.97%

1.69

%

1.81%

1.51

%

1.56%

Nonperforming assets to total assets

1.60%

1.36

%

1.43%

1.18

%

1.26%

Performing modifications (A)(B)

$

111,962

$

63,259

$

45,846

$

51,796

$

26,788

Loans past due 30 through 89 days and still accruing

$

15,522

$

28,323

$

4,870

$

31,446

$

34,714

Loans subject to special mention

$

86,907

$

75,248

$

46,518

$

113,655

$

140,791

Classified loans

$

145,783

$

142,273

$

145,394

$

147,422

$

128,311

Individually evaluated loans

$

114,958

$

97,170

$

99,775

$

79,972

$

81,802

Allowance for credit losses ("ACL"):

Beginning of quarter

$

75,150

$

72,992

$

71,283

$

67,984

$

66,251

Provision for credit losses (C)

6,577

4,494

1,753

1,227

3,901

(Charge-offs)/recoveries, net

43

(2,336)

(44)

2,072

(2,168)

End of quarter

$

81,770

$

75,150

$

72,992

$

71,283

$

67,984

ACL to nonperforming loans

71.13%

77.34%

72.87%

88.60%

82.83%

ACL to total loans

1.40%

1.31%

1.32%

1.34%

1.29%

Collectively evaluated ACL to total loans (D)

1.06%

1.09%

1.09%

1.16%

1.14%

(A) Amounts reflect modifications that are paying according to modified terms.

(B) Excludes modifications included in nonaccrual loans of $38.1 million at June 30, 2025, $3.9 million at March 31, 2025, $3.6 million at December 31, 2024, $3.7 million at September 30, 2024 and $3.2 million at June 30, 2024.

(C) Excludes a provision of $9,000 at June 30, 2025, a credit of $23,000 at March 31, 2025, a credit of $15,000 at December 31, 2024, a credit of $3,000 at September 30, 2024 and a provision of $10,000 at June 30, 2024 related to off-balance sheet commitments.

(D) Total ACL less reserves to loans individually evaluated equals collectively evaluated ACL.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)

As of

June 30,
2025

December 31,
2024

June 30,
2024

Capital Adequacy

Equity to total assets (A)

8.75%

8.64%

9.04%

Tangible equity to tangible assets (B)

8.18%

8.05%

8.40%

Book value per share (C)

$

35.71

$

34.45

$

33.30

Tangible book value per share (D)

$

33.19

$

31.89

$

30.73

Tangible equity to tangible assets excluding other comprehensive loss*

8.89%

8.92%

9.36%

Tangible book value per share excluding other comprehensive loss*

$

36.34

$

35.67

$

34.60

*Excludes other comprehensive loss of $55.6 million for the quarter ended June 30, 2025, $66.4 million for the quarter ended December 31, 2024, and $68.3 million for the quarter ended June 30, 2024. See Non-GAAP financial measures reconciliation included in these tables.

(A) Equity to total assets is calculated as total shareholders’ equity as a percentage of total assets at quarter end.

(B) Tangible equity and tangible assets are calculated by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. Tangible equity as a percentage of tangible assets at quarter end is calculated by dividing tangible equity by tangible assets at quarter end. See Non-GAAP financial measures reconciliation included in these tables.

(C) Book value per common share is calculated by dividing shareholders’ equity by quarter end common shares outstanding.

(D) Tangible book value per share excludes intangible assets. Tangible book value per share is calculated by dividing tangible equity by quarter end common shares outstanding. See Non-GAAP financial measures reconciliation tables.

As of

June 30,
2025

December 31,
2024

June 30,
2024

Regulatory Capital – Holding Company

Tier I leverage

$

639,537

8.94%

$

625,830

9.01%

$

609,299

9.45%

Tier I capital to risk-weighted assets

639,537

10.99

625,830

11.51

609,299

11.92

Common equity tier I capital ratio
to risk-weighted assets

639,531

10.99

625,824

11.51

609,287

11.92

Tier I & II capital to risk-weighted assets

811,322

13.94

806,404

14.84

792,684

15.50

Regulatory Capital – Bank

Tier I leverage (E)

$

714,365

9.99%

$

733,389

10.57%

$

717,557

11.14%

Tier I capital to risk-weighted assets (F)

714,365

12.29

733,389

13.50

717,557

14.05

Common equity tier I capital ratio
to risk-weighted assets (G)

714,359

12.29

733,383

13.50

717,545

14.05

Tier I & II capital to risk-weighted assets (H)

787,170

13.54

801,365

14.75

781,448

15.30

(E) Regulatory well capitalized standard (including capital conservation buffer) = 4.00% ($286 million)

(F) Regulatory well capitalized standard (including capital conservation buffer) = 8.50% ($494 million)

(G) Regulatory well capitalized standard (including capital conservation buffer) = 7.00% ($407 million)

(H) Regulatory well capitalized standard (including capital conservation buffer) = 10.50% ($611 million)

PEAPACK-GLADSTONE FINANCIAL CORPORATION
LOANS CLOSED
(Dollars in Thousands)
(Unaudited)

For the Quarters Ended

June 30,
2025

March 31,
2025

Dec 31,
2024

Sept 30,
2024

June 30,
2024

Residential loans retained

$

34,990

$

25,157

$

39,279

$

26,955

$

16,087

Residential loans sold

1,712

4,074

4,220

1,853

2,361

Total residential loans

36,702

29,231

43,499

28,808

18,448

Commercial real estate

24,086

47,280

15,800

4,300

2,600

Multifamily

73,350

6,800

12,550

11,295

4,330

Commercial (C&I) loans (A) (B)

200,671

257,282

432,115

242,829

103,065

SBA

7,090

5,928

5,964

9,106

8,200

Wealth lines of credit (A)

2,400

9,900

550

11,675

10,950

Total commercial loans

307,597

327,190

466,979

279,205

129,145

Installment loans

8,164

76,941

7,182

8,137

1,664

Home equity lines of credit (A)

5,154

4,805

10,236

10,421

4,787

Total loans closed

$

357,617

$

438,167

$

527,896

$

326,571

$

154,044

For the Six Months Ended

June 30,
2025

June 30,
2024

Residential loans retained

$

60,147

$

27,748

Residential loans sold

5,786

6,386

Total residential loans

65,933

34,134

Commercial real estate

71,366

14,100

Multifamily

80,150

6,230

Commercial (C&I) loans (A) (B)

457,953

248,868

SBA

13,018

10,990

Wealth lines of credit (A)

12,300

14,800

Total commercial loans

634,787

294,988

Installment loans

85,105

8,532

Home equity lines of credit (A)

9,959

6,890

Total loans closed

$

795,784

$

344,544

(A) Includes loans and lines of credit that closed in the period but not necessarily funded.

(B) Includes equipment finance.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
(Tax-Equivalent Basis, Dollars in Thousands)
(Unaudited)

For the Three Months Ended

June 30, 2025

June 30, 2024

Average
Balance

Income/
Expense

Annualized
Yield

Average
Balance

Income/
Expense

Annualized
Yield

ASSETS:

Interest-earning assets:

Investments:

Taxable (A)

$

1,037,598

$

8,370

3.23%

$

801,715

$

5,168

2.58%

Tax-exempt (A) (B)

-

-

-

-

-

-

Loans (B) (C):

Mortgages

640,955

7,138

4.45

576,944

5,582

3.87

Commercial mortgages

2,426,318

27,392

4.52

2,420,570

26,881

4.44

Commercial

2,539,929

42,015

6.62

2,191,370

37,067

6.77

Commercial construction

-

-

-

21,628

489

9.04

Installment

140,133

2,403

6.86

67,034

1,143

6.82

Home equity

50,613

946

7.48

36,576

748

8.18

Other

348

5

5.75

200

6

12.00

Total loans

5,798,296

79,899

5.51

5,314,322

71,916

5.41

Federal funds sold

-

-

-

-

-

-

Interest-earning deposits

183,584

1,618

3.53

207,287

2,418

4.67

Total interest-earning assets

7,019,478

89,887

5.12

%

6,323,324

79,502

5.03%

Noninterest-earning assets:

Cash and due from banks

8,237

7,537

Allowance for credit losses

(76,811)

(67,568)

Premises and equipment

35,501

24,820

Other assets

130,550

99,838

Total noninterest-earning assets

97,477

64,627

Total assets

$

7,116,955

$

6,387,951

LIABILITIES:

Interest-bearing deposits:

Checking

$

3,558,108

$

29,116

3.27%

$

3,094,386

$

29,252

3.78%

Money markets

950,891

6,544

2.75

791,385

6,016

3.04

Savings

104,114

147

0.56

105,825

96

0.36

Certificates of deposit – retail

447,422

4,002

3.58

504,313

5,367

4.26

Subtotal interest-bearing deposits

5,060,535

39,809

3.15

4,495,909

40,731

3.62

Interest-bearing demand – brokered

9,121

110

4.82

10,000

134

5.36

Certificates of deposit – brokered

-

-

-

98,642

1,242

5.04

Total interest-bearing deposits

5,069,656

39,919

3.15

4,604,551

42,107

3.66

Borrowings

44,656

505

4.52

27,247

381

5.59

Capital lease obligation

1,283

13

4.05

2,869

22

3.07

Subordinated debt

98,905

924

3.74

133,377

1,686

5.06

Total interest-bearing liabilities

5,214,500

41,361

3.17%

4,768,044

44,196

3.71%

Noninterest-bearing liabilities:

Demand deposits

1,172,535

945,231

Accrued expenses and other liabilities

108,020

97,470

Total noninterest-bearing liabilities

1,280,555

1,042,701

Shareholders’ equity

621,900

577,206

Total liabilities and shareholders’ equity

$

7,116,955

$

6,387,951

Net interest income

$

48,526

$

35,306

Net interest spread

1.95%

1.32%

Net interest margin (D)

2.77%

2.25%

(A) Average balances for available for sale securities are based on amortized cost.

(B) Interest income is presented on a tax-equivalent basis using a 21% federal tax rate.

(C) Loans are stated net of unearned income and include nonaccrual loans.

(D) Net interest income on a tax-equivalent basis as a percentage of total average interest-earning assets.

PEAPACK-GLADSTONE FINANCIAL CORPORATION
AVERAGE BALANCE SHEET
(Tax-Equivalent Basis, Dollars in Thousands)
(Unaudited)

For the Three Months Ended

June 30, 2025

March 31, 2025

Average
Balance

Income/
Expense

Annualized
Yield

Average
Balance

Income/
Expense

Annualized
Yield

ASSETS:

Interest-earning assets:

Investments:

Taxable (A)

$

1,037,598

$

8,370

3.23

%

$

1,032,257

$

8,213

3.18%

Tax-exempt (A) (B)

-

-

-

-

-

-

Loans (B) (C):

Mortgages

640,955

7,138

4.45

617,185

6,670

4.32

Commercial mortgages

2,426,318

27,392

4.52

2,384,542

26,179

4.39

Commercial

2,539,929

42,015

6.62

2,432,862

40,104

6.59

Commercial construction

-

-

0.00

-

-

-

Installment

140,133

2,403

6.86

107,506

1,793

6.67

Home equity

50,613

946

7.48

45,949

845

7.36

Other

348

5

5.75

304

5

6.58

Total loans

5,798,296

79,899

5.51

5,588,348

75,596

5.41

Federal funds sold

-

-

-

-

-

-

Interest-earning deposits

183,584

1,618

3.53

290,702

2,776

3.82

Total interest-earning assets

7,019,478

89,887

5.12

%

6,911,307

86,585

5.01%

Noninterest-earning assets:

Cash and due from banks

8,237

8,380

Allowance for credit losses

(76,811)

(74,413)

Premises and equipment

35,501

29,954

Other assets

130,550

128,754

Total noninterest-earning assets

97,477

92,675

Total assets

$

7,116,955

$

7,003,982

LIABILITIES:

Interest-bearing deposits:

Checking

$

3,558,108

$

29,116

3.27

%

$

3,445,903

$

28,078

3.26%

Money markets

950,891

6,544

2.75

982,245

6,717

2.74

Savings

104,114

147

0.56

106,073

118

0.44

Certificates of deposit – retail

447,422

4,002

3.58

468,176

4,363

3.73

Subtotal interest-bearing deposits

5,060,535

39,809

3.15

5,002,397

39,276

3.14

Interest-bearing demand – brokered

9,121

110

4.82

10,000

100

4.00

Certificates of deposit – brokered

-

-

-

-

-

-

Total interest-bearing deposits

5,069,656

39,919

3.15

5,012,397

39,376

3.14

Borrowings

44,656

505

4.52

1,001

11

4.54

Capital lease obligation

1,283

13

4.05

1,322

14

4.20

Subordinated debt

98,905

924

3.74

126,641

1,439

4.55

Total interest-bearing liabilities

5,214,500

41,361

3.17%

5,141,361

40,840

3.18%

Noninterest-bearing liabilities:

Demand deposits

1,172,535

1,122,191

Accrued expenses and other liabilities

108,020

129,857

Total noninterest-bearing liabilities

1,280,555

1,252,048

Shareholders’ equity

621,900

610,573