Peapack-Gladstone Financial Corporation Reports Strong Third Quarter 2025 Earnings Growth

Peapack-Gladstone Financial Corporation reported substantial financial growth for the third quarter of 2025, with net income reaching $9.6 million and diluted earnings per share of $0.54, representing a 21% increase compared to the previous quarter. The company's strategic expansion into Metro New York has been a key driver of this performance, with newly hired teams onboarding more than 850 new client relationships over the past two years, adding over $1.75 billion in core relationship deposits and more than $900 million in new loans.

Deposit growth remained robust through the first nine months of 2025, with total deposits increasing $433 million, or 7%, to $6.6 billion as of September 30, 2025. Core relationship deposits showed particularly strong performance, increasing $708 million during the nine-month period, with noninterest-bearing deposits growing by $211 million, or 19%. This deposit growth effectively funded $506 million of loan growth at a weighted average coupon of 6.75%, resulting in an incremental spread of more than 400 basis points.

Net interest income showed significant improvement, increasing $2.3 million, or 5%, on a linked quarter basis to $50.6 million for the third quarter of 2025 compared to $48.3 million for the second quarter. The net interest margin expanded to 2.81% for the quarter ended September 30, 2025, compared to 2.77% for the previous quarter and 2.34% for the same period in 2024. According to President and CEO Douglas L. Kennedy, the company delivered a fourth consecutive quarter of positive operating leverage and grew core earnings by 54% over the last twelve months.

The wealth management division demonstrated strong performance with assets under management and administration growing by $1.0 billion to $12.9 billion at September 30, 2025, compared to $11.9 billion at December 31, 2024. New business inflows for the third quarter totaled $214 million, and wealth management fee income reached $15.8 million, accounting for 22% of total revenue for the quarter. The company continues to expand its presence in key markets, adding an experienced equipment finance team in Long Island and three New York-based wealth advisors during the third quarter.

Commercial banking activities showed significant momentum with total loans increasing $506 million to $6.0 billion at September 30, 2025, from $5.5 billion at December 31, 2024. Commercial and industrial lending accounted for 69% of new business originations during the third quarter, with C&I balances representing 44% of the total loan portfolio. The company maintained strong capital ratios, with the Tier 1 Leverage Ratio at 9.89% for Peapack Private Bank & Trust and 8.86% for the Company, both significantly above well capitalized standards.

Asset quality showed improvement as nonperforming assets declined by $31 million in the quarter to $84.1 million, or 1.13% of total assets. The company aggressively addressed problem credits while maintaining appropriate reserve coverage. Tangible book value per share increased 7% to $34.10 per share at September 30, 2025, compared to $31.89 at December 31, 2024, reflecting the company's strong earnings momentum and capital preservation focus. Additional financial details are available in the Company's Q3 2025 Investor Update 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.