Moody's Confirms Investment Grade Ratings for Peapack-Gladstone Financial Corporation

Peapack-Gladstone Financial Corporation (NASDAQ: PGC) and its banking subsidiary, Peapack-Gladstone Bank, have received confirmation of their investment grade ratings from Moody's Investors Service. The ratings agency confirmed a Baa3 long-term local currency issuer rating for the corporation and a baa2 baseline credit assessment for the bank, with outlooks changed to 'stable' from 'ratings under review.'

This confirmation concludes a review for possible downgrade initiated in June and underscores the financial institution's resilience in a challenging banking environment. Moody's decision was based on the company's sustained solid capital position and recent improvements in its funding and liquidity profile, which were deemed adequate to mitigate the bank's risk profile.

The rating agency highlighted the company's success in strengthening its funding and liquidity profile over the past year, noting that the overall funding structure remains a credit strength. Notably, the deposit base demonstrated resilience during the 2023 regional banking crisis, a factor that likely contributed to the positive assessment.

Douglas L. Kennedy, President and CEO of Peapack-Gladstone Financial Corporation, expressed satisfaction with the confirmation, stating it validates the strength of the company's current strategy and business model. The investment grade rating is significant as it can influence investor confidence, potentially impact borrowing costs, and affect the company's ability to attract and retain customers in the competitive financial services sector.

The confirmation of investment grade ratings comes at a time when the banking industry faces increased scrutiny following recent high-profile bank failures. For Peapack-Gladstone, maintaining this rating could provide a competitive advantage and reassure stakeholders about the institution's stability and risk management practices.

As of June 30, 2024, Peapack-Gladstone Financial Corporation reported total assets of $6.51 billion and assets under management and/or administration of $11.5 billion. The company's ability to maintain strong financial metrics in a challenging economic environment speaks to its operational efficiency and strategic positioning in the market.

The confirmation of investment grade ratings by Moody's, coupled with a similar affirmation from Kroll Bond Rating Agency in May 2024, positions Peapack-Gladstone Financial Corporation favorably in the financial services industry. These ratings serve as independent validations of the company's financial health and may contribute to its continued growth and success in serving its diverse clientele across retail, commercial, and wealth management sectors.