Peapack-Gladstone Financial Reports Strong Third Quarter Growth Fueled by Metro New York Expansion

Peapack-Gladstone Financial Corporation reported net income of $9.6 million and diluted earnings per share of $0.54 for the quarter ended September 30, 2025, representing a 21% increase compared to the previous quarter. The company's strategic expansion into Metro New York continues to drive substantial growth, 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 to $6.6 billion. Core relationship deposits surged $708 million during this period, with noninterest-bearing deposits growing by $211 million, representing a 19% increase. This deposit growth 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 increased $2.3 million, or 5%, on a linked quarter basis to $50.6 million for the third quarter. The net interest margin expanded to 2.81%, up from 2.77% in the second quarter and 2.34% in the prior year period. According to President and CEO Douglas L. Kennedy, "We continue to make significant progress with our Metro New York expansion. This momentum has enabled us to deliver a fourth consecutive quarter of positive operating leverage, grow core earnings by 54% over the last twelve months, drive improvement in earnings per share and tangible book value per share, all while absorbing significant investments in our expansion efforts."

The wealth management division showed strong performance, with assets under management and administration growing by $1.0 billion to $12.9 billion at September 30, 2025. 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. John Babcock, President of the Bank's Wealth Management Division, noted continued strong client inflows driven by new accounts and client additions.

Commercial banking activities demonstrated substantial growth, with total loans increasing $506 million to $6.0 billion. 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 positions, with tangible book value per share increasing 7% to $34.10 per share and regulatory capital ratios remaining well above well-capitalized standards.

Asset quality showed improvement as nonperforming assets declined by $31 million during the quarter to $84.1 million. Kennedy emphasized the company's aggressive approach to addressing problem credits while maintaining appropriate reserve coverage. The company's expansion efforts continued with the addition of an experienced equipment finance team in Long Island and three New York-based wealth advisors, reinforcing its transformation into Peapack Private Bank & Trust. Additional financial details are available in the Company's Q3 2025 Investor Update on their website at https://www.peapackprivate.com and via SEC filings at https://www.sec.gov.