BEDMINSTER, N.J., July 27, 2026 (GLOBE NEWSWIRE) -- Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the "Company") announces its second quarter 2026 financial results.
This earnings release should be read in conjunction with the Company’s Q2 2026 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.
The Company reported second quarter 2026 financial results that reflect continued execution of its private banking strategy and demonstrate accelerating earnings momentum. Revenue increased for the ninth consecutive quarter while expense growth continued to normalize, producing another quarter of meaningful positive operating leverage. These results reflect the maturation of the Company's strategic investments across the Metropolitan New York market and reinforce management's confidence in the long-term earnings power of the franchise.
Douglas L. Kennedy, President and CEO stated, “During the industry disruption of 2023, we invested significantly to expand our presence in Metropolitan New York. Since then, we have added 20 experienced banking teams and nearly 200 professionals, opened our flagship financial center on Park Avenue, and rebranded the Company as Peapack Private Bank & Trust. These investments temporarily affected earnings, but they created the platform that is now producing sustained growth and improving profitability. "
Mr. Kennedy added, "These actions capture our unique brand that seamlessly combines traditional banking with wealth management delivered through a single point of contact. The quality of growth is very strong as our bankers continue to onboard longstanding relationships, introducing clients to a broader range of banking, treasury, and wealth solutions. This integrated approach is deepening relationships and allowing us to compete effectively with much larger institutions.”
Our second quarter results reflect continued momentum and sustainability in delivering enhanced shareholder value. Revenue grew by 23% year-over-year, while operating expenses increased by only 7%, producing approximately 70% growth in pre-provision net revenue year-over-year. This positive operating leverage led to net income available to common shareholders of $15.8 million, or $0.85 per diluted share for the second quarter, compared to $14.2 million, or $0.80 per diluted share, for the linked quarter and $7.9 million, or $0.45 per diluted share for the June 30, 2025 quarter. This led to an increase of 11% of net income on a linked quarter basis and earnings per diluted share increased 89% year-over-year.
During the first quarter the Company also announced a commitment by Strategic Value Bank Partners to purchase up to $50 million of convertible preferred stock. Strategic Value Bank Partners is a well-known, long-term investor primarily focused on the banking sector. The commitment included an initial $30 million private placement of the preferred stock which closed during March 2026 with the ability to issue an additional $20 million through the end of 2027. Based on this quarter’s results and our continued momentum and projected growth, we elected to issue the remaining $20 million of our 6% non-cumulative perpetual convertible preferred stock on July 24, 2026. Mr. Kennedy added, “We remain focused on maintaining the capital necessary to support growth prudently. The additional preferred equity enhances our financial flexibility as earnings continue to strengthen and move the Company toward greater organic capital generation.”
Second Quarter Highlights:
- Net income available to common shareholders of $15.8 million, or $0.85 per diluted share
- Total revenue of $86.1 million, representing the ninth consecutive quarter of revenue growth
- Net interest income: $63.9 million, up 7% on a linked quarter and 32% year-over-year
- Net interest margin: 3.32%, an increase of 6 basis points compared to the previous quarter and 55 basis points year-over-year
- Loan growth: $6.7 billion in total loans, an increase of $854 million year-over-year
- Deposits: $7.1 billion at June 30, 2026, an increase of $694 million year-over-year
- Wealth management: $13.9 billion in assets under management and administration, up 13% year-over-year
- Wealth management fee income: $17.2 million or 20% of total revenue
- Shareholders' equity: $715.8 million at June 30, 2026, an increase of $86 million year-over-year
- Shareholder value: Tangible book value per share increased 9% year-over-year to $36.26. Book value per share increased 8% year-over-year to $38.70
Earnings and Operating Leverage
The Company had strong revenue growth of 23% year-over-year, with total revenue of $86.1 million for the second quarter of 2026, compared to $82.5 million for the first quarter of 2026 and $69.7 million for the second quarter of 2025. Revenue growth has been primarily attributable to the consistent improvement in net interest income over the last twelve months. The increase in revenue growth translated into higher earnings driving positive operating leverage and improved profitability.
Operating expenses continued to normalize this quarter, increasing at a more moderate pace to $55.7 million for the second quarter of 2026, compared to $55.4 million for the first quarter of 2026 and $51.9 million for the second quarter of 2025. The GAAP efficiency ratio improved for a seventh consecutive quarter to approximately 65%.
Net Interest Income and Margin
Net interest income totaled $63.9 million for the second quarter of 2026, an increase of $4.0 million, or 7%, from the first quarter of 2026 and an increase of $15.6 million, or 32%, from the second quarter of 2025. Net interest margin expanded to 3.32% compared to 3.26% in the prior quarter and 2.77% in the second quarter of 2025, continuing the upward trend over the past several quarters. This improvement in net interest income and net interest margin was primarily supported by balance sheet repositioning, disciplined pricing and improved earning-asset yields.
Loans / Commercial Banking
Total loans increased $235.9 million, or 15% annualized, to $6.7 billion at June 30, 2026, compared to $6.4 billion at March 31, 2026. Loans increased year-over-year $854.1 million, or 15%. Growth remained concentrated in our core areas of strength, particularly C&I and commercial real estate. Commercial mortgage activity was bolstered by sponsor demand for stabilized assets and refinancing activity. C&I growth was driven by business expansion and capital investment. Total C&I loans and leases at June 30, 2026 were $2.9 billion, or 44% of the total loan portfolio.
Mr. Kennedy noted, “The quality of our loan growth remains as important as the pace of growth. Our bankers are onboarding core relationships and connecting commercial banking, personal banking, treasury management and wealth management through a single point of contact. This model allows us to deepen the connection with our customers and compete effectively against much larger institutions."
Wealth Management
John Babcock, President of the Bank’s Wealth Management Division, stated, “Wealth Management delivered another strong quarter, supported by $205 million of gross client inflows and favorable market performance. Our integrated model continues to create opportunities to introduce investment management, trust, tax, financial planning and other advisory services to banking relationships, while also delivering banking and credit solutions to wealth clients.”
Funding / Liquidity / Interest Rate Risk Management
Total deposits increased $230.8 million, or 14% annualized, to $7.1 billion at June 30, 2026, from $6.8 billion at March 31, 2026. Relationship-based deposits have created solid franchise value for our Company. Noninterest-bearing deposits increased by $79.7 million during the quarter, which represented 56% of the deposit growth over the last twelve months and a meaningful portion of total funding, supporting both margin expansion and balance sheet stability.
The Company’s liquidity profile remains strong with a loan-to-deposit ratio of 95%. At June 30, 2026, the Company’s balance sheet liquidity totaled $1.0 billion, or 13% of total assets. The Company maintains additional liquidity resources of approximately $4.0 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 $5.0 billion at June 30, 2026, which amounted to 204% of the total uninsured/uncollateralized deposits currently on the Company’s balance sheet. The Company continues to maintain a well-diversified funding base with a high level of operating deposits and no reliance on brokered funding.
Asset Quality / Provision for Credit Losses
Nonperforming assets increased to $72.2 million, or 0.91% of total assets compared to $59.3 million, or 0.77% of total assets, at March 31, 2026. The increase in nonperforming assets during the second quarter of 2026 was largely driven by the migration of a previously disclosed larger well secured multifamily relationship to nonaccrual status. Loans past due 30 through 89 days and still accruing increased slightly to $48.1 million, or 0.72% of total loans at June 30, 2026, compared to $47.1 million, or 0.73% of total loans, at March 31, 2026. Loans subject to special mention and performing modifications have declined in the second quarter of 2026.
Mr. Kennedy noted, “We continue to manage credit issues proactively and conservatively. While isolated relationships have affected certain credit metrics, criticized and classified loan trends have improved over time, reserve coverage remains appropriate and we continue to see no evidence of broad-based deterioration across the portfolio."
The provision for credit losses totaled $8.1 million for the second quarter of 2026, compared to $7.3 million for the first quarter of 2026 and $6.6 million for the June 30, 2025 quarter. The second quarter provision was primarily attributable to loan growth of $235.9 million resulting in a provision of $2.9 million, in addition to changes in specific reserves which required a provision of $3.9 million.
At June 30, 2026, the allowance for credit losses ("ACL") was $69.2 million (1.04% of total loans), compared to $67.0 million (1.04% of total loans) at March 31, 2026. The increase in the ACL was due to the provision for credit losses of $8.1 million partially offset by net charge-offs of $5.9 million. Charge-offs consisted of $6.1 million during the period associated with the sale of one multifamily loan with a balance totaling $7.2 million. Specific reserves of $2.4 million, related to this charge-off, had been established in prior periods. This charge-off was partially offset by recoveries of $231,000 during the second quarter of 2026.
Capital
The Company’s capital position remained solid during the second quarter of 2026 and continued to benefit from earnings generation. Based on this quarter’s results and our continued momentum, we elected in July to issue the remaining $20 million of our 6% non-cumulative perpetual convertible preferred stock available under the $50 million commitment announced in the first quarter. Based on current results, projected growth and capital needs, management determined that completing the remaining issuance was appropriate to support continued relationship-based balance sheet growth, while maintaining prudent capital levels.
Tangible book value per share increased 9% to $36.26 per share at June 30, 2026 from $33.19 at June 30, 2025. See Non-GAAP financial measures reconciliation included in these tables. Book value per share increased 8% to $38.70 per share at June 30, 2026 compared to $35.71 at June 30, 2025.
The Company’s and Bank’s regulatory capital ratios as of June 30, 2026 remain strong. The Tier 1 Leverage Ratio at June 30, 2026 was 8.96% for the Bank and 9.13% for the Company, while the Common Equity Tier 1 Ratio was 10.60% for the Bank and 10.38% for the Company. Where applicable, such ratios remain well above regulatory well capitalized standards.
Investor Conference Call
Peapack-Gladstone Financial Corporation's CEO Douglas Kennedy will host a conference call with investors and the financial community on July 28, 2026 at 11:00 a.m. (ET) to review second quarter 2026 financial results. The live audio webcast and presentation slides will be available using the following link: https://events.q4inc.com/attendee/134224446. Investor presentation materials will be made available prior to the conference call by going to the Investor Relations page on our Company website at www.peapackprivate.com. A replay will be available under the Events & Presentation section on our Investor Relations website.
ABOUT THE COMPANY
Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $8.0 billion and assets under management and/or administration of $13.9 billion as of June 30, 2026. 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 2026 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 of 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;
- changes in the methodology and assumptions used to calculate the 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, trade restrictions and retaliatory measures impacting our borrowers and the broader economy;
- the impact of any federal government shutdown, debt ceiling impasses or fiscal uncertainty;
- the failure to maintain current technologies and/or to successfully implement future information technology enhancements and the operational risks associated with the adoption of artificial intelligence and other emerging technologies;
- risks associated with cybersecurity threats, data breaches, ransomware attacks, or other failures in our operational or security systems and infrastructure, including the risks arising from our dependence on third-party service providers and vendors;
- 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 and Long Island;
- 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 attract and retain key employees;
- demand 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 and fiscal 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, 2025. 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.
(Tables to follow)
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except per share data)
(Unaudited)
For the Three Months Ended June 30, March 31, Dec 31, Sept 30, June 30, 2026 2026 2025 2025 2025 Income Statement Data: Interest income$100,210 $95,049 $93,984 $92,545 $89,651 Interest expense 36,289 35,153 37,442 41,972 41,361 Net interest income 63,921 59,896 56,542 50,573 48,290 Wealth management fee income 17,220 16,503 16,064 15,798 15,943 Service charges and fees 1,390 1,359 1,317 1,184 1,194 Capital markets revenue 925 544 873 901 799 Other income 2,596 4,191 3,405 2,238 3,515 Total other income 22,131 22,597 21,659 20,121 21,451 Total revenue 86,052 82,493 78,201 70,694 69,741 Compensation expense 29,352 29,782 28,399 28,613 28,232 Benefits expense 10,250 9,583 8,397 8,143 7,829 Premises and equipment 7,009 6,858 7,142 6,676 6,641 FDIC insurance expense 1,495 1,388 1,565 1,345 1,045 Professional and legal fees 1,532 1,554 1,868 1,972 1,645 Trust department expense 1,189 1,180 1,139 1,111 1,092 Loan expense 687 556 905 475 939 Advertising 468 267 329 651 919 Other expenses 3,685 4,272 3,794 3,311 3,551 Total operating expenses 55,667 55,440 53,538 52,297 51,893 Pretax income before provision for credit losses 30,385 27,053 24,663 18,397 17,848 Provision for credit losses 8,088 7,327 7,671 4,790 6,586 Income before income taxes 22,297 19,726 16,992 13,607 11,262 Income tax expense 6,325 5,573 4,833 3,976 3,321 Net Income 15,972 14,153 12,159 9,631 7,941 Dividends on preferred stock 195 — — — — Net income available to common shareholders$15,777 $14,153 $12,159 $9,631 $7,941 Per Common Share Data: Earnings per share (basic)$0.89 $0.80 $0.69 $0.55 $0.45 Earnings per share (diluted) 0.85 0.80 0.69 0.54 0.45 Weighted average number of common
shares outstanding: Basic 17,717,883 17,585,846 17,558,019 17,576,899 17,704,110 Diluted 18,625,408 17,760,678 17,705,355 17,686,979 17,773,237 Performance Ratios: Return on average assets annualized (ROAA) 0.80% 0.74% 0.65% 0.53% 0.45%Return on average equity annualized (ROAE) 8.94% 8.51% 7.51% 6.12% 5.11%Return on average tangible common equity annualized (ROATCE) (A) 9.98% 9.13% 8.06% 6.59% 5.50%Net interest margin (tax-equivalent basis) 3.32% 3.26% 3.08% 2.81% 2.77%GAAP efficiency ratio (B) 64.69% 67.21% 68.46% 73.98% 74.41%Operating expenses / average assets annualized 2.83% 2.92% 2.88% 2.87% 2.92%
(A) Return on average tangible common equity is calculated by dividing tangible common equity by annualized net income available to common shareholders. 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.
SELECTED CONSOLIDATED FINANCIAL DATA
(Dollars in Thousands, except per share data)
(Unaudited)
For the Six Months Ended June 30, Change 2026 2025 $ % Income Statement Data: Interest income$195,259 $175,996 $19,263 11%Interest expense 71,442 82,201 (10,759) -13%Net interest income 123,817 93,795 30,022 32%Wealth management fee income 33,723 31,378 2,345 7%Service charges and fees 2,749 2,306 443 19%Capital markets revenue 1,469 1,254 215 17%Other income 6,787 5,367 1,420 26%Total other income 44,728 40,305 4,423 11% Total revenue 168,545 134,100 34,445 26% Compensation expense 59,134 54,547 4,587 8%Benefits expense 19,833 17,393 2,440 14%Premises and equipment 13,867 12,795 1,072 8%FDIC insurance expense 2,883 1,900 983 52%Professional and legal fees 3,086 2,835 251 9%Trust department expense 2,369 2,135 234 11%Loan expense 1,243 1,372 (129) -9%Advertising 735 1,073 (338) -32%Other expenses 7,957 7,283 674 9%Total operating expenses 111,107 101,333 9,774 10%Pretax income before provision for credit losses 57,438 32,767 24,671 75%Provision for credit losses 15,415 11,057 4,358 39%Income before income taxes 42,023 21,710 20,313 94%Income tax expense 11,898 6,174 5,724 93%Net Income 30,125 15,536 14,589 94%Dividends on preferred stock 195 — 195 N/A Net income available to common shareholders$29,930 $15,536 $14,394 93% Per Common Share Data: Earnings per share (basic)$1.70 $0.88 $0.82 93%Earnings per share (diluted) 1.64 0.87 0.77 89%Weighted average number of common shares outstanding: Basic 17,652,229 17,657,771 (5,542) 0%Diluted 18,213,905 17,799,095 414,810 2%Performance Ratios: Return on average assets (ROAA) 0.77% 0.44% 0.33% 76%Return on average equity (ROAE) 8.73% 5.04% 3.69% 73%Return on average tangible common equity (ROATCE) (A) 9.56% 5.44% 4.12% 76%Net interest margin (tax-equivalent basis) 3.29% 2.73% 0.56% 21%GAAP efficiency ratio (B) 65.92% 75.57% (9.65)% -13%Operating expenses / average assets 2.87% 2.87% 0.00% 0%
(A) Return on average tangible common equity is calculated by dividing tangible common equity by annualized net income available to common shareholders. 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.
CONSOLIDATED STATEMENTS OF CONDITION
(Dollars in Thousands)
(Unaudited)
As of June 30, March 31, Dec 31, Sept 30, June 30, 2026 2026 2025 2025 2025 ASSETS Cash and due from banks$8,388 $9,220 $8,712 $8,514 $7,524 Interest-earning deposits 245,506 244,194 179,108 338,672 308,078 Total cash and cash equivalents 253,894 253,414 187,820 347,186 315,602 Securities available for sale 752,440 710,046 774,203 756,578 767,533 Securities held to maturity 78,560 79,478 95,862 97,414 98,623 CRA equity security, at fair value 13,320 13,375 13,459 13,403 13,278 FHLB and FRB stock, at cost (A) 12,931 14,170 14,605 11,387 11,467 Residential mortgage 679,234 662,949 648,216 649,523 649,703 Multifamily mortgage 1,804,380 1,824,882 1,862,592 1,796,533 1,794,854 Commercial mortgage 981,896 887,712 774,428 689,166 643,520 Commercial and industrial loans 2,935,914 2,797,352 2,726,379 2,662,661 2,543,092 Consumer loans 220,961 210,731 187,360 171,811 140,668 Home equity lines of credit 55,136 58,194 59,306 57,166 52,434 Other loans 1,108 860 342 405 261 Total loans 6,678,629 6,442,680 6,258,623 6,027,265 5,824,532 Less: Allowance for credit losses 69,167 67,026 71,039 68,642 81,770 Net loans 6,609,462 6,375,654 6,187,584 5,958,623 5,742,762 Premises and equipment 40,830 39,322 39,164 37,756 36,626 Other real estate owned 908 — — — — Accrued interest receivable 34,060 33,115 31,971 34,120 33,209 Bank owned life insurance 48,071 47,896 47,761 48,381 48,239 Goodwill and other intangible assets 43,352 43,595 43,839 44,111 44,383 Finance lease right-of-use assets 774 809 844 879 914 Operating lease right-of-use assets 38,098 38,079 39,886 37,692 38,291 Other assets 43,593 50,012 49,411 52,112 49,746 TOTAL ASSETS$7,970,293 $7,698,965 $7,526,409 $7,439,642 $7,200,673 LIABILITIES Deposits: Noninterest-bearing demand deposits$1,624,244 $1,544,515 $1,428,745 $1,323,492 $1,237,864 Interest-bearing demand deposits 3,497,096 3,533,203 3,448,497 3,509,403 3,483,295 Savings 111,710 114,955 105,123 104,524 103,846 Money market accounts 1,448,916 1,222,405 1,197,995 1,226,506 1,095,665 Certificates of deposit – Retail 375,633 411,688 408,219 397,338 440,612 Certificates of deposit – Listing Service — — 400 899 1,841 Total deposits 7,057,599 6,826,766 6,588,979 6,562,162 6,363,123 Short-term borrowings 74,854 63,830 73,267 — — Finance lease liability 1,103 1,145 1,186 1,227 1,268 Operating lease liability 41,493 41,458 43,294 41,139 41,806 Subordinated debt, net — — 99,030 98,981 98,933 Due to brokers 9,642 — — 25,125 — Other liabilities 69,817 66,562 62,447 68,458 65,766 TOTAL LIABILITIES 7,254,508 6,999,761 6,868,203 6,797,092 6,570,896 Shareholders’ equity 715,785 699,204 658,206 642,550 629,777 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$7,970,293 $7,698,965 $7,526,409 $7,439,642 $7,200,673 Assets under management and / or administration at Peapack Private Bank & Trust's Wealth Management Division (market value, not included above-dollars in billions)$13.9 $13.1 $13.1 $12.9 $12.3
(A) FHLB means "Federal Home Loan Bank" and FRB means "Federal Reserve Bank."
PEAPACK-GLADSTONE FINANCIAL CORPORATIONSELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
As of June 30, March 31, Dec 31, Sept 30, June 30, 2026 2026 2025 2025 2025 Asset Quality: Loans past due over 90 days and still accruing (A)$3,300 $— $— $— $— Nonaccrual loans 68,034 59,321 68,243 84,142 114,958 Other real estate owned 908 — — — — Total nonperforming assets$72,242 $59,321 $68,243 $84,142 $114,958 Nonperforming loans to total loans 1.07% 0.92% 1.09% 1.40% 1.97%Nonperforming assets to total assets 0.91% 0.77% 0.91% 1.13% 1.60% Performing modifications (B)(C)$27,268 $85,835 $95,266 $101,501 $111,962 Loans past due 30 through 89 days and still accruing (D)$48,080 $47,053 $26,555 $28,817 $15,522 Loans subject to special mention$59,832 $75,935 $51,027 $56,534 $86,907 Classified loans$97,713 $90,583 $118,912 $134,982 $145,783 Individually evaluated loans$68,034 $59,321 $68,243 $84,142 $114,958 Allowance for credit losses ("ACL"): Beginning of quarter$67,026 $71,039 $68,642 $81,770 $75,150 Provision for credit losses (E) 8,012 7,322 7,659 4,871 6,577 (Charge-offs)/recoveries, net (F) (5,871) (11,335) (5,262) (17,999) 43 End of quarter$69,167 $67,026 $71,039 $68,642 $81,770 ACL to nonperforming loans 96.96% 112.99% 104.10% 81.58% 71.13%ACL to total loans 1.04% 1.04% 1.14% 1.14% 1.40%Collectively evaluated ACL to total loans (G) 0.97% 0.94% 0.94% 0.95% 1.06%
(A) Related to one matured, well secured multifamily loan. Closing is pending resolution of certain legal matters.
(B) Amounts reflect modifications that are paying according to modified terms.
(C) Excludes modifications included in nonaccrual loans of $21.6 million at June 30, 2026, $19.6 million at March 31, 2026, $36.0 million at December 31, 2025, $37.6 million at September 30, 2025, and $38.1 million at June 30, 2025.
(D) Includes one equipment financing relationship of $10.3 million that was in the process of restructuring at June 30, 2026.
(E) Excludes provision of $76,000 at June 30, 2026, provision of $5,000 at March 31, 2026, provision of $12,000 at December 31, 2025, a credit of $81,000 at September 30, 2025, and provision of $9,000 at June 30, 2025.
(F) Includes charge-offs of $4.8 million related to one multifamily loan and $995,000 related to one commercial mortgage for the quarter ended June 30, 2026. Includes charge-offs of $7.8 million related to two commercial and industrial loans and $3.5 million to one multifamily loan for the quarter ended March 31, 2026. Includes charge-offs of $6.3 million related to two multifamily loans for the quarter ended December 31, 2025. Includes charge-offs of $6.7 million related to three multifamily loans and $11.3 million related to one equipment financing relationship for the quarter ended September 30, 2025.
(G) Total ACL less reserves to loans individually evaluated equals collectively evaluated ACL.
SELECTED BALANCE SHEET DATA
(Dollars in Thousands)
(Unaudited)
As of June 30, Dec 31, June 30, 2026 2025 2025 Capital Adequacy Common equity to total assets (A) 8.60% 8.75% 8.75%Tangible common equity to tangible assets (B) 8.10% 8.21% 8.18%Book value per share (C)$38.70 $37.49 $35.71 Tangible book value per share (D)$36.26 $34.99 $33.19
(A) Common equity to total assets is calculated as total shareholders’ equity, less preferred stock, as a percentage of total assets at quarter end.
(B) Tangible common equity is calculated by subtracting goodwill, other intangible assets and preferred stock from shareholders' equity. Tangible assets is calculated by subtracting the balance of goodwill and other intangible assets from total assets. Tangible common equity as a percentage of tangible assets at quarter end is calculated by dividing tangible common 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, less preferred stock, by quarter end common shares outstanding.
(D) Tangible book value per share excludes goodwill and other intangible assets. Tangible book value per share is calculated by dividing tangible common equity by quarter end common shares outstanding. See Non-GAAP financial measures reconciliation tables.
(E) Regulatory well capitalized standard (including capital conservation buffer) = 4.00% ($315 million)
(F) Regulatory well capitalized standard (including capital conservation buffer) = 8.50% ($566 million)
(G) Regulatory well capitalized standard (including capital conservation buffer) = 7.00% ($466 million)
(H) Regulatory well capitalized standard (including capital conservation buffer) = 10.50% ($699 million)
LOANS CLOSED
(Dollars in Thousands)
(Unaudited)
For the Quarters Ended June 30, March 31, Dec 31, Sept 30, June 30, 2026 2026 2025 2025 2025 Residential loans retained$52,253 $29,376 $18,993 $18,323 $34,990 Residential loans sold 4,792 4,680 2,544 445 1,712 Total residential loans 57,045 34,056 21,537 18,768 36,702 Commercial real estate 136,077 138,570 130,790 78,825 24,086 Multifamily 46,500 31,825 100,611 47,991 73,350 Commercial (C&I) loans (A) (B) 383,129 274,269 358,468 453,554 200,671 SBA — 11,445 2,666 6,821 7,090 Wealth lines of credit (A) 23,255 5,225 3,925 2,700 2,400 Total commercial loans 588,961 461,334 596,460 589,891 307,597 Installment loans 26,844 30,171 40,428 47,115 8,164 Home equity lines of credit (A) 4,369 6,638 3,929 11,755 5,154 Total loans closed$677,219 $532,199 $662,354 $667,529 $357,617
(A) Includes loans and lines of credit that closed in the period but not necessarily funded.
(B) Includes equipment finance.
(A) Includes loans and lines of credit that closed in the period but not necessarily funded.
(B) Includes equipment finance.
AVERAGE BALANCE SHEET
(Tax-Equivalent Basis, Dollars in Thousands)
(Unaudited)
For the Three Months Ended June 30, 2026 June 30, 2025 Average Income/ Annualized Average Income/ Annualized Balance Expense Yield Balance Expense Yield ASSETS: Interest-earning assets: Investments: Taxable (A)$902,433 $6,947 3.08% $1,037,598 $8,370 3.23% Loans (B) (C): Mortgages 674,171 8,121 4.82 640,955 7,138 4.45 Commercial mortgages 2,728,178 33,116 4.87 2,426,318 27,392 4.52 Commercial 2,854,290 45,245 6.34 2,539,929 42,015 6.62 Commercial construction 746 12 6.45 — — — Installment 219,354 3,457 6.32 140,133 2,403 6.86 Home equity 57,084 973 6.84 50,613 946 7.48 Other 1,079 4 1.49 348 5 5.75 Total loans 6,534,902 90,928 5.58 5,798,296 79,899 5.51 Interest-earning deposits 321,314 2,550 3.18 183,584 1,618 3.53 Total interest-earning assets 7,758,649 100,425 5.19% 7,019,478 89,887 5.12%Noninterest-earning assets: Cash and due from banks 7,865 8,237 Allowance for credit losses (66,991) (76,811) Premises and equipment 40,188 35,501 Other assets 131,214 130,550 Total noninterest-earning assets 112,276 97,477 Total assets$7,870,925 $7,116,955 LIABILITIES: Interest-bearing deposits: Checking$3,810,661 $25,306 2.66% $3,558,108 $29,116 3.27%Money markets 1,194,874 7,665 2.57 950,891 6,544 2.75 Savings 112,263 205 0.73 104,114 147 0.56 Certificates of deposit – retail 396,342 2,947 2.98 447,422 4,002 3.58 Subtotal interest-bearing deposits 5,514,140 36,123 2.63 5,060,535 39,809 3.15 Interest-bearing demand – brokered — — — 9,121 110 4.82 Total interest-bearing deposits 5,514,140 36,123 2.63 5,069,656 39,919 3.15 Borrowings 15,087 154 4.09 44,656 505 4.52 Capital lease obligation 1,118 12 4.31 1,283 13 4.05 Subordinated debt - - - 98,905 924 3.74 Total interest-bearing liabilities 5,530,345 36,289 2.63% 5,214,500 41,361 3.17%Noninterest-bearing liabilities: Demand deposits 1,528,479 1,172,535 Accrued expenses and other liabilities 106,295 108,020 Total noninterest-bearing liabilities 1,634,774 1,280,555 Shareholders’ equity 705,806 621,900 Total liabilities and shareholders’ equity$7,870,925 $7,116,955 Net interest income $64,136 $48,526 Net interest spread 2.56% 1.95%Net interest margin (D) 3.32% 2.77%
(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.
AVERAGE BALANCE SHEET
(Tax-Equivalent Basis, Dollars in Thousands)
(Unaudited)
For the Three Months Ended June 30, 2026 March 31, 2026 Average Income/ Annualized Average Income/ Annualized Balance Expense Yield Balance Expense Yield ASSETS: Interest-earning assets: Investments: Taxable (A)$902,433 $6,947 3.08% $934,080 $7,126 3.05% Loans (B) (C): Mortgages 674,171 8,121 4.82 656,719 7,958 4.85 Commercial mortgages 2,728,178 33,116 4.87 2,678,193 31,551 4.71 Commercial 2,854,290 45,245 6.34 2,773,733 43,359 6.25 Commercial construction 746 12 6.45 576 9 6.25 Installment 219,354 3,457 6.32 199,070 2,994 6.02 Home equity 57,084 973 6.84 55,816 936 6.71 Other 1,079 4 1.49 627 5 3.19 Total loans 6,534,902 90,928 5.58 6,364,734 86,812 5.46 Interest-earning deposits 321,314 2,550 3.18 188,404 1,325 2.81 Total interest-earning assets 7,758,649 100,425 5.19% 7,487,218 95,263 5.09%Noninterest-earning assets: Cash and due from banks 7,865 8,692 Allowance for credit losses (66,991) (71,767) Premises and equipment 40,188 39,336 Other assets 131,214 139,139 Total noninterest-earning assets 112,276 115,400 Total assets$7,870,925 $7,602,618 LIABILITIES: Interest-bearing deposits: Checking$3,810,661 $25,306 2.66% $3,713,856 $23,842 2.57%Money markets 1,194,874 7,665 2.57 1,070,606 6,368 2.38 Savings 112,263 205 0.73 111,872 193 0.69 Certificates of deposit – retail 396,342 2,947 2.98 411,628 3,099 3.01 Total interest-bearing deposits 5,514,140 36,123 2.63 5,307,962 33,502 2.52 Borrowings 15,087 154 4.09 45,262 432 3.82 Capital lease obligation 1,118 12 4.31 1,159 12 4.14 Subordinated debt - - - 66,026 1,207 7.31 Total interest-bearing liabilities 5,530,345 36,289 2.63% 5,420,409 35,153 2.59%Noninterest-bearing liabilities: Demand deposits 1,528,479 1,405,577 Accrued expenses and other liabilities 106,295 111,095 Total noninterest-bearing liabilities 1,634,774 1,516,672 Shareholders’ equity 705,806 665,537 Total liabilities and shareholders’ equity$7,870,925 $7,602,618 Net interest income $64,136 $60,110 Net interest spread 2.56% 2.50%Net interest margin (D) 3.32% 3.26%
(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.
AVERAGE BALANCE SHEET
(Tax-Equivalent Basis, Dollars in Thousands)
(Unaudited)
For the Six Months Ended June 30, 2026 June 30, 2025 Average Income/ Average Income/ Balance Expense Yield Balance Expense Yield ASSETS: Interest-earning assets: Investments: Taxable (A)$918,169 $14,073 3.07% $1,034,942 $16,583 3.20% Loans (B) (C): Mortgages 665,493 16,079 4.83 629,136 13,808 4.39 Commercial mortgages 2,703,324 64,667 4.82 2,405,546 53,571 4.45 Commercial 2,814,233 88,603 6.30 2,486,690 82,119 6.60 Commercial construction 662 21 6.40 — — — Installment 209,268 6,451 6.22 123,910 4,196 6.77 Home equity 56,453 1,909 6.82 48,294 1,791 7.42 Other 854 9 2.13 326 10 6.13 Total loans 6,450,287 177,739 5.56 5,693,902 155,495 5.46 Interest-earning deposits 255,226 3,875 3.06 236,847 4,394 3.71 Total interest-earning assets 7,623,682 195,687 5.18% 6,965,691 176,472 5.07%Noninterest-earning assets: Cash and due from banks 8,277 8,308 Allowance for credit losses (69,366) (75,618) Premises and equipment 39,764 32,743 Other assets 135,128 128,959 Total noninterest-earning assets 113,803 94,392 Total assets$7,737,485 $7,060,083 LIABILITIES: Interest-bearing deposits: Checking$3,762,526 $49,148 2.63% $3,502,315 $57,194 3.27%Money markets 1,133,083 14,033 2.50 966,481 13,261 2.74 Savings 112,069 398 0.72 105,088 265 0.50 Certificates of deposit – retail 403,943 6,046 3.02 457,742 8,365 3.65 Subtotal interest-bearing deposits 5,411,621 69,625 2.59 5,031,626 79,085 3.14 Interest-bearing demand – brokered — — — 9,558 210 4.39 Total interest-bearing deposits 5,411,621 69,625 2.59 5,041,184 79,295 3.15 Borrowings 30,091 586 3.93 22,949 516 4.50 Capital lease obligation 1,138 24 4.25 1,303 27 4.14 Subordinated debt 32,831 1,207 7.41 112,697 2,363 4.19 Total interest-bearing liabilities 5,475,681 71,442 2.63% 5,178,133 82,201 3.17%Noninterest-bearing liabilities: Demand deposits 1,467,367 1,147,502 Accrued expenses and other liabilities 108,654 118,181 Total noninterest-bearing liabilities 1,576,021 1,265,683 Shareholders’ equity 685,783 616,267 Total liabilities and shareholders’ equity$7,737,485 $7,060,083 Net interest income $124,245 $94,271 Net interest spread 2.55% 1.90%Net interest margin (D) 3.29% 2.73%
(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
NON-GAAP FINANCIAL MEASURES RECONCILIATION
Tangible book value per share and tangible common equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible common equity by subtracting goodwill, other intangible assets and preferred stock from total shareholders’ equity. Tangible assets are calculated by subtracting goodwill, and other intangible assets from total assets. We calculate tangible book value per share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing total common equity by common shares outstanding at period end. We calculate tangible common equity as a percentage of tangible assets at period end by dividing tangible common equity by tangible assets at period end. Management believes these non-GAAP measures are useful to investors in assessing the amount of capital attributable to common shareholders and facilitate comparisons with other banking organizations that use similar measures.
The efficiency ratio is a non-GAAP measure of expense control relative to recurring revenue. We calculate the efficiency ratio by dividing total noninterest expenses, excluding other real estate owned provision, as determined under GAAP, by net interest income and total noninterest income as determined under GAAP, but excluding net gains/(losses) on loans held for sale at lower of cost or fair value and excluding net gains on securities from this calculation, which we refer to below as recurring revenue. We believe that this provides a reasonable measure of core expenses relative to core revenue.
We believe these non-GAAP financial measures provide information that is important to investors and useful in understanding our financial position, results and ratios because our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible common equity, tangible book value per share and efficiency ratio to the underlying GAAP numbers is set forth below.
Three Months Ended June 30, March 31, Dec 31, Sept 30, June 30, Tangible Book Value Per Share2026 2026 2025 2025 2025 Shareholders’ equity$715,785 $699,204 $658,206 $642,550 $629,777 Less: preferred stock 30,000 30,000 — — — Total common equity 685,785 669,204 658,206 642,550 629,777 Less: intangible assets, net 43,352 43,595 43,839 44,111 44,383 Tangible common equity$642,433 $625,609 $614,367 $598,439 $585,394 Period end shares outstanding 17,718,733 17,708,327 17,558,019 17,548,471 17,636,264 Tangible book value per share$36.26 $35.33 $34.99 $34.10 $33.19 Book value per share 38.70 37.79 37.49 36.62 35.71 Tangible Equity to Tangible Assets Total assets$7,970,293 $7,698,965 $7,526,409 $7,439,642 $7,200,673 Less: intangible assets, net 43,352 43,595 43,839 44,111 44,383 Tangible assets$7,926,941 $7,655,370 $7,482,570 $7,395,531 $7,156,290 Tangible common equity to tangible assets 8.10% 8.17% 8.21% 8.09% 8.18%Common equity to assets 8.60% 8.69% 8.75% 8.64% 8.75%(Dollars in thousands, except per share data)
Three Months Ended June 30, March 31, Dec 31, Sept 30, June 30, Return on Average Tangible Equity2026 2026 2025 2025 2025 Net income available to common shareholders$15,777 $14,153 $12,159 $9,631 $7,941 Average shareholders’ equity$705,806 $665,537 $647,645 $629,091 $621,900 Less: average preferred stock 30,000 2,000 — — — Total average common equity 675,806 663,537 647,645 629,091 621,900 Less: average intangible assets, net 43,487 43,741 43,982 44,266 44,538 Total average tangible common equity$632,319 $619,796 $603,663 $584,825 $577,362 Return on average tangible common equity 9.98% 9.13% 8.06% 6.59% 5.50%(Dollars in thousands)
Three Months Ended June 30, March 31, Dec 31, Sept 30, June 30, Efficiency Ratio2026 2026 2025 2025 2025 Net interest income$63,921 $59,896 $56,542 $50,573 $48,290 Total other income 22,131 22,597 21,659 20,121 21,451 Add: Fair value adjustment for CRA equity security 55 84 (56) (125) (42)Less: Loss on loans held for sale at lower of cost or fair value — — — 364 — Income from life insurance proceeds — — (161) — Loss/(gain) on securities sale, net — 81 — — (7)Gain on sale of property — — (318) — — Gain on lease termination — — — — (875)Total recurring revenue 86,107 82,658 77,666 70,933 68,817 Operating expenses 55,667 55,440 53,538 52,297 51,893 Total operating expense 55,667 55,440 53,538 52,297 51,893 Efficiency ratio 64.65% 67.07% 68.93% 73.73% 75.41%Contact:
Frank A. Cavallaro, SEVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-306-8933