PGC · Peapack-Gladstone Financial Corporation

Peapack-Gladstone’s Q1 2026 results reflect strong execution of its private banking strategy, marked by accelerating earnings momentum, disciplined balance sheet growth, and proactive capital management. Net income rose 86% year-over-year to $14.2 million, supported by an eighth consecutive quarter of net interest income growth and a 3.26% net interest margin — up 58 basis points year-over-year — driven by higher-yielding loan growth and a meaningful shift toward noninterest-bearing deposits (49% of Q1 deposit growth). Loan growth remained relationship-driven: total loans reached $6.4 billion, with commercial and industrial loans comprising 43% of the portfolio and growing 11% year-over-year, while commercial real estate activity focused on stabilized assets and sponsor demand. Deposit strength — $6.8 billion total, with NIB deposits now 23% of the total — underpinned funding stability and margin expansion, enabling strategic securities portfolio optimization without earnings impact. Asset quality improved further, with nonperforming assets declining to 0.77% of total assets, though early-stage delinquencies rose modestly due to one multifamily relationship. Capital actions were decisive: $30 million in preferred equity was issued (with up to $20 million additional capacity through 2027), and $100 million of subordinated debt was redeemed, improving Tier 1 Leverage to 9.24% and CET1 to 10.55%. Tangible book value per share grew 14% year-over-year to $37.02, reinforcing durable shareholder value creation. Management emphasized sustainability, citing six consecutive quarters of core earnings growth, positive operating leverage (efficiency ratio improved to 67%), and continued NYC/LI expansion delivering scalable client relationships and treasury management cross-sell opportunities.