Peapack-Gladstone Financial Reports Strong Fourth Quarter Growth Driven by Deposit Transformation and Wealth Management

Peapack-Gladstone Financial Corporation reported fourth quarter 2025 net income of $12.2 million, representing a 26% increase from the previous quarter and a 32% increase from the same period last year. Diluted earnings per share rose to $0.69 for the quarter, while full-year net income grew 13% to $37.3 million. The results demonstrate the company’s successful execution of its private banking strategy, particularly in transforming its deposit base and expanding its wealth management division.

The company’s net interest income increased $6.0 million, or 12%, on a linked quarter basis to $56.5 million, driven by improvement in the cost of interest-bearing liabilities and continued expansion of the net interest margin. The net interest margin expanded to 3.08% for the quarter ended December 31, 2025, compared to 2.81% for the previous quarter and 2.46% for the same period last year. This improvement reflects the company’s strategic focus on replacing higher-cost deposit balances with new relationships at lower funding costs.

Total deposits grew by a net amount of $460 million, or 8%, over the last twelve months to $6.6 billion at December 31, 2025. Core relationship deposits increased $828 million for the year, with noninterest-bearing demand deposits showing particularly strong growth of $316 million, or 28%, during 2025. Total loans grew by $738 million, or 13%, to $6.3 billion during the same period, with commercial and industrial lending accounting for 55% of new business originations during the fourth quarter.

The company’s wealth management division showed significant growth, with assets under management and administration increasing by $1.2 billion to $13.1 billion at December 31, 2025. Wealth management fee income totaled $16.1 million in the fourth quarter, representing 21% of total revenue for the period. New business inflows totaled $291 million in the quarter and $1.0 billion for the full year 2025, indicating strong client acquisition and retention.

President and CEO Douglas L. Kennedy stated that the results demonstrate the company’s ability to digest significant investments while delivering earnings growth and improved operating leverage. He emphasized that strong core deposit growth, disciplined pricing, and consistent execution have driven eight consecutive quarters of net interest income growth. Kennedy noted that the company’s private banking model continues to deliver stable fee income, deeper client relationships, and long-term growth opportunities, positioning Peapack Private Bank & Trust as a premier boutique alternative to larger institutions in the metro New York market.

The company’s capital position strengthened during the quarter, with tangible book value per share increasing 10% to $34.99 per share at December 31, 2025. Regulatory capital ratios remained well above well-capitalized standards, with the Tier 1 Leverage Ratio at 9.89% for the bank and 8.87% for the company. Asset quality showed improvement, with nonperforming assets decreasing to $68.2 million, or 0.91% of total assets, at December 31, 2025, compared to $84.1 million, or 1.13% of total assets, at the end of the previous quarter.

Additional financial details are available in the company’s Q4 2025 Investor Update, which can be accessed on their website at https://www.peapackprivate.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at https://www.sec.gov. The company declared a cash dividend of $0.05 per share payable on February 26, 2026 to shareholders of record on February 12, 2026, reflecting confidence in its financial position and ongoing performance.

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