Bedminster, N.J. – July 27, 2026 – 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.”
1
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 $38.70
Key Financial Metrics
Q2 2026
Q1 2026
Q2 2025
Net income available to common shareholders ($ millions)
$
15.8
$
14.2
$
7.9
Diluted EPS
$
0.85
$
0.80
$
0.45
Net interest income ($ millions)
$
63.9
$
59.9
$
48.3
Net interest margin
3.32
%
3.26
%
2.77
%
Total revenue ($ millions)
$
86.1
$
82.5
$
69.7
Operating expenses ($ millions)
$
55.7
$
55.4
$
51.9
Pre-provision net revenue ($ millions)
$
30.4
$
27.1
$
17.8
Return on average assets (annualized)
0.80
%
0.74
%
0.45
%
Return on average equity (annualized)
8.94
%
8.51
%
5.11
%
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
2
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.”
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.
3
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.
4
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;
5
•
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)
6
PEAPACK-GLADSTONE FINANCIAL CORPORATION
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.
7
PEAPACK-GLADSTONE FINANCIAL CORPORATION
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.
8
PEAPACK-GLADSTONE FINANCIAL CORPORATION
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."
9
PEAPACK-GLADSTONE FINANCIAL CORPORATION
SELECTED 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.
10
PEAPACK-GLADSTONE FINANCIAL CORPORATION
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.
As of
June 30,
Dec 31,
June 30,
2026
2025
2025
Regulatory Capital – Holding Company
Tier I leverage
$
721,057
9.13%
$
660,696
8.87%
$
639,537
8.94%
Tier I capital to risk-weighted assets
721,057
10.83
660,696
10.33
639,537
10.99
Common equity tier I capital ratio to risk-weighted assets
690,998
10.38
660,637
10.33
639,531
10.99
Tier I & II capital to risk-weighted assets
790,916
11.88
811,375
12.68
811,322
13.94
Regulatory Capital – Bank
Tier I leverage (E)
$
705,511
8.96%
$
735,931
9.89%
$
714,365
9.99%
Tier I capital to risk-weighted assets (F)
705,511
10.60
735,931
11.52
714,365
12.29
Common equity tier I capital ratio to risk-weighted assets (G)
705,452
10.60
735,872
11.52
714,359
12.29
Tier I & II capital to risk-weighted assets (H)
775,370
11.65
807,580
12.64
787,170
13.54
(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)
11
PEAPACK-GLADSTONE FINANCIAL CORPORATION
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.
For the Six Months Ended
June 30,
June 30,
2026
2025
Residential loans retained
$
81,629
$
60,147
Residential loans sold
9,472
5,786
Total residential loans
91,101
65,933
Commercial real estate
274,647
71,366
Multifamily
78,325
80,150
Commercial (C&I) loans (A) (B)
657,398
457,953
SBA
11,445
13,018
Wealth lines of credit (A)
28,480
12,300
Total commercial loans
1,050,295
634,787
Installment loans
57,015
85,105
Home equity lines of credit (A)
11,007
9,959
Total loans closed
$
1,209,418
$
795,784
(A) Includes loans and lines of credit that closed in the period but not necessarily funded.
(B) Includes equipment finance.
12
PEAPACK-GLADSTONE FINANCIAL CORPORATION
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.
13
PEAPACK-GLADSTONE FINANCIAL CORPORATION
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.
14
PEAPACK-GLADSTONE FINANCIAL CORPORATION
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.
15
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 Share
2026
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
%
16
(Dollars in thousands, except per share data)
Three Months Ended
June 30,
March 31,
Dec 31,
Sept 30,
June 30,
Return on Average Tangible Equity
2026
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
%
For the Six Months Ended
June 30,
June 30,
Return on Average Tangible Equity
2026
2025
Net income available to common shareholders
$
29,930
$
15,536
Average shareholders’ equity
$
685,783
$
616,267
Less: average preferred stock
16,077
—
Total average common equity
669,706
616,267
Less: average intangible assets, net
43,614
44,676
Total average tangible common equity
$
626,092
$
571,591
Return on average tangible common equity
9.56
%
5.44
%
(Dollars in thousands)
Three Months Ended
June 30,
March 31,
Dec 31,
Sept 30,
June 30,
Efficiency Ratio
2026
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
%
17
For the Six Months Ended
June 30,
June 30,
Efficiency Ratio
2026
2025
Net interest income
$
123,817
$
93,795
Total other income
44,728
40,305
Add:
Fair value adjustment for CRA equity security
139
(237
)
Less:
Loss/(gain) on loans held for sale at lower of cost or fair value