EX-99.1 2 pgc-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

Contact:

Frank A. Cavallaro, SEVP and CFO

Peapack-Gladstone Financial Corporation

T: 908-306-8933

PEAPACK-GLADSTONE FINANCIAL CORPORATION

REPORTS FIRST QUARTER FINANCIAL RESULTS

 

Bedminster, N.J. – April 22, 2025 – Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the "Company") announces its first quarter 2025 financial results.

This earnings release should be read in conjunction with the Company’s Q1 2025 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.

During the first quarter of 2025, loans grew $236 million, to $5.8 billion, which represents an annualized growth rate of 17%. Core relationship deposit balances (which includes all deposits that are not custodial, brokered, or listing service) increased by $177 million in the first quarter of 2025, contributing to the ongoing enhancement of the Company’s total liquidity position, which has improved by $928 million, or 26%, since January 1, 2024. Total deposits increased to $6.3 billion at March 31, 2025.

The Company recorded net income of $7.6 million and diluted earnings per share (“EPS”) of $0.43 for the quarter ended March 31, 2025 compared to net income of $9.2 million and diluted EPS of $0.52 for the quarter ended December 31, 2024.

Net interest income increased $3.6 million, or 9%, on a linked quarter basis to $45.5 million for the first quarter of 2025 compared to $41.9 million for the fourth quarter of 2024. The growth in net interest income was driven by growth in average interest earning assets, as well as continued improvement in the net interest margin. The net interest margin increased to 2.68% for the quarter ended March 31, 2025 compared to 2.46% for the quarter ended December 31, 2024 and 2.20% for the quarter ended March 31, 2024. The Company has also achieved improved positive operating leverage for the second consecutive quarter.

Douglas L. Kennedy, President and CEO said, “Our Metro New York expansion continues to deliver results ahead of expectations. In less than two years since the initial hiring of experienced private banking teams in New York City, we have successfully on-boarded more than $1.2 billion in new core relationship deposit balances which are comprised of 30% in noninterest bearing demand account balances. The positive reception that we have received through these new customer relationships is generating momentum that has us extremely confident about our continued success in this market.”

Mr. Kennedy also noted, “We were also very pleased to announce the opening of our new marquee branch at 300 Park Avenue in New York City during the first quarter. This branch opening at a prime location in mid-town Manhattan combined with our re-branding to Peapack Private Bank & Trust demonstrates the evolution of our Company to become the premier boutique private bank in Metro New York.”

The following are select highlights for the period ended March 31, 2025:

 

Wealth Management:

 

•
AUM/AUA in our Wealth Management Division totaled $11.8 billion at March 31, 2025 compared to $11.5 billion at March 31, 2024.
•
New business inflows for Q1 2025 totaled $341 million.
•
Wealth Management fee income was $15.4 million in Q1 2025, which amounted to 24% of total revenue for the quarter.

 

Commercial Banking and Balance Sheet Management:

 

1

•
Total loans increased $236 million to $5.8 billion at March 31, 2025 from $5.5 billion at December 31, 2024.
•
Commercial and industrial lending (“C&I”) accounted for 60% of the new business originations during the first quarter. C&I balances grew to 44% of the total loan portfolio at March 31, 2025.
•
Total deposits increased by $158 million, to $6.3 billion at March 31, 2025 compared to $6.1 billion at December 31, 2024. Noninterest-bearing demand deposits grew $72 million during the first quarter, which represents 46% of the total deposit growth in the period.
•
Fee income on unused commercial lines of credit totaled $932,000 for Q1 2025.
•
The net interest margin ("NIM") was 2.68% for Q1 2025, an increase of 22 basis points compared to 2.46% for Q4 2024.

 

 

Capital Management:

 

•
Tangible book value per share increased 2% to $32.56 per share at March 31, 2025 compared to $31.89 at December 31, 2024. Book value per share increased 2% to $35.08 per share at March 31, 2025 compared to $34.45 at December 31, 2024. Tangible book value per share is a non-GAAP financial measure. See the reconciliation tables included in this release for further detail.
•
At March 31, 2025, the Tier 1 Leverage Ratio stood at 10.05% for Peapack Private Bank & Trust (the "Bank") and 8.98% for the Company. The Common Equity Tier 1 Ratio was 12.52% for the Bank and 11.19% for the Company at March 31, 2025. These ratios remain significantly above well capitalized standards, as capital continues to benefit from net income generation.

 

 

2

SUMMARY INCOME STATEMENT DETAILS:

The following tables summarize specified financial details for the periods shown.

 

March 2025 Quarter Compared to Prior Year Quarter

 

 

 

Three Months Ended

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

March 31,

 

 

 

March 31,

 

 

Increase/

 

(Dollars in millions, except per share data) (unaudited)

 

2025

 

 

 

2024

 

 

(Decrease)

 

Net interest income

 

$

45.51

 

 

 

$

34.38

 

 

$

11.13

 

 

 

32

%

Wealth management fee income

 

 

15.44

 

 

 

 

14.41

 

 

 

1.03

 

 

 

7

 

Capital markets activity

 

 

0.46

 

 

 

 

1.27

 

 

 

(0.81

)

 

 

(64

)

Other income

 

 

2.95

 

 

 

 

3.02

 

 

 

(0.07

)

 

 

(2

)

Total other income

 

 

18.85

 

 

 

 

18.70

 

 

 

0.15

 

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue

 

 

64.36

 

 

 

 

53.08

 

 

 

11.28

 

 

 

21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

49.44

 

 

 

 

40.04

 

 

 

9.40

 

 

 

23

 

Pretax income before provision for credit losses

 

 

14.92

 

 

 

 

13.04

 

 

 

1.88

 

 

 

14

 

Provision for credit losses

 

 

4.47

 

 

 

 

0.63

 

 

 

3.84

 

 

 

610

 

Pretax income

 

 

10.45

 

 

 

 

12.41

 

 

 

(1.96

)

 

 

(16

)

Income tax expense

 

 

2.85

 

 

 

 

3.78

 

 

 

(0.93

)

 

 

(25

)

Net income

 

$

7.60

 

 

 

$

8.63

 

 

$

(1.03

)

 

 

(12

)%

Diluted EPS

 

$

0.43

 

 

 

$

0.48

 

 

$

(0.05

)

 

 

(10

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets annualized

 

 

0.43

%

 

 

 

0.54

%

 

 

(0.11

)

 

 

 

Return on average equity annualized

 

 

4.98

%

 

 

 

5.94

%

 

 

(0.96

)

 

 

 

 

March 2025 Quarter Compared to Linked Quarter

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

Increase/

 

(Dollars in millions, except per share data) (unaudited)

 

2025

 

 

2024

 

 

 

(Decrease)

 

Net interest income

 

$

45.51

 

 

$

41.91

 

 

 

$

3.60

 

 

 

9

%

Wealth management fee income

 

 

15.44

 

 

 

15.48

 

 

 

 

(0.04

)

 

 

(0

)

Capital markets activity

 

 

0.46

 

 

 

0.11

 

 

 

 

0.35

 

 

 

318

 

Other income

 

 

2.95

 

 

 

4.34

 

 

 

 

(1.39

)

 

 

(32

)

Total other income

 

 

18.85

 

 

 

19.93

 

 

 

 

(1.08

)

 

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue

 

 

64.36

 

 

 

61.84

 

 

 

 

2.52

 

 

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

49.44

 

 

 

47.86

 

 

 

 

1.58

 

 

 

3

 

Pretax income before provision for credit losses

 

 

14.92

 

 

 

13.98

 

 

 

 

0.94

 

 

 

7

 

Provision for credit losses

 

 

4.47

 

 

 

1.74

 

 

 

 

2.73

 

 

 

157

 

Pretax income

 

 

10.45

 

 

 

12.24

 

 

 

 

(1.79

)

 

 

(15

)

Income tax expense

 

 

2.85

 

 

 

3.00

 

 

 

 

(0.15

)

 

 

(5

)

Net income

 

$

7.60

 

 

$

9.24

 

 

 

$

(1.64

)

 

 

(18

)%

Diluted EPS

 

$

0.43

 

 

$

0.52

 

 

 

$

(0.09

)

 

 

(17

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets annualized

 

 

0.43

%

 

 

0.54

%

 

 

 

(0.11

)

 

 

 

Return on average equity annualized

 

 

4.98

%

 

 

6.15

%

 

 

 

(1.17

)

 

 

 

 

3

SUPPLEMENTAL QUARTERLY DETAILS:

 

Wealth Management

AUM/AUA in the Bank’s Wealth Management Division declined to $11.8 billion at March 31, 2025 compared to $11.9 billion at December 31, 2024. For the March 2025 quarter, the Wealth Management Team generated $15.4 million in fee income, compared to $15.5 million for the December 31, 2024 quarter and $14.4 million for the March 2024 quarter.

John Babcock, President of the Bank's Wealth Management Division, noted, “Q1 2025 saw continued strong client inflows driven by new accounts and client additions of $341 million. Our new business pipeline is healthy, and we continue to remain focused on delivering excellent service and advice to our clients. Our highly skilled wealth management professionals, our fiduciary powers and expertise, our financial planning capabilities combined with our high-touch client service model distinguishes us in our market and continues to drive our growth and success.”

Loans / Commercial Banking

Total loans increased $236 million, or 4%, to $5.8 billion at March 31, 2025, compared to $5.5 billion at December 31, 2024, primarily driven by commercial and industrial loan originations during the quarter. Total C&I loans and leases at March 31, 2025 were $2.5 billion or 44% of the total loan portfolio.

Mr. Kennedy noted, “The strong loan demand we experienced during the second half of 2024 has carried into the early stages of 2025. We are proud to have built a leading middle-market commercial banking franchise, as evidenced by our C&I loan portfolio and complimented by Treasury Management services, Corporate Advisory and SBA businesses. These business lines fit perfectly with our private banking business model and will continue to generate solid production going forward. During the quarter, we originated loans that carried an average spread of more than 400 basis points above our current cost of funds. Having this capability will help us in the near term as the real estate market adjusts to changing market conditions.”

Net Interest Income (NII)/Net Interest Margin (NIM)

The Company’s NII of $45.5 million and NIM of 2.68% for Q1 2025 increased $3.6 million and 22 basis points from NII of $41.9 million and NIM of 2.46% for the linked quarter (Q4 2024), and increased $11.1 million and 48 basis points from NII of $34.4 million and NIM of 2.20% compared to the prior year period (Q1 2024). Our single point of contact private banking strategy and New York City expansion continues to deliver lower-cost core deposit relationships resulting in consistent improvement in our net interest margin.

Funding / Liquidity / Interest Rate Risk Management

Total deposits increased $158 million to $6.3 billion at March 31, 2025 from $6.1 billion at December 31, 2024. The overall growth in deposits has strengthened balance sheet liquidity and reduced reliance on outside borrowings and other non-core funding sources. There were no outstanding overnight borrowings at March 31, 2025.

At March 31, 2025, the Company’s balance sheet liquidity (investments available for sale, interest-earning deposits and cash) totaled $1.1 billion, or 15% of total assets. The Company maintains additional liquidity resources of approximately $3.3 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 $4.4 billion at March 31, 2025, which amounts to 283% of the total uninsured/uncollateralized deposits currently on the Company’s balance sheet.

Income from Capital Markets Activities

Noninterest income from Capital Markets activities (detailed below) totaled $455,000 for the March 2025 quarter compared to $114,000 for the December 2024 quarter and $1.3 million for the March 2024 quarter.

 

4

 

 

Three Months Ended

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

(Dollars in thousands, except per share data) (unaudited)

 

2025

 

 

2024

 

 

2024

 

Gain on loans held for sale at fair value (Mortgage banking)

 

$

63

 

 

$

58

 

 

$

56

 

Gain on sale of SBA loans

 

 

302

 

 

 

—

 

 

 

400

 

Corporate advisory fee income

 

 

90

 

 

 

56

 

 

 

818

 

Total capital markets activity

 

$

455

 

 

$

114

 

 

$

1,274

 

Other Noninterest Income (other than Wealth Management Fee Income and Income from Capital Markets Activities)

Other noninterest income was $3.0 million for Q1 2025 compared to $4.3 million for Q4 2024 and $3.0 million for Q1 2024. Q1 2025 included a loss of $415,000 recorded by the Equipment Finance Division related to equipment transfers to lessees upon the termination of leases, compared to income of $646,000 in Q4 2024 and income of $141,000 in Q1 2024. Additionally, Q1 2025 included $932,000 of unused line fees compared to $880,000 for Q4 2024 and $827,000 for Q1 2024. Q4 2024 also included a one-time fair value adjustment of $953,000 related to the sale of Visa B shares.

Operating Expenses

Total operating expenses were $49.4 million for the first quarter of 2025, compared to $47.9 million for the fourth quarter of 2024 and $40.0 million for the quarter ended March 31, 2024. The increase during the first quarter of 2025 was primarily driven by expenses associated with the Company’s expansion into New York City, increased health insurance costs, and annual merit increases.

Mr. Kennedy noted, “We continue to make investments related to our strategic decision to expand into New York City and are confident that these investments will position us for future growth and profitability, which will ultimately translate to increased shareholder value. We continue to look for opportunities to create efficiencies and manage expenses throughout the Company while investing in enhancements to the client experience."

Income Taxes

 

The effective tax rate for the three months ended March 31, 2025 was 27.3%, as compared to 24.5% for the December 2024 quarter and 30.4% for the quarter ended March 31, 2024. The December 2024 quarter included the impact of discrete, favorable federal return to provision adjustments primarily related to the Company’s state tax apportionment rate.

 

Asset Quality / Provision for Credit Losses

Nonperforming assets decreased to $97.2 million, or 1.36% of total assets, at March 31, 2025, as compared to $100.2 million, or 1.43% of total assets, at December 31, 2024. Loans past due 30 to 89 days and still accruing increased to $28.3 million, or 0.49% of total loans, at March 31, 2025 compared to $4.9 million, or 0.09% of total loans, at December 31, 2024. The increase in nonperforming assets during the first quarter was driven by four multifamily loans totaling $19.4 million. Criticized and classified loans increased to $217.5 million at March 31, 2025, reflecting an increase of $25.6 million as compared to $191.9 million at December 31, 2024. The Company currently has no loans or leases on deferral and still accruing.

For the quarter ended March 31, 2025, the provision for credit losses was $4.5 million compared to $1.8 million for the December 2024 quarter and $615,000 for the March 2024 quarter. The provision for credit losses in the first quarter of 2025 was driven by loan growth and increased charge-offs in addition to deterioration in key economic model drivers.

At March 31, 2025, the allowance for credit losses was $75.2 million (1.31% of total loans), compared to $73.0 million (1.32% of total loans) at December 31, 2024, and $66.3 million (1.24% of total loans) at March 31, 2024.

Mr. Kennedy noted, “We continue to closely monitor asset quality metrics. We believe that most of our credit issues in the multifamily loan portfolio are isolated to a small number of specific borrowers and sponsors. We continue

5

to work through each credit individually, while building appropriate reserve coverage. All of the multifamily loans that repriced in 2024 have continued to make their scheduled payments despite the higher rate environment."

Capital

The Company’s capital position increased during the first quarter of 2025 due to positive movement in accumulated other comprehensive income of $8.7 million related to the fair value of the Company’s investment securities portfolio due to the interest rate environment and net income of $7.6 million.

Tangible book value per share increased 2% to $32.56 at March 31, 2025 from $31.89 at December 31, 2024. (Tangible book value per share is a non-GAAP financial measure. See the reconciliation tables included in this release for further detail.) Book value per share increased 2% to $35.08 per share at March 31, 2025 compared to $34.45 at December 31, 2024. The Company’s and Bank’s regulatory capital ratios as of March 31, 2025 remain strong. Where applicable, such ratios remain well above regulatory well capitalized standards.

The Company employs quarterly capital stress testing modeling of an adverse case and severely adverse case. In the most recently completed stress test (as of December 31, 2024), the Bank remains well capitalized over a two-year stress period.

On March 27, 2025, the Company declared a cash dividend of $0.05 per share payable on May 22, 2025 to shareholders of record on May 8, 2025.

ABOUT THE COMPANY

Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $7.1 billion and assets under management and/or administration of $11.8 billion as of March 31, 2025. 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 2025 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 in 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;

6

•
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;
•
the failure to maintain current technologies and/or to successfully implement future information technology enhancements;
•
successful cyberattacks against our IT infrastructure and that of our IT and third-party providers;
•
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;
•
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 retain key employees;
•
demands 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 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, 2024. 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)

7

PEAPACK-GLADSTONE FINANCIAL CORPORATION

SELECTED CONSOLIDATED FINANCIAL DATA

(Dollars in Thousands, except per share data)

(Unaudited)

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

 

2025

 

 

2024

 

 

2024

 

 

2024

 

 

2024

 

Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

86,345

 

 

$

86,166

 

 

$

83,203

 

 

$

79,238

 

 

$

79,194

 

Interest expense

 

 

40,840

 

 

 

44,258

 

 

 

45,522

 

 

 

44,196

 

 

 

44,819

 

Net interest income

 

 

45,505

 

 

 

41,908

 

 

 

37,681

 

 

 

35,042

 

 

 

34,375

 

Wealth management fee income

 

 

15,435

 

 

 

15,482

 

 

 

15,150

 

 

 

16,419

 

 

 

14,407

 

Service charges and fees

 

 

1,112

 

 

 

1,323

 

 

 

1,327

 

 

 

1,345

 

 

 

1,322

 

Bank owned life insurance

 

 

371

 

 

 

335

 

 

 

390

 

 

 

328

 

 

 

503

 

Gain on loans held for sale at fair value
   (Mortgage banking)

 

 

63

 

 

 

58

 

 

 

15

 

 

 

34

 

 

 

56

 

Gain on loans held for sale at lower
   of cost or fair value

 

 

—

 

 

 

—

 

 

 

—

 

 

 

23

 

 

 

—

 

Gain on sale of SBA loans

 

 

302

 

 

 

—

 

 

 

365

 

 

 

449

 

 

 

400

 

Corporate advisory fee income

 

 

90

 

 

 

56

 

 

 

55

 

 

 

103

 

 

 

818

 

Other income

 

 

1,286

 

 

 

2,125

 

 

 

1,162

 

 

 

2,938

 

 

 

1,306

 

Fair value adjustment for CRA equity security

 

 

195

 

 

 

549

 

 

 

474

 

 

 

(84

)

 

 

(111

)

Total other income

 

 

18,854

 

 

 

19,928

 

 

 

18,938

 

 

 

21,555

 

 

 

18,701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

 

64,359

 

 

 

61,836

 

 

 

56,619

 

 

 

56,597

 

 

 

53,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and employee benefits

 

 

35,879

 

 

 

32,915

 

 

 

31,050

 

 

 

29,884

 

 

 

28,476

 

Premises and equipment

 

 

6,154

 

 

 

5,995

 

 

 

5,633

 

 

 

5,776

 

 

 

5,081

 

FDIC insurance expense

 

 

855

 

 

 

825

 

 

 

870

 

 

 

870

 

 

 

945

 

Other expenses

 

 

6,552

 

 

 

8,125

 

 

 

7,096

 

 

 

6,596

 

 

 

5,539

 

Total operating expenses

 

 

49,440

 

 

 

47,860

 

 

 

44,649

 

 

 

43,126

 

 

 

40,041

 

Pretax income before provision for credit losses

 

 

14,919

 

 

 

13,976

 

 

 

11,970

 

 

 

13,471

 

 

 

13,035

 

Provision for credit losses

 

 

4,471

 

 

 

1,738

 

 

 

1,224

 

 

 

3,911

 

 

 

627

 

Income before income taxes

 

 

10,448

 

 

 

12,238

 

 

 

10,746

 

 

 

9,560

 

 

 

12,408

 

Income tax expense

 

 

2,853

 

 

 

2,998

 

 

 

3,159

 

 

 

2,030

 

 

 

3,777

 

Net income

 

$

7,595

 

 

$

9,240

 

 

$

7,587

 

 

$

7,530

 

 

$

8,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share (basic)

 

$

0.43

 

 

$

0.53

 

 

$

0.43

 

 

$

0.42

 

 

$

0.49

 

Earnings per share (diluted)

 

 

0.43

 

 

 

0.52

 

 

 

0.43

 

 

 

0.42

 

 

 

0.48

 

Weighted average number of common
   shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

17,610,917

 

 

 

17,585,213

 

 

 

17,616,046

 

 

 

17,747,070

 

 

 

17,711,639

 

Diluted

 

 

17,812,222

 

 

 

17,770,717

 

 

 

17,700,042

 

 

 

17,792,296

 

 

 

17,805,347

 

Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets annualized (ROAA)

 

 

0.43

%

 

 

0.54

%

 

 

0.46

%

 

 

0.47

%

 

 

0.54

%

Return on average equity annualized (ROAE)

 

 

4.98

%

 

 

6.15

%

 

 

5.12

%

 

 

5.22

%

 

 

5.94

%

Return on average tangible equity annualized (ROATCE) (A)

 

 

5.37

%

 

 

6.65

%

 

 

5.54

%

 

 

5.67

%

 

 

6.45

%

Net interest margin (tax-equivalent basis)

 

 

2.68

%

 

 

2.46

%

 

 

2.34

%

 

 

2.25

%

 

 

2.20

%

GAAP efficiency ratio (B)

 

 

76.82

%

 

 

77.40

%

 

 

78.86

%

 

 

76.20

%

 

 

75.44

%

Operating expenses / average assets annualized

 

 

2.82

%

 

 

2.77

%

 

 

2.73

%

 

 

2.70

%

 

 

2.51

%

 

(A) Return on average tangible equity is calculated by dividing tangible equity by annualized net income. 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

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

 

2025

 

 

2024

 

 

2024

 

 

2024

 

 

2024

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

7,885

 

 

$

8,492

 

 

$

8,129

 

 

$

5,586

 

 

$

5,769

 

Federal funds sold

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest-earning deposits

 

 

224,032

 

 

 

382,875

 

 

 

484,529

 

 

 

310,143

 

 

 

189,069

 

Total cash and cash equivalents

 

 

231,917

 

 

 

391,367

 

 

 

492,658

 

 

 

315,729

 

 

 

194,838

 

Securities available for sale

 

 

832,030

 

 

 

784,544

 

 

 

682,713

 

 

 

591,884

 

 

 

550,870

 

Securities held to maturity

 

 

100,285

 

 

 

101,635

 

 

 

103,158

 

 

 

105,013

 

 

 

106,498

 

CRA equity security, at fair value

 

 

13,236

 

 

 

13,041

 

 

 

13,445

 

 

 

12,971

 

 

 

13,055

 

FHLB and FRB stock, at cost (A)

 

 

12,311

 

 

 

12,373

 

 

 

12,459

 

 

 

12,478

 

 

 

18,079

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

630,245

 

 

 

614,840

 

 

 

591,374

 

 

 

579,057

 

 

 

581,426

 

Multifamily mortgage

 

 

1,775,132

 

 

 

1,799,754

 

 

 

1,784,861

 

 

 

1,796,687

 

 

 

1,827,165

 

Commercial mortgage

 

 

633,957

 

 

 

588,104

 

 

 

578,559

 

 

 

600,859

 

 

 

615,964

 

Commercial and industrial loans

 

 

2,528,235

 

 

 

2,397,699

 

 

 

2,247,853

 

 

 

2,185,827

 

 

 

2,235,342

 

Consumer loans

 

 

140,443

 

 

 

77,785

 

 

 

78,160

 

 

 

69,579

 

 

 

66,827

 

Home equity lines of credit

 

 

48,301

 

 

 

42,327

 

 

 

38,971

 

 

 

37,117

 

 

 

35,542

 

Other loans

 

 

359

 

 

 

411

 

 

 

389

 

 

 

172

 

 

 

184

 

Total loans

 

 

5,756,672

 

 

 

5,520,920

 

 

 

5,320,167

 

 

 

5,269,298

 

 

 

5,362,450

 

Less: Allowance for credit losses

 

 

75,150

 

 

 

72,992

 

 

 

71,283

 

 

 

67,984

 

 

 

66,251

 

Net loans

 

 

5,681,522

 

 

 

5,447,928

 

 

 

5,248,884

 

 

 

5,201,314

 

 

 

5,296,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premises and equipment

 

 

31,639

 

 

 

28,888

 

 

 

25,716

 

 

 

24,932

 

 

 

24,494

 

Accrued interest receivable

 

 

31,968

 

 

 

29,898

 

 

 

31,973

 

 

 

33,534

 

 

 

32,672

 

Bank owned life insurance

 

 

48,110

 

 

 

47,981

 

 

 

47,837

 

 

 

47,716

 

 

 

47,580

 

Goodwill and other intangible assets

 

 

44,655

 

 

 

44,926

 

 

 

45,198

 

 

 

45,470

 

 

 

45,742

 

Finance lease right-of-use assets

 

 

950

 

 

 

985

 

 

 

1,020

 

 

 

1,055

 

 

 

1,900

 

Operating lease right-of-use assets

 

 

39,456

 

 

 

40,289

 

 

 

41,650

 

 

 

38,683

 

 

 

16,035

 

Due from brokers

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,184

 

 

 

—

 

Other assets

 

 

52,573

 

 

 

67,383

 

 

 

47,081

 

 

 

71,387

 

 

 

60,591

 

TOTAL ASSETS

 

$

7,120,652

 

 

$

7,011,238

 

 

$

6,793,792

 

 

$

6,505,350

 

 

$

6,408,553

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

1,184,860

 

 

$

1,112,734

 

 

$

1,079,877

 

 

$

950,368

 

 

$

914,893

 

Interest-bearing demand deposits

 

 

3,450,014

 

 

 

3,334,269

 

 

 

3,316,217

 

 

 

3,229,814

 

 

 

3,029,119

 

Savings

 

 

107,581

 

 

 

103,136

 

 

 

103,979

 

 

 

105,602

 

 

 

108,305

 

Money market accounts

 

 

1,087,959

 

 

 

1,078,024

 

 

 

902,562

 

 

 

824,158

 

 

 

775,132

 

Certificates of deposit – Retail

 

 

442,369

 

 

 

483,998

 

 

 

515,297

 

 

 

502,810

 

 

 

486,079

 

Certificates of deposit – Listing Service

 

 

3,773

 

 

 

6,861

 

 

 

7,454

 

 

 

7,454

 

 

 

7,704

 

Subtotal “customer” deposits

 

 

6,276,556

 

 

 

6,119,022

 

 

 

5,925,386

 

 

 

5,620,206

 

 

 

5,321,232

 

IB Demand – Brokered

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

Certificates of deposit – Brokered

 

 

—

 

 

 

—

 

 

 

—

 

 

 

26,000

 

 

 

145,480

 

Total deposits

 

 

6,286,556

 

 

 

6,129,022

 

 

 

5,935,386

 

 

 

5,656,206

 

 

 

5,476,712

 

Short-term borrowings

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

119,490

 

Finance lease liability

 

 

1,308

 

 

 

1,348

 

 

 

1,388

 

 

 

1,427

 

 

 

3,104

 

Operating lease liability

 

 

42,948

 

 

 

43,569

 

 

 

44,775

 

 

 

41,347

 

 

 

17,630

 

Subordinated debt, net

 

 

98,884

 

 

 

133,561

 

 

 

133,489

 

 

 

133,417

 

 

 

133,346

 

Due to brokers

 

 

—

 

 

 

18,514

 

 

 

—

 

 

 

9,981

 

 

 

—

 

Other liabilities

 

 

69,083

 

 

 

79,375

 

 

 

71,140

 

 

 

74,650

 

 

 

75,892

 

TOTAL LIABILITIES

 

 

6,498,779

 

 

 

6,405,389

 

 

 

6,186,178

 

 

 

5,917,028

 

 

 

5,826,174

 

Shareholders’ equity

 

 

621,873

 

 

 

605,849

 

 

 

607,614

 

 

 

588,322

 

 

 

582,379

 

TOTAL LIABILITIES AND

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY

 

$

7,120,652

 

 

$

7,011,238

 

 

$

6,793,792

 

 

$

6,505,350

 

 

$

6,408,553

 

Assets under management and / or administration at
Peapack Private Bank & Trust's Wealth Management
Division (market value, not included above-dollars in billions)

 

$

11.8

 

 

$

11.9

 

 

$

12.1

 

 

$

11.5

 

 

$

11.5

 

 

(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

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

 

2025

 

 

2024

 

 

2024

 

 

2024

 

 

2024

 

Asset Quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due over 90 days and still accruing

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

35

 

Nonaccrual loans

 

 

97,170

 

 

 

100,168

 

 

 

80,453

 

 

 

82,075

 

 

 

69,811

 

Other real estate owned

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total nonperforming assets

 

$

97,170

 

 

$

100,168

 

 

$

80,453

 

 

$

82,075

 

 

$

69,846

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 

1.69

%

 

 

1.81

%

 

 

1.51

%

 

 

1.56

%

 

 

1.30

%

Nonperforming assets to total assets

 

 

1.36

%

 

 

1.43

%

 

 

1.18

%

 

 

1.26

%

 

 

1.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing modifications (A)(B)

 

$

63,259

 

 

$

45,846

 

 

$

51,796

 

 

$

26,788

 

 

$

12,311

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due 30 through 89 days and still accruing

 

$

28,323

 

 

$

4,870

 

 

$

31,446

 

 

$

34,714

 

 

$

73,699

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans subject to special mention

 

$

75,248

 

 

$

46,518

 

 

$

113,655

 

 

$

140,791

 

 

$

59,450

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Classified loans

 

$

142,273

 

 

$

145,394

 

 

$

147,422

 

 

$

128,311

 

 

$

117,869

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Individually evaluated loans

 

$

97,170

 

 

$

99,775

 

 

$

79,972

 

 

$

81,802

 

 

$

69,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses ("ACL"):

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of quarter

 

$

72,992

 

 

$

71,283

 

 

$

67,984

 

 

$

66,251

 

 

$

65,888

 

Provision for credit losses (C)

 

 

4,494

 

 

 

1,753

 

 

 

1,227

 

 

 

3,901

 

 

 

615

 

(Charge-offs)/recoveries, net

 

 

(2,336

)

 

 

(44

)

 

 

2,072

 

 

 

(2,168

)

 

 

(252

)

End of quarter

 

$

75,150

 

 

$

72,992

 

 

$

71,283

 

 

$

67,984

 

 

$

66,251

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACL to nonperforming loans

 

 

77.34

%

 

 

72.87

%

 

 

88.60

%

 

 

82.83

%

 

 

94.85

%

ACL to total loans

 

 

1.31

%

 

 

1.32

%

 

 

1.34

%

 

 

1.29

%

 

 

1.24

%

Collectively evaluated ACL to total loans (D)

 

 

1.09

%

 

 

1.09

%

 

 

1.16

%

 

 

1.14

%

 

 

1.15

%

(A) Amounts reflect modifications that are paying according to modified terms.

(B) Excludes modifications included in nonaccrual loans of $3.9 million at March 31, 2025, $3.6 million at December 31, 2024, $3.7 million at September 30, 2024, $3.2 million at June 30, 2024 and $3.2 million at March 31, 2024.

(C) Excludes a credit of $23,000 at March 31, 2025, a credit of $15,000 at December 31, 2024, a credit of $3,000 at September 30, 2024, a provision of $10,000 at June 30, 2024 and a provision of $12,000 at March 31, 2024 related to off-balance sheet commitments.

(D) 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

 

 

 

March 31,

 

 

December 31,

 

 

March 31,

 

 

 

2025

 

 

2024

 

 

2024

 

Capital Adequacy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity to total assets (A)

 

 

 

 

8.73

%

 

 

 

 

8.64

%

 

 

 

 

9.09

%

Tangible equity to tangible assets (B)

 

 

 

 

8.16

%

 

 

 

 

8.05

%

 

 

 

 

8.43

%

Book value per share (C)

 

 

 

$

35.08

 

 

 

 

$

34.45

 

 

 

 

$

32.79

 

Tangible book value per share (D)

 

 

 

$

32.56

 

 

 

 

$

31.89

 

 

 

 

$

30.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible equity to tangible assets excluding other comprehensive loss*

 

 

 

 

8.90

%

 

 

 

 

8.92

%

 

 

 

 

9.40

%

Tangible book value per share excluding other comprehensive loss*

 

 

 

$

35.82

 

 

 

 

$

35.67

 

 

 

 

$

34.03

 

 

*Excludes other comprehensive loss of $57.7 million for the quarter ended March 31, 2025, $66.4 million for the quarter ended December 31, 2024, and $67.8 million for the quarter ended March 31, 2024. See Non-GAAP financial measures reconciliation included in these tables.

 

(A) Equity to total assets is calculated as total shareholders’ equity as a percentage of total assets at quarter end.

(B) Tangible equity and tangible assets are calculated by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. Tangible equity as a percentage of tangible assets at quarter end is calculated by dividing tangible 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 by quarter end common shares outstanding.

(D) Tangible book value per share excludes intangible assets. Tangible book value per share is calculated by dividing tangible equity by quarter end common shares outstanding. See Non-GAAP financial measures reconciliation tables.

 

 

 

As of

 

 

March 31,

 

December 31,

 

March 31,

 

 

2025

 

2024

 

2024

Regulatory Capital – Holding Company

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage

 

$

633,456

 

 

8.98%

 

$

625,830

 

 

9.01%

 

$

602,493

 

 

9.36%

Tier I capital to risk-weighted assets

 

 

633,456

 

 

11.19

 

 

625,830

 

 

11.51

 

 

602,493

 

 

11.76

Common equity tier I capital ratio
   to risk-weighted assets

 

 

633,450

 

 

11.19

 

 

625,824

 

 

11.51

 

 

602,481

 

 

11.76

Tier I & II capital to risk-weighted assets

 

 

803,173

 

 

14.19

 

 

806,404

 

 

14.84

 

 

785,909

 

 

15.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Regulatory Capital – Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage (E)

 

$

708,276

 

 

10.05%

 

$

733,389

 

 

10.57%

 

$

709,744

 

 

11.02%

Tier I capital to risk-weighted assets (F)

 

 

708,276

 

 

12.52

 

 

733,389

 

 

13.50

 

 

709,744

 

 

13.86

Common equity tier I capital ratio
   to risk-weighted assets (G)

 

 

708,270

 

 

12.52

 

 

733,383

 

 

13.50

 

 

709,732

 

 

13.86

Tier I & II capital to risk-weighted assets (H)

 

 

779,068

 

 

13.77

 

 

801,365

 

 

14.75

 

 

773,781

 

 

15.11

 

(E) Regulatory well capitalized standard (including capital conservation buffer) = 4.00% ($282 million)

(F) Regulatory well capitalized standard (including capital conservation buffer) = 8.50% ($481 million)

(G) Regulatory well capitalized standard (including capital conservation buffer) = 7.00% ($396 million)

(H) Regulatory well capitalized standard (including capital conservation buffer) = 10.50% ($594 million)

 

 

11

PEAPACK-GLADSTONE FINANCIAL CORPORATION

LOANS CLOSED

(Dollars in Thousands)

(Unaudited)

 

 

 

For the Quarters Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

 

 

2025

 

 

2024

 

 

2024

 

 

2024

 

 

2024

 

Residential loans retained

 

$

25,157

 

 

$

39,279

 

 

$

26,955

 

 

$

16,087

 

 

$

11,661

 

Residential loans sold

 

 

4,074

 

 

 

4,220

 

 

 

1,853

 

 

 

2,361

 

 

 

4,025

 

Total residential loans

 

 

29,231

 

 

 

43,499

 

 

 

28,808

 

 

 

18,448

 

 

 

15,686

 

Commercial real estate

 

 

47,280

 

 

 

15,800

 

 

 

4,300

 

 

 

2,600

 

 

 

11,500

 

Multifamily

 

 

6,800

 

 

 

12,550

 

 

 

11,295

 

 

 

4,330

 

 

 

1,900

 

Commercial (C&I) loans (A) (B)

 

 

257,282

 

 

 

432,115

 

 

 

242,829

 

 

 

103,065

 

 

 

145,803

 

SBA

 

 

5,928

 

 

 

5,964

 

 

 

9,106

 

 

 

8,200

 

 

 

2,790

 

Wealth lines of credit (A)

 

 

9,900

 

 

 

550

 

 

 

11,675

 

 

 

10,950

 

 

 

3,850

 

Total commercial loans

 

 

327,190

 

 

 

466,979

 

 

 

279,205

 

 

 

129,145

 

 

 

165,843

 

Installment loans

 

 

76,941

 

 

 

7,182

 

 

 

8,137

 

 

 

1,664

 

 

 

6,868

 

Home equity lines of credit (A)

 

 

4,805

 

 

 

10,236

 

 

 

10,421

 

 

 

4,787

 

 

 

2,103

 

Total loans closed

 

$

438,167

 

 

$

527,896

 

 

$

326,571

 

 

$

154,044

 

 

$

190,500

 

 

(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

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

 

Average

 

 

Income/

 

 

Annualized

 

 

Average

 

 

Income/

 

 

Annualized

 

 

 

Balance

 

 

Expense

 

 

Yield

 

 

Balance

 

 

Expense

 

 

Yield

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (A)

 

$

1,032,257

 

 

$

8,213

 

 

 

3.18

%

 

$

793,675

 

 

$

5,136

 

 

 

2.59

%

Tax-exempt (A) (B)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (B) (C):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages

 

 

617,185

 

 

 

6,670

 

 

 

4.32

 

 

 

577,648

 

 

 

5,420

 

 

 

3.75

 

Commercial mortgages

 

 

2,384,542

 

 

 

26,179

 

 

 

4.39

 

 

 

2,460,403

 

 

 

27,541

 

 

 

4.48

 

Commercial

 

 

2,432,862

 

 

 

40,104

 

 

 

6.59

 

 

 

2,240,161

 

 

 

37,559

 

 

 

6.71

 

Commercial construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

18,927

 

 

 

428

 

 

 

9.05

 

Installment

 

 

107,506

 

 

 

1,793

 

 

 

6.67

 

 

 

65,287

 

 

 

1,113

 

 

 

6.82

 

Home equity

 

 

45,949

 

 

 

845

 

 

 

7.36

 

 

 

36,406

 

 

 

737

 

 

 

8.10

 

Other

 

 

304

 

 

 

5

 

 

 

6.58

 

 

 

214

 

 

 

7

 

 

 

13.08

 

Total loans

 

 

5,588,348

 

 

 

75,596

 

 

 

5.41

 

 

 

5,399,046

 

 

 

72,805

 

 

 

5.39

 

Federal funds sold

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest-earning deposits

 

 

290,702

 

 

 

2,776

 

 

 

3.82

 

 

 

140,097

 

 

 

1,522

 

 

 

4.35

 

Total interest-earning assets

 

 

6,911,307

 

 

 

86,585

 

 

 

5.01

%

 

 

6,332,818

 

 

 

79,463

 

 

 

5.02

%

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

8,380

 

 

 

 

 

 

 

 

 

10,105

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(74,413

)

 

 

 

 

 

 

 

 

(67,105

)

 

 

 

 

 

 

Premises and equipment

 

 

29,954

 

 

 

 

 

 

 

 

 

24,393

 

 

 

 

 

 

 

Other assets

 

 

128,754

 

 

 

 

 

 

 

 

 

87,129

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 

92,675

 

 

 

 

 

 

 

 

 

54,522

 

 

 

 

 

 

 

Total assets

 

$

7,003,982

 

 

 

 

 

 

 

 

$

6,387,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

3,445,903

 

 

$

28,078

 

 

 

3.26

%

 

$

2,954,698

 

 

$

27,433

 

 

 

3.71

%

Money markets

 

 

982,245

 

 

 

6,717

 

 

 

2.74

 

 

 

757,753

 

 

 

5,525

 

 

 

2.92

 

Savings

 

 

106,073

 

 

 

118

 

 

 

0.44

 

 

 

108,503

 

 

 

89

 

 

 

0.33

 

Certificates of deposit – retail

 

 

468,176

 

 

 

4,363

 

 

 

3.73

 

 

 

477,793

 

 

 

4,855

 

 

 

4.06

 

Subtotal interest-bearing deposits

 

 

5,002,397

 

 

 

39,276

 

 

 

3.14

 

 

 

4,298,747

 

 

 

37,902

 

 

 

3.53

 

Interest-bearing demand – brokered

 

 

10,000

 

 

 

100

 

 

 

4.00

 

 

 

10,000

 

 

 

126

 

 

 

5.04

 

Certificates of deposit – brokered

 

 

—

 

 

 

—

 

 

 

—

 

 

 

128,341

 

 

 

1,602

 

 

 

4.99

 

Total interest-bearing deposits

 

 

5,012,397

 

 

 

39,376

 

 

 

3.14

 

 

 

4,437,088

 

 

 

39,630

 

 

 

3.57

 

Borrowings

 

 

1,001

 

 

 

11

 

 

 

4.54

 

 

 

235,384

 

 

 

3,467

 

 

 

5.89

 

Capital lease obligation

 

 

1,322

 

 

 

14

 

 

 

4.20

 

 

 

3,215

 

 

 

38

 

 

 

4.73

 

Subordinated debt

 

 

126,641

 

 

 

1,439

 

 

 

4.55

 

 

 

133,303

 

 

 

1,684

 

 

 

5.05

 

Total interest-bearing liabilities

 

 

5,141,361

 

 

 

40,840

 

 

 

3.18

%

 

 

4,808,990

 

 

 

44,819

 

 

 

3.73

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

1,122,191

 

 

 

 

 

 

 

 

 

916,848

 

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

129,857

 

 

 

 

 

 

 

 

 

80,499

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

1,252,048

 

 

 

 

 

 

 

 

 

997,347

 

 

 

 

 

 

 

Shareholders’ equity

 

 

610,573

 

 

 

 

 

 

 

 

 

581,003

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

7,003,982

 

 

 

 

 

 

 

 

$

6,387,340

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

45,745

 

 

 

 

 

 

 

 

$

34,644

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

1.83

%

 

 

 

 

 

 

 

 

1.29

%

Net interest margin (D)

 

 

 

 

 

 

 

 

2.68

%

 

 

 

 

 

 

 

 

2.20

%

 

(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

 

 

 

March 31, 2025

 

 

December 31, 2024

 

 

 

Average

 

 

Income/

 

 

Annualized

 

 

Average

 

 

Income/

 

 

Annualized

 

 

 

Balance

 

 

Expense

 

 

Yield

 

 

Balance

 

 

Expense

 

 

Yield

 

ASSETS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable (A)

 

$

1,032,257

 

 

$

8,213

 

 

 

3.18

%

 

$

937,314

 

 

$

6,992

 

 

 

2.98

%

Tax-exempt (A) (B)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (B) (C):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgages

 

 

617,185

 

 

 

6,670

 

 

 

4.32

 

 

 

593,454

 

 

 

6,181

 

 

 

4.17

 

Commercial mortgages

 

 

2,384,542

 

 

 

26,179

 

 

 

4.39

 

 

 

2,364,893

 

 

 

25,876

 

 

 

4.38

 

Commercial

 

 

2,432,862

 

 

 

40,104

 

 

 

6.59

 

 

 

2,274,408

 

 

 

39,394

 

 

 

6.93

 

Commercial construction

 

 

—

 

 

 

—

 

 

 

0.00

 

 

 

11,698

 

 

 

146

 

 

 

4.99

 

Installment

 

 

107,506

 

 

 

1,793

 

 

 

6.67

 

 

 

77,547

 

 

 

1,290

 

 

 

6.65

 

Home equity

 

 

45,949

 

 

 

845

 

 

 

7.36

 

 

 

41,496

 

 

 

815

 

 

 

7.86

 

Other

 

 

304

 

 

 

5

 

 

 

6.58

 

 

 

329

 

 

 

5

 

 

 

6.08

 

Total loans

 

 

5,588,348

 

 

 

75,596

 

 

 

5.41

 

 

 

5,363,825

 

 

 

73,707

 

 

 

5.50

 

Federal funds sold

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest-earning deposits

 

 

290,702

 

 

 

2,776

 

 

 

3.82

 

 

 

513,010

 

 

 

5,722

 

 

 

4.46

 

Total interest-earning assets

 

 

6,911,307

 

 

 

86,585

 

 

 

5.01

%

 

 

6,814,149

 

 

 

86,421

 

 

 

5.07

%

Noninterest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

8,380

 

 

 

 

 

 

 

 

 

8,913

 

 

 

 

 

 

 

Allowance for credit losses

 

 

(74,413

)

 

 

 

 

 

 

 

 

(72,455

)

 

 

 

 

 

 

Premises and equipment

 

 

29,954

 

 

 

 

 

 

 

 

 

28,051

 

 

 

 

 

 

 

Other assets

 

 

128,754

 

 

 

 

 

 

 

 

 

123,283

 

 

 

 

 

 

 

Total noninterest-earning assets

 

 

92,675

 

 

 

 

 

 

 

 

 

87,792

 

 

 

 

 

 

 

Total assets

 

$

7,003,982

 

 

 

 

 

 

 

 

$

6,901,941

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Checking

 

$

3,445,903

 

 

$

28,078

 

 

 

3.26

%

 

$

3,332,212

 

 

$

30,304

 

 

 

3.64

%

Money markets

 

 

982,245

 

 

 

6,717

 

 

 

2.74

 

 

 

986,483

 

 

 

6,892

 

 

 

2.79

 

Savings

 

 

106,073

 

 

 

118

 

 

 

0.44

 

 

 

102,820

 

 

 

108

 

 

 

0.42

 

Certificates of deposit – retail

 

 

468,176

 

 

 

4,363

 

 

 

3.73

 

 

 

508,257

 

 

 

5,222

 

 

 

4.11

 

Subtotal interest-bearing deposits

 

 

5,002,397

 

 

 

39,276

 

 

 

3.14

 

 

 

4,929,772

 

 

 

42,526

 

 

 

3.45

 

Interest-bearing demand – brokered

 

 

10,000

 

 

 

100

 

 

 

4.00

 

 

 

10,000

 

 

 

129

 

 

 

5.16

 

Certificates of deposit – brokered

 

 

-

 

 

 

-

 

 

 

-

 

 

 

—

 

 

 

—

 

 

 

—

 

Total interest-bearing deposits

 

 

5,012,397

 

 

 

39,376

 

 

 

3.14

 

 

 

4,939,772

 

 

 

42,655

 

 

 

3.45

 

Borrowings

 

 

1,001

 

 

 

11

 

 

 

5

 

 

 

—

 

 

 

—

 

 

 

—

 

Capital lease obligation

 

 

1,322

 

 

 

14

 

 

 

4.20

 

 

 

1,362

 

 

 

14

 

 

 

4.11

 

Subordinated debt

 

 

126,641

 

 

 

1,439

 

 

 

4.55

 

 

 

133,521

 

 

 

1,589

 

 

 

4.76

 

Total interest-bearing liabilities

 

 

5,141,361

 

 

 

40,840

 

 

 

3.18

%

 

 

5,074,655

 

 

 

44,258

 

 

 

3.49

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

 

1,122,191

 

 

 

 

 

 

 

 

 

1,114,427

 

 

 

 

 

 

 

Accrued expenses and other liabilities

 

 

129,857

 

 

 

 

 

 

 

 

 

112,051

 

 

 

 

 

 

 

Total noninterest-bearing liabilities

 

 

1,252,048

 

 

 

 

 

 

 

 

 

1,226,478

 

 

 

 

 

 

 

Shareholders’ equity

 

 

610,573

 

 

 

 

 

 

 

 

 

600,808

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

7,003,982

 

 

 

 

 

 

 

 

$

6,901,941

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

45,745

 

 

 

 

 

 

 

 

$

42,163

 

 

 

 

Net interest spread

 

 

 

 

 

 

 

 

1.83

%

 

 

 

 

 

 

 

 

1.58

%

Net interest margin (D)

 

 

 

 

 

 

 

 

2.68

%

 

 

 

 

 

 

 

 

2.46

%

(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

NON-GAAP FINANCIAL MEASURES RECONCILIATION

Tangible book value per share and tangible equity as a percentage of tangible assets at period end are non-GAAP financial measures derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. We calculate tangible book value per share by dividing tangible equity by common shares outstanding, as compared to book value per common share, which we calculate by dividing shareholders’ equity by common shares outstanding at period end. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios.

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 titles 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.

(Dollars in thousands, except per share data)

 

 

Three Months Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

Tangible Book Value Per Share

 

2025

 

 

2024

 

 

2024

 

 

2024

 

 

2024

 

Shareholders’ equity

 

$

621,873

 

 

$

605,849

 

 

$

607,614

 

 

$

588,322

 

 

$

582,379

 

Less: Intangible assets, net

 

 

44,655

 

 

 

44,926

 

 

 

45,198

 

 

 

45,470

 

 

 

45,742

 

Tangible equity

 

$

577,218

 

 

$

560,923

 

 

$

562,416

 

 

$

542,852

 

 

$

536,637

 

Less: other comprehensive loss

 

 

(57,717

)

 

 

(66,411

)

 

 

(54,820

)

 

 

(68,342

)

 

 

(67,760

)

Tangible equity excluding other comprehensive loss

 

$

634,935

 

 

$

627,334

 

 

$

617,236

 

 

$

611,194

 

 

$

604,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period end shares outstanding

 

 

17,726,251

 

 

 

17,586,616

 

 

 

17,577,747

 

 

 

17,666,490

 

 

 

17,761,538

 

Tangible book value per share

 

$

32.56

 

 

$

31.89

 

 

$

32.00

 

 

$

30.73

 

 

$

30.21

 

Tangible book value per share excluding other comprehensive loss

 

$

35.82

 

 

$

35.67

 

 

$

35.11

 

 

$

34.60

 

 

$

34.03

 

Book value per share

 

 

35.08

 

 

 

34.45

 

 

 

34.57

 

 

 

33.30

 

 

 

32.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Equity to Tangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

7,120,652

 

 

$

7,011,238

 

 

$

6,793,792

 

 

$

6,505,350

 

 

$

6,408,553

 

Less: Intangible assets, net

 

 

44,655

 

 

 

44,926

 

 

 

45,198

 

 

 

45,470

 

 

 

45,742

 

Tangible assets

 

$

7,075,997

 

 

$

6,966,312

 

 

$

6,748,594

 

 

$

6,459,880

 

 

$

6,362,811

 

Less: other comprehensive loss

 

 

(57,717

)

 

 

(66,411

)

 

 

(54,820

)

 

 

(68,342

)

 

 

(67,760

)

Tangible assets excluding other comprehensive loss

 

$

7,133,714

 

 

$

7,032,723

 

 

$

6,803,414

 

 

$

6,528,222

 

 

$

6,430,571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible equity to tangible assets

 

 

8.16

%

 

 

8.05

%

 

 

8.33

%

 

 

8.40

%

 

 

8.43

%

Tangible equity to tangible assets excluding other comprehensive loss

 

 

8.90

%

 

 

8.92

%

 

 

9.07

%

 

 

9.36

%

 

 

9.40

%

Equity to assets

 

 

8.73

%

 

 

8.64

%

 

 

8.94

%

 

 

9.04

%

 

 

9.09

%

 

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

Return on Average Tangible Equity

 

2025

 

 

2024

 

 

2024

 

 

2024

 

 

2024

 

Net income

 

$

7,595

 

 

$

9,240

 

 

$

7,587

 

 

$

7,530

 

 

$

8,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders’ equity

 

$

610,573

 

 

$

600,808

 

 

$

592,787

 

 

$

577,206

 

 

$

581,003

 

Less: Average intangible assets, net

 

 

44,815

 

 

 

45,079

 

 

 

45,350

 

 

 

45,624

 

 

 

45,903

 

Average tangible equity

 

$

565,758

 

 

$

555,729

 

 

$

547,437

 

 

$

531,582

 

 

$

535,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible common equity

 

 

5.37

%

 

 

6.65

%

 

 

5.54

%

 

 

5.67

%

 

 

6.45

%

 

(Dollars in thousands)

 

 

 

Three Months Ended

 

 

 

March 31,

 

 

Dec 31,

 

 

Sept 30,

 

 

June 30,

 

 

March 31,

 

Efficiency Ratio

 

2025

 

 

2024

 

 

2024

 

 

2024

 

 

2024

 

Net interest income

 

$

45,505

 

 

$

41,908

 

 

$

37,681

 

 

$

35,042

 

 

$

34,375

 

Total other income

 

 

18,854

 

 

 

19,928

 

 

 

18,938

 

 

 

21,555

 

 

 

18,701

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value adjustment for CRA equity security

 

 

(195

)

 

 

(549

)

 

 

(474

)

 

 

84

 

 

 

111

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on loans held for sale at lower of cost or fair value

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(23

)

 

 

—

 

Income from life insurance proceeds

 

 

—

 

 

 

—

 

 

 

(55

)

 

 

—

 

 

 

(181

)

Total recurring revenue

 

 

64,164

 

 

 

61,287

 

 

 

56,090

 

 

 

56,658

 

 

 

53,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

49,440

 

 

 

47,860

 

 

 

44,649

 

 

 

43,126

 

 

 

40,041

 

Total operating expense

 

 

49,440

 

 

 

47,860

 

 

 

44,649

 

 

 

43,126

 

 

 

40,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

77.05

%

 

 

78.09

%

 

 

79.60

%

 

 

76.12

%

 

 

75.54

%

 

 

 

 

 

 

16

 

 

 

 

 

 

 

17