Peapack-Gladstone Financial Reports Strong First Quarter Growth Driven by Private Banking Strategy
Peapack-Gladstone Financial Corporation's first quarter 2026 results demonstrate significant growth in net income, loans, and deposits, reflecting successful execution of its private banking strategy and strategic expansion in the Metropolitan New York region.
Peapack-Gladstone Financial Corporation reported first quarter 2026 net income of $14.2 million, representing a 16% increase over the previous quarter and an 86% increase over the first quarter of 2025. The company's diluted earnings per share reached $0.80, up from $0.69 in the fourth quarter of 2025. This performance marks the sixth consecutive quarter of core earnings growth for the financial institution.
President and CEO Douglas L. Kennedy attributed the results to steady growth in both loans and deposits, with total loans increasing 12% year-over-year to $6.4 billion and deposits growing 9% to $6.8 billion during the same period. The company's net interest income totaled $59.9 million for the quarter, representing the eighth consecutive quarter of growth, while the net interest margin expanded to 3.26%, an increase of 18 basis points from the previous quarter.
The company's wealth management division contributed significantly to overall performance, generating $16.5 million in fee income during the quarter, representing 20% of total revenue. Assets under management and administration remained stable at $13.1 billion despite market volatility late in the quarter. Additional details about the company's financial performance are available in the Q1 2026 Investor Update on their website at https://www.peapackprivate.com and through the Securities and Exchange Commission at https://www.sec.gov.
During the quarter, the company announced a strategic partnership with Strategic Value Bank Partners, which committed to purchase up to $50 million of preferred stock. An initial $30 million private placement closed in March 2026, with the ability to issue an additional $20 million through the end of 2027. Kennedy noted that this capital raise provides flexibility to continue executing on growth and expansion plans while maintaining capital levels consistent with long-standing targets.
Asset quality showed improvement, with nonperforming assets declining for the third consecutive quarter to $59.3 million, or 0.77% of total assets. The company's capital position strengthened during the quarter, with tangible book value per share increasing 14% year-over-year to $37.02. Regulatory capital ratios remained well above regulatory well-capitalized standards, with the company's Tier 1 Leverage Ratio at 9.24% and Common Equity Tier 1 Ratio at 10.55%.
The company's liquidity profile remains strong with a loan-to-deposit ratio of 94% and total on and off-balance sheet liquidity totaling $5.0 billion at March 31, 2026. This amounted to 240% of the total uninsured/uncollateralized deposits currently on the company's balance sheet. The company maintains additional liquidity resources through secured available borrowing facilities with the Federal Home Loan Bank and the Federal Reserve Discount Window.
Operating expenses increased to $55.4 million for the first quarter of 2026, primarily driven by increased health insurance costs and annual merit increases. However, revenue growth of 28% year-over-year to $82.5 million translated into higher earnings and positive operating leverage. The company declared a cash dividend of $0.05 per share payable on May 21, 2026 to shareholders of record on May 7, 2026.