Peapack-Gladstone Financial Reports Strong Third Quarter Growth Driven by Metro New York Expansion
Peapack-Gladstone Financial Corporation posted significant third quarter earnings growth with net income rising 21% to $9.6 million, driven by successful expansion into Metro New York markets and improved asset quality.
Peapack-Gladstone Financial Corporation reported substantial financial improvement in the third quarter of 2025, with net income reaching $9.6 million and diluted earnings per share of $0.54, representing a 21% increase compared to the previous quarter. The company's strategic expansion into Metro New York markets continues to drive growth, with newly hired teams onboarding more than 850 new client relationships over the past two years, adding over $1.75 billion in core relationship deposits and more than $900 million in new loans.
The company's deposit base grew significantly, with total deposits increasing $433 million to $6.6 billion as of September 30, 2025. Core relationship deposits showed particularly strong performance, increasing $708 million during the first nine months of 2025, with noninterest-bearing deposits growing by $211 million, or 19%. This deposit growth funded $506 million of loan growth at a weighted average coupon of 6.75%, resulting in an incremental spread of more than 400 basis points.
Net interest income increased $2.3 million, or 5%, to $50.6 million for the third quarter compared to the second quarter, driven by improvement in the yield on average interest earning assets and continued improvement in the net interest margin. The net interest margin expanded to 2.81% for the quarter ended September 30, 2025, compared to 2.77% for the previous quarter and 2.34% for the same period last year.
President and CEO Douglas L. Kennedy emphasized the company's transformation into Peapack Private Bank & Trust, noting that the momentum has enabled four consecutive quarters of positive operating leverage and core earnings growth of 54% over the last twelve months. The company continued its expansion efforts by adding an experienced equipment finance team in Long Island and three New York-based wealth advisors during the third quarter.
Wealth management showed strong performance with assets under management and administration growing by $1.0 billion to $12.9 billion at September 30, 2025. Wealth management fee income reached $15.8 million in the third quarter, accounting for 22% of total revenue. New business inflows for the quarter totaled $214 million, reflecting healthy client acquisition.
The company made significant progress in asset quality improvement, with nonperforming assets declining by $31 million during the quarter to $84.1 million. Kennedy noted that the company aggressively addressed problem credits while maintaining appropriate reserve coverage. Capital position strengthened during the quarter, with tangible book value per share increasing 7% to $34.10 and regulatory capital ratios remaining well above well capitalized standards.
Additional financial details and investor information are available in the company's Q3 2025 Investor Update on their website at https://www.peapackprivate.com and through SEC filings at https://www.sec.gov. The company's continued expansion and strategic investments position it for sustained growth in the competitive Metro New York banking market.