Peapack-Gladstone Extends Revenue Growth to a Tenth Quarter

The Tip Desk · November 10, 2026 · 3 min read

Net interest income rose 33% to $67.5 million as the net interest margin reached 3.34% and total revenue hit $87.5 million.

Peapack-Gladstone Financial Corporation (PGC), a New Jersey bank holding company with $8.5 billion of assets, reported third-quarter 2026 net interest income of $67.5 million, up 33% from a year earlier, as the net interest margin expanded to 3.34% and total revenue reached $87.5 million for a tenth consecutive quarter of growth.

The sequential lift in net interest income was 6%, after a 7% increase in the second quarter. The company said the improvement was driven by balance-sheet repositioning, disciplined pricing and higher earning-asset yields.

Net income available to common shareholders was $18.5 million, or $0.99 a share, compared with $15.8 million, or $0.86 a share, in the linked quarter. Annualized return on average common equity was 10.70%.

Operating expenses were $55.1 million, down 1% from the second quarter, and the GAAP efficiency ratio improved to 63.03% for an eighth consecutive quarter. Pre-provision net revenue was $32.3 million.

Total loans rose $403 million, or 24% annualized, to $7.1 billion at September 30, 2026, up $1.1 billion from a year earlier. Growth remained concentrated in commercial and industrial lending and commercial real estate. C&I loans and leases were $3.1 billion, or 43% of the portfolio. The company said C&I growth reflected business expansion and capital investment, and that commercial mortgage activity was supported by sponsor demand for stabilized assets and refinancing.

Total deposits increased $301 million, or 17% annualized, to $7.4 billion, up $796 million year-over-year. Noninterest-bearing deposits rose $232 million over the last twelve months, 29% of that deposit growth. Short-term borrowings increased $206 million in the quarter. The loan-to-deposit ratio was 96%.

Wealth management fee income was $17.3 million, or 20% of total revenue. Assets under management and administration were $13.6 billion, up 6% year-over-year. The wealth division reported $346 million of gross client inflows in the quarter.

Nonperforming assets declined 20% sequentially to $57.8 million, or 0.68% of total assets, from $72.2 million, or 0.91% of total assets, at June 30. Loans past due 30 through 89 days and still accruing were $39.4 million, or 0.56% of loans. The company said the decrease reflected a concentrated effort to resolve problem loans.

The provision for credit losses was $8.5 million. About $5.0 million related to the $403 million of loan growth and $4.6 million to higher specific reserves, partly offset by improved economic factors. Net charge-offs were $4.7 million. The allowance for credit losses was $73.0 million, or 1.03% of loans.

The effective tax rate was 20.5%, including a $1.8 million discrete benefit from transferable production tax credits.

On July 24, 2026, the company issued the remaining $20 million of 6% non-cumulative perpetual convertible preferred stock under a $50 million commitment from Strategic Value Bank Partners. Common Equity Tier 1 was 10.59% for the Bank and 10.06% for the Company. Tangible book value per share was $36.24, up 6% year-over-year. The company reinstated a 3% discount in its dividend reinvestment plan effective with the November 2026 dividend.

President and CEO Douglas L. Kennedy said the company enters the fourth quarter with strong pipelines and a focus on productivity, pricing and expense discipline.