BEDMINSTER, NJ - April 22, 2025 (NEWMEDIAWIRE) - 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:

• 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.

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 March 31, 2025			Three Months Ended March 31, 2024
						Increase/
(Dollars in millions, except per share data)(unaudited)						(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			0.43%			0.54%				(0.11)
Return on average equity			4.98%			5.94%				(0.96)

March 2025 Quarter Compared to Linked Quarter

		Three Months Ended March 31, 2025			Three Months Ended December 31, 2024
						Increase/
(Dollars in millions, except per share data) (unaudited)						(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)

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.

		Three Months Ended March 31, 2025			Three Months Ended December 31, 2024			Three Months Ended March 31, 2024
(Dollars in thousands, except per share data) (unaudited)
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 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;
• 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.

Contact:

Frank A. Cavallaro, SEVP and CFO
Peapack-Gladstone Financial Corporation
T: 908-306-8933

(Tables to follow)

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.

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."

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.

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)

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.

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.

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.

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%

(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%

View the original release on www.newmediawire.com