Peapack-Gladstone Financial Corporation (PGC) Q1 2025 earnings summary

Executive summary

• Total revenue for Q1 2025 was $64.4M, up 21% year-over-year; net income was $7.6M, down from $8.6M in Q1 2024, mainly due to higher operating expenses from expansion and personnel costs.

• Net interest margin improved to 2.68% from 2.20% year-over-year, driven by growth in lower-cost core deposits and expansion into New York City.

• Wealth management AUM/AUA totaled $11.8B, with $341M in new inflows and fee income of $15.4M, up 7% year-over-year.

• Loans grew $236M to $5.8B, annualized growth rate of 17% for Q1 2025, with strong C&I origination and deposit growth supporting liquidity.

• Opened a flagship branch at 300 Park Avenue, NYC, and rebranded to Peapack Private Bank & Trust.

Financial highlights

• Net interest income increased 32% to $45.5M year-over-year; net interest margin rose to 2.68%.

• Total deposits increased $158M to $6.3B; noninterest-bearing demand deposits grew $72M.

• Operating expenses rose to $49.4M, up from $40.0M in Q1 2024, driven by NYC expansion and higher compensation.

• Provision for credit losses was $4.5M, up from $627K in Q1 2024, reflecting loan growth and higher charge-offs.

• Nonperforming loans were $97.2M (1.69% of total loans), down from $100.2M at year-end.

Outlook and guidance

• Management expects higher operating expenses in 2025 due to expansion and personnel investments.

• The company remains focused on growing core deposits, managing credit quality, and supporting organic and acquisition-driven growth.

• Capital and liquidity levels are expected to remain strong, with stress testing indicating resilience under adverse scenarios.

• Management remains confident in continued growth, especially in Metro New York, citing strong new client momentum and a healthy wealth management pipeline.