Peapack-Gladstone Financial Corporation (PGC) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $14.2 million, up 16% sequentially and 86% year-over-year, with diluted EPS of $0.80.

• Core earnings increased for the sixth consecutive quarter, driven by growth in loans and deposits and continued execution of the private banking strategy.

• Expansion in the metro New York region resulted in over 1,300 new commercial relationships, $2.1 billion in deposits, and $1.6 billion in credit commitments, with ongoing investments in talent and technology.

• Wealth management revenue reached $16.5 million, up 7% year-over-year, with assets under management stable at $13.1 billion.

• Strategic Value Bank Partners committed to purchase up to $50 million of preferred stock, with $30 million closed in March 2026.

Financial highlights

• Total revenue reached $82.5 million in Q1 2026, up 28% year-over-year, driven by higher net interest income and steady wealth management fees.

• Net interest income rose to $59.9 million, up 6% sequentially and 32% year-over-year, with net interest margin expanding to 3.26%.

• Efficiency ratio improved to 67%, marking six consecutive quarters of improvement.

• Tangible book value per share grew 14% year-over-year to $37.02.

• Provision for credit losses was $7.3 million, reflecting loan growth and specific reserves.

Outlook and guidance

• Management expects continued positive operating leverage, with margin expansion projected at 2-3 basis points per quarter and ongoing growth from expansion initiatives.

• Loan and deposit growth targeted at $175-$200 million for the year, with a 70/30 interest-bearing to non-interest-bearing deposit mix.

• Pathway to best-in-class returns by end of 2027, with expectations to cross 1% ROA and 10% return on capital by year-end or early next year.

• Focus remains on scaling C&I lending, maintaining underwriting discipline, and expanding in the New York region.

• Capital and liquidity positions are considered strong, supporting future growth and stress-tested scenarios.