Peapack-Gladstone Financial Corporation (PGC) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $7.9 million, up from $7.5 million in Q2 2024 and 5% sequentially; diluted EPS rose to $0.45 from $0.42 year-over-year and $0.43 in Q1 2025.

• Total revenue for Q2 2025 increased to $69.7 million from $56.6 million in Q2 2024, driven by higher net interest income and improved net interest margin.

• Deposits reached $6.4 billion, a 12% increase year-over-year, with noninterest-bearing deposits up 30% over the last year.

• Metro New York expansion contributed over $1.3 billion in new core deposits and $464 million in loans since inception, with five new production teams added in Long Island during Q2 2025.

• For the six months ended June 30, 2025, net income was $15.5 million, down from $16.2 million year-over-year, with diluted EPS at $0.87 versus $0.91.

Financial highlights

• Net interest income for Q2 2025 was $48.3 million, up 38% year-over-year and 6% sequentially; net interest margin improved to 2.77% from 2.25% in Q2 2024 and 2.68% in Q1 2025.

• Provision for credit losses increased to $6.6 million in Q2 2025 from $3.9 million in Q2 2024 and $4.5 million in Q1 2025, reflecting loan growth and economic deterioration.

• Operating expenses rose 20% year-over-year to $51.9 million in Q2 2025, mainly due to expansion and higher compensation costs.

• Allowance for credit losses was $81.8 million at June 30, 2025, up from $73.0 million at year-end 2024; ratio to total loans increased to 1.41%.

• Nonperforming loans rose to $115.0 million, or 1.98% of total loans, compared to $100.2 million and 1.82% at year-end 2024.

Outlook and guidance

• Management expects continued pressure on operating expenses due to ongoing expansion and higher personnel costs.

• Net interest margin is anticipated to benefit from lower deposit costs and improved funding mix, but credit quality trends will be closely monitored.

• Management remains confident in the Metro New York expansion and expects continued growth in deposits and loans.

• Investments in new teams and rebranding are expected to drive future profitability and shareholder value.

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