Peapack-Gladstone Financial Corporation (PGC) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $9.6 million, up 27% year-over-year and 21% sequentially; diluted EPS rose to $0.54 from $0.43 year-over-year and $0.45 in Q2 2025.

• Total revenue for Q3 2025 increased 25% year-over-year to $70.7 million, driven by higher interest income and lower interest expense.

• Deposits grew $433 million year-to-date, funding $506 million in loan growth at a 6.75% weighted average coupon.

• Wealth management AUM/AUA reached $12.9 billion, with $214 million in new business inflows in Q3 and fee income of $15.8 million, representing 22% of total revenue.

• Expansion in Metro New York and Long Island continued, with new teams and advisors added, supporting ongoing growth.

Financial highlights

• Net interest income for Q3 2025 was $50.6 million, up 34% year-over-year and 5% sequentially; net interest margin expanded to 2.81% from 2.34% year-over-year and 2.77% in Q2 2025.

• Operating expenses rose to $52.3 million, reflecting expansion costs and higher compensation.

• Return on average assets (ROAA) for Q3 2025 was 0.53%, and return on average equity (ROAE) was 6.12%.

• Total assets at September 30, 2025 were $7.44 billion, up from $7.01 billion at year-end 2024.

• Allowance for credit losses (ACL) was $68.6 million (1.14% of loans) at September 30, 2025, down from $73.0 million (1.32%) at year-end 2024 and $81.8 million (1.40%) in Q2 2025.

Outlook and guidance

• Management expects continued growth in net interest income and margin, supported by expansion into New York City and Long Island and ongoing investments in talent and infrastructure.

• The company remains focused on growing lower-cost core deposits, managing operating expenses, and capital preservation.

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