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Associated Press
23-04-2025
- Business
- Associated Press
Peapack-Gladstone Financial Corporation Reports First Quarter Financial Results
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 via a Current Report on Form 8-K on the website of the Securities and Exchange Commission 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: Commercial Banking and Balance Sheet Management: Capital Management: SUMMARY INCOME STATEMENT DETAILS: The following tables summarize specified financial details for the periods shown. March 2025 Quarter Compared to Prior Year Quarter March 2025 Quarter Compared to Linked Quarter 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. 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 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: 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) (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) (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) (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) *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. (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) (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) (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) (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) (Dollars in thousands) (Dollars in thousands) View the original release on
Associated Press
28-01-2025
- Business
- Associated Press
Peapack-Gladstone Financial Corporation Reports Fourth Quarter Financial Results
NEWMEDIAWIRE) - Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) (the 'Company') announces its fourth quarter 2024 financial results. This earnings release should be read in conjunction with the Company's Q4 2024 Investor Update, a copy of which is available on our website at and via a current report on Form 8-K on the website of the Securities and Exchange Commission at During the fourth quarter of 2024, core relationship deposits grew $438 million, to $5.3 billion, which represents an annualized growth rate of 36%. Strong growth in core relationships throughout 2024 has allowed the Company to repay all outstanding short-term borrowings and strengthen its liquidity position. The Company continued to see an increase in loan demand during the fourth quarter. Loan balances increased $201 million, to $5.5 billion at December 31, 2024. The Company recorded net income of $9.2 million and diluted earnings per share ('EPS') of $0.52 for the quarter ended December 31, 2024 compared to net income of $7.6 million and EPS of $0.43 for the quarter ended September 30, 2024. Net interest income increased $4.2 million, or 11%, on a linked quarter basis to $41.9 million for the fourth quarter of 2024 compared to $37.7 million for the third quarter. 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 2.46% for the quarter ended December 31, 2024 compared to 2.34% for the quarter ended September 30, 2024 and 2.29% for the quarter ended December 31, 2023. Douglas L. Kennedy, President and CEO, said, 'Our expansion into New York City continues to exceed expectations. Our New York Commercial Private Banking initiative has brought us $950 million in new customer relationship deposits over the last twelve months, which includes 28% in noninterest-bearing demand deposits. During the fourth quarter we also saw strong loan demand as outstanding loans grew by $201 million, or 15% on an annualized basis.' Mr. Kennedy also noted, 'As previously announced, we have re-branded the bank by changing our name to Peapack Private Bank & Trust effective January 1, 2025. This change reflects our commitment to being a premier provider of personal and commercial banking products, along with wealth management solutions through a single point of contact. Establishing and maintaining a trusted relationship with each and every client is the core of our business model.' The following are select highlights for the period ended December 31, 2024: Wealth Management: AUM/AUA in our Wealth Management Division totaled $11.9 billion at December 31, 2024 compared to $10.9 billion at December 31, 2023. Gross new business inflows for Q4 2024 totaled $163 million ($142 million managed). Wealth Management fee income was $15.5 million in Q4 2024, which amounted to 25% of total revenue for the quarter. Commercial Banking and Balance Sheet Management: Total deposits increased by $855 million, to $6.1 billion at December 31, 2024 compared to $5.3 billion at December 31, 2023. The Company intentionally allowed $365 million in high cost, non-core relationship deposits to roll off during 2024. Excluding this deposit run-off, deposits have grown by $1.2 billion during 2024. The Company repaid $404 million in short-term borrowings in 2024. Total loans increased $85 million to $5.5 billion at December 31, 2024 from $5.4 billion at December 31, 2023. Outstanding loans grew $201 million during the fourth quarter of 2024 after experiencing contraction in the first half of 2024. Commercial and industrial lending ('C&I') drove a majority of the growth during the fourth quarter. C&I balances represented 43% of the total loan portfolio at December 31, 2024. A strong pipeline of new business has been built heading into 2025. Fee income on unused commercial lines of credit totaled $880,000 for Q4 2024. The net interest margin ('NIM') was 2.46% for Q4 2024, an increase of 12 basis points compared to 2.34% for Q3 2024. Noninterest-bearing demand deposits increased by $155 million to $1.1 billion in 2024 and represented 18% of total deposits as of December 31, 2024. Capital Management: Tangible book value per share increased 5% to $31.89 per share at December 31, 2024 compared to $30.31 at December 31, 2023. Book value per share increased 5% to $34.45 per share at December 31, 2024 compared to $32.90 at December 31, 2023. Tangible book value per share is a non-GAAP financial measure. See the reconciliation tables included in this release for further detail. During 2024, the Company repurchased 300,000 shares of common stock at a cost of $7.2 million. For 2023, the Company repurchased 455,341 shares at a cost of $12.5 million. At December 31, 2024, the Tier 1 Leverage Ratio stood at 10.57% for Peapack Private Bank & Trust (the 'Bank') and 9.01% for the Company. The Common Equity Tier 1 Ratio (to Risk-Weighted Assets) was 13.50% for the Bank and 11.51% for the Company at December 31, 2024. These ratios remain significantly above well capitalized standards, as capital continues to benefit from net income generation. The following tables summarize specified financial details for the periods shown. December 2024 Year Compared to Prior Year Year Ended Year Ended December 31, December 31, Increase/ (Dollars in millions, except per share data) (unaudited) 2024 2023 (Decrease) Net interest income $ 149.01 $ 156.09 $ (7.08 ) (5 )% Wealth management fee income 61.46 55.75 5.71 10 Capital markets activity 2.41 2.74 (0.33 ) (12 ) Other income 15.25 15.09 0.16 1 Total other income 79.12 73.58 5.54 8 Total Revenue $ 228.13 $ 229.67 $ (1.54 ) (1 )% Operating expenses $ 175.68 $ 148.30 $ 27.38 18 Pretax income before provision for credit losses 52.45 81.37 (28.92 ) (36 ) Provision for credit losses 7.50 14.09 (6.59 ) (47 ) Pretax income 44.95 67.28 (22.33 ) (33 ) Income tax expense 11.95 18.43 (6.48 ) (35 ) Net income $ 33.00 $ 48.85 $ (15.85 ) (32 )% Diluted EPS $ 1.85 $ 2.71 $ (0.86 ) (32 )% Return on average assets 0.50 % 0.76 % (0.26 ) Return on average equity 5.61 % 8.77 % (3.16 ) December 2024 Quarter Compared to Prior Year Quarter Three Months Ended Three Months Ended December 31, December 31, Increase/ (Dollars in millions, except per share data) (unaudited) 2024 2023 (Decrease) Net interest income $ 41.91 $ 36.68 $ 5.23 14 % Wealth management fee income 15.48 13.76 1.72 13 Capital markets activity 0.11 0.30 (0.19 ) (63 ) Other income 4.34 3.53 0.81 23 Total other income 19.93 17.59 2.34 13 Total Revenue $ 61.84 $ 54.27 $ 7.57 14 % Operating expenses $ 47.86 $ 37.62 $ 10.24 27 Pretax income before provision for credit losses 13.98 16.65 (2.67 ) (16 ) Provision for credit losses 1.74 5.03 (3.29 ) (65 ) Pretax income 12.24 11.62 0.62 5 Income tax expense 3.00 3.02 (0.02 ) (1 ) Net income $ 9.24 $ 8.60 $ 0.64 7 % Diluted EPS $ 0.52 $ 0.48 $ 0.04 8 % Return on average assets (annualized) 0.54 % 0.53 % 0.01 Return on average equity (annualized) 6.15 % 6.13 % 0.02 December 2024 Quarter Compared to Linked Quarter Three Months Ended Three Months Ended December 31, September 30, Increase/ (Dollars in millions, except per share data) (unaudited) 2024 2024 (Decrease) Net interest income $ 41.91 $ 37.68 $ 4.23 11 % Wealth management fee income 15.48 15.15 0.33 2 Capital markets activity 0.11 0.44 (0.33 ) (75 ) Other income 4.34 3.35 0.99 30 Total other income 19.93 18.94 0.99 5 Total Revenue $ 61.84 $ 56.62 $ 5.22 9 % Operating expenses $ 47.86 $ 44.65 $ 3.21 7 Pretax income before provision for credit losses 13.98 11.97 2.01 17 Provision for credit losses 1.74 1.22 0.52 43 Pretax income 12.24 10.75 1.49 14 Income tax expense 3.00 3.16 (0.16 ) (5 ) Net income $ 9.24 $ 7.59 $ 1.65 22 % Diluted EPS $ 0.52 $ 0.43 $ 0.09 21 % Return on average assets (annualized) 0.54 % 0.46 % 0.08 Return on average equity (annualized) 6.15 % 5.12 % 1.03 SUPPLEMENTAL QUARTERLY DETAILS: Wealth Management AUM/AUA in the Bank's Wealth Management Division grew to $11.9 billion at December 31, 2024 compared to $10.9 billion at December 31, 2023. For the December 2024 quarter, the Wealth Management Team generated $15.5 million in fee income, compared to $15.2 million for the September 30, 2024 quarter and $13.8 million for the December 2023 quarter. The equity markets were positive during 2024, contributing to the increase in AUM/AUA along with gross new business inflows of $710 million. John Babcock, President of the Bank's Wealth Management Division, noted, 'Q4 2024 saw continued strong client inflows totaling new accounts and client additions of $163 million ($142 million managed). 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 $85 million, or 2%, to $5.5 billion at December 31, 2024 compared to $5.4 billion at December 31, 2023, primarily driven by commercial loan originations in the latter half of the year offset by repayments, maturities and tighter lending standards across all loan categories. The biggest decline in outstanding loans during 2024 was in multifamily and commercial real estate balances. Total C&I loans and leases at December 31, 2024 were $2.4 billion or 43% of the total loan portfolio. Mr. Kennedy noted, 'During the fourth quarter of 2024, we began to see loan demand which pushed us to positive loan growth for the year and we continue building strong pipelines into 2025. We are proud to have built a leading middle market commercial banking franchise, as evidenced by our C&I Portfolio, Treasury Management services, Corporate Advisory and SBA businesses. These business lines fit perfectly with our private banking business model and will generate solid production going forward. During the quarter, we originated loans that carried an average spread of more than 4% above our 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 $41.9 million and NIM of 2.46% for Q4 2024 increased $4.2 million and 12 basis points from NII of $37.7 million and NIM of 2.34% for the linked quarter (Q3 2024), and increased $5.2 million and 17 basis points from NII of $36.7 million and NIM of 2.29% compared to the prior year period (Q4 2023). Our single point of contact private banking strategy continues to deliver lower cost core deposit relationships. Funding / Liquidity / Interest Rate Risk Management Total deposits increased $855 million to $6.1 billion at December 31, 2024 from $5.3 billion at December 31, 2023. The change in deposit balances included an intentional decline in brokered deposits and non-core deposit relationships. 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 December 31, 2024, compared to $404 million at December 31, 2023. At December 31, 2024, the Company's balance sheet liquidity (investments available for sale, interest-earning deposits and cash) totaled $1.2 billion, or 17% of assets. The Company maintains additional liquidity resources of approximately $3.2 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 December 31, 2024, which amounts to 282% 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 $114,000 for the December 2024 quarter compared to $435,000 for the September 2024 quarter and $296,000 for the December 2023 quarter. Three Months Ended Three Months Ended Three Months Ended December 31, September 30, December 31, (Dollars in thousands, except per share data) (unaudited) 2024 2024 2023 Gain on loans held for sale at fair value (Mortgage banking) $ 58 $ 15 $ 18 Gain on sale of SBA loans — 365 239 Corporate advisory fee income 56 55 39 Total capital markets activity $ 114 $ 435 $ 296 Other Noninterest Income (other than Wealth Management Fee Income and Income from Capital Markets Activities) Other noninterest income was $4.3 million for Q4 2024 compared to $3.4 million for Q3 2024 and $3.5 million for Q4 2023. Q4 2024 included $646,000 of income recorded by the Equipment Finance Division related to equipment transfers to lessees upon the termination of leases, compared to $225,000 in Q3 2024 and $309,000 in Q4 2023, respectively. Additionally, Q4 2024 included $880,000 of unused line fees compared to $845,000 for Q3 2024 and $750,000 for Q4 2023. 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 $47.9 million for the fourth quarter of 2024, compared to $44.6 million for the third quarter of 2024 and $37.6 million for the quarter ended December 31, 2023. The increase during the fourth quarter of 2024 was primarily driven by expenses associated with the Company's expansion into New York City. Q4 2024 also includes certain one-time expenses related to the Company's re-branding initiative, which occurred on January 1, 2025. 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 December 31, 2024 was 24.5%, as compared to 29.4% for the September 2024 quarter and 26.0% for the quarter ended December 31, 2023. 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 increased to $100.2 million, or 1.43% of total assets, at December 31, 2024, as compared to $80.5 million, or 1.18% of total assets, at September 30, 2024. The increase during the fourth quarter was driven by the migration of three multifamily loans totaling $19.7 million to nonperforming status during the period. Loans past due 30 to 89 days and still accruing declined significantly to $4.9 million, or 0.09% of total loans, at December 31, 2024 compared to $31.4 million, or 0.59% of total loans, at September 30, 2024. Criticized and classified loans declined to $191.9 million at December 31, 2024, reflecting a decrease of $69.2 million as compared to $261.1 million at September 30, 2024. The Company currently has no loans or leases on deferral and still accruing. For the quarter ended December 31, 2024, the provision for credit losses was $1.8 million compared to $1.2 million for the September 2024 quarter and $5.1 million for the December 2023 quarter. The provision for credit losses in the fourth quarter of 2024 was driven by loan growth in addition to $2.9 million in specific reserves required for the nonperforming multifamily loans previously mentioned. The elevated provision recognized during the fourth quarter of 2023 was associated with a $5.6 million charge-off of one freight related credit. At December 31, 2024, the allowance for credit losses was $73.0 million (1.32% of total loans), compared to $71.3 million (1.34% of total loans) at September 30, 2024, and $65.9 million (1.21% of total loans) at December 31, 2023. Mr. Kennedy noted, 'We continue to see our asset quality metrics improve, which supports our position that most of our credit issues are isolated to a small number of specific borrowers and sponsors. We continue to work through each credit individually while building up appropriate reserve coverage. All of the multifamily loans that matured or repriced in 2024 have continued to make their scheduled payments despite the higher rate environment.' Capital The Company's capital position declined during the fourth quarter of 2024 due to additional accumulated other comprehensive loss of $11.6 million related to the fair value of the Company's investment securities portfolio due to the interest rate environment and a quarterly dividend payment totaling $875,000; partially offset by net income of $9.2 million. Tangible book value per share increased 5% to $31.89 at December 31, 2024 from $30.31 at December 31, 2023. 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 5% to $34.45 per share at December 31, 2024 compared to $32.90 at December 31, 2023. The Company's and Bank's regulatory capital ratios as of December 31, 2024 remain strong and reflect increases from December 31, 2023 levels. 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 September 30, 2024), the Bank remains well capitalized over a two-year stress period. On December 19, 2024, the Company declared a cash dividend of $0.05 per share payable on February 21, 2025 to shareholders of record on February 6, 2025. ABOUT THE COMPANY Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $7.0 billion and assets under management and/or administration of $11.9 billion as of December 31, 2024. Founded in 1921, Peapack Private Bank & Trust 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 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; 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, 2023. 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 Dec 31, Sept 30, June 30, March 31, Dec 31, 2024 2024 2024 2024 2023 Income Statement Data: Interest income $ 86,166 $ 83,203 $ 79,238 $ 79,194 $ 80,178 Interest expense 44,258 45,522 44,196 44,819 43,503 Net interest income 41,908 37,681 35,042 34,375 36,675 Wealth management fee income 15,482 15,150 16,419 14,407 13,758 Service charges and fees 1,323 1,327 1,345 1,322 1,255 Bank owned life insurance 335 390 328 503 357 Gain on loans held for sale at fair value (Mortgage banking) 58 15 34 56 18 Gain on loans held for sale at lower of cost or fair value — — 23 — — Gain on sale of SBA loans — 365 449 400 239 Corporate advisory fee income 56 55 103 818 39 Other income 2,125 1,162 2,938 1,306 1,339 Fair value adjustment for equity securities 549 474 (84 ) (111 ) 585 Total other income 19,928 18,938 21,555 18,701 17,590 Total revenue 61,836 56,619 56,597 53,076 54,265 Salaries and employee benefits 32,915 31,050 29,884 28,476 24,320 Premises and equipment 5,995 5,633 5,776 5,081 5,416 FDIC insurance expense 825 870 870 945 765 Other expenses 8,125 7,096 6,596 5,539 7,115 Total operating expenses 47,860 44,649 43,126 40,041 37,616 Pretax income before provision for credit losses 13,976 11,970 13,471 13,035 16,649 Provision for credit losses 1,738 1,224 3,911 627 5,026 Income before income taxes 12,238 10,746 9,560 12,408 11,623 Income tax expense 2,998 3,159 2,030 3,777 3,024 Net income $ 9,240 $ 7,587 $ 7,530 $ 8,631 $ 8,599 Per Common Share Data: Earnings per share (basic) $ 0.53 $ 0.43 $ 0.42 $ 0.49 $ 0.48 Earnings per share (diluted) 0.52 0.43 0.42 0.48 0.48 Weighted average number of common shares outstanding: Basic 17,585,213 17,616,046 17,747,070 17,711,639 17,770,158 Diluted 17,770,717 17,700,042 17,792,296 17,805,347 17,961,400 Performance Ratios: Return on average assets annualized (ROAA) 0.54 % 0.46 % 0.47 % 0.54 % 0.53 % Return on average equity annualized (ROAE) 6.15 % 5.12 % 5.22 % 5.94 % 6.13 % Return on average tangible equity annualized (ROATCE) (A) 6.65 % 5.54 % 5.67 % 6.45 % 6.68 % Net interest margin (tax-equivalent basis) 2.46 % 2.34 % 2.25 % 2.20 % 2.29 % GAAP efficiency ratio (B) 77.40 % 78.86 % 76.20 % 75.44 % 69.32 % Operating expenses / average assets annualized 2.77 % 2.73 % 2.70 % 2.51 % 2.33 % (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 SELECTED CONSOLIDATED FINANCIAL DATA (Dollars in Thousands, except per share data) (Unaudited) For the Twelve Months Ended December 31, Change 2024 2023 $ % Income Statement Data: Interest income $ 327,801 $ 304,010 $ 23,791 8 % Interest expense 178,795 147,921 30,874 21 % Net interest income 149,006 156,089 (7,083 ) -5 % Wealth management fee income 61,458 55,747 5,711 10 % Service charges and fees 5,317 5,152 165 3 % Bank owned life insurance 1,556 1,269 287 23 % Gain on loans held for sale at fair value (Mortgage banking) 163 91 72 79 % Gain on loans held for sale at lower of cost or fair value 23 — 23 N/A Gain on sale of SBA loans 1,214 2,433 (1,219 ) -50 % Corporate advisory fee income 1,032 219 813 371 % Other income 7,531 8,486 (955 ) -11 % Fair value adjustment for equity securities 828 181 647 357 % Total other income 79,122 73,578 5,544 8 % Total revenue 228,128 229,667 (1,539 ) -1 % Salaries and employee benefits 122,325 100,524 21,801 22 % Premises and equipment 22,485 19,733 2,752 14 % FDIC insurance expense 3,510 2,946 564 19 % Other expenses 27,356 25,092 2,264 9 % Total operating expenses 175,676 148,295 27,381 18 % Pretax income before provision for credit losses 52,452 81,372 (28,920 ) -36 % Provision for credit losses 7,500 14,091 (6,591 ) -47 % Income before income taxes 44,952 67,281 (22,329 ) -33 % Income tax expense 11,964 18,427 (6,463 ) -35 % Net income $ 32,988 $ 48,854 $ (15,866 ) -32 % Per Common Share Data: Earnings per share (basic) $ 1.87 $ 2.74 $ (0.87 ) -32 % Earnings per share (diluted) 1.85 2.71 (0.86 ) -32 % Weighted average number of common shares outstanding: Basic 17,664,640 17,849,558 (184,918 ) -1 % Diluted 17,839,761 18,049,052 (209,291 ) -1 % Performance Ratios: Return on average assets (ROAA) 0.50 % 0.76 % (0.26 )% -34 % Return on average equity (ROAE) 5.61 % 8.77 % (3.16 )% -36 % Return on average tangible equity (ROATCE) (A) 6.08 % 9.57 % (3.49 )% -36 % Net interest margin (tax-equivalent basis) 2.32 % 2.48 % (0.16 )% -7 % GAAP efficiency ratio (B) 77.01 % 64.57 % 12.44 % 19 % Operating expenses / average assets 2.68 % 2.32 % 0.36 % 15 % (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 Dec 31, Sept 30, June 30, March 31, Dec 31, 2024 2024 2024 2024 2023 ASSETS Cash and due from banks $ 8,492 $ 8,129 $ 5,586 $ 5,769 $ 5,887 Federal funds sold — — — — — Interest-earning deposits 382,875 484,529 310,143 189,069 181,784 Total cash and cash equivalents 391,367 492,658 315,729 194,838 187,671 Securities available for sale 784,544 682,713 591,884 550,870 550,617 Securities held to maturity 101,635 103,158 105,013 106,498 107,755 CRA equity security, at fair value 13,041 13,445 12,971 13,055 13,166 FHLB and FRB stock, at cost (A) 12,373 12,459 12,478 18,079 31,044 Residential mortgage 614,840 591,374 579,057 581,426 578,427 Multifamily mortgage 1,799,754 1,784,861 1,796,687 1,827,165 1,836,390 Commercial mortgage 588,104 578,559 600,859 615,964 637,625 Commercial and industrial loans 2,397,699 2,247,853 2,185,827 2,235,342 2,284,940 Consumer loans 77,785 78,160 69,579 66,827 62,036 Home equity lines of credit 42,327 38,971 37,117 35,542 36,464 Other loans 411 389 172 184 238 Total loans 5,520,920 5,320,167 5,269,298 5,362,450 5,436,120 Less: Allowance for credit losses 72,992 71,283 67,984 66,251 65,888 Net loans 5,447,928 5,248,884 5,201,314 5,296,199 5,370,232 Premises and equipment 28,888 25,716 24,932 24,494 24,166 Accrued interest receivable 29,898 31,973 33,534 32,672 30,676 Bank owned life insurance 47,981 47,837 47,716 47,580 47,581 Goodwill and other intangible assets 44,926 45,198 45,470 45,742 46,014 Finance lease right-of-use assets 985 1,020 1,055 1,900 2,087 Operating lease right-of-use assets 40,289 41,650 38,683 16,035 12,096 Due from brokers — — 3,184 — — Other assets 67,383 47,081 71,387 60,591 53,752 TOTAL ASSETS $ 7,011,238 $ 6,793,792 $ 6,505,350 $ 6,408,553 $ 6,476,857 LIABILITIES Deposits: Noninterest-bearing demand deposits $ 1,112,734 $ 1,079,877 $ 950,368 $ 914,893 $ 957,687 Interest-bearing demand deposits 3,334,269 3,316,217 3,229,814 3,029,119 2,882,193 Savings 103,136 103,979 105,602 108,305 111,573 Money market accounts 1,078,024 902,562 824,158 775,132 740,559 Certificates of deposit – Retail 483,998 515,297 502,810 486,079 443,791 Certificates of deposit – Listing Service 6,861 7,454 7,454 7,704 7,804 Subtotal 'customer' deposits 6,119,022 5,925,386 5,620,206 5,321,232 5,143,607 IB Demand – Brokered 10,000 10,000 10,000 10,000 10,000 Certificates of deposit – Brokered — — 26,000 145,480 120,507 Total deposits 6,129,022 5,935,386 5,656,206 5,476,712 5,274,114 Short-term borrowings — — — 119,490 403,814 Finance lease liability 1,348 1,388 1,427 3,104 3,430 Operating lease liability 43,569 44,775 41,347 17,630 12,876 Subordinated debt, net 133,561 133,489 133,417 133,346 133,274 Due to brokers 18,514 — 9,981 — — Other liabilities 79,375 71,140 74,650 75,892 65,668 TOTAL LIABILITIES 6,405,389 6,186,178 5,917,028 5,826,174 5,893,176 Shareholders' equity 605,849 607,614 588,322 582,379 583,681 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 7,011,238 $ 6,793,792 $ 6,505,350 $ 6,408,553 $ 6,476,857 Assets under management and / or administration at Peapack Private Bank & Trust's Private Wealth Management Division (market value, not included above-dollars in billions) $ 11.9 $ 12.1 $ 11.5 $ 11.5 $ 10.9 (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 Dec 31, Sept 30, June 30, March 31, Dec 31, 2024 2024 2024 2024 2023 Asset Quality: Loans past due over 90 days and still accruing $ — $ — $ — $ 35 $ — Nonaccrual loans 100,168 80,453 82,075 69,811 61,324 Other real estate owned — — — — — Total nonperforming assets $ 100,168 $ 80,453 $ 82,075 $ 69,846 $ 61,324 Nonperforming loans to total loans 1.81 % 1.51 % 1.56 % 1.30 % 1.13 % Nonperforming assets to total assets 1.43 % 1.18 % 1.26 % 1.09 % 0.95 % Performing modifications (A)(B) $ 40,350 $ 51,796 $ 26,788 $ 12,311 $ 248 Loans past due 30 through 89 days and still accruing $ 4,870 $ 31,446 $ 34,714 $ 73,699 $ 34,589 Loans subject to special mention $ 46,518 $ 113,655 $ 140,791 $ 59,450 $ 71,397 Classified loans $ 145,394 $ 147,422 $ 128,311 $ 117,869 $ 84,372 Individually evaluated loans $ 99,775 $ 79,972 $ 81,802 $ 69,530 $ 60,710 Allowance for credit losses ('ACL'): Beginning of quarter $ 71,283 $ 67,984 $ 66,251 $ 65,888 $ 68,592 Provision for credit losses (C) 1,753 1,227 3,901 615 5,082 (Charge-offs)/recoveries, net (D) (44 ) 2,072 (2,168 ) (252 ) (7,786 ) End of quarter $ 72,992 $ 71,283 $ 67,984 $ 66,251 $ 65,888 ACL to nonperforming loans 72.87 % 88.60 % 82.83 % 94.85 % 107.44 % ACL to total loans 1.32 % 1.34 % 1.29 % 1.24 % 1.21 % Collectively evaluated ACL to total loans (E) 1.09 % 1.16 % 1.14 % 1.15 % 1.13 % (A) Amounts reflect modifications that are paying according to modified terms. (B) Excludes modifications included in nonaccrual loans of $3.6 million at December 31, 2024, $3.7 million at September 30, 2024, $3.2 million at June 30, 2024, $3.2 million at March 31, 2024 and $3.0 million at December 31, 2023. (C) Excludes 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, a provision of $12,000 at March 31, 2024 and a credit of $55,000 at December 31, 2023 related to off-balance sheet commitments. (D) Net charge-offs for the quarter ended December 31, 2023 included charge-offs of $2.2 million of a previously established reserve to loans individually evaluated on one multifamily loan and $5.6 million on one equipment finance relationship. (E) 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 December 31, September 30, December 31, 2024 2024 2023 Capital Adequacy Equity to total assets (A) 8.64 % 8.94 % 9.01 % Tangible equity to tangible assets (B) 8.05 % 8.33 % 8.36 % Book value per share (C) $ 34.45 $ 34.57 $ 32.90 Tangible book value per share (D) $ 31.89 $ 32.00 $ 30.31 Tangible equity to tangible assets excluding other comprehensive loss* 8.92 % 9.07 % 9.28 % Tangible book value per share excluding other comprehensive loss* $ 35.67 $ 35.11 $ 33.97 *Excludes other comprehensive loss of $66.4 million for the quarter ended December 31, 2024, $54.8 million for the quarter ended September 30, 2024, and $64.9 million for the quarter ended December 31, 2023. 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 December 31, September 30, December 31, 2024 2024 2023 Regulatory Capital – Holding Company Tier I leverage $ 625,830 9.01% $ 615,486 9.33% $ 600,444 9.19% Tier I capital to risk-weighted assets 625,830 11.51 615,486 11.67 600,444 11.43 Common equity tier I capital ratio to risk-weighted assets 625,824 11.51 615,474 11.67 600,432 11.43 Tier I & II capital to risk-weighted assets 806,404 14.84 800,961 15.19 785,413 14.95 Regulatory Capital – Bank Tier I leverage (E) $ 733,389 10.57% $ 724,038 10.99% $ 707,446 10.83% Tier I capital to risk-weighted assets (F) 733,389 13.50 724,038 13.75 707,446 13.48 Common equity tier I capital ratio to risk-weighted assets (G) 733,383 13.50 724,026 13.75 707,434 13.47 Tier I & II capital to risk-weighted assets (H) 801,365 14.75 789,954 15.00 773,083 14.73 (E) Regulatory well capitalized standard (including capital conservation buffer) = 4.00% ($278 million) (F) Regulatory well capitalized standard (including capital conservation buffer) = 8.50% ($462 million) (G) Regulatory well capitalized standard (including capital conservation buffer) = 7.00% ($380 million) (H) Regulatory well capitalized standard (including capital conservation buffer) = 10.50% ($570 million) PEAPACK-GLADSTONE FINANCIAL CORPORATION LOANS CLOSED (Dollars in Thousands) (Unaudited) For the Quarters Ended Dec 31, Sept 30, June 30, March 31, Dec 31, 2024 2024 2024 2024 2023 Residential loans retained $ 39,279 $ 26,955 $ 16,087 $ 11,661 $ 5,895 Residential loans sold 4,220 1,853 2,361 4,025 1,449 Total residential loans 43,499 28,808 18,448 15,686 7,344 Commercial real estate 15,800 4,300 2,600 11,500 21,375 Multifamily 12,550 11,295 4,330 1,900 5,725 Commercial (C&I) loans (A) (B) 432,115 242,829 103,065 145,803 145,397 SBA 5,964 9,106 8,200 2,790 7,326 Wealth lines of credit (A) 550 11,675 10,950 3,850 350 Total commercial loans 466,979 279,205 129,145 165,843 180,173 Installment loans 7,182 8,137 1,664 6,868 2,946 Home equity lines of credit (A) 10,236 10,421 4,787 2,103 4,174 Total loans closed $ 527,896 $ 326,571 $ 154,044 $ 190,500 $ 194,637 For the Twelve Months Ended Dec 31, Dec 31, 2024 2023 Residential loans retained $ 93,982 $ 96,866 Residential loans sold 12,459 6,501 Total residential loans 106,441 103,367 Commercial real estate 34,200 87,500 Multifamily 30,075 65,537 Commercial (C&I) loans (A) (B) 923,812 689,028 SBA 26,060 31,289 Wealth lines of credit (A) 27,025 34,400 Total commercial loans 1,041,172 907,754 Installment loans 23,851 26,618 Home equity lines of credit (A) 27,547 19,477 Total loans closed $ 1,199,011 $ 1,057,216 (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 December 31, 2024 December 31, 2023 Average Income/ Annualized Average Income/ Annualized Balance Expense Yield Balance Expense Yield ASSETS: Interest-earning assets: Investments: Taxable (A) $ 937,314 $ 6,992 2.98 % $ 798,661 $ 5,202 2.61 % Tax-exempt (A) (B) — — — 106 — — Loans (B) (C): Mortgages 593,454 6,181 4.17 581,088 5,300 3.65 Commercial mortgages 2,364,893 25,876 4.38 2,492,204 28,318 4.55 Commercial 2,274,408 39,394 6.93 2,274,841 37,958 6.67 Commercial construction 11,698 146 4.99 16,680 382 9.16 Installment 77,547 1,290 6.65 59,988 1,037 6.91 Home equity 41,496 815 7.86 35,570 721 8.11 Other 329 5 6.08 246 8 13.01 Total loans 5,363,825 73,707 5.50 5,460,617 73,724 5.40 Federal funds sold — — — — — — Interest-earning deposits 513,010 5,722 4.46 146,699 1,623 4.43 Total interest-earning assets 6,814,149 86,421 5.07 % 6,406,083 80,549 5.03 % Noninterest-earning assets: Cash and due from banks 8,913 10,709 Allowance for credit losses (72,455 ) (68,289 ) Premises and equipment 28,051 24,387 Other assets 123,283 85,720 Total noninterest-earning assets 87,792 52,527 Total assets $ 6,901,941 $ 6,458,610 LIABILITIES: Interest-bearing deposits: Checking $ 3,332,212 $ 30,304 3.64 % $ 2,890,964 $ 25,811 3.57 % Money markets 986,483 6,892 2.79 771,051 5,247 2.72 Savings 102,820 108 0.42 112,969 81 0.29 Certificates of deposit – retail 508,257 5,222 4.11 440,712 4,086 3.71 Subtotal interest-bearing deposits 4,929,772 42,526 3.45 4,215,696 35,225 3.34 Interest-bearing demand – brokered 10,000 129 5.16 10,000 142 5.68 Certificates of deposit – brokered — — — 115,722 1,454 5.03 Total interest-bearing deposits 4,939,772 42,655 3.45 4,341,418 36,821 3.39 Borrowings — — — 357,384 4,955 5.55 Capital lease obligation 1,362 14 4.11 3,539 42 4.75 Subordinated debt 133,521 1,589 4.76 133,234 1,685 5.06 Total interest-bearing liabilities 5,074,655 44,258 3.49 % 4,835,575 43,503 3.60 % Noninterest-bearing liabilities: Demand deposits 1,114,427 963,968 Accrued expenses and other liabilities 112,051 98,012 Total noninterest-bearing liabilities 1,226,478 1,061,980 Shareholders' equity 600,808 561,055 Total liabilities and shareholders' equity $ 6,901,941 $ 6,458,610 Net interest income $ 42,163 $ 37,046 Net interest spread 1.58 % 1.43 % Net interest margin (D) 2.46 % 2.29 % (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 December 31, 2024 September 30, 2024 Average Income/ Annualized Average Income/ Annualized Balance Expense Yield Balance Expense Yield ASSETS: Interest-earning assets: Investments: Taxable (A) $ 937,314 $ 6,992 2.98 % $ 865,892 $ 6,107 2.82 % Tax-exempt (A) (B) — — — — — — Loans (B) (C): Mortgages 593,454 6,181 4.17 579,949 5,834 4.02 Commercial mortgages 2,364,893 25,876 4.38 2,381,771 27,362 4.60 Commercial 2,274,408 39,394 6.93 2,159,648 37,588 6.96 Commercial construction 11,698 146 4.99 22,371 507 9.07 Installment 77,547 1,290 6.65 73,440 1,267 6.90 Home equity 41,496 815 7.86 38,768 814 8.40 Other 329 5 6.08 239 6 10.04 Total loans 5,363,825 73,707 5.50 5,256,186 73,378 5.58 Federal funds sold — — — — — — Interest-earning deposits 513,010 5,722 4.46 326,707 3,982 4.88 Total interest-earning assets 6,814,149 86,421 5.07 % 6,448,785 83,467 5.18 % Noninterest-earning assets: Cash and due from banks 8,913 7,521 Allowance for credit losses (72,455 ) (70,317 ) Premises and equipment 28,051 25,530 Other assets 123,283 139,042 Total noninterest-earning assets 87,792 101,776 Total assets $ 6,901,941 $ 6,550,561 LIABILITIES: Interest-bearing deposits: Checking $ 3,332,212 $ 30,304 3.64 % $ 3,214,186 $ 31,506 3.92 % Money markets 986,483 6,892 2.79 833,325 6,419 3.08 Savings 102,820 108 0.42 104,293 117 0.45 Certificates of deposit – retail 508,257 5,222 4.11 512,794 5,540 4.32 Subtotal interest-bearing deposits 4,929,772 42,526 3.45 4,664,598 43,582 3.74 Interest-bearing demand – brokered 10,000 129 5.16 10,000 134 5.36 Certificates of deposit – brokered — — — 7,913 106 5.36 Total interest-bearing deposits 4,939,772 42,655 3.45 4,682,511 43,822 3.74 Borrowings — — — — — — Capital lease obligation 1,362 14 4.11 1,401 15 4.28 Subordinated debt 133,521 1,589 4.76 133,449 1,685 5.05 Total interest-bearing liabilities 5,074,655 44,258 3.49 % 4,817,361 45,522 3.78 % Noninterest-bearing liabilities: Demand deposits 1,114,427 1,016,014 Accrued expenses and other liabilities 112,051 124,399 Total noninterest-bearing liabilities 1,226,478 1,140,413 Shareholders' equity 600,808 592,787 Total liabilities and shareholders' equity $ 6,901,941 $ 6,550,561 Net interest income $ 42,163 $ 37,945 Net interest spread 1.58 % 1.40 % Net interest margin (D) 2.46 % 2.34 % (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 Twelve Months Ended December 31, 2024 December 31, 2023 Average Income/ Average Income/ Balance Expense Yield Balance Expense Yield ASSETS: Interest-earning assets: Investments: Taxable (A) $ 849,933 $ 23,402 2.75 % $ 800,811 $ 19,743 2.47 % Tax-exempt (A) (B) — — — 1,251 50 4.00 Loans (B) (C): Mortgages 582,024 23,017 3.95 562,488 19,733 3.51 Commercial mortgages 2,406,726 107,659 4.47 2,494,427 108,819 4.36 Commercial 2,216,401 151,610 6.84 2,254,617 144,141 6.39 Commercial construction 18,647 1,570 8.42 10,115 918 9.08 Installment 70,852 4,814 6.79 51,929 3,454 6.65 Home equity 38,321 3,113 8.12 34,332 2,624 7.64 Other 246 25 10.16 257 29 11.28 Total loans 5,333,217 291,808 5.47 5,408,165 279,718 5.17 Federal funds sold — — — — — — Interest-earning deposits 297,448 13,644 4.59 146,977 6,075 4.13 Total interest-earning assets 6,480,598 328,854 5.07 % 6,357,204 305,586 4.81 % Noninterest-earning assets: Cash and due from banks 8,517 8,973 Allowance for credit losses (69,372 ) (64,149 ) Premises and equipment 25,705 23,986 Other assets 110,938 79,192 Total noninterest-earning assets 75,788 48,002 Total assets $ 6,556,386 $ 6,405,206 LIABILITIES: Interest-bearing deposits: Checking $ 3,149,550 $ 118,497 3.76 % $ 2,777,390 $ 88,829 3.20 % Money markets 842,606 24,850 2.95 862,686 18,432 2.14 Savings 105,351 410 0.39 124,538 229 0.18 Certificates of deposit – retail 500,842 20,983 4.19 400,155 11,736 2.93 Subtotal interest-bearing deposits 4,598,349 164,740 3.58 4,164,769 119,226 2.86 Interest-bearing demand – brokered 10,000 523 5.23 13,973 611 4.37 Certificates of deposit – brokered 58,425 2,950 5.05 67,998 3,038 4.47 Total interest-bearing deposits 4,666,774 168,213 3.60 4,246,740 122,875 2.89 Borrowings 65,299 3,848 5.89 337,777 18,204 5.39 Capital lease obligation 2,207 90 4.08 4,018 191 4.75 Subordinated debt 133,413 6,644 4.98 133,127 6,651 5.00 Total interest-bearing liabilities 4,867,693 178,795 3.67 % 4,721,662 147,921 3.13 % Noninterest-bearing liabilities: Demand deposits 998,497 1,040,403 Accrued expenses and other liabilities 102,197 86,193 Total noninterest-bearing liabilities 1,100,694 1,126,596 Shareholders' equity 587,999 556,948 Total liabilities and shareholders' equity $ 6,556,386 $ 6,405,206 Net interest income $ 150,059 $ 157,665 Net interest spread 1.40 % 1.68 % Net interest margin (D) 2.32 % 2.48 % (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 Dec 31, Sept 30, June 30, March 31, Dec 31, Tangible Book Value Per Share 2024 2024 2024 2024 2023 Shareholders' equity $ 605,849 $ 607,614 $ 588,322 $ 582,379 $ 583,681 Less: Intangible assets, net 44,926 45,198 45,470 45,742 46,014 Tangible equity $ 560,923 $ 562,416 $ 542,852 $ 536,637 $ 537,667 Less: other comprehensive loss (66,411 ) (54,820 ) (68,342 ) (67,760 ) (64,878 ) Tangible equity excluding other comprehensive loss $ 627,334 $ 617,236 $ 611,194 $ 604,397 $ 602,545 Period end shares outstanding 17,586,616 17,577,747 17,666,490 17,761,538 17,739,677 Tangible book value per share $ 31.89 $ 32.00 $ 30.73 $ 30.21 $ 30.31 Tangible book value per share excluding other comprehensive loss $ 35.67 $ 35.11 $ 34.60 $ 34.03 $ 33.97 Book value per share 34.45 34.57 33.30 32.79 32.90 Tangible Equity to Tangible Assets Total assets $ 7,011,238 $ 6,793,792 $ 6,505,350 $ 6,408,553 $ 6,476,857 Less: Intangible assets, net 44,926 45,198 45,470 45,742 46,014 Tangible assets $ 6,966,312 $ 6,748,594 $ 6,459,880 $ 6,362,811 $ 6,430,843 Less: other comprehensive loss (66,411 ) (54,820 ) (68,342 ) (67,760 ) (64,878 ) Tangible assets excluding other comprehensive loss $ 7,032,723 $ 6,803,414 $ 6,528,222 $ 6,430,571 $ 6,495,721 Tangible equity to tangible assets 8.05 % 8.33 % 8.40 % 8.43 % 8.36 % Tangible equity to tangible assets excluding other comprehensive loss 8.92 % 9.07 % 9.36 % 9.40 % 9.28 % Equity to assets 8.64 % 8.94 % 9.04 % 9.09 % 9.01 % (Dollars in thousands) Three Months Ended Dec 31, Sept 30, June 30, March 31, Dec 31, Return on Average Tangible Equity 2024 2024 2024 2024 2023 Net income $ 9,240 $ 7,587 $ 7,530 $ 8,631 $ 8,599 Average shareholders' equity $ 600,808 $ 592,787 $ 577,206 $ 581,003 $ 561,055 Less: Average intangible assets, net 45,079 45,350 45,624 45,903 46,167 Average tangible equity $ 555,729 $ 547,437 $ 531,582 $ 535,100 $ 514,888 Return on average tangible common equity 6.65 % 5.54 % 5.67 % 6.45 % 6.68 % For the Twelve Months Ended Dec 31, Dec 31, Return on Average Tangible Equity 2024 2023 Net income $ 32,988 $ 48,854 Average shareholders' equity $ 587,999 $ 556,948 Less: Average intangible assets, net 45,488 46,659 Average tangible equity $ 542,511 $ 510,289 Return on average tangible common equity 6.08 % 9.57 % (Dollars in thousands) Three Months Ended Dec 31, Sept 30, June 30, March 31, Dec 31, Efficiency Ratio 2024 2024 2024 2024 2023 Net interest income $ 41,908 $ 37,681 $ 35,042 $ 34,375 $ 36,675 Total other income 19,928 18,938 21,555 18,701 17,590 Add: Fair value adjustment for equity securities (549 ) (474 ) 84 111 (585 ) 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 $ 61,287 $ 56,090 $ 56,658 $ 53,006 $ 53,680 Operating expenses $ 47,860 $ 44,649 $ 43,126 $ 40,041 $ 37,616 Total operating expense $ 47,860 $ 44,649 $ 43,126 $ 40,041 $ 37,616 Efficiency ratio 78.09 % 79.60 % 76.12 % 75.54 % 70.07 % (Dollars in thousands) For the Twelve Months Ended Dec 31, Dec 31, Efficiency Ratio 2024 2023 Net interest income $ 149,006 $ 156,089 Total other income 79,122 73,578 Add: Fair value adjustment for equity securities (828 ) (181 ) Less: Gain on loans held for sale at lower of cost or fair value (23 ) — Income from life insurance proceeds (236 ) — Total recurring revenue $ 227,041 $ 229,486 Operating expenses $ 175,676 $ 148,295 Less: Accelerated Expense for Retirement — 1,965 Branch Closure Expense — 175 Total operating expense $ 175,676 $ 146,155 Efficiency ratio 77.38 % 63.69 %
