Peapack-Gladstone Financial Corporation (NASDAQ: PGC), the holding company for Peapack Private Bank & Trust, announced a $50 million preferred stock commitment from affiliates of Strategic Value Bank Partners, a long-term investor focused on the banking sector. The commitment includes an initial $30 million private placement of non-cumulative perpetual convertible preferred stock, with an option to issue up to an additional $20 million through the end of 2027.
The preferred stock carries a 6.00% annual dividend rate and is non-callable for the first five years. After five years, it may be redeemed or converted into common stock at the holder's option. The issuance is not listed on any securities exchange and is expected to qualify as Tier 1 capital, subject to regulatory requirements. Proceeds will be used for general corporate purposes, including organic growth, investments at the holding-company or bank level, acquisitions, or debt reduction.
Douglas L. Kennedy, President and CEO, stated, 'We are pleased to partner with Strategic Value Bank Partners, whose long-term orientation aligns well with our strategy. Over the past two years, we have made significant investments in our expansion across the New York metropolitan market and are seeing strong results reflected in positive operating leverage and improving earnings momentum. This capital raise provides flexibility to continue executing on that growth while maintaining capital levels consistent with our long-standing targets. Importantly, it reflects our disciplined approach to capital management, including actions we have taken to improve the efficiency and quality of our capital structure.'
Marty Adams, Co-Founder and Principal of Strategic Value Bank Partners, added, 'We have been a long-time investor in PGC common stock and are excited to support the Company's continued growth. We have strong conviction in the management team and the progress made in building a premier private banking and wealth management franchise serving clients across the New York metropolitan market. This investment reflects our confidence in the Company's trajectory and our interest in deepening our long-term partnership.'
Additional details regarding the transaction, including the terms of the preferred stock and related agreements, are included in the Company's Current Report on Form 8-K filed today with the Securities and Exchange Commission. Peapack-Gladstone Financial Corporation is a New Jersey bank holding company with total assets of $7.5 billion and assets under management and/or administration of $13.1 billion as of December 31, 2025. Founded in 1921, Peapack Private Bank & Trust offers a client-centric approach to banking, providing wealth management, investment banking, commercial and personal banking solutions. Visit www.peapackprivate.com for more information.
