Peapack-Gladstone Financial Corporation (NASDAQ Global Select Market: PGC) reported net income of $14.2 million, or $0.80 per diluted share, for the first quarter of 2026, up from $12.2 million, or $0.69 per diluted share, in the fourth quarter of 2025, and $7.6 million, or $0.43 per diluted share, in the first quarter of 2025. The results underscore continued momentum in the company's private banking strategy, with core earnings rising for a sixth consecutive quarter.
President and CEO Douglas L. Kennedy attributed the performance to steady growth in both loans and deposits, stating that total loans increased 12% over the past twelve months to $6.4 billion, while deposits grew 9% to $6.8 billion over the same period. Net interest income reached $59.9 million, marking the eighth consecutive quarter of growth, and net interest margin expanded to 3.26%, up 18 basis points from the prior quarter and 58 basis points year-over-year. The company also highlighted a 28% year-over-year increase in total revenue to $82.5 million.
During the quarter, Peapack-Gladstone announced a commitment by Strategic Value Bank Partners to purchase up to $50 million of preferred stock, with an initial $30 million private placement closed in March 2026. Kennedy noted that the capital raise provides flexibility to continue executing the company's growth and expansion plan while maintaining capital levels consistent with long-standing targets. The company also redeemed $100 million of subordinated debt in the quarter, replacing a portion with the preferred equity issuance to enhance capital quality.
Wealth management fee income totaled $16.5 million for the quarter, up from $16.1 million in the prior quarter, driven by client inflows of $227 million. Assets under management and administration remained stable at $13.1 billion despite market volatility. John Babcock, President of the Wealth Management Division, emphasized disciplined cost management and operating efficiency.
On the credit front, nonperforming assets declined for the third consecutive quarter to $59.3 million, or 0.77% of total assets, down from $68.2 million at year-end 2025. The provision for credit losses was $7.3 million, primarily related to loan growth and changes in specific reserves. The allowance for credit losses stood at $67.0 million, or 1.04% of total loans, at March 31, 2026.
The company's capital position strengthened, with tangible book value per share increasing 14% year-over-year to $37.02, and book value per share rising 13% to $39.48. Regulatory capital ratios remained well above well-capitalized standards. The company also declared a cash dividend of $0.05 per share, payable on May 21, 2026.
For more details, the Q1 2026 Investor Update is available on the company's website at www.peapackprivate.com and via a Current Report on Form 8-K on the SEC's website at www.sec.gov.
