Peapack-Gladstone Financial Corporation (NASDAQ: PGC) reported net income of $12.2 million, or $0.69 per diluted share, for the fourth quarter ended December 31, 2025, a 26% increase from $9.6 million, or $0.54 per share, in the linked third quarter. For the full year 2025, net income rose 13% to $37.3 million, or $2.10 per diluted share, compared to $33.0 million, or $1.85 per share, in 2024.
The results underscore the company’s ability to navigate a challenging interest rate environment while executing its strategic expansion into metro New York. Net interest income grew 12% sequentially to $56.5 million, and the net interest margin expanded 27 basis points to 3.08% from 2.81% in the prior quarter. Total deposits increased $460 million, or 8%, year-over-year to $6.6 billion, with noninterest-bearing deposits surging $316 million, or 28%, during 2025. Core relationship deposits rose $828 million for the year as the company replaced higher-cost funding with lower-cost relationships.
“Our fourth quarter results demonstrate our ability to digest significant investments over a short period of time while delivering earnings growth, improved operating leverage, and meaningful shareholder value,” said Douglas L. Kennedy, President and CEO. “Strong core deposit growth, disciplined pricing, and consistent execution have driven eight consecutive quarters of net interest income growth and continued expansion in our net interest margin.”
Loan growth remained robust, with total loans increasing $738 million, or 13%, to $6.3 billion at year-end 2025. Commercial and industrial lending accounted for 55% of new originations in the fourth quarter, with C&I balances representing 44% of total loans. The company’s wealth management division also posted strong results, with assets under management and administration reaching a record $13.1 billion, up from $11.9 billion a year earlier. Wealth management fee income totaled $16.1 million in the fourth quarter, contributing 21% of total revenue.
Asset quality improved during the quarter as nonperforming assets decreased to $68.2 million, or 0.91% of total assets, from $84.1 million, or 1.13%, at September 30, 2025. The reduction was driven by the sale of two multifamily loans and one commercial loan. However, the provision for credit losses rose to $7.7 million from $4.8 million in the prior quarter, primarily due to increased specific reserves on two multifamily loans and one C&I loan. The allowance for credit losses stood at $71.0 million, or 1.14% of total loans.
“During the fourth quarter, we continued to proactively address problem credits, resulting in a meaningful reduction in nonperforming assets,” Kennedy noted. “We have committed to work through asset quality issues in a deliberate manner with an ultimate goal of preserving capital and maintaining appropriate reserve coverage.”
Capital levels remain strong, with tangible book value per share increasing 10% to $34.99 at December 31, 2025, from $31.89 a year earlier. The company declared a cash dividend of $0.05 per share payable on February 26, 2026. For more details, the full Q4 2025 Investor Update is available on the company's website at www.peapackprivate.com and via the SEC at www.sec.gov.
