Peapack-Gladstone Financial Corporation (PGC) investor relations material

Executive summary

• Achieved nine consecutive quarters of revenue growth and seven consecutive quarters of core earnings growth, driven by successful private banking strategy and investments in Metro New York.

• Net income available to common shareholders rose to $15.8 million ($0.85 per diluted share), up 11% sequentially and 89% year-over-year.

• Operating leverage improved as revenue grew 23% year-over-year while expenses increased only 7%, resulting in a 70% increase in pre-provision net revenue.

• Strategic investments in talent, technology, and product expansion, especially in Metro New York, have driven margin expansion and improved funding mix.

• Rebranding and expanded offerings position the company as a niche private bank focused on affluent clients, with recognition as a top private bank and wealth management firm in 2026.

Financial highlights

• Q2 2026 total revenue was $86.1 million, up 4% sequentially and 23% year-over-year; net income reached $15.8 million, up 11% sequentially and 99% year-over-year.

• Net interest income was $63.9 million, up 7% sequentially and 32% year-over-year; net interest margin expanded to 3.32%.

• Non-interest income was $22.1 million, with wealth management fees at $17.2 million, up 4% sequentially and 8% year-over-year.

• Efficiency ratio improved to 65%, a 252 bps sequential improvement.

• Tangible book value per share increased 3% in Q2 to $36.26, up 9% year-over-year.

Outlook and guidance

• Management targets 1% ROA and 10% ROE by Q4 2026 or early 2027, with long-term objectives above 1.25% ROA and 14% ROE.

• Deposit growth guidance remains at $200 million per quarter, with about one-third non-interest-bearing.

• Loan growth expected to be about $300 million next quarter, requiring $450–$500 million in closings.

• Net interest margin projected to grow 6–9 basis points by year-end, though some volatility is expected.

• Expansion in Metro New York and investments in technology and AI are expected to drive future growth and efficiency.