Peapack-Gladstone Financial Corporation (PGC) investor relations material

Executive summary

• Net income for Q1 2026 was $14.2 million, up 16% sequentially and 86% year-over-year, with diluted EPS of $0.80, marking the sixth consecutive quarter of core earnings growth.

• Loans grew $184 million to $6.4 billion (12% year-over-year), and deposits rose $238 million to $6.8 billion (9% year-over-year), with over 1,300 new commercial relationships and $2.1 billion in new deposits from Metro NY expansion.

• Wealth management revenue reached $16.5 million, up 7% year-over-year, with assets under management stable at $13.1 billion.

• Strategic expansion in Metro New York, investments in talent and technology, and a resilient wealth management franchise are driving long-term value.

• Strategic Value Bank Partners committed to purchase up to $50 million of preferred stock, with $30 million closed in March 2026.

Financial highlights

• Total revenue reached $82.5 million in Q1 2026, up 28% year-over-year, with net interest income at $59.9 million, up 32% year-over-year.

• Net interest margin expanded to 3.26%, up 18 basis points sequentially and 58 basis points year-over-year.

• Efficiency ratio improved to 67%, marking six consecutive quarters of improvement.

• Tangible book value per share grew 14% year-over-year to $37.02.

• Provision for credit losses was $7.3 million, reflecting loan growth and specific reserves.

Outlook and guidance

• Management expects continued positive operating leverage and growth through Metro NY expansion, technology investments, and disciplined capital management.

• Loan and deposit growth targeted at $175–$200 million for the year, with a 70/30 mix of interest-bearing to non-interest-bearing deposits.

• Margin expansion expected to continue at a slower pace, approximately 2–3 basis points per quarter.

• Pathway to best-in-class returns by end of 2027, with expectations to cross 1% ROA and 10% return on capital by year-end.

• Focus remains on scaling C&I lending, maintaining underwriting discipline, and expanding in the New York region.