Peapack-Gladstone Financial Corporation (PGC) Q1 2026 earnings summary

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 and core earnings rising for the sixth consecutive quarter.

• Total revenue increased 28% year-over-year to $82.5 million, driven by higher net interest income and steady wealth management fees.

• Expansion in the metro New York region resulted in over 1,300 new commercial relationships, $2.1 billion in client deposits, and $1.6 billion in credit commitments, with strategic investments in talent and technology.

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

• Operating expenses rose to $55.4 million, mainly due to expansion, higher compensation, and health insurance costs.

Financial highlights

• Net interest income rose to $59.9 million, up 6% sequentially and 32% year-over-year, with net interest margin expanding to 3.26%.

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

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

• Allowance for credit losses was $67.0 million (1.04% of total loans), with ACL to nonperforming loans at 112.99%.

• Return on average assets was 0.74%; return on average equity was 8.51%.

Outlook and guidance

• Management expects continued growth through strategic expansion, technology investments, and disciplined capital management.

• Margin expansion anticipated to continue, but at a slower pace of 2-3 basis points per quarter.

• Management targets $175-$200 million in both loan and deposit growth for the year.

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

• Capital and liquidity positions are considered strong, supporting future growth and stress-tested scenarios.