Key Highlights

  • Peapack-Gladstone Financial reported third quarter net income available to common shareholders of USD 18.5 million, or USD 0.99 per diluted share.
  • Diluted earnings per share increased 83% year over year, marking the company's tenth consecutive quarter of revenue growth.
  • Net interest margin expanded to 3.34%, up 53 basis points year over year, as net interest income grew 33%.
  • Wealth management fee income reached USD 17.3 million, representing 20% of total revenue for the quarter.

Diluted EPS Rises 83% on Margin Expansion

Peapack-Gladstone Financial Corporation (NASDAQ:PGC) reported third quarter net income available to common shareholders of USD 18.5 million, or USD 0.99 per diluted share, compared with USD 15.8 million, or USD 0.86 per diluted share, in the second quarter of 2026, and USD 9.6 million, or USD 0.54 per diluted share, in the third quarter of 2025. Total revenue increased 24% year over year to USD 87.5 million, marking the company's tenth consecutive quarter of revenue growth.

Net interest income increased 33% year over year to USD 67.5 million, while net interest margin expanded to 3.34%, up 2 basis points sequentially and 53 basis points year over year. Operating expenses increased just 5% year over year and declined on a linked-quarter basis, producing what the company described as another quarter of meaningful positive operating leverage.

Wealth Management and Balance Sheet Growth

Wealth management fee income was USD 17.3 million, representing 20% of total revenue, supported by assets under management and administration of USD 13.6 billion, up 6% year over year. Total loans reached USD 7.1 billion, an increase of USD 1.1 billion year over year, while deposits reached USD 7.4 billion at quarter end.

The GAAP efficiency ratio improved 166 basis points to 63.03%, while nonperforming assets declined 20% sequentially to USD 55.8 million, or 0.68% of total assets. Tangible book value per share increased 6% year over year to USD 36.24, and shareholders' equity reached USD 735.6 million, up USD 93 million year over year.

Capital Raise and Strategic Investment

During the quarter, the company issued the remaining USD 20 million of its 6% non-cumulative perpetual convertible preferred stock, part of a broader USD 50 million commitment from Strategic Value Bank Partners that began with an initial USD 30 million private placement in March 2026. The company elected to issue the remaining tranche based on the quarter's results and projected growth rates.

Continued loan and deposit growth across the company's New York City, Westchester and Long Island teams could support further revenue growth, while the sustainability of positive operating leverage depends on expense discipline continuing alongside the company's expanding relationship-based balance sheet.

Growth and Margin Metrics to Track

Net interest margin trends relative to the 3.34% reported this quarter, continued wealth management fee growth relative to the USD 17.3 million reported this period, and loan and deposit growth relative to the USD 7.1 billion and USD 7.4 billion levels reported this quarter are among the items the company has flagged for investors heading into the fourth quarter.