Peapack-Gladstone Financial Corporation reported substantial financial growth for the first quarter of 2026, with net income reaching $14.2 million, representing an 86% increase compared to the same period in 2025. The company's diluted earnings per share rose to $0.80, up from $0.69 in the previous quarter and $0.43 in the first quarter of 2025. This performance marks the sixth consecutive quarter of core earnings growth and reflects the company's successful execution of its private banking strategy throughout the Metropolitan New York region.
President and CEO Douglas L. Kennedy attributed the results to steady growth in both loans and deposits, with total loans increasing 12% year-over-year to $6.4 billion and deposits growing 9% to $6.8 billion during the same period. The company's net interest income totaled $59.9 million for the quarter, representing the eighth consecutive quarter of growth, while the net interest margin expanded to 3.26%, an increase of 58 basis points year-over-year. Kennedy noted that this momentum reflects discipline in loan pricing and continued improvement in the funding mix.
The company's wealth management division delivered solid performance, with fee income totaling $16.5 million for the quarter, representing 20% of total revenue. Assets under management and administration remained stable at $13.1 billion despite market volatility late in the quarter. John Babcock, President of the Bank's Wealth Management Division, cited continued client inflows of $227 million along with disciplined cost management as contributing factors to the division's performance.
During the quarter, the company announced a commitment by Strategic Value Bank Partners to purchase up to $50 million of preferred stock, with an initial $30 million private placement closing in March 2026. This capital raise provides flexibility to continue executing on growth and expansion plans while maintaining capital levels consistent with long-standing targets. Kennedy emphasized that this partnership reflects the company's disciplined approach to capital management with the ultimate goal of delivering top-tier returns to shareholders.
Asset quality showed improvement, with nonperforming assets declining for the third consecutive quarter to $59.3 million, or 0.77% of total assets. The company's capital position strengthened during the quarter, with tangible book value per share increasing 14% year-over-year to $37.02. Regulatory capital ratios remain well above regulatory well-capitalized standards, with the Tier 1 Leverage Ratio at 9.24% for the company and 9.02% for the bank.
The company's detailed financial results are available in its Q1 2026 Investor Update on the company website at https://www.peapackprivate.com and via a Current Report on Form 8-K on the Securities and Exchange Commission website at https://www.sec.gov. Kennedy will host a conference call with investors on April 23, 2026, to review the quarterly results, with presentation materials available on the Investor Relations page of the company website.
