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, reflecting successful execution of private banking strategy and investments in the Metropolitan New York market.

• Net income available to common shareholders for Q2 2026 was $15.8 million ($0.85 per diluted share), up 11% sequentially and 89% year-over-year.

• Revenue growth was driven by higher net interest income and wealth management fees, partially offset by increased operating expenses and credit loss provisions.

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

• Strategic investments in NYC and talent have driven margin expansion, improved funding mix, and positioned the company as a niche private bank focused on affluent clients.

Financial highlights

• Total revenue for Q2 2026 was $86.1 million, up 4% sequentially and 23% year-over-year; net income available to common shareholders increased 11% to $15.8 million.

• Net interest income reached $63.9 million, up $4 million from Q1 and $15.6 million year-over-year; net interest margin expanded to 3.32%.

• Wealth management fee income for Q2 2026 was $17.2 million, up 8% year-over-year; AUM/AUA reached $13.9 billion, up 13% year-over-year.

• Operating expenses were $55.7 million, up less than 1% from Q1; efficiency ratio improved to 65%.

• EPS (diluted) reached $0.86, up 6% quarter-over-quarter and 91% year-over-year; tangible book value per share increased 3% in Q2 to $36.26, up 9% year-over-year.

Outlook and guidance

• Management expects continued growth in core deposits and loan production, supported by expansion into New York City and Long Island.

• Long-term objectives include ROA above 1.25% and ROE above 14%.

• 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.