Peapack-Gladstone Financials Show Robust Growth, Prompting Analyst Upgrade

Peapack-Gladstone US7046991078

Peapack-Gladstone Financial Corporation has reported a strong finish to its 2025 fiscal year, marked by significant bottom-line growth and an expanded balance sheet. This performance has led at least one prominent research firm to revise its outlook for the company's shares upward.

The bank closed the year with notable momentum in the final quarter. Key financial results include:
* Fourth-Quarter Net Income: $12.2 million, representing a 26% increase from the preceding quarter.
* Full-Year 2025 Net Earnings: $37.3 million.
* Total Deposits: $6.6 billion, an 8% year-over-year rise.
* Total Loans: $6.3 billion, growing 13% compared to the prior year.
* Quarterly Dividend: Declared at $0.05 per share.

Drivers of Profitability and Balance Sheet Expansion

For the full 2025 period, net profit reached $37.3 million, up from $32.99 million in the previous year. A primary contributor was deposit growth, which climbed to $6.6 billion. A standout was the 28% surge in non-interest-bearing deposits, which serves to strengthen the institution's funding profile.

Parallel growth was seen in lending activity, with the loan portfolio expanding by 13% to $6.3 billion. New loans were originated at a weighted average rate of 6.60%, helping to push the net interest margin for Q4 to 3.08%. One area of increased expense was provision for credit losses, which rose to $5.26 million in the fourth quarter, a substantial increase from the $44,000 recorded in the same period a year ago.

Wealth Management Strength and Revised Outlook

The Wealth Management division ended the year with assets under management of $13.1 billion. The segment attracted net new client funds of $1.0 billion throughout 2025. Fee income from wealth services amounted to $16.1 million in the final quarter, accounting for approximately 21% of the company's total revenue.

In response to the earnings release, analysts at Raymond James issued an updated assessment. They reaffirmed their "Strong Buy" rating on the stock while raising their price target from $35 to $39. Trading activity has reflected this confidence, with shares recently demonstrating resilience and closing at $35.14 yesterday, continuing a positive trend established in early February.

Shareholder Returns and Leadership Appointments

Investors are set to receive the declared $0.05 per share dividend. The record date is set for February 12, with the payment to be distributed on February 26. Concurrently, the company is fortifying its leadership team with key appointments: Mark Zingale as the new General Counsel and Elizabeth Martone as Senior Managing Director. These moves are seen as positioning the firm for its future regulatory and strategic initiatives.