How Does Peapack-Gladstone Company Work?

Commercial and industrial lending is a significant component of Peapack-Gladstone Company operations. This segment represented 44% of the company's loan portfolio as of December 31, 2024, and accounted for 58% of new loan originations in the second quarter of 2025. Total loans grew to $5.8 billion by the first quarter of 2025 and remained at $5.8 billion by the second quarter of 2025, with commercial and industrial lending driving this expansion.

Deposits are fundamental to the company's functioning, with total deposits reaching $6.3 billion by March 31, 2025, and increasing to $6.4 billion by June 30, 2025. A key strategic focus is on cultivating lower-cost core deposit relationships, particularly through its private banking strategy and expansion into New York City, which aids in improving the net interest margin.

The wealth management division is a key differentiator for Peapack-Gladstone Company, offering fiduciary, investment management, and tax services. As of June 30, 2025, assets under management/administration (AUM/AUA) totaled $12.3 billion, with new business inflows of $193 million recorded in the second quarter of 2025.

Peapack-Gladstone Company's business model emphasizes a 'single point of contact' private banking approach. This model prioritizes high-touch client service and the delivery of customized solutions, which management believes sets it apart from larger financial institutions and forms a significant competitive advantage.

The rebranding to Peapack Private Bank & Trust in 2025 signifies a unified approach to banking and wealth management. Expansion into New York City, marked by the 300 Park Avenue branch, has been a key driver of deposit growth.

While net income saw a dip to $7.6 million in Q1 2025 from $9.2 million in Q4 2024, partly due to expansion costs and credit provisions, core operations remain robust. Full-year 2024 net income was $33.0 million, a decrease from 2023, influenced by higher operating expenses and deposit rates.

Despite challenges, total loans reached $5.8 billion and total deposits $6.3 billion by Q1 2025. The company maintains a strong liquidity position with $1.1 billion in liquid assets and no overnight borrowings as of Q1 2025.

The company's competitive edge lies in its 'single point of contact' private banking strategy, offering personalized service and sophisticated wealth management. A focus on high-margin C&I lending and strong capital ratios, with total capital to risk-weighted assets at 14.84% as of December 31, 2024, further solidifies its position.

Peapack-Gladstone has established itself as a boutique private bank within the Metro New York area, leveraging its New Jersey roots. The company reported $7.2 billion in total assets and $12.3 billion in AUM/AUA as of June 30, 2025. Strong client inflows, with $193 million in new business for its Wealth Management Division in Q2 2025, highlight its competitive standing and appeal to its target market.

The company faces several risks, including potential economic downturns impacting its core markets and pressure on net interest margins due to interest rate fluctuations or competition. Rising operating expenses from expansion and increased staffing, alongside higher provisions for credit losses observed in early 2025, also present financial challenges.

Peapack-Gladstone is strategically expanding in the Metro New York market by adding lenders and exploring new lending areas. Management is optimistic about future growth, driven by robust loan demand and new client relationships. The company's focus on a lower-cost deposit mix and disciplined risk management is expected to fuel continued success.

Analysts have issued a 'Strong Buy' rating for Peapack-Gladstone, citing its stable deposit base and projected revenue growth exceeding 10%. Strategic initiatives, including a rebrand and a new Park Avenue branch, are designed to attract high-net-worth private banking clients, further enhancing its growth trajectory.