Peapack-Gladstone Financial Corporation Reports Q2 2025 Net Income of $7.9 Million

Peapack-Gladstone Financial Corporation reported its financial results for the second quarter of 2025, revealing a net income of $7.9 million, or $0.45 per diluted share, compared to $7.5 million, or $0.42 per diluted share, in the same period last year. For the first half of 2025, the company recorded a net income of $15.5 million, down from $16.2 million in the first half of 2024. Total interest income increased to $89.7 million for the second quarter, up from $79.2 million a year earlier, driven by higher interest and fees on loans, which rose to $79.7 million from $71.6 million. However, total interest expense also increased, leading to a net interest income after provision for credit losses of $41.7 million, compared to $31.1 million in the prior year.

The company’s total assets grew to $7.2 billion as of June 30, 2025, up from $7.0 billion at the end of 2024. This increase was primarily attributed to a rise in net loans, which reached $5.7 billion, compared to $5.4 billion at the end of the previous fiscal year. The allowance for credit losses also increased to $81.8 million, reflecting a higher provision for credit losses due to deteriorating economic conditions and specific reserves for certain loans. The company’s total deposits rose to $6.4 billion, up from $6.1 billion at the end of 2024, with noninterest-bearing demand deposits increasing significantly.

Operationally, Peapack-Gladstone Financial Corporation has seen a steady increase in its customer base, with total loans outstanding reaching $5.8 billion, a notable increase from $5.5 billion at the end of 2024. The company has also reported a rise in its wealth management fee income, which totaled $15.9 million for the second quarter, slightly down from $16.4 million in the same quarter last year. The company continues to focus on expanding its wealth management services, which are a key component of its overall strategy.

In terms of strategic developments, Peapack-Gladstone has been actively managing its loan portfolio, with a focus on maintaining credit quality amid changing market conditions. The company has implemented modifications to loans for borrowers experiencing financial difficulties, with a total of $57.9 million in modifications made during the first half of 2025. The company’s management remains cautious about the economic outlook, particularly regarding potential impacts on credit quality and loan performance.

Looking ahead, Peapack-Gladstone Financial Corporation anticipates continued growth in its loan and deposit portfolios, supported by its strategic focus on wealth management and customer service. However, management has indicated that they will remain vigilant regarding credit quality and economic conditions, which may influence future performance. The company is committed to enhancing its operational efficiency and expanding its market presence while navigating the challenges posed by the current economic environment.