Peapack earnings rose in the third quarter of 2026 as higher net interest income helped lift revenue and profit. Peapack-Gladstone Financial Corporation reported net income available to common shareholders of $18.5 million, up from $9.6 million a year earlier.

Key Takeaways

  • Revenue rose 24% year over year to $87.5 million, while diluted earnings per share increased to $0.99 from $0.54.
  • Loans reached $7.1 billion and deposits $7.4 billion at September 30, 2026.
  • The quarter included a roughly $1.8 million income tax benefit from transferable production tax credits.

Peapack earnings and interest income

Third-quarter revenue increased from $70.7 million a year earlier and $86.1 million in the second quarter. Net interest income rose 33% year over year to $67.5 million, while the net interest margin widened to 3.34% from 2.81%.

The company attributed the improvement in net interest income and margin primarily to balance sheet repositioning, pricing discipline and higher earning-asset yields. Wealth management fee income was $17.3 million, or 20% of revenue.

Operating expenses were $55.1 million, up from $52.3 million a year earlier but down from $55.7 million in the second quarter. The effective tax rate fell to 20.5% from 29.2% a year earlier; the 2026 rate included the tax credit benefit.

Loan growth and credit costs

Total loans increased by $1.1 billion from a year earlier, with growth concentrated in commercial and industrial lending and commercial real estate, the company said. Deposits rose by $796 million over the same period.

The provision for credit losses increased to $8.5 million from $4.8 million a year earlier. Peapack said approximately $5.0 million of the third-quarter provision was attributable to loan growth, while $4.6 million related to increases in specific reserves, partly offset by improved economic factors.

Loans 30 to 89 days past due and still accruing fell to $39.4 million at September 30 from $48.1 million at June 30. The allowance for credit losses stood at $73.0 million, or 1.03% of total loans.

Capital and dividend reinvestment

Peapack issued $20 million of 6% non-cumulative perpetual convertible preferred stock on July 24, completing a $50 million commitment from Strategic Value Bank Partners. An initial $30 million placement closed in March.

The company also reinstated a dividend reinvestment plan feature allowing participants to purchase common shares at a 3% discount to the current market price, effective with its next dividend payment in November 2026.

Next milestone

Peapack’s investor conference call to review the results is scheduled for October 28, 2026, at 11 a.m. Eastern time.

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