Peapack-Gladstone Financial Corporation Soars in Q2 2026 with Strong Earnings and Growth
Peapack-Gladstone Financial Corporation, a leading financial institution, has reported impressive earnings and growth for the second quarter of 2026. According to the company's recent conference call transcript, Peapack Private has achieved solid results, driven by its strategic investments in wealth management and product offerings.
The company's revenue and profitability have been positive for seven consecutive quarters, with net income reaching $15.8 million, an increase of 11% on a linked-quarter basis and 99% year-over-year. Its wealth management business grew 6% year-to-date and 13% year-over-year, with positive flows.
Peapack Private has also seen significant growth in its deposits, which increased by $231 million in the quarter, with 35% of that being non-interest bearing. Notably, 56% of the company's deposit growth over the last 12 months have been in the form of non-interest-bearing accounts.
The company's loans have also experienced strong growth, up $236 million, driven by increases in commercial and industrial (C&I), equipment finance, and commercial real estate (CRE) lending. However, multifamily lending was down an additional $21 million in the quarter and $58 million year-to-date.
Peapack Private's CEO, Doug Kennedy, highlighted the company's strategy, stating that it has built a durable and valuable franchise with significant barriers to entry. The company has invested heavily in building out its product offering, hiring nearly 200 professionals to cover the Metro New York market, including Westchester and Long Island.
According to Kennedy, the momentum built by Peapack Private continues to grow, with non-interest-bearing demand deposit accounts (DDAs) up over 20% year-over-year. The company's current pipeline remains strong, and its positive conversations in the market lead it to believe that the strength will continue.
While competition for deposits has increased markedly in the last quarter, resulting in some headwinds in terms of pricing, Peapack Private is reiterating its commitment to delivering a 1% return on assets (ROA) and 10% return on equity (ROE) by the end of the year. The company's net interest margin is expected to grow a total of six to nine basis points through the end of this year, despite some volatility.
