Peapack-Gladstone Secures $30M Preferred Stock Placement, Reports 16% Net Income Growth
Peapack-Gladstone Financial secured a $30 million private placement of preferred stock from Strategic Value Bank Partners, which can expand to $50 million through 2027. First-quarter net income climbed 16% sequentially to $14.2 million while loans rose 12% to $6.4 billion and deposits increased 9% to $6.8 billion.
1. Capital Raise and Strategic Partnership
Peapack-Gladstone closed an initial $30 million private placement of preferred stock with Strategic Value Bank Partners and retains the option to issue an additional $20 million through the end of 2027. This partnership aligns with the bank’s disciplined capital management approach and supports ongoing growth and expansion initiatives while maintaining target capital levels.
2. Balance Sheet Expansion
Over the last twelve months, total loans grew by 12% to $6.4 billion, driven by commercial mortgage and commercial and industrial originations, while deposits rose 9% to $6.8 billion. This momentum reflects the strength of the bank’s client-focused strategy and execution across its deposit franchise.
3. First Quarter Financial Results
Net income for Q1 reached $14.2 million, or $0.80 per diluted share, marking a 16% increase from the prior quarter and an 86% rise year-over-year. Net interest income expanded to $59.9 million and net interest margin improved 18 basis points to 3.26%, fueling strong revenue growth and positive operating leverage.