[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the unaudited financial statements and management's discussion of the company's financial condition and market risks [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2024 financial statements show decreased assets, net income, and compressed net interest income due to higher interest expense [Consolidated Statements of Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Condition) Total assets decreased to $6.41 billion, driven by lower net loans, while deposits increased and borrowings decreased Consolidated Balance Sheet Highlights (unaudited) | Account | March 31, 2024 ($ thousands) | December 31, 2023 ($ thousands) | | :--- | :--- | :--- | | **Total Assets** | **$6,408,553** | **$6,476,857** | | Net Loans | $5,290,134 | $5,363,437 | | Total Deposits | $5,476,712 | $5,274,114 | | Short-term borrowings | $119,490 | $403,814 | | **Total Liabilities** | **$5,826,174** | **$5,893,176** | | **Total Shareholders' Equity** | **$582,379** | **$583,681** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q1 2024 significantly decreased to $8.6 million due to a sharp rise in interest expense Consolidated Income Statement Summary (unaudited) | Metric | Three Months Ended March 31, 2024 ($ thousands) | Three Months Ended March 31, 2023 ($ thousands) | | :--- | :--- | :--- | | Total Interest Income | $79,194 | $70,491 | | Total Interest Expense | $44,819 | $26,513 | | **Net Interest Income** | **$34,375** | **$43,978** | | Provision for credit losses | $627 | $1,513 | | Total Other Income | $18,701 | $18,059 | | Total Operating Expenses | $40,041 | $35,574 | | **Net Income** | **$8,631** | **$18,355** | Earnings Per Share (unaudited) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Basic EPS | $0.49 | $1.03 | | Diluted EPS | $0.48 | $1.01 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q1 2024 significantly decreased to $5.7 million due to lower net income and an other comprehensive loss Comprehensive Income Summary (unaudited) | Metric | Three Months Ended March 31, 2024 ($ thousands) | Three Months Ended March 31, 2023 ($ thousands) | | :--- | :--- | :--- | | Net Income | $8,631 | $18,355 | | Total Other Comprehensive Income/(Loss) | $(2,882) | $6,766 | | **Total Comprehensive Income** | **$5,749** | **$25,121** | [Consolidated Statement of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity slightly decreased in Q1 2024 due to comprehensive loss, dividends, and share repurchases, partially offset by net income - Key activities impacting shareholders' equity in Q1 2024 included net income of **$8.6 million**, a comprehensive loss of **$2.9 million**, cash dividends of **$0.05 per share** totaling **$887,000**, and the repurchase of **100,000 shares** for **$2.4 million**[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by $7.2 million in Q1 2024, driven by operating and investing activities, offset by financing outflows Cash Flow Summary (unaudited) | Activity | Three Months Ended March 31, 2024 ($ thousands) | Three Months Ended March 31, 2023 ($ thousands) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $19,109 | $38,997 | | Net Cash Provided by/(Used in) Investing Activities | $78,684 | $(74,918) | | Net Cash (Used in)/Provided by Financing Activities | $(90,626) | $97,139 | | **Net Increase in Cash and Cash Equivalents** | **$7,167** | **$61,218** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies, loan portfolio, investment securities, credit quality, and fair value measurements [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2024 net income decline to net interest margin compression and increased operating expenses from strategic expansion Q1 2024 vs Q1 2023 Performance Summary | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income | $8.6M | $18.4M | ($9.7M) | | Diluted EPS | $0.48 | $1.01 | ($0.53) | | ROAA (annualized) | 0.54% | 1.16% | (0.62)% | | ROAE (annualized) | 5.94% | 13.50% | (7.56)% | - The decrease in net income was principally driven by decreased net interest income due to margin contraction from higher deposit and borrowing rates[220](index=220&type=chunk) - Operating expenses increased by **$4.5 million**, primarily due to the company's strategic expansion into New York City, along with increased health insurance costs and normal merit increases[220](index=220&type=chunk) [Net Interest Income and Margin](index=46&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income and margin compressed significantly in Q1 2024 due to higher interest-bearing liability costs outpacing asset yield growth Net Interest Margin Analysis | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net Interest Income (tax-equivalent) | $34,644 thousand | $44,379 thousand | | Net Interest Spread | 1.29% | 2.18% | | Net Interest Margin | 2.20% | 2.88% | - The cost of interest-bearing liabilities increased by **137 basis points** to **3.73%** in Q1 2024, while the yield on interest-earning assets increased by only **48 basis points** to **5.02%**, leading to margin compression[225](index=225&type=chunk)[231](index=231&type=chunk)[239](index=239&type=chunk) - As of March 31, 2024, **35%** of the company's loans are scheduled to reprice within three months, and **48%** within one year, indicating interest rate sensitivity[233](index=233&type=chunk) [Other Income](index=50&type=section&id=Other%20Income) Total other income remained flat in Q1 2024, with increased corporate advisory fees offset by lower SBA loan sale gains Other Income Components (excluding wealth management) | Component | Q1 2024 ($ thousands) | Q1 2023 ($ thousands) | | :--- | :--- | :--- | | Service charges and fees | $1,322 | $1,258 | | Gain on sale of SBA loans | $400 | $865 | | Corporate advisory fee income | $818 | $80 | | Fair value adjustment for CRA equity security | $(111) | $209 | | **Total Other Income** | **$4,294** | **$4,297** | [Operating Expenses](index=52&type=section&id=Operating%20Expenses) Operating expenses increased by 13% in Q1 2024, primarily due to higher compensation and premises costs from New York City expansion Operating Expense Components | Component | Q1 2024 ($ thousands) | Q1 2023 ($ thousands) | | :--- | :--- | :--- | | Compensation and employee benefits | $28,476 | $24,586 | | Premises and equipment | $5,081 | $4,374 | | FDIC assessment | $945 | $711 | | **Total operating expenses** | **$40,041** | **$35,574** | [Peapack Private](index=52&type=section&id=Peapack%20Private) The Peapack Private wealth management division saw AUM/AUA grow 11% to $11.5 billion, with a 5% increase in fee income - Assets under management and/or administration (AUM/AUA) increased to **$11.5 billion** at March 31, 2024, up **11%** from **$10.4 billion** a year prior, driven by market appreciation and gross business inflows of **$236 million**[256](index=256&type=chunk) - The division generated **$14.4 million** in fee income in Q1 2024, a **5%** increase from **$13.8 million** in Q1 2023[257](index=257&type=chunk) [Nonperforming Assets](index=52&type=section&id=Nonperforming%20Assets) Nonperforming assets increased to $69.8 million, or 1.09% of total assets, driven by higher nonaccrual loans in multifamily and C&I portfolios Nonperforming Assets Trend | Metric | March 31, 2024 ($ thousands) | March 31, 2023 ($ thousands) | | :--- | :--- | :--- | | Nonaccrual loans | $69,811 | $28,659 | | **Total nonperforming assets** | **$69,846** | **$28,775** | | Nonperforming assets as a % of total assets | 1.09% | 0.44% | - The increase in nonperforming assets compared to Q1 2023 was primarily driven by a **$15.6 million** increase in multifamily nonperforming loans and a **$26.3 million** increase in C&I nonperforming loans[261](index=261&type=chunk) [Provision for Credit Losses](index=53&type=section&id=Provision%20for%20Credit%20Losses) Provision for credit losses decreased in Q1 2024 due to lower total loans, while ACL as a percentage of total loans slightly increased Allowance for Credit Losses (ACL) Summary | Metric | March 31, 2024 | Dec 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | Provision for Credit Losses | $627 thousand | $5.1 million | $1.5 million | | ACL as a % of total loans | 1.24% | 1.21% | 1.16% | [Capital Resources](index=54&type=section&id=Capital%20Resources) The company maintains strong capital ratios exceeding regulatory requirements, despite share repurchases and comprehensive loss in Q1 2024 - The company repurchased **100,000 shares** at an average price of **$24.23** for a total cost of **$2.4 million** during Q1 2024[273](index=273&type=chunk) Bank Regulatory Capital Ratios | Ratio | March 31, 2024 | Well Capitalized Minimum | | :--- | :--- | :--- | | Total capital (to risk-weighted assets) | 15.11% | 10.00% | | Tier I capital (to risk-weighted assets) | 13.86% | 8.00% | | Common equity tier I (to risk-weighted assets) | 13.86% | 6.50% | | Tier I capital (to average assets) | 11.02% | 5.00% | [Liquidity](index=57&type=section&id=Liquidity) The company maintains sufficient liquidity with substantial cash, available-for-sale securities, and external borrowing capacity - As of March 31, 2024, the company had approximately **$2.9 billion** of external borrowing capacity, providing **303%** coverage of its uninsured/unprotected deposits[288](index=288&type=chunk) - The company increased its total brokered certificates of deposits by **$25.0 million** to **$145.5 million** during Q1 2024 to enhance short-term liquidity[290](index=290&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk through ALCO, using strategies like swaps, and is projected to be liability-sensitive in rate changes - The company's interest rate sensitivity models indicate it is liability sensitive, with a **100 basis point increase** in rates projected to decrease net interest income by approximately **1.8%** in year one[298](index=298&type=chunk) - The company utilizes interest rate swaps to manage risk, with **$310.0 million** in notional value of cash flow hedges and **$520.2 million** in notional value of loan level/back-to-back swaps as of March 31, 2024[295](index=295&type=chunk)[296](index=296&type=chunk) [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the Corporation's disclosure controls and procedures are effective as of the end of the period covered by this report[307](index=307&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, these controls[309](index=309&type=chunk) [PART II OTHER INFORMATION](index=61&type=section&id=PART%20II%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, other information, and exhibits [Item 1. Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no pending or threatened legal proceedings that would have a material adverse effect on its operations - There are no currently pending or threatened litigation or proceedings against the Company or its subsidiaries which would have a material adverse effect on the Company[310](index=310&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for 2023 have occurred - No material changes in risk factors have occurred since those disclosed in the Form 10-K for the year ended December 31, 2023[311](index=311&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 100,000 shares in Q1 2024 under its program, with 377,673 shares remaining available for repurchase Share Repurchase Activity (Q1 2024) | Month | Shares Purchased (Program) | Average Price Paid | | :--- | :--- | :--- | | January 2024 | 0 | N/A | | February 2024 | 100,000 | $23.99 | | March 2024 | 0 | N/A | | **Total** | **100,000** | **$23.99** | - The share repurchase plan, approved in January 2023, authorizes the repurchase of up to **890,000 shares** through December 31, 2024, with **377,673 shares** remaining available[313](index=313&type=chunk)[314](index=314&type=chunk) [Item 5. Other Information](index=62&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during Q1 2024 - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the three months ended March 31, 2024[317](index=317&type=chunk) [Item 6. Exhibits](index=63&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and Inline XBRL documents

[Q1 2024 Financial Performance Summary](index=1&type=section&id=PEAPACK-GLADSTONE%20FINANCIAL%20CORPORATION%20REPORTS%20FIRST%20QUARTER%20RESULTS) Peapack-Gladstone Financial Corporation reported a significant year-over-year decline in profitability for the first quarter of 2024 [Q1 2024 Key Highlights](index=1&type=section&id=Q1%202024%20Key%20Highlights) Q1 2024 saw significant profit decline due to lower revenue and compressed net interest margin, despite deposit growth Q1 2024 Financial Performance vs. Q1 2023 | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $53.1 million | $62.0 million | -14.4% | | Net Income | $8.6 million | $18.4 million | -53.3% | | Diluted EPS | $0.48 | $1.01 | -52.5% | | Return on Average Assets | 0.54% | 1.16% | -0.62 p.p. | | Return on Average Equity | 5.94% | 13.50% | -7.56 p.p. | - The Net Interest Margin (NIM) declined to **2.20%** in Q1 2024, down from 2.29% in Q4 2023 and 2.88% in Q1 2023[4](index=4&type=chunk) - In Q1 2024, deposits grew by **$202.6 million** to **$5.48 billion**, while loans decreased by **$73.7 million**, allowing for a **$284.3 million** reduction in overnight borrowings[5](index=5&type=chunk) - The company's liquidity position remains stable, with on-balance sheet liquidity increasing to **12.1%** of total assets, and total liquidity providing **303%** coverage of uninsured deposits[5](index=5&type=chunk) [CEO's Remarks and Strategic Outlook](index=1&type=section&id=CEO%27s%20Remarks%20and%20Strategic%20Outlook) CEO noted margin and credit concerns, while advancing New York City expansion for long-term profitability - The CEO identified margin compression and credit quality as the primary areas of concern for the organization[6](index=6&type=chunk) - Fee revenue from Wealth Management and other noninterest income constituted a significant **35%** of total revenue in Q1 2024, providing a consistent income stream in a difficult rate environment[6](index=6&type=chunk) - The company is advancing its strategic expansion into New York City, recently hiring over 10 new commercial private banking teams to be led by Andrew Corrado[6](index=6&type=chunk) [Segment and Balance Sheet Performance](index=1&type=section&id=Segment%20and%20Balance%20Sheet%20Performance) This section details the performance of key business segments and the company's balance sheet management strategies [Wealth Management](index=1&type=section&id=Wealth%20Management) Wealth Management grew AUM/AUA by 6% to $11.5 billion, contributing $14.4 million in fee income and new business Wealth Management Performance | Metric | Q1 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | AUM/AUA | $11.5 billion | $10.9 billion | +6% | | Fee Income | $14.4 million | $13.8 million | +4.3% | - Gross new business inflows for Q1 2024 totaled **$236 million**, of which **$138 million** was managed[8](index=8&type=chunk) - Wealth Management fee income represented **27%** of the company's total revenue for Q1 2024[8](index=8&type=chunk) [Commercial Banking and Balance Sheet Management](index=2&type=section&id=Commercial%20Banking%20and%20Balance%20Sheet%20Management) Q1 2024 balance sheet management increased deposits, reduced borrowings, and compressed net interest margin Balance Sheet Changes (Q1 2024 vs Q4 2023) | Item | Q1 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | Total Deposits | $5.48 billion | $5.27 billion | +$202.6 million | | Total Loans | $5.36 billion | $5.44 billion | -$73.7 million | | Borrowings | $119.5 million | $403.8 million | -$284.3 million | - Commercial and industrial (C&I) loans and leases constituted **42%** of the total loan portfolio at March 31, 2024[11](index=11&type=chunk)[19](index=19&type=chunk) - Core deposits, including demand, savings, and money market accounts, represented **88%** of total deposits[11](index=11&type=chunk) - The company has tightened underwriting guidelines and experienced slower loan originations due to economic uncertainty and the interest rate environment[20](index=20&type=chunk) [Capital Management](index=2&type=section&id=Capital%20Management) The company maintains strong capital, exceeding regulatory standards, with stable tangible book value and share repurchases - Tangible book value per share was **$30.21** at March 31, 2024, a slight decrease from **$30.31** at December 31, 2023[11](index=11&type=chunk)[34](index=34&type=chunk) - The company repurchased **100,000 shares** of its stock at a cost of **$2.4 million** during the first quarter of 2024[11](index=11&type=chunk)[33](index=33&type=chunk) Regulatory Capital Ratios (Company) - March 31, 2024 | Ratio | Value | | :--- | :--- | | Tier 1 Leverage Ratio | 9.36% | | Common Equity Tier 1 Ratio | 11.76% | - A cash dividend of **$0.05 per share** was declared on March 28, 2024[35](index=35&type=chunk) [Detailed Financial Analysis](index=3&type=section&id=SUMMARY%20INCOME%20STATEMENT%20DETAILS%3A) This section provides an in-depth analysis of the company's income statement, net interest income, noninterest income, operating expenses, and asset quality [Income Statement Analysis](index=3&type=section&id=Income%20Statement%20Analysis) Income statement shows significant year-over-year pressure with net income down 53%, while sequential results remained flat [Comparison vs. Prior Year Quarter (Q1 2023)](index=3&type=section&id=March%202024%20Quarter%20Compared%20to%20Prior%20Year%20Quarter) Q1 2023 comparison: total revenue down 14%, net interest income down 22%, leading to a 53% net income drop Income Statement YoY Comparison (Q1 2024 vs. Q1 2023) | (in millions) | Q1 2024 | Q1 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $34.38 | $43.98 | (22)% | | Total Other Income | $18.70 | $18.06 | 4% | | Total Revenue | $53.08 | $62.04 | (14)% | | Operating Expenses | $40.04 | $35.57 | 13% | | Provision for Credit Losses | $0.63 | $1.51 | (58)% | | Net Income | $8.63 | $18.36 | (53)% | | Diluted EPS | $0.48 | $1.01 | (52)% | [Comparison vs. Linked Quarter (Q4 2023)](index=4&type=section&id=March%202024%20Quarter%20Compared%20to%20Linked%20Quarter) Sequentially, net income and diluted EPS remained flat, as reduced credit loss provision offset lower net interest income Income Statement QoQ Comparison (Q1 2024 vs. Q4 2023) | (in millions) | Q1 2024 | Q4 2023 | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | $34.38 | $36.68 | (6)% | | Total Other Income | $18.70 | $17.59 | 6% | | Total Revenue | $53.08 | $54.27 | (2)% | | Operating Expenses | $40.04 | $37.62 | 6% | | Provision for Credit Losses | $0.63 | $5.03 | (87)% | | Net Income | $8.63 | $8.60 | 0% | | Diluted EPS | $0.48 | $0.48 | 0% | [Net Interest Income (NII) and Net Interest Margin (NIM)](index=5&type=section&id=Net%20Interest%20Income%20%28NII%29%2FNet%20Interest%20Margin%20%28NIM%29) Q1 2024 NII and NIM declined due to increased interest expense from higher deposit rates and customer migration - NII decreased by **$2.3 million** and NIM by **9 basis points** compared to Q4 2023[21](index=21&type=chunk) - NII decreased by **$9.6 million** and NIM by **68 basis points** compared to Q1 2023[21](index=21&type=chunk) - The primary drivers for the NII/NIM decline were higher deposit rates, intense competition for deposits, and customer migration out of noninterest-bearing products, with a cycle-to-date deposit beta of approximately **52%**[21](index=21&type=chunk) [Noninterest Income Analysis](index=5&type=section&id=Noninterest%20Income%20Analysis) Total noninterest income reached $18.7 million in Q1 2024, driven by Wealth Management fees and Capital Markets activities Capital Markets Activities (in thousands) | Activity | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Gain on sale of SBA loans | $400 | $239 | $865 | | Corporate advisory fee income | $818 | $39 | $80 | | **Total Capital Markets Activity** | **$1,274** | **$296** | **$966** | - Other noninterest income was **$3.0 million** in Q1 2024, which included **$827,000** of unused line fees[26](index=26&type=chunk) [Operating Expenses](index=5&type=section&id=Operating%20Expenses) Operating expenses rose to $40.0 million in Q1 2024, reflecting strategic investments for New York City expansion and new hires - Total operating expenses increased to **$40.0 million** in Q1 2024, up from **$37.6 million** in Q4 2023 and **$35.6 million** in Q1 2023[27](index=27&type=chunk) - The increase in expenses is linked to investments for the New York City expansion, including significant hiring in Q1 2024[27](index=27&type=chunk)[28](index=28&type=chunk) [Asset Quality and Provision for Credit Losses](index=6&type=section&id=Asset%20Quality%20%2F%20Provision%20for%20Credit%20Losses) Asset quality deteriorated in Q1 2024, with nonperforming assets and past due loans increasing, leading to a $615,000 provision Asset Quality Metrics | Metric | Q1 2024 | Q4 2023 | | :--- | :--- | :--- | | Nonperforming Assets | $69.8M (1.09% of assets) | $61.3M (0.95% of assets) | | Loans Past Due 30-89 Days | $73.7M (1.37% of loans) | $34.6M (0.64% of loans) | | Criticized & Classified Loans | $177.3M | Increased from Q4 2023 | | Allowance for Credit Losses (ACL) | $66.3M (1.24% of loans) | $65.9M (1.21% of loans) | - The provision for credit losses was **$615,000** for Q1 2024, a sharp decrease from **$5.0 million** in Q4 2023 and **$1.5 million** in Q1 2023[31](index=31&type=chunk) - The increase in loans past due 30-89 days included significant balances related to governmental entities (**$25.2 million**), a single equipment finance customer (**$15.0 million**), and two multifamily sponsors (**$28.9 million**)[29](index=29&type=chunk) [Consolidated Financial Statements and Other Data](index=9&type=section&id=Consolidated%20Financial%20Statements) This section provides comprehensive consolidated financial statements and supplementary data for detailed analysis [Selected Consolidated Financial Data](index=9&type=section&id=PEAPACK-GLADSTONE%20FINANCIAL%20CORPORATION%20SELECTED%20CONSOLIDATED%20FINANCIAL%20DATA) This section provides detailed five-quarter consolidated financial data, including income statements and balance sheets - Detailed five-quarter income statement data is available, showing trends in interest income/expense, noninterest income/expense, and profitability ratios[43](index=43&type=chunk) - Consolidated balance sheets for the last five quarters are provided, detailing assets, liabilities, and shareholders' equity[46](index=46&type=chunk)[48](index=48&type=chunk) [Selected Balance Sheet Data (Asset Quality & Capital)](index=13&type=section&id=PEAPACK-GLADSTONE%20FINANCIAL%20CORPORATION%20SELECTED%20BALANCE%20SHEET%20DATA) This section details asset quality and capital adequacy, presenting five-quarter trends and regulatory capital ratios - Provides a five-quarter breakdown of asset quality metrics, including nonperforming loans, classified loans, and the allowance for credit losses (ACL) roll-forward[50](index=50&type=chunk) - Detailed regulatory capital ratios for the Holding Company and the Bank are presented, showing levels well above the 'well capitalized' standards[59](index=59&type=chunk) [Loans Closed](index=15&type=section&id=PEAPACK-GLADSTONE%20FINANCIAL%20CORPORATION%20LOANS%20CLOSED) This section provides a five-quarter breakdown of loan originations, with Q1 2024 total loans closed at $190.5 million Total Loans Closed (in millions) | Period | Total Loans Closed | | :--- | :--- | | Q1 2024 | $190.5 | | Q4 2023 | $194.6 | | Q1 2023 | $336.9 | [Average Balance Sheet and Net Interest Margin Analysis](index=16&type=section&id=PEAPACK-GLADSTONE%20FINANCIAL%20CORPORATION%20AVERAGE%20BALANCE%20SHEET) This section presents detailed average balance sheets and net interest margin analysis, breaking down net interest income components - Provides a detailed analysis of the average balances, yields, and costs for assets and liabilities, which are used to calculate the net interest spread and net interest margin[65](index=65&type=chunk)[68](index=68&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=18&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section provides reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures [Non-GAAP Reconciliations](index=18&type=section&id=Non-GAAP%20Reconciliations) This section reconciles non-GAAP financial measures to GAAP, offering management's view on core performance - The company provides reconciliations for key non-GAAP measures including tangible book value per share, tangible equity to tangible assets, return on average tangible equity, and the efficiency ratio[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - Management uses these non-GAAP measures to internally assess performance, believing they offer a clearer view of core operations by excluding items like intangible assets or certain non-recurring revenues and expenses[73](index=73&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-16197 PEAPACK-GLADSTONE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) New Jersey 22-3537895 (State or ot ...

Financial Performance - Net income for the three months ended September 30, 2023, was $8,755 thousand, down 56.5% from $20,126 thousand in the prior year[13]. - Net income for the nine months ended September 30, 2023, was $40,255,000, a decrease of 25% compared to $53,667,000 for the same period in 2022[24]. - The company reported a comprehensive loss of $4,901 thousand for the three months ended September 30, 2023, compared to a comprehensive income of $3,870 thousand in the same period of 2022[16]. - The company reported a comprehensive loss of $13,656,000 for the quarter, which is a significant improvement from the previous year's comprehensive loss of $16,256,000, indicating a positive trend in financial performance[19]. - Net income for the three months ended September 30, 2023, was $8,755,000, down from $20,126,000 in the same period of 2022, a decrease of 56.5%[147]. - Total income was $55,869,000, a decrease of 9.8% from $61,908,000 in the same period of 2022[147]. - Total operating expenses for the nine months ended September 30, 2023, were $119,744,000, compared to $104,811,000 in the same period of 2022, an increase of 14.2%[148]. - Operating expenses for Q3 2023 were $37.413 million, an increase of $3.853 million compared to $33.560 million in Q3 2022[207]. Asset and Loan Growth - Total assets increased to $6,521,581 thousand as of September 30, 2023, up from $6,353,593 thousand at December 31, 2022, representing a growth of 2.65%[11]. - Net loans rose to $5,418,129 thousand, an increase of 3.73% from $5,224,417 thousand at the end of 2022[11]. - Total loans outstanding as of September 30, 2023, amounted to $5,486,721 thousand, an increase from $5,285,246 thousand as of December 31, 2022, representing a growth of approximately 3.8%[107]. - The total recorded investment in nonaccrual loans as of September 30, 2023, was $70,809 thousand, with no loans past due 90 days or over still accruing interest[107]. - The company reported a total of $5.129 billion in subtotal deposits as of September 30, 2023, which is 97.54% of total deposits[140]. Credit Losses and Provisions - The provision for credit losses increased to $5,856 thousand for the three months ended September 30, 2023, compared to $599 thousand for the same period in 2022[13]. - The company reported a provision for credit losses of $9,065,000, significantly higher than the $4,423,000 recorded in the same period last year[24]. - The allowance for credit losses (ACL) increased to $68.6 million as of September 30, 2023, up from $60.8 million at December 31, 2022, representing a growth of approximately 12.9%[130]. - The ACL as a percentage of loans was 1.25% at September 30, 2023, compared to 1.15% at December 31, 2022[130]. - The company reported no allowance for credit losses as of September 30, 2023, due to the belief that unrealized losses were primarily a result of market interest rate changes rather than credit quality deterioration[105]. Deposits and Borrowings - Total deposits increased to $5,259,359 thousand, up from $5,205,164 thousand at the end of 2022, reflecting a growth of 1.04%[11]. - Noninterest-bearing demand deposits decreased to $947.405 million (18.01%) as of September 30, 2023, from $1,246.066 million (23.94%) at December 31, 2022[140]. - The company had overnight borrowings with the Federal Home Loan Bank (FHLB) of $470.6 million at a rate of 5.58% as of September 30, 2023, up from $379.5 million at a rate of 4.61% at December 31, 2022[142]. - The company’s unused short-term overnight borrowing capacity available through the FHLB, correspondent banks, and the Federal Reserve Bank of New York totaled $3.3 billion as of September 30, 2023[142]. Earnings Per Share - Earnings per share (EPS) for the three months ended September 30, 2023, was $0.49, a decrease of 56.0% from $1.11 in the same period last year[13]. - The weighted average number of shares outstanding for diluted EPS was 18,010,127 for the three months ended September 30, 2023, compared to 18,420,661 for the same period in 2022[13]. Noninterest Income - Noninterest income for the three months ended September 30, 2023, was $19,354,000, compared to $16,383,000 in the same period of 2022, reflecting an increase of 18.0%[147]. - Total noninterest income for the nine months ended September 30, 2023, was $55,988, up from $49,605 in the same period of 2022, reflecting an increase of 12.4%[165]. Stock and Shareholder Information - The company declared cash dividends of $0.05 per share, totaling $893,000 for the quarter ended September 30, 2023, consistent with the previous year's dividend declaration[19]. - The number of common shares outstanding decreased from 17,920,571 as of September 30, 2022, to 17,816,922 as of September 30, 2023, representing a reduction of approximately 0.6%[19]. - The company repurchased 100,000 shares during the quarter, resulting in a total cost of $2,815,000[19]. Fair Value Measurements - The company’s fair value measurements as of September 30, 2023, included total assets of $588,416,000, with $575,835,000 classified as Level 2 inputs[157]. - The fair value of securities available for sale as of September 30, 2023, was $521,005 thousand, with no Level 1 inputs reported[161]. - The total liabilities related to derivatives as of September 30, 2023, were $38,265 thousand, all classified under Level 2 inputs[161]. Other Operating Expenses - Total other operating expenses for Q3 2023 were $6,194, compared to $5,860 in Q3 2022, marking an increase of 5.7%[173]. - Professional and legal fees rose to $1,619 in Q3 2023 from $1,180 in Q3 2022, a significant increase of 37%[173].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-16197 PEAPACK-GLADSTONE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FORM 10-Q (MARK ONE) For the Quarter Ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-16197 PEAPACK-GLADSTONE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-16197 PEAPACK-GLADSTONE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) New Jersey 22-3537895 (State or ot ...

Financial Performance - Net income for the second quarter of 2022 was $20,100 thousand, an increase of 39.0% from $14,418 thousand in the same quarter of 2021[14]. - Earnings per share (EPS) for the second quarter of 2022 was $1.10, compared to $0.76 in the same quarter of 2021, reflecting a growth of 44.7%[14]. - Net income for the three months ended June 30, 2022, was $20,100 thousand, compared to $14,418 thousand for the same period in 2021, representing a year-over-year increase of 39%[18]. - Net income for the six months ended June 30, 2022, was $33,541,000, an increase of 21.5% compared to $27,596,000 in 2021[23]. - Total comprehensive income for the second quarter of 2022 was $2,311 thousand, compared to $22,767 thousand in the same quarter of 2021, showing a significant decline[17]. Asset and Loan Growth - Total assets increased to $6,151,167 thousand as of June 30, 2022, compared to $6,077,993 thousand at December 31, 2021, reflecting a growth of 1.2%[11]. - Net loans rose to $5,094,851 thousand, up from $4,745,024 thousand, marking an increase of 7.4% year-over-year[11]. - Total loans outstanding as of June 30, 2022, reached $5,153.9 million, an increase from $4,806.7 million as of December 31, 2021, representing a growth of approximately 7.2%[115]. - The balance of retained earnings as of June 30, 2022, was $309,899 thousand, compared to $247,136 thousand as of June 30, 2021, reflecting an increase of approximately 25.4%[21]. Deposits and Funding - Total deposits increased to $5,403,868 thousand as of June 30, 2022, up from $5,266,149 thousand at December 31, 2021, indicating a growth of 2.6%[11]. - Net increase in deposits was $137,719,000, compared to $77,291,000 in the previous year, representing a growth of 78.2%[23]. - Noninterest-bearing demand deposits increased to $1.04 billion (19.30% of total deposits) from $956.5 million (18.16%) year-over-year[148]. Income and Expenses - Net interest income after provision for credit losses reached $41,444 thousand for the three months ended June 30, 2022, compared to $32,945 thousand for the same period in 2021, representing a growth of 25.5%[14]. - Operating expenses for the second quarter of 2022 totaled $32,659 thousand, up from $30,684 thousand in the same quarter of 2021, reflecting a rise of 6.4%[14]. - Total noninterest income for Q2 2022 was $18,508,000, an increase of 4.7% from $17,678,000 in Q2 2021[172]. - Wealth management fees for Q2 2022 reached $13,891,000, up 6.6% from $13,034,000 in Q2 2021[172]. Credit Losses and Allowances - The allowance for credit losses was $59,022 thousand as of June 30, 2022, down from $61,697 thousand at December 31, 2021, indicating a decrease of 4.4%[11]. - The provision for credit losses rose significantly to $3,824,000 from $1,125,000, indicating a substantial increase in expected credit losses[23]. - The Company reported a total allowance for credit losses (ACL) of $59.022 million as of June 30, 2022, based on the CECL methodology[138]. Securities and Investments - Total securities available for sale as of June 30, 2022, had a fair value of $556.8 million, with unrealized losses of $77.7 million[110]. - The total fair value of securities available for sale was $556,791,000 as of June 30, 2022, a decrease from $796,753,000 at December 31, 2021[170]. - The company reported unrealized losses on total securities of $87.1 million as of June 30, 2022, compared to $17.2 million as of December 31, 2021, reflecting a significant increase in market volatility[112]. Stock and Shareholder Activities - Cash dividends declared on common stock for the three months ended June 30, 2022, were $919 thousand, consistent with the previous year’s dividend of $952 thousand[18]. - The company repurchased 200,000 shares during the three months ended June 30, 2022, at a cost of $6,447 thousand, compared to 234,722 shares repurchased for $7,605 thousand in the same period of 2021[18]. - The Company issued 18,923 restricted stock units during the three months ended June 30, 2022, compared to 21,200 units issued in the same period of 2021[18]. Risk Management and Credit Quality - The Company segments its loan portfolio based on common characteristics, including primary residential mortgages, junior lien loans, multifamily properties, and commercial real estate loans[59][60][62][63][64]. - The Company has engaged an independent loan review firm to validate risk ratings and ensure compliance with policies[121]. - The credit risk profile indicates that $4,635.6 million of loans are classified as Pass, with $116.5 million as Special Mention and $50.7 million as Substandard[128]. Lease and Derivative Activities - The Company’s total present value of lease payments as of June 30, 2022, was $14.756 million[204]. - The total notional amount of standalone derivatives was $642.1 million as of June 30, 2022, down from $702.2 million as of December 31, 2021[196]. - The net interest expense recorded on swap transactions for the three months ended June 30, 2022, totaled $679,000, compared to $1.1 million for the same period in 2021[192].

Financial Performance - Net interest income after provision for credit losses was $37,247 thousand for the three months ended March 31, 2022, compared to $31,568 thousand for the same period in 2021, reflecting a year-over-year increase of 17.93%[15] - Wealth management fee income grew to $14,834 thousand, up 22.29% from $12,131 thousand in the prior year[15] - The company reported a net income of $13,441 thousand for Q1 2022, slightly up from $13,178 thousand in Q1 2021, reflecting a growth of 1.99%[15] - Total income for the three months ended March 31, 2022, was $54,336,000, up 9.3% from $49,613,000 in the prior year[148] - The company reported total operating expenses of $36,544,000 for the three months ended March 31, 2022, an increase from $31,819,000 in the same period of 2021, marking a rise of 14.8%[148] Asset and Loan Growth - Total assets increased to $6,255,664 thousand as of March 31, 2022, up from $6,077,993 thousand at December 31, 2021, representing a growth of 2.93%[12] - Net loans rose to $5,063,816 thousand, an increase of 6.71% from $4,745,024 thousand at the end of 2021[12] - Total deposits increased to $5,387,416 thousand, up 2.30% from $5,266,149 thousand at December 31, 2021[12] - As of March 31, 2022, total loans outstanding reached $5,122,202 thousand, an increase from $4,806,721 thousand as of December 31, 2021, representing a growth of approximately 6.56%[112] Credit Loss Provisions - The provision for credit losses increased to $2,375 thousand in Q1 2022, compared to $225 thousand in Q1 2021, indicating a significant rise in expected credit losses[15] - The allowance for credit losses (ACL) totaled $58.386 million as of March 31, 2022, based on the CECL methodology[133] - The provision for credit losses for the three months ended March 31, 2022, was $2,375,000, compared to $225,000 for the same period in 2021, indicating a significant increase in credit loss provisions[148] Shareholder Equity and Dividends - Total shareholders' equity decreased to $523,426,000 as of March 31, 2022, down from $546,388,000 at the end of Q1 2021, reflecting a decline of 4.17%[19] - Cash dividends declared on common stock were $920,000, consistent with the previous year's $949,000, indicating a stable dividend policy[21] Securities and Investments - The company reported a total of $654,287 thousand in securities available for sale as of March 31, 2022, with unrealized losses of $53,507 thousand[108] - The fair value of the company's investment in a CRA investment fund was $14,000 thousand as of March 31, 2022, with a loss of $682 thousand for the three months ended March 31, 2022[111] - The fair value of U.S. government-sponsored agencies as of March 31, 2022, was $218,263,000, while mortgage-backed securities-residential were valued at $340,513,000[157] Loan Modifications and TDRs - The company approved total loan modifications under the CARES Act amounting to $947.0 million, with $12.7 million remaining outstanding as of March 31, 2022[72] - The Company allocated $2.5 million of specific reserves on Troubled Debt Restructurings (TDRs) as of March 31, 2022[126] - The Bank modified 542 loans with a balance of $947.0 million, resulting in the deferral of principal and/or interest[125] Risk Management and Credit Quality - The company employs a credit risk rating system that categorizes commercial loans based on borrowers' ability to service their debt, with annual assessments conducted[116] - Loans classified as "Substandard" are characterized by a well-defined weakness that jeopardizes debt liquidation, indicating potential losses[119] - The adoption of CECL requires loans in foreclosure to be individually evaluated for potential loss and allowance adequacy, enhancing risk management practices[121] Economic and Market Conditions - The company faces risks related to the ongoing COVID-19 pandemic, which may adversely affect its business operations and financial condition[202] - The allowance for credit losses is subject to significant judgment and may require adjustments based on economic conditions, particularly in the New Jersey and New York markets[208] Changes in Accounting Standards - The Company adopted ASU 2016-13 on January 1, 2022, which replaced the incurred loss methodology with CECL for estimating expected credit losses[207] - The company expects that the amendments in ASU 2022-02 will not have a material effect on its consolidated financial statements[199]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021. or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-16197 PEAPACK-GLADSTONE FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) New Jersey 22-3537895 (State or ot ...