Peapack-Gladstone Financial (PGC) - 2025 Q2 - Quarterly Report

PART I FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Presents unaudited consolidated financial statements, including condition, income, comprehensive income, equity, cash flows, and detailed notes Consolidated Statements of Condition Total assets increased to $7.20 billion from $7.01 billion, driven by growth in net loans and noninterest-bearing demand deposits Consolidated Statements of Condition (Dollars in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--------------------------------- | :-------------- | :---------------- | :----- | | Total Assets | $7,200,673 | $7,011,238 | +$189,435 | | Net Loans | $5,737,267 | $5,439,334 | +$297,933 | | Total Deposits | $6,363,123 | $6,129,022 | +$234,101 | | Noninterest-bearing demand deposits | $1,237,864 | $1,112,734 | +$125,130 | | Total Liabilities | $6,570,896 | $6,405,389 | +$165,507 | | Total Shareholders' Equity | $629,777 | $605,849 | +$23,928 | Consolidated Statements of Income Net interest income significantly increased, while net income saw a slight increase for the three-month period and a decrease for the six-month period, impacted by higher operating expenses and provision for credit losses Consolidated Statements of Income (Dollars in thousands, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :--------------------------------- | :--------------------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | :----------- | | Total Interest Income | $89,651 | $79,238 | +$10,413 | $175,996 | $158,432 | +$17,564 | | Total Interest Expense | $41,361 | $44,196 | -$2,835 | $82,201 | $89,015 | -$6,814 | | Net Interest Income | $48,290 | $35,042 | +$13,248 | $93,795 | $69,417 | +$24,378 | | Provision for Credit Losses | $6,586 | $3,911 | +$2,675 | $11,057 | $4,538 | +$6,519 | | Total Other Income | $21,451 | $21,555 | -$104 | $40,305 | $40,256 | +$49 | | Total Operating Expenses | $51,893 | $43,126 | +$8,767 | $101,333 | $83,167 | +$18,166 | | Net Income | $7,941 | $7,530 | +$411 | $15,536 | $16,161 | -$625 | | Diluted EPS | $0.45 | $0.42 | +$0.03 | $0.87 | $0.91 | -$0.04 | Consolidated Statements of Comprehensive Income Total comprehensive income increased significantly for both the three and six months ended June 30, 2025, primarily due to unrealized gains on available-for-sale securities, net of tax, which offset net income Consolidated Statements of Comprehensive Income (Dollars in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :----------------------------------------- | :--------------------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | :----------- | | Net Income | $7,941 | $7,530 | +$411 | $15,536 | $16,161 | -$625 | | Unrealized gains/(losses) on AFS securities, net of tax | $3,318 | -$419 | +$3,737 | $13,941 | -$5,379 | +$19,320 | | Unrealized gains/(losses) on cash flow hedges, net of tax | -$1,182 | -$163 | -$1,019 | -$3,111 | +$1,915 | -$5,026 | | Total Other Comprehensive Income/(Loss) | $2,136 | -$582 | +$2,718 | $10,830 | -$3,464 | +$14,294 | | Total Comprehensive Income | $10,077 | $6,948 | +$3,129 | $26,366 | $12,697 | +$13,669 | Consolidated Statements of Changes in Shareholders' Equity Shareholders' equity increased for both the three and six months ended June 30, 2025, primarily driven by net income and other comprehensive income, partially offset by share repurchases and cash dividends Consolidated Statements of Changes in Shareholders' Equity (Dollars in thousands) | Metric | Balance at April 1, 2025 | Balance at June 30, 2025 | Change | Balance at January 1, 2025 | Balance at June 30, 2025 | Change | | :--------------------------------- | :----------------------- | :----------------------- | :----- | :----------------------- | :----------------------- | :----- | | Total Shareholders' Equity (3M) | $621,873 | $629,777 | +$7,904 | N/A | N/A | N/A | | Total Shareholders' Equity (6M) | N/A | N/A | N/A | $605,849 | $629,777 | +$23,928 | | Net Income (3M) | N/A | $7,941 | N/A | N/A | N/A | N/A | | Net Income (6M) | N/A | N/A | N/A | N/A | $15,536 | N/A | | Other Comprehensive Income (3M) | N/A | $2,136 | N/A | N/A | N/A | N/A | | Other Comprehensive Income (6M) | N/A | N/A | N/A | N/A | $10,830 | N/A | | Share Repurchase (3M) | N/A | -$2,778 | N/A | N/A | N/A | N/A | | Share Repurchase (6M) | N/A | N/A | N/A | N/A | -$2,778 | N/A | | Cash Dividends Declared (3M) | N/A | -$887 | N/A | N/A | N/A | N/A | | Cash Dividends Declared (6M) | N/A | N/A | N/A | N/A | -$1,767 | N/A | Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash provided by operating activities decreased, while investing activities shifted from providing to using cash, and financing activities significantly increased cash provided, primarily due to a net increase in deposits and repayment of subordinated debt Consolidated Statements of Cash Flows (Dollars in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :----------------------------------------- | :--------------------------- | :--------------------------- | :----------- | | Net Cash Provided by Operating Activities | $8,070 | $19,961 | -$11,891 | | Net Cash (Used in)/Provided by Investing Activities | -$277,652 | $141,013 | -$418,665 | | Net Cash Provided by/(Used in) Financing Activities | $193,817 | -$32,916 | +$226,733 | | Net (Decrease)/Increase in Cash and Cash Equivalents | -$75,765 | $128,058 | -$203,823 | | Cash and Cash Equivalents at End of Period | $315,602 | $315,729 | -$127 | Notes to Consolidated Financial Statements This section provides detailed disclosures and explanations for the consolidated financial statements, covering significant accounting policies, specific financial instrument details, segment reporting, fair value measurements, revenue recognition, operating expenses, and recent accounting pronouncements 1. Summary of Significant Accounting Policies This section outlines the key accounting principles and policies used in preparing the unaudited consolidated financial statements, including principles of consolidation, basis of presentation, segment information, and specific accounting treatments for various