Peapack-Gladstone Financial (US:PGC)2026-01-29 21:44Financial Performance - Net income for Q4 2025 was $12.2 million, a 26% increase from $9.6 million in Q3 2025, with diluted EPS rising to $0.69 from $0.54[3] - Total revenue for the three months ended December 31, 2025, reached $78,201 thousand, up from $61,836 thousand in the prior year, representing a growth of 26.4%[44] - For the twelve months ended December 31, 2025, total revenue was $282,995 thousand, a 24% increase from $228,128 thousand in 2024[47] - Net income for the three months ended December 31, 2025, was $12,159 thousand, compared to $9,240 thousand in the same quarter of 2024, indicating a year-over-year increase of 31.3%[44] - The Company reported a 35% increase in net interest income for the year ended December 31, 2025, totaling $200.9 million compared to $149.0 million in 2024[12] Asset and Deposit Growth - Total deposits grew by $460 million, or 8%, to $6.6 billion at December 31, 2025, with noninterest-bearing deposits increasing by $316 million, or 28%[4] - Total assets increased to $7,526,409 thousand as of December 31, 2025, up from $7,439,642 thousand in the previous quarter, representing a growth of 1.17%[51] - The total assets of the company increased to $7,207,533 thousand as of December 31, 2025, compared to $6,556,386 thousand a year earlier, reflecting a growth of 9.9%[74] - Assets under management (AUM) in the Wealth Management Division grew by $1.2 billion to $13.1 billion at December 31, 2025, with new business inflows totaling $291 million in Q4 2025[9] Loan Performance - Total loans increased by $738 million, or 13%, to $6.3 billion, with commercial and industrial lending accounting for 55% of new business originations[7] - Total loans reached $6,258,623 thousand, an increase of 3.84% from $6,027,265 thousand in the prior quarter[51] - The total commercial loans for the twelve months ended December 31, 2025, were $1,821,138,000, significantly higher than $1,041,172,000 in 2024[62] - Nonperforming assets decreased to $68.2 million, or 0.91% of total assets, at December 31, 2025, down from $84.1 million, or 1.13% of total assets, at September 30, 2025[30] Interest Income and Margin - Net interest income rose by $6.0 million, or 12%, to $56.5 million for Q4 2025, driven by improved cost on average interest-bearing liabilities and a net interest margin (NIM) increase to 3.08%[5] - Net interest income for the three months ended December 31, 2025, was $56,771 thousand, up from $50,809 thousand in the prior quarter, representing an increase of 11.5%[70] - The net interest margin improved to 3.08% for the three months ended December 31, 2025, compared to 2.81% in the previous quarter, indicating enhanced profitability[70] - The net interest margin (tax-equivalent basis) improved to 3.08% for the three months ended December 31, 2025, compared to 2.46% in the same quarter of 2024, reflecting a 25.4% increase[44] Credit Loss Provisions - Provision for credit losses increased to $23.5 million for the year ended December 31, 2025, a 214% increase from $7.5 million in 2024[12] - The provision for credit losses increased to $7.7 million in Q4 2025, compared to $4.8 million in Q3 2025 and $1.7 million in Q4 2024, primarily due to specific reserves related to two multifamily loans and one C&I loan[31] - The allowance for credit losses was $71.0 million, or 1.14% of total loans, as of December 31, 2025, compared to $68.6 million at September 30, 2025[32] Efficiency and Cost Management - Total operating expenses for Q4 2025 were $53.5 million, up from $52.3 million in Q3 2025 and $47.9 million in Q4 2024, driven by expansion efforts in New York City and Long Island[27] - The efficiency ratio improved to 68.93%, down from 73.73% in the prior quarter, indicating better cost management[81] - The GAAP efficiency ratio improved to 68.46% for the three months ended December 31, 2025, down from 77.40% in the same quarter of 2024, showing a positive trend in operational efficiency[44] Shareholder Returns - The Company declared a cash dividend of $0.05 per share on December 18, 2025, payable on February 26, 2026[36] - Tangible book value per share increased by 10% to $34.99 at December 31, 2025, compared to $31.89 at the end of 2024[9] - Book value per share rose to $37.49, compared to $36.62 in the previous quarter, indicating an increase of 2.37%[57]