8-K: Peapack-Gladstone Financial Corporation Shareholders Approve 2025 Long-Term Incentive Plan and Elect Directors

Peapack-Gladstone Financial Corporation held its annual shareholder meeting on April 29, 2025, approving the 2025 Long-Term Incentive Plan and electing fourteen directors.

Summary

• Peapack-Gladstone Financial Corporation held its Annual Meeting of Shareholders on April 29, 2025.
• Shareholders approved the Peapack-Gladstone Financial Corporation 2025 Long-Term Incentive Plan.
• Fourteen directors were elected, each for a one-year term expiring in 2026.
• An advisory vote to approve the compensation of the Company's named executive officers was held.
• Crowe LLP was ratified as the Company's independent registered public accounting firm for the 2025 fiscal year.
• The company's presentation materials from the Annual Meeting are included as an exhibit.

Sentiment

Score: 7

Explanation: The document presents a generally positive outlook, highlighting strong growth in core deposits, successful expansion in the New York market, and a solid liquidity position. While there are some challenges noted, such as a decline in net income and asset quality headwinds, the overall tone is optimistic and suggests a company on a positive trajectory.

Positives

• Shareholders approved the 2025 Long-Term Incentive Plan.
• The company's balance sheet continues to transform.
• Metro NY expansion has performed significantly above plan.
• Core relationship deposits grew significantly.
• Noninterest-bearing deposits increased.
• The company has excellent liquidity.
• Net interest income is growing.
• Wealth management business is strong.
• The company has a diversified lending business.
• The company is expanding into NYC.
• The company is experiencing strong momentum and pipelines headed into 2025.
• The company redeemed $35MM of subordinated debt ($2.5MM annualized interest savings).

Negatives

• 2024 net income declined by $15.9 million.
• Net interest margin decreased 16 basis points in 2024.
• There are asset quality headwinds.

Risks

• The company's ability to successfully grow its business and implement its strategic plan, including its entry into New York City, is a risk.
• The current or anticipated impact of military conflict, terrorism or other geopolitical events could pose a risk.
• The impact of anticipated higher operating expenses in 2025 and beyond is a risk.
• The company's ability to successfully integrate wealth management firm and team acquisitions is a risk.
• The company's ability to manage its growth is a risk.
• A decline in the economy, in particular in the New Jersey and New York market areas, including potential recessionary conditions, is a risk.
• Declines in the company's net interest margin caused by the interest rate environment and its highly competitive market are a risk.
• Declines in the value in the company's investment portfolio are a risk.
• Higher than expected increases in the company's allowance for credit losses are a risk.
• Higher than expected increases in credit losses or in the level of nonperforming, classified or criticized loans or charge-offs are a risk.
• Changes in interest rates and the effects of inflation are a risk.
• A decline in real estate values within the company's market areas is a risk.
• Legislative and regulatory actions are a risk.
• Changes in monetary policy by the Federal Reserve Board are a risk.
• Changes to tax or accounting matters are a risk.
• Successful cyberattacks against the company's IT infrastructure and that of its IT providers are a risk.
• Higher than expected FDIC insurance premiums are a risk.
• Adverse weather conditions are a risk.
• A reduction in the company's lower-cost funding sources is a risk.
• Changes in liquidity, including the size and composition of the company's deposit portfolio and the percentage of uninsured deposits in the portfolio, are a risk.
• The company's ability to adapt to technological changes is a risk.
• Claims and litigation pertaining to fiduciary responsibility, environmental laws and other matters are a risk.
• The imposition of tariffs or other domestic or international governmental policies are a risk.
• The company's ability to retain key employees is a risk.
• Demands for loans and deposits in the company's market areas are a risk.
• Adverse changes in securities markets are a risk.
• Changes in New York City rent regulation law are a risk.
• Other unexpected material adverse changes in the company's operations or earnings are a risk.

Future Outlook

Based on results to date, the company anticipates adding additional teams in 2025 and continues to explore additional regional locations with opportunistic hires.

Management Comments

• Rebranding to Peapack Private Bank & Trust on January 1st is being well received as evidenced by robust pipelines in New Jersey and New York.
• Metro NY expansion is significantly above plan, resulting in strong incremental spread income, strengthening our balance sheet, and positive operating leverage.

Industry Context

Peapack-Gladstone is expanding into the competitive New York City market, aiming to compete with larger banks by offering a private banking experience. The company's success will depend on its ability to attract and retain high-value clients and manage its growth effectively.

Comparison to Industry Standards

• Peapack Private's Net Promoter Score (NPS) of 81 in New York C&I is comparable to world-class service organizations like USAA (75), Amazon (73), and Apple (72).
• The company's NPS score of 57 for Peapack Private Bank is above the U.S. Commercial Banks average of 31.
• The company's core relationship deposits now fund 96% of loans, compared to 75% just one year ago, indicating a significant improvement in its funding profile.

Stakeholder Impact

• Shareholders benefit from the approval of the Long-Term Incentive Plan and the election of directors.
• Employees may benefit from the company's expansion and growth opportunities.
• Customers may benefit from the company's enhanced services and products.
• The company's strong financial performance and liquidity position may benefit creditors.

Next Steps

• The company anticipates adding additional teams in 2025.
• The company will continue to explore additional regional locations with opportunistic hires.

Key Dates

Keywords

Peapack-Gladstone Financial Corporation, Annual Meeting, Directors, Long-Term Incentive Plan, Shareholders, Financial Results, Metro NY Expansion, Deposits, Loans, Liquidity, Net Interest Income, Wealth Management