Form 4: PGC Executive Babcock Reports Significant Equity Activity

Peapack Gladstone Financial Corp's SEVP & President of Private Wealth Management, John P. Babcock, reported multiple equity grants, vestings, and tax-related dispositions of common stock and restricted stock units.

Summary

• John P. Babcock, SEVP & President of Private Wealth Management at Peapack Gladstone Financial Corp (PGC), reported multiple transactions on March 20, 2026.
• Transactions included the vesting of various Restricted Stock Units (RSUs) and Phantom Stock awards, resulting in the acquisition of common stock.
• A total of 1,760, 1,258, 1,197, and 6,199 shares of common stock were acquired directly through RSU vestings.
• An additional 754, 1,258, 1,197, and 6,199 shares of common stock were acquired indirectly through a Rabbi Trust due to RSU vestings.
• Shares were disposed of to satisfy tax withholding obligations, totaling 901, 644, 613, and 2,178 shares at a price of $33.18 per share.
• New grants of 9,362 Restricted Stock Units (RSUs) and 14,043 performance-based RSUs were received on March 20, 2026.
• Following these transactions, Mr. Babcock directly holds 50,582 shares of common stock and indirectly holds 74,876 shares via a Rabbi Trust and 6,720 shares via a 401(k).
• Outstanding derivative holdings include 5,029, 9,362, 2,524, 4,788, 11,315, 14,043 Restricted Stock Units and 2,760, 12,418 Phantom Stock units.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing positively as it reflects routine executive compensation, including significant new equity grants and the vesting of prior awards. While some shares were sold for tax purposes, the overall increase in beneficial ownership and continued long-term incentive alignment are favorable.

Positives

• Significant grants of new Restricted Stock Units (RSUs) totaling 9,362 and 14,043 performance-based RSUs on March 20, 2026, indicating continued long-term incentive alignment.
• Vesting of multiple RSU and Phantom Stock awards, converting into common stock, demonstrates the realization of previously granted equity compensation.
• Increased direct and indirect beneficial ownership of common stock following the vestings, reflecting a higher stake in the company.

Negatives

• Disposition of 4,336 shares of common stock (901 + 644 + 613 + 2,178) at $33.18 per share to cover tax withholding obligations, reducing the net shares received from vestings.

Future Outlook

The filing indicates future vesting events for various RSU and phantom stock grants, with some vesting annually through March 20, 2027, and others contingent on performance conditions over a three-year period.

Industry Context

StockSavvy.ai notes that routine insider transaction reports like this Form 4 are common in the financial services industry, reflecting standard executive compensation practices involving equity awards. The mix of time-based and performance-based RSUs and phantom stock aligns with typical long-term incentive structures designed to retain key talent and align executive interests with shareholder value creation. These types of grants are prevalent across regional banks and wealth management firms, aiming to foster long-term commitment and performance.

Related Party Transactions

• Indirect beneficial ownership of common stock held through a Rabbi Trust, which is part of a non-qualified deferred compensation plan.

Stakeholder Impact

• Shareholders: The grants and vestings align executive incentives with shareholder interests, potentially fostering long-term value creation. Tax-related sales are a routine part of equity compensation and do not necessarily indicate a change in management's confidence.
• Employees: The equity compensation structure reflects the company's approach to rewarding and retaining key executives.

Next Steps

• Future annual vestings of 7,543 RSUs granted on March 20, 2025, starting March 20, 2026.
• Future annual vestings of 9,362 RSUs granted on March 20, 2026, starting March 20, 2027.
• Future annual vestings of 12,588 RSUs granted on March 20, 2022, continuing through March 20, 2027.
• Future annual vestings of 11,970 RSUs granted on March 20, 2023, continuing through March 20, 2028.
• Future vesting of 11,315 performance-based RSUs granted on March 20, 2025, on their third anniversary if conditions are met.
• Future vesting of 14,043 performance-based RSUs granted on March 20, 2026, on their third anniversary if conditions are met.
• Future annual vestings of 8,278 phantom stock shares granted on March 20, 2024, continuing through March 20, 2026.
• Future vesting of 12,418 performance-based phantom stock shares granted on March 20, 2024, on their third anniversary if conditions are met.

Key Dates

Recommendation

The filing details routine executive compensation activities, including equity grants, vestings, and tax-related dispositions. These transactions are expected and do not signal a material change in the company's fundamentals or the executive's long-term commitment. Therefore, a 'hold' recommendation is appropriate, as the filing provides no new information that would warrant a change in investment thesis.

Keywords

PEAPACK GLADSTONE FINANCIAL CORP, PGC, Insider Trading, Form 4, Equity Compensation, Restricted Stock Units, Phantom Stock, Executive Compensation, John P. Babcock, Stock Ownership, Financial Services