$0.85 per diluted share is the Q2 2026 bottom line Peapack-Gladstone Financial Corporation (NASDAQ: PGC) produced for the quarter ending June 30, 2026, up 89% from $0.45 in Q2 2025 and 6% from $0.80 in Q1 2026. Net income available to common shareholders reached $15.8 million, against $7.9 million a year earlier. Total revenue of $86.1 million less $55.7 million in operating expenses produced pre-provision net revenue of $30.4 million, up 70% from $17.8 million in the year-ago period.
Operating leverage, ninth consecutive revenue record
Revenue expanded 23% year-over-year while expenses grew only 7%, a spread that drove positive operating leverage for the period. The GAAP efficiency ratio improved for the seventh straight quarter to approximately 65%. Return on average equity climbed to 8.94% from 5.11% in Q2 2025; return on average assets rose to 0.80% from 0.45%.
| Metric | Q2 2026 | Q1 2026 | Q2 2025 |
|---|---|---|---|
| Net income to common ($ mm) | $15.8 | $14.2 | $7.9 |
| Diluted EPS | $0.85 | $0.80 | $0.45 |
| Net interest income ($ mm) | $63.9 | $59.9 | $48.3 |
| Net interest margin | 3.32% | 3.26% | 2.77% |
| Total revenue ($ mm) | $86.1 | $82.5 | $69.7 |
| Operating expenses ($ mm) | $55.7 | $55.4 | $51.9 |
| PPNR ($ mm) | $30.4 | $27.1 | $17.8 |
| ROAA (annualized) | 0.80% | 0.74% | 0.45% |
| ROAE (annualized) | 8.94% | 8.51% | 5.11% |
NIM, loans, and deposits
Net interest income of $63.9 million, representing 74% of total Q2 revenue, rose $4.0 million, or 7%, from Q1 2026 and $15.6 million, or 32%, from Q2 2025. The net interest margin expanded 6 basis points QoQ to 3.32%, a 55-basis-point gain from 2.77% in Q2 2025, supported by balance sheet repositioning and disciplined asset pricing.
Total loans reached $6.7 billion at June 30, 2026, up $235.9 million in the quarter (15% annualized) and $854 million, or 15%, year-over-year. C&I loans and leases stood at $2.9 billion, or 44% of the total portfolio. Deposits grew to $7.1 billion, a $694 million year-over-year increase.
Wealth management assets under management and administration totaled $13.9 billion, up 13% year-over-year. Fee income from the division reached $17.2 million, or 20% of total Q2 revenue.
Capital position and preferred equity completion
Shareholders' equity stood at $715.8 million at June 30, 2026, up $86 million year-over-year. Tangible book value per share rose 9% to $36.26; book value per share increased 8% to $38.70. On July 24, 2026, Peapack Private Bank & Trust issued the final $20 million tranche of its 6% non-cumulative perpetual convertible preferred stock to Strategic Value Bank Partners, completing a $50 million commitment first announced in Q1 2026. The initial $30 million placement closed in March 2026.