Executive Summary

Q3 2025 delivered continued operating momentum: total revenue rose to $70.7M (+1% QoQ, +25% YoY), NIM expanded to 2.81% (+4 bps QoQ; +47 bps YoY), and diluted EPS increased to $0.54 (+20% QoQ; +26% YoY) as core deposits and C&I-led loan growth supported NII gains .
Modest misses vs S&P Global consensus: EPS $0.54 vs $0.60 consensus and revenue $70.7M vs $72.4M consensus; management attributed strength to NIM expansion and core funding mix while credit costs remained elevated but improved QoQ . Values retrieved from S&P Global*.
Credit clean-up accelerated: NPAs fell by $31M QoQ to $84.1M (1.13% of assets) on problem credit resolutions; provision declined to $4.8M (from $6.6M), though charge-offs totaled $18.0M tied to previously reserved equipment finance and multifamily exposures .
Strategic expansion remains a key growth driver: deposits +$199M QoQ to $6.6B (NIB +$86M QoQ), loans +$203M QoQ to $6.0B; tangible book value per share increased to $34.10; total available liquidity at $4.9B (267% of uninsured/uncollateralized deposits) .

What Went Well and What Went Wrong

What Went Well

Continued NIM and NII improvement: NII rose $2.3M QoQ to $50.6M; NIM expanded to 2.81%, reflecting improved asset yields and lower-cost core funding from Metro NY expansion .
Core relationship growth: deposits +$199M QoQ (NIB +$86M), loans +$203M QoQ led by C&I; year-to-date deposit growth +$433M and loan growth +$506M at ~6.75% coupon, >400 bps incremental spread YTD .
Asset quality progress: NPAs decreased $31M QoQ; criticized/classified loans -$41.2M QoQ, as management “aggressively addressed problem credits” with a focus on capital preservation (CEO) .

What Went Wrong

Earnings vs consensus: modest misses on both EPS and revenue relative to S&P Global consensus (EPS: $0.60* vs $0.54 actual; Revenue: $72.4M* vs $70.7M actual) as fee income softened and provision remained elevated . Values retrieved from S&P Global*.
Credit costs still meaningful: provision was $4.8M (albeit improved QoQ) and net charge-offs totaled $18.0M, largely from one equipment finance relationship ($11.3M) and three multifamily loans ($6.7M) .
Expense pressure: operating expenses increased modestly QoQ to $52.3M on expansion-related hiring and higher healthcare costs, though operating leverage remained positive .

Financial Results

Summary vs Prior Periods and Estimates

Metric	Q3 2024	Q2 2025	Q3 2025	Consensus (Q3 2025)
Total Revenue ($M)	56.6	69.7	70.7	72.4*
Net Interest Income ($M)	37.7	48.3	50.6	—
Total Other (Noninterest) Income ($M)	18.9	21.5	20.1	—
Operating Expenses ($M)	44.6	51.9	52.3	—
Provision for Credit Losses ($M)	1.2	6.6	4.8	—
Net Income ($M)	7.6	7.9	9.6	—
Diluted EPS ($)	0.43	0.45	0.54	0.60*
Net Interest Margin (%)	2.34%	2.77%	2.81%	—

Notes: Asterisks denote S&P Global consensus values. Values retrieved from S&P Global*.

Revenue Composition

Component ($M)	Q3 2024	Q2 2025	Q3 2025
Net Interest Income	37.7	48.3	50.6
Wealth Mgmt Fee Income	15.2	15.9	15.8
Capital Markets Activity (Total)	0.44	0.80	0.90
Other Noninterest Income	3.4	4.7	3.4
Total Revenue	56.6	69.7	70.7

KPIs and Balance Sheet

KPI	Q3 2024	Q2 2025	Q3 2025
AUM/AUA ($B)	12.1	12.3	12.9
Total Deposits ($B)	5.94	6.36	6.56
Noninterest-Bearing Deposits ($B)	1.08	1.24	1.32
Total Loans ($B)	5.32	5.82	6.03
Loan Growth QoQ ($M)	—	+304	+203
NIM (%)	2.34%	2.77%	2.81%
NPAs / Assets (%)	1.18%	1.60%	1.13%
ACL / Loans (%)	1.34%	1.40%	1.14%
Tangible Book Value/Share ($)	32.00	33.19	34.10
CET1 Ratio – Company (%)	11.67	10.99	10.47

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	Not provided	Not provided	—
NIM/Margins	FY/Quarter	Not provided	Not provided	—
Operating Expenses	FY/Quarter	Not provided	Not provided	—
Effective Tax Rate	FY/Quarter	Not provided	Not provided	—
Dividend per Share	Q4 2025 payment	$0.05 (declared 6/26/25)	$0.05 (declared 9/29/25; payable 11/28/25)	Maintained

Management did not provide formal quantitative guidance for revenue, margins, OpEx, OI&E, or tax rate in the Q3 2025 materials .

Earnings Call Themes & Trends

Note: A Q3 2025 earnings call transcript was not found in our document set.

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Metro NY expansion and core funding	Strong onboarding; >700 new relationships; core deposits +$1.3B since launch; NIM improvement	>850 new relationships; core deposits +$1.75B; continued NIM expansion to 2.81%	Improving
Credit quality (multifamily, equipment finance)	Higher NPAs; specific reserve build; ACL 1.40%	NPAs reduced by $31M QoQ; $18M charge-offs tied to previously reserved relationships; ACL 1.14%	Stabilizing/Improving
Wealth management franchise	Record/near-record AUM/AUA; steady fee income ~$15–16M/qtr	Record $12.9B AUM/AUA; fee income $15.8M; $214M inflows	Stable/Positive
Liquidity and funding mix	Liquidity ~$4.6B; no overnight borrowings	Liquidity $4.9B; 267% of uninsured/uncollateralized deposits; no overnight borrowings	Improving
Capital and TBVPS	TBVPS $33.19; CET1 10.99% (Company)	TBVPS $34.10; CET1 10.47% (Company)	Mixed (TBVPS up; CET1 modestly lower)
Technology/AI enablement	Limited explicit references in Q1/Q2 public materials	“Actively embracing artificial intelligence to drive operational efficiency…” (Investor Update)	Emerging Positive

Management Commentary

“We continue to make significant progress with our Metro New York expansion… more than 850 new client relationships, adding over $1.75 billion in core relationship deposits and more than $900 million in new loans… a fourth consecutive quarter of positive operating leverage…” — Douglas L. Kennedy, President & CEO .
“With strong earnings momentum, we aggressively addressed problem credits as nonperforming assets declined by $31 million in the quarter.” — Douglas L. Kennedy .
“Q3 2025 saw continued strong client inflows… new business inflows of $214 million.” — John Babcock, President, Wealth Management .
“We continue to make investments [in Metro NYC and Long Island]… confident these investments will position us for future growth and profitability.” — Douglas L. Kennedy .

Q&A Highlights

A Q3 2025 earnings call transcript was not available in our document set; thus, Q&A themes and any guidance clarifications could not be analyzed from a transcript source.

Estimates Context

Q3 2025 EPS: $0.54 vs consensus $0.60*; Q3 2025 revenue: $70.7M vs consensus $72.4M*. Values retrieved from S&P Global*. Company-reported “Total revenue” includes NII plus noninterest income as presented in the press release; consensus revenue definitions may differ from GAAP presentation and can lead to small variances .
Estimate counts: EPS (4), Revenue (2). Values retrieved from S&P Global.

Key Takeaways for Investors

NIM expansion and core relationship growth remain the central earnings drivers; Metro NY momentum is supporting sustained NII gains and positive operating leverage .
Credit normalization advanced with meaningful problem asset resolution; provision improved QoQ and NPAs fell, but periodic charge-offs tied to prior specific reserves may continue near-term as cleanup progresses .
Wealth management provides a stable fee base with record AUM/AUA and consistent inflows, reducing earnings volatility through the rate cycle .
Liquidity and deposits are a strength: $4.9B total available liquidity and rising NIB mix support balanced funding and cushion against shocks; no reliance on overnight borrowings .
Capital remains comfortably above well-capitalized thresholds; TBVPS is compounding despite growth investments; management maintained the $0.05 dividend .
Near-term: modest consensus misses could temper reactions, but the narrative skews positive on NIM, deposits, and asset quality progress—watch for ongoing credit cost cadence and expense discipline .
Medium-term: execution on C&I-led growth in Metro NY, continued NIM resilience, and fee stability from wealth should underpin EPS and TBVPS compounding, with credit normalization as the main swing factor .

Footnote: *Values retrieved from S&P Global.

PEAPACK GLADSTONE FINANCIAL CORP (PGC)·Q3 2025 Earnings Summary