Peapack-Gladstone Financial Corporation reported fourth quarter 2025 net income of $12.2 million, representing a 26% increase from the previous quarter's $9.6 million. The company's diluted earnings per share rose to $0.69 for the quarter ended December 31, 2025, compared to $0.54 for the September quarter. For the full year, net income grew 13% to $37.3 million, or $2.10 per share, up from $33.0 million, or $1.85 per share in 2024.
The financial results demonstrate significant momentum in core banking operations, with total deposits growing by $460 million, or 8%, over the last twelve months to reach $6.6 billion. Noninterest-bearing deposits showed particularly strong growth, increasing by $316 million, or 28%, during 2025. This transformation of the deposit base toward lower-cost funding sources represents a key strategic advantage for the company's private banking model.
Net interest income increased $6.0 million, or 12%, on a linked quarter basis to $56.5 million for the fourth quarter. The net interest margin expanded to 3.08% for the quarter ended December 31, 2025, compared to 2.81% for the previous quarter and 2.46% for the same period in 2024. This marks eight consecutive quarters of net interest income growth, reflecting disciplined pricing and consistent execution of the company's strategy.
Total loans grew by $738 million, or 13%, to $6.3 billion during the twelve-month period, with commercial and industrial lending accounting for 55% of new business originations during the fourth quarter. The company originated loans at a weighted average coupon of 6.60% during the year, resulting in an incremental spread of more than 400 basis points on new business compared to funding sources.
The wealth management division showed substantial growth, with assets under management and administration increasing by $1.2 billion to $13.1 billion at year-end. Wealth management fee income reached $16.1 million in the fourth quarter, representing 21% of total revenue. New business inflows totaled $291 million in the quarter and $1.0 billion for the full year, indicating strong client acquisition and retention.
President and CEO Douglas L. Kennedy emphasized the company's strategic positioning, stating that Peapack Private Bank & Trust serves as "the premier boutique alternative to the mega banks in metro New York." The company's expansion efforts into New York City and Long Island have contributed to operating expenses, which increased to $53.5 million for the fourth quarter, primarily due to new office openings and related investments.
Asset quality showed improvement, with nonperforming assets decreasing to $68.2 million, or 0.91% of total assets, at December 31, 2025, compared to $84.1 million, or 1.13% of total assets, at September 30, 2025. The company maintains strong capital ratios, with the Tier 1 Leverage Ratio at 9.89% for the bank and 8.87% for the company, both significantly above well-capitalized standards.
Investors can access detailed financial information through the company's Q4 2025 Investor Update available on their website at https://www.peapackprivate.com and via a Current Report on Form 8-K on the Securities and Exchange Commission website at https://www.sec.gov. The company declared a cash dividend of $0.05 per share payable on February 26, 2026, to shareholders of record on February 12, 2026.
The financial performance reflects successful execution of the company's private banking strategy, which combines commercial banking with wealth management services. The growth in core relationship deposits, expansion of the net interest margin, and strong wealth management inflows demonstrate the company's competitive positioning in a challenging banking environment. These results indicate resilience and strategic focus that could influence regional banking performance benchmarks and investor expectations for boutique financial institutions.
