Peapack-Gladstone Financial Corporation Secures \$50 Million Preferred Stock Commitment to Drive Growth and Strategic Flexibility
Key Developments
- Peapack-Gladstone Financial Corporation (NASDAQ: PGC) announced a significant \$50 million preferred stock commitment from affiliates of Strategic Value Bank Partners, a recognized long-term investor specializing in the banking sector.
- The investment comprises an immediate \$30 million private placement of non-cumulative perpetual convertible preferred stock, with the option to issue an additional \$20 million of preferred stock through the end of 2027.
- The preferred stock offers a 6.00% dividend per annum, is non-callable for five years, and is convertible to common stock at the holder’s discretion after five years.
- This capital raise is expected to qualify as Tier 1 capital, strengthening the company’s balance sheet and regulatory standing.
- Proceeds will be used for general corporate purposes, including organic growth, potential acquisitions, investment at the holding company or bank level, and potential refinancing or reduction of existing debt.
Details for Investors and Shareholders
- Dividend and Conversion Features: The preferred stock carries a 6.00% annual dividend, attractive in the current rate environment. Importantly, it is non-callable for the first five years, ensuring shareholders stability in dividend payouts. After this period, it becomes redeemable and convertible into common stock at the option of the holder, introducing potential dilution but also offering upside for investors as the company grows.
- Tier 1 Capital Qualification: The structure is expected to qualify as Tier 1 capital, subject to regulatory approval. This enhances the company’s financial resilience and flexibility, potentially making the stock more attractive to institutional investors who closely monitor capital adequacy ratios.
- Alignment with Growth Strategy: Management emphasized that the additional capital will support ongoing expansion in the New York metropolitan market, where the company has reported positive operating leverage and improving earnings momentum. The funds provide flexibility for further growth initiatives and strategic acquisitions.
- Strategic Investor Endorsement: Marty Adams, Co-Founder and Principal of Strategic Value Bank Partners, highlighted his firm’s long-standing confidence in Peapack-Gladstone’s management and business model, underlining the investment as a vote of confidence in the company’s direction.
- Potential Impact on Share Value: The commitment of fresh capital, endorsement by a reputable banking sector investor, and the planned use of proceeds to support further growth and acquisitions are all potentially positive catalysts for PGC’s share price. However, the possibility of conversion into common stock after five years introduces potential dilution risk for existing shareholders, which should be monitored.
Management Commentary
Douglas L. Kennedy, President and CEO, stated, “We are pleased to partner with Strategic Value Bank Partners, whose long-term orientation aligns well with our strategy. Over the past two years, we have made significant investments in our expansion across the New York metropolitan market and are seeing strong results reflected in positive operating leverage and improving earnings momentum. This capital raise provides flexibility to continue executing on that growth while maintaining capital levels consistent with our long-standing targets. Importantly, it reflects our disciplined approach to capital management, including actions we have taken to improve the efficiency and quality of our capital structure.”
Marty Adams, Co-Founder and Principal of Strategic Value Bank Partners, added, “We have been a long-time investor in PGC common stock and are excited to support the Company’s continued growth. We have strong conviction in the management team and the progress made in building a premier private banking and wealth management franchise serving clients across the New York metropolitan market. This investment reflects our confidence in the Company’s trajectory and our interest in deepening our long-term partnership.”
Forward-Looking Information and Risks
The company notes that this press release contains forward-looking statements regarding the timing, structure, and regulatory treatment of the preferred stock issuance, anticipated use of proceeds, and the company’s growth strategy. Actual results may differ materially due to risks, uncertainties, and assumptions. Investors are encouraged to review Peapack-Gladstone’s filings with the SEC, including its latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, for more details on potential risks.
Company Background
- Peapack-Gladstone Financial Corporation is a New Jersey-based bank holding company with total assets of \$7.5 billion and assets under management/administration of \$13.1 billion as of December 31, 2025.
- Founded in 1921, Peapack Private Bank & Trust offers a comprehensive suite of wealth management, investment banking, commercial, and personal banking services, focusing on a client-centric approach.
- The bank’s wealth management division provides financial, tax, fiduciary, and investment advice to individuals, families, businesses, family offices, and not-for-profit organizations.
Contact Information
For further information, contact:
Frank A. Cavallaro, Sr. EVP, Chief Financial Officer
Peapack Private Bank & Trust
500 Hills Drive, Suite 300, Bedminster, NJ 07921
[email protected]
(908) 306-8933
Disclaimer
Disclaimer: This article contains information and forward-looking statements based on public disclosures by Peapack-Gladstone Financial Corporation as of March 26, 2026. Actual results may differ due to market, regulatory, and business risks. Investors should perform their own due diligence and consult with financial advisors before making investment decisions. This content does not constitute investment advice or an offer to buy or sell any securities.
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