PGC

Peapack-Gladstone (rebranded Peapack Private Bank & Trust in Jan 2025) is executing a deliberate pivot into private banking and wealth management across New Jersey and New York City/Long Island, and the FY2025 numbers show the strategy is finally translating into top-line traction: revenue jumped 24.1% to $283M after two years of declines from the FY2022 $242M peak. Net income recovered modestly to $37.3M (+13.2%) and diluted EPS hit $2.10 (+13.5%), but profitability remains well below the FY2022 high-water mark of $74.2M — so this is a recovery story, not a return to peak earnings power.

The MD&A is candid about the cost side: management explicitly flags 'the impact of anticipated higher operating expenses in 2026 and beyond' tied to the strategic plan and an expanded employee base (682 FTEs, with 152 already in New York). Combined with a 5.7% ROE — punishingly low for a bank — and liabilities/equity of 10.43x, the fundamentals don't yet justify a premium multiple. P/E of 21.8 on FY2025 EPS is rich for a small-cap commercial bank generating sub-10% returns on equity, and P/S of 2.8 is full. Cash fell 52% to $188M and operating cash flow dropped 39.3% to $43.1M, while capex nearly doubled to $14.3M — all consistent with a heavy reinvestment phase, but it leaves less margin for error.