Peapack-Gladstone Financial Corporation (PGC): Business Model Canvas [Dec-2025 Updated]

You're digging into how Peapack-Gladstone Financial Corporation (PGC) actually makes its money, and honestly, the engine is their focused, high-touch private banking model, especially as they push hard into the competitive Metro New York market. Forget the generic bank talk; their strength lies in that single point of contact service, backed by $\mathbf{\$12.9}$ billion in Assets Under Management/Administration as of September 30, 2025, and a loan book where Commercial and Industrial (C&I) lending drove $\mathbf{69\%}$ of new originations last quarter. If you want to see exactly how they balance that $\mathbf{\$50.6}$ million in Q3 2025 Net Interest Income with the rising costs of their New York talent acquisition, the full Business Model Canvas below breaks down every moving piece of their strategy.

Peapack-Gladstone Financial Corporation (PGC) - Canvas Business Model: Key Partnerships

You're looking at the external relationships Peapack-Gladstone Financial Corporation (PGC) relies on to deliver its boutique private banking and wealth management value proposition across the New Jersey and Tri-State area.

Technology Providers for Digital Banking Infrastructure

Peapack-Gladstone Financial Corporation uses core technology partners to maintain a competitive digital offering. The relationship with Jack Henry & Associates, Inc. is a clear example, where the bank leveraged Jack Henry's flexible technology ecosystem and cloud services to enhance operational efficiency. For instance, the adoption of the JHA Agiletics Escrow System™ allowed Peapack Private Bank & Trust to offer customers self-service escrow management, putting them on par with capabilities seen at institutions like Capital One.

The bank's total assets were reported at $7.1 billion as of March 31, 2025. While Fiserv is a known industry core provider, specific, recent financial data detailing PGC's direct partnership scope with them is not publicly itemized in the same way as the Jack Henry escrow solution adoption.

Key Technology Partnership Data Points:

• Jack Henry's JHA Agiletics Escrow System™ enables competition with large banks on escrow deposit capabilities.
• The bank's asset size was $7.1 billion as of March 31, 2025.
• The technology helps the bank attract low-cost deposits, which is the goal on the escrow side.

Investment Advisory Firms to Enhance Wealth Management Offerings

The wealth management division, Peapack Private Wealth Management, integrates proprietary management with access to third-party investment managers through Unified Managed Accounts (UMA) or Separately Managed Accounts (SMA). This structure suggests reliance on external investment expertise and platforms. A foundational partnership was solidified with the 2015 acquisition of Wealth Management Consultants (WMC), whose clients controlled over $2 billion in assets, with approximately $450 million in assets under advisement at the time of the deal.

As of June 30, 2025, the Assets under Management and/or Administration (AUM/AUA) for the Wealth Management Division reached $12.3 billion. The division generated $15.9 million in fee income for the second quarter of 2025.

Wealth Management Metrics:

Regional Economic Development Organizations for Local Business Growth Support

Peapack-Gladstone Financial Corporation's strategy involves active expansion and relationship building in the Greater New York Metropolitan market, which inherently involves engagement with regional business support structures. The company reported significant growth in core deposits driven by this strategic expansion. While specific financial contributions or formal partnership agreements with economic development organizations are not detailed, the focus on building a presence in Manhattan and recruiting key talent from the Tri-State area implies deep local networking.

The bank's total deposits grew to $6.4 billion as of June 30, 2025.

Strategic Alliances with Local Businesses in the New Jersey/Tri-State Area

The investment banking subsidiary, Peapack Private Investment Banking, acts as an advisor in strategic alliances, demonstrating partnerships through transaction execution. For example, Peapack Private Investment Banking advised the selling shareholders of ACA Computers, LLC on its strategic sale to Network Coverage, announced on November 6, 2025. Furthermore, Peapack Capital, a subsidiary, provides asset finance and equipment leasing solutions to help mid- to large-scale businesses grow.

The bank's focus is positioning itself as an alternative to large banks throughout Metropolitan New York.

• Advising on middle-market transactions, such as the sale of ACA Computers, LLC to Network Coverage (November 2025).
• Peapack Capital provides asset finance and equipment leasing solutions.
• The bank is actively recruiting professionals to support its New York City presence.

Peapack-Gladstone Financial Corporation (PGC) - Canvas Business Model: Key Activities

You're looking at the core actions Peapack-Gladstone Financial Corporation (PGC) focused on to drive its business through late 2025. These aren't just ideas; they are the operational engines delivering results, especially in the competitive Metro New York space.

Commercial and Industrial (C&I) lending was definitely the primary engine for loan growth. For the third quarter of 2025, C&I lending was responsible for 69% of all new business originations. To put that in perspective, C&I balances made up 44% of the total loan portfolio as of September 30, 2025. That shows a clear strategic push to grow this specific asset class.

The firm's second key activity centers on delivering a single point of contact private banking experience. This is formalized by the transformation into Peapack Private Bank & Trust, signaling an evolution toward being the premier boutique private bank in the Metro New York area. This high-touch model is designed to compete against the larger, more impersonal institutions.

Next, you see the necessary, less glamorous work of active management of the loan portfolio and problem assets for capital preservation. This is crucial for maintaining the bank's financial health. Here's a quick look at the asset quality metrics as of September 30, 2025, compared to the prior quarter:

Finally, a major ongoing activity is expanding the physical and talent footprint in the Metro New York market. This isn't just about opening doors; it's about embedding experienced professionals. Over the two years leading up to the end of Q3 2025, this expansion effort resulted in significant client acquisition:

• Onboarded more than 850 new client relationships.
• Added over $1.75 billion in core relationship deposits.
• Secured more than $900 million in new loans from these new relationships.
• In Q3 2025 alone, they added an experienced team in Long Island for equipment finance and three New York-based wealth advisors.
• The New York presence includes a flagship 6,000-square-foot Financial Center at 300 Park Avenue, complementing the 18,000 square feet of office space on the 13th floor, which houses over 100 private bankers and relationship managers.

The firm is actively using its momentum to staff up and secure physical space to serve this key geography. That's the action plan in a nutshell.

Peapack-Gladstone Financial Corporation (PGC) - Canvas Business Model: Key Resources

You're looking at the core assets that Peapack-Gladstone Financial Corporation (PGC) uses to deliver its value proposition. These aren't just numbers; they represent the scale and stability of the business as of late 2025.

The financial foundation is built on significant client assets and stable funding sources. The firm's ability to attract and retain deposits is central to its lending and investment activities. For instance, the focus on core relationship deposits is clearly paying off, as evidenced by the composition of their funding base.

Here's a quick look at the scale of the balance sheet and wealth management operations at the end of the third quarter of 2025:

The human capital side is just as critical, especially for a firm emphasizing private banking relationships. You can't have a boutique private bank without top-tier talent. Peapack-Gladstone Financial Corporation has been actively building out its teams, often by bringing in experienced professionals directly from competitors to bolster their presence, particularly in the Metro New York expansion area. This focus on personnel is directly tied to their brand promise.

The brand itself is a key resource, representing the unified client experience across all services. They have successfully consolidated their identity under one banner, which helps streamline marketing and client perception. It's a clear signal to the market about where they are focusing their efforts.

Key elements supporting the service delivery model include:

• The unified brand identity: Peapack Private Bank & Trust.
• Strategic focus on experienced private banking teams, including key hires from competitors.
• Wealth Management fee income was $15.8 million for Q3 2025, representing 22% of total revenue for that quarter.
• Commercial and industrial (C&I) balances made up 44% of the total loan portfolio at September 30, 2025.

These resources-the capital base, the client assets, and the specialized teams operating under a single, clear brand-are what power the business model. Finance: review the Q4 hiring projection against the planned office expansion by next Tuesday.

Peapack-Gladstone Financial Corporation (PGC) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose Peapack-Gladstone Financial Corporation (PGC) over larger, less personalized institutions. The value proposition centers on a high-touch, integrated service model that competes effectively in the middle-market and high-net-worth (HNW) space.

Single point of contact for comprehensive commercial, personal, and wealth solutions.

Peapack-Gladstone Financial Corporation emphasizes having one relationship manager guide clients through all their needs, from business financing to personal wealth planning. This approach is credited with helping drive core deposit growth, which is key to their funding strategy. As of September 30, 2025, total deposits reached $6.6 billion, with core relationship deposits showing significant increases during the first nine months of the year. The firm's total assets stood at $7.4 billion at that same date.

Bespoke, high-touch private banking service for high-net-worth clients.

The dedication to personalized service is evident in the growth of the Wealth Management Division. Assets Under Management and/or Administration (AUM/AUA) grew to $12.9 billion at September 30, 2025, up from $11.9 billion at the end of 2024. This division generated $15.8 million in fee income for the third quarter of 2025. New business inflows for that quarter alone totaled $214 million. The President of the Wealth Management Division noted that the high-touch client service model distinguishes them in the market.

Here's a quick look at the Wealth Management performance as of the latest reported quarter:

Expertise in Commercial and Industrial (C&I) lending and commercial real estate.

Peapack-Gladstone Financial Corporation actively builds its middle-market commercial banking franchise. Total loans increased to $6.0 billion at September 30, 2025, a 9% increase from the end of 2024. The focus on C&I lending is a core driver of this growth. Specifically, Commercial and Industrial (C&I) loans and leases stood at $2.7 billion as of September 30, 2025, making up 44% of the total loan portfolio. This lending strength, complemented by Treasury Management and Corporate Advisory services, fits perfectly with the private banking model.

Integrated wealth management and banking under one unified platform.

The unification of services is a structural advantage that supports the single point of contact model. The firm's strategy is explicitly designed to deliver lower-cost core deposit relationships, which has resulted in a consistent improvement in the Net Interest Margin (NIM), reaching 2.81% in Q3 2025. This integration allows for a more holistic view of the client's financial picture, linking commercial success with personal wealth preservation and growth. The firm's capital position remains strong, with Tangible Book Value per Share increasing to $34.10 at September 30, 2025, a 7% increase from year-end 2024.

You can see how the two main segments contribute to the overall financial picture:

• Total Assets as of September 30, 2025: $7.4 billion.
• Wealth Management AUM/AUA as of September 30, 2025: $12.9 billion.
• Total Loans as of September 30, 2025: $6.0 billion.
• C&I Loans as of September 30, 2025: $2.7 billion.

The firm also reported a Tier 1 Leverage Ratio of 8.86% for the Company at September 30, 2025, which is well above regulatory standards.

Peapack-Gladstone Financial Corporation (PGC) - Canvas Business Model: Customer Relationships

Dedicated, high-touch relationship management via the single point of contact model.

The company rebranded to Peapack Private Bank & Trust effective January 1, 2025, unifying banking and wealth management divisions to support this model. The success of this approach is evident in the Metro New York expansion, which onboarded over 700 new relationships as of June 30, 2025. The New York Commercial Private Banking initiative alone brought $950 million in new customer relationship deposits over the twelve months ending December 31, 2024. By June 30, 2025, the Metro New York expansion attracted over $1.3 billion in new core relationship deposit balances. The company emphasizes its 'single point of contact private banking strategy' and 'high-touch client service model' as key differentiators. The total assets under management and/or administration (AUM/AUA) stood at $12.9 billion at September 30, 2025. New business inflows for the Wealth Management Division in the third quarter of 2025 totaled $214 million. The Wealth Management fee income for the third quarter of 2025 was $15.8 million.

Long-term, trusted advisory relationships with business owners and families.

The target market includes high-net-worth individuals, ultra-high-net-worth individuals, businesses, and their owners. The focus on business owners is reflected in the loan portfolio composition. Commercial and Industrial (C&I) balances represented 44% of the total loan portfolio at September 30, 2025. The total loan portfolio reached $6.0 billion at September 30, 2025. The AUM/AUA in the Wealth Management Division grew by $1.0 billion to $12.9 billion at September 30, 2025, compared to $11.9 billion at December 31, 2024.

Relationship-driven deposit gathering to secure lower-cost core funding.

The strategy directly impacts funding costs, evidenced by the Net Interest Margin (NIM) expansion to 2.81% for the third quarter of 2025, up from 2.77% in the second quarter of 2025. Total deposits increased by $433 million, or 7%, through the first nine months of 2025, reaching $6.6 billion as of September 30, 2025. Core relationship deposits increased by $708 million during the nine months ended September 30, 2025. Noninterest-bearing deposits increased by $211 million, or 19%, during this same nine-month period. Noninterest-bearing demand deposits represented 20% of total deposits as of September 30, 2025.

• Total Deposits as of September 30, 2025: $6.6 billion.
• Noninterest-bearing deposits as of September 30, 2025: 20% of total deposits.
• Net Interest Margin (NIM) for Q3 2025: 2.81%.
• Core relationship deposit increase (YTD Q3 2025): $708 million.
• Total assets as of September 30, 2025: $7.2 billion.

Peapack-Gladstone Financial Corporation (PGC) - Canvas Business Model: Channels

You're looking at how Peapack-Gladstone Financial Corporation delivers its value proposition across the market, which heavily relies on physical presence and dedicated personnel, supplemented by digital tools.

Physical Private Banking offices, including the strategic New York City expansion.

The physical channel strategy centers on high-touch, boutique locations in key affluent markets. The New York City presence is a significant component of this channel, established to compete directly with larger institutions. Peapack Private Bank & Trust opened its flagship Financial Center in mid-town Manhattan at 300 Park Avenue in March 2025. This new first-floor Center spans 6,000 square feet and complements the existing 18,000 square feet of office space on the 13th floor, which opened in 2023. Furthermore, the expansion is moving into the New York Metro area, securing temporary commercial space at 175 Broadhollow Road, Melville, NY, and negotiating for permanent space in Garden City, Long Island. As of the second quarter of 2025, the holding company, Peapack-Gladstone Financial Corporation, reported total assets of $7.2 billion and Assets Under Management and/or Administration (AUM/AUA) of $12.3 billion as of June 30, 2025.

The physical footprint supports the core service model:

• The combined NYC locations host over 100 private bankers and relationship managers.
• The bank has more than a dozen offices in New Jersey.
• The expansion into Long Island involved staffing up the team, including adding several managing group directors.

Here are some key financial metrics as of mid-2025, reflecting the scale these channels support:

Direct Relationship Managers (the single point of contact).

The single point of contact model is central to the value proposition, especially in private banking. This structure ensures clients interact primarily with a dedicated team member for commercial banking, personal banking, and wealth management solutions. The hiring strategy supports this channel, with recent additions like Alex Lurye joining the New York-based commercial banking team as Senior Managing Director in October 2025. This model is explicitly cited as driving the consistent improvement in the net interest margin through lower-cost core deposit relationships.

Digital banking platforms for seamless online and mobile transactions.

While the emphasis is on personal contact, digital channels provide necessary transactional support. The Banking segment includes operation of ATMs, telephone, and Internet banking services. These platforms facilitate seamless online and mobile transactions for existing clients.

Investment banking subsidiary for corporate advisory services.

Peapack-Gladstone Financial Corporation channels corporate advisory services through its investment banking subsidiary, Peapack Private Investment Banking. This subsidiary actively engages in deal execution. For instance, in November 2025, Peapack Private Investment Banking advised ACA Computers, LLC's selling shareholders on its strategic sale to Network Coverage. The Banking segment also includes C&I advisory services.

Peapack-Gladstone Financial Corporation (PGC) - Canvas Business Model: Customer Segments

You're looking at the core client base for Peapack-Gladstone Financial Corporation (PGC) as of late 2025, which is heavily weighted toward sophisticated, relationship-driven banking and wealth management services.

The customer segments are clearly defined, reflecting the strategic pivot toward becoming a premier boutique private bank in the Metro New York area, which is evidenced by the ongoing expansion efforts there. This focus targets individuals and businesses needing high-touch service.

The client base is served through distinct channels, with the Wealth Management division managing substantial assets, which was $12.9 billion in Assets Under Management/Administration (AUM/AUA) as of September 30, 2025. For the third quarter of 2025, this division generated $15.8 million in fee income, which accounted for 22% of the Company's total revenue for that period.

The commercial side is centered on building a leading middle-market franchise, supported by services like Treasury Management and Corporate Advisory. The success of the New York City expansion is notable, having onboarded over 550 new relationships in 2024 alone.

The primary customer segments Peapack-Gladstone Financial Corporation serves include:

• High-net-worth individuals and families in the Metro New York area, a key focus area for the bank's private banking strategy.
• Privately held businesses and middle-market commercial clients, who drive the growth in the commercial banking segment.
• Family offices and not-for-profit organizations, which are explicitly mentioned as receiving innovative private banking services.

The composition of the loan portfolio clearly shows the emphasis on the commercial sector, particularly Commercial and Industrial (C&I) lending, which is a core growth area for Peapack-Gladstone Financial Corporation.

Here is a look at the loan portfolio composition as of September 30, 2025:

The Commercial and Industrial (C&I) borrowers are a critical segment, representing exactly 44% of the total loan portfolio at September 30, 2025, with total C&I loans and leases reaching $2.7 billion. This segment accounted for 69% of the new business originations during the third quarter of 2025.

Peapack-Gladstone Financial Corporation (PGC) - Canvas Business Model: Cost Structure

You're looking at the expense side of Peapack-Gladstone Financial Corporation's operations as of late 2025, focusing on the costs necessary to support its boutique private bank and wealth management model.

The cost structure is heavily influenced by the need to attract and retain top-tier talent to deliver the high-touch service model, especially following the strategic push into the Metro New York market. Personnel expenses are a significant component, reflecting the commitment to experienced private banking and wealth management teams. For instance, Peapack-Gladstone Financial Corporation expected to add several new wealth professionals in early 2025 to capitalize on new client inflows from the New York expansion. This investment in human capital is a core cost driver.

Operating expenses have seen upward pressure, directly tied to the expansion efforts. For the second quarter of 2025, total operating expenses were reported at $51.9 million. This figure reflected costs associated with the ongoing expansion into New York City, alongside increased health insurance costs and annual merit increases. The company has acknowledged the impact of anticipated higher operating expenses in 2025 and beyond as part of its strategic plan execution.

A critical, variable cost in banking is the Provision for Credit Losses, which directly impacts reported earnings based on asset quality outlook. For the quarter ended September 30, 2025, the provision for credit losses was recorded at $4.8 million. This provision was primarily driven by overall loan growth of $506 million year-to-date and included specific reserves totaling $4.3 million related to two multifamily loans. At the end of Q3 2025, the Allowance for Credit Losses (ACL) stood at $68.6 million, representing 1.14% of total loans.

The commitment to a modern banking experience necessitates ongoing investment in technology and infrastructure costs for digital banking solutions. While specific technology spending figures aren't broken out in the immediate reports, the mention of adapting to technological changes as a risk factor underscores this as a necessary, ongoing expenditure to support both the Banking and Wealth Management segments.

Here is a summary of key cost-related figures from the period surrounding Q3 2025:

The expense profile for Peapack-Gladstone Financial Corporation shows a clear trade-off:

• Investment in personnel to support the private banking strategy.
• Higher operating expenses driven by the New York City expansion.
• Credit risk management costs reflected in the Provision for Credit Losses.
• Necessary capital outlay for technology infrastructure.

Finance: draft 13-week cash view by Friday.

Peapack-Gladstone Financial Corporation (PGC) - Canvas Business Model: Revenue Streams

You're looking at the core ways Peapack-Gladstone Financial Corporation (PGC) brings in money as of late 2025. For a bank holding company, this is all about the spread between what they earn on assets and what they pay on liabilities, plus the fees they charge for services.

The primary engine remains Net Interest Income (NII) from lending activities. For the third quarter of 2025, NII was reported at $50.6 million. This figure reflects the interest earned on the loan portfolio and investment securities, offset by the interest paid on deposits and borrowings. The Net Interest Margin (NIM) for Q3 2025 expanded to 2.81%.

A significant component feeding into that NII is the interest generated by the loan book. As of September 30, 2025, total loans stood at $6.0 billion. Specifically, Commercial and Industrial (C&I) loans and commercial real estate loans are key drivers of interest income. C&I balances represented 44% of the total loan portfolio at that same date. The loan portfolio saw growth, with total loans increasing by $506 million through the first nine months of 2025.

The second major pillar is fee income, largely driven by the Wealth Management division. For Q3 2025, Wealth Management fee income totaled $15.8 million. This represented 22% of the total revenue for the quarter. Assets under management (AUM/AUA) for this division grew to $12.9 billion at September 30, 2025.

Another specific fee-based stream comes from the commercial side. Fee income on unused commercial lines of credit was $825,000 for Q3 2025. This is income generated simply for having committed credit capacity available to commercial clients, even if they don't draw on it.

Here's a quick look at the key Q3 2025 revenue figures you asked about:

The revenue generation for Peapack-Gladstone Financial Corporation (PGC) is clearly weighted toward its core banking spread, but the fee income from Wealth Management is a substantial, consistent contributor. You can see the relationship between the loan portfolio size and the NII generation.

• NII growth was 5% on a linked quarter basis (Q3 2025 vs Q2 2025).
• Wealth Management AUM/AUA grew by $1.0 billion from the end of 2024 to September 30, 2025.
• C&I loans make up 44% of the total loan portfolio.
• Unused line fees in Q3 2025 were slightly down from Q2 2025's $869,000.

Finance: draft 13-week cash view by Friday.