Peapack-Gladstone Financial Corporation (NASDAQ: PGC) announced a $50 million preferred stock commitment from affiliates of Strategic Value Bank Partners, a long-term investor focused on the banking sector. The commitment includes an initial $30 million private placement of non-cumulative perpetual convertible preferred stock, with the ability to issue up to an additional $20 million through the end of 2027.
The preferred stock carries a dividend rate of 6.00% per annum, is non-callable for the first five years, and may be redeemed thereafter. It is convertible to common stock at the holder's option after five years. The issuance is not listed on any securities exchange and is expected to qualify as Tier 1 capital, subject to regulatory requirements.
Proceeds from the investment will be used for general corporate purposes, including supporting organic growth, investments at the holding-company or bank level, acquisitions or other business combinations, and reduction or refinancing of existing debt.
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.”
The transaction underscores Peapack-Gladstone's strategic focus on expanding its footprint in the New York metropolitan area, leveraging its private banking and wealth management capabilities. The partnership with Strategic Value Bank Partners provides not only capital but also a long-term, aligned investor committed to the company's growth trajectory.
Additional details regarding the transaction are available in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission, accessible at www.sec.gov. Peapack-Gladstone Financial Corporation, through its subsidiary Peapack Private Bank & Trust, offers a range of banking, wealth management, and investment solutions. As of December 31, 2025, the company reported total assets of $7.5 billion and assets under management and/or administration of $13.1 billion.
