Peapack-Gladstone Financial Corporation (NASDAQ: PGC) announced a $50 million preferred stock commitment from affiliates of Strategic Value Bank Partners, a long-term investor in the banking sector. The commitment includes an initial $30 million private placement of non-cumulative perpetual convertible preferred stock, with the option to issue an additional $20 million through the end of 2027.
The preferred stock carries a 6.00% annual dividend rate, 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, which is not listed on any exchange, is expected to qualify as Tier 1 capital, subject to regulatory requirements.
Proceeds will be used for general corporate purposes, including organic growth, investments, acquisitions, or debt reduction. This capital raise follows significant investments in the New York metropolitan market, which have resulted in positive operating leverage and improving earnings momentum.
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. This capital raise provides flexibility to continue executing on that growth while maintaining capital levels consistent with our long-standing targets." 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. This investment reflects our confidence in the Company's trajectory."
Additional details are available in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission today. Peapack-Gladstone Financial Corporation, with total assets of $7.5 billion and assets under management of $13.1 billion as of December 31, 2025, operates through Peapack Private Bank & Trust. For more information, visit www.peapackprivate.com.
