Peapack-Gladstone Financial Corporation, the holding company for Peapack Private Bank & Trust, has announced a $50 million preferred stock commitment from affiliates of Strategic Value Bank Partners. 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 of preferred stock 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 thereafter may be redeemed subject to applicable terms. The preferred stock is convertible to common stock at the option of the holder after five years, subject to applicable terms. The issuance is not listed on any securities exchange and is expected to qualify as Tier 1 capital, subject to applicable regulatory requirements.
Proceeds will be used for general corporate purposes, which may include supporting organic growth, investments at the holding-company or bank level, acquisitions or other business combinations, and the reduction or refinancing of existing debt. Additional details regarding the transaction, including the terms of the preferred stock and related agreements, are included in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission, available at https://www.sec.gov/.
Douglas L. Kennedy, President and CEO, noted that the partnership with Strategic Value Bank Partners aligns with the company's strategy. Over the past two years, significant investments have been made in expansion across the New York metropolitan market, with 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 long-standing targets. It reflects a disciplined approach to capital management, including actions taken to improve the efficiency and quality of the capital structure.
Marty Adams, Co-Founder and Principal of Strategic Value Bank Partners, added that the firm has been a long-time investor in PGC common stock and is excited to support the company's continued growth. There is 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 confidence in the company's trajectory and interest in deepening the long-term partnership.
For business and technology leaders, this transaction demonstrates how established financial institutions are securing strategic capital to fuel expansion in competitive markets. The structure of the preferred stock offering—with its convertible features and Tier 1 capital qualification—showcases sophisticated financial engineering that balances investor returns with regulatory compliance. The commitment from a sector-focused investor like Strategic Value Bank Partners signals confidence in Peapack-Gladstone's growth trajectory and operational execution, particularly in the wealth management segment where technology integration and client-centric services are increasingly critical.
The capital infusion provides Peapack-Gladstone with resources to potentially accelerate technology investments, enhance digital banking platforms, and expand wealth management solutions—all areas where AI and advanced analytics are transforming client service delivery. As financial institutions navigate evolving regulatory landscapes and competitive pressures, such strategic partnerships and capital raises enable continued innovation while maintaining stability. The transaction also highlights the ongoing importance of private capital in supporting mid-sized banks' growth initiatives, particularly in high-value markets like New York where technology-driven service differentiation is essential for attracting and retaining affluent clients.
