KBRA has affirmed the senior unsecured debt rating of BBB, the subordinated debt rating of BBB-, and the short-term debt rating of K3 for Bedminster, New Jersey based Peapack-Gladstone Financial Corp. Additionally, KBRA has affirmed the deposit and senior unsecured debt ratings of BBB+, the subordinated debt rating of BBB and the short-term deposit and debt ratings of K2 for its subsidiary, Peapack Private Bank & Trust. The Outlook for all long-term ratings is Stable.

Peapack’s ratings are supported by the successful execution of its strategic transformation over the past several years, particularly the significant enhancement in its funding profile. Through team lift-outs and expansion into metro NYC, the company has meaningfully increased low-cost deposit relationships, notably NIB balances, while reducing reliance on wholesale funding. As it currently stands, the company’s deposit costs have moved more in line with peers, declining to ~2.0% in 1Q26 from levels that were more than 60 bps higher in 2024. Moreover, Peapack has been one of the few banks to meaningfully improve its deposit mix during this period, with NIB deposits increasing to 23% of total deposits from 19% two years ago. Management expects this proportion to continue gradually rising toward 25% over the next several years. The improvement in deposit mix and funding costs is particularly notable given the company’s presence in the highly competitive New York metro market, KBRA said.