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 an option to issue up to an additional $20 million through the end of 2027. The preferred stock carries a 6.00% per annum dividend rate, is non-callable for the first five years, and is convertible into common stock at the holder’s option after five years. The issuance is expected to qualify as Tier 1 capital under applicable regulatory requirements.
Proceeds from the offering 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. This capital infusion comes as the company continues to expand across the New York metropolitan market, with President and CEO Douglas L. Kennedy stating that the partnership aligns with the company’s strategy and provides flexibility to execute on growth while maintaining capital levels consistent with long-standing targets.
Strategic Value Bank Partners, a long-time investor in PGC common stock, expressed strong confidence in the management team and the company’s progress in building a premier private banking and wealth management franchise. Marty Adams, Co-Founder and Principal of Strategic Value Bank Partners, noted that the investment reflects their conviction in the company’s trajectory and interest in deepening their long-term partnership.
The transaction is detailed in the company’s Current Report on Form 8-K filed with the Securities and Exchange Commission. Peapack-Gladstone Financial Corporation, the holding company for Peapack Private Bank & Trust, reported total assets of $7.5 billion and assets under management and/or administration of $13.1 billion as of December 31, 2025. The bank offers customized wealth management, investment banking, and commercial and personal banking solutions.
This capital raise underscores Peapack-Gladstone’s disciplined approach to capital management and its commitment to improving the efficiency and quality of its capital structure. The partnership with Strategic Value Bank Partners provides a long-term capital base to support the company’s growth initiatives and strategic objectives.
