Peapack-Gladstone Financial Corporation

Welcome to the PPAC-Gladstone Financial Corporation's second quarter 2026 earnings call. Please be advised that today's conference is being recorded. I will now hand the conference over to Matthew Remo, Treasurer and Head of Corporate Finance. Please go ahead.

Thank you, and good morning, everyone. I'm joined today by our president and CEO, Doug Kennedy, and our CFO, Frank Cavallaro, who will be providing an overview of our second quarter results. John Babcock, our president of wealth management, and Lisa Chalkin, our chief credit officer, are also here to answer any questions. If you have not yet read the earnings release and investor presentation we issued yesterday afternoon, you may access them by going to the investor relations page on our company website at tpacprivate.com. You may also access the investor presentation directly within the webcast today. After the presentation, we will be happy to take questions. Our comments today may contain forward-looking statements, which are subject to risks and uncertainties that may cause our results to differ materially from expectations. Cautionary statements about reliance on this information are included in the earnings release and investor presentation, as well as our SEC filings and other investor materials. The earnings release and presentation also include non-GAAP financial measures, so it is important to review the appropriate reconciliations and the appendices to each document. And with that, it is my pleasure to turn the call over to Doug.

Thanks, Matt, and good morning, everybody, and thank you for joining us today. On behalf of the entire team at PFAC Private, I'm really pleased to report that our strategy continues to deliver solid results. We believe that we're building a durable and valuable franchise that has significant barriers to entry, Our people, our product offering, grounded in wealth, is very rare and extremely difficult to replicate. Revenue and profitability have been positive for seven consecutive quarters, and we expect that trend to continue for the foreseeable future. We continue to be on track to deliver a 1% ROA and 10% ROE by the fourth quarter of this year, possibly slipping into the first quarter of next, which is what we communicated to all of you previously. We have entered the third quarter with a very strong new business pipeline, and we feel very positive about the future. For this past quarter, we reported that income of $15.8 million, consistent with where we had guided. This was an increase of 11% on a length quarter basis and was 99% year-over-year. Our wealth management business grew 6% year-to-date and 13% year-over-year with positive flows. Our deposits grew $231 million in the quarter, 35% of which was non-interest-bearing, and we continue to see relationships in that $2 to $2.5 million average size. Also notable is the fact that 56% of our deposit growth over the last 12 months have been in the form of non-interest-bearing accounts. Our loans are up $236 million, strong growth in CNI, equipment finance, and CRE. Multifamily was down an additional $21 million. in the quarter and $58 million year-to-date. So where are we in terms of our strategy and where we've been and where we're going? In 2023, as you know, we made some bold strategic moves. We invested heavily in building out our product offering. We lifted teams from First Republic and Signature. And to date, we've hired a total of 20 teams and nearly 200 professionals to cover the Metro New York market, which includes Westchester and Long Island. Of course, all of this hiring temporarily impacted earnings, which bottomed out in the third quarter of 2024, but we expected that. And as we modeled through where we are right now, we're a little ahead of where we thought it would be. Profits have rebounded quickly and given the level of investment. And what's really incredible is that we essentially have built a de novo bank in New York and made it profitable in under two years. So where are we headed and where are we going? The momentum that we built continues to grow. On page five of our investor deck, we share the level of non-interest-bearing DBAs that have been opened in the quarter. When you compare that to what happened a year ago earlier, that activity is up over 20% year over year. As stated, our current pipeline remains strong, and the number of positive conversations we're having in the market leads me to believe that the strength that we're seeing will continue. I should also note that the competition for deposits in the market has increased markedly, in the last quarter. And Frank will touch on that a little bit more, but we do see a little bit of headwinds in terms of pricing. We're reiterating that the net interest margin, you know, going back to the first quarter, will grow a total of six to nine basis points through the end of this year, which basically says it's going to sort of bounce around where it is. It'll have some volatility to it, but we're still committed to what we shared last quarter. From a strategic standpoint, we have everything that we need. It's really all now about dedicated, Focused Execution. So our brand, we've come a long way. We've abandoned the company. And I think about that a little bit, you know, as we go forward through the end of next year. I believe that, you know, by then we will have built a very credible private banking institution offering bespoke credit solutions that cater to affluent individuals and their families. At present, you know, we're offering life insurance premium finance. We have jumbo mortgages and HELOCs. We have investment lines of credit. We have professional lines of credit. We've done some fine arts and collectibles, and we recently began to launch aviation and yacht finance. All of this is geared towards meeting the needs of our clientele. So how we present our company externally will increasingly look and feel niche, private bank, with a focus on commercial and wealth management and the needs of high-net-worth individuals and their families. So with that, let me just summarize in saying that it's been a great strategic journey over the last couple of years and a strong quarter for us at PFAC Private. We've had lots of momentum and a clear vision and path to execute that we remain confident that we will deliver strong, durable results leading to superior shareholder value. With that, I'll hand the call over to Frank who will provide a detailed overview of the quarter's results.