| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 33.89 | 7 |
| Intrinsic value (DCF) | 26.06 | -18 |
| Graham-Dodd Method | 38.59 | 22 |
| Graham Formula | 29.12 | -8 |
Peapack-Gladstone Financial Corporation (NASDAQ: PGC) is a leading regional bank holding company operating through its subsidiary, Peapack-Gladstone Bank, primarily serving New Jersey with private banking and wealth management solutions. Founded in 1921 and headquartered in Bedminster, NJ, the company specializes in commercial and consumer lending, treasury management, and trust services, catering to businesses, non-profits, and high-net-worth individuals. PGC operates through two key segments: Banking (offering deposit accounts, commercial/residential loans, and asset-based financing) and Peapack Private (providing wealth management, tax advisory, and fiduciary services). With a strong presence in affluent New Jersey markets like Princeton and Morristown, PGC leverages its regional expertise to deliver personalized financial solutions. The bank’s focus on relationship-driven private banking and integrated wealth management differentiates it in the competitive Northeast U.S. financial services landscape. As of 2024, PGC manages $391 million in cash reserves and $476 million in market capitalization, reflecting its stability in the regional banking sector.
Peapack-Gladstone Financial offers a niche investment opportunity with its dual focus on private banking and wealth management in high-income New Jersey markets. The company’s $224 million revenue and $32.9 million net income (2024) demonstrate steady profitability, supported by a diversified loan portfolio and low beta (0.87), suggesting lower volatility than broader markets. However, risks include exposure to regional economic conditions and competitive pressure from larger banks. The modest dividend yield (0.2/share) may appeal to income-focused investors, but growth depends on expanding wealth management services and maintaining asset quality in a rising-rate environment. Capital expenditures ($8.1 million) indicate ongoing investments in digital banking and branch efficiency, which could enhance margins long-term.
PGC’s competitive advantage lies in its hyper-localized private banking model and integrated wealth management services, which foster deep client relationships in affluent New Jersey communities. Unlike national banks, PGC’s smaller scale allows for tailored solutions, particularly in commercial real estate and multifamily lending—a strength given New Jersey’s dense urban corridors. The Peapack Private segment differentiates through comprehensive trust and tax advisory services, often a gap for regional competitors. However, PGC faces stiff competition from larger regional players with greater capital reserves (e.g., Valley National Bancorp) and fintech-driven wealth platforms. Its $476 million market cap limits economies of scale in technology investments, though its 20 ATM locations and digital services aim to offset this. The bank’s loan portfolio (notably $178 million in debt) is concentrated in NJ’s commercial real estate, posing sector-specific risks. Strategic focus on high-margin advisory services and C&I lending could mitigate margin pressures from rising deposit costs.