Message to Shareholders

2025 was a year of steady progress and real momentum for our Company.

We strengthened our balance sheet. We improved earnings power. And we continued our evolution into a premier private banking and wealth management firm serving clients across New Jersey and metro New York. Most importantly, we proved that our strategy works — deep, advice-driven relationships combined with a scaled wealth platform and a high-touch service culture can win market share while building a more durable, resilient earnings base.

A Year of Measurable Progress

For the full year 2025, we generated net income of $37 million, or $2.10 per diluted share, and total revenue of $283 million. These results reflect continued improvement in both earnings and operating leverage.

Our growth was intentional and relationship-lead.

Total deposits increased to $6.6 billion at year-end, up 8% year over year. Core relationship deposits grew by $828 million, and importantly, noninterest-bearing deposits increased by $316 million — a 28% increase. This will strengthen the durability of our earnings, reduce reliance on higher-cost funding, and position us to compete effectively across various interest-rate environments.

Total loans grew to $6.3 billion, up 13% year over year. Commercial & Industrial lending remains a cornerstone of our strategy, representing 44% of total loans at year-end. We continue to emphasize disciplined growth in areas where we have expertise and long-standing client relationships.

From a shareholder perspective, tangible book value per share increased 10% to $34.99. We also ended the year with capital levels well above regulatory "well-capitalized" standards, giving us flexibility to invest in growth while remaining resilient through different economic cycles.

Translating Strategy into Growth in Metro New York

Our expansion into metro New York continues to translate strategy into tangible results.

To date, our buildout has generated more than 925 new relationships, $1.9 billion in deposits (31% noninterest-bearing), and $1.3 billion in loans, including commitments. In 2025, we established regional offices in New York City, Westchester, and Long Island, expanding our presence in a market that values high-touch, advice-based private banking.

The opening of our flagship financial center at 300 Park Avenue in New York City during the first quarter of 2025 was about more than just adding a new location. It was a statement about our brand, our ambition, and our commitment to serving clients at the highest level.

Wealth Management: A Powerful Differentiator

Our wealth management platform remains one of our greatest strengths.

Assets Under Management/Assets Under Administration (AUM/AUA) increased to $13.1 billion at year-end, up $1.2 billion from 2024. Gross new business inflows totaled $1.0 billion for the year. Wealth management generated $63 million in fee income in 2025, providing meaningful recurring revenue that adds stability to our overall earnings profile. I believe this will drive shareholder value.

Equally important is the depth of our client relationships. Our average wealth relationship size is $4.6 million — a reflection of our focus on high-net-worth and ultra-high-net-worth clients who value integrated advisory solutions. Our ability to combine private banking, wealth management, and specialty commercial capabilities under one coordinated model is a significant differentiator for us.

Disciplined Credit Management

We continue to operate in a complex credit environment, and we are addressing it directly and transparently.

During the year, nonperforming assets declined to $68 million, or 0.91% of total assets, down from $100 million at the end of the prior year. This improvement reflects our active remediation efforts.

At the same time, we have been candid about elevated credit costs tied to specific borrowers. We have taken deliberate steps to strengthen reserves and address problem credits proactively. Our allowance for credit losses stood at 1.14% of total loans at year-end, providing an important layer of protection as we continue to resolve remaining exposures.

Our priority is clear: protect capital, maintain liquidity, and preserve long-term shareholder value.

Culture Matters

High-touch private banking cannot be delivered without exceptional people.

In 2025, Peapack Private Bank & Trust was again recognized by American Banker as one of the “Best Banks to Work For”—our eighth consecutive year receiving this honor. In addition, Crain's New York Business named us one of the “Best Places to Work in NYC” for the second year in a row. These recognitions reflect the culture we have built—one focused on professionalism, accountability, collaboration, and putting clients first.

Board Leadership Transitions

Strong governance is essential as we move into our next phase of growth.

Effective January 1, 2026, we welcomed two outstanding new Directors: Diane D'Erasmo and Ellen Walsh. Diane brings extensive global banking leadership experience, including her time as Vice Chairman of HSBC Bank USA. Ellen is a retired Partner at PricewaterhouseCoopers LLP and brings deep expertise in finance and governance. Their perspectives will be invaluable as we continue to evolve.

We also extend our sincere gratitude to Patrick J. Mullen, Philip W. Smith III, and Beth Welsh, who retired from the Board at the end of 2025. Their years of service and principled oversight helped shape our Company's direction. We thank them for their steady leadership throughout their tenure as members of our Board.

Our Priorities for 2026

As we enter 2026, our strategy remains clear: build a premier private banking platform centered on relationship depth, supported by scaled wealth management and specialty commercial expertise.

Our five priorities for the year ahead reflect that focus.

1. Using Technology and AI to Scale "High-Touch" Service

We will continue investing in intelligent automation and digital capabilities to reduce friction, compress cycle times, and free our teams to focus on high-value client interactions.

Our goal is simple: make our digital experience as responsive and intuitive as our in-person service. We also plan to enhance payment capabilities, including faster payment infrastructure, to support treasury clients and commercial operating accounts more effectively.

Innovation must always be paired with strong governance. As we expand our use of AI and digital tools, we will do so responsibly, with disciplined oversight and robust risk controls.

2. Completing the Shift to Private Banking Financial Centers

Client expectations are evolving. Routine transactions are increasingly digital; complex decisions demand consultative advice.

In 2026, we will complete our migration from traditional retail branches to Private Banking Financial Centers. This transition supports deeper advisory conversations, stronger relationship coordination, and improved productivity, while maintaining the personalized experience that defines Peapack Private.

3. Expanding Wealth Management More Broadly Throughout Greater New York

With $13.1 billion in AUM/AUA and strong inflow momentum, we have achieved scale and credibility to compete in the New York market.

In 2026, we will intensify our focus on expanding wealth relationships across New York, recruiting and developing talent where it enhances coverage, and strengthening centers-of-influence partnerships with attorneys, accountants, and advisory professionals.

Trust-based referrals remain one of the most powerful growth drivers for a boutique franchise like ours.

4. Strengthening Our Professional Services Platform

Professional firms — including law firms, accounting firms, and advisory businesses — have distinct banking needs that require speed, discretion, and expertise.

We will continue building specialized capabilities tailored to these firms, including capital solutions, treasury management, escrow services, and fraud protection. Our objective is to be the bank that understands how these firms operate and can respond at the pace of their commitments.

5. Sharpening Our Brand and Marketing Strategy

As our footprint and capabilities grow, our brand clarity must grow with it.

In 2026, we will refine our marketing approach to more clearly articulate what makes Peapack Private distinctive: consultative private banking supported by meaningful wealth and fiduciary capabilities, unified under one brand.

Our promise remains simple and powerful: All Banking Should Be Private Banking.™

Looking Ahead

We enter 2026 well positioned for continued success with a strong liquidity position, substantial contingent funding capacity, and disciplined capital management.

I want to thank our colleagues for their professionalism and dedication to our clients. I thank our Board — including our newest Directors — for its guidance, and I again thank those who recently completed their service. Most importantly, I thank you, our shareholders, for your continued trust and support.

Our objective remains straightforward: build a premier private banking and wealth management firm that delivers long-term shareholder value — one relationship at a time.

Sincerely,

Douglas L. Kennedy President and Chief Executive Officer