Peapack-Gladstone Financial Corporation (NASDAQ: PGC) and its banking subsidiary, Peapack-Gladstone Bank, have received confirmation of their investment grade ratings from Moody’s Investors Service. The confirmation comes after a comprehensive review that was initiated in June of this year.
Moody’s has affirmed the Baa3 long-term local currency issuer rating for Peapack-Gladstone Financial Corporation and the baa2 baseline credit assessment (BCA) for Peapack-Gladstone Bank. Additionally, the outlook on the long-term issuer rating of the company and the long-term deposits and issuer ratings of the bank have been changed to ‘stable’ from ‘ratings under review’.
This rating confirmation is significant as it reflects the financial strength and stability of both the holding company and its banking subsidiary. Moody’s decision was based on an extensive review of the business fundamentals and financial conditions of both entities, as well as the terms and conditions surrounding issuer and deposit ratings.
In its assessment, Moody’s highlighted several key factors that contributed to the confirmation of the investment grade ratings. The agency noted that Peapack-Gladstone Financial Corporation has maintained a sustained solid capital position, which serves as a crucial buffer against potential risks. Furthermore, recent improvements in the company’s funding and liquidity profile were deemed adequate to mitigate the bank’s risk profile.
One particularly noteworthy aspect of Moody’s evaluation was the recognition of Peapack-Gladstone’s successful efforts to strengthen its funding and liquidity profile over the past year. The agency emphasized that the overall funding structure remains a credit strength, with the deposit base demonstrating resilience during the regional banking crisis of 2023. This resilience underscores the bank’s ability to maintain stability even in challenging market conditions.
Douglas L. Kennedy, President and CEO of Peapack-Gladstone Financial Corporation, expressed satisfaction with the rating confirmation, stating, ‘It is gratifying to receive this confirmation as it is a true indicator of the strength of our current strategy and business model.’ This sentiment reflects the company’s confidence in its strategic direction and operational execution.
The confirmation of investment grade ratings by Moody’s is particularly important in the current economic climate, where investors and depositors are increasingly scrutinizing the financial health of banking institutions. These ratings provide assurance to stakeholders about the company’s creditworthiness and financial stability.
It’s worth noting that Peapack-Gladstone Financial Corporation also holds an investment grade credit rating from Kroll Bond Rating Agency (KBRA), which affirmed the ratings for both the company and the bank in May 2024. This dual recognition from prominent rating agencies further strengthens the company’s financial credibility.
As of June 30, 2024, Peapack-Gladstone Financial Corporation reported total assets of $6.51 billion and assets under management and/or administration of $11.5 billion. The company, founded in 1921, operates through its commercial bank, Peapack-Gladstone Bank, and its wealth management division, Peapack Private. These entities offer a range of financial services, including customized wealth management, investment banking, and commercial and retail solutions.
Investors and clients can find more information about Peapack-Gladstone Financial Corporation and its services on the company’s websites at www.pgbank.com and www.peapackprivate.com. The full Moody’s report is available for viewing at moodys.com for those seeking additional details on the rating confirmation.
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