Peapack-Gladstone Financial Corporation (NASDAQ: PGC) has appointed Kevin Bertscha, CPA, as Senior Vice President and Chief Audit Executive at Peapack Private Bank & Trust. The appointment strengthens the bank’s internal audit function and governance framework.

Role and responsibilities

Bertscha will lead the bank’s internal audit strategy, overseeing risk assessment, regulatory compliance, internal controls, and governance processes. His mandate supports the company’s focus on effective risk management and sustainable growth.

Professional background

Bertscha brings more than 30 years of experience in financial services and internal audit. His career includes leadership roles at major financial institutions:

• Oppenheimer & Co.: Managing Director and Deputy Audit Director, where he modernized risk assessment processes and oversaw high-risk regulatory audits for broker-dealer operations.
• Industrial and Commercial Bank of China Financial Services: Managing Director and Chief Audit Executive, responsible for enterprise risk assessments and coordinating audit activities following a significant cybersecurity incident.
• BNY Mellon: Spent over 25 years in senior positions, including Senior Audit Director for the Internal Audit Department and Global Head of Audit for Pershing.

He began his career at Bankers Trust Company in New York.

Qualifications and credentials

Bertscha holds a Bachelor of Science degree in Accounting from Rutgers University School of Business. He is a Certified Public Accountant (CPA) and holds FINRA Series 7, 24, and 63 licenses. Additionally, he possesses the Certified Fiduciary and Investment Risk Specialist (CFIRS) designation and is pursuing Certified Information Systems Auditor (CISA) certification.

Company profile

Peapack-Gladstone Financial Corporation is a New Jersey-based bank holding company. As of June 30, 2026, the company reported the following key metrics:

Peapack Private Bank & Trust provides commercial banking, wealth management, investment banking, and personalized financial solutions to individuals, families, and businesses.

Peapack Gladstone Financial (NASDAQ: PGC) reported second-quarter fiscal 2026 net income of $15.8 million, marking a 99% year-over-year increase and an 11% sequential rise. The bank’s strategy of integrating talent from failed institutions into its New York metro operations continues to yield profitability.

Financial Performance

Total revenue reached $86.1 million, up 4% sequentially and 23% year over year. Net interest income climbed to $63.9 million, supported by balance sheet expansion and disciplined loan pricing. The net interest margin expanded by 6 basis points to 3.32%, driven primarily by improved asset yields while funding costs remained stable despite a competitive deposit environment.

Non-interest income totaled $22.1 million, largely fueled by wealth management fees which grew 8% year over year to $17.2 million. Operating expenses increased less than 1% to $55.7 million, resulting in positive operating leverage where revenue growth outpaced expense growth ten-to-one. Consequently, the efficiency ratio declined to 65%, marking the seventh consecutive quarter of improvement.

Balance Sheet & Credit

Loan portfolios expanded by $236 million to $6.7 billion, with growth concentrated in commercial and industrial (C&I) lending and commercial real estate. Multifamily loans decreased by $21 million in the quarter. Deposits rose by $231 million to $7.1 billion, with 35% of the new inflows being non-interest-bearing. This mix supports a durable funding profile, keeping the loan-to-deposit ratio at approximately 95%.

Credit quality metrics showed isolated stress rather than broad deterioration. The provision for credit losses was $8.1 million, and net charge-offs were $5.9 million, concentrated in one multifamily and one commercial relationship. Nonperforming assets increased to $72.2 million (0.91% of total assets) from 0.77% in the prior quarter, primarily due to the migration of a previously disclosed multifamily relationship. The allowance for credit losses remained stable at 1.04% of total loans.

What the Numbers Show

The divergence between revenue growth and expense control highlights significant operational leverage. While revenue grew 4% sequentially, operating expenses rose less than 1%. This dynamic allowed core earnings (pre-tax income before provision) to surge 12% sequentially to $30.4 million, demonstrating that the heavy hiring investments made since 2023 are now generating disproportionate returns relative to cost increases.

Strategic Outlook

Management reaffirmed its target of achieving 1% return on assets and 10% return on equity by late 2026 or early 2027. The company drew the remaining $20 million of its convertible preferred equity commitment in July to support continued growth. CEO Doug Kennedy noted that the New York banking presence, built through hiring nearly 200 professionals, is now profitable. The bank plans to expand its niche private banking offerings, including aviation and yacht finance, catering to high-net-worth individuals.