What the changes say
- AI and machine-learning risks now cover model errors, data security, evolving regulation, vendors, talent and reputational harm.
What changed since the prior 10-K
New
- NewRisks Related to Economic Matters
Our earnings are impacted by general business and economic conditions
Broad economic, interest-rate, inflation, tariff, policy, supply-chain, market and real-estate changes could reduce earnings and profitability.
- NewRisks Relating to Regulatory Matters
We face a risk of non-compliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations
Deficient Bank Secrecy Act, anti-money-laundering, OFAC or Foreign Corrupt Practices Act controls could trigger fines, restrictions and enforcement.
- NewRisks Related to Capital
Our business strategy includes significant investment in growth plans, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively
Expansion into metropolitan New York and other markets requires personnel and systems; failed or poorly managed growth could hurt results.
- NewRisks Related to Competition
do, which could decrease the deposits that we attract or require us to increase our rates to retain existing deposits or attract new deposits
Non-bank financial-service competitors may offer better terms without equivalent regulation, pressuring deposits, margins, market share and earnings.
- NewRisks Related to Technology
Our reliance on and integration of artificial intelligence (“AI”) and machine learning (“ML”) technologies expose us to various risks, including operational, data, regulatory, and reputational risks, which could materially affect our business and financial results
AI and machine-learning errors, bias, hallucinations or failures in credit, fraud, service and investment applications could cause losses and compliance problems.
- NewRisks Related to Technology
Data Security and Privacy: AI systems process sensitive customer data. Security breaches or unauthorized access to these systems could result in data theft, loss of intellectual property, and significant penalties, damaging customer trust
AI creates data-security, privacy, regulatory, talent and third-party vendor risks, including digital-redlining liability and operational disruption.
- NewRisks Related to Technology
Reputational and Ethical Risk: Misuse of AI, biased outcomes, or privacy violations can harm our brand, erode customer confidence, and attract negative public attention, potentially affecting demand for our services
AI misuse, biased outcomes or privacy violations could damage reputation, customer confidence, demand and financial performance.
- NewRisks Related to Our Common Stock
Our stock price can fluctuate in response to a variety of factors, some of which are not under our control. The factors that
Stock-price declines could result from banking sentiment, performance, tariffs, regulation, markets, investor expectations, equity issuance and economic conditions.
Dropped
- DroppedRisks Relating to Regulatory Matters
Additionally, Congress and the administration through executive orders controls fiscal policy through decisions on taxation and expenditures. Depending on industries and markets involved, changes to tax law and increase or reduced public expenditures could affect us directly or the business operations of our customers
- DroppedRisks Related to Operational Matters
fines, penalties or intervention, reputational damage, reimbursement or other costs, and/or additional compliance costs, any of which could materially adversely affect our results of operations or financial condition
Reworded
- 63% rewrittenRisks Related to Economic Matters
Inflation can have an adverse impact on our business and on our customers
Adds that inflation stayed above the Federal Reserve’s 2.0% target after moderating in late 2024 and early 2025.
- 58% rewrittenRisks Related to Operational Matters
Cyber-attacks and information security breaches could compromise our information or result in the data of our customers being improperly divulged, which could expose us to liability and losses
No substantive change; the cyberattack and information-security breach risk is substantially unchanged.
- 54% rewrittenRisks Related to Competition
Competition from other financial institutions in originating loans and attracting deposits may adversely affect our profitability
Adds that competitors may offer higher deposit interest rates, increasing funding costs to retain or attract deposits.
- 44% rewrittenRisks Related to Interest Rates
Changes in the estimated fair value of debt securities may reduce stockholders’ equity and net income
Updates the debt-securities portfolio to $870.1 million, including $774.2 million available-for-sale, from $886.2 million and $784.5 million.
- 34% rewrittenRisks Related to Lending Matters
Our concentrations of loans in certain industries could have adverse effects on credit quality
Office-building loans increased to $166.0 million, or 2.7%, and retail loans to $289.5 million, or 4.6%, from 2024.
- 33% rewrittenRisks Related to Operational Matters
We are dependent on key personnel and the loss of one or more of those key personnel may materially and adversely affect our prospects
Adds that recruiting personnel with the required strategic skills can be lengthy, alongside existing attraction and retention concerns.
- 32% rewrittenRisks Relating to Regulatory Matters
The fiscal, monetary and regulatory policies of the federal government and its agencies could adversely affect the Company’s business, financial condition, and results of operations
No substantive change; Federal Reserve tools and their effect on funding costs, investment returns and net interest margin remain the same.
- 30% rewrittenRisks Related to Interest Rates
Our net income depends primarily upon our net interest income, which is the difference between interest income earned on loans, investments and other interest-earning assets and the interest expense incurred on deposits and borrowed funds
Adds renewed yield-curve inversion as a specific threat and emphasizes shorter liability maturities and fixed repricing periods.
- 26% rewrittenRisks Related to Interest Rates
The soundness of other financial institutions could adversely affect us
- 25% rewrittenRisks Related to Lending Matters
We are subject to environmental liability risk associated with our lending activities
- 20% rewrittenRisks Related to Operational Matters
Our board of directors relies on management and outside consultants in overseeing cybersecurity risk management
All 42 risk factors
Headings as the filing states them, in filing order.
Risks Related to Economic Matters
- 01Our earnings are impacted by general business and economic conditionsnew
- 02We are more sensitive to adverse changes in the local economy than our more geographically diversified competitors
- 03Inflation can have an adverse impact on our business and on our customers63% rewritten
- 04Interruption of our customer's supply chains and federal funding could negatively impact their business and operations and impact their ability to repay their loans
Risks Related to Lending Matters
- 05Our exposure to credit risk could adversely affect our earnings and financial condition
- 06Our concentrations of loans in certain industries could have adverse effects on credit quality34% rewritten
- 07The performance of our New York multifamily real estate loans could be adversely impacted by regulation
- 08If our allowance for credit losses is not sufficient to cover actual loan losses, our earnings would decrease
- 09Our commercial real estate loan and commercial C&I portfolios expose us to greater risks than other mortgage loans
- 10The level of the commercial real estate loan portfolio may subject the Bank to additional regulatory scrutiny
- 11We are subject to environmental liability risk associated with our lending activities25% rewritten
Risks Related to Interest Rates
- 12Changes in interest rates may adversely affect our earnings and financial condition
- 13Our net income depends primarily upon our net interest income, which is the difference between interest income earned on loans, investments and other interest-earning assets and the interest expense incurred on deposits and borrowed funds30% rewritten
- 14Changes in the estimated fair value of debt securities may reduce stockholders’ equity and net income44% rewritten
- 15We are exposed to the risks of public health issues, natural disasters, severe weather, acts of war or terrorism, government shutdowns, geopolitical events and other potential external events
- 16The soundness of other financial institutions could adversely affect us26% rewritten
Risks Relating to Regulatory Matters
- 17Government regulation significantly affects our business
- 18The fiscal, monetary and regulatory policies of the federal government and its agencies could adversely affect the Company’s business, financial condition, and results of operations32% rewritten
- 19We face a risk of non-compliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulationsnew
Risks Related to Capital
- 20We may need to raise additional capital in the future, which may not be available when needed or available on acceptable terms
- 21Our business strategy includes significant investment in growth plans, and our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectivelynew
- 22We are subject to certain capital requirements, which may adversely impact our return on equity, require us to raise additional capital, or constrain us from paying dividends or repurchasing shares
- 23Potential acquisitions may disrupt our business and dilute shareholder value
- 24Losing key employees and customers or a reduction in our stock price as a result of an acquisition that is poorly received
- 25Our ability to pay dividends to our common shareholders is limited by law
Risks Related to Liquidity
- 26We may lose lower-cost funding sources, which may affect our profitability
- 27A lack of liquidity could adversely affect the Company’s financial condition and results of operations
Risks Related to Competition
- 28Competition from other financial institutions in originating loans and attracting deposits may adversely affect our profitability54% rewritten
- 29do, which could decrease the deposits that we attract or require us to increase our rates to retain existing deposits or attract new depositsnew
Risks Related to Operational Matters
- 30Cyber-attacks and information security breaches could compromise our information or result in the data of our customers being improperly divulged, which could expose us to liability and losses58% rewritten
- 31Our information technology systems and the systems of third parties upon which we rely may experience a failure, interruption or breach in security that could negatively affect our operations and reputation
- 32Our failure to successfully keep pace with technological changes could have a material adverse impact on our business and, in turn, our financial condition and results of operations
- 33Our board of directors relies on management and outside consultants in overseeing cybersecurity risk management20% rewritten
- 34We are subject to operational risk
- 35We are dependent on key personnel and the loss of one or more of those key personnel may materially and adversely affect our prospects33% rewritten
Risks Related to Our Wealth Management Business
- 36Revenues and profitability from our wealth management business may be adversely affected by any reduction in assets under management, which could reduce fees earned
- 37We may not be able to attract and retain wealth management clients
- 38The wealth management industry is subject to extensive regulation, supervision and examination by regulators, and any enforcement action or adverse changes in the laws or regulations governing our business could decrease our revenues and profitability
Risks Related to Technology
- 39Our reliance on and integration of artificial intelligence (“AI”) and machine learning (“ML”) technologies expose us to various risks, including operational, data, regulatory, and reputational risks, which could materially affect our business and financial resultsnew
- 40Data Security and Privacy: AI systems process sensitive customer data. Security breaches or unauthorized access to these systems could result in data theft, loss of intellectual property, and significant penalties, damaging customer trustnew
- 41Reputational and Ethical Risk: Misuse of AI, biased outcomes, or privacy violations can harm our brand, erode customer confidence, and attract negative public attention, potentially affecting demand for our servicesnew
Risks Related to Our Common Stock
- 42Our stock price can fluctuate in response to a variety of factors, some of which are not under our control. The factors thatnew
Other Peapack Gladstone Financial 10-Ks
- 2025 10-K risk factors
36 risks. Credit exposure centers on New Jersey, Pennsylvania, New York City, commercial real estate, and New York multifamily lending.
Filed Mar 12, 2025
About this page
Item 1A of the 10-K on EDGAR was split into its risk factors and, where the company's previous 10-K is on file, each heading was matched to last year's and the text compared word for word. The headings are the filing's own. The one-line readings and the overview were written by a language model from the text of the new, dropped, and rewritten risks; they refer to risks by position and cannot misquote a heading.