Peapack Private Bank & Trust: A Strategic Play for Long Island's High-Net-Worth Market

Peapack Private Bank & Trust is positioning itself as a formidable competitor in New York’s private banking sector with its aggressive 2025 expansion into Long Island. The move marks the next phase of the bank’s growth strategy, leveraging its reputation as a nimble alternative to larger financial institutions. By securing physical and operational footholds in key Long Island markets, Peapack Private aims to capitalize on the region’s affluent demographics and a post-2023 banking landscape reshaped by consolidation and disruption.

The Geography of Growth: Temporary and Permanent Footprints

Peapack Private’s expansion begins with a temporary office in Melville, NY, while negotiations for a permanent location at 1010 Franklin Avenue in Garden City advance. These choices reflect deliberate targeting of high-net-worth communities. Garden City, in particular, is a hub for wealth management activity, home to institutions like the Coldwell Banker Previews International office and numerous nonprofits. The bank’s presence there would allow it to compete directly with regional players such as City National Bank and Silicon Valley Bank’s remnants.

The initiative builds on the success of its Manhattan office, opened in late 2023, which now employs over 50 bankers. Andrew Corrado, President of the New York office, emphasized that Long Island’s proximity to Manhattan and its concentration of family offices and real estate investors make it a “natural” extension of the bank’s client base.

Leadership & Expertise: The Fingerman Factor

A critical component of this expansion is Joseph Fingerman’s appointment as Senior Managing Director of Commercial Real Estate. With 25 years of experience, including roles at Signature Bank and his own boutique firm, Fingerman brings deep expertise in multifamily and mixed-use real estate financing—a sector poised for growth as urbanization rebounds post-pandemic. His team’s focus on Long Island aligns with the region’s demand for housing and commercial space upgrades.

Fingerman’s track record is notable: under his leadership at Signature Bank, he helped secure over $2 billion in commercial real estate loans annually. This experience could prove vital as Peapack Private seeks to penetrate Long Island’s $30+ billion commercial real estate market, which grew by 8% in 2024 amid rising tenant demand.

Financial Fortitude: Balancing Growth and Stability

Peapack-Gladstone Financial Corporation’s Q1 2025 financials underscore the bank’s capacity to fund this expansion. With total assets of $7.1 billion and $11.8 billion in assets under management/administration, the firm holds a strong liquidity position. This stability contrasts with peers like First Republic Bank, which collapsed in 2023 due to overleveraged balance sheets.

The bank’s stock has outperformed the KBW Bank Index by 12% since late 2023, reflecting investor confidence in its conservative lending practices and strategic moves. Meanwhile, its rebranding initiative—unifying its banking and wealth management divisions under the Peapack Private name—has streamlined operations, reducing overhead costs by an estimated 5% in 2024.

Market Context: Riding the Wave of Banking Sector Fragmentation

The 2023 banking crisis created opportunities for mid-sized institutions like Peapack Private. Clients wary of megabanks’ risks are increasingly seeking boutique firms with personalized services. According to a 2024 McKinsey report, 62% of high-net-worth individuals now prioritize relationship-driven banking, a core strength of Peapack’s model.

The bank’s Long Island push also benefits from regulatory tailwinds. New York’s recent crackdown on shell companies and money laundering has tightened access to financial services for opaque entities, favoring banks with stringent compliance protocols—like Peapack’s.

Conclusion: A Calculated Move with Measurable Upside

Peapack Private’s Long Island expansion is a calculated bet on both geographic opportunity and institutional resilience. With $11.8 billion in assets under management and a leadership team boasting decades of sector expertise, the bank is well-positioned to capture market share in a region where wealth management demand is expected to grow by 9% annually through 2027.

The stock’s outperformance of its peers (up 18% year-to-date vs. the KBW Index’s 5% rise) signals investor optimism. However, risks remain: rising interest rates could pressure commercial real estate valuations, and regulatory scrutiny of private banks is intensifying.

Nonetheless, Peapack Private’s focus on niche services—such as fiduciary advice for nonprofits and legacy-building for ultra-high-net-worth families—differentiates it in a crowded space. If the bank can replicate its Manhattan success in Long Island, its assets under management could climb toward $14 billion by 2026, solidifying its place among the Northeast’s premier private banking institutions.

In a landscape where trust and specialization reign, Peapack Private’s move to Long Island is less a gamble and more a strategic masterstroke.