Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q2 2021 Earnings Presentation
32 slides from Peapack-gladstone Financial's earnings presentation, Jul 28, 2021
Slide 1: Q2 2021 Investor Update (and Supplemental Financial Information)
Q2 2021 Investor Update (and Supplemental Financial Information) 06/30/2021 Peapack-Gladstone Bank The Q2 2021 Investor Update (and Supplemental Financial Information) should be read in conjunction with the Q2 2021 Earnings Release issued on July 28, 2021. Exhibit 99.1
Slide 2: Statement Regarding Forward-Looking Information
Statement Regarding Forward-Looking Information This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and may include expressions about Management’s strategies and Management’s expect
Slide 3: Compelling Investment Considerations
$9.8B wealth management business with significant enterprise value. (July 1 acquisition brings total to $10.3B.) Wealth management, commercial banking and capital markets activities provide a diverse revenue stream. Total fee income 35% of total revenue for the six months ended June 30, 2021. Well-p
Slide 4: Strong Q2 Financial Performance
Strong Q2 Financial Performance 4 * Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 The June 2021 adjusted quarter includes a benefit of $153 thousand income from life insurance proceeds. 1 The June 2021 adjusted quarter Includes $1.1
Slide 5: Quarterly Accomplishments
Peapack Private Wealth Management: AUM/AUA grew to a record $9.8B at 6/30/2021. Fee Income increased to $13MM. Acquired Princeton Portfolio Strategies Group on 07/01/2021 with AUM/AUA of $520MM. Commercial Banking and Balance Sheet Management: Loans, excluding PPP loans, grew by $300MM, 28% annualiz
Slide 6: Current Valuation Implies Upside Opportunity
Current Valuation Implies Upside Opportunity 6 *Tangible book value at March 31, 2021 is $25.16. See Non-GAAP financial measures reconciliation table. Pricing as of close of business July 19, 2021. Source: S&P Global Market Intelligence Wealth peers include: Tompkins Financial Corporation, Univest F
Slide 7: Peapack Private Wealth Management Snapshot
Largest NJ-headquartered, bank-owned trust company. 5 acquisitions and 2 lift-outs with total AUMs of $2.95B since 2015. Acquisition of Princeton Portfolio Strategies Group ($520MM) completed 7/1/2021. 2,500+ relationships. Average relationship size $3.5MM. “Sweet Spot” is HNW individuals with $2MM
Slide 8: Peapack Private Wealth Management Client Centric Model
Client facing employees with advanced degrees / professional certifications: Peapack Private Wealth Management Client Centric Model 25 CFPs 23 MBAs 8 CPAs 7 CTFAs 6 CFAs 5 JDs 8
Slide 9: Peapack Private Wealth Management Consistent Asset & Revenue Growth
AUM/AUA (000s) Fees (000s) Peapack Private Wealth Management Consistent Asset & Revenue Growth Q2 2021 AUM/AUA at 06/30/21 were a record $9.8B. Total AUM/AUA inflows were $242MM for Q2 2021. Wealth fees totaled $13MM for Q2 2021 reflecting an increase of $3MM (30%) vs Q2 2020. Wealth fee revenue com
Slide 10: Strong Wealth Management Fees Drive Noninterest Income
Strong Wealth Management Fees Drive Noninterest Income 10 * Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. $13.0 MM $12.6 MM $17.7 MM Total Noninterest Income as a % of Total Revenue: 31% 28% 34% Q2 2019 Q2 2020 Q2 2021
Slide 11: Net Interest Margin Continued to Expand
NIM (as reported) (%) 11 Net Interest Margin Continued to Expand Margin continued to improve. Expect continued margin improvement going forward based on the following: Full realization of Q2 loan growth and current robust pipeline. Continued repricing of CDs. Redemption of $50MM in sub-debt. Termina
Slide 12: Favorable Trends in Core Deposit Growth and Cost
12 Favorable Trends in Core Deposit Growth and Cost Increase of $950MM in core deposits ($430MM of non-interest bearing) since 12/31/2019 Core Deposits as a % of Total Deposits 88% 79% 12/31/2019 6/30/2021 $3,350 $4,300 0.16% 0.86% Core deposits include noninterest bearing demand, interest-bearing c
Slide 13: Strong Quarterly New Loan Fundings
13 $4,580 MM ($98) MM $478 MM Strong Quarterly New Loan Fundings ($111) MM $4,440 MM $22 MM ($151) MM Weighted Avg. Coupon Rate: 3.38%
Slide 14: Balance Sheet Uniquely Positioned for Rising Rate Environment
14 Balance Sheet Uniquely Positioned for Rising Rate Environment As of 06/30/2021 Net Interest Income Year 1 Impact (%) Note: Based on a 12- and 24-month simulation. Although the simulation provides an indication of our interest rate exposure at a particular point in time, such measurements are not
Slide 15: Successful Transformation to a Commercial Bank
Note: Gross loans include loans held for sale. 15 MFL 31% CRE 15% C&I 41% Resi/Cons 13% Resi /Cons 54% C&I 10% CRE 22% MFL 14% Loan Mix As of June 30, 2021 Loan Mix As of December 31, 2012 Gross Loans: $1.2B Gross Loans: $4.6B Commercial & Industrial CRE Multifamily Resi/Consumer Resi /Cons 19% C&I
Slide 16: Outstanding Credit Quality
NPAs / Assets (%)* ALLL / Non-Performing Loans (%)* 30-89 Days Past Due / Gross Loans (%) Outstanding Credit Quality 16 *Excludes restructured loans of $5.6MM HFS at 06/30/2021. NOTE: Less than 1% of loans currently on deferral. Classified Loans / Gross Loans (%)*
Slide 17: Overall Reserve Coverage Remains Strong
17 Overall Reserve Coverage Remains Strong $63.5 MM $67.5 MM ($3.2) MM $3.9 MM $2.7 MM 1.52% 1.39% Total ALLL Coverage % ($7.4) MM
Slide 18: Strong Capital and Liquidity Profile
Strong Capital and Liquidity Profile 18 1 Substantially all of the Bank's loans and securities are pledged for back up liquidity purposes. 2 Excludes securities, the majority of which are pledged against secured funding.
Slide 19: Priorities
Grow and expand our three primary drivers of profitability: Wealth Management, Commercial Banking, and Capital Markets businesses. Maintain loan and deposit pricing discipline to protect and grow net interest margin. Continue to execute on our stock repurchase program. Generate fee income at 35% - 4
Slide 20: Appendix
Appendix Peapack-Gladstone Bank
Slide 21: Franchise Overview
Financial Highlights 1 Branch Map Franchise Overview 21 Private Banking Offices Bedminster, NJ Morristown, NJ Princeton, NJ Teaneck, NJ Bonita Springs, FL Red Bank, NJ New Providence, NJ Summit, NJ We Operate in 3 of the Top 10 Wealthiest Counties in the United States 2 1 Financial data as of 06/30/
Slide 22: Vision
A high-performing boutique bank, leaders in wealth, lending and deposit solutions, known nationally for our unparalleled client service, integrity and trust. Professionalism Clients First Compete to Win Invested in Our Community One Team Vision 22 Senior Private Bankers lead a team-based approach. P
Slide 23: Strategy and Business Lines Overview
Emphasis on commercial banking with private bankers focused on providing high-touch client service through an advice-based approach encompassing commercial and industrial (C&I) lending, wealth management, depository services, electronic banking, other commercial real estate lending, and corporate ad
Slide 24: Quarterly Income Statement Summary
Quarterly Income Statement Summary (Dollars in thousands, except per share data) 24
Slide 25: Year-To-Date Income Statement Summary
Year-To-Date Income Statement Summary (Dollars in thousands, except per share data) 25
Slide 26: Quarterly Balance Sheet Summary
Quarterly Balance Sheet Summary (Dollars in thousands) 26 1 Includes PPP loans of $84MM at 06/30/2021, $233MM at 03/31/2021, $196MM at 12/31/2020, and $547MM at 06/30/2020.
Slide 27: Asset Quality
Asset Quality 27 1 Excludes: one commercial loan held for sale of $5.6MM at 06/30/2021; $5.6MM at 03/31/2021; residential and commercial loans held for sale of $8.5MM at 12/31/2020. 2 Amounts reflect TDRs that are paying according to restructured terms. 3 Amount does not include $3.9MM at 06/30/2021
Slide 28: Capital Summary
Capital Summary 28 1 PPP loans with a balance of $84MM, $233MM, $196MM, and $547MM increased total assets at 06/30/2021, 03/31/2021, 12/31/2020, and 06/30/2020, respectively. Equity to total assets would be 9.43%, 9.11%, 9.26%, and 8.86% if PPP loans were excluded from total assets at 06/30/2021, 03
Slide 29: Capital Stress Testing
29 Quarterly Capital Stress Testing run under multiple scenarios based on Loan Risk Ratings. In the 03/31/2021 severely adverse case, no growth scenario, the Bank remains well capitalized over a two-year stress period. Severely adverse case major assumptions: GDP growth -5.5% Unemployment 10.8% Decl
Slide 30: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 30 We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. Our management inte
Slide 31: Year-To-Date Non-GAAP Financial Measures Reconciliation
Year-To-Date Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 31 We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial position, results and ratios. Our management
Slide 32: Contacts
Peapack-Gladstone Financial Corporation 500 Hills Drive, Suite 300 P.O. Box 700 Bedminster, New Jersey 07921 (908) 234-0700 www.pgbank.com Douglas L. Kennedy President & Chief Executive Officer (908) 719-6554 dkennedy@pgbank.com Jeffrey J. Carfora Senior EVP & Chief Financial Officer (908) 719-4308
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