Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q2 2023 Earnings Presentation
30 slides from Peapack-gladstone Financial's earnings presentation, Jul 25, 2023
Slide 1: Investor Update Q2 2023
Investor Update Q2 2023 Peapack-Gladstone Bank Peapack Private Wealth Management The Q2 2023 Investor Update should be read in conjunction with the Q2 2023 Earnings Release issued on July 25, 2023. 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: Q2 2023 Highlights
Core EPS $0.81; ROA 0.92%; ROE 10.53%; ROTE 11.49%.* NIM down 39 bps on a linked quarter basis, primarily driven by a decline in noninterest bearing deposits. Cycle to date deposit beta 41%. Deposit levels flat for the year (down 2% in Q2). Total available liquidity** of $3.6B. Loans grew $148MM for
Slide 4: Financial Results Summary
4 *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 Q2 2023 Adjusted excluded fair value adjustment loss for CRA equity securities ($209,000); Q1 2023 Adjusted excluded fair value adjustment gain for CRA equity securities ($209,000). S
Slide 5: Expansion to New York City: A Compelling Opportunity
Available for Sale 84% Natural Expansion Rare market disruption results in a private banking business model void in NYC. Existing high performing client centric culture. Prime midtown location identified. High Caliber Talent Hired 17 private banking professionals from First Republic, Signature, Vall
Slide 6: NYC Expansion Compliments a Wide Body of Strategic Work
Available for Sale 84% NYC Expansion Compliments a Wide Body of Strategic Work
Slide 7: Successfully Migrated from a Community Bank to a Private Bank
1 Fiduciary revenue: Last Twelve Months (Gross income from services rendered by the institutions trust department or by any of its consolidated subsidiaries acting in any fiduciary capacity). 2 Total revenue: Last Twelve Months (Total Revenue = Net Interest Income (Pre-Provision) + Total Noninterest
Slide 8: Peapack Private Wealth Management
AUM/AUA (000s) Fees (000s) Peapack Private Wealth Management 8 $10.7B AUM/AUA 37% EBITDA Margin YTD 2022 18.7% 2017-2022 CAGR $3.7MM Avg Relationship $274MM Q2 2023 Gross Inflows YTD 2023 $28.0MM
Slide 9: Peapack Private Wealth Management New Business Inflows
9 Peapack Private Wealth Management New Business Inflows AUM/AUA (000s) $777MM $701MM $843MM $1,070MM $528MM
Slide 10: Stable Fee Revenue
Stable Fee Revenue 10 *Capital Markets consists of Corporate Advisory, Mortgage Banking, SBA Lending, and Back-to-Back Swap fee income. Total Noninterest Income as a % of Total Revenue 26% 32% Q3 2022 $16.4MM $18.6MM In 000’s $14.3MM $12.9MM $18.1MM $13.8MM 29% Q1 2023 Q2 2023 $16.8MM $13.0MM Q4 202
Slide 11: Stable Trends in Liquidity and Capital
*(Cash + Cash Equivalents + AFS Securities + Borrowing Capacity less Borrowings, Letters of Credit, and Pledged AFS Securities) / Total Assets. **See Non-GAAP financial measures reconciliation table. Stable Trends in Liquidity and Capital
Slide 12: Significant Capital Buffer
* The amount of capital the Company holds above the well-capitalized levels as defined in the FDIC's Prompt Corrective Action framework. ** After-tax difference between cost-basis and fair value of HTM securities. Significant Capital Buffer Available for Sale 84% Held to Maturity 16% Investment Port
Slide 13: Ample Coverage of Uninsured Deposits
*Source: FFIEC 031 and 041 RC-0 Memo #2 ** Coverage is defined as (Cash + Cash Equivalents + AFS Securities + Borrowing Capacity less Borrowings, Letters of Credit, and Pledged AFS Securities) / Uninsured Deposits Ample Coverage of Uninsured Deposits Deposit Base Details (as of June 30, 2023) 24% Un
Slide 14: Minimal Refinance Risk within Multifamily, Office & Retail CRE
14 (in 000’s) Minimal Refinance Risk within Multifamily, Office & Retail CRE Note: Based on Call Report data.
Slide 15: Our Current High-Risk CRE Exposure to Softening Market Conditions
15 Our Current High-Risk CRE Exposure* to Softening Market Conditions GREEN “Very Low Risk” LTV: 62.3% YELLOW “Moderate Risk” LTV: 59.4% RED “High Risk” LTV: 61.4% GREEN YELLOW RED TOTAL Multifamily $1,691 $193 $0 $1,884 Retail $166 $37 $18 $221 Office $16 $88 $5 $109 TOTAL $1,873 $318 $23 $2,214 (I
Slide 16: Commercial Banking
Commercial Banking 16 $2.9B Outstandings 53% of Total Loans Diversified C&I continues to be our area of focus for future growth $1.7MM Unused LOC Fees YTD (in millions) $1,585 *NOTE: CRE excludes MFL for each period presented. $2,100 $2,474 $2,658 $2,537 $2,839 $1.4MM Account Analysis Fees YTD 45% o
Slide 17: Diversified Loan Portfolio
17 Multifamily Residential /Consumer CRE Commercial & Industrial Diversified Loan Portfolio Loan Mix as of 06/30/2023 Gross Loans: $5.45 billion Note: Gross loans include loans held for sale. ($2,278MM) ($1,884MM) ($625MM) ($662MM)
Slide 18: Diversification within C&I Lending
Diversification within C&I Lending 18 C&I Loans constitute 42% ($2.3B) of the total loan portfolio and includes 277 distinct NAICS codes.
Slide 19: A Well-Diversified Non-Owner Occupied CRE Portfolio
19 A Well-Diversified Non-Owner Occupied CRE Portfolio Segments experiencing market stress are conservatively underwritten with low LTVs and solid DSCR Non-Owner Occupied CRE constitutes 11% ($625MM) of the total loan portfolio. LTV 51.1% DSCR 1.51x LTV 57.5% DSCR 1.54x LTV 52.4% DSCR 1.63x LTV 50.6
Slide 20: Multifamily Loan Portfolio
Multifamily Loan Portfolio 20 Multifamily Portfolio Balance % (in $MM's) NY (Rent Regulated) $917 48.7% NY (Market Rent) $101 5.3% NJ (Rent Regulated) $360 19.1% NJ (Market Rent) $241 12.8% PA (Rent Regulated) $10 0.6% PA (Market Rent) $255 13.5% TOTAL $1,884 100.0% Rent Regulated $1,288 68.4% Marke
Slide 21: Credit Metrics
NPAs / Assets (%) ALLL (ACL) / Non-Performing Loans (%) 1 30-89 Days Past Due / Gross Loans (%) Credit Metrics 21 Classified Loans / Gross Loans (%) 1 Commencing on 01/01/2022, the allowance calculation is based on the CECL methodology. Prior to 01/01/2022, the calculation was based on the incurred
Slide 22: Personal Banking
Personal Banking* 22 $326MM average deposits per personal banking location** New York City MSA with branches in 3 of top 15 wealthiest US counties #1 Deposit Growth in Top 10 14% CAGR since 2012 91% Core Unique private banking service model Growth Upside 6% market share in an $89B deposit market *Na
Slide 23: Compelling Investment Considerations
Stable and diversified funding base. Proven private bank business model with significant barriers to entry. $10.7B AUM/AUA ($57MM annualized revenue) wealth management business. Well-positioned to capitalize on next generation wealth transfer. High performing commercial lending platform that include
Slide 24: Appendix
Appendix Peapack-Gladstone Bank
Slide 25: Quarterly Balance Sheet Summary
25 Quarterly Balance Sheet Summary (Dollars in thousands)
Slide 26: Amounts reflect modifications that are paying according to modified terms. 2 Excludes modifications included
26 1 Amounts reflect modifications that are paying according to modified terms. 2 Excludes modifications included in nonaccrual loans of $777,000 at June 30, 2023. 3 Amounts reflect troubled debt restructurings (“TDRs”) that are paying according to restructured terms. 4 Excludes TDRs included in non
Slide 27: Capital Summary
27 1 Tangible equity and tangible assets are calculated by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. Tangible equity as a percentage of tangible assets at period end is calculated by dividing tangible equity by tangible assets at period end.
Slide 28: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation 28 1 Q2 2023 Adjusted excluded fair value adjustment loss for CRA equity securities ($209,000); Q1 2023 Adjusted excluded fair value adjustment gain for CRA equity securities ($209,000); Q2 2022 Adjusted excluded fair value adjustment loss for CRA e
Slide 29: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 29 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 30: 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 Frank A. Cavallaro Senior EVP & Chief Financial Officer (908) 306-8933
Peapack-Gladstone Financial — Q2 2023 Earnings Presentation on 6ix