Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q1 2022 Earnings Presentation
22 slides from Peapack-gladstone Financial's earnings presentation, Apr 29, 2022
Slide 1: Investor Update Q1 2022
Investor Update Q1 2022 Peapack-Gladstone Bank Peapack Private Wealth Management The Q1 2022 Investor Update should be read in conjunction with the Q1 2022 Earnings Release issued on April 29, 2022. 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: Q1 2022 Highlights
Adjusted*: EPS $1.02; ROA 1.25%; ROE 14.19%; ROTE 15.58%. Net interest margin up 23 bps linked quarter. Positioned positively for additional rate hikes – 38% of loans reprice within 3 months and 50% within 1 year. Loans increased $305MM or 6.3% during the quarter. Growth partially funded through a b
Slide 4: Strong Revenue and Profitability Momentum
4 +45% YOY & 10% Linked Qtr *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. Q1 2022 Adjusted excluded loss on sale of securities due to a balance sheet reposition strategy ($6.6MM), Q4 2021 Adjusted excluded loss on sale of loans ($265
Slide 5: Quarterly Fee Income Improvement Driven by Peapack Private Wealth Management and Capital Markets Activity
Quarterly Fee Income Improvement Driven by Peapack Private Wealth Management and Capital Markets Activity 5 *Capital Markets consists of Corporate Advisory, Mortgage Banking, SBA Lending, and Back-to-Back Swap fee income. Q1 2022 excluded loss on sale of securities due to a balance sheet reposition
Slide 6: Peapack Private Wealth Management At A Glance
AUM/AUA (000s) Fees (000s) Peapack Private Wealth Management At A Glance 6 $10.7B AUMs/AUAs 38% EBITDA Margin 2021 23% Revenue 4-yr CAGR $4.2MM Avg Relationship $350MM Q1 2022 Gross Inflows $14.8MM Q1 2022 Revenue
Slide 7: Peapack Private Wealth Management Organic Growth and Market Action Continue to Drive Better Margins
7 Peapack Private Wealth Management Organic Growth and Market Action Continue to Drive Better Margins AUM/AUA (000s)
Slide 8: Q1 Loan Growth: 6%
8 Q1 Loan Growth: 6% *Excludes $37MM of undrawn lines of credit. $4,844MM $508MM* ($121MM) ($82MM) $5,149MM 12/31/2021 Total Loan Balance 03/31/2022 Total Loan Balance Other Accelerated Prepayments & Net LOC Draws Contractual Repayments Funding on New Facilities Total Loan Growth
Slide 9: Commercial Banking At A Glance
Commercial Banking At A Glance (Excludes MFL and PPP)* 9 $2.7B Outstandings <1% Construction Exposure $2.8MM SBA Fees Q1 52.5% of Total Loans $1.6MM Corp Advisory Fee Income Q1 (in millions) $1,585 13.4% 4-yr CAGR *NOTE: Excludes MFL and PPP. MFL totaled $1.9B and PPP totaled $10MM as of 03/31/2022.
Slide 10: Balance Sheet Repositioning Strategy Benefits Future NIM 4 bps
10 Balance Sheet Repositioning Strategy Benefits Future NIM 4 bps ACTIONS: Grew multifamily loans $250MM. MFL more resilient from a credit perspective, particularly in an inflationary environment. Sold $125MM of securities, estimated yield of 1.50%, and duration of 4 years, pretax loss of $6.6MM ($4
Slide 11: Net Interest Margin Continued to Improve and Expected to Expand with Rising Rates
NIM (as reported) (%) 11 Net Interest Margin Continued to Improve and Expected to Expand with Rising Rates 1-Month Libor @ Period End 0.111% 0.101% 0.080% 0.101% 0.452% Net Interest Income expected to benefit 2% in Year 1 and 8.5% in Year 2 from a +200 bps rate increase (assumes 45% deposit beta). 3
Slide 12: Commercial Banking Central to Core Deposit Growth
Commercial Banking Central to Core Deposit Growth 12 Full suite of digital and Treasury Mgmt solutions 15 BPS Core Deposit Cost “White Glove” Platinum Service Teams $269MM Avg Deposits Per Branch $2.6MM in annual account analysis fees Core Deposits as a % of Total Deposits 12/31/2019 79% Increase of
Slide 13: PGC's Valuation vs. Wealth Management Peers Indicates Significant Upside Share Price Potential
13 PGC’s Valuation vs. Wealth Management Peers Indicates Significant Upside Share Price Potential Note: Pricing data as of 04/19/2022; TBV as reported for the period ended 12/31/2021 and not pro forma for pending acquisitions. Wealth Management Institutions: UVSP – Univest Financial Corp., CATC – Ca
Slide 14: PGC Valuation: Sum-of-the-Parts Analysis Indicates Significant Upside Share Price Potential
PGC Valuation: Sum-of-the-Parts Analysis Indicates Significant Upside Share Price Potential 14 Assuming M&A EBITDA multiples of 12-15x for established and growing wealth management firms indicates substantial embedded value in PGC’s wealth business (AUMs/AUAs over $10B):
Slide 15: Investment Highlights
Current TBV multiple lags wealth management peers providing potential share price appreciation. $10.7B AUM/AUA ($59MM annualized revenue) wealth management business with significant value. Wealth management, commercial banking and capital markets activities provide diverse and stable revenue streams
Slide 16: Appendix
Appendix Peapack-Gladstone Bank
Slide 17: Quarterly Income Statement Summary
Quarterly Income Statement Summary (Dollars in thousands, except per share data) 17 Q1 2022 Adjusted excluded loss on sale of securities of $6.6MM due to a balance sheet reposition strategy. Q4 2021 Adjusted excluded loss on sale of loans of $265K. See Non-GAAP financial measures reconciliation tabl
Slide 18: Quarterly Balance Sheet Summary
Quarterly Balance Sheet Summary (Dollars in thousands) 18 As of 3/31/2022 reduction of investments due to sale of $125MM of securities as part of balance sheet repositioning strategy. Included PPP loans of $10MM at 03/31/2022, $14MM at 12/31/2021 and $196MM at 12/31/2020. As of 03/31/2022 other asse
Slide 19: Asset Quality
Asset Quality 19 1. Amounts reflect TDRs that are paying according to restructured terms. 2. Amount excludes $13.6MM at 03/31/2022, $1.1MM at 12/31/2021, $4.0MM at 12/31/2020, and $25.8MM at 12/31/2019 of TDRs included in nonaccrual loans. 3. Includes $6.9MM for one leasing credit due to a loan serv
Slide 20: Capital Summary
Capital Summary 20 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 asse
Slide 21: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 21 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 22: 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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