Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q3 2024 Earnings Presentation
27 slides from Peapack-gladstone Financial's earnings presentation, Oct 22, 2024
Slide 1: Investor Update Q3 2024
Investor Update Q3 2024 Peapack-Gladstone Bank Peapack Private The Q3 2024 Investor Update should be read in conjunction with the Q3 2024 Earnings Release issued on October 22, 2024. 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: Strategic Updates and Quarterly Highlights
Strategic Updates Positioning Peapack Private as the boutique alternative to large banks in the Metropolitan NYC region. On track to rebrand to “Peapack Private Bank & Trust” on or about January 1, 2025. Our expansion into NYC has generated $734MM in core deposits, 31% noninterest-bearing. Moody’s a
Slide 4: Quarterly Financial Results
4 *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 Return on average tangible common equity is calculated by dividing tangible common equity by annualized net income. See Non-GAAP financial measures reconciliation table. (Dollars in t
Slide 5: NYC Market Expansion Results to Date
NYC Market Expansion Results to Date Investments in products, technology and enhanced processes focused on reducing client friction points and supporting our “branch light” model. 450+ Clients $734MM Total Deposits 31% Noninterest-bearing $180MM Outstanding Loans Our New York City expansion is deliv
Slide 6: Liquidity Highlights
* Core relationship deposits defined as deposit relationships that are not custodial, brokered, or listing service. ** Total available liquidity defined as Cash + Cash Equivalents + AFS Securities + Borrowing Capacity less Borrowings, Letters of Credit, and Pledged AFS Securities. *** (Cash + Cash E
Slide 7: Expanding Net Interest Margin
7 Expanding Net Interest Margin Net Interest Margin (%) NIM increased by 9 basis points on a linked quarter basis to 2.34%. Margin expansion driven by success in Metropolitan NYC expansion, which is focused on growing fully banked core relationships.
Slide 8: Wealth Management Record AUM/AUA
AUM/AUA (in millions) Fees (in millions) Wealth Management Record AUM/AUA 8 $12.1B AUM/AUA 32% EBITDA Margin 2023 FY 11% Revenue CAGR* $4.2MM Average Relationship $140MM Q3 2024 Gross Inflows * 5-Year compounded annual growth rate calculated from December 31, 2018 through December 31, 2023. $46.0MM
Slide 9: Wealth Management New Business Inflows
$547MM 9 Wealth Management New Business Inflows AUM/AUA (in millions) $777MM $701MM $843MM $1,070MM $948MM
Slide 10: Wealth Division is Driving Stable Fee Revenue
Wealth Division is Driving 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 35% Q3 2023 $19.4MM (in millions) $14.0MM 35% Q1 2024 Q2 2024 $16.4MM Q4 2023 32% $13.8M
Slide 11: Diversified Lending Business
11 Diversified Lending Business Loan Mix as of 9/30/2024 Gross Loans*: $5.3 billion * Gross loans include loans held for sale.
Slide 12: Commercial Banking
Commercial Banking* 12 $2.8B Outstanding 53% of Total Loans Diversified C&I continues to be our area of focus for future growth – strong pipelines (in millions) * Commercial banking includes CRE loans and Commercial and Industrial Loans. CRE excludes MFL, which totaled $1.8B as of 9/30/2024. ** 5-Ye
Slide 13: Diversification within C&I Lending
Diversification within C&I Lending 13 C&I Loans constitute 42% ($2.2B) of the total loan portfolio and includes 302 distinct NAICS codes.
Slide 14: Managing our CRE Concentration
Managing our CRE Concentration 14 348% CRE Concentration*; declined from 357% at the prior quarter end and 704% at peak (9/30/2015). 11.2% CRE 36-month Growth Rate, down from 16.5% at prior quarter-end (below 50% regulatory growth threshold). De Minimis $23MM Commercial Construction Portfolio. Well-
Slide 15: A Well-Diversified Non-Owner Occupied CRE Portfolio
15 A Well-Diversified Non-Owner Occupied CRE Portfolio Segments experiencing market stress are conservatively underwritten with low LTVs and solid DSCRs Non-Owner Occupied CRE constitutes 11% ($578MM) of the total loan portfolio. Office CRE represents < 2% of total loans
Slide 16: Multifamily Loan Portfolio
Multifamily Loan Portfolio 16 Current LTV 61.1% Current DSCR 1.45x Current Debt Yield 8.2% Multifamily constitutes 34% ($1.8B) of the total loan portfolio. (in millions)
Slide 17: Manageable Refinance Risk within Multifamily
Manageable Refinance Risk within Multifamily 4% of Loans Resetting or Maturing through 2025 17
Slide 18: Personal Banking Expansion into NYC
Personal Banking Expansion into NYC with Track Record of Successfully Competing against Large Banks 18 1 Natural Market Area defined within boundaries in map as geography within 5 miles of all NJ branch locations. 2 Loans as of 9/30/2024. 3 Provident Financial Services Inc. acquired Lakeland Bancorp
Slide 19: Positioning Peapack Private as the boutique alternative to large banks
Positioning Peapack Private as the boutique alternative to large banks in the Metro NYC region. Attractive geographic franchise enhanced with our entry into NYC, which is delivering growth, additional core liquidity, and a foundation for future positive operating leverage and increased shareholder v
Slide 20: Appendix
Appendix Peapack-Gladstone Bank
Slide 21: Credit Metrics
30-89 Days Past Due / Gross Loans (%) Credit Metrics 21 Classified Loans / Gross Loans (%) NPAs / Assets (%) Special Mention / Gross Loans (%)
Slide 22: Quarterly Balance Sheet & AUM/AUA Summary
22 (Dollars in thousands) Quarterly Balance Sheet & AUM/AUA Summary
Slide 23: Asset Quality
23 1 Amounts reflect modifications that are paying according to modified terms. 2 Excludes modifications included in nonaccrual loans of $3.7 million at September 30, 2024, $3.0 million at December 31, 2023 and $3.1 million at September 30, 2023. 3 Excludes a credit of $3,000 at September 30, 2024,
Slide 24: Capital Summary
24 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 25: Quarterly Income Statement Summary
25 1 Return on average tangible common equity is calculated by dividing tangible common equity by annualized net income. See Non-GAAP financial measures reconciliation table. We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in un
Slide 26: Quarterly Non-GAAP Financial Measures Reconciliation
26 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 internally assesses our performance based, in part, on these measures. However, these non-GAAP financ
Slide 27: 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 — Q3 2024 Earnings Presentation on 6ix