Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q2 2022 Earnings Presentation
26 slides from Peapack-gladstone Financial's earnings presentation, Jul 29, 2022
Slide 1: Investor Update Q2 2022
Investor Update Q2 2022 Peapack-Gladstone Bank Peapack Private Wealth Management The Q2 2022 Investor Update should be read in conjunction with the Q2 2022 Earnings Release issued on July 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: Q2 2022 Highlights
EPS $1.08; ROA 1.30%; ROE 15.43%; ROTE* 17.00%. Net interest margin up 14 bps linked quarter. Efficiency Ratio 53%. Positioned positively for additional rate hikes – 25% of loans reprice within 1 month, 37% within 3 months, and 47% within 1 year. C&I loan/lease balances comprise 40% of total loans a
Slide 4: Q2 2022 Financial Results Summary
4 +41% YOY & 2% Linked Qtr *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 Q1 2022 Adjusted excluded loss on sale of securities due to a balance sheet reposition strategy ($6.6MM), Q2 2021 Adjusted excluded a benefit of life insuranc
Slide 5: Year-to-Date 2022 Financial Results Summary
5 +43% YOY *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 YTD 2022 Adjusted excluded loss on sale of securities due to a balance sheet reposition strategy ($6.6MM), YTD 2021 Adjusted excluded a benefit of life insurance proceeds ($1
Slide 6: Fee Income Has Remained Resilient
Fee Income Has Remained Resilient 6 *Capital Markets consists of Corporate Advisory, Mortgage Banking, SBA Lending, and Back-to-Back Swap fee income. 1 YTD 2021 Adjusted excluded a benefit of life insurance proceeds ($153,000), gain on loans held for sale at lower of cost or fair value ($1.4MM), inc
Slide 7: Peapack Private Wealth Management
AUM/AUA (000s) Fees (000s) Peapack Private Wealth Management 7 $9.5B AUMs/AUAs 42% EBITDA Margin YTD 2022 23% 2017-2021 CAGR $4.0MM Avg Relationship $556MM YTD 2022 Gross Inflows $28.7MM 6-mos Revenue
Slide 8: Peapack Private Wealth Management New Business Inflows
8 Peapack Private Wealth Management New Business Inflows AUM/AUA (000s)
Slide 9: YTD Loan Growth: 7%
9 YTD Loan Growth: 7% *Excludes $210MM of undrawn lines of credit. $4,844MM $851MM* ($410MM) ($116MM) $5,169MM 12/31/2021 Total Loan Balance 06/30/2022 Total Loan Balance Other Accelerated Prepayments & Net LOC Draws Contractual Repayments Funding on New Facilities Loan Growth
Slide 10: Commercial Banking
Commercial Banking* (Total construction exposure <1%) 10 $2.7B Outstandings 52% of Total Loans $5.5MM SBA Fees YTD $1.6MM Corp Advisory Fee Income YTD (in millions) $1,585 *NOTE: Excludes MFL which totaled $1.9B as of 6/30/2022. $2,100 $2,474 $2,658 $2,537 $2,697 $2.6MM in Annual Account Analysis Fe
Slide 11: Asset Sensitivity Continues to Expand
NIM (as reported) (%) 11 Asset Sensitivity Continues to Expand Net Interest Margin Net Interest Income expected to benefit 3% in Year 1 and 8% in Year 2 from a +200 bps rate increase (conservatively assumes 45% deposit beta). 25% of loans reprice within 1 month, 37% within 3 months, and 47% within 1
Slide 12: Solid Credit Quality
NPAs / Assets (%) ALLL (ACL) / Non-Performing Loans (%) 30-89 Days Past Due / Gross Loans (%) Solid Credit Quality 12 Classified Loans / Gross Loans (%)
Slide 13: Personal Banking
Personal Banking* 13 $270MM average deposits per branch New York City MSA with branches in 3 of top 15 wealthiest US counties #1 Deposit Growth in Top 10 15% CAGR since 2012 90% Core Unique private banking service model Growth Upside 6% market share in a $90B deposit market *Natural Market Area defi
Slide 14: PGC's Comparative Valuation to Wealth Management Peers
14 PGC’s Comparative Valuation to Wealth Management Peers Note: Pricing data as of 07/20/2022; TBV as reported for the period ended 03/31/2022 and not pro forma for pending acquisitions. Wealth Management Institutions: UVSP – Univest Financial Corp., CATC – Cambridge Bancorp, WSFS – WSFS Financial C
Slide 15: Wealth Management Peer Comparables
15 Wealth Management Peer Comparables Note: Core earnings exclude nonrecurring operating incomes & expenses such as losses on securities sales, restructuring expenses, severance expenses, and merger-related expenses Source: S&P Global Market Intelligence Financials at and for the Balance Sheet 2022Q
Slide 16: PGC Valuation: Sum-of-the-Parts Analysis
PGC Valuation: Sum-of-the-Parts Analysis (implied bank value trading at 63% TBV) 16 Assuming M&A EBITDA multiples of 12-15x for established and growing wealth management firms indicates substantial embedded value in Peapack Private Wealth Management (PPWM):
Slide 17: Investment highlights
Current TBV multiple lags wealth management peers providing potential share price appreciation. $9.5B AUM/AUA ($57MM annualized revenue) wealth management business provides a differentiated business model with significant barriers to entry. Over time, this will deliver superior shareholder value. We
Slide 18: Appendix
Appendix Peapack-Gladstone Bank
Slide 19: Quarterly Income Statement Summary
Quarterly Income Statement Summary (Dollars in thousands, except per share data) 19 1 Q1 2022 Adjusted excluded loss on sale of securities due to a balance sheet reposition strategy ($6.6MM), Q2 2021 Adjusted excluded a benefit of life insurance proceeds ($153,000), gain on sale of PPP loans ($1.1MM
Slide 20: YTD Income Statement Summary
YTD Income Statement Summary (Dollars in thousands, except per share data) 20 1 YTD 2022 Adjusted excluded loss on sale of securities due to a balance sheet reposition strategy ($6.6MM), YTD 2021 Adjusted excluded a benefit of life insurance proceeds($153,000), gain on loans held for sale at lower o
Slide 21: Quarterly Balance Sheet Summary
Quarterly Balance Sheet Summary (Dollars in thousands) 21 1 As of 3/31/2022 reduction of investments due to sale of $125MM of securities as part of balance sheet repositioning strategy. 2 As of 03/31/2022 other assets included $120MM due from FHLB related to securities sales. The $120MM received on
Slide 22: Asset Quality
Asset Quality 22 1 Amounts reflect TDRs that are paying according to restructured terms. 2 Excludes TDRs included in nonaccrual loans in the following amounts: $13.5MM at 06/30/2022; $13.6MM at 03/31/2022; $1.1MM at 12/31/2021; $4.0MM at 09/30/2021; and $3.9MM at 06/30/2021. 3 Includes $6.9MM for on
Slide 23: Capital Summary
Capital Summary 23 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 24: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 24 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 25: YTD Non-GAAP Financial Measures Reconciliation
YTD Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 25 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 internal
Slide 26: 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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