Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q2 2024 Earnings Presentation
28 slides from Peapack-gladstone Financial's earnings presentation, Jul 23, 2024
Slide 1: Investor Update Q2 2024
Investor Update Q2 2024 Peapack-Gladstone Bank Peapack Private The Q2 2024 Investor Update should be read in conjunction with the Q2 2024 Earnings Release issued on July 23, 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: Performance Highlights
Balance Sheet Liquidity profile strengthened for a second straight quarter. Core relationship deposits* increased $354MM in Q2 (annualized rate of 33%); up $524MM YTD (annualized rate of 26%). Noninterest-bearing deposits increased $35MM in Q2 (annualized rate of 15%); stable YTD. Strong deposit pip
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
Slide 5: 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 6: Net Interest Margin Stabilized; Q2 Showed Modest Expansion
6 Net Interest Margin Stabilized Q2 Showed Modest Expansion NIM (as reported) (%) NIM increased by 5 basis points on a linked quarter basis to 2.25%. Margin has re-traced to levels experienced prior to the 2022 through 2023 Fed Funds Rate increases.
Slide 7: Wealth Management Record AUM/AUA & Fee Income
AUM/AUA (in millions) Fees (in millions) Wealth Management Record AUM/AUA & Fee Income 7 $11.5B AUM/AUA 32% EBITDA Margin 2023 FY 11% Revenue CAGR* $4MM Average Relationship $171MM Q2 2024 Gross Inflows * 5-Year compounded annual growth rate calculated from December 31, 2018 through December 31, 202
Slide 8: Wealth Management New Business Inflows
$407MM 8 Wealth Management New Business Inflows AUM/AUA (in millions) $777MM $701MM $843MM $1,070MM $948MM
Slide 9: Wealth Division is Driving Stable Fee Revenue
Wealth Division is Driving Stable Fee Revenue 9 *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 32% 35% Q2 2023 $19.4MM (in millions) $14.0MM $18.6MM $14.3MM 32% Q4 2023 Q1 2024 $16.4MM
Slide 10: Diversified Lending Business
10 Diversified Lending Business Loan Mix as of 6/30/2024 Gross Loans*: $5.3 billion * Gross loans include loans held for sale.
Slide 11: Commercial Banking
Commercial Banking* 11 $2.8B Outstandings 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 6/30/2024. ** 5-Y
Slide 12: Diversification within C&I Lending
Diversification within C&I Lending 12 C&I Loans constitute 42% ($2.2B) of the total loan portfolio and includes 313 distinct NAICS codes.
Slide 13: Reducing our CRE Concentration
Reducing our CRE Concentration 13 357% CRE Concentration*; declined from 367% at the prior quarter end and 704% at peak (9/30/2015). 16.5% CRE 36-month Growth Rate (below 50% regulatory growth threshold). De Minimis $22MM Commercial Construction Portfolio. Well-diversified NOO CRE portfolio. Deep Un
Slide 14: A Well-Diversified Non-Owner Occupied CRE Portfolio
14 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% ($601MM) of the total loan portfolio. Office CRE represents 2% of total loans
Slide 15: Multifamily Loan Portfolio
Multifamily Loan Portfolio 15 Current LTV 61.2% Current DSCR 1.46x Current Debt Yield 9.2% Multifamily constitutes 34% ($1.8B) of the total loan portfolio.
Slide 16: New York Rent Regulated Multifamily Portfolio
New York Rent Regulated Multifamily Portfolio Substantial majority (82%) of loans are refinancings. 66% of loans are to long-standing building owners. Buildings are close to public transportation: 77% of outstanding loans are located within 0.2 miles of public transportation. No interest only loans
Slide 17: Manageable Refinance Risk within Multifamily
Manageable Refinance Risk within Multifamily 5% of Loans Resetting or Maturing through 2025 17 10 Multifamily loans have experienced a rate reset or matured through the first half of 2024. One refinanced at another financial institution and the remainder continue making payments at higher market rat
Slide 18: Personal Banking Expansion into NYC
Personal Banking Expansion into NYC with Track Record of Successfully Competing against Large Banks 18 *Natural Market Area defined within boundaries in map as geography within 5 miles of all branch locations. **Total Loans as of 6/30/2024. Market share data source: S&P Capital IQ Pro – June 30, 202
Slide 19: Strong Capital Position
* Tangible equity and tangible assets are calculated by excluding the balance of intangible assets from shareholders’ equity and total assets, respectively. Tangible equity ratio as a percentage of tangible assets at period end is calculated by dividing tangible equity by tangible assets at period e
Slide 20: Investment highlights summary
Attractive geographic franchise enhanced with our entry into NYC, which is delivering growth, improved operating leverage, additional core liquidity, and positive earnings momentum. Early results on NYC expansion are in line with expectations and momentum is strong. Delivering single point of contac
Slide 21: Appendix
Appendix Peapack-Gladstone Bank
Slide 22: Credit Metrics
30-89 Days Past Due / Gross Loans (%) Credit Metrics 22 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 loss methodology. Total Allowance1 / Gross Loans (%) NPAs
Slide 23: Quarterly Balance Sheet & AUM/AUA Summary
23 (Dollars in thousands) Quarterly Balance Sheet & AUM/AUA Summary
Slide 24: Allowance and credit footnotes
24 1 Amounts reflect modifications that are paying according to modified terms. 2 Excludes modifications included in nonaccrual loans of $3.2 million at June 30, 2024 and $3.0 million at December 31, 2023 and $777,000 at June 30, 2023. 3 Excludes a provision of $10,000 at June 30, 2024, a credit of
Slide 25: Capital Summary
25 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 26: Quarterly Income Statement Summary and Non-GAAP Reconciliation
26 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 27: Quarterly Non-GAAP Financial Measures Reconciliation
27 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 28: 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
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