Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q1 2024 Earnings Presentation
28 slides from Peapack-gladstone Financial's earnings presentation, Apr 23, 2024
Slide 1: Investor Update Q1 2024
Investor Update Q1 2024 Peapack-Gladstone Bank Peapack Private The Q1 2024 Investor Update should be read in conjunction with the Q1 2024 Earnings Release issued on April 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: Q1 Earnings Key Highlights
Balance Sheet Liquidity profile strengthened; Deposits increased $203MM in the quarter; Borrowings decreased $284MM. Total available liquidity increased $174MM on a linked quarter basis to $3.7B*. Loan-to-Deposit Ratio declined to 98%. Allowance for credit losses increased 3 basis points to 1.24% of
Slide 4: Quarterly 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. Quarterly Re
Slide 5: NYC Expansion Update
NYC Expansion Update Actions taken to date. Recruited and hired proven private banking teams Experienced leader with 10+ production and client service teams hired in 2024 Operations (Deposits, Treasury Management, Escrow), Residential Lending, Compliance, Credit, Community Development Flagship NYC o
Slide 6: Continuing to Invest & Create Value in our Private Banking Model – Q1 Update
Continuing to Invest & Create Value in our Private Banking Model – Q1 Update Continuous single point of contact emphasis and delivery Support Team Assessment - Redesigning support teams for efficiency and expediency Experienced leader with 10+ production and client service teams hired in 2024; conti
Slide 7: Credit Metrics
30-89 Days Past Due / Gross Loans (%) Credit Metrics 7 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 8: Strong Deposits, Liquidity & Capital Position
* Total available liquidity defined as Cash + Cash Equivalents + AFS Securities + Borrowing Capacity less Borrowings, Letters of Credit, and Pledged AFS Securities. ** (Cash + Cash Equivalents + AFS Securities) / Total Assets. *** Tangible equity and tangible assets are calculated by excluding the b
Slide 9: NIM Declined & Interest Rate Risk Profile Remains Neutral
9 NIM Declined & Interest Rate Risk Profile Remains Neutral NIM (as reported) (%) NIM declined by 9 basis points on a linked quarter basis to 2.20%. Margin has re-traced to levels experienced prior to the 2022 through 2023 Fed Funds Rate increases. Repositioned balance sheet from asset-sensitive to
Slide 10: Diversified Loan Portfolio
10 Multifamily Residential /Consumer CRE Commercial & Industrial Diversified Loan Portfolio Loan Mix as of 3/31/2024 Gross Loans*: $5.36 billion * Gross loans include loans held for sale. ($2,235MM) ($1,827MM) ($616MM) ($684MM)
Slide 11: Commercial Banking
Commercial Banking* 11 $2.85B Outstandings 53% of Total Loans Diversified C&I continues to be our area of focus for future growth (in millions) * Commercial banking includes CRE loans and Commercial and industrial loans. CRE excludes MFL, which totaled $1.8B as of 3/31/2024. ** 5-Year compounded ann
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 312 distinct NAICS codes.
Slide 13: A Well-Diversified Non-Owner Occupied CRE Portfolio
13 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% ($616MM) of the total loan portfolio. Office CRE represents 2% of total loans
Slide 14: Multifamily Loan Portfolio
Multifamily Loan Portfolio 14 Current LTV 61.8% Current DSCR 1.48x Current Debt Yield 9.2% Multifamily constitutes 34% ($1.8B) of the total loan portfolio.
Slide 15: Refinance Risk within Multifamily
Refinance Risk within Multifamily 6% of Loans Resetting or Maturing through 2025 15 (in millions)
Slide 16: Wealth Management AUM/AUA & Fee Income
AUM/AUA (in millions) Fees (in millions) Wealth Management AUM/AUA & Fee Income 16 $11.5B AUM/AUA 32% EBITDA Margin 2023 FY 11% Revenue CAGR* $4MM Average Relationship $236MM Q1 2024 Gross Inflows * 5-Year compounded annual growth rate calculated from December 31, 2018 through December 31, 2023. $14
Slide 17: Wealth Management New Business Inflows
$236MM 17 Wealth Management New Business Inflows AUM/AUA (in millions) $777MM $701MM $843MM $1,070MM $948MM
Slide 18: Stable Fee Revenue
Stable Fee Revenue 18 *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 29% 32% Q1 2023 $19.4MM (in millions) $14.0MM $18.6MM $14.3MM 35% Q3 2023 Q4 2023 $18.1MM $13.8MM Q2 2023 32% $13.8
Slide 19: Established Private Banking Business Model
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 20: Personal Banking Successfully Competing against Large Banks
Personal Banking Successfully Competing against Large Banks 20 *Natural Market Area defined within boundaries in map as geography within 5 miles of all branch locations. **Total Loans as of 3/31/2024. Market share data source: S&P Capital IQ Pro – June 30, 2023 FDIC Data. Deposit Market Area defined
Slide 21: Investment highlights
Attractive geographic franchise enhanced with our entry into NYC, which is expected to deliver growth, improved operating leverage, additional core liquidity, and positive earnings momentum resulting in attractive destination returns. Private banking business model anchored by a $11.5B AUM/AUA wealt
Slide 22: Appendix
Appendix Peapack-Gladstone Bank
Slide 23: Quarterly Balance Sheet & AUM/AUA Summary
23 Quarterly Balance Sheet & AUM/AUA Summary (Dollars in thousands)
Slide 24: Asset Quality
24 Asset Quality 1 Includes one freight credit totaling $22.2 million at March 31, 2024 and one freight credit totaling $23.5 million at December 31, 2023. 2 Amounts reflect modifications that are paying according to modified terms. 3 Excludes modifications included in nonaccrual loans of $3.2 milli
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 Non-GAAP Financial Measures Reconciliation
Quarterly Non-GAAP Financial Measures 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 th
Slide 27: Quarterly Non-GAAP Financial Measures Reconciliation
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 pa
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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