Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q3 2023 Earnings Presentation
30 slides from Peapack-gladstone Financial's earnings presentation, Oct 25, 2023
Slide 1: Investor Update Q3 2023
Investor Update Q3 2023 Peapack-Gladstone Bank Peapack Private The Q3 2023 Investor Update should be read in conjunction with the Q3 2023 Earnings Release issued on October 24, 2023. 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
Earnings NIM declined 21 bps on a linked quarter basis; cycle to date deposit beta 44%. Total fee income grew 4% on a linked quarter basis (17% annualized); representing 35% of total revenue. Adjusted operating expenses up 4% on a linked quarter basis (largely driven by NYC expansion). Provision exp
Slide 4: Net Interest Margin Contraction
4 NIM (as reported) (%) Net Interest Margin Contraction
Slide 5: *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee
5 *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 Q3 2023 Adjusted excluded fair value adjustment loss for CRA equity securities ($404,000); Q2 2023 Adjusted excluded fair value adjustment gain for CRA equity securities ($209,000); Q
Slide 6: Stable YTD Trends in Liquidity and Capital
*(Cash + Cash Equivalents + AFS Securities) / Total Assets. **See Non-GAAP financial measures reconciliation table. Stable YTD Trends in Liquidity and Capital Deposit Base Resilience
Slide 7: Significant Capital Buffer
* The amount of capital the Company holds above the well-capitalized levels as defined in the FDIC's Prompt Corrective Action framework. ** After-tax difference between cost-basis and fair value of HTM securities. Significant Capital Buffer Available for Sale 84% Held to Maturity 16% Investment Port
Slide 8: Ample Liquidity
* Source: FFIEC 031 and 041 RC-0 Memo #2 + Government deposits insured through collateralization. ** Coverage is defined as (Cash + Cash Equivalents + AFS Securities + Borrowing Capacity less Borrowings, Letters of Credit, and Pledged AFS Securities) / Uninsured/Uncollateralized Deposits. Ample Liqu
Slide 9: Credit Metrics
NPAs1 / Assets (%) 30-89 Days Past Due / Gross Loans (%) Credit Metrics 9 Classified Loans / Gross Loans (%) 1 NPAs exclude $1.6MM in held for sale at 09/30/2023. Includes two freight credits totaling $33.4MM. 2 Commencing on 01/01/2022, the allowance calculation is based on the CECL methodology. Pr
Slide 10: Stable Fee Revenue
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 26% 35% Q4 2022 $16.8MM $19.4MM In 000’s $14.0MM $18.6MM $14.3MM 32% Q2 2023 Q3 2023 $18.1MM $13.8MM Q1 2023 29% $1
Slide 11: Wealth Management
AUM/AUA (000s) Fees (000s) Wealth Management 11 $10.4B AUM/AUA 37% EBITDA Margin YTD 2022 18.7% 2017-2022 CAGR $3.6MM Avg Relationship $160MM Q3 2023 Gross Inflows YTD 2023 $42.0MM
Slide 12: Wealth Management New Business Inflows
12 Wealth Management New Business Inflows AUM/AUA (000s) $777MM $701MM $843MM $1,070MM $688MM
Slide 13: Continued Business Model Evolution to a Private Bank
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 14: Diversified Loan Portfolio
14 Multifamily Residential /Consumer CRE Commercial & Industrial Diversified Loan Portfolio Loan Mix as of 09/30/2023 Gross Loans: $5.49 billion Note: Gross loans include loans held for sale. ($2,322MM) ($1,872MM) ($622MM) ($677MM)
Slide 15: Commercial Banking
Commercial Banking 15 $2.9B Outstandings 54% of Total Loans Diversified C&I continues to be our area of focus for future growth $2.5MM Unused LOC Fees YTD (in millions) $1,585 *NOTE: Commercial banking includes CRE loans and Commercial and industrial loans. CRE excludes MFL, which totaled $1.9B as o
Slide 16: Diversification within C&I Lending
Diversification within C&I Lending 16 C&I Loans constitute 42% ($2.3B) of the total loan portfolio and includes 288 distinct NAICS codes. Freight represents < 2% of total loans
Slide 17: A Well-Diversified Non-Owner Occupied CRE Portfolio
17 A Well-Diversified Non-Owner Occupied CRE Portfolio Segments experiencing market stress are conservatively underwritten with low LTVs and solid DSCR Non-Owner Occupied CRE constitutes 11% ($622MM) of the total loan portfolio. LTV 51.1% DSCR 1.51x LTV 57.5% DSCR 1.54x LTV 52.4% DSCR 1.63x LTV 50.6
Slide 18: Multifamily Loan Portfolio
Multifamily Loan Portfolio 18 Multifamily Portfolio Balance % (in $MM's) NY (Rent Regulated) $925 49.4% NY (Market Rent) $91 4.9% NJ (Rent Regulated) $363 19.4% NJ (Market Rent) $234 12.5% PA (Rent Regulated) $10 0.5% PA (Market Rent) $249 13.3% TOTAL $1,872 100.0% Rent Regulated $1,298 69.3% Market
Slide 19: Minimal Refinance Risk within Multifamily, Office & Retail CRE
19 (in 000’s) Minimal Refinance Risk within Multifamily, Office & Retail CRE Note: Based on Call Report data.
Slide 20: Our Current High-Risk CRE Exposure to Softening Market Conditions
20 Our Current High-Risk CRE Exposure* to Softening Market Conditions GREEN “Very Low Risk” LTV: 62.5% YELLOW “Moderate Risk” LTV: 57.2% RED “High Risk” LTV: 61.6% (In $MM’s) *Multifamily, CRE Office, and Retail Note: Based on Call Report data. Source: Jeffrey Otteau, Otteau Group Inc, Q2 2023 Marke
Slide 21: Personal Banking Successfully Competing with Larger International Peers
Personal Banking Successfully Competing with Larger International Peers 21 *Natural Market Area defined within boundaries in map as geography within 5 miles of all branch locations. **Total Deposits and Loans as of 09/30/2023. Market share data source: S&P Capital IQ Pro – June 30, 2023 FDIC Data. D
Slide 22: Investing for Sustainable Long-Term Success & Value Creation
Investing for Sustainable Long-Term Success & Value Creation Available for Sale 84% Single point of contact Holistic full-suite offering High-touch client service model Registered Investment Advisors Tri-State (logical NYC extension) Leveraging data warehouse for enhanced enterprise insights Integra
Slide 23: Compelling Investment Considerations
Proven private bank business model with significant barriers to entry. Attractive geographic franchise enhanced with our entry into NYC, which is expected to deliver growth, additional core liquidity, and positive earnings. Robust investments being made for sustainable long-term success and value cr
Slide 24: Appendix
Appendix Peapack-Gladstone Bank
Slide 25: Quarterly Balance Sheet Summary
25 Quarterly Balance Sheet Summary (Dollars in thousands)
Slide 26: Asset Quality
26 Asset Quality (Dollars in thousands) 1 Excludes $1.6MM in held for sale at 09/30/2023. Includes two freight credits totaling $33.4MM. 2 Amounts reflect modifications that are paying according to modified terms. 3 Excludes modifications included in nonaccrual loans of $3.1MM at 09/30/2023. 4 Amoun
Slide 27: Capital Summary
27 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 28: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation 28 1 Q3 2023 Adjusted excluded fair value adjustment loss for CRA equity securities ($404K); Q2 2023 Adjusted excluded fair value adjustment gain for CRA equity securities ($209K); Q3 2022 Adjusted excluded fair value adjustment gain for CRA equity
Slide 29: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 29 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 30: 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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