Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q4 2024 Earnings Presentation
26 slides from Peapack-gladstone Financial's earnings presentation, Jan 28, 2025
Slide 1: Investor Update Q4 2024
The Q4 2024 Investor Update should be read in conjunction with the Q4 2024 Earnings Release issued on January 28, 2025. Peapack Gladstone Bank rebranded to Peapack Private Bank & Trust, effective January 1, 2025. Investor Update Q4 2024 Exhibit 99.1
Slide 2: Forward-looking statements
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 expectations about financial results, new and existing
Slide 3: Performance Highlights
Performance Highlights Strategic Update Balance sheet continues to transform while fully absorbing 100+ new team members and delivering our highest quarterly earnings in 2024. Metro NY expansion is performing significantly above plan; opened 550 new relationships, totaling $948MM in deposits. Based
Slide 4: Quarterly Financial Results
Quarterly Financial Results See page 18 for notes and important information.
Slide 5: Balance Sheet Transformation: Excellent Liquidity Profile
Balance Sheet Transformation Excellent Liquidity Profile Continuing to rapidly strengthen our liquidity profile. Core relationship deposits have grown 30% over the past 12 months. $404MM of overnight borrowings eliminated, increasing available borrowing capacity. Cash represented 6% of total assets
Slide 6: Metro NY Expansion Results to Date
Metro NY Expansion Results to Date Hiring across critical support areas to support our growth. Investments in products, technology and enhanced processes focused on reducing client friction points and supporting our “branch light” model. 550+ Relationships $948MM Total Deposits 28% Noninterest-beari
Slide 7: Net Interest Income: Core Deposit Growth Leading to Margin Expansion
Net Interest Income Core Deposit Growth Leading to Margin Expansion Net interest income has grown in each quarter throughout 2024, driven by successful core deposit growth from both NJ and NY teams combined with rate cuts. NII increased $4.2MM (11%) on a linked-quarter basis and $5.2MM (14%) year-ov
Slide 8: Deposit Trends: Strong Growth at a Favorable Mix
Deposit Trends Strong Growth at a Favorable Mix Significant deposit growth has allowed for a reduction in borrowings. Core relationship deposits1 increased $438MM in Q4, up $1.2B for the year. Noninterest-bearing deposits increased $33MM in Q4, up $155MM for the year. See page 18 for notes and impor
Slide 9: Wealth Management: Strong Operating Margin; Proven Asset Growth
Wealth Management Strong Operating Margin; Proven Asset Growth AUM/AUA (in millions) Revenue (in millions) $11.9B AUM/AUA 36% EBITDA Margin 2024 FY 11% Revenue CAGR1 $4.2MM Average Relationship $163MM Q4 2024 Gross New Business Inflows See page 18 for notes and important information.
Slide 10: Stable Fee Revenue Driven by Wealth Management
Stable Fee Revenue Driven by Wealth Management Noninterest Income as a % of Total Revenue 32% Q4 2023 38% Q2 2024 Q3 2024 Q1 2024 35% Q4 2024 33% 32% See page 18 for notes and important information.
Slide 11: Diversified Lending Business
Diversified Lending Business Loan Mix as of 12/31/2024 Gross Loans1: $5.5 billion See page 18 for notes and important information. $528 million of loan originations2 in Q4 netted $201 million of loan growth. Continued to focus on managing the CRE concentration ratio through minimal originations. Wei
Slide 12: Commercial Banking: Continuing to Focus on C&I Lending
Commercial Banking1 Continuing to Focus on C&I Lending See page 18 for notes and important information.
Slide 13: Multifamily Loan Portfolio
Multifamily Loan Portfolio Stable with Improving Trends – No MFL Delinquencies Multifamily (“MFL”) constitutes 33% ($1.8B) of the total loan portfolio.
Slide 14: Credit Metrics: Positive Asset Quality Trends
Credit Metrics Positive Asset Quality Trends 30-89 Days Past Due / Gross Loans (%) Classified Loans / Gross Loans (%) NPAs / Assets (%) Special Mention / Gross Loans (%)
Slide 15: Personal Banking Expansion into NYC
Personal Banking Expansion into NYC with Track Record of Successfully Competing against Large Banks Growing New Jersey market share in a shrinking market, continuing to outperform peers NYC4 Deposit Market $2.8 trillion See page 18 for notes and important information.
Slide 16: Creating Shareholder Value
Creating Shareholder Value 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
Slide 17: Appendix
PEAPACK-GLADSTONE FINANCIAL CORPORATION PEAPACK PRIVATE Bank & Trust Appendix a
Slide 18: Notes
Notes Performance Highlights slide 1) Core relationship deposits defined as deposit relationships that are not custodial, brokered, or listing service. 2) All references to “Bank”, “Peapack Private Bank & Trust”, or “Peapack Private” refer to the name of the Bank, which changed from Peapack Gladston
Slide 19: Balance Sheet & AUM/AUA Summary
Balance Sheet & AUM/AUA Summary
Slide 20: Asset Quality
Asset Quality 1) Amounts reflect modifications that are paying according to modified terms. 2) Excludes modifications included in nonaccrual loans of $3.6 million at December 31, 2024, $3.7 million at September 30, 2024, and $3.0 million at December 31, 2023. 3) Excludes a credit of $15,000 at Decem
Slide 21: Capital Summary
Capital Summary 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
Slide 22: Quarterly Income Statement Summary
Quarterly Income Statement Summary 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.
Slide 23: Quarterly Non-GAAP Financial Measures Reconciliation
Quarterly Non-GAAP Financial Measures Reconciliation 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,
Slide 24: Annual Income Statement Summary
Annual Income Statement Summary 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.
Slide 25: Annual Non-GAAP Financial Measures Reconciliation
Annual Non-GAAP Financial Measures Reconciliation 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
Slide 26: Contacts and Corporate Headquarters
500 Hills Drive, Suite 300 P.O. Box 700 Bedminster, New Jersey 07921 (908) 234-0700 peapackprivate.com Douglas L. Kennedy President & Chief Executive Officer (908) 719-6554 dkennedy@peapackprivate.com Frank A. Cavallaro Senior EVP & Chief Financial Officer (908) 306-8933 fcavallaro@peapackprivate.co
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