Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q1 2021 Earnings Presentation
25 slides from Peapack-gladstone Financial's earnings presentation, Apr 29, 2021
Slide 1: Q1 2021 Investor Update (and Supplemental Financial Information)
Q1 2021 Investor Update (and Supplemental Financial Information) 03/31/2021 Peapack-Gladstone Bank The Q1 2021 Investor Update (and Supplemental Financial Information) should be read in conjunction with the Q1 2021 Earnings Release issued on April 29, 2021. 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: Compelling Investment Considerations
$9.4B wealth management business with significant enterprise value. Wealth management, commercial banking and capital markets activities provides a diverse revenue stream. Total fee income 36% of total revenue for the quarter ended March 31, 2021. Well-positioned for increased rates. Current TBV mul
Slide 4: Strong Q1 Performance
Strong Q1 Performance 4 * Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 Quarter ended 03/31/2021 actual included $1.5mm of severance expense due to an internal restructuring. See Non-GAAP financial measures reconciliation table. 2 Q
Slide 5: Continued Progress Growing Noninterest Income
Continued Progress Growing Noninterest Income 5 * Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. $11.7 MM $14.5 MM $17.8 MM Total Noninterest Income as a % of Total Revenue: 28% 31% 36% Q1 2019 YTD Q1 2020 YTD Q1 2021 YTD
Slide 6: Wealth Management Provides a Well Diversified and Stable Source of Revenue
Q1 2021: AUMs/AUAs at 03/31/21 were a record $9.4B. Total AUM/AUA inflows were $283MM and net flows were a positive $181MM for Q1 2021. Wealth fees totaled $12MM for Q1 2021 reflecting an increase of $2.2MM (22%) vs Q1 2020. Wealth fee revenue comprised 24% of total bank revenue for 2021. The Decemb
Slide 7: Net Interest Margin Has Stabilized
NIM (as reported) (%) 7 Net Interest Margin Has Stabilized Margin improved and stabilized over Q4 2020 and Q1 2021. Expect gradual NIM improvement over 2021; Excess liquidity will be deployed into higher yielding loans. 2021 loan growth targeted at high single to low double digits. $415MM of CDs at
Slide 8: Favorable Trends in Core Deposit Growth and Cost
8 Favorable Trends in Core Deposit Growth and Cost Historical Deposit Composition – Quarter Ended 12/31/19 03/31/20 06/30/20 09/30/20 12/31/20 1.34% 1.21% 0.74% 0.55% 0.48% Cost of Interest-Bearing Deposits: 03/31/21 0.40% Total Deposits as of 03/31/2021: $4.945 billion Increase of $946MM in core de
Slide 9: Strong Loan Funding Volume Offset by High Prepayments
9 $4,405 MM ($118) MM $285 MM Strong Loan Funding Volume Offset by High Prepayments ($148) MM $4,440 MM $16 MM
Slide 10: Positioned Well When Rates Rise
10 Positioned Well When Rates Rise As of 03/31/2021 Net Interest Income Year 1 Impact (%) Note: Based on a 12- and 24-month simulation. Although the simulation provides an indication of our interest rate exposure at a particular point in time, such measurements are not intended and do not provide a
Slide 11: Well Diversified Loan Portfolio
11 Well Diversified Loan Portfolio Gross Loans: $4.4 billion Loan Mix as of 3/31/2021
Slide 12: Strong Credit Quality
NPAs / Assets (%)* ALLL / Non-Performing Loans (%)* NCOs / Average Loans (%) ALLL / Gross Loans (%) Strong Credit Quality 12 *Excludes restructured loans of $5.6MM HFS at 03/31/2021. NOTE: Less than 1% of loans currently on deferral.
Slide 13: Fortress Balance Sheet
Fortress Balance Sheet 13 1 Substantially all of the Bank's loans and securities are pledged for back up liquidity purposes. 2 Net of $15MM of term borrowing. 3 Excludes securities, the majority of which are pledged against secured funding.
Slide 14: Priorities
Actively deploy/manage capital and liquidity by expanding our lending activities and executing on our recently announced stock repurchase program. Continue to grow and expand our core Wealth Management, Commercial Banking and Capital Markets businesses through core operations, strategic hires, lift-
Slide 15: Appendix
Appendix Peapack-Gladstone Bank
Slide 16: Financial Highlights, Branch Map and Franchise Overview
Financial Highlights 1 Branch Map Franchise Overview 16 Private Banking Offices Bedminster, NJ Morristown, NJ Princeton, NJ Teaneck, NJ Bonita Springs, FL Red Bank, NJ New Providence, NJ Summit, NJ We Operate in 3 of the Top 10 Wealthiest Counties in the United States 2 1 Financial data as of 03/31/
Slide 17: A high-performing boutique bank
A high-performing boutique bank, leaders in wealth, lending and deposit solutions, known nationally for our unparalleled client service, integrity and trust. Professionalism Clients First Compete to Win Invested in Our Community One Team Vision 17 Senior Private Bankers lead a team-based approach. P
Slide 18: Strategy and Business Lines Overview
Emphasis on commercial banking with private bankers focused on providing high-touch client service through an advice-based approach encompassing commercial and industrial (C&I) lending, wealth management, depository services, electronic banking, other commercial real estate lending, and corporate ad
Slide 19: Quarterly Income Statement Summary
Quarterly Income Statement Summary (Dollars in thousands, except per share data) 19 1 Includes gain on sale of $7.4MM for the sale of $355MM in PPP loans for the quarter ended 09/30/2020. 2 The March 2021 quarter included a $1.5MM of severance expense due to an internal restructuring. The December 2
Slide 20: Quarterly Balance Sheet Summary
Quarterly Balance Sheet Summary (Dollars in thousands) 20 1 Includes PPP loans of $233MM at 03/31/2021, $196MM at 12/31/2020, $202MM at 09/30/2020 and $547MM at 06/30/2020.
Slide 21: Asset Quality
Asset Quality 21 1 Excludes: one commercial loan held for sale of $5.6MM at 03/31/2021; residential and commercial loans held for sale of $8.5MM at 12/31/2020; one commercial loan held for sale of $10.0MM at 09/30/2020. 2 Amounts reflect TDRs that are paying according to restructured terms. 3 Amount
Slide 22: Capital Summary
Capital Summary 22 1 PPP loans with a balance of $233MM and $196MM increased total assets at 03/31/2021 and 12/31/2020, respectively. Equity to total assets would be 9.11% and 9.26% if PPP loans were excluded from total assets at 03/31/2021 and 12/31/2020, respectively. 2 Tangible equity and tangibl
Slide 23: Quarterly Capital Stress Testing
23 Quarterly Capital Stress Testing run under multiple scenarios based on Loan Risk Ratings. In the 12/31/20 severely adverse case, no growth scenario, the Bank remains well capitalized over a two-year stress period. Severely adverse case major assumptions: GDP growth -5.5% Unemployment 10.8% Declin
Slide 24: Non-GAAP Financial Measures Reconciliation
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 internally a
Slide 25: 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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