Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q1 2023 Earnings Presentation
28 slides from Peapack-gladstone Financial's earnings presentation, Apr 25, 2023
Slide 1: Investor Update Q1 2023
Investor Update Q1 2023 Peapack-Gladstone Bank Peapack Private Wealth Management The Q1 2023 Investor Update should be read in conjunction with the Q1 2023 Earnings Release issued on April 25, 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: Q1 2023 Highlights
Core EPS $1.02; ROA 1.18%; ROE 13.64%; ROTE 14.94%.* Net interest income is up 11% YOY; NIM down 24 bps on a linked quarter basis. Deposits up $104MM (8% annualized); 92% of total deposits are core. Total available liquidity** of $3.7B. Loans grew $79MM (6% annualized); 42% of loans are C&I; 45% of
Slide 4: Positive Trends in Liquidity and Capital
*Cash + Cash Equivalents + AFS Securities) / Total Assets. **See Non-GAAP financial measures reconciliation table. Positive Trends in Liquidity and Capital
Slide 5: 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 6: Ample Coverage of Uninsured Deposits
*Source: FFIEC 031 and 041 RC-0 Memo #2 ** Coverage is defined as (Cash + Cash Equivalents + AFS Securities + Borrowing Capacity less Borrowings, Letters of Credit, and Pledged AFS Securities) / Uninsured Deposits Ample Coverage of Uninsured Deposits Deposit Base Details (as of March 31, 2023) 229%
Slide 7: Minimal Refinance Risk within Multifamily, Office & Retail CRE
7 % of Total Loans (as of 3/31/23) 2.1% 3.3% 3.5% (in 000’s) DSCR Multifamily CRE Retail CRE Office 2.09x 1.37x 1.58x 1.75x 1.57x 1.64x 1.39x 1.59x 1.32x Avg Loan Size $2.3MM $2.9MM $2.8MM Minimal Refinance Risk within Multifamily, Office & Retail CRE
Slide 8: *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee
8 *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 Q1 2023 Adjusted excluded fair value adjustment gain for CRA equity securities ($209,000); Q4 2022 Adjusted excluded life insurance proceeds ($25,000), gain on sale of property ($275,
Slide 9: Net Interest Margin Contraction
9 NIM (as reported) (%) Net Interest Margin Contraction
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. 1 Q1 2023 Adjusted excluded fair value adjustment gain for CRA equity securities ($209,000); Q4 2022 Adjusted excluded life insurance proceeds ($25,000), gain on sa
Slide 11: Peapack Private Wealth Management
AUM/AUA (000s) Fees (000s) Peapack Private Wealth Management 11 $10.4B AUM/AUA 37% EBITDA Margin YTD 2022 18.7% 2017-2022 CAGR $3.6MM Avg Relationship $254MM QTD 2023 Gross Inflows $13.8MM
Slide 12: Peapack Private Wealth Management New Business Inflows
12 Peapack Private Wealth Management New Business Inflows AUM/AUA (000s) $777,000 $701,000 $843,000 $1,070,000 $254,000
Slide 13: C&I Focus Will Drive Future Growth and Profitability
C&I Focus Will Drive Future Growth and Profitability Strategic Pull Back in CRE 13 $2.9B Outstandings 53% of Total Loans Diversified C&I continues to be our area of focus for future growth $852M Unused LOC Fees YTD (in millions) $1,585 *NOTE: Excludes MFL which totaled $1.9B as of 03/31/2023. $2,100
Slide 14: Diversified Loan Portfolio
14 Multifamily Residential /Consumer CRE Commercial & Industrial Diversified Loan Portfolio Loan Mix as of 03/31/2023 Gross Loans: $5.38 billion Note: Gross loans include loans held for sale. ($2,267MM) ($1,871MM) ($614MM) ($628MM)
Slide 15: Diversification within C&I Lending
Diversification within C&I Lending 15 C&I Loans constitute 42% ($2.3B) of the total loan portfolio and includes 279 distinct NAICS codes.
Slide 16: A Well-Diversified Non-Owner Occupied CRE Portfolio
16 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% ($614MM) 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 17: High Quality Multifamily Loan Portfolio
High Quality Multifamily Loan Portfolio 17 Multifamily Portfolio Balance % (in $MM's) NY (Rent Regulated) $900 48.1% NY (Market Rent) $122 6.5% NJ (Rent Regulated) $342 18.3% NJ (Market Rent) $246 13.1% PA (Rent Regulated) $10 0.6% PA (Market Rent) $251 13.4% TOTAL $1,871 100.0% Rent Regulated $1,25
Slide 18: Credit Quality Metrics
NPAs / Assets (%) ALLL (ACL) / Non-Performing Loans (%) 1 30-89 Days Past Due / Gross Loans (%) Credit Quality Metrics 18 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 i
Slide 19: Personal Banking
Personal Banking* 19 $332MM average deposits per personal banking location** New York City MSA with branches in 3 of top 15 wealthiest US counties #1 Deposit Growth in Top 10 14% CAGR since 2012 92% Core Unique private banking service model Growth Upside 6% market share in an $89B deposit market *Na
Slide 20: Wealth Management Peer Comparables
20 Wealth Management Peer Comparables Note: Includes select publicly traded banks and thrifts identified by management as “Wealth Peers”. Total return metrics based on 1Y, 3Y, 5Y as of 12/30/2022 Source: S&P Global Market Intelligence
Slide 21: Compelling Investment Considerations
Well-diversified business model. $10.4B AUM/AUA ($55MM annualized revenue) wealth management business. C&I and fee business will drive future growth. Strong balance sheet. Solid asset quality. Attractive geographic franchise. Stable core deposit base. Well-managed expenses. Investment grade ratings
Slide 22: Appendix
Appendix Peapack-Gladstone Bank
Slide 23: Quarterly Balance Sheet Summary
23 Quarterly Balance Sheet Summary (Dollars in thousands)
Slide 24: Amounts reflect modifications that are paying according to modified terms. 2 Amounts reflect troubled
24 1 Amounts reflect modifications that are paying according to modified terms. 2 Amounts reflect troubled debt restructurings (“TDRs”) that are paying according to restructured terms. 3 Excludes TDRs included in nonaccrual loans in the following amounts: $13.4MM at 12/31/2022 and $13.6MM at 03/31/2
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: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation 26 1 Q1 2023 Adjusted excluded a fair value adjustment gain for CRA equity securities ($209,000); Q4 2022 Adjusted excluded life insurance proceeds ($25,000), gain on sale of property ($275,000), and fair value adjustment gain for CRA equity securit
Slide 27: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 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 inte
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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