Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q3 2021 Earnings Presentation
34 slides from Peapack-gladstone Financial's earnings presentation, Oct 28, 2021
Slide 1: Q3 2021 Investor Update (and Supplemental Financial Information)
Q3 2021 Investor Update (and Supplemental Financial Information) 09/30/2021 Peapack-Gladstone Bank Peapack Private Wealth Management The Q3 2021 Investor Update (and Supplemental Financial Information) should be read in conjunction with the Q3 2021 Earnings Release issued on October 28, 2021. Exhibi
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: Strong Q3 Core Financial Performance
Strong Q3 Core Financial Performance 3 *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 Q3 2020 Adjusted excludes gain on sale of $7.5MM related to the sale of $355MM PPP loans. 2 Q3 2021 Adjusted excludes $1.4MM of Swap valuation exp
Slide 4: Compelling Investment Highlights
Current TBV multiple lags peers providing potential upside. $10.3B wealth management business with significant value. Wealth management, commercial banking and capital markets activities provide a diverse revenue stream. Total fee income 35% of total revenue for the nine months ended September 30, 2
Slide 5: Relative Trading Valuation Compared to Peers
Relative Trading Valuation Compared to Peers As of October 15, 2021 5 *Tangible book value at June 30, 2021 is $26.30. See Non-GAAP financial measures reconciliation table. Source: S&P Global Market Intelligence Wealth peers include: Tompkins Financial Corporation, Univest Financial Corporation, Was
Slide 6: PGC's Current Valuation vs. Wealth Management Peers
PGC’s Current Valuation vs. Wealth Management Peers 6 Note: Pricing data as of October 15, 2021; TBV as reported for the period ended June 30, 2021 (unless otherwise noted) and not pro forma for pending acquisitions Wealth Management Peers: UVSP – Univest Financial Corp., CATC – Cambridge Bancorp, B
Slide 7: Valuable Wealth Business: Value Drivers and Sum of the Parts
Value drivers: Dependable revenue stream, high barriers to entry, and scarcity value. Proven track record of new business inflows and positive net flows, $715MM YTD. Current EBITDA margin 40% with no credit tail. Significant enterprise value supported through high client retention and extended avera
Slide 8: Peapack Private Wealth Management Snapshot
AUM/AUA (000s) Fees (000s) Peapack Private Wealth Management Snapshot Largest NJ-headquartered, bank-owned trust company. Current AUMs/AUAs $10.3B. EBITDA margin range is 30% - 40%. 2,500+ relationships. Average relationship size $3.5MM. Revenue CAGR of 17% since 2018 9 private banking offices in NJ
Slide 9: Positive Trends in New Business and Profitability
9 Positive Trends in New Business and Profitability AUM/AUA (000s) For the Year Ended: YTD 12/31/18 12/31/19 12/31/20 9/30/21 For the Nine-Months Ended: 9/30/18 9/30/19 9/30/20 9/30/21
Slide 10: Wealth Management is a Meaningful Part of Our Noninterest Income
Wealth Management is a Meaningful Part of Our Noninterest Income 10 *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 Excludes gain on sale of $7.5MM related to the sale of $355MM PPP loans. Total Noninterest Income (excluding PPP Gain
Slide 11: Net Interest Margin has Substantially Improved YTD
NIM (as reported) (%) 11 Net Interest Margin has Substantially Improved YTD and Bank is Well-Positioned as Rates Rise 1-Month Libor @ Period End 0.148% 0.144% 0.111% 0.101% 0.080% 42% of loans reprice within 3 months, 54% reprice within a year. The anticipated Year-1 impact to Net Interest Income fr
Slide 12: New Loan Fundings are Strong Year-to-Date
12 $4,208MM* $1,053MM New Loan Fundings are Strong Year-to-Date and We Continue Our Guidance to High Single Digit Growth ($294)MM $4,547MM* Weighted Avg. Coupon Rate: 3.40% ($420)MM YTD Loan Growth: 8% *Excludes PPP Loans.
Slide 13: Favorable Trends in Core Deposits
13 Favorable Trends in Core Deposits Increase of $1.45B in core deposits ($457MM of noninterest bearing) since 12/31/2019 Core Deposits as a % of Total Deposits 89% 79% 12/31/2019 9/30/2021 $3,349 $4,799 0.17% 0.86% Core deposits include noninterest bearing demand, interest-bearing checking, money m
Slide 14: Stable and Strong Asset Quality
NPAs / Assets (%)* ALLL / Non-Performing Loans (%)* 30-89 Days Past Due / Gross Loans (%) Stable and Strong Asset Quality 14 *Excludes restructured loans of $5.6MM HFS at 09/30/2021. 1 NJ Peer average 0.76% as of 06/30/2021. NOTE: Less than 1% of loans currently on deferral. Classified Loans / Gross
Slide 15: Asset Quality Remains Strong
Our portfolio remains strong: Criticized and Classified exposure remains stable. NPAs totaled 42 basis points, generally better than NJ peer average of 76 basis points. 30-89 Days past due loans totaled $1.2MM at 09/30/2021, significantly better than peers. Accruing deferrals totaled only $13MM with
Slide 16: Overall Reserve Coverage Remains Strong
16 Overall Reserve Coverage Remains Strong $63.5 MM $65.1 MM ($3.0) MM $4.4 MM $0.5 MM 1.39% 1.42% Total ALLL Coverage % ($0.3) MM
Slide 17: Priorities
Grow and expand our three primary drivers of profitability: Wealth Management, Commercial Banking, and Capital Markets businesses. Continued well-disciplined, wealth management acquisitions. Continued loan and deposit pricing discipline. Continue to execute on our stock repurchase program. Drive ROA
Slide 18: Appendix
Appendix Peapack-Gladstone Bank
Slide 19: Vision and Client Service Model
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 19 Senior Private Bankers lead a team-based approach. P
Slide 20: Valuable Franchise and Geographic Footprint
Financial Highlights 1 Branch Map Valuable Franchise and Geographic Footprint 20 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 15 Wealthiest Counties in the United States 2 1 Fi
Slide 21: 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 22: Peapack Private Wealth Management Client Centric Model
Peapack Private Wealth Management Client Centric Model 22
Slide 23: Peapack Private Wealth Management Experienced Team
Peapack Private Wealth Management Experienced Team Our highly accomplished team has a combined 95 advance degrees, affiliations, professional certifications and designations, including: 28 MBAs 22 CFPs 13 CFAs & CTFAs 9 CPAs 5 JDs 18 Other 23
Slide 24: Successful Transformation to a Commercial Bank
Note: Gross loans include loans held for sale. 24 MFL 32% CRE 15% C&I 40% Resi/Cons 13% Resi /Cons 54% C&I 10% CRE 22% MFL 14% Loan Mix As of September 30, 2021 Loan Mix As of December 31, 2012 Gross Loans: $1.2B Gross Loans: $4.6B Commercial & Industrial CRE Multifamily Resi/Consumer Resi /Cons 19%
Slide 25: Strong Capital and Liquidity Profile
Strong Capital and Liquidity Profile 25 1 Substantially all of the Bank's loans and securities are pledged for back up liquidity purposes. 2 Excludes securities, the majority of which are pledged against secured funding.
Slide 26: Quarterly Capital Stress Testing
26 Quarterly Capital Stress Testing run under multiple scenarios based on Loan Risk Ratings. In the 06/30/2021 severely adverse case, in growth and no growth scenarios growth the Bank remains well capitalized over a two-year stress period. Severely adverse case major assumptions: GDP growth -5.5% Un
Slide 27: Quarterly Income Statement Summary
Quarterly Income Statement Summary (Dollars in thousands, except per share data) 27 1 The September 2020 Adjusted quarter excludes: gain on sale of $7.5MM related to the sale of $355MM of PPP loans; The June 2021 Adjusted quarter excludes: a) benefit of $153 thousand income from life insurance proce
Slide 28: Year-To-Date Income Statement Summary
Year-To-Date Income Statement Summary (Dollars in thousands, except per share data) 28 1 The nine months ended September 30, 2021 Adjusted excludes: a) a benefit of $455 thousand income from life insurance proceeds; b) gain on sale of PPP loans completed in the June 2021 quarter and a problem loan s
Slide 29: Quarterly Balance Sheet Summary
Quarterly Balance Sheet Summary (Dollars in thousands) 29 1 Includes PPP loans of $202MM at 09/30/2020, $196MM at 12/31/2020, $84MM at 06/30/2021, and $49MM at 09/30/2021.
Slide 30: Asset Quality
Asset Quality 30 1 Excludes one commercial loan held for sale of $10.0MM at 09/30/2020; residential and commercial loans held for sale of $8.5MM at 12/31/2020; one commercial loan held for sale of $5.6MM at 06/30/2021; and one commercial loan held for sale of $5.6MM at 09/30/2021. 2 Amounts reflect
Slide 31: Capital Summary
Capital Summary 31 1 PPP loans with a balance of $202MM, $196MM, $84MM, and $49MM increased total assets at 09/30/2020, 12/31/2020, 06/30/2021, and 09/30/2021, respectively. Equity to total assets would be 9.08%, 9.26%, 9.43%, and 8.77% if PPP loans were excluded from total assets at 09/30/2020, 12/
Slide 32: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 32 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 33: Year-To-Date Non-GAAP Financial Measures Reconciliation
Year-To-Date Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 33 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
Slide 34: 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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