Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q3 2022 Earnings Presentation
29 slides from Peapack-gladstone Financial's earnings presentation, Oct 27, 2022
Slide 1: Investor Update Q3 2022
Investor Update Q3 2022 Peapack-Gladstone Bank Peapack Private Wealth Management The Q3 2022 Investor Update should be read in conjunction with the Q3 2022 Earnings Release issued on October 27, 2022. 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: Q3 2022 Highlights
Core EPS $1.12; ROA 1.33%; ROE 15.53%; ROTE 17.07%. * Net interest margin up 15 bps linked quarter and 56 bps YOY to 2.98%. Efficiency Ratio 54%. Loan portfolio positioned positively for additional rate hikes – 23% of loans reprice within 1 month, 36% within 3 months, and 46% ($2.4B) within 1 year.
Slide 4: Continued Strong Revenue and Profitability Momentum
4 *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 Q3 2022 Adjusted excluded fair value adjustment loss for CRA equity securities ($571,000); Q2 2022 Adjusted excluded fair value adjustment loss for CRA equity securities ($475,000); Q
Slide 5: YTD 2022 Revenue and Profitability
5 *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 YTD 2022 Adjusted excluded loss on sale of securities due to a balance sheet reposition strategy ($6.6MM), fair value adjustment loss for CRA equity securities ($1.7MM); YTD 2021 Adju
Slide 6: Asset Sensitivity Continues to Expand
6 NIM (as reported) (%) Asset Sensitivity Continues to Expand Net Interest Margin Loan Repricing Net Interest Income Sensitivity
Slide 7: Despite Capital Markets Volatility, Fee Income Has Remained Resilient
Despite Capital Markets Volatility, Fee Income Has Remained Resilient 7 *Capital Markets consists of Corporate Advisory, Mortgage Banking, SBA Lending, and Back-to-Back Swap fee income. 1 YTD 2021 Adjusted excluded a benefit of life insurance proceeds ($153,000), gain on loans held for sale at lower
Slide 8: Peapack Private Wealth Management
AUM/AUA (000s) Fees (000s) Peapack Private Wealth Management 8 $9.3B AUM/AUA 40% EBITDA Margin YTD 2022 23% 2017-2021 CAGR $4.0MM Avg Relationship $775MM YTD 2022 Gross Inflows $41.7MM 9-mos Revenue
Slide 9: Peapack Private Wealth Management New Business Inflows
9 Peapack Private Wealth Management New Business Inflows AUM/AUA (000s) $777,000 $701,000 $843,000 $775,000
Slide 10: Commercial Banking
Commercial Banking* (Total construction exposure <1%) 10 $2.7B Outstandings 53% of Total Loans $6.1MM SBA Fees YTD $1.5MM Unused LOC Fees YTD (in millions) $1,585 *NOTE: Excludes MFL which totaled $1.9B as of 09/30/2022. $2,100 $2,474 $2,658 $2,537 $2,739 $2.6MM Account Analysis Fees YTD $1.7MM Corp
Slide 11: Diversified Loan Portfolio
11 Multifamily Residential /Consumer CRE Commercial & Industrial Diversified Loan Portfolio Loan Mix As of 09/30/2022 Gross Loans: $5,189 million Note: Gross loans include loans held for sale.
Slide 12: Diversification within C&I Lending
Diversification within C&I Lending Less than 3% of C&I exposure unsecured 12 C&I Loans constitute 40% of the total loan portfolio and includes 280 distinct NAICS codes.
Slide 13: High Quality Multifamily Loan Portfolio
High Quality Multifamily Loan Portfolio 13 Multifamily Portfolio Balance % (in $MM's) NY (Rent Regulated) $902 48.6% NY (Market Rent) $111 6.0% NJ (Rent Regulated) $339 18.3% NJ (Market Rent) $232 12.5% PA (Rent Regulated) $10 0.5% PA (Market Rent) $263 14.1% TOTAL $1,857 100.0% Rent Regulated $1,25
Slide 14: A Well-Diversified Non-Owner Occupied CRE Portfolio
14 A Well-Diversified Non-Owner Occupied CRE Portfolio Non-Owner Occupied CRE constitutes 13% of the total loan portfolio. LTV 51.1% DSCR 1.51x LTV 57.5% DSCR 1.54x LTV 52.4% DSCR 1.63x
Slide 15: A Well-Seasoned Residential Mortgage and Consumer Loan Portfolio
15 A Well-Seasoned Residential Mortgage and Consumer Loan Portfolio Residential Mortgage and Consumer Loans constitute 11% of the total loan portfolio.
Slide 16: Personal Banking
Personal Banking* 16 $279MM average deposits per branch** New York City MSA with branches in 3 of top 15 wealthiest US counties #1 Deposit Growth in Top 10 14% CAGR since 2012 91% Core Unique private banking service model Growth Upside 6% market share in an $89B deposit market *Natural Market Area d
Slide 17: PGC's Comparative Valuation to Wealth Management Peers
17 PGC’s Comparative Valuation to Wealth Management Peers Note: Pricing data as of 10/24/2022; TBV as reported for the period ended 06/30/2022 and not pro forma for pending acquisitions. Wealth Management Institutions: UVSP – Univest Financial Corp., CATC – Cambridge Bancorp, WSFS – WSFS Financial C
Slide 18: Wealth Management Peer Comparables
18 Wealth Management Peer Comparables Note: Core earnings exclude nonrecurring operating incomes & expenses such as losses on securities sales, restructuring expenses, severance expenses, and merger-related expenses. Core deposits defined as total deposits less time deposits greater than $250k and a
Slide 19: PGC Valuation: Sum-of-the-Parts Analysis
PGC Valuation: Sum-of-the-Parts Analysis (implied bank value trading at 79% TBV) 19 Assuming M&A EBITDA multiples of 12-15x for established and growing wealth management firms indicates substantial embedded value in Peapack Private Wealth Management (PPWM):
Slide 20: Investment Highlights
Current valuation lags wealth management peers despite favorable key performance metrics. $9.3B AUM/AUA ($56MM annualized revenue) wealth management business provides a differentiated business model with significant barriers to entry. This will continue to deliver superior shareholder value. Wealth
Slide 21: Appendix
Appendix Peapack-Gladstone Bank
Slide 22: Quarterly Balance Sheet Summary
Quarterly Balance Sheet Summary (Dollars in thousands) 22
Slide 23: Asset Quality
Asset Quality 23 1 Amounts reflect TDRs that are paying according to restructured terms. 2 Excludes TDRs included in nonaccrual loans in the following amounts: $12.9MM at 09/30/2022; $13.5MM at 06/30/2022; and $1.1MM at 12/31/2021. 3 Includes $5.1 MM outstanding to a U.S. governmental unit at 09/30/
Slide 24: Capital Summary
Capital Summary 24 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 asset
Slide 25: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation 25 1 Q3 2022 Adjusted excluded fair value adjustment loss for CRA equity securities ($571,000); Q2 2022 Adjusted excluded fair value adjustment loss for CRA equity securities ($475,000); Q3 2021 Adjusted excluded fair value adjustment loss for CRA e
Slide 26: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 26 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 27: YTD Non-GAAP Financial Measures Reconciliation
YTD Non-GAAP Financial Measures Reconciliation 27 1 YTD 2022 Adjusted excluded loss on sale of securities due to a balance sheet reposition strategy ($6.6MM); fair value adjustment loss for CRA equity securities ($1.7MM); YTD 2021 Adjusted excluded a benefit of life insurance proceeds ($153,000); ga
Slide 28: YTD Non-GAAP Financial Measures Reconciliation
YTD Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 28 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 internal
Slide 29: 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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