Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q4 2023 Earnings Presentation
30 slides from Peapack-gladstone Financial's earnings presentation, Jan 25, 2024
Slide 1: Investor Update Q4 2023
Investor Update Q4 2023 Peapack-Gladstone Bank Peapack Private The Q4 2023 Investor Update should be read in conjunction with the Q4 2023 Earnings Release issued on January 25, 2024. 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: Performance Highlights
Earnings NIM stable (2.29%) and Net Interest Income flat on a linked quarter basis; cycle to date deposit beta 48%. Total fee income 32% of total revenue. Wealth Management fees of $13.8MM comprised 25% of total revenue for the quarter. New inflows totaled $260MM for the quarter; $156MM managed. Ope
Slide 4: Continuing to Invest & Create Value in our Private Banking Model - Q4 Update
Continuing to Invest & Create Value in our Private Banking Model - Q4 Update Fortifying single point of contact Redesigning support teams for efficiency and expediency Attracting NYC-based private banking and commercial banking teams Integrated wealth and bank data Empowering relationship managers w
Slide 5: Established Private Banking Business Model
1 Fiduciary revenue: Last Twelve Months (Gross income from services rendered by the institutions trust department or by any of its consolidated subsidiaries acting in any fiduciary capacity). 2 Total revenue: Last Twelve Months (Total Revenue = Net Interest Income (Pre-Provision) + Total Noninterest
Slide 6: Quarterly Results
6 *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 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. Quarterly Re
Slide 7: Annual Results
7 *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1. YTD 2023 Adjusted excluded a fair value adjustment gain for CRA equity securities ($181,000); YTD 2022 Adjusted excluded loss on sale of securities due to a balance sheet reposition
Slide 8: Stable Deposits, Liquidity & Capital
* Total available liquidity defined as Cash + Cash Equivalents + AFS Securities + Borrowing Capacity less Borrowings, Letters of Credit, and Pledged AFS Securities. ** (Cash + Cash Equivalents + AFS Securities) / Total Assets. *** Tangible equity and tangible assets are calculated by excluding the b
Slide 9: NIM Stabilized & Interest Rate Risk Profile Now Neutral
9 NIM Stabilized & Interest Rate Risk Profile Now Neutral NIM (as reported) (%) NIM expanded by 1 basis point on a linked quarter basis to 2.29% Margin has re-traced to levels experienced prior to the 2022-2023 Fed Funds Rate increases Repositioned balance sheet from asset-sensitive to neutral since
Slide 10: Credit Metrics
30-89 Days Past Due / Gross Loans (%) Credit Metrics 10 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 incurred loss methodology. Total Allowance1 to Loans (%) NPAs / Ass
Slide 11: Stable Fee Revenue
Stable Fee Revenue 11 *Capital Markets consists of Corporate Advisory, Mortgage Banking, SBA Lending, and Back-to-Back Swap fee income. Total Noninterest Income as a % of Total Revenue 26% 35% Q4 2022 $16.8MM $19.4MM (in millions) $14.0MM $18.6MM $14.3MM 32% Q2 2023 Q3 2023 $18.1MM $13.8MM Q1 2023 2
Slide 12: Wealth Management
AUM/AUA (in millions) Fees (in millions) Wealth Management 12 $10.9B AUM/AUA 32% EBITDA Margin 16% 6-Year Revenue CAGR $3.8MM Average Relationship $948MM 2023 Gross Inflows
Slide 13: Wealth Management New Business Inflows
13 Wealth Management New Business Inflows AUM/AUA (in millions) $777MM $701MM $843MM $1,070MM $948MM
Slide 14: Diversified Loan Portfolio
14 Multifamily Residential /Consumer CRE Commercial & Industrial Diversified Loan Portfolio Loan Mix as of 12/31/2023 Gross Loans*: $5.44 billion * Gross loans include loans held for sale. ($2,285MM) ($1,836MM) ($638MM) ($677MM)
Slide 15: Commercial Banking
Commercial Banking* 15 $2.9B Outstandings 54% of Total Loans Diversified C&I continues to be our area of focus for future growth (in millions) $1.6B * Commercial banking includes CRE loans and Commercial and industrial loans. CRE excludes MFL, which totaled $1.8B as of 12/31/2023. $2.1B $2.5B $2.7B
Slide 16: Diversification within C&I Lending
Diversification within C&I Lending 16 C&I Loans constitute 42% ($2.3B) of the total loan portfolio and includes 292 distinct NAICS codes. Freight represents < 2% of total loans
Slide 17: A Well-Diversified Non-Owner Occupied CRE Portfolio
17 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 12% ($638MM) of the total loan portfolio. Office CRE represents 2% of total loans
Slide 18: Multifamily Loan Portfolio
Multifamily Loan Portfolio 18 Multifamily Portfolio Balance % (in millions) NY (Rent Regulated) $941 51.3% NY (Market Rent) $70 3.8% NJ (Rent Regulated) $350 19.1% NJ (Market Rent) $223 12.1% PA (Rent Regulated) $10 0.5% PA (Market Rent) $242 13.2% TOTAL $1,836 100.0% Rent Regulated $1,301 70.9% Mar
Slide 19: Minimal Refinance Risk within Multifamily, Office & Retail CRE
19 (in millions) Minimal Refinance Risk within Multifamily, Office & Retail CRE Note: Based on Call Report data.
Slide 20: Personal Banking Successfully Competing against Large Banks
Personal Banking Successfully Competing against Large Banks 20 *Natural Market Area defined within boundaries in map as geography within 5 miles of all branch locations. **Total Loans as of 12/31/2023. Market share data source: S&P Capital IQ Pro – June 30, 2023 FDIC Data. Deposit Market Area define
Slide 21: Investment Highlights
Attractive geographic franchise enhanced with our entry into NYC, which is expected to deliver growth, improved operating leverage, additional core liquidity, and positive earnings momentum. Private banking business model anchored by a $10.9B AUM/AUA wealth management business. Investments being mad
Slide 22: Appendix
Appendix Peapack-Gladstone Bank
Slide 23: Quarterly Balance Sheet & AUM/AUA Summary
23 Quarterly Balance Sheet & AUM/AUA Summary (Dollars in thousands)
Slide 24: Asset Quality
24 Asset Quality 1 Includes one freight credit totaling $23.5 million at 12/31/2023 and two freight credits totaling $33.4 million at 9/30/2023. Excludes $1.6 million in held for sale at 9/30/2023. 2 Amounts reflect modifications that are paying according to modified terms. 3 Excludes modifications
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: Quarterly Non-GAAP Financial Measures Reconciliation
Quarterly Non-GAAP Financial Measures Reconciliation 26 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. We believe that these non-GAAP financial measures provide information th
Slide 27: Annual Non-GAAP Financial Measures Reconciliation
Annual Non-GAAP Financial Measures Reconciliation 27 1 YTD 2023 Adjusted excluded a fair value adjustment gain for CRA equity securities ($181,000); 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 se
Slide 28: Quarterly Non-GAAP Financial Measures Reconciliation
Quarterly Non-GAAP Financial Measures Reconciliation 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 internally assesses our performance based, in pa
Slide 29: Annual Non-GAAP Financial Measures Reconciliation
Annual Non-GAAP Financial Measures Reconciliation 29 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 30: 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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