Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q4 2021 Earnings Presentation
25 slides from Peapack-gladstone Financial's earnings presentation, Jan 28, 2022
Slide 1: Investor Update 12/31/2021
Investor Update 12/31/2021 Peapack-Gladstone Bank Peapack Private Wealth Management The Q4 2021 Investor Update should be read in conjunction with the Q4 2021 Earnings Release issued on January 28, 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: Year End Summary
2021 was a record year: revenue up 11%; pretax income before provision for loan losses up 31%; net income up 116%. Peapack Private Wealth Management had a record year as income grew $12MM or 30% and ended the year at $11.1B in AUM/AUA. Total fee income grew $17MM or 31% (excluding PPP gains) to a re
Slide 4: Positive Operating Leverage Drives Solid Returns
Positive Operating Leverage Drives Solid Returns 2021 4 *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 Adjusted Year Ended 2021 excludes gain on sale of PPP loans completed in Q2 2021 and PPP referral income received in Q2 2021. Adj
Slide 5: Strong Revenue and Profitability Momentum
Strong Revenue and Profitability Momentum Q4 2021 5 *Capital Markets consists of Mortgage Banking, SBA Lending, Corporate Advisory and Back-to-Back Swap fee income. 1 Q4 2021 Adjusted excludes loss on sale of loans completed in Q4 2021. 2 Q4 2021 Adjusted excludes expense related to swap valuation a
Slide 6: Quarterly Fee Income Improvement Driven by Wealth Management and Corporate Advisory
Quarterly Fee Income Improvement Driven by Peapack Private Wealth Management and Corporate Advisory 6 *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: 33% 31% 34% Q4 2019 Q4 2020 Q4 202
Slide 7: Peapack Private Wealth Management At A Glance
AUM/AUA (000s) Fees (000s) Peapack Private Wealth Management At A Glance 7 $11.1B AUMs/AUAs 38% EBITDA Margin 2,700 Relationships 23% Revenue 4-yr CAGR $4.2MM Avg Relationship $840MM 2021 Gross Inflows
Slide 8: Organic Growth and Market Action are Driving Better Margins
8 Peapack Private Wealth Management Organic Growth and Market Action are Driving Better Margins AUM/AUA (000s)
Slide 9: Commercial Banking At A Glance
Commercial Banking At A Glance (Excludes MFL and PPP*) 9 $2.7B Y/E Outstandings <1% Construction Exposure $4.9MM SBA Fees 55% of Total Loans $3.5MM Corp Advisory Fee Income (in millions) $1,585 14% 4-yr CAGR *MFL equals $1.6B as of 12/31/2021 and PPP equals $14MM as of 12/31/2021. $2,100 $2,474 $2,6
Slide 10: Commercial Banking Central to Core Deposit Growth
Commercial Banking Central to Core Deposit Growth 10 Full suite of digital and Treasury Mgmt solutions 17 BPS Core Deposit Cost “White Glove” Platinum Service Team $265MM Avg Deposits Per Branch $2.6MM in annual account analysis fees Core Deposits as a % of Total Deposits 12/31/2019 79% 12/31/2021 8
Slide 11: YTD Loan Growth: 8%
11 YTD Loan Growth: 8% *Excludes PPP Loans. **Excludes $167MM of undrawn lines of credit. $4,208MM* $1,553MM** ($580MM) ($351MM) $4,830MM* Weighted Avg Coupon Rate: 3.39% 12/31/2020 Total Loan Balance 12/31/2021 Total Loan Balance Other Accelerated Prepayments & Net LOC Draws Contractual Repayments
Slide 12: Net Interest Margin Improved and Will Expand with Rising Rates
NIM (as reported) (%) 12 Net Interest Margin Improved in 2021 and Will Expand with Rising Rates 1-Month Libor @ Period End 0.144% 0.111% 0.101% 0.080% 0.101% The anticipated impact to Net Interest Income from a +100 bps rate increase is conservatively estimated at 3% in Year 1 and 5% in Year 2. 40%
Slide 13: Balance Sheet Well Positioned for Future Rate Increases
Balance Sheet Well Positioned for Future Rate Increases 13 Note: Financial data as of September 30, 2021. Rate-sensitive assets defined as assets scheduled to mature or reprice within one year. Source: S&P Global Market Intelligence Rate-sensitive Assets / Total Assets (%) PGC Rank #1 of 14 PGC Rank
Slide 14: PGC's Valuation vs. Wealth Management Institutions
14 PGC’s Valuation vs. Wealth Management Institutions Indicates Significant Upside Share Price Potential Note: Pricing data as of January 20, 2022; TBV as reported for the period ended September 30, 2021 and not pro forma for pending acquisitions. Wealth Management Institutions: UVSP – Univest Finan
Slide 15: PGC Valuation: Sum-of-the-Parts Analysis
Assuming M&A EBITDA multiples of 12-15x for established and growing wealth management firms indicates substantial embedded value in PGC’s wealth business (AUMs/AUAs over $10B): PGC Valuation: Sum-of-the-Parts Analysis Indicates Significant Upside Share Price Potential 15
Slide 16: Compelling Investment Considerations
Current TBV multiple lags peers and wealth management institutions providing potential share price appreciation. $11.1B wealth management business with significant value. Wealth management, commercial banking and capital markets activities provide a diverse and stable revenue stream. Total fee incom
Slide 17: Appendix
Appendix Peapack-Gladstone Bank
Slide 18: Quarterly Income Statement Summary
Quarterly Income Statement Summary (Dollars in thousands, except per share data) 18 1 Q4 2021 Adjusted excludes loss on sale of loans of $265,000. 2 Q4 2021 Adjusted excludes expense related to swap valuation allowance of $893,000. Q3 2021 Adjusted excludes expense related to swap valuation of $1.4
Slide 19: Annual Income Statement Summary
Annual Income Statement Summary (Dollars in thousands, except per share data) 19 1 12/31/2021 Adjusted excludes gain on sale of $1.1 million, referral income of $722,000 related to PPP income, a benefit of $455,000 from life insurance proceeds, and $842,000 loss related to the unwinding of $40 milli
Slide 20: Quarterly Balance Sheet Summary
Quarterly Balance Sheet Summary (Dollars in thousands) 20 1 Includes PPP loans of $14 million at December 31, 2021, $49 million at September 30, 2021, and $196 million at December 31, 2020.
Slide 21: Asset Quality
Asset Quality 21 1 Increase at September 30, 2021 due to one large CRE loan with a retail component, located in Manhattan. 2 Amounts reflect TDRs that are paying according to restructured terms. 3 Amount excludes $1.1 million at December 31, 2021, $4.0 million at September 30, 2021, and $4.0 million
Slide 22: Capital Summary
Capital Summary 22 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 23: Quarter Non-GAAP Financial Measures Reconciliation
Quarter Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 23 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 24: Annual Non-GAAP Financial Measures Reconciliation
Annual 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 inter
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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