Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Investor Presentation (July 2019)
34 slides from Peapack-gladstone Financial's investor presentation, Jul 26, 2019
Slide 1: Investor Presentation: Expanding Our Reach
Investor Presentation “Expanding Our Reach” 06/30/2019 Peapack-Gladstone Bank 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: Franchise Overview: Financial Highlights and Branch Map
Financial Highlights Branch Map Franchise Overview NOTE: Financial data as of 06/30/2019. Private Banking Offices Bedminster, NJ Morristown, NJ Princeton, NJ Teaneck, NJ Fairfield, NJ Gladstone, NJ Greenville, DE (Trust Subsidiary) New Providence, NJ Bonita Springs, FL Headquarters Bedminster, NJ Ye
Slide 4: A high-performing boutique bank leading in wealth, lending and deposits
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 Senior Private Bankers lead a team-based approach. PGB
Slide 5: Investment Considerations
Compelling valuation, especially relative to Wealth Management focused peers. Wealth management fee income provides a stable and predictable revenue stream over time. Recently announced stock repurchase program to effectively manage excess capital. Moody’s investment grade of Baa3. Attractive geogra
Slide 6: PGC's Current Valuation vs. Wealth Management Peers
PGC’s Current Valuation vs. Wealth Management Peers Note: Pricing data as of July 22, 2019; TBV and LTM EPS as reported for the twelve months ended June 30, 2019 and not pro forma for pending acquisitions Wealth Management Peers: UVSP – Univest Financial Corp., CATC – Cambridge Bancorp, BMTC – Bryn
Slide 7: Wealth Management Provides a Diversified Revenue Mix
1. Includes SBA Income, Swap Income, Deposit & Loan Fees, Mortgage Banking, and BOLI Wealth Management Provides a Diversified Revenue Mix Net Interest Income 69% Wealth Management Fees 23% Fees & Other Inc 8% QTD 06/30/2019 Net Interest Income before Provision Wealth Management Fee Income Fees & Oth
Slide 8: Quarterly Recap: Yield Curve Impacting Financial Performance
Quarterly Recap Yield Curve Impacting our Financial Performance Source: S&P Global Market Intelligence
Slide 9: Quarterly Recap
Wealth management remains integral to our strategy: On July 3rd, announced agreement to acquire Point View Wealth Management. AUM/AUA grew to $6.6B. Client inflows of AUM exceeded $120MM for the quarter. Wealth management fee income for the quarter reached a record $9.6MM, reflecting an 18% increase
Slide 10: Quarterly Recap: Deposits, Funding and Earnings
Deposits, funding and interest rate risk continue to be actively managed: Total checking deposits increased $188MM in the quarter, as the loan-to-deposit ratio improved to 98.5%. The Company continues to have access to $1.4B of available secured funding at the Federal Home Loan Bank. Rick DeBel join
Slide 11: Wealth Management Vision and Recent Acquisitions
Our Vision: A leading New York metro-area wealth management boutique, offering superior advice delivered by top quality professionals, with a differentiated client experience compared to large bank competitors. Recent Acquisitions: Murphy Capital, 8/1/17, Gladstone NJ, AUM: approximately $850MM. Qua
Slide 12: Wealth Management Performance
Wealth Management Performance AUM / AUA (in billions) Fee Income (in millions) YOY +14%
Slide 13: Loan Portfolio Transformation
Note: Gross loans include loans held for sale. MFL 28% Target 20% - 30% CRE 17% Target 15% - 20% C&I 38% Target 35% - 45% Resi/Cons 17% Target 15% - 20% Resi /Cons 54% C&I 10% CRE 22% MFL 14% Loan Mix As of June 30, 2019 Loan Mix As of December 31, 2012 Gross Loans: $1,153 million Gross Loans: $4,03
Slide 14: C&I Loans
C&I Loans (Dollars in Millions) Includes Equipment Finance loans totaling $504MM at 06/30/2019. CAGR: 56%
Slide 15: Diversification within C&I Lending
Diversification within C&I Lending The yield on the C&I portfolio was 4.87% for the six months ended June 30, 2019.
Slide 16: Declining Commercial Real Estate Concentration
Declining Commercial Real Estate Concentration Multifamily portfolio primarily consists of agency qualified workforce housing loans which have proven to be very liquid with low credit risks. De minimis Construction & Development exposure (under $1MM). 448% 564% 695% 594% 466% 394% 375%
Slide 17: Financial Performance
NPAs to Total Assets* Total Loans (in billions) Capital (in millions) Total Deposits (in billions) Financial Performance * The increase in NPA in 2018 was due to the addition of one healthcare real estate secured loan, totaling $15 million, which continues to pay as agreed, and which the Company bel
Slide 18: Financial Performance: EPS, Income and Revenue
Diluted Earnings per Share Pre-Tax Income (in millions) Revenue (in millions) Financial Performance YOY +1% YOY (2%) Net Income (in millions) YOY +6% YOY +4%
Slide 19: Financial Performance: ROAE, ROAA, Tangible Book Value
ROAE ROAA Financial Performance Tangible Book Value Per Share 2 1 Efficiency Ratio calculated by dividing total noninterest expense, by net interest income and total noninterest income. 2 Tangible book value per share is calculated by dividing tangible equity by period end common shares outstanding.
Slide 20: How Do We Get There: Profitability Targets
How Do We Get There: Continue migration of loan portfolio from lower yielding, fixed rate multifamily to higher yielding, adjustable rate and shorter duration C&I, ultimately leading to NIM expansion. Additional scale, expense management and resultant operating efficiency. Continue Wealth Management
Slide 21: Net Interest Margin
Net Interest Margin* Targeted 2.75% to 2.80% *Targets may be difficult to attain if the shape of the current yield curve remains for an extended period of time. 2.70% to 2.75% 2.95% to 3.00%
Slide 22: Contractual 2019-2021 Multifamily Repricing
Contractual 2019-2021 Multifamily Repricing PGB has $577MM of multifamily loans with a WAC of 3.27% that will reach contractual repricings or maturities over the next 2.5 years.
Slide 23: Priorities
Reprice deposits down. Continue our C&I growth strategy. Continue to grow fee income to 35% - 45% of total bank revenue with emphasis on our wealth management business, organically and through acquisition. Effective management of capital (growth, acquisition, dividend, stock repurchase). Align our a
Slide 24: Appendix
Appendix Peapack-Gladstone Bank
Slide 25: Management Team
Douglas L. Kennedy President & Chief Executive Officer 908.719.6554 40 years experience; Before joining in 2012, he served as President of the NJ Market for Capital One Bank. He has held key executive level positions and had great success building formidable regional and national specialty banking b
Slide 26: Management Team
Lisa P. Chalkan Executive Vice President, Chief Credit Officer 908.719.6552 33 years experience; Before joining in 2015, she held executive positions as SVP, Head of Commercial Credit Policy, Director of Loan Administration/Commercial Banking, and Manager of Middle Market Underwriting at Capital One
Slide 27: Management Team
Brydget Falk-Drigan Executive Vice President, Chief Human Resources Officer 908.719.3315 27 years experience; Prior to joining in 2018, she served as Leader, Global Talent Solutions and People Operations, Leader, Global Talent Acquisition, and Leader, Employee Engagement and Internal Communications
Slide 28: Management Team
Kevin Runyon Executive Vice President, Chief Information Officer & Chief Digital Officer 908.806.3060 34 years experience; Prior to joining in 2014, he served as Managing Director of All Covered, a Division of Konica Minolta in Cherry Hill, NJ, where he was responsible for the delivery of technology
Slide 29: Capital, Liquidity, & Interest Rate Risk Management
Balance sheet risk management includes stress testing: Capital Quarterly stress testing (top down/bottom up). Remain well-capitalized under our stress scenarios. Liquidity $688 million in cash and cash equivalents and securities. Additional unused borrowing capacity of $1.4 billion available at the
Slide 30: Quarterly Income Statement Summary
Quarterly Income Statement Summary (Dollars in thousands, except per share data) 1 Efficiency Ratio calculated by dividing total noninterest expense, by net interest income and total noninterest income. 2 Q4 2018 included $4.4mm of loss on sale of MFL; $3mm of life insurance proceeds related to MCM
Slide 31: Asset Quality
Asset Quality 1 The increase in NPA in the December 2018 quarter was due to the addition of one healthcare real estate secured loan, totaling $15 million, which continues to pay as agreed, and which the Company believes to be well secured. In addition, the June 2019 balance includes one $7 million c
Slide 32: Capital Summary
Capital Summary 1 Tangible equity as a percentage of tangible assets at period end is calculated by dividing tangible equity by tangible assets at period end. See non-GAAP financial measures reconciliation on page 33. 2 Tangible book value per share is calculated by dividing tangible equity by perio
Slide 33: Non-GAAP Financial Measures Reconciliation
Non-GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 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 asse
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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