Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Investor Presentation (January 2019)
37 slides from Peapack-gladstone Financial's investor presentation, Jan 25, 2019
Slide 1: Investor Presentation: Expanding Our Reach
Investor Presentation “Expanding Our Reach” 12/31/2018 Peapack-Gladstone Bank Exhibit 99.1
Slide 2: Statement Regarding Forward-Looking Information
Statement Regarding Forward-Looking Information This report 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 expectations
Slide 3: Current Conditions
Coming off a very strong quarter and year. 2018 uncertainty carries into 2019: Highly competitive environment for commercial loans and core deposits. High deposit betas. Stock market volatility. Uncertain Fed activity / macroeconomic indicators. Priorities include: Continued caution, discipline, and
Slide 4: Quarterly Recap
Managed our balance sheet with a $131 million, fixed-rate multifamily loan sale: Average coupon 3.28%. $4.4 million pre-tax loss. Replaced with higher yielding, largely floating rate or short duration loans with an average coupon of 4.78%. Project full loss recapture in approximately 2 years. Deposi
Slide 5: Quarterly Recap
Reported EPS – $0.55 (Core $0.59)1 Reported ROA – 0.96% (Core 1.02%)1 Reported ROE – 9.32% (Core 9.89%)1 Non-interest income comprised 28% of total revenue driven by wealth management fee income, which totaled 21% of total revenue and increased 14% compared to Q4 2017. Peapack Private Wealth Managem
Slide 6: Investment Considerations
Attractive geographic franchise. Wealth management fee income provides a stable and predictable revenue stream over time. Well positioned for additional wealth acquisitions that are immediately accretive to earnings. Ongoing shift in loan mix to C&I, including equipment finance, will positively impa
Slide 7: PGC's Current Valuation vs. Wealth Management Peers
PGC’s Current Valuation vs. Wealth Management Peers Note: Pricing data as of January 23, 2019; financial data as reported for the nine months ended September 30, 2018 (YTD 2018); Peers are not pro forma for pending or recently closed acquisitions 1. Assumes annualized reported EPS for the nine month
Slide 8: PGC's Current Valuation vs. New Jersey Peers
PGC’s Current Valuation vs. New Jersey Peers Note: Pricing data as of January 23, 2019; financial data as reported for the nine months ended September 30, 2018 (YTD 2018); Peers are not pro forma for pending or recently closed acquisitions 1. Assumes annualized reported EPS for the nine months ended
Slide 9: Continued Forward Momentum
NPAs to Total Assets* Total Loans (in billions) Capital (in millions) Total Deposits (in billions) Continued Forward Momentum * The increase in NPA is 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
Slide 10: C&I Loans (includes Equipment Finance)
C&I Loans (includes Equipment Finance) (Dollars in Millions) YOY +46%
Slide 11: Yield on Loans and Cost of Deposits
Yield on Loans and Cost of Deposits
Slide 12: Loan Diversification – Transformation to C&I
C&I (Target: 40%-50%) Multifamily (Target: 15%-25%) CRE (Target 15%-20%) Residential and Consumer (Target 15%-20%) Loan Diversification – Transformation to C&I (as contemplated by our Strategic Plan) (as a % of total loans)
Slide 13: Financial Performance
Diluted Earnings per Share Pre-Tax Income (in millions) Revenue (in millions) Financial Performance YOY +24% YOY +17% Net Income (in millions) YOY +10% YOY +11% * See Non-GAAP financial measures on page 35.
Slide 14: Financial Performance
ROACE ROAA Financial Performance Tangible Book Value Per Share 2 * See Non-GAAP financial measures on page 35. 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
Slide 15: Peapack Private Wealth Management
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 Growth Initiatives: Completed the acquisition of Lassus Wherley on September 1, 20
Slide 16: Wealth Management Performance
Wealth Management Performance AUM / AUA (in billions) Fee Income (in millions) YOY +43% YOY +5%
Slide 17: 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 72% Wealth Management Fees 21% Fees & Other Inc 7% YTD 12/312018 Total Non-Interest Income: 24% of Total Revenue Net Interest Income before Pr
Slide 18: 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. Prudent expense management and operating efficiency. Continue Wealth Management growth – organic an
Slide 19: Considerable Growth Opportunity And Scale Gives Us Pricing Advantages
Considerable Growth Opportunity And Scale Gives Us Pricing Advantages Note: Deposit data as of 06/30/2018; pro forma for pending or recently completed M&A transactions; excludes non-retail branches Source: S&P Global Market Intelligence, FDIC
Slide 20: Net Interest Margin Targeted 2.80% to 2.85%
Net Interest Margin Targeted 2.80% to 2.85%
Slide 21: Our Priorities
Remain cautious, disciplined, and focused while continuing to execute our strategy – Expanding Our Reach. Expand NIM by re-mixing our loan portfolio into higher yielding C&I loans and driving reasonable priced core deposits. Grow fee income to 35% - 45% of total bank revenue (over next 2 – 3 years).
Slide 22: Appendix
Appendix Peapack-Gladstone Bank
Slide 23: Our Foundation
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 Core Principles Our Foundation
Slide 24: Private Banking Model
Senior Private Bankers lead a team-based approach. PGB offers a full suite of banking, commercial, and wealth management products to support client financial needs. Team members focus on understanding needs, goals, and aspirations with consideration of risk tolerance, time horizon, and other traditi
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: Franchise Overview
Financial Highlights Branch Map Franchise Overview NOTE: Financial data as of 12/31/2018. 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 30: Affluent Market
Affluent Market 1 Rank reflects ranking amongst all New Jersey counties. Note: Weighted average is calculated as the sum of (percent of state/national franchise * demographic item) within each market; banks, thrifts, and savings banks included (retail branches only). Source: S&P Global Market Intell
Slide 31: 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 (as of December 31, 2018) $543 million in cash and cash equivalents and securities designated as available for sale. Additional
Slide 32: 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 Q3 2018 included $319k of severance expense; $340k of investment banking fees related to the La
Slide 33: Asset Quality
Asset Quality 1 The increase in NPA is 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.
Slide 34: 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 36. 2. Tangible book value per share is calculated by dividing tangible equity by per
Slide 35: 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 36: 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 37: 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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