Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q3 2020 Earnings Presentation
30 slides from Peapack-gladstone Financial's earnings presentation, Oct 28, 2020
Slide 1: Q3 2020 Investor Update (and Supplemental Financial Information)
Q3 2020 Investor Update (and Supplemental Financial Information) 09.30.2020 Peapack-Gladstone Bank The Q3 2020 Investor Update (and Supplemental Financial Information) should be read in conjunction with the Form 8-K Q3 2020 Earnings Release. 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: Investment Considerations
Trading at a substantial discount to tangible book value creates a significant upside. Niche wealth management and commercial banking strategy with a proven track record of delivering strong organic growth. Demonstrated ability to acquire and integrate wealth management businesses that are immediate
Slide 4: Deferrals within Sectors with Elevated COVID Residual Risk Estimated at 2% of Total Loans
Deferrals within Sectors with Elevated COVID Residual Risk Estimated at 2% of Total Loans “Highly Impacted” residual sectors highlighted in green Overall The sectors designated by management to have elevated COVID residual risk total $314MM, ~7% of Total Loans (as of 09/30/20). Approximately 1/3rd o
Slide 5: Rapid Roll-Off of Remaining Deferred Loans Through Year End
Rapid Roll-Off of Remaining Deferred Loans Through Year End (Deferrals through October 2020)
Slide 6: Risk Mitigants within Sectors with Elevated COVID Residual Risk
Risk Mitigants within Sectors with Elevated COVID Residual Risk
Slide 7: Risk Mitigants within Sectors with Elevated COVID Residual Risk
Risk Mitigants within Sectors with Elevated COVID Residual Risk Hospitality First mortgages on flagged properties located in NJ/NY with experienced multi-property operators. Monitoring individual property performance along with market specific data in terms of vacancy and average daily rates. Food S
Slide 8: Workout and Asset Recovery Efforts Reduced Classified Assets in Q3
$63.6 MM $41.3 MM ($20.5) MM ($7.1) MM $5.3 MM Workout and Asset Recovery Efforts Reduced Classified Assets in Q3
Slide 9: Loans in Elevated COVID Risk Sectors Drive Increase in Special Mention (Criticized)
Loans in Sectors with Elevated COVID Residual Risk Drive Increase in Special Mention (Criticized) $28.0 MM $129.7 MM ($2.8) MM $24.2 MM $46.8 MM ($5.0) MM $20.2 MM $18.3 MM LTV = 52% DSCR = 1.60x LTV = N/A DSCR = 1.92x LTV = 61% DSCR = 1.57x (Special Mention) (Special Mention)
Slide 10: Capital Stress Testing Reflects Bank Remains Well Capitalized With Pandemic Overlay
Capital Stress Testing Reflects Bank Remains Well Capitalized Even With A Pandemic Overlay Quarterly Capital Stress Testing run under multiple scenarios based on Loan Risk Ratings. In the 06/30/20 severely adverse case, no growth scenario, the Bank remains well capitalized over a two-year stress per
Slide 11: Conservatively Building Our Reserves in light of Inherent Risks
Conservatively Building Our Reserves in light of Inherent Risks with the Current Economic Environment NOTE: The September 30, 2020 ALLL coverage ratios exclude PPP loans of $202 million from total loans. $43.7 MM $66.1 MM ($6.2) MM $8.5 MM $21.5 MM 0.99% 1.56% Total ALLL Coverage % ($1.4) MM
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Mix as of 09/30/2020 Gross Loans: $4,459 million Note: Gross loans include loans held for sale.
Slide 13: Diversification within C&I Lending
Diversification within C&I Lending C&I Loans (excluding PPP) constitute 38% of the total loan portfolio.
Slide 14: Well-Seasoned Diversified Multifamily Loan Portfolio
Well-Seasoned Diversified Multifamily Loan Portfolio Multifamily Portfolio Balance % (in $MM's) NY (Rent Regulated) $404 34.6% NY (Market Rent) $37 3.2% NJ (Rent Regulated) $301 25.7% NJ (Market Rent) $152 13.0% PA (Rent Regulated) $19 1.6% PA (Market Rent) $256 21.9% TOTAL $1,169 100.0% Rent Regula
Slide 15: A Well-Diversified Non-Owner Occupied CRE Portfolio
A Well-Diversified Non-Owner Occupied CRE Portfolio Non-Owner Occupied CRE constitutes 16% of the total loan portfolio. LTV 54.7% DSCR 1.66x Debt Yield 13.0%
Slide 16: Fortress Balance Sheet
Fortress Balance Sheet 1 Substantially all of the Bank's loans and securities are pledged for back up liquidity purposes. 2 Net of $120m of term borrowing. 3 Excludes securities, the majority of which are pledged against secured funding. Peapack-Gladstone Financial Corp. Fortress Balance Sheet as of
Slide 17: Managing Our Balance Sheet Through COVID
NPAs to Total Assets** Total Loans (in billions) Capital (in millions) Total Deposits (in billions) Managing Our Balance Sheet Through COVID* *Includes PPP loans of $202MM in total loans. **NPAs to Total Assets excludes one $10MM HFS commercial loan at September 30, 2020.
Slide 18: Wealth Management and Other Fees Provide a Diversified Revenue Mix
1 Includes SBA Income, Swap Income, Deposit & Loan Fees, Mortgage Banking, and BOLI. Net Interest Income 67% Wealth Management Fees 21% Fees & Other Inc 12% Nine Months Ended 09/30/2020 Net Interest Income before Provision Wealth Management Fee Income Fees & Other Income 1 Total Non-Interest Income:
Slide 19: Wealth Management Vision and Q3 2020 Update
Our Vision: A leading wealth management boutique, offering superior advice delivered by top quality professionals, with a differentiated client experience compared to large bank competitors. Q3 2020: AUMs/AUAs at 09/30/2020 were a record $7.6B, which includes YTD gross client inflows of $528MM. Weal
Slide 20: Priorities
Continued emphasis on the health and safety of our employees and clients. Actively manage credit risk associated with the COVID-19 pandemic. Grow and expand our core Wealth Management and Commercial Banking businesses. Prudently manage costs, capital and liquidity, but remain opportunistic for accre
Slide 21: Appendix
Appendix Peapack-Gladstone Bank
Slide 22: Franchise Overview and Financial Highlights
Financial Highlights Branch Map Franchise Overview NOTE: Financial data as of 09/30/2020. Private Banking Offices Bedminster, NJ Morristown, NJ Princeton, NJ Teaneck, NJ Greenville, DE (Trust Subsidiary) New Providence, NJ Summit, NJ Bonita Springs, FL Headquarters Bedminster, NJ Year Founded 1921 B
Slide 23: Attractive Franchise: Top Wealthiest Counties in the United States
Attractive Franchise We Operate in 3 of the Top 10 Wealthiest Counties in the United States Branch/Deposit Share: FDIC 06/30/2020
Slide 24: A High-Performing Boutique Bank
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 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: Quarterly Income Statement Summary
Quarterly Income Statement Summary (Dollars in thousands, except per share data) 1 Includes gain on sale of $7.4 million for the sale of $355 million in PPP loans for the quarter ended September 30, 2020. 2 The March, June and September 2020 quarters included a higher provision for loan and lease lo
Slide 27: Asset Quality
Asset Quality 1 Excludes one commercial loan held for sale of $10 million at September 30, 2020. 2 Amount does not include $15.2 million at September 30, 2020, $23.2 million at June 30, 2020, $25.9 million at March 31, 2020, $25.8 million at December 31, 2019, and $19.7 million at September 30, 2019
Slide 28: Capital Summary
Capital Summary 1 PPP loans with a balance of $202 million increased our total assets at September 30, 2020. Equity to total assets would be 9.08% if PPP loans were excluded from total assets. 2 Tangible equity as a percentage of tangible assets at period end is calculated by dividing tangible equit
Slide 29: 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 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 Jeffrey J. Carfora Senior EVP & Chief Financial Officer (908) 719-4308
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