Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Investor Presentation (October 2019)
38 slides from Peapack-gladstone Financial's investor presentation, Oct 25, 2019
Slide 1: Investor Presentation: Expanding Our Reach
Investor Presentation “Expanding Our Reach” 09/30/2019 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 Branch Map Franchise Overview NOTE: Financial data as of 09/30/2019. Private Banking Offices Bedminster, NJ Morristown, NJ Princeton, NJ Teaneck, NJ Fairfield, NJ Gladstone, NJ Greenville, DE (Trust Subsidiary) New Providence, NJ Summit, NJ Bonita Springs, FL Headquarters Bedmin
Slide 4: A high-performing boutique bank, leaders 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
For Q3 2019, year-over-year revenue growth of $5.4MM or 14%. 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 immediately accretive to earnings.
Slide 6: Governance, diversity and community involvement
95% of the Board of Directors, including the Chairman, are independent (only the CEO is not independent). Awarded the 2019 Executive Women of NJ Corporate Board Gender Diversity Award recognizing PGC for having 3 or more female directors. 35% of senior officers are female. Named a “Best Banks to Wor
Slide 7: Attractive Franchise
Attractive Franchise We Operate in 3 of the Top 10 Wealthiest Communities in the United States Branch/Deposit Share: FDIC 06/30/2019 County Median Household Income # of PGB Branches Deposit Market Share Peapack-Gladstone Bank Deposits Peapack Private AUA Hunterdon County $105K 4 #6 $415MM $213MM Som
Slide 8: Wealth Management and Commercial Banking Provide a Diversified Revenue Mix
1 Includes SBA Income, Swap Income, Deposit & Loan Fees, Mortgage Banking, and BOLI 2 Wealth Management Peers: UVSP – Univest Financial Corp., CATC – Cambridge Bancorp, BMTC – Bryn Mawr Bank Corp, WASH – Washington Trust Bancorp, and TMP - Tompkins Financial Corporation Wealth Management and Commerc
Slide 9: PGC's Current Valuation vs. Wealth Management Peers
PGC’s Current Valuation vs. Wealth Management Peers Note: Pricing data as of October 23, 2019; TBV and LTM EPS as reported for the quarter ended September 30, 2019 and not pro forma for pending acquisitions Wealth Management Peers: UVSP – Univest Financial Corp., CATC – Cambridge Bancorp, BMTC – Bry
Slide 10: Quarterly Recap
Quarterly Recap Yield Curve Impacting our Financial Performance Source: S&P Global Market Intelligence
Slide 11: Expanding Our Reach strategy and digital review
We conducted a comprehensive review of our digital offerings and client experience: Our Strategy, “Expanding Our Reach” continues to be relevant. Digital is rapidly becoming the “standard” delivery channel. By leveraging continuous client feedback, we can implement digital technology enhancements in
Slide 12: Growth in Commercial Banking
Growth in Commercial Banking: Total C&I loans (including Equipment Financing) increased $56MM in the quarter, and comprise 38% of the total loan portfolio. C&I momentum continues to build, and loan pipelines remain strong at the end of the quarter. Deposits, funding and interest rate risk continue t
Slide 13: Wealth Management vision and 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: Point View Wealth Management, 9/1/19, Summit NJ, AUM: approximately
Slide 14: Wealth Management Performance
Wealth Management Performance AUM / AUA (in billions) Fee Income (in millions) YOY +14%
Slide 15: Loan Portfolio Transformation
Note: Gross loans include loans held for sale. MFL 29% Target 20% - 30% CRE 17% Target 15% - 20% C&I 38% Target 35% - 45% Resi/Cons 16% Target 15% - 20% Resi /Cons 54% C&I 10% CRE 22% MFL 14% Loan Mix As of September 30, 2019 Loan Mix As of December 31, 2012 Gross Loans: $1,153 million Gross Loans:
Slide 16: C&I Loans
C&I Loans (Dollars in Millions) Includes Equipment Finance loans totaling $547MM at 09/30/2019. CAGR: 54%
Slide 17: Diversification within C&I Lending
Diversification within C&I Lending The yield on the C&I portfolio was 4.87% for the nine months ended September 30, 2019.
Slide 18: Commercial Real Estate Concentration
Commercial Real Estate Concentration De minimis Construction & Development exposure (under $5MM). 448% 564% 695% 594% 466% 394% 390%
Slide 19: Multifamily Loan Portfolio
Multifamily Loan Portfolio Multifamily Portfolio Balance % (in $MM's) NY (Rent Regulated) $491 41% NY (Market Rent) $29 2% NJ (Rent Regulated) $263 22% NJ (Market Rent) $178 15% PA (Rent Regulated) $25 2% PA (Market Rent) $211 18% TOTAL $1,197 100% Rent Regulated $779 65% Market Rent $418 35% TOTAL
Slide 20: NYC Rent Regulated MFL Portfolio
NYC Rent Regulated MFL Portfolio NYC Rent Regulated Portfolio Stats: Total Portfolio: $491MM Current LTV: 61% Current DSCR: 1.54X Current Debt Yield: 10% Current Delinquency Rate: 0% We believe the impact of recently implemented NY Rent Regulation laws on our portfolio will be minimal, as we underwr
Slide 21: Financial Performance
NPAs to Total Assets Total Loans (in billions) Capital (in millions) Total Deposits (in billions) Financial Performance
Slide 22: Financial Performance: EPS, Income, Revenue
Diluted Earnings per Share Pre-Tax Income (in millions) Revenue (in millions) Financial Performance YOY +5% YOY +3% Net Income (in millions) YOY +8% YOY +10% * * * Impacted by 2019 higher effective tax rate.
Slide 23: 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 24: How Do We Get There: Profitability Targets
How Do We Get There: Continued remix of loan portfolio with focus on higher yielding, adjustable rate and shorter duration C&I, ultimately leading to NIM expansion. $565MM of multifamily loans with a WAC of 3.27% will reach contractual repricing or maturity over the next 2.25 years. Additional scale
Slide 25: Net Interest Margin
Net Interest Margin “Core” margin relatively stable over periods shown. Given the extended inverted yield curve as well as the prospects for continued Fed rate decreases in the near term, we cannot commit to a 2.95% to 3.00% margin by the end of 2021; we still believe our margin will improve over a
Slide 26: Contractual 2019-2021 Multifamily Repricing
Contractual 2019-2021 Multifamily Repricing PGB has $565MM of multifamily loans with a WAC of 3.27% that will reach contractual repricings or maturities over the next 2.25 years.
Slide 27: Priorities
Continue to grow and expand our Wealth Management and Commercial Banking businesses. Grow fee income to 35% - 45% of total bank revenue with emphasis on growing our wealth management business, organically and through acquisition. Continue to focus on core deposit growth and repricing; our new Chief
Slide 28: Appendix
Appendix Peapack-Gladstone Bank
Slide 29: 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 30: Management team
Lisa P. Chalkan Senior Vice President, Deputy 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
Slide 31: 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 32: 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 33: 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 $585 million in cash and cash equivalents and securities. Additional unused borrowing capacity of $1.4 billion available at the
Slide 34: 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. Income Statement Data: 9/30/2019 6/30/2019 3/31/2019 12/31/2018 9/30/2018 Net interest income $ 3
Slide 35: Asset Quality
Asset Quality 1 The increase in nonaccrual loans in the December 2018 quarter was due to the addition of one healthcare real estate secured loan, totaling $15 million. In addition, the June 2019 balance includes one $7 million casual dining commercial banking relationship. 2 The $6.3 million at Sept
Slide 36: 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 37. 2 Tangible book value per share is calculated by dividing tangible equity by perio
Slide 37: 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 38: Peapack-Gladstone Financial Corporation 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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