Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Investor Presentation (October 2018)
35 slides from Peapack-gladstone Financial's investor presentation, Oct 29, 2018
Slide 1: Investor Presentation: Expanding Our Reach
Investor Presentation “Expanding Our Reach” 09/30/2018 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 include expressions about Management’s strategies and Management’s expectations abo
Slide 3: Quarterly Recap
Reported EPS – $0.56* (Core $0.60) Reported ROA – 0.99%* (Core 1.06%) Reported ROE – 9.68%* (Core 10.34%) Non-interest income comprised 28% of total revenue driven by wealth management fee income, which totaled 21% of total revenue and increased 42% compared to Q3 2017. Closed on the acquisition of
Slide 4: Quarterly Recap
C&I Loans increased by $111 million, and now comprise 31% of the total loan portfolio. Deposit growth of $136 million funded loan growth, reduction in overnight borrowings, and an increase in balance sheet liquidity. The core NIM declined due to higher deposit costs driven by an extremely competitiv
Slide 5: Investment Considerations
Attractive geographic franchise. Wealth management focus provides a stable and predictable revenue stream and an enviable fee revenue mix. Well positioned for additional wealth acquisitions that are immediately accretive to earnings. Ongoing shift in loan mix (decreasing MFL, increasing C&I) will po
Slide 6: 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 7: 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 8: Continued Forward Momentum
NPAs to Total Assets Total Loans (in billions) Capital (in millions) Total Deposits (in billions) Continued Forward Momentum
Slide 9: C&I Loans
C&I Loans (Dollars in Millions) +23% YTD Growth 31% Annualized
Slide 10: Yield on Loans and Cost of Deposits
Yield on Loans and Cost of Deposits YTD
Slide 11: Loan Diversification – Transformation to C&I
C&I Multifamily CRE Residential and Consumer Loan Diversification – Transformation to C&I (as a % of total loans)
Slide 12: Financial Performance
Diluted Earnings per Share Pre-Tax Income (in millions) Revenue (in millions) Financial Performance YOY +28% YOY +19% Net Income (in millions) YOY +11% YOY +8%
Slide 13: Financial Performance
ROACE ROAA Financial Performance Tangible Book Value Per Share 1 1 Tangible book value per share is calculated by dividing tangible equity by period end common shares outstanding. See Non-GAAP financial measures on page 34. GAAP Efficiency Ratio
Slide 14: 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 15: Wealth Management Performance
Wealth Management Performance AUM / AUA (in billions) Fee Income (in millions) YOY +57% 9/30/17 9/30/18 YTD +16%
Slide 16: 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 9/30/2018 Total Non-Interest Income: 23% of Total Revenue Net Interest Income before Pr
Slide 17: Profitability Targets
How Do We Get There: Wealth Management growth – organic and acquisition. 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. Further efficiencies. Profitability Targets Met
Slide 18: 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 19: Net Interest Margin Targeted 2.98% to 3.02%
Net Interest Margin Targeted 2.98% to 3.02%
Slide 20: Key Metrics vs. Wealth Management Peers
Key Metrics vs. Wealth Management Peers Total Fee Income / Revenue – YTD 2018 Net Interest Margin – YTD 2018 ¹ Note: Financial data as reported for the six months ended June 30, 2018 (YTD 2018) 1. Assumes annualized net interest margin for the six months ended June 30, 2018 Peers are UVSP – Univest
Slide 21: PGC's Current Valuation vs. Wealth Management Peers
[The market would imply that our stock is undervalued as PGC currently trades at lower multiples than our wealth management peers.] PGC’s Current Valuation vs. Wealth Management Peers Note: Pricing data as of October 24, 2018; financial data as reported for the nine months ended September 30, 2018 (
Slide 22: Our Priorities
Expand NIM by re-mixing our loan portfolio into higher yielding C&I loans and driving reasonable priced core deposits. Grow fee revenue to 35% - 45% of total revenue. Effectively manage capital, interest rate risk, and liquidity. Integrate our acquired wealth management businesses under a common “Pe
Slide 23: Appendix
Appendix Peapack-Gladstone Bank
Slide 24: 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 25: 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 26: 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 27: Management Team
Kevin Runyon Executive Vice President, Chief Information 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 and IT compliance-relat
Slide 28: Franchise Overview
Financial Highlights Branch Map Franchise Overview NOTE: Financial data as of 09/30/2018. Private Banking Offices Bedminster, NJ Morristown, NJ Princeton, NJ Teaneck, NJ Fairfield, NJ Gladstone, NJ Greenville, DE (Trust Subsidiary) New Providence, NJ Headquarters Bedminster, NJ Year Founded 1921 Bra
Slide 29: 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 Intel
Slide 30: 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 September 30, 2018) $496 million in cash and cash equivalents and securities designated as available for sale. Additional
Slide 31: 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. The September 2018 quarter included $319,000 of severance expense related to the elimination
Slide 32: Asset Quality
PEAPACK-GLADSTON! e owned Total nonperforming assets Nonperforming loans to total loans Nonperforming assetsto total assets Performing TORS Loans past due 30through 89 days and still accruing Classified loans Impaired loans Allowance for loan and lease losses: End of period ALLL to nonperformingloan
Slide 33: 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 34. 2. Tangible book value per share is calculated by dividing tangible equity by per
Slide 34: 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 35: 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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