Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Investor Presentation (April 2019)
34 slides from Peapack-gladstone Financial's investor presentation, Apr 26, 2019
Slide 1: Investor Presentation: Expanding Our Reach
Investor Presentation “Expanding Our Reach” 03/31/2019 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: Quarterly Recap
Wealth management remains integral to our strategy. AUM/AUA grew to $6.3B up 9% from year end. Client inflows of AUM exceeded $300MM. Wealth management fee income reached a record $9.2MM and comprised 22% of total revenue. The loan portfolio continues to shift to higher yielding, relationship based
Slide 4: Quarterly Recap
Deposits, funding and interest rate risk continue to be actively managed: The loan-to-deposit ratio improved to 99.5%. The Company continues to have access to $1.3B of available secured funding at the Federal Home Loan Bank. Rick DeBel will be joining us from Wells Fargo as EVP, Deposit Solutions, a
Slide 5: Current Challenges and Priorities
CHALLENGES: Flat yield curve. Pace of digital transformation and associated risk. Changing macroeconomic data, including NJ’s fiscal challenges. Stock market volatility. Highly competitive environment for commercial loans and core deposits. Deposit repricing slowing in a flat to declining rate envir
Slide 6: Financial Metrics
NPAs to Total Assets* Total Loans (in billions) Capital (in millions) Total Deposits (in billions) Financial Metrics * 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 believe
Slide 7: C&I Loans
C&I Loans (Dollars in Millions) *Includes Equipment Finance loans totaling $429MM at 03/31/2019. *
Slide 8: 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 a % of total loans)
Slide 9: Financial Performance
Diluted Earnings per Share Pre-Tax Income (in millions) Revenue (in millions) Financial Performance YOY +6% YOY +2% Net Income (in millions) YOY +8% YOY +14%
Slide 10: Financial Performance
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 11: 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. Q1 Snapshot: Q1 2019 wealth fees totaled $9.17MM reflecting an increase of $807K or 10% f
Slide 12: Wealth Management Performance
Wealth Management Performance AUM / AUA (in billions) Fee Income (in millions) YOY +10%
Slide 13: 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 22% Fees & Other Inc 6% QTD 03/31/2019 Net Interest Income before Provision Wealth Management Fee Income Fees & Oth
Slide 14: Profitability Targets
How Do We Get There: Continue migration of loan portfolio from lower yielding, fixed rate multifamily (“MFL”) to higher yielding, adjustable rate and shorter duration C&I, ultimately leading to NIM expansion. Business as usual expense management and operating efficiency. Continue Wealth Management g
Slide 15: Considerable Growth Opportunity And Scale Gives Us Pricing Advantages
Considerable Growth Opportunity And Scale Gives Us Pricing Advantages *Peapack-Gladstone Financial data as of 12/31/2018; all other deposit data 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, F
Slide 16: Net Interest Margin
Net Interest Margin* Targeted 2.75% to 2.80% 2.95% to 3.00% *Targets may be difficult to attain if the shape of the current yield curve remains for an extended period of time.
Slide 17: 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 18: PGC's Current Valuation vs. Wealth Management Peers
PGC’s Current Valuation vs. Wealth Management Peers Note: Pricing data as of April 15, 2019; TBV and LTM EPS as reported for the twelve months ended December 31, 2018 and not pro forma for pending acquisitions Wealth Management Peers: UVSP – Univest Financial Corp., CATC – Cambridge Bancorp, BMTC –
Slide 19: PGC's Current Valuation vs. New Jersey Peers
PGC’s Current Valuation vs. New Jersey Peers Note: Pricing data as of April 15, 2019; TBV and LTM EPS as reported for the twelve months ended December 31, 2018 NJ Peers: CNOB–ConnectOne Bancorp; LBAI–Lakeland Bancorp; OCFC–OceanFirst Financial Corp.; VLY–Valley National Bancorp; PFS–Provident Financ
Slide 20: Appendix
Appendix Peapack-Gladstone Bank
Slide 21: 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 22: Private Banking: All Banking Should Be Private Banking
Senior Private Bankers lead a team-based approach. PGB offers a full suite of banking, commercial, advisory and wealth management services to support client financial needs. Team members focus on understanding needs, goals, and aspirations with consideration of risk tolerance, time horizon, and othe
Slide 23: 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 24: 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 25: 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 26: 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 27: Franchise Overview
Financial Highlights Branch Map Franchise Overview NOTE: Financial data as of 03/31/2019. 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 28: 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 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 $629 million in cash and cash equivalents and securities. Additional unused borrowing capacity of $1.3 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 Q3 2018 included $319k of severance expense; $340k of investment banking fees related to the La
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.
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 per
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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