Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Shareholder Meeting (April 2015)
43 slides from Peapack-gladstone Financial's shareholder meeting presentation, Apr 28, 2015
Slide 1: Executing Our Strategy: Expanding Our Reach
Executing Our Strategy “Expanding Our Reach” Annual Meeting April 28, 2015 P EAPACK - G LADSTONE B ANK
Slide 2: Vision Statement
A high - performing boutique bank, leaders in wealth, lending and deposit solutions, known nationally for our unparalleled client service, integrity and trust. Confidential 2 Vision Statement
Slide 3: Company Profile
• Wealth led relationship - based commercial bank headquartered in “wealth belt” of New Jersey delivering private bank level service • 94 years in business • Strong leadership team • Growth Strategy – “Expanding Our Reach” – launched in Q1 2013 • Four Private Banking locations: Bedminster, Morristow
Slide 4: Our Strategy is Delivering Positive Results
4 Confidential Our Strategy is Delivering Positive Results (In Billions) 2.30 1.52 1.13 2.69 1.65 1.57 2.99 2.30 2.25 0.75 1.25 1.75 2.25 2.75 3.25 Wealth Division Assets Under Administration Total Deposits Total Loans 2012 2013 2014
Slide 5: Key Performance Metrics
Key Performance Metrics (Dollars in Millions) Confidential 5 2012 2013 2014 Private Wealth Management Fee Income $12.3 $13.8 $15.2 Assets Under Administration $2,304 $2,691 $2,987 Commercial Private Banking CRE Loans $258 $290 $308 Multifamily Loans $162 $542 $1,080 C&I Loans $125 $138 $315 Total Co
Slide 6: 2014 A Year of Accomplishment
Confidential 6 Balance Sheet / P&L Records YOY % Growth Total Assets $2.7 Billion + 37% Total Customer Deposits* $2.0 Billion + 21% Total Loans Closed $1.1 Billion + 38% Total Loans Outstanding $2.3 Billion + 43% Total Capital $242.3 Million + 42% Net Income $14.9 Million + 61% Wealth Management AUA
Slide 7: Capital Raised in 2014 to Support Continued Execution
Confidential Great Execution Achieved Our Goal How We Are Using the Money • $50 million target • At - The - Market (ATM) process for cost effectiveness and efficiency • Attractive weighted average price ($18.01 per share) • Support growth for the foreseeable future • New institutional shareholders •
Slide 8: The Peapack-Gladstone Private Banking Model
Confidential 8 The Peapack - Gladstone Private Banking Model • Full service banking with every conversation central to helping clients create , accumulate , protect and eventually distribute their wealth • Deep understanding of our clients needs , goals and aspirations • It’s about them, not about u
Slide 9: Private Banking
Confidential Private Banking 9
Slide 10: PGB's Life Cycle Approach To Private Banking
Starting/Growing Your Business Beginning Your Career Expanding Your Business Career Ascension Transitioning Your Business Executive Leadership Your Legacy PGB’s Life Cycle Approach To Private Banking CREATE ACCUMULATE PROTECT DISTRIBUTE Confidential 10
Slide 11: Our Private Banking Business Model is Built on Time-Tested Principles
Our Private Banking Business Model is Built on PGB’s Time - Tested Principles Confidential 11 • Professionalism • Clients First • Compete to Win • Invested in Our Community • One Team
Slide 12: Our Private Banking Model Addresses Market Opportunities
Confidential Our Private Banking Model Addresses a Number of Market Opportunities • We are known as the bank for the affluent and have an established core competency in wealth management • Favorable macro economic trends regarding wealth accumulation • The metro New York MSA has a plethora of these
Slide 13: Drive Sales Efforts and Revenue Generation
Confidential Drive Sales Efforts and Revenue Generation Future Outlook • Aggressively introduce our wealth capabilities • Partner with Retail and Commercial • Wealth is at the forefront of every conversation 13 Core Strategies • Recruit additional proven Wealth Private Bankers • Team approach with a
Slide 14: Acquisition of Wealth Management Consultants LLC
Confidential 14 Acquisition of Wealth Management Consultants LLC • Largely strategic driven: x Executive Leadership of Wealth Management Consultants (WMC) remains unchanged x Adds additional depth to our capability to provide expert advice x Augments our ability to deliver advice led wealth solution
Slide 15: PGB Wealth Trends are Positive
Confidential 15 $2.0 $ 2.3 $ 2.7 $3.0 $3.5 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 2011 2012 2013 2014 Pro-Forma* PGB Wealth Trends are Positive Assets Under Administration ($ Billions) *Includes pro - forma for Q1 results plus acquisition of Wealth Management Consultants, LLC
Slide 16: Commercial Private Banking: CRE, Multifamily and C&I Lending
Confidential Continue CRE & Multifamily Focus Grow Commercial and Industrial Lending (C&I) Future Outlook • Lending efforts increasingly migrate to relationship - based • Multifamily concentration will be managed via participations sold • Typically floating rates of interest • Long - term relationsh
Slide 17: Our Loan Composition has Evolved
Confidential 17 Our Loan Composition has Evolved Residential Mortgage Loans Commercial Mortgages C & I 12/31/2012 12/31/2014 37% 52% 11% 62% 24% 14%
Slide 18: Our Asset Quality Remains Strong
Our Asset Quality Remains Strong (In Thousands) Confidential 18 8,763 787 768 15,228 8,571 8,174 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 12/31/2012 12/31/2013 12/31/2014 Net Charge-Offs Non-Performing Assets
Slide 19: Past Due Loans are at Historic Lows
19 Past Due Loans are at Historic Lows Confidential 30 – 89 Days (In Thousands) 3,786 2,953 1,755 1,500 2,000 2,500 3,000 3,500 4,000 12/31/2012 12/31/2013 12/31/2014
Slide 20: Loan Growth – New Jersey Commercial Banks
Confidential 42.8% 18.4% 17.1% 16.6% 12.6% 10.4% 8.0% 7.5% 7.4% - 26.8% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% PGC BCB Provident VLY Amboy Oritani Boiling Springs Lakeland Columbia Sun *Source: Stockton Financial Corp. NJ Commercial Banks >$1B, excludes mergers. Loan Growth – New Je
Slide 21: Retail Private Banking
Confidential Optimize Our Branch Network Enhance Our Sales/Service Culture Deepen Relationships • Culture of robust deposit generation • Qualified referrals • Leverage our Advisory Board and Community Ambassadors • Utilize Salesforce to manage sales efforts • Transition to an advice - based solution
Slide 22: Deposit Growth – New Jersey Commercial Banks
Confidential 36.4% 24.3% 22.3% 11.2% 6.2% 3.9% 3.4% 3.2% 1.4% - 12.6% -15.0% -5.0% 5.0% 15.0% 25.0% 35.0% 45.0% PGC VLY Oritani Provident BCB Columbia Amboy Lakeland Boiling Springs Sun *Source: Stockton Financial Corp. NJ Commercial Banks >$1B, excludes mergers . Deposit Growth – New Jersey Commerc
Slide 23: We Have Added Considerable Talent
We Have Added Considerable Talent WEALTH COMMERCIAL RETAIL HSBC Morgan Sta nley Oritani Bank Wilmington Trust Bank of America Investors Bank BNY Mellon Citibank Provident/Team Capital Wells Fargo Hudson Valley Bank Fulton Bank Bank of America/U.S. Trust M & T Bank Bank of America Merrill Lynch Trust
Slide 24: Responsibly Managing Our Costs: Efficiency Ratio
24 Confidential As We Invest to Grow Revenue, We Are Responsibly Managing Our Costs Efficiency Ratio Trend 71.4% 80.7% 78.8% 75.6% 70.1% 67.4% 66.6% 66.0% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 85.0%
Slide 25: Efficiency is Delivering Positive Operating Leverage
25 Confidential 33 49 15 20 25 30 35 40 45 50 55 60 12/31/2012 12/31/2014 Net Income/Employee (In Thousands) Efficiency is Delivering Positive Operating Leverage and Improved Profitability 48% 249 290 225 230 235 240 245 250 255 260 265 270 275 280 285 290 12/31/2012 12/31/2014 Revenue/Employee (In
Slide 26: We Have An Enviable Revenue Mix
77% 17% 5% <1% <1% NII before Provision for LL - 77% Wealth Fee Income - 17% Fees & Other Income - 5% Gain on Sale of Loans (Mortgage Banking) - <1% Gain on Sale of Securities - <1% Revenue equals Net Interest Income before Provision for Loan Losses plus all other income We Have An Enviable Revenue
Slide 27: Enterprise Risk Management: Safety and Soundness
Confidential Safety and Soundness • Superior credit risk oversight • Strong policies and procedures and best practices in governance • Forward looking perspective of emerging risks Enterprise Risk Management Foundational Excellence Communication Promote Strong Risk Culture Leadership • Strong intern
Slide 28: Liquidity, Interest Rate Risk and Capital
Confidential Liquidity Interest Rate Risk Capital • Standby liquidity with the Federal Home Loan Bank is managed to optimize capacity. At year - end, $670 million undrawn • In addition, an investment securities portfolio with $265 million is available • Interest rate shock simulation results for Net
Slide 29: What is Compelling About Our Company
Confidential People Market Growth and Profitability • Very talented team with ties to the market place • High levels of motivation and engagement • Act as a single team • Operate in three of the top ten most affluent counties nationwide • New York MSA offers considerable opportunity • Large and smal
Slide 30: Select Financial Highlights Q1 2015
Select Financial Highlights Q1 2015 Annual Meeting April 28, 2015 P EAPACK - G LADSTONE B ANK
Slide 31: Continued Strong Earnings: Net Income
31 Confidential Continued Strong Earnings Net Income (In Millions) $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 Q1 2014 Q4 2014 Q1 2015 $5.01 $4.21 $3.03
Slide 32: Continued Strong Earnings: Diluted Earnings Per Share
32 Confidential Continued Strong Earnings Diluted Earnings Per Share $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 $0.40 Q1 2014 Q4 2014 Q1 2015 $0.33 $0.32 $0.26 Shares Outstanding for Diluted EPS Q1 2015: 15,070,352 Q4 2014: 13,163,877 Q1 2014: 11,710,940
Slide 33: Continued Strong Earnings: Net Interest Income
33 Confidential Continued Strong Earnings Net Interest Income (In Millions) $5.0 $7.0 $9.0 $11.0 $13.0 $15.0 $17.0 $19.0 $21.0 Q1 2014 Q4 2014 Q1 2015 $18.4 $19.6 $15.6
Slide 34: Continued Strong Earnings: Wealth Division Fee Income
34 Confidential Continued Strong Earnings Wealth Division Fee Income (In Millions) $3.00 $3.20 $3.40 $3.60 $3.80 $4.00 Q1 2014 Q4 2014 Q1 2015 $3.82 $4.03 $3.75
Slide 35: Continued Strong Improvement In Operating Leverage
35 Confidential Continued Strong Improvement In Operating Leverage Efficiency Ratio* 58.0% 60.0% 62.0% 64.0% 66.0% 68.0% 70.0% 72.0% Q1 2014 Q4 2014 Q1 2015 *Calculated as (total operating expenses) as a percentage of (total revenue less gain on sale of securities). 70.1% 66.0% 62.6%
Slide 36: Continued Strong Growth: Loans
36 Confidential Continued Strong Growth Loans (In Billions) $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 $2.20 $2.40 $2.60 $2.80 $3.00 Q1 2014 Q4 2014 Q1 2015 $2.25 $2.44 $1.76
Slide 37: Continued Strong Growth: Customer Deposits
37 Confidential Continued Strong Growth Customer Deposits (In Billions)* $1.00 $1.20 $1.40 $1.60 $1.80 $2.00 $2.20 $2.40 Q1 2014 Q4 2014 Q1 2015 $1.98 $2.15 $1.69 *Excludes brokered CDs and Brokered Overnight Interest Bearing Checking Deposits.
Slide 38: Continued Strong Growth: Wealth Division Assets Under Administration
38 Confidential Continued Strong Growth Wealth Division Assets Under Administration (In Billions)* $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Q1 2014 Q4 2014 Q1 2015 Pro-Forma* $3.0 $3.5 $2.7 $3.1 *Includes pro - forma acquisition of Wealth Management Consultants, LLC.
Slide 39: Continued Strong Asset Quality: Net Charge Offs
39 Confidential Continued Strong Asset Quality Net Charge Offs (In Thousands) $0 $20 $40 $60 $80 $100 $120 Q1 2014 Q4 2014 Q1 2015 $69 $111 $14
Slide 40: Continued Strong Asset Quality: Non-Performing Assets Ratio
40 Confidential Continued Strong Asset Quality Non - Performing Assets Ratio 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.45% Q1 2014 Q4 2014 Q1 2015 0.30% 0.42% 0.26%
Slide 41: Continued Strong Capital Position
41 Confidential Continued Strong Capital Position Tier I Leverage (Regulatory Tangible Capital) 7.00% 7.50% 8.00% 8.50% 9.00% 9.50% 10.00% Q1 2014 Q4 2014 Q1 2015 9.11% 8.48% 8.80% Regulatory Well Capitalized Standard 5.00%
Slide 42: Continued Improvement in Book Value Per Share
42 Confidential Continued Improvement in Book Value Per Share $14.00 $14.50 $15.00 $15.50 $16.00 $16.50 $17.00 Q1 2014 Q4 2014 Q1 2015 $16.36 $15.08 $16.61
Slide 43: Peapack-Gladstone Financial Corporation
@ PEAPACK-GLADSTONE FINANCIAL CORPORATION
Peapack-Gladstone Financial — Shareholder Meeting (April 2015) on 6ix