Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Shareholder Meeting (April 2019)
48 slides from Peapack-gladstone Financial's shareholder meeting presentation, Apr 30, 2019
Slide 1: Annual Meeting: Expanding Our Reach
Annual Meeting “Expanding Our Reach” 04/30/2019 Peapack-Gladstone Bank Peapack Private 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: Strategic Overview and Update
Strategic Overview and Update Peapack-Gladstone Bank
Slide 4: Our Strategic Plan Addressed Major Headwinds
Our Strategic Plan Addressed 3 Major Headwinds We implemented our Strategic Plan – Expanding Our Reach – in early 2013. At that time, we recognized three industry headwinds: A low interest rate environment and tight spreads were likely to compress. Costs associated with compliance and risk managemen
Slide 5: Historical Treasury Yields: 2-Year vs. 10-Year
Historical Treasury Yields: 2-Year vs. 10-Year 3/31/2013 – 3/31/2019 Note: Market data as of March 31, 2019 Source: S&P Global Market Intelligence
Slide 6: Fed Funds Rate vs. 3-Year Treasury Yield
Fed Funds Rate vs. 3-Year Treasury Yield 3/31/2013 – 3/31/2019 Note: Market data as of March 31, 2019; Fed Funds rate reflects effective rate per Federal Reserve Source: S&P Global Market Intelligence; Federal Reserve
Slide 7: Increased Commitment to Compliance and Risk Management
Increased Commitment to Compliance and Risk Management 12/31/2012 03/31/2019 % Increase Headcount Headcount Enterprise Risk Management 7 17 242.9% Credit Risk Management 10 40 400.0% Total 17 57 335.3%
Slide 8: Shift to Electronic Delivery Channels
Shift to Electronic Delivery Channels (Dollars in Millions) (In Thousands)
Slide 9: 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 Core Principles Our Foundation
Slide 10: 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 11: Strategic plan accomplishments
Grew earnings, ROE, and ROA, but not yet at destination levels. Greatly expanded our wealth management business. Transformed our balance sheet from residential to C&I. Built a “best-in-class” risk management platform. Built a comprehensive suite of products and services to better service our clients
Slide 12: Our People Are Very Productive
CAGR 31% Year Over Year +13% Deposits Per Branch and Loans Per Employee Net Income / Period End FTE (Dollars in thousands) (Dollars in millions) Our People Are Very Productive
Slide 13: PGC Comparative Stock Price Performance
PGC Comparative Stock Price Performance 12/31/2013 – 12/31/2018 Note: Market data as of December 31, 2018 Source: S&P Global Market Intelligence Five Year Comparative Stock Price Performance: 12/31/2013 – 12/31/2018
Slide 14: PGC Comparative Stock Price Performance
PGC Comparative Stock Price Performance 12/31/2013 – 12/31/2018 Five Year Comparative Stock Price Performance: 12/31/2013 – 12/31/2018 Note: Market data as of December 31, 2018 Source: S&P Global Market Intelligence
Slide 15: 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 16: 2018 Results and Financial Trends
2018 Results and Financial Trends Peapack-Gladstone Bank
Slide 17: Steady Growth: Net Income
Steady Growth: Net Income (Dollars in Millions) 5-YEAR CAGR 37% 3-YEAR CAGR 30% YOY Growth +21%
Slide 18: Steady Growth: Earnings Per Share
Steady Growth: Earnings Per Share (Dollars per Share) 5-YEAR CAGR 18% 3-YEAR CAGR 21% YOY Growth +14%
Slide 19: Steady Growth: Tangible Book Value
Steady Growth: Tangible Book Value (Dollars per Share) 5-YEAR CAGR 9% 3-YEAR CAGR 10% YOY Growth +11% * Tangible book value per share is calculated by dividing tangible equity by period end common shares outstanding. See non-GAAP financial measures reconciliation table on page 54.
Slide 20: Steady Growth: Wealth Management Fee Income
Steady Growth: Wealth Management Fee Income 5-YEAR CAGR 19% 3-YEAR CAGR 25% YOY Growth +43%
Slide 21: 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 12/31/2018 Total Non-Interest Income: 24% of Total Revenue Net Interest Income before P
Slide 22: Steady Growth: Total Fee Income
Steady Growth: Total Fee Income (Dollars in Millions) 5-YEAR CAGR 17% 3-YEAR CAGR 23% YOY Growth +28%
Slide 23: Loan Growth
Note: Gross loans include loans held for sale Loan Growth (Dollars in Billions) 5 YEAR CAGR 20% 3 YEAR CAGR 10% YOY Growth +6%
Slide 24: C&I Loans
C&I Loans (Dollars in Millions) YOY Growth +46% 5 YEAR CAGR 60% 3 YEAR CAGR 40%
Slide 25: Loan Composition: A Transformational Change
Note: Gross loans include loans held for sale. Loan Composition: A Transformational Change MFL 29% Target 15% - 25% CRE 18% Target 15% - 20% C&I 35% Target 40% - 50% Resi / Cons 18% Target 15% - 20% Resi / Cons 53% C&I 10% CRE 23% MFL 14% As of 12/31/2018 As of 12/31/2012 Gross Loans: $1.576 billion
Slide 26: Deposit Growth
Deposit Growth (Dollars in Billions) 5 YEAR CAGR 19% YOY Growth +5% 3 YEAR CAGR 10%
Slide 27: 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 28: Additional Financial Metrics
ROAE ROAA Additional Financial Metrics NPAs to Total Assets 2 1 Efficiency Ratio calculated by dividing total noninterest expense, by net interest income and total noninterest income. 2 The increase in NPA in 2018 was due to the addition of one healthcare real estate secured by loan, totaling $15MM,
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 (as of December 31, 2018) $543 million in cash and cash equivalents and securities designated as available for sale. Additional
Slide 30: Current Challenges & 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 31: Peapack Private Wealth Management
Peapack Private Wealth Management www.peapackprivate.com
Slide 32: Peapack Private Wealth Management Advertising Campaign
Peapack Private Wealth Management ADVERTISING CAMPAIGN Local Cable TV Bloomberg, CNBC, Fox Business News, News 12 - Monday mornings 5am – 10am Radio CBS Radio 880 AM and Bloomberg Radio 1130 AM – Monday mornings 5am – 10am Pandora – Internet radio - Weekly :30 spots Programmatic Digital and Search E
Slide 33: Select Financial Highlights Q1 2019
Select Financial Highlights Q1 2019 Annual Meeting April 30, 2019 Peapack-Gladstone Bank
Slide 34: Wealth Management Assets Under Admin/Mgmt
Wealth Management Assets Under Admin/Mgmt +13% to Q1 2018
Slide 35: Wealth Management Fee Income
Wealth Management Fee Income 22% of Revenue +10% to Q1 2018
Slide 36: Pre-Tax Income
Pre-Tax Income (in millions) +14% to Q1 2018
Slide 37: Net Income
$12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 PEAPACK-GLADSTONE FINANCIAL CORPORATION Net Income (in millions) $11.43 $10.81 $10.73 Qi 2018 Q4 2018 Qi 2019
Slide 38: Earnings Per Share
PEAPACK-GLADSTONE FINANCIAL CORPORATION Earnings Per Share $0.70 $0.58 pn ° n bal $0.60 $0.55 $0.50 = $0.40 - $0.30 5 $0.20 - $0.10 + Qi 2018 Q4 2018 Qi 2019
Slide 39: Return on Average Assets
PEAPACK-GLADSTONE FINANCIAL CORPORATION Return on Average Assets 1.02% 1.01% 1.00% ~ 0.98% 0.98% ~ 0.96% 0.96% ~ 0.94% ~ 0.92% - 0.90% || Qi 2018 Q4 2018 Qi 2019
Slide 40: Return on Average Equity
PEAPACK-GLADSTONE FINANCIAL CORPORATION Return on Average Equity 11.00% 10.54% 10.00% | 9.32% 9.65% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% ~ 3.00% — 2.00% + 1.00% = Qi 2018 Q4 2018 Qi 2019
Slide 41: Total Loans
$4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 PEAPACK-GLADSTONE FINANCIAL CORPORATION Total Loans (in billions) $3.93 $3.90 $3.71 Qi 2018 Q4 2018 Qi 2019
Slide 42: C&I Loans
PEAPACK-GLADSTONE FINANCIAL CORPORATION C&l Loans (in millions) $1,398 $1,410 $997 Qi 2018 Q4 2018 Qi 2019
Slide 43: Total Deposits
Total Deposits +10% to Q1 2018
Slide 44: Non-Performing Assets Ratio
Non-Performing Assets Ratio (NPAs as a % of Assets) The increase in NPA in Q4 2018 was due to the addition of one healthcare real estate secured by loan, totaling $15MM, which continues to pay as agreed, and which the Company believes to be well-secured.
Slide 45: Tangible Book Value Per Share
Tangible Book Value Per Share* * Tangible book value per share is calculated by dividing tangible equity by period end common shares outstanding. See non-GAAP financial measures reconciliation table on page 54. +10% to Q1 2018
Slide 46: Tangible Capital Ratio of Holding Company
Tangible Capital Ratio of Holding Company * Tangible equity to tangible assets is calculated by dividing tangible equity by tangible assets. See Non-GAAP financial measures on page 54.
Slide 47: Regulatory Capital Ratios
Regulatory Well Capitalized Standard 10.00% Holding Company Bank Regulatory Tier I and II Capital to RWA (Regulatory Total Capital to Risk Weighted Assets)
Slide 48: 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
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