Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q2 2020 Earnings Presentation
30 slides from Peapack-gladstone Financial's earnings presentation, Jul 29, 2020
Slide 1: Q2 2020 Investor Update (and Supplemental Financial Information)
Q2 2020 Investor Update (and Supplemental Financial Information) 06.30.2020 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: Investment Considerations
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. High level of fee and other income – 30% of total revenue for
Slide 4: Shareholder Focus
Actively manage emerging credit risk associated with the COVID-19 pandemic. Conservatively manage capital and liquidity in response to current market conditions. Maintained our dividend. Aggressively repriced our deposits. Actively engaged in the PPP lending program (11.2% of total loans), which wil
Slide 5: ALLL Methodology
ALLL Methodology *Excludes PPP Loans of $547MM.
Slide 6: Supporting Clients During a Global Pandemic
Supporting Clients During a Global Pandemic Approved Deferrals by Loan Type (Deferrals as of 06/30/2020) *Risk Based Capital
Slide 7: Capital Stress Testing
Capital Stress Testing Quarterly Capital Stress Testing run under multiple scenarios. In the 05/31/20 severely adverse case, no growth scenario, the Bank remains well capitalized over a two-year stress period. Severely adverse case major assumptions: GDP growth -10% Unemployment -10% Decline in hous
Slide 8: Commercial Loan Portfolio By NAICS Codes
Commercial Loan Portfolio By NAICS Codes “Highly Impacted” industries highlighted in green As of 06/30/2020 Overall The industries designated by management to be most impacted by COVID total ~22%, $939MM of Total Loans (as of 06/30/2020). Pre-virus debt service and collateral values were strong. Rea
Slide 9: Risk Mitigants within "Highly Impacted" Industries
Risk Mitigants within “Highly Impacted” Industries As of 06/30/2020 Real Estate - Retail Portfolio has an average LTV of 58% and average DSC of 1.40x. It is anticipated that grocery and pharmacy anchored properties will outperform the portfolio as they will be first to recover as stay-at-home orders
Slide 10: Quality Performance within "Highly Impacted" Industries
Quality Performance within “Highly Impacted” Industries (Transportation and Manufacturing performing better than originally anticipated) As of 06/30/2020 Transportation Portfolio review conducted in April 2020 and follow up scheduled for Q3. Approximately 90% of the exposure in the Equipment Finance
Slide 11: Asset Quality Metrics
Non-Performing Assets¹ / Assets Criticized & Classified / Total Loans Net Charge-Offs / Average Loans Asset Quality Metrics* Loan Loss Reserves / Total Loans 1 Non-performing assets include nonaccrual loans, restructured loans and other real estate owned. *Excludes PPP Loans of $547MM. Note: Q2’20 r
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Mix as of 06/30/2020 Gross Loans: $4,900 million Note: Gross loans include loans held for sale.
Slide 13: Diversification within C&I Lending
Diversification within C&I Lending C&I Loans (excluding PPP) constitute 36% of the total loan portfolio.
Slide 14: Well-Seasoned Diversified Multifamily Loan Portfolio
Well-Seasoned Diversified Multifamily Loan Portfolio Multifamily Portfolio Balance % (in $MM's) NY (Rent Regulated) $410 34.8% NY (Market Rent) $35 3.0% NJ (Rent Regulated) $291 24.6% NJ (Market Rent) $166 14.1% PA (Rent Regulated) $19 1.6% PA (Market Rent) $258 21.9% TOTAL $1,179 100.0% Rent Regula
Slide 15: A Well-Diversified Non-Owner Occupied CRE Portfolio
A Well-Diversified Non-Owner Occupied CRE Portfolio Non-Owner Occupied CRE constitutes 16% of the total loan portfolio.
Slide 16: Fortress Balance Sheet
Fortress Balance Sheet 1 Substantially all of the Bank's loans and securities are pledged for back up liquidity purposes. 2 Net of $120m of term borrowing. 3 Excludes securities, the majority of which are pledged against secured funding.
Slide 17: Financial Performance
NPAs to Total Assets Total Loans (in billions) Capital (in millions) Total Deposits (in billions) Financial Performance* *Includes PPP loans of $547MM in total loans.
Slide 18: Wealth Management and Other Fees Provide a Diversified Revenue Mix
1 Includes SBA Income, Swap Income, Deposit & Loan Fees, Mortgage Banking, and BOLI. Net Interest Income 70% Wealth Management Fees 22% Fees & Other Inc 8% Six Months Ended 06/30/2020 Net Interest Income before Provision Wealth Management Fee Income Fees & Other Income 1 Total Non-Interest Income: 3
Slide 19: Wealth Management Vision and Q2 2020 Results
Our Vision: A leading wealth management boutique, offering superior advice delivered by top quality professionals, with a differentiated client experience compared to large bank competitors. Q2 2020: Wealth fees totaled $10MM reflecting an increase of $428,000, or 4%, from the same 2019 period and c
Slide 20: Priorities
Emphasis on the health and safety of our employees and clients. Adapt the way in which we interact with clients and prospects to reflect the current environment. Actively manage emerging credit risk associated with the environment caused by the COVID-19 pandemic. Conservatively manage capital and li
Slide 21: Appendix
Appendix Peapack-Gladstone Bank
Slide 22: Franchise Overview and Financial Highlights
Financial Highlights Branch Map Franchise Overview NOTE: Financial data as of 06/30/2020. 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 23: 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
Slide 24: A high-performing boutique bank
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 25: 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 26: Quarterly Income Statement Summary
Quarterly Income Statement Summary (Dollars in thousands, except per share data) 1 The March 2020 and June 2020 quarters included a higher provision for loan and lease losses primarily due to the current environment created by the COVID-19 pandemic. 2 The March 2020 quarter included a $3.2 million t
Slide 27: Asset Quality
Asset Quality 1 Amount does not include $23.2 million at June 30, 2020, $25.9 million at March 31, 2020, $25.8 million at December 31, 2019, $19.7 million at September 30, 2019, and $19.8 million at June 30, 2019 of TDRs included in nonaccrual loans. 2 The June 30, 2020 ALLL coverage ratios exclude
Slide 28: Capital Summary
Capital Summary 1 PPP loans with a balance of $547 million increased our total assets at June 30, 2020. Equity to total assets would be 8.86% if PPP loans were excluded from total assets. 2 Tangible equity as a percentage of tangible assets at period end is calculated by dividing tangible equity by
Slide 29: 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 30: 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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