Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Investor Presentation (January 2020)
37 slides from Peapack-gladstone Financial's investor presentation, Jan 29, 2020
Slide 1: Investor Presentation: Expanding Our Reach
Investor Presentation “Expanding Our Reach” 12/31/2019 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: Franchise Overview and Financial Highlights
Financial Highlights Branch Map Franchise Overview NOTE: Financial data as of 12/31/2019. 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 4: A high-performing boutique bank: vision and values
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 5: Investment highlights
Earnings per share 5 year CAGR of 15%. Niche wealth management and commercial banking strategy with a proven track record of delivering strong organic growth. Asset quality metrics continue to be strong. Demonstrated ability to acquire and integrate wealth management businesses that are immediately
Slide 6: Governance, diversity and community
93% of the Board of Directors, including the Chairman, are independent. Awarded the 2019 Executive Women of NJ Corporate Board Gender Diversity Award recognizing PGC for having 3 or more female directors. 35% of senior officers are female. Named a “Best Banks to Work For” by American Banker for 2018
Slide 7: Attractive Franchise in wealthiest US communities
Attractive Franchise We Operate in 3 of the Top 10 Wealthiest Communities in the United States Branch/Deposit Share: FDIC 06/30/2019 County Median Household Income # of PGB Branches Deposit Market Share Peapack-Gladstone Bank Deposits Peapack Private AUA Hunterdon County $105K 4 #6 $415MM $213MM Som
Slide 8: Diversified Revenue Mix
1 Includes SBA Income, Swap Income, Deposit & Loan Fees, Mortgage Banking, and BOLI 2 Wealth Management Peers: UVSP – Univest Financial Corp., CATC – Cambridge Bancorp, BMTC – Bryn Mawr Bank Corp, WASH – Washington Trust Bancorp, and TMP - Tompkins Financial Corporation; 3 TMP reflects data for the
Slide 9: PGC's Current Valuation vs. Wealth Management Peers
PGC’s Current Valuation vs. Wealth Management Peers 1 TMP reflects data for the quarter ended September 30, 2019. Note: Pricing data as of January 24, 2020; TBV and LTM EPS as reported for the period ended December 31, 2019 (unless otherwise noted) and not pro forma for pending acquisitions Wealth M
Slide 10: Comparative Stock Price Performance, One Year
PGC Comparative Stock Price Performance 12/31/2018 – 12/31/2019 One Year Comparative Stock Price Performance: 12/31/2018 – 12/31/2019 Note: Market data as of December 31, 2019 Source: S&P Global Market Intelligence
Slide 11: Comparative Stock Price Performance, Five Year
PGC Comparative Stock Price Performance 12/31/2014 – 12/31/2019 Five Year Comparative Stock Price Performance: 12/31/2014 – 12/31/2019 Note: Market data as of December 31, 2019 Source: S&P Global Market Intelligence
Slide 12: Quarter highlights: wealth management and commercial banking
President and CEO, Douglas L. Kennedy, elected to the New York Federal Reserve Bank Board. Peapack Private Wealth Management remains integral to our Strategy: Wealth Management fee income for the 4th quarter 2019 reached a record $10.1MM, reflecting a 18% increase compared to the 4th quarter 2018. W
Slide 13: Earnings, capital and asset quality; digital strategy
Earnings, capital and asset quality continue to be strong: For the quarter, year-over-year revenue growth of 14% and pretax income growth of 31%. EPS $0.64; ROA 0.98%; ROE 9.81% The tangible capital ratio was 9.01%.* In Q4 2019, 143,925 shares repurchased at an average price of $29.78 ($4.3MM). 220,
Slide 14: Wealth Management vision and acquisitions
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. Recent Acquisitions: Point View Wealth Management, 9/1/19, Summit NJ, AUM: approximately $350MM. Lassus Wherl
Slide 15: Wealth Management Performance
Wealth Management Performance AUM / AUA (in billions) Fee Income (in millions) YOY +15% YOY +29%
Slide 16: Loan Portfolio Transformation
Note: Gross loans include loans held for sale. MFL 27% Target 20% - 30% CRE 17% Target 15% - 20% C&I 40% Target 40% - 50% Resi/Cons 16% Target 15% - 20% Resi /Cons 54% C&I 10% CRE 22% MFL 14% Loan Mix As of December 31, 2019 Loan Mix As of December 31, 2012 Gross Loans: $1,153 million Gross Loans: $
Slide 17: C&I Loans
C&I Loans (Dollars in Millions) Includes Equipment Finance loans totaling $659MM at 12/31/2019. YOY +27%
Slide 18: Diversification within C&I Lending
Diversification within C&I Lending The yield on the C&I portfolio was 4.74% for 2019.
Slide 19: Multifamily Loan Portfolio
Multifamily Loan Portfolio Multifamily Portfolio Balance % (in $MM's) NY (Rent Regulated) $465 38.4% NY (Market Rent) $29 2.4% NJ (Rent Regulated) $296 24.4% NJ (Market Rent) $181 14.9% PA (Rent Regulated) $25 2.1% PA (Market Rent) $215 17.8% TOTAL $1,210 100.0% Rent Regulated $786 64.9% Market Rent
Slide 20: NYC Rent Regulated MFL Portfolio
NYC Rent Regulated MFL Portfolio NYC Rent Regulated Portfolio Stats: Total Portfolio: $465MM of which $289MM, or 62%, matures/resets over the next 24 months Current LTV: 65.5% Current DSCR: 1.53X Current Debt Yield: 9.8% Current Delinquency Rate: 0% We believe the impact of recently implemented NY R
Slide 21: Financial Performance: loans, deposits, capital, NPAs
NPAs to Total Assets Total Loans (in billions) Capital (in millions) Total Deposits (in billions) Financial Performance YOY +12% YOY +9%
Slide 22: Financial Performance: EPS, income, revenue
Diluted Earnings per Share Pre-Tax Income (in millions) Revenue (in millions) Financial Performance YOY +7% YOY +6% Net Income (in millions) YOY +10% YOY +15% * * * Impacted by 2019 higher effective tax rate.
Slide 23: Financial Performance: ROAE, ROAA, TBV, efficiency
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 24: How Do We Get There: Profitability Targets
How Do We Get There: Continued remix of loan portfolio with focus on continued growth in C&I. $474MM of multifamily loans with a WAC of 3.27% will reach contractual repricing or maturity over the next 2 years. Continue Wealth Management growth – organic and acquisition. Additional focus on other fee
Slide 25: 2020-2022 MFL Fixed Rate Maturities & Rate-Resets
2020-2022 MFL Fixed Rate Maturities & Rate-Resets PGB has $582MM of multifamily loans with a WAC of 3.34% that will reach contractual repricing or maturities over the next 3 years.
Slide 26: Priorities
Continue to grow and expand our Wealth Management and Commercial Banking businesses. Grow fee income to 35% - 45% of total bank revenue with emphasis on growing our wealth management business, organically and through acquisition. Continue to focus on core, low-cost deposit growth, and loan growth wi
Slide 27: Appendix
Appendix Peapack-Gladstone Bank
Slide 28: 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 29: Management team
Lisa P. Chalkan Senior Vice President, Deputy 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
Slide 30: Management team
Brydget Falk-Drigan Executive Vice President, Chief Human Resources Officer 908.719.3315 29 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 31: Management team
Kevin Runyon Executive Vice President, Chief Information Officer & Chief Digital Officer 908.306.8060 35 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 32: 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 $610 million in cash and cash equivalents and securities. Additional unused borrowing capacity of $1.3 billion available at the
Slide 33: 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. Income Statement Data: 43830 43738 43646 43555 43465 Net interest income $ 30,914 $ 30,085 $ 29,2
Slide 34: Asset Quality
Asset Quality 1 The increase in nonaccrual loans in the June 2019 quarter includes one $7 million casual dining commercial banking relationship. 12/31/2019 43738 43646 43555 43465 Asset Quality: Loans past due over 90 days and still accruing $0 $0 $0 $0 $0 Nonaccrual loans 1 28,881 29,383 31,150 24,
Slide 35: 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 36. 2 Tangible book value per share is calculated by dividing tangible equity by perio
Slide 36: 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 37: 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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