Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Investor Presentation (January 2018)
37 slides from Peapack-gladstone Financial's investor presentation, Jan 30, 2018
Slide 1: Expanding Our Reach: Strategic Update and Year End Review
Investor Presentation “Expanding Our Reach” Strategic Update and Year End Review 12/31/2017 P EAPACK - G LADSTONE B ANK
Slide 2: Forward-looking statements
The foregoing contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts but rather may include expressions about Management’s view of future financial condition and results of operations, Management’s co
Slide 3: Stock Price Performance 2012-2017
Stock Price Performance 2012 - 2017 Note: Market data as of December 31, 2017 Source: S&P Global Market Intelligence Five Year Comparative Stock Price Performance: 12/31/2012 – 12/31/2017 (20%) 0% 20% 40% 60% 80% 100% 120% 140% 160% 12/31/12 06/30/13 12/31/13 06/30/14 12/31/14 06/30/15 12/31/15 06/3
Slide 4: Stock Price Performance 2017
Stock Price Performance 2017 Note: Market data as of December 31, 2017 Source: S&P Global Market Intelligence One Year Comparative Stock Price Performance: 12/31/2016 – 12/31/2017 (15%) (10%) (5%) 0% 5% 10% 15% 20% 12/31/16 01/31/17 02/28/17 03/31/17 04/30/17 05/31/17 06/30/17 07/31/17 08/31/17 09/3
Slide 5: People, Market, Unique Business Model
People Market Efficiency, Growth, and Profitability • Shared common vision • Very talented team with ties to the market • High levels of motivation and engagement • Act as a single team • Entrepreneurial culture • We operate in three of the top ten most affluent counties nationwide • New York MSA of
Slide 6: Franchise Overview
1. Non - GAAP financial measure; refer to reconciliation on page 36. • Wealth led, relationship - based commercial bank headquartered in the “wealth belt” of New Jersey delivering private bank level service, with over 95 years of operating history • Strong leadership team • Headquartered in Bedminst
Slide 7: New Jersey Market Overview
New Jersey Market Overview 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 marke t; banks, thrifts, and savings banks included (retail branches only). Source: S&P Global
Slide 8: Client-centered private banking strategy
• Full service banking with every conversation aimed at helping clients create , grow , protect & eventually transition their wealth. • Deep understanding of our clients’ needs , goals, and aspirations. ‒ It’s about the client; not about us. ‒ Risk management tolerance, time horizon, and other tradi
Slide 9: Central to Our Strategy: Wealth Management 2017 Recap
• $5.5 billion in AUM/AUA. • 2017 Managed AUM inflows of $466 million vs. $322 million for 2016. • 2017 recurring fees increased 11% from 2016 (29% including recent MCM and QCM acquisitions). • Successfully completed two acquisitions. – August 2017: Murphy Capital Management (“MCM”); over $900 milli
Slide 10: Wealth Management Performance
Wealth Management AUM/AUA Wealth Management Fee Income Wealth Management Performance $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 2013 2014 2015 2016 2017 (Dollars in Millions) $2.0 $2.3 $2.5 $2.8 $3.0 $3.3 $3.5 $3.8 $4.0 $4.3 $4.5 $4.8 $5.0 $5.3 $5.5 $5.8 $6.0 2012 2013 2014 2015 2
Slide 11: Wealth Management Contributes to Our Enviable Revenue Mix
1. Includes SBA Income, SWAP Income, Deposit & Loan Fees, Mortgage Banking, and BOLI Wealth Management Contributes Significantly to Our Enviable Revenue Mix 76.2% 15.9% 7.9% For Twelve Months Ended December 31, 2017 Total Non - Interest Income: 23.8% of Total Revenue Net Interest Income before Provi
Slide 12: Steady Earnings Growth (Net Income)
Steady Earnings Growth (Net Income) $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 2012 2013 2014 2015 2016 2017 $19.97 $14.89 $9.26 $9.22 $26.48 (Dollars in Millions) 12 $36.50 YOY Growth +38%
Slide 13: Improved Returns and Efficiency
ROACE ROAA Efficiency Ratio 1 Net Interest Margin Improved Returns and Efficiency 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 2012 2013 2014 2015 2016 2017 5.00% 7.00% 9.00% 11.00% 2012 2013 2014 2015 2016 2017 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 2012 2013 2014 2015 2016 2017 13 2.25% 2.50
Slide 14: Delivering Positive Operating Leverage
$28 $49 $63 $78 $95 2013 2014 2015 2016 2017 Year Over Year +22% Deposits Per Branch and Loans Per Employee Net Income / Period End FTE (Dollars in thousands) $66 $72 $100 $140 $171 $185 $3.95 $4.84 $7.36 $9.48 $9.80 $9.65 2012 2013 2014 2015 2016 2017 Deposits Per Branch Loans Per Employee (Dollars
Slide 15: Asset Growth
Asset Growth $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 2012 2013 2014 2015 2016 2017 $3,365 $2,702 $1,967 $1,668 $3,879 (Dollars in Millions) 15 $4,261 YOY Growth +10%
Slide 16: Loan Growth
Note: Gross loans include loans held for sale Loan Growth $0.000 $0.500 $1.000 $1.500 $2.000 $2.500 $3.000 $3.500 $4.000 2012 2013 2014 2015 2016 2017 $2.997 $2.251 $1.576 $1.153 $3.314 (Dollars in Billions) 16 $3.706 YOY Growth +12%
Slide 17: Loan Composition: A Transformational Change
Note: Gross loans include loans held for sale. Loan Composition: A Transformational Change 17 37.5% Long - Term Target 25% - 35% 16.9% Long Term Target 15% - 20% 25.9% Long Term Target 30% - 40% 4.1% 15.6% Long - Term Target 15% - 20% 44.7% 7.9% 10.0% 22.4% 14.0% As of December 31, 2017 As of Decemb
Slide 18: Portfolio Diversification and Decreasing CRE Concentration
Multifamily Loans / Bank’s Risk - Based Capital Bank’s CRE Concentration Ratio C&I Loans Portfolio Diversification and Decreasing CRE Concentration 250% 350% 450% 550% 650% 750% 2015 2016 2017 18 $300 $400 $500 $600 $700 $800 $900 2015 2016 2017 Steadily increasing C&I portfolio • C&I grew by $321MM
Slide 19: Multifamily loan portfolio
Proven track record of exceptional asset quality and a source of liquidity on an as needed basis. Geographically diversified portfolio – as of December 31, 2017: • New York – 53%; Top Markets – Bronx and Manhattan • New Jersey – 35%; Top Markets – Essex, Hudson, Passaic • Pennsylvania – 12%; Top Mar
Slide 20: Strong Credit Metrics
NPAs ² / Assets Texas Ratio ¹ NCOs / Average Loans LLR / Gross Loans Strong Credit Metrics 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 2012 2013 2014 2015 2016 2017 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 2012 2013 2014 2015 2016 2017 0.75% 1.00% 1.25% 1.50% 2012 2013 2014 2015 2016 2017 0.00% 0.20% 0.4
Slide 21: Deposit Growth
Deposit Growth $0.000 $0.500 $1.000 $1.500 $2.000 $2.500 $3.000 $3.500 $4.000 2012 2013 2014 2015 2016 2017 $2.935 $2.299 $1.647 $1.516 $3.412 (Dollars in Billions) 21 $3.698 YOY Growth +8%
Slide 22: Low-Cost Core Deposit Base
1. Core deposits defined as total deposits less time deposits. Total Deposits: $3,698 million Over 83% Core 1 Deposits Low - Cost Core Deposit Base Interest - bearing Demand 36.0% Savings & MMDA 32.8% Noninterest - bearing Demand 14.6% Jumbo Time 13.0% Time 3.6% As of December 31, 2017 22
Slide 23: 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, 2017) – $441 million in cash and cash equivalents and securities designated as available for sale.
Slide 24: We Remain Optimistic
• Unique and proven business model. • Quality, depth, and experience of Senior Leadership Team. • Enviable market demographics. • Diversified revenue mix; high level of focus on growing non - interest income. • Proven track record of strong EPS growth. • Growing, advice - led commercial business. We
Slide 25: Management targets and outlook
• EPS Growth – Low double digit EPS growth for 2018; high single/low double digit EPS growth thereafter. • Return on Equity – Target 10%+ run rate. • Efficiency Ratio – Mid to high 50’s. • Loan Growth – 8% to 12% annual loan growth. (Pricing discipline through our proprietary relationship - based lo
Slide 26: Appendix
Appendix P EAPACK - G LADSTONE B ANK
Slide 27: Senior leadership team
Douglas L. Kennedy President & Chief Executive Officer 908.719.6554 38 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
Slide 28: Senior leadership team (continued)
Anthony V. Bilotta , Jr. Executive Vice President, Head of Retail Banking 908.306.4266 30 years experience; Prior to joining in 2013 , he served as SVP and Director of Retail Banking & Corporate Marketing at Oritani Bank, and prior to that, he was EVP, Director of Retail Banking at New York Communit
Slide 29: Senior leadership team (continued)
Kevin Runyon Executive Vice President, Chief Information 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 and IT compliance - re
Slide 30: Board of Directors: Tony Spinelli
Tony Spinelli Tony Spinelli was named to the Board of Directors in May of 2017. Mr. Spinelli maintains Certified Information Systems Security Professional (CISSP) accreditation and serves on the boards of Per Scholas , the US Department of Defense and Georgia Tech Institute for Information Security
Slide 31: Quarterly Income Statement Summary
Quarterly Income Statement Summary (Dollars in thousands, except per share data) 31 1. Efficiency Ratio calculated by dividing total noninterest expense by total revenue. Income Statement Data: 12/31/2017 9/30/2017 6/30/2017 3/31/2017 12/31/2016 Net interest income $ 28,586 $ 29,992 $ 26,972 $ 25,59
Slide 32: Year Over Year Income Statement Comparison
Year Over Year Income Statement Comparison 32 Year Year Increase/ 2017 (1) 2016 (Decrease) Net Interest Income $ 111.14 (2) $ 96.44 $ 14.70 15% Provision for loan and lease losses $ 5.85 $ 7.50 $ (1.65) - 22% Net Interest Income after provision $ 105.29 $ 88.94 $ 16.35 18% Wealth management fee inco
Slide 33: December 2017 Quarter Compared to Prior Year Quarter
December 2017 Quarter Compared to Prior Year Quarter 33 Qtr Ended Qtr Ended December December Increase/ 2017 (1) 2016 (Decrease) Net Interest Income $ 28.59 $ 24.58 $ 4.01 16% Provision for loan and lease losses $ 1.65 $ 1.50 $ 0.15 10% Net Interest Income after provision $ 26.94 $ 23.08 $ 3.86 17%
Slide 34: December 2017 Quarter Compared to Linked Quarter
December 2017 Quarter Compared to Linked Quarter 34 Qtr Ended Qtr Ended December September Increase/ 2017 (1) 2017 (1) (Decrease) Net Interest Income $ 28.59 $ 29.99 (2) $ (1.40) - 5% Provision for loan and lease losses $ 1.65 $ 0.40 $ 1.25 313% Net Interest Income after provision $ 26.94 $ 29.59 $
Slide 35: Capital Summary
Capital Summary (Dollars in thousands, except per share data) 35 1 Tangible equity as a percentage of tangible assets at period end is calculated by dividing tangible equity by tangible ass et s at period end. See non - GAAP financial measures reconciliation on page 36. 2 Tangible book value per sha
Slide 36: Non-GAAP Financial Measures Reconciliation
Non - GAAP Financial Measures Reconciliation (Dollars in thousands, except per share data) 36 We believe that these non - GAAP financial measures provide information that is important to investors and that is useful in under standing our financial position, results and ratios. Our management interna
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
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