Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Q1 2020 Earnings Presentation
36 slides from Peapack-gladstone Financial's earnings presentation, May 5, 2020
Slide 1: Q1 2020 Investor Update
Q1 2020 Investor Update (and supplemental Financial Information) 03.31.2020 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: Statement Regarding Forward-Looking Information
Statement Regarding Forward-Looking Information Further, given its ongoing and dynamic nature, it is difficult to predict the full impact of the COVID-19 outbreak on our business. The extent of such impact will depend on future developments, which are highly uncertain, including when the coronavirus
Slide 4: Commitment to communities during COVID-19 health crisis
As our local communities and employees deal with the worldwide COVID-19 health crisis, Peapack-Gladstone Bank’s social obligation to be a leader has never been stronger. Embedded in our 100-year history is the steadfast belief in our core values and the commitment of our staff to help those in need.
Slide 5: Our COVID-19 Pandemic Initial Approach
Incident Response Team Enacted: Team comprised of Senior and Departmental Leaders across the Bank Meets daily to monitor recent developments and address new challenges Partnered with local health department to ensure best practices are in place Business Continuity Plan: Updated and tested annually C
Slide 6: Our Response to the COVID-19 Pandemic
Our Response to the COVID-19 Pandemic EMPLOYEES CLIENTS SHAREHOLDERS COMMUNITY Committed to no layoffs in 2020. Over 70% of employees working remotely. Leveraging technology (Zoom, Microsoft Teams, WebEx) to support employees working remotely. Weekly all employee communications. Conducting weekly vi
Slide 7: SBA PPP Approved Loans
SBA PPP Approved Loans *As of 04.28.2020 PPP-1 (thru 4.16.2020) Category # of apps $ loan amts Avg/loan Fees# Jobs units $ MMM Avg/unit PPP Loan Apps Rec'v 1,500 $500M $330K $13.7M N/A 1,500 500 est 0.33333333333333331 N/A 13.75 Bank Processed 1,040 $400M $385K $11.0M N/A 1,040 400 est 0.38461538461
Slide 8: ALLL Methodology
ALLL Methodology ALLL Methodology REVISED - REMOVED 12/18 and net recoveries/provision for loan losses for 2019. ALLL Methodology Deferred implementation of CECL. Remained on the incurred loss method for determining ALLL. Q1 2020 Provision for Loan Losses based on the current environment at quarter-
Slide 9: Supporting Clients During a Global Pandemic
Supporting Clients During a Global Pandemic Approved Deferrals by Loan Type (Deferrals as of 04/22/2020) 1 Total Loan Type Balances are Based on Call Report Code Data 2 Risk Based Capital Loan Type Total Loan Type Balance 1 (000's) Deferral Approvals (000's) % of Total Loans % of Loan Type % of RBC
Slide 10: Investment CRE Deferrals
Investment CRE Deferrals Approved CRE Deferrals by Property Type As of 04/22/2020
Slide 11: Capital Stress Testing
Capital Stress Testing Quarterly capital stress testing – adverse case and severely adverse case. In the 12/31/19 severely adverse case, no growth scenario, the Bank remains well capitalized over a two-year stress period. Severely adverse case major assumptions: GDP growth – negative 10% Unemploymen
Slide 12: Commercial Loan Portfolio By NAICS Codes
Commercial Loan Portfolio By NAICS Codes “Highly Impacted” industries highlighted in green As of 03/31/2020 Overall The industries designated by management to be most impacted by COVID total ~23%, $992MM of Total Loans (as of 03/31/2020). Pre-virus debt service and collateral values were strong. CRE
Slide 13: Risk Mitigants within Highly Impacted Industries
Risk Mitigants within “Highly Impacted” Industries As of 03/31/2020 CRE- Retail Manufacturing Portfolio review conducted in April 2020. Portfolio is well-diversified in terms of subsector. No significant payment deferrals have been requested or granted. Over 50% of exposure has no COVID-19 impact. P
Slide 14: Risk Mitigants within Highly Impacted Industries
Risk Mitigants within “Highly Impacted” Industries As of 03/31/2020 Transportation Accommodations & Food Services Accommodation First mortgages on flagged properties located in NJ/NY with experienced multi-property operators. LTV on Hotels & Other Hospitality is 53.36%. Portfolio review conducted in
Slide 15: Historically Strong Asset Quality
Historically Strong Asset Quality 1 Non-performing assets include nonaccrual loans, restructured loans and other real estate owned Note: Q1’20 reflects data for the three months ended March 31, 2020; Net Charge-Offs / Average Loans reflects annualized data for the period Source: S&P Global Market In
Slide 16: Diversified Loan Portfolio
Residential / Consumer Multifamily CRE Commercial & Industrial Diversified Loan Portfolio Loan Mix As of 03/31/2020 Gross Loans: $4,416 million Note: Gross loans include loans held for sale.
Slide 17: Diversification within C&I Lending
Diversification within C&I Lending C&I Loans constitute 41% of the total loan portfolio.
Slide 18: High Quality Multifamily Loan Portfolio
High Quality Multifamily Loan Portfolio Multifamily Portfolio Balance % (in $MM's) NY (Rent Regulated) $421 35.0% NY (Market Rent) $34 2.8% NJ (Rent Regulated) $294 24.4% NJ (Market Rent) $174 14.5% PA (Rent Regulated) $24 2.0% PA (Market Rent) $257 21.3% TOTAL $1,203 100.0% Rent Regulated $739 61.4
Slide 19: A Well-Diversified Non-Owner Occupied CRE Portfolio
A Well-Diversified Non-Owner Occupied CRE Portfolio Non-Owner Occupied CRE constitutes 17% of the total loan portfolio.
Slide 20: Well-Seasoned Residential Mortgage and Consumer Loan Portfolio
A Well-Seasoned Residential Mortgage and Consumer Loan Portfolio Residential Mortgage and Consumer Loans constitute 15% of the total loan portfolio.
Slide 21: Fortress Balance Sheet
Fortress Balance Sheet As of 03/31/2020 1 Substantially all of the Bank's loans and securities are pledged for back up liquidity purposes. 2 Net of $620m of term borrowing. 3 Excludes Securities, the majority of which are pledged against secured funding. Peapack-Gladstone Financial Corp. Fortress Ba
Slide 22: Summary Income Statement
Summary Income Statement (Dollars in thousands, except per share data) 1 Capital Markets Activity included gain on loans held for sale at fair value (mortgage banking), fee income related to loan level, back-to-back swaps and gain on sale of SBA loans. 2 The March 2020 quarter included a provision f
Slide 23: Financial Performance
NPAs to Total Assets Total Loans (in billions) Capital (in millions) Total Deposits (in billions) Financial Performance
Slide 24: Diversified Revenue Mix
1 Includes SBA Income, Swap Income, Deposit & Loan Fees, Mortgage Banking, and BOLI Net Interest Income 68% Wealth Management Fees 22% Fees & Other Inc 10% Quarter Ended 03/31/2020 Net Interest Income before Provision Wealth Management Fee Income Fees & Other Income 1 Total Non-Interest Income: 32%
Slide 25: Wealth Management Vision and Q1 2020
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. Q1 2020: Wealth fees totaled $10MM reflecting an increase of $781,000, or 9%, from the same 2019 period and c
Slide 26: 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 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: Quarterly Income Statement Summary
Quarterly Income Statement Summary (Dollars in thousands, except per share data) 1 The March 2020 quarter included a provision for loan and lease losses of $20.0 million. The increase in the provision for loan and lease losses was primarily due to the current environment created by the COVID-19 pand
Slide 33: Asset Quality
Asset Quality 1 Includes one casual dining commercial banking relationship, with a balance of $5.9 million at March 31, 2020, that went on nonaccrual at June 30, 2019. 2 Amount does not include $25.9 million at March 31, 2020, $25.8 million at December 31, 2019, $19.7 million at September 30, 2019,
Slide 34: 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 34. 2 Tangible book value per share is calculated by dividing tangible equity by perio
Slide 35: 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 36: Peapack-Gladstone Financial Corporation 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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