Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Shareholder Meeting (April 2014)
29 slides from Peapack-gladstone Financial's shareholder meeting presentation, Apr 22, 2014
Slide 1: Executing Our Strategy “Expanding Our Reach” Annual Meeting
Executing Our Strategy “Expanding Our Reach” Annual Meeting April 22, 2014
Slide 2: Executive Leadership
Douglas L. Kennedy President & Chief Executive Officer • 36 years experience; 1 year with PGB • Bachelor’s Economics & MBA - Sacred Heart University Finn M. W. Caspersen, Jr. Senior Executive Vice President, Chief Operating Officer & General Counsel • 19 years experience; 10 years with PGB • BA - Ha
Slide 3: We Recruited Talent
We Recruited Talent WEALTH COMMERCIAL RETAIL HSBC Morgan Sta nley Oritani Bank Wilmington Trust / M & T Bank of America Investors Bank BNY Mellon Citibank Team Capital Wells Fargo Private Bank Fulton Bank Somerset Hills US Trust Hudson Valley Bank Bank of America Wilmington Trust / M & T Bank Atlant
Slide 4: Early in the Process We Began Building a Strong Foundation
Early in the Process We Began Building a Strong Foundation • Approximately $20 million classified loans were sold in Q1 2013 • The Company’s Pooled Trust Preferred Securities portfolio was sold, which resulted in a significant reduction in risk - weighted assets for regulatory capital purposes and t
Slide 5: Enterprise Risk Management
Enterprise Risk Management • Introduce Enterprise Risk Management – credit risk, interest rate risk, capital & liquidity risk, compliance & legal risk, counterparty & operational risk, reputational risk, and strategic risk • Chief Risk Officer with 30 years experience most recently with Morgan Stanl
Slide 6: We Operate In One of the Most Affluent Areas in the US
• #1 Ranked by concentration of high - income households among the 50 most populous MSAs¹ • New Jersey ranked #3 for median household income in 2012² • Hunterdon, Somerset, and Morris counties each rank amongst the top 10 wealthiest counties in America³ • New Jersey ranked #2 (up from #3) in concent
Slide 7: Deposit Market Share – Room to Grow
Deposit Market Share – Room to Grow – as of 06/30/2013 7 Branch Deposit Benchmarks - PGB vs. County Average (in thousands) Compared to County Average Implied Growth at Average All Banks within County PGB $ Branches $/Branch $ Branches $/Branch Morris $22,597,204 233 $96,984 $439,015 6 $73,169 (23,81
Slide 8: PGC – A Compelling and Valuable Franchise
PGC – A Compelling and Valuable Franchise • Distinguished Brand – 93 Year history with a strong wealth oriented brand • Compelling Strategy – Unique strategy that capitalizes on macroeconomic trends for wealth creation • Simple Business Model – Leverage our existing core business in one of the wealt
Slide 9: We Are Off to a Good Start: 2013 Key Metrics
We Are Off to a Good Start: 2013 Key Metrics Total Loan Balances: +39% *RECORD* Total Loan Originations: +96% *RECORD* Deposits: +9% *RECORD* Assets Under Administration: +17% *RECORD* Wealth Fee Income: +12% *RECORD* Total Assets: +18% *RECORD* 9
Slide 10: Non Performing Assets Remain Low
Non Performing Assets Remain Low 2013 NPL/Lns Assets Ratio Union Center National Bank 1,672 0.33 Peapack Gladstone Bank 2,007 0.41 NVE Bank 686 0.59 Lakeland Bank 3,312 0.69 Investors Bank 15,583 0.77 Connectone Bank 1,243 0.80 Oritani Bank 2,911 0.84 Two River Community Bank 770 1.00 Cape Bank 1,09
Slide 11: 2013 Stock Performance
2013 Stock Performance (10%) 0% 10% 20% 30% 40% 50% 12/31/12 02/28/13 04/30/13 06/30/13 08/31/13 10/31/13 12/31/13 PGC +35.7% New Jersey $1 Bn+ +16.4% Chart labels Company PGC 35.7% Group 1 New Jersey $1 Bn + 16.4% One Year Comparative Stock Price Performance Strategy Launched Capital Raise/ Roadsho
Slide 12: 2014 YTD Stock Performance
2014 YTD Stock Performance Company PGC 3.4% Group 1 New Jersey $1 Bn + (1.6%) Year To Date Comparative Stock Price Performance (10%) 0% 10% 20% 12/31/13 01/08/14 01/16/14 01/24/14 02/01/14 02/09/14 02/17/14 02/25/14 03/05/14 03/13/14 03/21/14 03/29/14 04/06/14 04/14/14 PGC +3.4% New Jersey $1 Bn+ -1
Slide 13: Capital Raised to Support Execution of Our Strategy
Capital Raised to Support Execution of Our Strategy Great Execution: • Originally targeted $35 million Rights Offering, with Standby Investors • Offering upsized to $42 million after noting strong Institutional Investor interest • Standby Investors committed up to $100 million • Existing shareholder
Slide 14: Our Capital Position is Strong
Our Capital Position is Strong Source: Stockton Financial Group / New Jersey Based Banks with Assets over $500MM+ 2013 RBC Assets Ratio Union County Savings Bank 1,660 44.91 Boiling Springs Savings Bank 1,393 21.57 NVE Bank 686 20.63 First Constitution Bank 742 18.80 Oritani Bank 2,911 17.58 First C
Slide 15: Book Value Per Share is Growing
Book Value Per Share is Growing $12.47 $13.87 $14.79 $10.00 $10.50 $11.00 $11.50 $12.00 $12.50 $13.00 $13.50 $14.00 $14.50 $15.00 12/31/11 12/31/12 12/31/13 15 Q1 2014 UPDATE $15.08 as of 03/31/2014
Slide 16: Some Key Business Metrics
Some Key Business Metrics Fiscal Year Ended 12/31 2012 - 2013 YOY Growth (Dollars in Millions) 2011 2012 2013 $ % Commercial Lending Total Loans ($) $468 $545 $970 $425 78% Total Originations ($) $103 $150 $551 $401 267% Retail Lending Total Loans ($) $570 $588 $604 $16 3% Total Originations ($) $ 2
Slide 17: We Have an Enviable Revenue Mix
We Have an Enviable Revenue Mix Year Ended 12/31/13 72% 19% 6% 2% 1% NII before Provision for LL - 72% Wealth Fee Income - 19% Fees & Other Income - 6% Gain on Sale of Loans (Mortgage Banking) - 2% Gain on Sale of Securities - 1% Revenue equals Net Interest Income before Provision for Loan Losses pl
Slide 18: Revenue Growth has Accelerated
Revenue Growth has Accelerated ($ in thousands) 60,000 62,000 64,000 66,000 68,000 70,000 72,000 74,000 2011 2012 2013 18 Q1 2014 UPDATE Q1 2014: $20,566 - Growth vs Q4 2013: 5.5% - Growth vs Q1 2013: 17.5% Q4 2013: $19,501 Q1 2013: $17,509
Slide 19: Upward Trend in Net Interest Income
Upward Trend in Net Interest Income ($ in thousands) Strategy Launched 10,000 10,500 11,000 11,500 12,000 12,500 13,000 13,500 14,000 14,500 15,000 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 19 Q1 2014 UPDATE Q1 2014: $15,571 - Growth vs Q4 2013: 7.2% - Growt
Slide 20: The Trend in Wealth Income is Positive
($ in thousands) 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 2011 2012 2013 The Trend in Wealth Income is Positive 20 Q1 2014 UPDATE Q1 2014: $3,754 - Growth vs Q4 2013: 5.8% - Growth vs Q1 2013: 11.5% Q4 2013: $3,547 Q1 2013: $3,368
Slide 21: Total Loans Reach Record Levels And Our Asset Mix is Improving
Total Loans Reach Record Levels And Our Asset Mix is Improving Commercial Residential 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 ($ in thousands) Strategy Launched 50% 50% 62% 38% 21 Q1
Slide 22: Residential Mortgage Levels Correlate to Greater Spread Compression
Our Analysis Revealed that Residential Mortgage Levels Correlate to Greater Spread Compression 4.00% 4.50% 5.00% 5.50% 6.00% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% (% Total Loan Yield) (% Residential Loans/Total Loans) Residential Loan Mix to Loan Yield PGB Residential Loans Loan Yield American N
Slide 23: Total Client Deposits Reach Record Levels
Total Client Deposits Reach Record Levels An Area of Significant Focus in 2014 ($ in thousands) Strategy Launched 2011 2012 2013 1,000,000 1,100,000 1,200,000 1,300,000 1,400,000 1,500,000 1,600,000 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 23 Q1 2014 UPDATE
Slide 24: Our Sales Force
Expanding Our Reach has resulted in the creation of four distinct sales forces: • Relationship Banking • Private Banking • Advisory Board • Community Ambassador Group We recently built out Private Banking offices: • Bedminster, Somerset County • Morristown, Morris County • Princeton, Mercer County (
Slide 25: Our Private Bank Strategy is Built on PGB’s Core Principles
Our Private Bank Strategy is Built on PGB’s 5 Core Principles 1. We operate with the highest standards of professionalism 2. We put our clients first by consistently delivering the Peapack - Gladstone Experience 3. We compete to win 4. We are fully invested in our community 5. We operate as one team
Slide 26: PGB’s Comprehensive Multi-Generational Approach To Wealth Management
Wealth Creation • Start Up Phase • Cash Secured Lending • Mature/Established • Cash Flow • SBA Supported Loans • Asset Based Lending Wealth Planning • Management Succession • Partial Monetization • Leveraged Recapitalization • Sale • M&A Advice/ Execution Wealth Monetization & Management • Next Gene
Slide 27: We Gained Momentum in Q1 2014
We Gained Momentum in Q1 2014 27 $ in thousands Q1 - 2014 Q4 - 2013 Q4 - 2013 Net Interest Income $15,571 $14,528 $12,427 Growth vs. Q4 2013 7% Growth vs. Q1 2013 25% Wealth Management Fee Income $3,754 $3,547 $3,368 Growth vs. Q4 2013 6% Growth vs. Q1 2013 12% Operating Expenses $14,339 $14,646 $12
Slide 28: Our 2014 Priorities
Our 2014 Priorities 28 Wealth: • Refine our product offering and create additional sales capacity through recent hires and client segmentation Retail: • Continue to build out our digital product offering • Launch rewards / cash back checking • Provide consultative sales training for branch team memb
Slide 29: Q & A
Q & A 29
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