Peapack-gladstone Financial Corporation · NASDAQ:PGC
Peapack-gladstone Financial — Investor Presentation (July 2018)
34 slides from Peapack-gladstone Financial's investor presentation, Jul 30, 2018
Slide 1: Investor Presentation: Expanding Our Reach
Investor Presentation “Expanding Our Reach” 06/30/2018 Peapack-Gladstone Bank
Slide 2: Statement Regarding Forward-Looking Information
Statement Regarding Forward-Looking Information This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about Management’s strategies and Management’s expectations abo
Slide 3: Vision, Core Principles and Our Foundation
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 Core Principles Our Foundation
Slide 4: Investment Considerations
Attractive geographic franchise. Wealth management focus provides an enviable fee revenue mix. Well positioned for additional wealth acquisitions that are immediately accretive to earnings, and carry a strong ROE and IRR. Ongoing shift in loan mix (decreasing MFL, increasing C&I) will continue to po
Slide 5: Private Banking Model
Senior Private Bankers lead a team-based approach. PGB offers a full suite of banking, commercial, and wealth management products to support client financial needs. Team members focus on understanding needs, goals, and aspirations with consideration of risk tolerance, time horizon, and other traditi
Slide 6: Franchise Growth
Wealth Assets Under Mgmt/Admin Total Assets Total Deposits Total Loans Franchise Growth (in billions)
Slide 7: Financial Performance
Diluted Earnings per Share Net Income (in millions) Pre-Tax Income (in millions) Financial Performance YOY +43% YOY +32% YOY +21%
Slide 8: Financial Performance: ROACE, ROAA, Tangible Book Value
ROACE ROAA Financial Performance YOY +16% YOY +33% Tangible Book Value Per Share 1 YOY +10% 1 Tangible book value per share is calculated by dividing tangible equity by period end common shares outstanding. See non-GAAP financial measures reconciliation on page 33.
Slide 9: How Do We Get There: Profitability Targets
How Do We Get There: Wealth Management growth – organic and acquisition. Continue migration of loan portfolio from lower yielding multifamily to higher yielding C&I. NIM expansion. Further efficiencies. Profitability Targets Metric Year 2017 YTD 2018 Targets Fee Income / Revenue 24% 28% 35% - 45% of
Slide 10: Franchise Overview
Financial Highlights Branch Map Franchise Overview NOTE: Financial data as of 06/30/2018. Private Banking Offices Bedminster, NJ Morristown, NJ Princeton, NJ Teaneck, NJ Fairfield, NJ Gladstone, NJ Greenville, DE (Trust Subsidiary) Headquarters Bedminster, NJ Year Founded 1921 Branches 20 Total Asse
Slide 11: Affluent Market
Affluent Market 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 market; banks, thrifts, and savings banks included (retail branches only). Source: S&P Global Market Intel
Slide 12: Considerable Growth Opportunity And Scale Gives Us Pricing Advantages
Considerable Growth Opportunity And Scale Gives Us Pricing Advantages Source: SNL Financial; Deposit data as of 06/30/2017
Slide 13: Peapack Private Wealth Management
Our Vision: A leading New York metro-area wealth management boutique, offering superior advice delivered by top quality professionals, with a differentiated client experience compared to large bank competitors. Recent Growth Initiatives: Successfully completed two acquisitions in 2017: August 2017:
Slide 14: Wealth Management Performance: AUM / AUA
Wealth Management Performance AUM / AUA (Dollars in Billions)
Slide 15: Wealth Management Performance: Fee Income
Wealth Management Performance Fee Income YOY +67% (Dollars in Millions)
Slide 16: Diversified Fee Based Revenue Mix
1. Includes SBA Income, Swap Income, Deposit & Loan Fees, Mortgage Banking, and BOLI Diversified Fee Based Revenue Mix Net Interest Income 72% Wealth Management Fees 21% Fees & Other Inc 7% YTD 06/30/2018 Total Non-Interest Income: 28% of Total Revenue Net Interest Income before Provision Wealth Man
Slide 17: Total Deposits
Total Deposits (Dollars in Billions)
Slide 18: Deposit Activity
Deposit Activity Total Deposits: 12/31/2017 $3,698,000 Affluent clients reallocated funds into managed assets with the Bank’s Wealth Management Group and/or outside investment opportunities and to pay income taxes. ($135,000) Listing service/brokered CDs matured and not replaced due to high current
Slide 19: Loan Growth and Asset Quality
1. Non performing assets defined as nonaccrual loans, loans 90+ days past due, and real estate owned. Loan Growth and Asset Quality 1 Loans NPAs 1 /Assets
Slide 20: C&I Loans
C&I Loans YOY +34% (Dollars in Millions)
Slide 21: Loan Diversification – Transformation to C&I
C&I Multifamily CRE Residential and Consumer Loan Diversification – Transformation to C&I (as a % of total loans)
Slide 22: Net Interest Margin
Net Interest Margin Targeted 2.98% to 3.02%
Slide 23: Key Metrics vs. Wealth Management Peers
Key Metrics vs. Wealth Management Peers Total Fee Income / Revenue – YTD 2018 Net Interest Margin – YTD 2018 ¹ Note: Financial data as reported for the six months ended June 30, 2018 (YTD 2018) 1. Assumes annualized net interest margin for the six months ended June 30, 2018 Peers are UVSP – Univest
Slide 24: PGC's Current Valuation vs. Wealth Management Peers
[The market would imply that our stock is undervalued as PGC currently trades at lower multiples than our wealth management peers.] PGC’s Current Valuation vs. Wealth Management Peers Note: Pricing data as of July 25, 2018; financial data as reported for the six months ended June 30, 2018 (YTD 2018)
Slide 25: Our Priorities
Grow fee revenue to 35% - 45% of total revenue. Expand NIM by re-mixing our loan portfolio into higher yielding C&I and driving core deposit growth. Expand our presence throughout the metro New York market. Integrate our acquired wealth management businesses under a common “Peapack Private” brand. E
Slide 26: Appendix
Appendix Peapack-Gladstone Bank
Slide 27: 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 28: Board of Directors
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 a
Slide 29: 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 June 30, 2018) $418 million in cash and cash equivalents and securities designated as available for sale. Additional borr
Slide 30: 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.
Slide 31: Asset Quality
PEAPACK-GLADSTONE FINANCIAL CORPORATION Asset Quality Asof June 30, March 31, Dec3i, Sept 30, June 30, a7 a7 a7 Asset Quality: Loans past due over 90 days and still accruing $ - $ - $ - $ - $ - Nonaccrual loans 12,025 13,314 13,530 15,367 15,643 Other real estate owned 1,608 2,090 2,090 137 373 $ 13
Slide 32: 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 33. 2. Tangible book value per share is calculated by dividing tangible equity by per
Slide 33: 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 34: 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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