Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Q4 2024 Earnings Presentation
19 slides from Central Pacific Financial Corp New's earnings presentation, Jan 29, 2025
Slide 1: 4th Quarter and Full Year 2024 Earnings Supplement
4 Quarter and Full Year 2024 th Earnings Supplement January 29, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document may contain forward-looking statements (“FLS”) concerning: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, the payment or nonpayment of dividends, net interest income, capital position, credit losses, net i
Slide 3: Strong 4th Quarter and Full Year 2024
Strong 4th Quarter and 4Q24 4Q24 2024Y 2024Y Full Year 2024 Actual Non-GAAP * Actual Non-GAAP * NET INCOME $11.3MM $19.0MM $53.4MM $63.4MM • Net income of $11.3MM in the fourth quarter, and DILUTED EPS $0.42 $0.70 $1.97 $2.34 $53.4MM for the full year 2024 PRE-PROVISION • Completed investment securi
Slide 4: Resilient Hawaii Economy
1 Resilient Hawaii Economy FACTORS FOR A FAVORABLE HAWAII OUTLOOK Tourism Employment Housing • Strong real estate market Oahu Median YTD Visitor arrivals Unemployment • Low unemployment Single- Family compared to Rate Home Price pre-pandemic December 2024 • Substantial Federal government contracts a
Slide 5: Diversified Loan Portfolio
2 Diversified Loan Portfolio Loan Portfolio Composition 6.00 5.56 5.44 5.40 5.38 5.34 5.33 5.10 0.17 4.96 0.19 0.17 0.17 0.16 0.15 5.00 0.55 0.12 0.57 0.58 0.58 0.59 0.60 4.45 0.12 0.62 4.08 0.10 0.80 0.63 0.58 0.54 0.52 0.51 4.00 3.77 0.57 0.96 0.62 0.07 3.52 0.07 0.58 0.74 0.74 0.73 0.71 0.70 0.68
Slide 6: Relationship Deposits – Diversified & Granular
Relationship Deposits – Diversified & Granular Deposit Portfolio Composition 8.00 6.74 6.85 7.00 6.64 6.62 6.58 6.58 6.64 0.21 0.29 0.37 0.24 0.12 0.10 0.19 5.80 0.49 0.71 0.98 6.00 1.03 1.03 1.03 1.02 5.12 0.50 4.96 4.95 1.42 5.00 4.61 0.41 1.45 0.53 1.33 1.26 1.34 0.69 0.63 1.29 1.28 $ Billions 0.
Slide 7: CPF Deposit Cost Advantage
CPF Deposit Cost Advantage Low rate-sensitive, relationship-based deposit portfolio provides significant cost advantage Total Interest Bearing Deposit Cost Total Deposit Cost 3.00% 2.55% 2.44% 2.50% CPF total deposit cost declined 2.44% 1.67% 11 bps to 1.21% in 4Q24 2.00% 1.79% 1.50% 1.21% CPF HI Pe
Slide 8: Solid Credit Profile
5 Solid Credit Profile Strong credit risk management continues to drive low levels of problem assets Criticized/Total Loans 0.92% Delinquencies 90+Days/Total Loans 0.66% 0.62% 0.62% 0.56% 0.05% 0.04% 0.02% 0.01% 0.01% 4Q23 1Q24 2Q24 3Q24 4Q24 4Q23 1Q24 2Q24 3Q24 4Q24 Annualized NCO/Avg Loans NPAs/To
Slide 9: Allowance for Credit Losses
Allowance for Credit Losses • $1.4MM provision for credit loss on loans in 4Q24, offset by a credit of $0.6MM to the reserve for unfunded commitments, for a total provision for credit loss of $0.8MM • Strong ACL coverage ratio of 1.11% for 4Q24 $ Millions 4Q23 1Q24 2Q24 3Q24 4Q24 Beginning Balance 6
Slide 10: High Quality Securities Portfolio
High Quality Securities Portfolio Investment Portfolio Composition as of December 31, 2024 • $1.3B or 18% of total assets • 94% AAA rated Collateralized loan obligations 2% U.S. Treasury & Gov't Agency 6% Non-Agency CMBS/RMBS 2% • Portfolio mix: AFS 55% / HTM 45% Strategic Activities Municipals 12%
Slide 11: Available Sources of Liquidity
Available Sources of Liquidity • Strong liquidity position with ample alternative sources • Available sources of liquidity total 113% of uninsured/uncollateralized deposits $ Millions December 31, 2024 Cash on Balance Sheet $ 381 Other Funding Sources: Unpledged Securities 558 FHLB Available Borrowi
Slide 12: Solid Capital Position
Solid Capital Position Regulatory Capital Ratios As December 31, 2024 $260MM 18.0% capital 15.4% cushion to 16.0% STRONG CAPITAL AND SHAREHOLDER RETURN 14.0% 12.3% well capitalized 12.0% minimum • Regulatory capital ratios meaningfully above the 9.3% 10.0% 8.0% well-capitalized minimums 6.0% 4.0% •
Slide 13: Appendix
Appendix Central Pacific Financial Corp. 13
Slide 14: Non-GAAP Disclosure
Non-GAAP Disclosure To supplement our consolidated financial information, the Company uses certain non-GAAP financial measures, which are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. The Company believes these non-GAAP financial measures provide
Slide 15: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE Portfolio Composition as of December 31, 2024 OFFICE RETAIL Shopping Center 3% Storage TOTAL BALANCE $196.3MM $289.6MM Other 2% 4% Industrial/Warehouse 28% % OF TOTAL CRE 13% 19% Hotel 11% % OF TOTAL 4% 5% LOANS Office 13% WA LTV 57% 65% WA MONTHS TO 67 65 Apartm
Slide 16: Consumer Loan Portfolio
Consumer Loan Portfolio Consumer Portfolio Composition as of December 31, 2024 ($ Millions) • Total Hawaii Consumer $275MM Mainland Auto • Total Mainland Consumer $236MM $97 , 19% HI Auto $146 , 28% • Weighted average origination FICO: • 744 for Hawaii Consumer • 738 for Mainland Consumer Mainland U
Slide 17: CPB Named Best Bank in Hawaii by Newsweek, Forbes, and Honolulu Star-Advertiser
CPB Named Best Bank in Hawaii by Newsweek, Forbes, and Honolulu Star-Advertiser • Newsweek’s Best In State Bank 2024 • Forbes’ Best-In-State Banks 2024 • Forbes’ America’s Best Banks 2024 • Honolulu Star-Advertiser’s Best Bank in Hawaii 2024 Central Pacific Financial Corp. 17
Slide 18: Caring for our Environment and People
Caring for our Environment and People Central Pacific Financial Corp. 2023 ESG Report available here: https://www.cpb.bank/esg 18
Slide 19: Mahalo
Mahalo Central Pacific Financial Corp. 19
Central Pacific Financial Corp New — Q4 2024 Earnings Presentation on 6ix