Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Q1 2024 Earnings Presentation
19 slides from Central Pacific Financial Corp New's earnings presentation, Apr 24, 2024
Slide 1: 1st Quarter 2024 Earnings Supplement
1 Quarter 2024 st Earnings Supplement April 24, 2024
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, capital position, credit losses, net interest margin or oth
Slide 3: 1st Quarter 2024 Financial Highlights
1st Quarter 2024 1Q24 4Q23 Financial Highlights NET INCOME / DILUTED EPS $12.9MM / $0.48 $14.9MM / $0.55 PRE-PROVISION NET $20.9MM $23.8MM • Positioned the balance sheet by utilizing excess REVENUE (PPNR) liquidity to pay down high-cost deposits RETURN ON ASSETS 0.70% 0.79% (ROA) • NIM stabilized wi
Slide 4: Resilient Hawaii Economy
1 Resilient Hawaii Economy FACTORS FOR A FAVORABLE HAWAII OUTLOOK Tourism Employment Housing Visitor arrivals Unemployment Rate Oahu Median Single- • Maui tourism recovery from Maui wildfires in August 2023 compared to March 2024 Family Home Price faster than anticipated with visitor arrivals at 78%
Slide 5: Diversified Loan Portfolio
2 Diversified Loan Portfolio Loan Portfolio Composition 6.00 5.56 5.44 5.40 5.10 4.96 0.55 5.00 0.57 0.58 4.45 0.62 4.08 0.96 0.80 0.63 0.58 4.00 3.77 0.57 0.62 3.52 0.58 0.48 0.74 0.74 0.73 0.50 0.57 0.64 $ Billions 0.51 0.49 0.55 3.00 0.47 0.49 0.45 0.47 1.36 1.38 1.42 0.41 1.22 0.36 1.12 1.16 2.0
Slide 6: Relationship Deposits – Diversified & Granular
Relationship Deposits – Diversified & Granular Deposit Portfolio Composition 7.00 6.74 6.85 6.64 6.62 0.21 0.29 0.38 0.24 5.80 0.49 0.70 6.00 1.02 1.03 5.12 0.50 4.96 4.95 0.40 1.42 5.00 4.61 1.46 0.53 1.33 0.69 0.63 1.29 0.70 0.50 1.18 4.00 0.46 0.48 $ Billions 0.39 1.04 0.93 0.95 2.29 2.09 0.86 1.
Slide 7: CPF Deposit Cost Advantage
CPF Deposit Cost Advantage High valued deposit franchise with proven history of funding cost advantage 6.00% Total Deposit Cost 5.00% 4.00% Cycle-to-date total deposit beta of 24% as 3.00% of 1Q24 80 bps funding advantage 2.00% 1.00% 0.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 8: Solid Credit Profile
5 Solid Credit Profile Strong credit risk management continues to drive low levels of problem assets Delinquencies 90+Days/Total Loans Criticized/Total Loans 1.28% 1.34% 1.09% 0.06% 0.92% 0.56% 0.03% 0.05% 0.02% 0.05% 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 NPAs/Total Loans Annualized NCO/
Slide 9: Allowance for Credit Losses
Allowance for Credit Losses • $4.1MM provision for credit loss on loans in 1Q24 driven by net charge-offs, offset by a credit of $0.2MM to the reserve for unfunded commitments, for a total provision for credit loss of $3.9MM • ACL coverage ratio stable at 1.18% for 1Q24 $ Millions 1Q23 2Q23 3Q23 4Q2
Slide 10: High Quality Securities Portfolio
High Quality Securities Portfolio Investment Portfolio Composition as of March 31, 2024 • $1.3B or 17% of total assets Non-Agency CMBS/RMBS Other Corporate 2% 2% • 92% AAA rated 3% Municipals 12% • Portfolio mix: AFS 51% / HTM 49% • $32.6MM in investment securities purchased in 1Q24 at weighted aver
Slide 11: Available Sources of Liquidity
Available Sources of Liquidity • Ample alternative sources of liquidity available • Available sources of liquidity total 118% of uninsured/uncollateralized deposits $ Millions March 31, 2024 Cash on Balance Sheet 313 Other Funding Sources: Unpledged Securities 305 FHLB Available Borrowing Capacity 1
Slide 12: Expense Management
Expense Management Total Other Operating Expense ($ Millions) Ongoing Initiatives: 42.1 39.9 39.6 42.5 2.3 * 40.6 • Rightsizing salaries and benefits expense • Workflow and automation efficiencies 40.2 • Vendor contract negotiations 1Q23 2Q23 3Q23 4Q23 1Q24 • Other efficiency initiatives in progress
Slide 13: Solid Capital Position
Solid Capital Position Regulatory Capital Ratios as of March 31, 2024 $260MM 16.0% 14.8% capital 14.0% cushion to STRONG CAPITAL AND SHAREHOLDER RETURN 12.0% 11.6% well capitalized 10.0% 9.0% minimum • TCE ratio of 6.8% and CET1 ratio of 11.6% both increasing 8.0% with retained earnings 6.0% 4.0% •
Slide 14: Appendix
Appendix Central Pacific Financial Corp. 14
Slide 15: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE Portfolio Composition as of March 31, 2024 OFFICE RETAIL Shopping Center Storage 3% 2% Restaurant 1% TOTAL BALANCE $187.2MM $293.0MM Other 3% Industrial/ Hotel 9% Warehouse % OF TOTAL CRE 13% 21% 27% % OF TOTAL Office 3% 5% 13% LOANS WA LTV 56% 65% Apartment WA M
Slide 16: Consumer Loan Portfolio
Consumer Loan Portfolio Consumer Portfolio Composition as of March 31, 2024 • Total Hawaii Consumer $307MM / Total Mainland Consumer $274MM ($ Millions) • Weighted average origination FICO: Mainland Auto • 743 for Hawaii Consumer $82 , 14% • 738 for Mainland Consumer HI Auto $174 , 30% • YTD NCO %:
Slide 17: Central Pacific Bank recognized in Newsweek's America's Best Regional Banks for 2024
Central Pacific Bank recognized in Newsweek’s America’s Best Regional Banks for 2024 • Recognized for exceptional customer service, digital banking tools, and financial resources available to the community • Based on our creditworthiness, profitability, net loan activity and public image Central Pac
Slide 18: Environmental, Social & Governance (ESG) Focus
Environmental, Social & Governance (ESG) Focus Central Pacific Financial Corp. Source: 2023 ESG Report available here: https://www.cpb.bank/esg 18
Slide 19: Mahalo
Mahalo Central Pacific Financial Corp. 19
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