Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Investor Presentation (March 2025)
26 slides from Central Pacific Financial Corp New's investor presentation, Mar 10, 2025
Slide 1: Investor Presentation March 2025
Investor Presentation March 2025
Slide 2: Forward-Looking Statements
2Central Pacific Financial Corp. Forward-Looking Statements This document and the accompanying oral presentation 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 o
Slide 3: Market Information / Corporate Profile
3Central Pacific Financial Corp. MARKET INFORMATION NYSE TICKER CPF SUBSIDIARY CPB TOTAL ASSETS $7.5 BILLION MARKET CAP $788 MILLION SHARE PRICE $29.04 DIVIDEND YIELD 3.7%1 Central Pacific Financial Corp. (CPF) is a Hawaii-based bank holding company. Central Pacific Bank (CPB) was founded in 1954 by
Slide 4: Favorable Hawaii Outlook: Tourism and Employment
4Central Pacific Financial Corp. Tourism Visitor arrivals compared to pre-pandemic 93% 1 Employment Unemployment Rate December 2024 3.0% 1 FACTORS FOR A FAVORABLE HAWAII OUTLOOK • Strong real estate market • Low unemployment • Substantial Federal government contracts and military investments; 9.2%3
Slide 5: Strong 4th Quarter and Full Year 2024
5Central Pacific Financial Corp. • Net income of $11.3 million in the fourth quarter, and $53.4 million for the full year 2024 • Completed investment securities portfolio repositioning which is estimated to improve prospective annual net interest income by $2.7 million • Net income impacted by $9.9
Slide 6: Who We Are: Our Foundational Principles
6Central Pacific Financial Corp. • Advocate for affordable housing in Hawaii • Accretive to construction loans, CRE take-out financing and residential loan business • Engaged in key joint ventures with mortgage brokers • Established key alliances with Hokuyo Bank and Tokyo Star Bank • Deep expertise
Slide 7: Our Core Growth and Value Drivers
7Central Pacific Financial Corp. Efficiency Optimization Valuable Deposit Franchise Increased Revenue Opportunities Credit Profile | Capital | Liquidity Improving market demand and building a solid team to grow loan portfolio and fee income Providing stable, low- cost funding advantage through deep
Slide 8: Diversified Loan Portfolio Primed for Growth
8Central Pacific Financial Corp. Diversified Loan Portfolio Primed for Growth • Pace of loan portfolio decline slowing; poised for growth in 2025 • Strong and diverse loan portfolio, with nearly 80% secured by real estate • Overall portfolio yield improved 40 bps to 4.82% from 2023 to 2024 • Acquire
Slide 9: Low-Cost Deposits Driven by Valuable Franchise
9Central Pacific Financial Corp. Low-Cost Deposits Driven by Valuable Franchise Deposit balances increased by $61 million from 3Q24 to 4Q24 Data as of December 31, 2024 • 58% of deposits FDIC insured; 63% including collateralized deposits • Well-diversified and granular: 56% Commercial (Average acco
Slide 10: CPF Deposit Cost Advantage
10Central Pacific Financial Corp. 1.21% 1.66% 2.31% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 2017 2018 2019 2020 2021 2022 2023 1Q24 2Q24 3Q24 4Q24 Total Deposit Cost CPF HI Peers Nat'l Peers • Source: CPF Form 10-K for the fiscal year ended 12/31/2024, S&P Global • HI Peers includes BOH and FHB •
Slide 11: Noninterest Income and Expense
11Central Pacific Financial Corp. 42.5 46.7 44.2 0.0 10.0 20.0 30.0 40.0 50.0 60.0 4Q23 3Q24 4Q24 $ M il li o n s Noninterest Expense Noninterest Income and Expense 15.2 12.7 2.6 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 4Q23 3Q24 4Q24 $ M il li o n s Noninterest Income • Adjustments in 4Q23 incl
Slide 12: Digital and Technology Transformation
121Central Pacific Financial Corp. Digital and Technology Transformation ACH, 77% ATM, 4% Mobile, 5% Branch, 14% 86% Consumer deposits processed digitally Digital Engagement1 Digital Metrics 1 Deposit activity for the month of January 2025. 2 Defined as logging into online or mobile banking at least
Slide 13: Solid Credit Profile
13Central Pacific Financial Corp. 0.13% 0.19% 0.19% 0.22% 0.21% 4Q23 1Q24 2Q24 3Q24 4Q24 NPAs/Total Loans 5 Strong credit risk management continues to drive low levels of problem assets Solid Credit Profile 0.02% 0.05% 0.04% 0.01% 0.01% 4Q23 1Q24 2Q24 3Q24 4Q24 Delinquencies 90+Days/Total Loans 0.92
Slide 14: Strong Capital and Shareholder Return
141Central Pacific Financial Corp. Strong Capital and Shareholder Return • Regulatory capital ratios meaningfully above the well-capitalized minimums • Increased quarterly cash dividend to $0.27 per share which will be payable on March 17, 2025 • No shares repurchased in the 4Q24. Board authorized a
Slide 15: Available Sources of Liquidity
15Central Pacific Financial Corp. • Strong liquidity position with ample alternative sources • Available sources of liquidity total 113% of uninsured/uncollateralized deposits Available Sources of Liquidity $ Millions December 31, 2024 Cash on Balance Sheet 381$ Other Funding Sources: Unpledged Secu
Slide 16: Key Takeaways
16Central Pacific Financial Corp. ✓ Primed for revenue growth through loan and fee income opportunities ✓ Valuable deposit franchise with generating capabilities ✓ Efficiency gains through technology ✓ Strong capital, credit and liquidity Key Takeaways
Slide 17: Appendix
17Central Pacific Financial Corp. Appendix
Slide 18: Non-GAAP Disclosure
18Central Pacific Financial Corp. 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 no
Slide 19: Historical Financial Highlights
19Central Pacific Financial Corp. (*) Certain amounts in prior years were reclassified to conform to current year's presentation. These reclassifications had an immaterial impact to our previously reported efficiency ratios. Note: Totals may not sum due to rounding. Historical Financial Highlights (
Slide 20: Commercial Real Estate Portfolio
20Central Pacific Financial Corp. Commercial Real Estate Portfolio OFFICE RETAIL TOTAL BALANCE $196.3MM $289.6MM % OF TOTAL CRE 13% 19% % OF TOTAL LOANS 4% 5% WA LTV 57% 65% WA MONTHS TO MATURITY 67 65 INVESTOR / OWNER- OCCUPIED $123.3MM / $73.0MM $211.4MM / $78.2MM• Hawaii 78% / Mainland 22% • Inve
Slide 21: Consumer Loan Portfolio
21Central Pacific Financial Corp. • Total Hawaii Consumer $275 million • Total Mainland Consumer $236 million • Weighted average origination FICO: • 744 for Hawaii Consumer • 738 for Mainland Consumer • Consumer net charge-offs peaked in 4Q23 and declined for 4 consecutive quarters in 2024 • Mainlan
Slide 22: Allowance for Credit Losses
22Central Pacific Financial Corp. • $1.4 million provision for credit loss on loans in 4Q24, offset by a credit of $0.6 million to the reserve for unfunded commitments, for a total provision for credit loss of $0.8 million • Strong ACL coverage ratio of 1.11% for 4Q24 Note: Totals may not sum due to
Slide 23: High Quality Securities Portfolio
23Central Pacific Financial Corp. High Quality Securities Portfolio • $1.3 billion or 18% of total assets • 94% AAA rated • Portfolio mix: AFS 55% / HTM 45% Strategic Activities • Investment portfolio repositioning completed in 4Q. Sold $106.5 million in AFS debt securities and reinvested the procee
Slide 24: CPB Named Best Bank in Hawaii
24Central Pacific Financial Corp. CPB Named Best Bank in Hawaii by Newsweek, Forbes, and Honolulu Star-Advertiser • Newsweek’s America’s Best Regional Banks 2025 • Forbes’ Best-In-State Banks 2024 • Forbes’ America’s Best Banks 2025 • Honolulu Star-Advertiser’s Best Bank in Hawaii 2024
Slide 25: Caring for our Land and People
25Central Pacific Financial Corp. Caring for our Land and People Note: 2024 ESG report expected to be published in 1H2025
Slide 26: Mahalo
26Central Pacific Financial Corp. Mahalo
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