Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Investor Presentation (September 2022)
21 slides from Central Pacific Financial Corp New's investor presentation, Sep 6, 2022
Slide 1: Investor Presentation September 2022
Investor Presentation September 2022
Slide 2: Forward-Looking Statements
2Central Pacific Financial Corp. Forward-Looking Statements This document may contain forward-looking statements 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, n
Slide 3: Central Pacific Financial - Corporate Profile
3Central Pacific Financial Corp. Central Pacific Financial - Corporate Profile MARKET INFORMATION NYSE TICKER CPF SUBSIDIARY CENTRAL PACIFIC BANK (CPB) TOTAL ASSETS $7.3 BILLION MARKET CAP $625 MILLION SHARE PRICE $22.88 DIVIDEND YIELD 4.6% Central Pacific Financial Corp. is a Hawaii-based bank hold
Slide 4: CPF Investment Highlights
4Central Pacific Financial Corp. CPF Investment Highlights Well positioned to capitalize on improving macro trends Accelerating & sustainable growth NIM tailwinds Focus on driving efficiency Strong credit & capital profile Digital & BaaS initiatives to expand future market & growth 1 2 3 4 5 6
Slide 5: Factors for a Favorable Hawaii Outlook
5Central Pacific Financial Corp. FACTORS FOR A FAVORABLE HAWAII OUTLOOK Rebound in International visitors expected • Japanese visitors to Hawaii expected to increase as COVID testing requirements are ending and daily passenger limits are increasing Significant increase expected in Defense spending •
Slide 6: Loan Balances Outstanding and Portfolio Composition
6Central Pacific Financial Corp. 3,000 3,500 4,000 4,500 5,000 5,500 2016 2017 2018 2019 2020 2021 2Q2022 $ M ill io ns Loan Balances Outstanding-Excluding PPP • Loan market share increased from 13% to 15% in the last 5 years* • Weighted average LTVs of 64% for Residential Mortgage, 61% for Home Equ
Slide 7: Residential Mortgage Strength
7Central Pacific Financial Corp. Residential Mortgage Strength SMALL BUSINESSES $1.1 Million +11.6% YoY $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Jul-22 In 0 00 s OAHU SINGLE FAMILY HOME MEDIAN SALES PRICE HAWAII RESIDENTIAL MARKET • Housing pric
Slide 8: Small Business Leader
8Central Pacific Financial Corp. Small Business Leader SMALL BUSINESSES 2021 Lender of the Year Category 2 by the SBA’s Hawaii District Office Originated more SBA loans based on count and $ than the 3 other large Hawaii banks combined1 Innovative Programs & Technology CPB Foundation started a fina
Slide 9: Japan Competitive Advantage
9Central Pacific Financial Corp. Japan Competitive Advantage • Paul Yonamine, CPF CEO, is on the Board of Directors of Sumitomo Mitsui Banking Corporation (SMBC) and Seven & i Holdings. He is also the Board Chair of the U.S. Japan Council. He previously served as the IBM Japan President and led KPMG
Slide 10: Net Interest Margin and Rate Sensitivity
10Central Pacific Financial Corp. • 2Q 2022 Core NIM (excluding PPP) increased by 13 bps sequential quarter to 3.01%1 due to asset sensitivity and the rising rate environment • 3Q 2022 Core NIM estimated to further increase by 10-15 bps 1 Excludes $0.9MM in PPP net interest income, and $33MM in aver
Slide 11: Solid Low-Cost Core Deposit Portfolio
11Central Pacific Financial Corp. Solid Low-Cost Core Deposit Portfolio 4,000 4,500 5,000 5,500 6,000 6,500 7,000 2016 2017 2018 2019 2020 2021 2Q2022 $ M ill io ns Total Deposits $6.6B @ 0.06% avg cost • Strong deposit portfolio consisting of 93% core deposits and a total deposit cost of just 0.06%
Slide 12: Hawaii Deposit Cost Advantage
12Central Pacific Financial Corp. Hawaii Deposit Cost Advantage 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1 2022 Q2 2022 Total Deposit Cost CPF Peer average* Fed Funds 61 bps funding advantage 47 bps funding advant
Slide 13: Branch Consolidation and Efficiency Execution
13Central Pacific Financial Corp. Branch Consolidation - 8 branches consolidated since 2020 (-23%) - Currently operating 27 branches in the State of Hawaii FTE Reduction - Reduced total FTE from 833 to 774 over the last 2 years (-7%) through attrition enabled by efficiency gains SUCCESSFUL EXECUTION
Slide 14: Strong and Diversified Loan Portfolio, Credit Risk Management
14Central Pacific Financial Corp. Strong and diversified loan portfolio combined with solid credit risk management CPF credit quality compares favorably to peer banks 0.15% 0.00% 0.50% 1.00% 1.50% 2.00% 2016 2017 2018 2019 2020 2021 Q1 2022 Q2 2022 Non-Performing Loans to Total Loans* 0.17% 0.00% 0.
Slide 15: Solid Capital Position
15Central Pacific Financial Corp. Solid Capital Position 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Tier 1 Leverage CET1 Total Capital Regulatory Capital Ratios As of June 30, 2022 Regulatory Minimum Well-Capitalized CPF 10.7% 13.9% 8.6% STRONG CAPITAL AND SHAREHOLDER RETURN • Maintained quart
Slide 16: Shaka Digital Account and Banking-as-a-Service Initiative
16Central Pacific Financial Corp. Shaka - Hawaii’s first fully digital bank account • Successful launch with over 4,000 accounts opened in the first 6 months • Product expansion and continued development ongoing • Unique brand marketing and social-media strategy • Meeting the needs of younger genera
Slide 17: Mahalo
Mahalo
Slide 18: Appendix
18Central Pacific Financial Corp. Appendix
Slide 19: Ranked #1 Best-in-State Bank in Hawaii for 2022
19Central Pacific Financial Corp. Central Pacific Bank ranked #1 Best-in-State Bank in Hawaii for 2022
Slide 20: Historical Financial Highlights
20Central Pacific Financial Corp Historical Financial Highlights (*) 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. ($ in millions) 1Q 2021 2020 2019 2018 2017
Slide 21: Environmental, Social & Governance (ESG)
21Central Pacific Financial Corp. Environmental, Social & Governance (ESG) 2021 ESG report released in early 2022 can be viewed here: https://www.cpb.bank/esg
Central Pacific Financial — Investor Presentation (September 2022) on 6ix