Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Q2 2022 Earnings Presentation
12 slides from Central Pacific Financial Corp New's earnings presentation, Jul 27, 2022
Slide 1: 2nd Quarter 2022 Earnings Supplement
2nd Quarter 2022 Earnings Supplement July 27, 2022
Slide 2: Forward-Looking Statements
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, net interest margin or other finan
Slide 3: Strong Hawaii Economic Position
Strong Hawaii Economic Position FACTORS FOR A FAVORABLE HAWAII OUTLOOK Significant increase expected in Defense spending Tourism Employment • Hawaii’s defense industry accounts for 8.5% of GDP and is the 2nd largest sector of Hawaii’s Visitor arrivals YTD Unemployment Rate economy with $7.7 billion
Slide 4: 2nd Quarter 2022 Financial Highlights
2nd Quarter 2022 2Q 2022 1Q 2022 Financial Highlights NET INCOME / $17.6 Million / $19.4 Million / DILUTED EPS $0.64 $0.70 • Strong loan growth of 10% on an annualized PRE-TAX, PRE- PROVISION INCOME $24.8 Million $22.3 Million basis (PTPP) • NIM expansion of 8 bps sequential quarter TOTAL LOAN +$127
Slide 5: Consistent Loan Growth
Consistent Loan Growth Loan Balances Outstanding-Excluding PPP 2Q 2022 Core Loan Growth by Type 5,500 $5.3B Quarterly Loan Growth in $ Millions 5,000 Coml Mtge, $60.1 +5% Consumer, $50.5 +8% 4,500 $ Millions Home Equity, $21.9 +3% 4,000 Construction, $21.7 +18% Resi , $16.8 +1% 3,500 C&I, $(20.2) 3,
Slide 6: Net Interest Margin & Rate Sensitivity
Net Interest Margin & Rate Sensitivity • NIM expanded by 8 bps sequential quarter due to the rising rate environment and asset sensitivity • Core NIM (excluding PPP) increased by 13 bps sequential quarter to 3.01%1 • Balance sheet is slightly asset sensitive (+100 bps shock estimated to increase NII
Slide 7: Strong Asset Quality
Strong Asset Quality Loans 90+ Days Past Due / Total Loans Nonperforming Loans / Total Loans 1.00% 1.00% 0.80% 0.80% 0.60% 0.60% 0.40% 0.40% 0.20% 0.20% 0.09% 0.02% 0.00% 0.00% 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 Classified Assets + OREO/ Tier 1
Slide 8: Allowance for Credit Losses
Allowance for Credit Losses • $1.4 million provision for credit loss on loans in 2Q22 driven by loan growth and net charge-offs; partially offset by a $0.4 credit to the reserve for unfunded commitments, for a total provision for credit loss of $1.0 million • ACL coverage ratio at 1.23% for 2Q22 4Q2
Slide 9: Solid Capital Position
Solid Capital Position Capital Ratios TOTAL RISK BASED STRONG CAPITAL AND SHAREHOLDER RETURN 16.0% CAPITAL 13.9% • Maintained quarterly cash dividend at $0.26 per share which 14.0% will be payable on September 15, 2022 2.3% 12.0% 0.9% • $210 million capital cushion to the well-capitalized Total 10.0
Slide 10: Central Pacific Bank ranked #1 Best-in-State Bank in Hawaii for 2022
Central Pacific Bank ranked #1 Best-in-State Bank in Hawaii for 2022 Central Pacific Financial Corp. 10
Slide 11: Environmental, Social & Governance (ESG)
Environmental, Social & Governance (ESG) 2021 ESG report can be viewed here: https://www.cpb.bank/esg Central Pacific Financial Corp. 11
Slide 12: Mahalo
Mahalo
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