Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Investor Presentation (May 2017)
24 slides from Central Pacific Financial Corp New's investor presentation, May 15, 2017
Slide 1: May 2017 Investor Presentation
A. CATHERINE NGO President & Chief Executive Officer DAVID S. MORIMOTO Executive Vice President & Chief Financial Officer May 2017
Slide 2: Forward-Looking Statements
Forward-Looking Statements 1 This presentation may contain forward-looking statements concerning: projections of revenues, income/loss, earnings/loss per share, capital expenditures, dividends, capital structure, or other financial items, plans and objectives of management for future operations, fut
Slide 3: Corporate Profile
Corporate Profile 2 Founded in 1954 by Japanese-American veterans of World War II Fourth largest financial institution in Hawaii. 2011: $345 million recapitalization, including rights offering. Profitable every quarter since recapitalization CPF stock price is up ~ 220% from recapitalization
Slide 4: Shareholder Value Drivers
Shareholder Value Drivers 3 Strong Hawaii Market Relationship Banking Growth Opportunities Asset Quality Improvements Efficiency Enhancements Capital Optimization
Slide 5: Hawaii at a Glance
Population of 1.4 million (2016). Four major islands – Oahu is home to 70% of the state’s total population. Real State GDP (2016) $72.9 billion, +2.0% from 2015. Forecasts expect a 1.8% increase in 2017. State unemployment rate of 2.7% is below the national unemployment rate of 4.5% (March 2
Slide 6: Diversity of Tourism – Visitor Arrivals
Diversity of Tourism – Visitor Arrivals 5 Source: Hawaii Tourism Authority 2016 Growth Regions Korea +27% US West +4% US East +4% US West 40.9% US East 20.9% Japan 16.6% Canada 5.4% Australia 4.5% China 1.9% Korea 2.7% Europe 1.6% Other 5.5% Visitor Arrivals 2016
Slide 7: Strong Real Estate Market
6 Source: Honolulu Board of Realtors & National Association of Realtors. Data as of March 2017. Strong Real Estate Market $712.5 $236.4 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 $800.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 T h ous an d s Existing Single Family Home Media
Slide 8: Continued Growth and Development
Continued Growth and Development 7 1. Residential High-Rise Condominium Development in Honolulu Proposed master plan includes 22 new high-rise towers in Honolulu. Thirteen developments have completed successful sales and begun construction or have completed construction over the past few years.
Slide 9: Continued Growth and Development
Continued Growth and Development 8
Slide 10: Hawaii Banking Market
Hawaii Banking Market Note: Deposit data as of March 31, 2017. For consistency, total deposits at the regulated depository level. Source: SNL Financial 9 Total Deposits Market Rank Institution Type Ownership Branches (millions) Share 1 First Hawaiian Bank Bank Public - Partial 62 $16,949 37.9% 2 Ban
Slide 11: CPB Branch Positioning
Kauai (2) Oahu (27) Maui (4) Hawaii (2) CPB Branch Positioning ($ millions) March 31, 2017 10 Total Assets $5,443 Total Loans $3,546 Total Deposits $4,777 Total Branches 35
Slide 12: Relationship Banking Growth Opportunities
Relationship Banking Growth Opportunities 11 Launched a customer experience initiative to create a competitive advantage and differentiate ourselves from the rest of the market. Identified and focused on targeted market niches. Established strategic business development agreements with Hokuyo
Slide 13: Strong Loan Growth
Strong Loan Growth 12 5.25 Year CAGR +15% +33% +21% -9% +2% $4,030 $3,042 $2,169 $2,064 $2,204 $2,631 $2,932 $3,212 $3,525 $3,546 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q2017 Balances Outstanding Comml Mtg Construct/Dev C&I Consu
Slide 14: Core Deposit Franchise
Core Deposit Franchise 13 $4.8 billion in deposits as of 3/31/2017, with total core deposits at 80% Noninterest-Bearing DDA 27% Interest-Bearing DDA 19% Savings & Money Mkt 30% CDs < $100M 4% CDs > $100M 5% Government CDs 15%
Slide 15: Total Deposit Cost Advantage
Total Deposit Cost Advantage 14 Note: National peer group is comprised of publicly traded U.S. banks with total assets between $3 and $7 billion (83 banks). Source: SNL Financial 1.63% 1.09% 0.64% 0.30% 0.14% 0.11% 0.09% 0.09% 0.12% 0.18% 2.35% 1.59% 1.05% 0.78% 0.54% 0.40% 0.34% 0.33% 0.36% 0.40% 0
Slide 16: Significantly Reduced NPAs
$144 $500 $303 $196 $90 $47 $42 $16 $9 $9 $- $100 $200 $300 $400 $500 $600 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q2017 Million s C&D Comml Mtg Res Mtg C&I/Other Significantly Reduced NPAs 15 0.16% of Total Assets
Slide 17: Strong Reserve Coverage
Strong Reserve Coverage 16 Note: National peer group is comprised of publicly traded U.S. banks with total assets between $3 and $7 billion (83 banks). Source: SNL Financial 2.97% 6.75% 8.89% 5.91% 4.37% 3.19% 2.53% 1.97% 1.61% 1.56% 1.48% 2.00% 2.08% 1.97% 1.69% 1.48% 1.23% 1.11% 0.98% 1.00% 0.00%
Slide 18: Targeting Improved Efficiency Ratio
40% 60% 80% 100% 120% 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q2017 Efficiency Ratio Targeting Improved Efficiency Ratio 17 Normalize balance sheet composition and net interest income over time. Improve efficiencies by leveraging data warehouse and branch automation functionalities. Enha
Slide 19: Capital Optimization
Capital Optimization 18 Reinstated quarterly cash dividend of $0.08 per share in 3Q2013. Increased cash dividend by 25% in 3Q2014, 20% in 1Q2015, 17% in 4Q2015, 14% in 3Q2016 and 13% in 2Q2017. Aggregate cash dividends of $70 million returned to our shareholders since 3Q2013. Share repurchas
Slide 20: Shareholder Value Drivers
Shareholder Value Drivers 19 Strong Hawaii Market Relationship Banking Growth Opportunities Asset Quality Improvements Efficiency Enhancements Capital Optimization
Slide 21: Appendix
APPENDIX RA! XW FINANCIAL CORP
Slide 22: Financial Highlights
Financial Highlights 21 ($ in millions) 3mos ended 3/31/2017 2016 2015 2014 2013 2012 2011 Balance Sheet (period end data) Loans and leases $3,545.7 $3,524.9 $3,211.5 $2,932.2 $2,630.6 $2,203.9 $2,064.4 Total assets 5,443.2 5,384.2 5,131.3 4,853.0 4,741.2 4,370.4 4,132.9 Total deposits 4,777.4 4,608
Slide 23: Loan and Credit Composition
Loan and Credit Composition 22 ($ in Millions) Balance % Balance % $ % Hawaii Portfolio Residential Mortgage $1,237 35% $1,147 35% $90 8% Home Equity 371 10% 312 9% 59 19% Commercial Mortgage 776 22% 646 20% 130 20% Commercial & Ind/Leasing 397 11% 358 11% 39 11% Construction 90 2% 98 3% -8 -8% Auto
Slide 24: Stable Net Interest Margin
Stable Net Interest Margin 23 NIM has been stable around 3.30% for the last 3 years. Expect NIM to be in the 3.20 t0 3.30% range over the next couple of quarters. Future improvements in the NIM will result from continuing to grow the loan portfolio and stabilizing the investment and loan yield
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