Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Investor Presentation (July 2015)
28 slides from Central Pacific Financial Corp New's investor presentation, Jul 27, 2015
Slide 1: July 2015 A. CATHERINE NGO President & Chief Executive Officer LANCE A. MIZUMOTO President
July 2015 A. CATHERINE NGO President & Chief Executive Officer LANCE A. MIZUMOTO President & Chief Banking Officer DAVID S. MORIMOTO Executive Vice President, Chief Financial Officer & Treasurer
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: Recent Executive Appointments
Recent Executive Appointments 2 Internal leadership succession ensures a smooth transition and consistency of strategy, core values and culture Previous Position Position Effective 7/1/2015 John C. Dean Chairman & Chief Executive Officer Executive Chairman of the Board A. Catherine Ngo President & C
Slide 4: Corporate Profile
Corporate Profile 3 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 ~ 130% from recapitalization price 3Q2
Slide 5: Shareholder Value Drivers
Shareholder Value Drivers 4 Strong Hawaii Market Relationship Banking Growth Opportunities Asset Quality Improvements Technology & Efficiency Enhancements Capital Optimization
Slide 6: Hawaii at a Glance
Population of 1.4 million (2014) Eight major islands – Oahu is home to 70% of the state’s total population Real GDP (2014) $72.0 billion, +2.1% from 2013. Preliminary estimates indicate a 2.5% increase in 2015 Unemployment rate (2014) 4.4% is 7th lowest in the nation, and projected to be 3.9% in 201
Slide 7: Diversity of Tourism
Diversity of Tourism 6 Source: Hawaii Tourism Authority US West 39.9% US East 21.1% Japan 18.5% Canada 6.4% Australia 3.8% China 2.0% Korea 2.1% Other 6.2% Visitor Arrivals in 2014 by Air
Slide 8: Consistently Lower Unemployment Rates
7 Source: Department of Labor, Bureau of Labor Statistics. Note: Data is as May 2015. Consistently Lower Unemployment Rates 2014
Slide 9: Strong Real Estate Market
8 Source: Honolulu Board of Realtors (May 2015), National Association of Realtors (March 2015, released quarterly). Strong Real Estate Market
Slide 10: Continued Growth and Development
Continued Growth and Development 9 Residential High-Rise Condominium Development in Honolulu Proposed master plan includes 22 new high-rise towers in Honolulu Seven developments with approximately 2,400 units have completed successful sales and begun construction or have recently completed construct
Slide 11: Hawaii Banking Market
Hawaii Banking Market Note: Deposit data as of March 31, 2015. For consistency, total deposits at the regulated depository level. Source: SNL Financial 10 Total Deposits Market Rank Institution Type Ownership Branches (millions) Share 1 First Hawaiian Bank Bank Private - BNP 62 $15,175 38.1% 2 Bank
Slide 12: CPB Branch Positioning
Kauai (2) Oahu (28) Maui (4) Hawaii (2) CPB Branch Positioning ($ millions) June 30, 2015 11 Total Assets $4,968 Total Loans $3,006 Total Deposits $4,182 Total Branches 36
Slide 13: Relationship Banking Growth Opportunities
Relationship Banking Growth Opportunities 12 Utilizing data warehouse and customer relationship management system to provide a single view of customer and increase cross sales and improve retention by anticipating their financial needs Leveraging existing joint ventures with local real estate compan
Slide 14: Strong Loan Growth
Strong Loan Growth 13 Year over year growth of $212 million, or 7.58%. 3-Year CAGR of 12.68%.
Slide 15: Core Deposit Franchise
Core Deposit Franchise 14 $4.2 Billion in Deposits as of 6/30/2015, with total core deposits at 81%
Slide 16: Total Deposit Cost Advantage
Total Deposit Cost Advantage 15 Note: National peer group is comprised of publicly traded U.S. banks with total assets between $3 and $5 billion. Source: SNL Financial
Slide 17: Significantly Reduced NPAs
Significantly Reduced NPAs 16 0.65% of Total Assets
Slide 18: Strong Reserve Coverage
Strong Reserve Coverage 17 Note: National peer group is comprised of publicly traded U.S. banks with total assets between $3 and $5 billion. Source: SNL Financial
Slide 19: Technology & Efficiency Enhancements
Technology & Efficiency Enhancements 18 2014/2015 Completed 2015/ 2016 Underway Outsourced the Core System – Established a data governance foundation and a more disciplined IT resource management model. Outsourced Items Processing – Under declining processing volumes, converted IP related fixed cost
Slide 20: Targeting Improved Efficiency Ratio
Targeting Improved Efficiency Ratio 19 Normalize balance sheet composition and net interest income over time Improve efficiencies by leveraging data warehouse and branch automation functionalities once deployed Enhance customer profitability analyses post-development of CRM and predictive analytics
Slide 21: Capital Optimization
Capital Optimization 20 Reinstated quarterly cash dividend of $0.08 per share in 3Q2013; Increased cash dividend by 25% and 20% in 3Q2014 and 1Q2015, respectively Aggregate cash dividends of $28M paid since 3Q2013 Share repurchase activity to optimize the capital structure Repurchased $231 million o
Slide 22: Shareholder Value Drivers
Shareholder Value Drivers 21 Strong Hawaii Market Relationship Banking Growth Opportunities Asset Quality Improvements Technology & Efficiency Enhancements Capital Optimization
Slide 23: Appendix
APPENDIX Ge» CENTRAL PACIFIC INANCIAL CORP
Slide 24: Financial Highlights
Financial Highlights 23 ($ in millions) Q2 2015 Q1 2015 2014 2013 2012 2011 2010 Balance Sheet (period end data) Loans and leases $3,006.1 $2,967.8 $2,932.2 $2,630.6 $2,203.9 $2,064.4 $2,169.4 Total assets 4,967.9 4,965.9 4,853.0 4,741.2 4,370.4 4,132.9 3,938.1 Total deposits 4,182.3 4,188.6 4,110.3
Slide 25: Loan and Credit Composition
Loan and Credit Composition 24 ($ in Millions) Balance % Balance % $ % Hawaii Portfolio Residential Mortgage $1,352 45% $1,227 44% $125 10% Commercial Mortgage 588 20% 569 20% 19 3% Commercial & Ind/Leasing 344 11% 272 10% 72 26% Construction 80 3% 96 3% -16 -17% Consumer & Other 255 8% 243 9% 12 5%
Slide 26: Nonperforming Portfolio Marked to Market
Nonperforming Portfolio Marked to Market 25 [1] NPA includes nonaccrual loans, loans held for sale, and other real estate owned. [2] Net losses includes charge-offs, write-downs, losses on sale, and recoveries to date in respective loan buckets. Note: NPAs are evaluated for impairment on a quarterly
Slide 27: Net Interest Margin Relatively Stable in 2Q15
Net Interest Margin Relatively Stable in 2Q15 26 2Q 2015 NIM increased 4 bps vs. 1Q15 as result of: Primarily due to loan fees and prepayment penalties on early pay-offs 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 conti
Slide 28: CPF Peer Comparison
CPF Peer Comparison 27 [1] NPA includes nonaccrual loans, loans held for sale, and other real estate owned. Source: SNL Financial. National peer group is comprised of publicly traded U.S. banks with total assets between $3 and $5 billion. Financial data for CPF and National PG as of June 30, 2015 an
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