Central Pacific Financial Corp New · NYSE:CPF

Central Pacific Financial Corp New — Central Pacific Financial — Q4 2022 Earnings Presentation

15 slides from Central Pacific Financial Corp New's earnings presentation, Jan 25, 2023

  1. Slide 1: 4th Quarter 2022 Earnings Supplement

    4th Quarter 2022 Earnings Supplement January 25, 2023

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements This document 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 of dividends, capital position, credit losses, net interest margin or oth

  3. Slide 3: Strong Hawaii Economic Position

    Strong Hawaii Economic Position FACTORS FOR A FAVORABLE HAWAII OUTLOOK Rebound in International visitors expected • Japanese visitors to Hawaii expected to increase with travel restrictions lifted and strengthening yen Military spending serves a prominent and growing role in Hawaii’s economy • Defen

  4. Slide 4: 4th Quarter 2022 Financial Highlights

    4th Quarter 2022 Financial Highlights 4Q 2022 3Q 2022 2022Y NET INCOME / DILUTED $20.2 Mil / $16.7 Mil / $73.9 Mil / • Highest quarterly net income and EPS EPS $0.74 $0.61 $2.68 compared to prior 3 quarters RETURN ON ASSETS 1.09% 0.91% 1.01% • Strong loan growth and deposit growth (ROA) • Net intere

  5. Slide 5: Consistent Loan Growth

    Consistent Loan Growth Loan Portfolio Composition as of December 31, 2022 C&I Consumer Loan Balances Outstanding-Excluding PPP 14% 10% Construction 6,000 3% $5.55B 5,500 5,000 $ Mils 4,500 Coml Mortgage 25% 4,000 Residential Mortgage 35% 3,500 3,000 2016 2017 2018 2019 2020 2021 2022 Home Equity 13%

  6. Slide 6: Solid Low-Cost Core Deposit Portfolio

    Solid Low-Cost Core Deposit Portfolio Total Deposits $6.7B Deposit Portfolio Composition 7,000 as of December 31, 2022 Time 6,500 15% Noninterest Bearing Demand 6,000 31% $ Mils 5,500 5,000 Savings & Money Market 4,500 33% Interest Bearing Demand 4,000 21% 2016 2017 2018 2019 2020 2021 2022 • Strong

  7. Slide 7: Strong Asset Quality

    Strong Asset Quality Delinquencies/Total Loans Criticized/Total Loans 1.75% 1.50% 1.53% 1.39% 1.39% 0.03% 0.03% 0.02% 0.03% 0.03% 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 NPAs/Total Loans Annualized NCO/Avg Loans 0.12% 0.12% 0.12% 0.10% 0.09% 0.09% 0.08% 0.08% 0.03% 4Q21 1Q22 2Q22 3Q22 4Q22

  8. Slide 8: Strong Credit Profile to Weather a Recession

    Strong Credit Profile to Weather a Recession Key Strength Factors: Majority of Loans in • 83% of total loan portfolio is in Hawaii • Hawaii real estate values are exceptionally strong and have a track Hawaii record of outperforming the nation during past recessions Real Estate Focus • Loan portfolio

  9. Slide 9: Mainland Consumer Portfolio – Managed Risk

    Mainland Consumer Portfolio – Managed Risk Strong Credit Criteria • Purchases adhere to CPF’s strong credit criteria • Weighted average credit scores at origination 740+ FICO Diversified • Portfolio consists of Auto ($136MM, 30%) Home Improvement ($133MM, 30%) and Unsecured ($183MM, 40%) • Home impr

  10. Slide 10: Allowance for Credit Losses

    Allowance for Credit Losses • $1.0 million provision for credit loss on loans in 4Q22 driven by loan growth and net charge-offs; partially offset by a $0.4 million credit to the reserve for unfunded commitments, for a total provision for credit loss of $0.6 million • ACL coverage ratio at 1.15% for

  11. Slide 11: Solid Capital Position

    Solid Capital Position Regulatory Capital Ratios As of December 31, 2022 STRONG CAPITAL AND SHAREHOLDER RETURN 16.0% 13.5% $195 Mil 14.0% capital • Maintained quarterly cash dividend at $0.26 per share which 12.0% 10.5% cushion to 10.0% will be payable on March 15, 2023 8.5% well 8.0% capitalized •

  12. Slide 12: Appendix

    Appendix

  13. Slide 13: Central Pacific Bank recognized by Newsweek and Forbes – Best Bank in Hawaii

    Central Pacific Bank recognized by Newsweek and Forbes – Best Bank in Hawaii * Central Pacific Financial Corp. 13 * Newsweek ranked CPB best small bank in Hawaii for 2023. Forbes named CPB best bank in Hawaii for 2022.

  14. Slide 14: Environmental, Social & Governance (ESG)

    Environmental, Social & Governance (ESG) 2021 ESG report published in early 2022 can be viewed here: https://www.cpb.bank/esg Central Pacific Financial Corp. 14

  15. Slide 15: Mahalo

    Mahalo

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