Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Q1 2023 Earnings Presentation
18 slides from Central Pacific Financial Corp New's earnings presentation, Apr 26, 2023
Slide 1: 1st Quarter 2023 Earnings Supplement
1st Quarter 2023 Earnings Supplement April 26, 2023
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
Slide 3: Strong Hawaii Economic Position
Strong Hawaii Economic Position FACTORS FOR A FAVORABLE HAWAII OUTLOOK Tourism back up to pre-pandemic levels Substantial Federal government contracts and public construction activity Strong real estate market with stable prices Low unemployment Cooling inflation Employment Tourism Housing
Slide 4: 1st Quarter 2023 Financial Highlights
1st Quarter 2023 1Q23 4Q22 Financial Highlights NET INCOME / $16.2 Mil / $20.2 Mil / DILUTED EPS $0.60 $0.74 • Stable loan and deposit balances RETURN ON 0.87% 1.09% ASSETS (ROA) • Strong liquidity position RETURN ON 13.97% 18.30% • Asset quality and capital remained solid EQUITY (ROE) TOTAL LOAN +$
Slide 5: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Composition Loan Balances Outstanding-Excluding PPP as of March 31, 2023 6.00 Consumer C&I 14% 10% 5.55 5.56 Construction 5.50 3% 5.01 5.00 $ Billions 4.55 4.45 4.50 Coml Mortgage 4.08 25% 4.00 3.77 Residential Mortgage 3.53 35% 3.50 3.00 Home Equity 2016 20
Slide 6: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE Portfolio Composition as of March 31, 2023 Storage Other 2% 4% Shopping Center Industrial/Warehouse 3% 27% Hotel 7% Owner- Mainland Occupied 24% 25% Office 14% Investor Hawaii 76% 75% Restaurant 2% Retail Apartment 18% 23% • Diversified CRE portfolio, primarily H
Slide 7: Consumer Loan Portfolio
Consumer Loan Portfolio Consumer Loan Portfolio as of March 31, 2023 • Total Hawaii Consumer $343MM / Total Mainland Consumer $429MM (in Millions) • Weighted average origination FICO: Mainland- Unsecured • 742 for Hawaii Consumer $165 , 21% HI- Auto • 740 for Mainland Consumer $228 , 30% • YTD Annua
Slide 8: Relationship Deposits - Diversified & Granular
Relationship Deposits - Diversified & Granular Total Deposits Deposit Portfolio Composition 7.00 Time 6.74 6.75 17% 6.64 Noninterest 6.50 Bearing Demand 30% 6.00 5.80 $ Billions 5.50 5.12 4.96 4.95 5.00 4.61 Savings & Money Market 4.50 32% Interest Bearing Demand 21% 4.00 2016 2017 2018 2019 2020 20
Slide 9: Strong Asset Quality
Strong Asset Quality Criticized/Total Loans Delinquencies/Total Loans 1.75% 1.53% 1.39% 1.39% 1.28% 0.03% 0.02% 0.03% 0.03% 0.03% 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 NPAs/Total Loans Annualized NCO/Avg Loans 0.16% 0.12% 0.12% 0.10% 0.09% 0.09% 0.10% 0.08% 0.08% 0.03% 1Q22 2Q22 3Q22 4Q2
Slide 10: 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 record of Hawaii outperforming the nation during past recessions • Loan portfolio is over 76% secur
Slide 11: Allowance for Credit Losses
Allowance for Credit Losses • $1.6MM provision for credit loss on loans in 1Q23 driven by net charge-offs, plus a $0.3MM reserve for unfunded commitments, for a total provision for credit loss of $1.9MM • ACL coverage ratio at 1.14% for 1Q23 $ Millions 1Q22 2Q22 3Q22 4Q22 1Q23 Beginning Balance 68.1
Slide 12: High Quality Securities Portfolio
High Quality Securities Portfolio Investment Portfolio Composition as of March 31, 2023 Non-Agency • $1.3B or ~18% of total assets Corporate CMBS/RMBS Other 2% 2% 2% Municipals • 80% government agency bonds 14% • 92% AAA rated • No securities sales YTD Gov't Agency 80% • HTM/AFS portfolio unrealized
Slide 13: Available Sources of Liquidity
Available Sources of Liquidity • Ample alternative sources of liquidity available • Available sources of liquidity total 132% of uninsured/uncollateralized deposits $ Millions March 31, 2023 Cash on balance sheet 199 Other Funding Sources: Unpledged securities* 682 FHLB available borrowing capacity
Slide 14: Solid Capital Position
Solid Capital Position Regulatory Capital Ratios As of March 31, 2023 $200 Mil 16.0% capital 13.6% cushion to 14.0% STRONG CAPITAL AND SHAREHOLDER RETURN 12.0% 10.6% well 10.0% 8.6% capitalized • TBV per share improved to $17.44 due to net income and 8.0% minimum improvement in AOCI 6.0% 4.0% • Main
Slide 15: Appendix
Appendix
Slide 16: Central Pacific Bank recognized by Newsweek and Forbes – Best Bank in Hawaii
Central Pacific Bank recognized by Newsweek and Forbes – Best Bank in Hawaii* * Newsweek ranked CPB best small bank in Hawaii for 2023. Forbes named CPB best bank in Hawaii for 2022. Central Pacific Financial Corp. 16
Slide 17: Environmental, Social & Governance (ESG) Focus
Environmental, Social & Governance (ESG) Focus Central Pacific Financial Corp. * 2022 ESG Report can be found here: https://www.cpb.bank/esg 17
Slide 18: Mahalo
Mahalo Central Pacific Financial Corp. 18
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