Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Sandler O'Neill West Coast Financial Services Conference 2014
26 slides from Central Pacific Financial Corp New's conference presentation, Mar 10, 2014
Slide 1: Central Pacific Financial Corp
Y CENTRAL PACIFIC FINANCIAL CORP JOHN C. DEAN President & Chief Executive Officer DENIS K. ISONO EVP & Chief Financial Officer LANCE A. MIZUMOTO EVP & Chief Banking Officer Sandler O'Neill West Coast Financial Services Conference March 11, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our business expectations. Forward-looking statements can be identified by the fact that they donot relate st
Slide 3: Corporate Profile
Corporate Profile Founded in 1954 by Japanese-American veterans of World War II Fourth largest financial institution in Hawaii with total assets of $4.7 billion and deposit market share of 10.9% $345 million recapitalization, including the rights offering, in 201 12 consecutive quarters of profitabi
Slide 4: Shareholder Value Drivers
Shareholder Value Drivers Strong Hawaii Market Relationship Banking Growth Opportunities Asset Qual pro’ ents Technology & Efficiency Enhancements CENTRAL PACIFIC FINANCIAL CORP
Slide 5: Hawaii at a Glance
Hawaii at a Glance = Population of 1.4 million (2013)- 13" in the nation by density = Eight major islands - the island of Oahu includes the state capital of Honolulu and has 70% of the state's population = GDP (2012): $72.4 billion - 39" in the nation = Unemployment rate (as of December 2013): 4.5%
Slide 6: Diversity of Tourism
Diversity of Tourism Visitor Arrivals - 2013 Other US West 63% aoa Japan, 18.9% Source: Hawi Toure authori CENTRAL Patric FINANCIAL CORP 5
Slide 7: Visitor Expenditures
Visitor Expenditures Annual Visitor Spending 2003 2004 2005 2006 2007 2008 2009 2010 201 2012 2013 2014 2015 2016 2017 Source: tate of Hovail Department of Business. Economie Development € Tourism canenniniene p FINANCIAL CORP
Slide 8: Construction Development Expanding
Construction Development Expanding 1. Residential High-Rise Condominium Developmentin Honolulu = Proposed master plan includes 22 new high-rise towers in Honolulu * Four towers with nearly 1,600 total units have already completed successful sales and begun the construction process 2. Rail Constructi
Slide 9: Strong Real Estate Market
Strong Real Estate Market Existing Single Family Median Sales Price 5700.0 ae Oahu, $650.0 $600.0 5500.0 J s100.0 J 53000 ee us. sir novia s0.0 2003 2004 2005 2006-2007 2008-2009 201020) 2022013 —Oahu —US. Source: Honolua Boerd of Restos, US. Census Buseou Nove: Date is as of December 213 CENTRAL PA
Slide 10: Lower Unemployment
Lower Unemployment 12.0% 10.0% 8.0% 6.0% ath Hawaii, 45% 2.0% 0.0% 2083 3004 3005 3006 3007 2008 3009201208120 Jan sh Souree: Department of Labor, Bweauof Labor Stats ‘Nowe: Havel unemployment datas asof December 201. CENTRAL PACIFIC FINANCIAL CORP. 9
Slide 11: Hawaii Banking Market
Hawaii Banking Market Total Ownership Branches Deposits Market (millions) 1 First Hawaiian Bank == Bank Private - BNP @ s 3578 373% 2 Bank of Hawaii Bank Public B 1980 32.9% 3 American Savings Bank Savings Bank _ Private - HEI 7 4409 naa 4 Central Pacific Bank Bank Public 35 3936 10.9% 5 Tervitorial
Slide 12: CPB Branch Positioning
CPB Branch Positioning Kauai é Total Assets 84,748 Hawaii Total Loans 93,631 Total Deposits $3,936 Total Branches 35 CENTRAL PaciFIC FINANCIAL CORP
Slide 13: Relationship Banking Growth Opportunities
Relationship Banking Growth Opportunities Central Pat Homeloa SSTION SG, — commercat Sr = Banking Business swine Magee International Ban) * Single point of contact forall customer needs * Focus on select strategic target markets = Enhanced delivery channels and technology systems to strengthen custo
Slide 14: Strong Loan Growth
Strong Loan Growth Balances Outstanding saagz 438 2007 2008 =Comml Mtg 2009 = Construct/Dev 2010 = cad =Consumer/Other = Res Mtg CENTRAL PactFIC B FINANCIAL CORP
Slide 15: Sound Deposit Franchise
Sound Deposit Franchise Government CDs Noninterest- 15% (CDs > siooM, 6% (CDs < 100M Interest-Bearing DDA Savings & Money_ 18% Mkt 31% Note: Data a of December 3203 ee FINANCIAL CORP 14
Slide 16: Total Deposit Cost Advantage
Total Deposit Cost Advantage Deposit Cost 2007 2008 2009 2010 aon 202 203 Note: Per groupiscompried of publicly traded US. banks wth total ees between 3 ands bilion ‘Source SNE Fane emp: FINANCIAL CORP ct
Slide 17: Significantly Reduced NPAs
Significantly Reduced NPAs s600 a $500 s4oo 0: 2 a $303 = S195, s200 siz ‘s100 S90 - | = . = 2007 2008 2009 2010 2ou 202 203 =C&D mCommiMtg Res Mtg m= C&l/Other
Slide 18: Strong Reserve Coverage
Strong Reserve Coverage ALLL 8.89% 2007 2008 2009 2010 20n 202 2053 CPF = Peers Note Peer sroupi compte of publicly traded US. benkrwith total easetsbenween $3 ands Billion. Source SNE Fanci ainitene FINANCIAL CORP iva
Slide 19: Strategies and Enabling Technologies
Strategies and Enabling Technologies THEME Providea seamless PIN) integrated channel experience ‘THEME Builda data centric organization (ed THEME Deliver continuous 3 oe improvement THEME Proactively Manage Risk 4 Mobile Banking Platform (MRDC) CRM solution Enterprise Data Warehouse Data Integrity &
Slide 20: Improve Efficiency Ratio
Improve Efficiency Ratio = Normalize loan/deposit ratio se « over time Efficiency Ratio —_ *Execute continuous 0.0% performance improvement. anny projects 7.0% oct * Optimize staffing and ot ‘occupancy needs 40.0% 30.0% "Leverage data warehouse and aa CRM to improve customer oem profitability oot 30
Slide 21: Capital Optimization
Capital Optimization = Majority of Deferred Tax Asset was recognized in 1Q13 = Reinstated quarterly cash dividend of $0.08 per share on the outstanding common shares = On February 21, 2014, announced share repurchase transactions totaling $125 million (tender offer for up to $68.8 million of shares
Slide 22: Shareholder Value Drivers
Shareholder Value Drivers Strong Hawaii Market Relationship Banking Growth Opportunities Asset Qual mprovements Technology & E mcy Enhancements CENTRAL PaciFIC = FINANCIAL CORP
Slide 23: Appendix
V \ APPENDIX CENTRAL PACIFIC FINANCIAL CORP
Slide 24: Financial Highlights
Financial Highlights ‘Balance Sheet period end data) Loans and leases 266 amp 0844 SNH GaBO — SHOIDS SHAR Toul ase 47n2 4344S Sang 84 Total deposits 3o62 36H Gates | go G56B9 3 gom7 ‘oul shasholdts'euly ne ot a ee TT 26 44 {Income Statement Net interest income su97 sures aon Provision (credit) forlo
Slide 25: Loan and Credit Composition
Loan and Credit Composition Hawaii Portfolio Residential Mortgage sso 47% s1036 $203 20% ‘Commerical Mortgage $4537 $473 “$20 “4% ‘Commerical & Ind/Leasing, 562 10% 5255 2 3% Construction si 360 sa 20% Consumer & Other so __o% S43 $8; 6% “Total Hawaii Portfolio Bags 86% 5967 5289 asi Mainland Purcha
Slide 26: Nonperforming Portfolio Marked to Market
Nonperforming Portfolio Marked to Market (Sin Million Hawai Residential Construction 87 3 S10 so 87 70% Commercial Mortgage 5 3 8 so 85 63% Residential Mortgage sau $3 824 so san 88% C8&i/Leasing S4 sz 86 so s4 67% Total Hawaii Portfolio 37 su 548 so x 7% Mainland Commercial Construction st $2 $3 $0
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