Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Investor Presentation (March 2022)
25 slides from Central Pacific Financial Corp New's investor presentation, Mar 7, 2022
Slide 1: Investor Presentation March 2022
Investor Presentation March 2022
Slide 2: Forward-Looking Statements
2Central Pacific Financial Corp. Forward-Looking Statements This document may contain forward-looking statements 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, n
Slide 3: Central Pacific Financial - Corporate Profile
3Central Pacific Financial Corp. Central Pacific Financial - Corporate Profile MARKET INFORMATION NYSE TICKER CPF SUBSIDIARY CENTRAL PACIFIC BANK (CPB) TOTAL ASSETS $7.4 BILLION MARKET CAP $807 MILLION SHARE PRICE $29.19 DIVIDEND YIELD 3.56% Central Pacific Financial Corp. is a Hawaii-based bank hol
Slide 4: Hawaii Economy Trending Favorably
4Central Pacific Financial Corp. Hawaii Economy Trending Favorably STRENGTHS AND RECOVERY FACTORS • Hawaii has the lowest per capita COVID-19 case rate in the nation1 • Hawaii Safe Travels and Safe Access programs which require proof of vaccination or a negative COVID test to avoid quarantine and en
Slide 5: 4th Quarter 2021 Highlights
5Central Pacific Financial Corp. 4th Quarter 2021 Highlights PROFITABILITY NET INCOME / DILUTED EPS $22.3 Million / $0.80 ROA/ROE 1.22% / 16.05% NET INTEREST MARGIN 3.08% Actual 2.87% Normalized* EFFICIENCY RATIO 65.6% * Normalized to exclude PPP impact. 1 Net charge-offs (NCOs) are annualized 2 Cla
Slide 6: Consistent Loan Growth
6Central Pacific Financial Corp. Consistent Loan Growth 3,000 3,500 4,000 4,500 5,000 5,500 2016 2017 2018 2019 2020 2021 $ M ill io ns Loan Balances Outstanding-Excluding PPP $5.0B C&I, $(15) Construction, $(3) Coml Mtge, $64 Home Equity, $86 Consumer, $144 Resi Mtge, $186 Annual Loan Growth in $ M
Slide 7: Shareholder Value Drivers
7Central Pacific Financial Corp. Shareholder Value Drivers Digital and Banking-as-a-Service (“BaaS”) Small Business & Residential Mortgage Leader Japan Competitive Advantage Efficiency Strategies 1 2 3 4 Solid Credit, Capital and Liquidity5
Slide 8: Digital Transformation Accomplishments
8Central Pacific Financial Corp. 2Q 2021 3Q-4Q 2021 1Q 2021 2020 2022 and beyond Online Account Opening Consumer platform to open deposit accounts and term loans launched January 2021 Business Online Banking New platform designed for small businesses launched February 2021 Online/Mobile Banking New
Slide 9: Successful Launch of Shaka Digital Checking
9Central Pacific Financial Corp. Successful Launch of Shaka Digital Checking • Hawaii’s first fully digital bank account launched early November 2021 and was preceded by Hawaii’s largest social media influencer campaign • Additional Shaka products currently under development • Market differentiating
Slide 10: Swell: A New Kind of Financial Solution
10Central Pacific Financial Corp Swell A New Kind of Financial Solution • Launches mid-2022 • CPF made an equity investment in Swell along with Elevate Credit, Inc. (“Elevate”) and other 3rd party fintech investors • Revenue sharing agreement between the entities • Digital checking and line-of-credi
Slide 11: Swell Milestones
11Central Pacific Financial Corp Swell Milestones January 2022 Swell Financial entity incorporated Completed initial round of funding February 2022 Website launch (swellmoney.com), Started building community of followers Completed $10 million Series A funding led by investments from Park Cities
Slide 12: CPF BaaS Strategy
12Central Pacific Financial Corp CPF BaaS Strategy • “One-Two Punch”: Significant growth and financial success in Hawaii + mainland BaaS business with great potential • Transformation process began in 2019 with investment in technology which has paid off with our mobile app now rated 4.9 out of 5 on
Slide 13: Small Business Leader
13Central Pacific Financial Corp. Small Business Leader SMALL BUSINESSES 2021 Lender of the Year Category 2 by the SBA’s Hawaii District Office Originated more SBA loans based on count and $ than the 3 other large Hawaii banks combined1 Innovative Programs & Technology CPB Foundation started a fin
Slide 14: Outperformed on the SBA Paycheck Protection Program (PPP)
14Central Pacific Financial Corp. Outperformed on the SBA Paycheck Protection Program (PPP) Funded over 11,800 PPP loans totaling $875 million, which represented approximately 30% of all PPP loans in the State of Hawaii (based on count) ~90% of originations have been forgiven/paid down** Relat
Slide 15: Residential Mortgage Strength in Hawaii
15Central Pacific Financial Corp. Residential Mortgage Strength in Hawaii SMALL BUSINESSES • $1.2 Billion in total production in 2021 • #1 lender in Hawaii in total purchase mortgage volume in 2021 • Lead partner with developers on many large condominium developments • Unique mortgage broker joint-v
Slide 16: Japan Competitive Advantage
16Central Pacific Financial Corp. Japan Competitive Advantage • Paul Yonamine is a Director of SMBC and the Board Chair of the U.S. Japan Council. He previously served as the IBM Japan President and led KPMG Consulting in Japan • Hikaru Utsugi, head of CPB International banking spent 30+ years at Mi
Slide 17: Efficiency Strategies
17Central Pacific Financial Corp. Efficiency Strategies Branch Consolidation - 5 branches consolidated in 2020-2021. Currently operating 30 branches in the State of Hawaii - With continued migration to digital, 3 additional branches planned to be consolidated in 2022 Real Estate Optimization - Backo
Slide 18: Strong Asset Quality
18Central Pacific Financial Corp. Strong Asset Quality • Historically low levels of problem assets, which have continued to outperform during the pandemic • CPF asset quality compares favorably to peer banks 0.12% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Nonperform
Slide 19: Solid Capital Position
19Central Pacific Financial Corp. Solid Capital Position STRONG CAPITAL • Increased quarterly cash dividend by 4% to $0.26 per share which will be payable on March 15, 2022 • $229 million capital cushion to the well-capitalized Total RBC minimum of 10% at 12/31/21 • Repurchased 305,594 shares in the
Slide 20: Mahalo
Mahalo
Slide 21: Appendix
21Central Pacific Financial Corp. Appendix
Slide 22: Net Interest Margin & Rate Sensitivity
22Central Pacific Financial Corp. Net Interest Margin & Rate Sensitivity * Normalized to exclude PPP impact, refer to slide 25 for additional details. • NIM impacted by low interest rate environment and excess liquidity • Cost of total deposits currently just 0.06% • Balance sheet is slightly asset
Slide 23: Historical Financial Highlights
23Central Pacific Financial Corp Historical Financial Highlights (*) Certain amounts in prior years were reclassified to conform to current year's presentation. These reclassifications had an immaterial impact to our previously reported efficiency ratios. ($ in millions) 2021 2020 2019 2018 2017 201
Slide 24: Environmental, Social & Governance (ESG)
24Central Pacific Financial Corp. Environmental, Social & Governance (ESG) 2021 ESG report can be viewed here: https://www.cpb.bank/esg
Slide 25: Non-GAAP Financial Measures - Excluding PPP
25Central Pacific Financial Corp. Non-GAAP Financial Measures - Excluding PPP 1. Net interest income excludes PPP interest income less an assumed funding cost of 0.25% and PPP net loan fee income; Total Avg. Interest-Earning Assets excludes average PPP loan balances; Total Assets excludes period- en
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