Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Sandler O'Neill Investor Conference 2016
27 slides from Central Pacific Financial Corp New's conference presentation, Mar 7, 2016
Slide 1: Sandler O'Neill Investor Conference March 2016
A. CATHERINE NGO President & Chief Executive Officer SANDLER O’NEILL INVESTOR CONFERENCE March 2016 EXHIBIT 99.1
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: Corporate Profile
Corporate Profile 2 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 ~ 99% from recapitalization pr
Slide 4: Shareholder Value Drivers
Shareholder Value Drivers 3 Strong Hawaii Market Relationship Banking Growth Opportunities Asset Quality Improvements Technology & Efficiency Enhancements Capital Optimization
Slide 5: Hawaii at a Glance
Population of 1.4 million (2015) Eight major islands – Oahu is home to 70% of the state’s total population Real GDP (2015) $70.8 billion, +2.0% from 2014. Forecasts expect a 2.3% increase in 2016. Unemployment rate (2015) 3.2% is below the national unemployment rate of 5.0% Economy driven
Slide 6: Diversity of Tourism – Visitor Arrivals
Diversity of Tourism – Visitor Arrivals 5 Source: Hawaii Tourism Authority
Slide 7: Consistently Lower Unemployment Rates
6 Source: Department of Labor, Bureau of Labor Statistics. Note: Data is as December 2015. Consistently Lower Unemployment Rates
Slide 8: Strong Real Estate Market
7 Source: Honolulu Board of Realtors (December 2015), National Association of Realtors (December 2015, released quarterly). Strong Real Estate Market
Slide 9: Continued Growth and Development
Continued Growth and Development 8 1. Residential High‐Rise Condominium Development in Honolulu Proposed master plan includes 22 new high‐rise towers in Honolulu Ten developments have completed successful sales and begun construction or have completed construction over the past few years. 2. Rai
Slide 10: Hawaii Banking Market
Hawaii Banking Market Note: Deposit data as of December 31, 2015. For consistency, total deposits at the regulated depository level and include domestic deposits. Source: SNL Financial 9 Total Deposits Market Rank Institution Type Ownership Branches (millions) Share 1 First Hawaiian Bank Bank Privat
Slide 11: CPB Branch Positioning
Kauai (2) Oahu (28) Maui (4) Hawaii (2) CPB Branch Positioning ($ millions) December 31, 2015 10 Total Assets $5,131 Total Loans $3,212 Total Deposits $4,433 Total Branches 36
Slide 12: Relationship Banking Growth Opportunities
Relationship Banking Growth Opportunities 11 Launched a customer experience initiative to create a competitive advantage and differentiate ourselves from the rest of the market Identified and focused on select market niches Established a strategic alliance with a regional bank in Japan to deve
Slide 13: Strong Loan Growth
Strong Loan Growth 12 Year over year growth of $280 million, or 9.55%. 3‐Year CAGR of 13.38%.
Slide 14: Core Deposit Franchise
Core Deposit Franchise 13 $4.4 Billion in Deposits as of 12/31/2015, with total core deposits at 81%
Slide 15: Total Deposit Cost Advantage
Total Deposit Cost Advantage 14 Note: National peer group is comprised of publicly traded U.S. banks with total assets between $3 and $5 billion. Source: SNL Financial
Slide 16: Significantly Reduced NPAs
Significantly Reduced NPAs 15 0.32% of Total Assets
Slide 17: Strong Reserve Coverage
Strong Reserve Coverage 16 Note: National peer group is comprised of publicly traded U.S. banks with total assets between $3 and $5 billion. Source: SNL Financial
Slide 18: Technology & Efficiency Enhancements
Technology & Efficiency Enhancements 17 2014/ 2015 Completed 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 costs
Slide 19: Targeting Improved Efficiency Ratio
Targeting Improved Efficiency Ratio 18 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 anal
Slide 20: Capital Optimization
Capital Optimization 19 Reinstated quarterly cash dividend of $0.08 per share in 3Q2013. Increased cash dividend by 25%, 20%, and 17% in 3Q2014, 1Q2015, 4Q2015, respectively. Aggregate cash dividends of $46 million returned to our shareholders since 3Q2013 Share repurchase activity to optimi
Slide 21: Shareholder Value Drivers
Shareholder Value Drivers 20 Strong Hawaii Market Relationship Banking Growth Opportunities Asset Quality Improvements Technology & Efficiency Enhancements Capital Optimization
Slide 22: Appendix
APPENDIX €& \. CENTRAL PACIFIC FINANCIAL CORP
Slide 23: Financial Highlights
Financial Highlights 22 ($ in millions) 2015 2014 2013 2012 2011 Balance Sheet (period end data) Loans and leases $3,211.5 $2,932.2 $2,630.6 $2,203.9 $2,064.4 Total assets 5,131.3 4,853.0 4,741.2 4,370.4 4,132.9 Total deposits 4,433.4 4,110.3 3,936.2 3,680.8 3,443.5 Total shareholders' equity 494.6
Slide 24: Loan and Credit Composition
Loan and Credit Composition 23 ($ in Millions) Balance % Balance % $ % Hawaii Portfolio Residential Mortgage $1,436 45% $1,283 44% $153 12% Commercial Mortgage 643 20% 587 20% 56 10% Commercial & Ind/Leasing 341 11% 290 10% 51 18% Construction 82 3% 111 4% ‐29 ‐26% Consumer & Other 273 8% 254 9% 19
Slide 25: Nonperforming Portfolio Marked to Market
Nonperforming Portfolio Marked to Market 24 [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 26: Net Interest Margin Relatively Stable in 2015
Net Interest Margin Relatively Stable in 2015 25 2015 NIM stayed relatively flat from 2014. Expect NIM to be in the 3.25 t0 3.35% range over the next couple of quarters. Future improvements in the NIM will result from continuing to grow the loan portfolio and stabilizing the investment and loa
Slide 27: CPF Peer Comparison - 4Q2015
CPF Peer Comparison‐ 4Q2015 26 [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 December
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