Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Investor Presentation (September 2021)
24 slides from Central Pacific Financial Corp New's investor presentation, Sep 8, 2021
Slide 1: Investor Presentation September 2021
Investor Presentation September 2021
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: Presenting Executives
3Central Pacific Financial Corp. Paul Yonamine Chief Executive Officer David Morimoto Chief Financial Officer Catherine Ngo President Kevin Dahlstrom Chief Marketing Officer Arnold Martines Chief Banking Officer
Slide 4: Central Pacific Financial - Corporate Profile
4Central Pacific Financial Corp. Central Pacific Financial - Corporate Profile MARKET INFORMATION NYSE TICKER CPF SUBSIDIARY CENTRAL PACIFIC BANK (CPB) TOTAL ASSETS $7.2 BILLION MARKET CAP $710 MILLION SHARE PRICE $25.31 DIVIDEND YIELD 3.67% Central Pacific Financial Corp. is a Hawaii-based bank hol
Slide 5: 2nd Quarter 2021 Highlights
5Central Pacific Financial Corp. 2nd Quarter 2021 Highlights PROFITABILITY NET INCOME / DILUTED EPS $18.7 Million / $0.66 ROA/ROE 1.06% / 13.56% NET INTEREST MARGIN 3.16% Actual 2.93% Normalized* EFFICIENCY RATIO 66.2% * Normalized to exclude PPP impact, refer to slide 24 for additional details. 1 N
Slide 6: Consistent Growth & Positive Earnings Trends
6Central Pacific Financial Corp. Consistent Growth & Positive Earnings Trends * Annualized 4,000 4,500 5,000 5,500 6,000 6,500 7,000 2016 2017 2018 2019 2020 Q1 2021 Q2 2021 $ M ill io ns Total Deposits $6.4B @ 0.06% avg cost 3,000 3,500 4,000 4,500 5,000 5,500 2016 2017 2018 2019 2020 Q1 2021 Q2 20
Slide 7: Resilient Hawaii Market
7Central Pacific Financial Corp. Resilient Hawaii Market STRENGTHS AND RECOVERY FACTORS • Notwithstanding the recent uptick in case counts, Hawaii still has the 2nd lowest per capita COVID-19 case rate in the nation1 • Approximately 63% of Hawaii residents are fully vaccinated2 • Visitor arrivals re
Slide 8: Shareholder Value Drivers
8Central Pacific Financial Corp. Shareholder Value Drivers Innovation & Digital Banking Small Business & Residential Mortgage Leader Japan Competitive Advantage Efficiency Strategies 1 2 3 4 Solid Credit, Capital and Liquidity5
Slide 9: Innovation & Digital Banking Accomplishments
9Central Pacific Financial Corp. 2Q 2021 COMING SOON 1Q 2021 2H 2020 1H 2020 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 cons
Slide 10: Marketing Innovation: 'CPB Ambassadors'
10Central Pacific Financial Corp. Marketing Innovation: ‘CPB Ambassadors’
Slide 11: Small Business Leader
11Central Pacific Financial Corp. Small Business Leader SMALL BUSINESSES SBA Lender of the Year Category II, 7 years in a row Originated more loans than the 3 other large Hawaii banks combined1 Innovative Programs & Technology CPB Foundation recently announced a financial management and networking
Slide 12: SBA Paycheck Protection Program (PPP)
12Central Pacific Financial Corp. SBA Paycheck Protection Program (PPP) Funded over 11,800 PPP loans totaling $875 million, which represented 30% of all PPP loans in the State of Hawaii (based on count) ~90% of 2020 and ~30% of 2021 originations have been forgiven/paid down** Relationship buil
Slide 13: Residential Mortgage Strength in Hawaii
13Central Pacific Financial Corp. Residential Mortgage Strength in Hawaii SMALL BUSINESSES • $1.2 Billion in total production in 2020; $0.6 Billion total production in 2021 YTD through June • #2 lender in Hawaii in total purchase mortgage volume in 2020 and 2021 YTD through June • Lead partner with
Slide 14: Japan Competitive Advantage
14Central Pacific Financial Corp. Japan Competitive Advantage CPB JAPAN ADVISORS GROUP • Partnership with several top Japanese Executives, including formerly or currently from: Nippon Paint Holdings, MUFG, Sony Hawaii, Wells Fargo Securities-Japan TSUBASA ALLIANCE • Strategic financial alliance of 1
Slide 15: Efficiency Strategies
15Central Pacific Financial Corp. Efficiency Strategies Branch Consolidation - 4 branches consolidated in 2020 - With continued migration to digital, additional branches under consideration Real Estate Optimization - Backoffice space consolidation - Purchasing strategic real estate locations Process
Slide 16: Strong Credit Metrics
16Central Pacific Financial Corp. Strong Credit Metrics * Excludes the PPP loan portfolio from total loans. Note: Peer Average includes banks $3-10B in assets. Source S&P Global. $0 $20 $40 $60 $80 $100 0.90% 1.10% 1.30% 1.50% 1.70% 1.90% 2Q20* 3Q20* 4Q20* 1Q21* 2Q21* ALLOWANCE FOR CREDIT LOSSES (AC
Slide 17: Solid Liquidity & Capital Position
17Central Pacific Financial Corp. Solid Liquidity & Capital Position STRONG CAPITAL • $230 million capital cushion to the well-capitalized Total RBC minimum of 10% at 6/30/21 • $55 million subordinated note offering completed in October 2020 • Resumed share purchases in 2Q 2021 under the $25 million
Slide 18: Mahalo
Mahalo
Slide 19: Appendix
19Central Pacific Financial Corp. Appendix
Slide 20: Total Loan Portfolio
20Central Pacific Financial Corp. Total Loan Portfolio LOAN PORTFOLIO HIGHLIGHTS • Conservative and Diversified Loan Portfolio – 44% Commercial – 56% Consumer • Predominantly Hawaii Focused – 88% Hawaii – 12% Mainland/Guam • 78% Real Estate Secured (excluding PPP loan balances from total loan portfo
Slide 21: SBA Paycheck Protection Program (PPP)
21Central Pacific Financial Corp. SBA Paycheck Protection Program (PPP) IN $ MILLIONS (except for loan count) As of 6/30/21 ROUND 1 & 2 (2020) ROUND 3 (2021) FUNDED $/COUNT $558.9 ~7,200 LOANS $320.9 ~4,600 LOANS FORGIVENESS/ PAYDOWNS TO DATE $397.1 $32.2 EARNED NET FEES TO DATE $17.0 $3.6 UNEARNED
Slide 22: Environmental, Social & Governance (ESG)
22Central Pacific Financial Corp. Environmental, Social & Governance (ESG) 2020 ESG report can be viewed here: https://www.cpb.bank/esg Includes the 4 pillars below:
Slide 23: Historical Financial Highlights
23Central Pacific Financial Corp Historical Financial Highlights QTD QTD ($ in millions) 2Q21 1Q21 2020 2019 2018 2017 2016 Balance Sheet (period end data) Loans and leases 5,077.3$ 5,137.8$ 4,964.1$ 4,449.5$ 4,078.4$ 3,770.6$ 3,524.9$ Total assets 7,178.5 6,979.3 6,594.6 6,012.7 5,807.0 5,623.7 5,3
Slide 24: Non-GAAP Financial Measures - Excluding PPP
24Central 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-end
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