Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Investor Presentation (November 2021)
24 slides from Central Pacific Financial Corp New's investor presentation, Nov 16, 2021
Slide 1: Investor Presentation November 2021
Investor Presentation November 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: 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 $7.3 BILLION MARKET CAP $797 MILLION SHARE PRICE $28.54 DIVIDEND YIELD 3.29% Central Pacific Financial Corp. is a Hawaii-based bank hol
Slide 4: 3rd Quarter 2021 Highlights
4Central Pacific Financial Corp. 3rd Quarter 2021 Highlights PROFITABILITY NET INCOME / DILUTED EPS $20.8 Million / $0.74 ROA/ROE 1.15% / 14.83% NET INTEREST MARGIN 3.31% Actual 2.96% Normalized* EFFICIENCY RATIO 62.3% * Normalized to exclude PPP impact. 1 Net charge-offs (NCOs) are annualized 2 Cla
Slide 5: Consistent Growth & Positive Earnings Trends
5Central Pacific Financial Corp. Consistent Growth & Positive Earnings Trends * Annualized YTD 9/30/2021 • Strong, consistent and balanced loan and deposit growth • Pre-tax, pre-provision earnings continue to grow 3,000 3,500 4,000 4,500 5,000 5,500 2016 2017 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 $
Slide 6: Resilient Hawaii Market
6Central Pacific Financial Corp. Resilient Hawaii Market STRENGTHS AND RECOVERY FACTORS • Hawaii has the lowest per capita COVID-19 case rate in the nation1 • Approximately 72% of Hawaii residents are fully vaccinated2 • Visitor numbers rebounded in Summer of 2021, and are expected to be very strong
Slide 7: Shareholder Value Drivers
7Central 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 8: Innovation & Digital Banking Accomplishments
8Central Pacific Financial Corp. 2Q 2021 3Q-4Q 2021 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 consu
Slide 9: Shaka Digital Checking
9Central Pacific Financial Corp. Shaka Digital Checking • Hawaii’s first fully digital bank account launched early November 2021 with several hundred accounts opened in the first few days • Preceded by Hawaii’s largest social media influencer campaign which generated a waitlist of nearly 3,000 • Mar
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 SBA loans than the 3 other large Hawaii banks combined1 Innovative Programs & Technology CPB Foundation recently announced a financial management and networ
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 ~40% 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; $0.8 Billion total production in 2021 YTD through September • #2 lender in Hawaii in total purchase mortgage volume in 2020 and 2021 YTD through September • Lead par
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, and a 5th to be consolidated on 12/31/2021 - With continued migration to digital, additional branches under consideration Real Estate Optimization - Backoffice space consolidation - Purcha
Slide 16: Strong Asset Quality
16Central Pacific Financial Corp. Strong Asset Quality * 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 3.00% 5.00% 7.00% 9.00% 11.00% 13.00% 15.00% 3Q20 4Q20 1Q21 2Q21 3Q21 CLASSIFIED ASSETS Classified
Slide 17: Solid Capital Position
17Central Pacific Financial Corp. Solid Capital Position STRONG CAPITAL • Increased quarterly cash dividend by $0.01 to $0.25 per share which will be payable on December 15, 2021 • $230 million capital cushion to the well-capitalized Total RBC minimum of 10% at 9/30/21 • Repurchased 234,700 shares i
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 – 41% Commercial – 47% Residential – 12% Consumer • Predominantly Hawaii Focused – 86% Hawaii – 14% Mainland/Guam • 77% Real Estate Secured (excluding PPP loan balances from
Slide 21: SBA Paycheck Protection Program (PPP)
21Central Pacific Financial Corp. SBA Paycheck Protection Program (PPP) IN $ MILLIONS (except for loan count) As of 9/30/21 ROUND 1 & 2 (2020) ROUND 3 (2021) FUNDED $/COUNT $558.9 ~7,200 LOANS $320.9 ~4,600 LOANS FORGIVENESS/ PAYDOWNS TO DATE $522.2 $131.0 EARNED NET FEES TO DATE $18.7 $9.8 UNEARNED
Slide 22: Environmental, Social & Governance (ESG)
22Central Pacific Financial Corp. Environmental, Social & Governance (ESG) 2020 ESG report can be viewed here: https://www.cpb.bank/esg Includes the 4 pillars below:
Slide 23: Historical Financial Highlights
23Central Pacific Financial Corp Historical Financial Highlights QTD QTD QTD ($ in millions) 3Q21 2Q21 1Q21 2020 2019 2018 2017 2016 Balance Sheet (period end data) Loans and leases 5,045.8$ 5,077.3$ 5,137.8$ 4,964.1$ 4,449.5$ 4,078.4$ 3,770.6$ 3,524.9$ Total assets 7,298.2 7,178.5 6,979.3 6,594.6 6
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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