Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Q1 2025 Earnings Presentation
20 slides from Central Pacific Financial Corp New's earnings presentation, Apr 23, 2025
Slide 1: 1st Quarter 2025 Earnings Supplement
1 Quarter 2025 st Earnings Supplement April 23, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document and the accompanying oral presentation may contain forward-looking statements ("FLS") concerning: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, payment or nonpayment of dividends, net interest income, cap
Slide 3: Solid 1st Quarter 2025
Solid 1st Quarter 2025 1Q25 4Q24 4Q24 Actual Actual Non-GAAP 1 NET INCOME $17.8MM $11.3MM $19.0MM • Net income of $17.8 million in the first quarter DILUTED EPS $0.65 $0.42 $0.70 and fully diluted EPS of $0.65 PRE-PROVISION • NIM expansion of 14 bps on a sequential quarter NET REVENUE $26.7MM $14.2M
Slide 4: Resilient Hawaii Economy Provides a Favorable Environment
Resilient Hawaii Economy Provides a Favorable Environment FOR A FAVORABLE HAWAII OUTLOOK • Low unemployment Tourism Employment Housing • Strong real estate market Oahu Median • Visitor industry continues to have year-over-year YTD Visitor arrivals Unemployment growth in arrivals and spending over th
Slide 5: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Composition as of March 31, 2025 Consumer Loan Balances Outstanding 9% Commercial & Industrial as of period end 12% 6.00 Construction 5.56 3% 5.44 5.50 5.33 5.33 5.10 4.96 5.00 Commercial $ Billions Mortgage 4.45 4.50 29% 4.08 4.00 3.77 Residential 3.50 Mort
Slide 6: Low-Cost Deposits Driven by Valuable Franchise
Low-Cost Deposits Driven by Valuable Franchise Deposit Portfolio Composition Total Deposits as of March 31, 2025 8.00 as of period end 7.50 Time 16% Noninterest Bearing 7.00 6.85 Demand 6.64 6.74 6.64 28% 6.60 6.50 $ Billions 6.00 5.80 5.50 5.12 4.96 4.95 5.00 4.50 Interest Bearing Savings & Demand
Slide 7: CPF Deposit Cost Advantage
CPF Deposit Cost Advantage Low rate-sensitive, relationship-based deposit portfolio provides significant cost advantage Total Deposit Cost 3.00% CPF total deposit cost declined 13 bps 2.50% to 1.08% from 4Q24 to 1Q25 2.36% 2.00% 1.72% 1.50% 1.30% 1.08% 1.00% 0.50% 0.00% 2017 2018 2019 2020 2021 2022
Slide 8: Noninterest Income and Expense
Noninterest Income and Expense Noninterest Income Noninterest Expense 18.0 60.0 16.0 50.0 14.0 44.2 40.6 42.1 12.6 12.0 11.2 11.1 40.0 $ Millions $ Millions 10.0 $9.9MM in pre-tax loss 30.0 8.0 on investment 6.0 repositioning 20.0 4.0 2.6 10.0 2.0 0.0 0.0 1Q24 4Q24 1Q25 1Q24 4Q24 1Q25 • Adjustment i
Slide 9: Solid Credit Profile
5 Solid Credit Profile Strong credit risk management continues to drive low levels of problem assets Delinquencies 90+Days/Total Loans Criticized/Total Loans 0.82% 0.66% 0.62% 0.62% 0.56% 0.05% 0.04% 0.01% 0.01% 0.01% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 NPAs/Total Loans Annualized NCO/
Slide 10: Allowance for Credit Losses
Allowance for Credit Losses • $3.9 million provision for credit loss on loans in 1Q25, plus additional $0.3 million for off-balance sheet exposures, for a total provision for credit loss of $4.2 million. Increase to provision primarily driven by macro-economic model assumptions • Strong ACL coverage
Slide 11: High Quality Securities Portfolio
High Quality Securities Portfolio Investment Portfolio Composition as of March 31, 2025 • $1.4 billion or 18.5% of total assets • 95% AAA rated Collateralized loan obligations U.S. Treasury & Gov't 2% Agency Non-Agency CMBS/RMBS 8% • Portfolio mix: AFS 57% / HTM 43% 2% Strategic Activity Municipals
Slide 12: Strong Liquidity Position With Ample Alternative Sources
Strong Liquidity Position With Ample Alternative Sources $ Millions March 31, 2025 Cash on Balance Sheet $ 277 Other Funding Sources: Unpledged Securities 582 FHLB Available Borrowing Capacity 1,655 FRB Available Borrowing Capacity 232 Other Funding Lines 75 Total $ 2,544 Total Sources of Liquidity
Slide 13: Strong Capital and Shareholder Return
Regulatory Capital Ratios Strong Capital and 18.0% As March 31, 2025 $297 million capital 15.6% cushion to Shareholder Return 16.0% 14.0% 12.0% 12.4% well capitalized 9.4% minimum 10.0% 8.0% • Regulatory capital ratios meaningfully above the 6.0% well-capitalized minimums 4.0% 2.0% 0.0% • Approved q
Slide 14: Appendix
Appendix Central Pacific Financial Corp. 14
Slide 15: Non-GAAP Disclosure
Non-GAAP Disclosure To supplement our consolidated financial information, the Company uses certain non-GAAP financial measures, which are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures. The Company believes these non-GAAP financial measures provide
Slide 16: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE Portfolio Composition as of March 31, 2025 OFFICE RETAIL Shopping Center Storage TOTAL BALANCE $205.3MM $286.8MM 3% 2% Other 4% Industrial/ Warehouse % OF TOTAL CRE 13% 18% Hotel 11% 30% % OF TOTAL 4% 5% LOANS Office 13% WA LTV 57% 65% WA MONTHS TO Retail 65 64 A
Slide 17: Consumer Loan Portfolio
Consumer Loan Portfolio Consumer Portfolio Composition as of March 31, 2025 ($ Millions) • Total Hawaii Consumer $219.9 million • Total Mainland Consumer $242.0 million Mainland Auto 25% • Weighted average origination FICO: HI Auto 32% • 745 for Hawaii Consumer • 738 for Mainland Consumer • Consumer
Slide 18: CPB Named Best Bank in Hawaii by Newsweek, Forbes, and Honolulu Star-Advertiser
CPB Named Best Bank in Hawaii by Newsweek, Forbes, and Honolulu Star-Advertiser • Newsweek’s America’s Best Regional Banks 2025 • Forbes’ Best-In-State Banks 2024 • Forbes’ America’s Best Banks 2025 • Honolulu Star-Advertiser’s Best Bank in Hawaii 2024 Central Pacific Financial Corp. 18
Slide 19: Caring for our Land and People
Caring for our Land and People Central Pacific Financial Corp. Source: 2024 ESG Report available on our Investor Relations site, “Caring for Our Aina and People” 19
Slide 20: Mahalo
Mahalo Central Pacific Financial Corp. 20
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