Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Q4 2021 Earnings Presentation
13 slides from Central Pacific Financial Corp New's earnings presentation, Jan 26, 2022
Slide 1: 4th Quarter 2021 Earnings Supplement
4th Quarter 2021 Earnings Supplement January 26, 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: Hawaii Economy Trending Favorably
3Central Pacific Financial Corp. Hawaii Economy Trending Favorably STRENGTHS AND RECOVERY FACTORS • Hawaii has the 3rd lowest per capita COVID-19 case rate in the nation1 • Approximately 75% of Hawaii residents are fully vaccinated2 • Visitor numbers trending positively with a recent strong Winter/H
Slide 4: 4th Quarter 2021 and Full 2021 Year Highlights
4Central Pacific Financial Corp. 4th Quarter 2021 and Full 2021 Year Highlights • Highest quarterly and full year pre-tax earnings since prior to the great recession • Strong core loan and deposit growth • Provision for credit loss release due to net recoveries as well as forecast and portfolio impr
Slide 5: Consistent Loan Growth
5Central Pacific Financial Corp. Consistent Loan Growth • Core loans (excluding PPP) grew by $183 million (4%) sequential quarter, and by $463 million (10%) in the 2021 year • Growth was broad based across most loan types. While C&I and Construction had slight declines, portfolios are trending favor
Slide 6: Net Interest Margin & Rate Sensitivity
6Central Pacific Financial Corp. Net Interest Margin & Rate Sensitivity * Normalized to exclude PPP impact, refer to slide 13 for additional details. 3.08% 2.87% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 CPF Net Interest Margin- GAAP Net Interest Margin Peers-
Slide 7: Strong Asset Quality
7Central Pacific Financial Corp. Strong Asset Quality 0.03% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Loans 90+ Days Past Due / Total Loans 0.12% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Nonperforming Loans / Total Loans 6.42% 0.00
Slide 8: Allowance for Credit Losses
8Central Pacific Financial Corp. Allowance for Credit Losses $ Millions 4Q20 1Q21 2Q21 3Q21 4Q21 Beginning Balance 80.5 83.3 81.6 77.8 74.6 Less: Net charge-offs (Recoveries) 1.8 0.7 0.8 0.2 (0.9) Plus: Provision (Credit) for Credit Losses 4.5 (1.0) (3.0) (3.0) (7.4) Ending Balance 83.3 81.6 77.8 74
Slide 9: Solid Capital Position
9Central 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 10: Mahalo
Mahalo
Slide 11: Appendix
11Central Pacific Financial Corp. Appendix
Slide 12: SBA Paycheck Protection Program (PPP)
12Central Pacific Financial Corp. SBA Paycheck Protection Program (PPP) IN $ MILLIONS (except for loan count) As of 12/31/21 ROUND 1 & 2 (2020) ROUND 3 (2021) FUNDED $/COUNT $558.9 ~7,200 LOANS $320.9 ~4,600 LOANS FORGIVENESS/ PAYDOWNS TO DATE $551.7 $233.2 EARNED NET FEES TO DATE $19.1 $13.9 UNEARN
Slide 13: Non-GAAP Financial Measures - Excluding PPP
13Central 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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