Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Q1 2020 Earnings Presentation
20 slides from Central Pacific Financial Corp New's earnings presentation, Apr 22, 2020
Slide 1: First Quarter 2020 Earnings Executive Supplement
A. CATHERINE NGO President & Chief Executive Officer First QuarterDAVID 2020 S. MORIMOTO EarningsExecutive Supplement Vice President & Chief Financial Officer AUGUST 2018 April 22, 2020 1
Slide 2: Forward Looking Statements
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, net interest margin or other financial items; sta
Slide 3: Pandemic Preparedness Plan
PANDEMIC PREPAREDNESS PLAN FACILITIES BUSINESS CONTINUITY Increased sanitation and protective supplies COMMITTEE 1 . Activated and meeting daily HUMAN RESOURCES since mid-March 2020 Policy adjustments for travel, work from 2 home, sick leave, quarantine . Primary objective is ensuring FINANCE the sa
Slide 4: Supporting Our Employees
SUPPORTING OUR EMPLOYEES . All banking . Approximately •Closed 13 of 35 services operating 70% of all branches normally employees are setup on VPN •Smaller footprint . Exceptional client branches closed service and •IT systems and for increased outreach ongoing VPN capacity social distancing increas
Slide 5: Programs to Support Clients with Existing Loans
PROGRAMS TO SUPPORT CLIENTS WITH EXISTING LOANS Central Pacific has implemented borrower relief programs to provide assistance to our customers. COML RE AND C&I RESIDENTIAL MORTGAGE • Principal or Principal & Interest • Principal & Interest payment deferrals for 3-6 months are deferral provided for
Slide 6: Special Loan Programs
SPECIAL LOAN PROGRAMS SBA PAYCHECK PROTECTION PROGRAM (PPP) As of 4/16/20: • Total approved by SBA: 4,215 / $487MM • Total funded: 88 loans / $12.5MM • Average loan size: $0.1MM Central Pacific is also participating in the SBA Disaster LSBA and EIDL loan programs. EMPLOYMENT DISRUPTION LOAN PROGRAM
Slide 7: Other Programs to Help Customers
OTHER PROGRAMS TO HELP CUSTOMERS CHANGES MADE TO ALLOW CUSTOMERS TO QUICKLY & CONVENIENTLY ACCESS FUNDS ATM - Waived non-CPB ATM fees CDs – Waived early withdrawal fee Debit Cards – Raised spending cap limits to $10,000 Mobile Deposits – Increased limits to $10,000 daily 7
Slide 8: Potential COVID-19 Exposure in Loan Portfolio
POTENTIAL COVID-19 EXPOSURE IN LOAN PORTFOLIO Total Loan Portfolio of $4,504MM1 Outstanding Balance as of 3/31/20 $ in Millions POTENTIAL IMPACT Consumer Industry O/S Bal in MM $560 / 13% Owner Occupied CRE / C&I • Owner Occupied CRE / C&I $865 $865 / 19% • Consumer $560 POTENTIAL LIMITED IMPACT Ind
Slide 9: Owner Occupied Commercial Real Estate / C&I by Industries
OWNER OCCUPIED COMMERCIAL REAL ESTATE / C&I BY INDUSTRIES INDUSTRIES THAT WILL LIKELY EXPERIENCE IMPACT FROM COVID-19 Primary Industries Secondary Industries Outstanding Balance as of 3/31/20 Outstanding Balance as of 3/31/20 $ in Millions $ in Millions Professional & Wholesale Trade Administrative
Slide 10: O/O and C&I - Primary and Secondary Industries
O/O AND C&I - PRIMARY AND SECONDARY INDUSTRIES PRIMARY INDUSTRIES - $378MM OUTSTANDING LOAN BALANCE Healthcare: dentists, physicians, social services, nursing and $124MM / 77% Utilization residential care homes, child day care Retail Trade: supermarkets, food, beverage, hardware, new and used $86MM
Slide 11: Consumer Loan Portfolio
CONSUMER LOAN PORTFOLIO Outstanding Balance as of 3/31/20 Loan Portfolio Details $ in Millions • Auto Hawaii $218MM Mainland $71MM Personal Loans & Lines $271 / 48% • Personal Loans & Lines Auto Hawaii $150MM $289 / 52% Mainland $121MM • Hawaii Consumer WA FICO 737 • Mainland Consumer WA
Slide 12: Mortgage Loan Portfolio
MORTGAGE LOAN PORTFOLIO LIMITED IMPACT EXPECTED FROM COVID-19 Loan Portfolio Details Outstanding Balance as of 3/31/20 $ in Millions • Residential WA LTV 60% Home Equity Loans & Lines WA FICO 779 $489 / 23% • Home Equity Loans & Lines WA LTV 58% WA FICO 786 $2,129MM (Does not reflect an addi
Slide 13: Investor Commercial Real Estate Loans
INVESTOR COMMERCIAL REAL ESTATE LOANS LIMITED IMPACT EXPECTED FROM COVID-19 Loan Portfolio Details Outstanding Balance as of 3/31/20 • WA LTV 53% $ in Millions • Secured By Commercial Construction & Development Commercial & $46 / 5% Industrial Warehouse Multi-Family Commercial Construction & C
Slide 14: Loans Rated Special Mention
LOANS RATED SPECIAL MENTION Outstanding Balance as of 3/31/20 Credit Risk Management $ in Millions Approach Other • Strong asset quality prior $9 / 8% Healthcare to COVID-19 $6 / 6% Real Estate Rental & Leasing • After COVID-19, additional $33 / 30% monitoring with frequent Accommodation $10 / 9% hi
Slide 15: First Quarter 2020 Highlights
FIRST QUARTER 2020 HIGHLIGHTS • Quarterly results impacted by Net Income $8 Million new CECL accounting standard and declining economic conditions Diluted EPS $0.29 • Pre-tax, Pre-provision earnings remained strong Pre-Tax, $21 Million Pre-Provision • Solid liquidity and capital; Earnings balance sh
Slide 16: Community Support
COMMUNITY SUPPORT To support local restaurants and families during this challenging time, Central Pacific Bank Foundation subsidized the cost of take out meals purchased from local restaurants. Central Pacific Bank Foundation contributed $300,000 to the campaign and additional initiatives to support
Slide 17: Appendix
A. CATHERINE NGO President & Chief Executive Officer DAVIDAPPENDIX S. MORIMOTO Executive Vice President & Chief Financial Officer AUGUST 2018 17
Slide 18: Strong Credit Metrics
STRONG CREDIT METRICS Allowance for Credit Losses Delinquencies (ACL) Past Due 90+ Days $65 1.90% CECL 0.50% $5 $60 1.70% $55 0.40% $4 Incurred Loss Method 1.50% $50 0.30% $3 1.30% $45 $40 1.10% 0.20% $2 $35 0.90% $30 0.10% $1 0.70% $25 0.00% $0 0.50% $20 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19
Slide 19: Drivers of Change Under CECL
DRIVERS OF CHANGE UNDER CECL o Changes in portfolio and credit quality o Macro economic conditions o Consideration of additional economic scenarios o Net charge- offs * Includes the Allowance for Off-Balance Sheet Exposures. 19
Slide 20: Non-GAAP Financial Measures - Pre-Tax, Pre-Provision Earnings
Non-GAAP Financial Measures- Pre-Tax, Pre-Provision Earnings Three-Months Ended $ Millions % Change Mar. 31, Dec. 31, Mar. 31, 2020 2019 2019 QoQ YoY Net Interest Income $ 47.8 $ 47.9 $ 45.1 0% 6% Other Operating Income 8.9 9.8 11.7 -9% -24% Total Revenue 56.7 57.7 56.8 -2% 0% Other Operating Expens
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