Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Q4 2020 Earnings Presentation
27 slides from Central Pacific Financial Corp New's earnings presentation, Jan 27, 2021
Slide 1: 4th Quarter 2020 Earnings Supplement
4 Quarter 2020 th Earnings Supplement January 27, 2021
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, credit losses, net interest margin or other finan
Slide 3: 4th Quarter & Full Year 2020 Highlights
4th Quarter & Full Year 2020 Highlights 4Q 2020 2020 Year NET INCOME $12.2 Million $37.3 Million • Strong Pre-tax, Pre-provision earnings DILUTED EPS $0.43 $1.32 • Mortgage banking business continues to outperform PRE-TAX, PRE-PROVISION $20.4 Million $88.2 Million • One-time expenses impacted 4Q EAR
Slide 4: Strong Credit Metrics
Strong Credit Metrics CLASSIFIED ASSETS ALLOWANCE FOR CREDIT LOSSES (ACL) 15.00% $100 1.90% $100 13.00% $80 1.70% $80 11.00% $60 1.50% $60 9.00% $40 1.30% $40 7.00% $20 1.10% $20 5.00% 3.00% $0 0.90% $0 4Q19 1Q20 2Q20 3Q20 4Q20 4Q19 1Q20 2Q20* 3Q20* 4Q20* Classified Assets + OREO (right) ACL in $ Mi
Slide 5: RISE2020 Initiative Completed
RISE2020 Initiative Completed Digital Banking Revenue Enhancements • Launched cpb.bank website in November 2019 • Committed to best-in-class small business and • Launched new online and mobile banking cash management products, with new platform platforms in August 2020 fully rolled out in July 2020
Slide 6: Grand Reopening of Plaza Headquarters
Grand Reopening of Plaza Headquarters • New, modernized flagship main branch • Reimagined inviting lobby for customers and the community, including a new co-working space Central Pacific Financial Corp. 6
Slide 7: Newly Upgraded Online/Mobile and ATMs
Newly Upgraded Online/Mobile and ATMs • New online/mobile platform publicly launched • Entire ATM network was replaced in 2020 with late August 2020. New mobile app rating 4.6 & 4.4 new full-function ATMs out of 5 stars* on Apple and Android respectively • New ATMs have a vibrant backlit surround, t
Slide 8: Branch Consolidation Initiative
Branch Consolidation Initiative • 31 total branches, with 23 on the island of Oahu (pictured) • 4 branches identified in red were consolidated into neighboring branches in 2020, with an expected go-forward annual expense savings of $1.8 million Central Pacific Financial Corp. 8
Slide 9: Resilient Hawaii Market
Resilient Hawaii Market STATE OF HAWAII REAL GROSS STATE PRODUCT (GSP) 2019 Tourism Related, Other*, 24% 23% STRENGTHS AND RECOVERY FACTORS • Hawaii has the 2nd lowest per capita COVID-19 Healthcare, 7% case rate in the nation RE/Construction, 26% • Re-opened tourism on October 15, 2020 for trans- G
Slide 10: Solid Liquidity & Capital Position
Solid Liquidity & Capital Position REGULATORY CAPITAL RATIOS AS OF DECEMBER 31, 2020 16.0% 15.2% Total RBC STRONG CAPITAL 14.0% 2.3% • $230 million capital cushion to the well-capitalized Total RBC minimum of 10% at 12/31/20 12.0% 1.1% • $55 million subordinated note offering completed in October Ti
Slide 11: Total Loan Portfolio
Total Loan Portfolio TOTAL LOAN PORTFOLIO OF $4,964MM OUTSTANDING BALANCE AS OF 12/31/2020 $ IN MILLIONS Consumer Commercial & $479 / 10% Industrial $545 / 11% LOAN PORTFOLIO HIGHLIGHTS Paycheck • Conservative and Diversified Loan Portfolio Protection Program 45% Commercial CRE - Investor $416 / 8%
Slide 12: C&I – Industry Composition
C&I – Industry Composition OUTSTANDING BALANCE AS OF 12/31/2020 $ IN MILLIONS Wholesale Trade $21 / 4% Manufacturing LOAN PORTFOLIO HIGHLIGHTS $39 / 7% • Many borrowers are essential businesses Retail Trade $43 / 8% Other Industries $172 / 31% • Well established, locally owned and operated by strong
Slide 13: Paycheck Protection Program [PPP]
Paycheck Protection Program [PPP] OUTSTANDING BALANCE AS OF 12/31/2020 $ IN MILLIONS Transportation Wholesale Trade & Warehousing $17 / 4% $18 / 4% Other Industries Manufacturing $63 / 15% LOAN PORTFOLIO HIGHLIGHTS $19 / 5% Retail Trade • Over 7,000 loans made $22 / 5% • Granular with average outsta
Slide 14: CRE – Property Type Composition
CRE – Property Type Composition OUTSTANDING BALANCE AS OF 12/31/2020 $ IN MILLIONS Restaurant $11 / 5% Retail LOAN PORTFOLIO DETAILS $26 / 11% • Strong borrowers that operate out of their own properties • Well-collateralized with WA LTV of 65% • 94% secured in Hawaii and 6% in Mainland Other $32 / 1
Slide 15: CRE – Property Type Composition
CRE – Property Type Composition OUTSTANDING BALANCE AS OF 12/31/2020 $ IN MILLIONS Self Storage $24 / 3% Restaurant Other $20 / 2% LOAN PORTFOLIO DETAILS $34 / 4% Hotel • Seasoned real estate investors $49 / 5% • Well-collateralized with WA LTV of 59% Multifamily Commercial $304 / 33% • 73% secured
Slide 16: High Risk Industries
High Risk Industries OUTSTANDING BALANCE AS OF 12/31/2020 $ IN MILLIONS % OF TOTAL DEFERRAL CRITICIZED OUTSTANDING TOTAL LOAN AS % OF TOTAL AS % OF TOTAL CRITICIZED INDUSTRY BALANCE PAYMENT C&I CRE PORTFOLIO TOTAL LOANS CRITICIZED LOANS W/PPP (EXCL. PPP) DEFERRAL (EXCL. PPP) (EXCL. PPP) (EXCL. PPP)
Slide 17: Residential Mortgage
Residential Mortgage OUTSTANDING BALANCE AS OF 12/31/2020 $ IN MILLIONS Investor & Second Home LOAN PORTFOLIO DETAILS $313 / 19% • 100% in Hawaii; 89% on Oahu • 81% of loan balance are loans <$1.0MM • Average outstanding loan amount of $445,000 • WA LTV 62%1 $1,690MM 34% • WA FICO 773 • Criticized l
Slide 18: Home Equity
Home Equity OUTSTANDING BALANCE AS OF 12/31/2020 $ IN MILLIONS Investor LOAN PORTFOLIO DETAILS & Second Home $80 / 15% • 100% in Hawaii; 85% on Oahu • 50% of loan balance are lines/loans <$250 thousand • Average outstanding loan amount of $143,000 • 56% are 1st mortgages • 19% are 2nd mortgages behi
Slide 19: Consumer
Consumer OUTSTANDING BALANCE AS OF 12/31/2020 $ IN MILLIONS LOAN PORTFOLIO DETAILS • Total Consumer Auto Personal HI WA FICO 719 $250 / 52% $229 / 48% ML WA FICO 7581 $479MM 10% • Auto HI WA FICO 702 ML WA FICO 7511 • Personal AUTO PERSONAL HI WA FICO 746 ML WA FICO 7631 Mainland $46 / 19% Private B
Slide 20: Loan Payment Deferrals Continue to Decline
Loan Payment Deferrals Continue to Decline $ MILLIONS % OF ASSET RE-DEFERRAL ON 1 ST DEFERRAL ON 2 ND DEFERRAL ON 3 RD DEFERRAL TOTAL ACTIVE DEFERRALS TOTAL BACK ON PAYMENT AS OF DEC. 31, 2020 CLASS1 RATE2 $ Count $ Count $ Count $ Count $ Count RESIDENTIAL 4.3 9 6.6 20 59.5 123 $70.4 152 3% 116.9 2
Slide 21: Loan Payment Deferrals – Portfolio & Industry
Loan Payment Deferrals – Portfolio & Industry OUTSTANDING BALANCE AS OF 12/31/2020 $ IN MILLIONS DEFERRALS BY LOAN PORTFOLIO CRE AND C&I DEFERRALS BY INDUSTRY Commercial Consumer Other Industries & Industrial $2 / 2% Foodservice $1 / 3% $6 / 5% $5 / 10% Real Estate and Rental & Leasing $33 / 71% Com
Slide 22: Loans Rated Special Mention
Loans Rated Special Mention OUTSTANDING BALANCE AS OF 12/31/2020 $ IN MILLIONS LOAN PORTFOLIO DETAILS Other Industries $16 / 12% • $142MM Special Mention Loans Construction $3 / 2% • 3.1% of Total Loan Portfolio (excl PPP) Manufacturing Real Estate and $4 / 3% Rental & Leasing Utilities $50 / 35% $5
Slide 23: Loans Rated Classified
Loans Rated Classified OUTSTANDING BALANCE AS OF 12/31/2020 $ IN MILLIONS LOAN PORTFOLIO HIGHLIGHTS Residential/HELOC $5 / 10% • $50MM Classified Loans Other Industries $1 / 5% • 1.1% of Total Loan Portfolio (excl PPP) Foodservice $2 / 3% Real Estate and • Real Estate and Rental & Leasing exposure t
Slide 24: Mahalo
Mahalo
Slide 25: Appendix
Appendix Central Pacific Financial Corp. 25
Slide 26: Non-GAAP Financial Measures - Excluding PPP
Non-GAAP Financial Measures - Excluding PPP The Company believes the following non-GAAP financial measures provides useful information about our operating results and enhances the overall understanding of our past performance and future performance. Investors should consider our performance and fina
Slide 27: Non-GAAP Financial Measures - Excluding One-Time Expenses
Non-GAAP Financial Measures - Excluding One-Time Expenses The Company believes the following non-GAAP financial measures provides useful information about our operating results and enhances the overall understanding of our past performance and future performance. Investors should consider our perfor
Central Pacific Financial Corp New — Q4 2020 Earnings Presentation on 6ix