Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Q2 2024 Earnings Presentation
18 slides from Central Pacific Financial Corp New's earnings presentation, Jul 31, 2024
Slide 1: 2nd Quarter 2024 Earnings Supplement
2 Quarter 2024 nd Earnings Supplement July 31, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document may contain forward-looking statements (“FLS”) 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 oth
Slide 3: 2nd Quarter 2024 Financial Highlights
2nd Quarter 2024 2Q24 1Q24 Financial Highlights NET INCOME / DILUTED EPS $15.8MM / $0.58 $12.9MM / $0.48 PRE-PROVISION NET $22.9MM $20.9MM REVENUE (PPNR) • Net income of $15.8MM increased 22% from RETURN ON ASSETS prior quarter 0.86% 0.70% (ROA) • NIM expanded 14 bps sequential quarter RETURN ON EQU
Slide 4: Resilient Hawaii Economy
1 Resilient Hawaii Economy FACTORS FOR A FAVORABLE HAWAII OUTLOOK Tourism Employment Housing Visitor arrivals Unemployment Rate Oahu Median Single- • Maui tourism recovery from Maui wildfires in August 2023 compared to June 2024 Family Home Price continues with visitor arrivals at 78% of the previou
Slide 5: Diversified Loan Portfolio
2 Diversified Loan Portfolio Loan Portfolio Composition 6.00 5.56 5.44 5.40 5.38 5.10 4.96 0.55 5.00 0.57 0.58 0.58 4.45 0.62 4.08 0.96 0.80 0.63 0.58 0.54 4.00 3.77 0.57 0.62 3.52 0.58 0.74 0.74 0.73 0.71 0.48 0.50 0.57 0.64 $ Billions 0.51 0.49 0.55 3.00 0.47 0.49 0.45 0.47 1.36 1.38 1.42 1.47 0.4
Slide 6: Relationship Deposits – Diversified & Granular
Relationship Deposits – Diversified & Granular Deposit Portfolio Composition 8.00 6.74 6.85 7.00 6.64 6.62 6.58 0.21 0.29 0.38 0.24 0.19 6.00 5.80 0.49 0.70 1.02 1.03 1.03 5.12 0.50 4.96 4.95 1.42 5.00 4.61 0.40 1.46 0.53 1.33 1.29 1.28 0.69 0.63 $ Billions 0.70 0.50 1.18 4.00 0.46 0.48 0.39 1.04 0.
Slide 7: Deposit Cost Advantage
Deposit Cost Advantage Proven history of funding cost advantage with recent cost stabilization 6.00% Total Deposit Cost 5.00% Cycle-to-date total deposit 4.00% beta of 24% as of 2Q24 3.00% 99 bps funding advantage 2.00% 1.00% 0.00% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 201
Slide 8: 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 1.34% 1.09% 0.06% 0.92% 0.56% 0.66% 0.05% 0.05% 0.05% 0.02% 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 NPAs/Total Loans Annualized NCO/
Slide 9: Allowance for Credit Losses
Allowance for Credit Losses • $2.4MM provision for credit loss on loans in 2Q24 driven by net charge-offs, offset by a credit of $0.2MM to the reserve for unfunded commitments, for a total provision for credit loss of $2.2MM • Strong ACL coverage ratio of 1.16% for 2Q24 $ Millions 2Q23 3Q23 4Q23 1Q2
Slide 10: High Quality Securities Portfolio
High Quality Securities Portfolio Investment Portfolio Composition as of June 30, 2024 • $1.3B or 17% of total assets Non-Agency Corporate Other CMBS/RMBS 3% 1% • 92% AAA rated 2% Municipals 12% • Portfolio mix: AFS 52% / HTM 48% • $29.7MM in investment securities purchased in 2Q24 at weighted avera
Slide 11: Available Sources of Liquidity
Available Sources of Liquidity • Ample alternative sources of liquidity available • Available sources of liquidity total 121% of uninsured/uncollateralized deposits $ Millions June 30, 2024 Cash on Balance Sheet 299 Other Funding Sources: Unpledged Securities 509 FHLB Available Borrowing Capacity 1,
Slide 12: Solid Capital Position
Solid Capital Position Regulatory Capital Ratios As June 30, 2024 $270MM 16.0% 15.1% capital 14.0% cushion to 11.9% well STRONG CAPITAL AND SHAREHOLDER RETURN 12.0% capitalized 10.0% 9.3% minimum • TCE ratio of 7.0% and CET1 ratio of 11.9% both increasing 8.0% with retained earnings 6.0% 4.0% • Main
Slide 13: Appendix
Appendix Central Pacific Financial Corp. 13
Slide 14: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE Portfolio Composition as of June 30, 2024 OFFICE RETAIL Shopping Center Storage 2% TOTAL BALANCE $174.2MM $296.0MM 3% Other 5% Industrial/ Warehouse Hotel 27% % OF TOTAL CRE 12% 20% 11% % OF TOTAL 3% 6% LOANS Office 12% WA LTV 55% 65% Retail Apartment 20% WA MONT
Slide 15: Consumer Loan Portfolio
Consumer Loan Portfolio Consumer Portfolio Composition as of June 30, 2024 • Total Hawaii Consumer $287MM / Total Mainland Consumer $255MM ($ Millions) • Weighted average origination FICO: Mainland Auto $83 , 15% • 744 for Hawaii Consumer HI Auto • 737 for Mainland Consumer $161 , 30% • Consumer net
Slide 16: 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 Best In State Bank 2024 • Forbes’ Best-In-State Banks 2024 • Forbes’ America’s Best Banks 2024 • Honolulu Star-Advertiser’s Best Bank in Hawaii 2024 Central Pacific Financial Corp. 16
Slide 17: Environmental, Social & Governance (ESG) Focus
Environmental, Social & Governance (ESG) Focus Central Pacific Financial Corp. 2023 ESG Report available here: https://www.cpb.bank/esg 17
Slide 18: Mahalo
Mahalo Central Pacific Financial Corp. 18
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