Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Central Pacific Financial — Investor Presentation (December 2021)
25 slides from Central Pacific Financial Corp New's investor presentation, Dec 15, 2021
Slide 1: Investor Presentation December 2021
Investor Presentation December 2021
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: Central Pacific Financial - Corporate Profile
3Central Pacific Financial Corp. Central Pacific Financial - Corporate Profile MARKET INFORMATION NYSE TICKER CPF SUBSIDIARY CENTRAL PACIFIC BANK (CPB) TOTAL ASSETS $7.3 BILLION MARKET CAP $771 MILLION SHARE PRICE $27.76 DIVIDEND YIELD 3.60% Central Pacific Financial Corp. is a Hawaii-based bank hol
Slide 4: Mid 4th Quarter 2021 Update
4Central Pacific Financial Corp. Mid 4th Quarter 2021 Update As of or QTD through 11/30/2021: Solid Growth • Total loans (excluding PPP) increased by $120 million • Total deposits increased by $28 million Credit Continues to Improve • NPAs of $6 million or 0.08% of total assets • Net recoveries of $
Slide 5: Successful Launch of Shaka Digital Checking
5Central Pacific Financial Corp. Successful Launch of Shaka Digital Checking • Hawaii’s first fully digital bank account launched early November 2021. • Preceded by Hawaii’s largest social media influencer campaign which generated a waitlist of nearly 3,000 • Market differentiating features: 2 day e
Slide 6: Hawaii Economy Trending Favorably
6Central Pacific Financial Corp. Hawaii Economy Trending Favorably STRENGTHS AND RECOVERY FACTORS • Hawaii has the lowest per capita COVID-19 case rate in the nation1 • Approximately 72% of Hawaii residents are fully vaccinated2 • Visitor numbers trending positively and expecting a strong Winter/Hol
Slide 7: 3rd Quarter 2021 Highlights
7Central Pacific Financial Corp. 3rd Quarter 2021 Highlights PROFITABILITY NET INCOME / DILUTED EPS $20.8 Million / $0.74 ROA/ROE 1.15% / 14.83% NET INTEREST MARGIN 3.31% Actual 2.96% Normalized* EFFICIENCY RATIO 62.3% * Normalized to exclude PPP impact. 1 Net charge-offs (NCOs) are annualized 2 Cla
Slide 8: Consistent Growth & Positive Earnings Trends
8Central Pacific Financial Corp. Consistent Growth & Positive Earnings Trends * Annualized YTD 9/30/2021 • Strong, consistent and balanced loan and deposit growth • Pre-tax, pre-provision earnings continue to grow 3,000 3,500 4,000 4,500 5,000 5,500 2016 2017 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 $
Slide 9: Shareholder Value Drivers
9Central Pacific Financial Corp. Shareholder Value Drivers Innovation & Digital Banking Small Business & Residential Mortgage Leader Japan Competitive Advantage Efficiency Strategies 1 2 3 4 Solid Credit, Capital and Liquidity5
Slide 10: Innovation & Digital Banking Accomplishments
10Central Pacific Financial Corp. 2Q 2021 3Q-4Q 2021 1Q 2021 2020 Future Online Account Opening Consumer platform to open deposit accounts and term loans launched January 2021 Business Online Banking New platform designed for small businesses launched February 2021 Online/Mobile Banking New consumer
Slide 11: Marketing Innovation: 'CPB Ambassadors'
11Central Pacific Financial Corp. Marketing Innovation: ‘CPB Ambassadors’
Slide 12: Small Business Leader
12Central Pacific Financial Corp. Small Business Leader SMALL BUSINESSES SBA Lender of the Year Category II, 7 years in a row Originated more SBA loans than the 3 other large Hawaii banks combined1 Innovative Programs & Technology CPB Foundation recently announced a financial management and networ
Slide 13: SBA Paycheck Protection Program (PPP)
13Central Pacific Financial Corp. SBA Paycheck Protection Program (PPP) Funded over 11,800 PPP loans totaling $875 million, which represented 30% of all PPP loans in the State of Hawaii (based on count) ~90% of 2020 and ~40% of 2021 originations have been forgiven/paid down** Relationship buil
Slide 14: Residential Mortgage Strength in Hawaii
14Central Pacific Financial Corp. Residential Mortgage Strength in Hawaii SMALL BUSINESSES • $1.2 Billion in total production in 2020; $1.1 Billion total production in 2021 YTD through November • #1 lender in Hawaii in total purchase mortgage volume in 2021 YTD through October • Lead partner with de
Slide 15: Japan Competitive Advantage
15Central Pacific Financial Corp. Japan Competitive Advantage CPB JAPAN ADVISORS GROUP • Partnership with several top Japanese Executives, including formerly or currently from: Nippon Paint Holdings, MUFG, Sony Hawaii, Wells Fargo Securities-Japan EXECUTIVE NETWORK • Paul Yonamine is a Director of S
Slide 16: Efficiency Strategies
16Central Pacific Financial Corp. Efficiency Strategies Branch Consolidation - 4 branches consolidated in 2020, and a 5th to be consolidated on 12/31/2021 - With continued migration to digital, additional branches under consideration Real Estate Optimization - Backoffice space consolidation - Purcha
Slide 17: Strong Asset Quality
17Central Pacific Financial Corp. Strong Asset Quality * Excludes the PPP loan portfolio from total loans. Note: Peer Average includes banks $3-10B in assets. Source S&P Global. $0 $20 $40 $60 $80 $100 3.00% 5.00% 7.00% 9.00% 11.00% 13.00% 15.00% 3Q20 4Q20 1Q21 2Q21 3Q21 CLASSIFIED ASSETS Classified
Slide 18: Solid Capital Position
18Central Pacific Financial Corp. Solid Capital Position STRONG CAPITAL • Increased quarterly cash dividend by $0.01 to $0.25 per share which will be payable on December 15, 2021 • $230 million capital cushion to the well-capitalized Total RBC minimum of 10% at 9/30/21 • Repurchased 234,700 shares i
Slide 19: Mahalo
Mahalo
Slide 20: Appendix
20Central Pacific Financial Corp. Appendix
Slide 21: Total Loan Portfolio
21Central Pacific Financial Corp. Total Loan Portfolio LOAN PORTFOLIO HIGHLIGHTS • Conservative and Diversified Loan Portfolio – 41% Commercial – 47% Residential – 12% Consumer • Predominantly Hawaii Focused – 86% Hawaii – 14% Mainland/Guam • 77% Real Estate Secured (excluding PPP loan balances from
Slide 22: SBA Paycheck Protection Program (PPP)
22Central Pacific Financial Corp. SBA Paycheck Protection Program (PPP) IN $ MILLIONS (except for loan count) As of 9/30/21 ROUND 1 & 2 (2020) ROUND 3 (2021) FUNDED $/COUNT $558.9 ~7,200 LOANS $320.9 ~4,600 LOANS FORGIVENESS/ PAYDOWNS TO DATE $522.2 $131.0 EARNED NET FEES TO DATE $18.7 $9.8 UNEARNED
Slide 23: Environmental, Social & Governance (ESG)
23Central Pacific Financial Corp. Environmental, Social & Governance (ESG) 2020 ESG report can be viewed here: https://www.cpb.bank/esg Includes the 4 pillars below:
Slide 24: Historical Financial Highlights
24Central Pacific Financial Corp Historical Financial Highlights QTD QTD QTD ($ in millions) 3Q21 2Q21 1Q21 2020 2019 2018 2017 2016 Balance Sheet (period end data) Loans and leases 5,045.8$ 5,077.3$ 5,137.8$ 4,964.1$ 4,449.5$ 4,078.4$ 3,770.6$ 3,524.9$ Total assets 7,298.2 7,178.5 6,979.3 6,594.6 6
Slide 25: Non-GAAP Financial Measures - Excluding PPP
25Central 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-end
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