Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Q3 2024 Earnings Presentation
20 slides from Central Pacific Financial Corp New's earnings presentation, Oct 30, 2024
Slide 1: 3rd Quarter 2024 Earnings Supplement
3 Quarter 2024 rd Earnings Supplement October 30, 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: 3rd Quarter 2024 Financial Highlights
3rd Quarter 2024 Financial Highlights 3Q24 Actual 3Q24 Non-GAAP * 2Q24 Actual NET INCOME / $13.3MM / $15.7MM / $15.8MM / • Net income of $13.3MM compared to $15.8MM DILUTED EPS $0.49 $0.58 $0.58 prior quarter PRE-PROVISION NET • Net income impacted by $3.1 MM in pre-tax $19.9MM $23.0MM $22.9MM REVEN
Slide 4: Resilient Hawaii Economy
1 Resilient Hawaii Economy FACTORS FOR A FAVORABLE HAWAII OUTLOOK Tourism Employment Housing • Maui tourism recovery from Maui wildfires in August 2023 Unemployment Oahu Median continues with August 2024 year-to-date visitor arrivals at YTD Visitor arrivals Rate Single- Family ~83% of the previous y
Slide 5: Diversified Loan Portfolio
2 Diversified Loan Portfolio Loan Portfolio Composition 6.00 5.56 5.44 5.40 5.38 5.34 5.10 0.17 0.19 0.17 0.17 0.16 4.96 0.55 5.00 0.12 0.57 0.58 0.58 0.12 0.59 4.45 0.62 4.08 0.10 0.96 0.80 0.63 0.58 0.54 0.52 4.00 3.77 0.07 0.57 0.62 3.52 0.07 0.58 0.74 0.74 0.73 0.71 0.70 0.48 0.10 0.50 0.57 0.64
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 6.58 0.21 0.29 0.38 0.24 0.19 0.12 6.00 5.80 0.49 0.70 1.02 1.03 1.03 1.04 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 1.26 0.69 0.63 $ Billions 0.70 0.50 1.18 4.00 0.
Slide 7: CPF Deposit Cost Advantage
CPF Deposit Cost Advantage Low rate-sensitive, relationship-based deposit portfolio provides significant cost advantage Total Interest Bearing Deposit Cost Total Deposit Cost 2.50% 3.03% 2.35% 2.52% 1.82% 2.00% Implied Repricing Beta in Current Cycle: CPF 24% 1.76% HI Peers 32% 1.50% Nat’l Peers 40%
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 1.09% 0.92% 0.05% 0.05% 0.04% 0.56% 0.66% 0.62% 0.02% 0.01% 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 Annualized NCO/Avg Loans NPAs/To
Slide 9: Allowance for Credit Losses
Allowance for Credit Losses • $3.0MM provision for credit loss on loans in 3Q24 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 $2.8MM • Strong ACL coverage ratio of 1.15% for 3Q24 $ Millions 3Q23 4Q23 1Q24 2Q2
Slide 10: High Quality Securities Portfolio
High Quality Securities Portfolio Investment Portfolio Composition as of September 30, 2024 • $1.3B or 18% of total assets Non-Agency CMBS/RMBS Corporate • 92% AAA rated 2% 2% Other 1% • Portfolio mix: AFS 54% / HTM 46% Municipals • $33.2MM in investment securities purchased in 12% 3Q24 at weighted
Slide 11: Available Sources of Liquidity
Available Sources of Liquidity • Ample alternative sources of liquidity available • Available sources of liquidity total 118% of uninsured/uncollateralized deposits $ Millions September 30, 2024 Cash on Balance Sheet $ 327 Other Funding Sources: Unpledged Securities 513 FHLB Available Borrowing Capa
Slide 12: Solid Capital Position
Solid Capital Position Regulatory Capital Ratios As September 30, 2024 $280MM 18.0% capital 16.0% 15.3% cushion to well STRONG CAPITAL AND SHAREHOLDER RETURN 14.0% 12.1% capitalized 12.0% 9.5% minimum 10.0% • TCE ratio of 7.3% and CET1 ratio of 12.1% both 8.0% 6.0% increasing with retained earnings
Slide 13: Other Operating Expenses
2 Other Operating Expenses Total Other Operating Expense 50.0 (in millions) 46.7 0.5 45.0 1.1 42.5 3.1 40.6 41.2 39.6 2.3 - 40.0 - - 0.8 - 35.0 41.2 42.0 39.6 39.4 40.6 30.0 25.0 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Recurring Strategic expenses Non-recurring deferred comp plan expenses Other non-
Slide 14: Appendix
Appendix Central Pacific Financial Corp. 14
Slide 15: Non-GAAP Disclosure
Non-GAAP Disclosure The Company uses certain non-GAAP financial measures in addition to our GAAP results to provide useful information which we believe are better indicators of the Company’s core activities. This information should be considered as supplemental in nature and should not be considered
Slide 16: Commercial Real Estate Portfolio
Commercial Real Estate Portfolio CRE Portfolio Composition as of September 30, 2024 OFFICE RETAIL Shopping Center Storage Other 3% 2% TOTAL BALANCE $198.4MM $290.5MM 4% Industrial/Warehouse Hotel 27% 11% % OF TOTAL CRE 13% 20% % OF TOTAL 4% 5% LOANS Office 13% WA LTV 57% 65% Retail WA MONTHS TO 20%
Slide 17: Consumer Loan Portfolio
Consumer Loan Portfolio Consumer Portfolio Composition as of September 30, 2024 ($ Millions) • Total Hawaii Consumer $278MM Mainland Auto • Total Mainland Consumer $242MM $88 , 17% HI Auto • Weighted average origination FICO: $151 , 29% • 744 for Hawaii Consumer Mainland • 741 for Mainland Consumer
Slide 18: 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. 18
Slide 19: Environmental, Social & Governance (ESG) Focus
Environmental, Social & Governance (ESG) Focus Central Pacific Financial Corp. 2023 ESG Report available here: https://www.cpb.bank/esg 19
Slide 20: Mahalo
Mahalo Central Pacific Financial Corp. 20
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