Central Pacific Financial Corp New · NYSE:CPF
Central Pacific Financial Corp New — Q2 2025 Earnings Presentation
25 slides from Central Pacific Financial Corp New's earnings presentation, Jul 25, 2025
Slide 1: Q2 2025 Earnings Supplement and Investor Presentation
2 Quarter 2025 Earnings Supplement nd and Investor Presentation July 25, 2025
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, payment or nonpayment of dividends, net interest income, capital position, credit losses, net inter
Slide 3: Central Pacific Financial - Corporate Profile
Central Pacific Financial - Corporate Profile Central Pacific Financial Corp. (CPF) is a Hawaii-based bank holding company. Central Pacific Bank (CPB) was founded in 1954 by Japanese-American veterans of World War II to serve the needs of families and small businesses that did not have access to fin
Slide 4: Hawaii Economy – Foundation for Sustained Economic Activity
Hawaii Economy – Foundation for Sustained Economic Activity • Tourism industry continues to grow at modest pace • Visitor spending totaling $9 billion as of May 2025 YTD, a 6.5% increase from same prior year period Tourism Employment • Significant Public & Private Construction Projects Visitor arriv
Slide 5: Strong Performance through the First Half of 2025
Strong Performance through 2Q25 1Q25 2Q24 Actual Actual Actual the First Half of 2025 NET INCOME / $18.3MM / $17.8MM / $15.8MM / DILUTED EPS $0.67 $0.65 $0.58 Highlights • Profitability metrics improved on all core metrics PRE-PROVISION NET REVENUE $28.9MM $26.7MM $22.9MM • Net interest income growt
Slide 6: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Portfolio Composition as of June 30, 2025 Consumer Commercial & 9% Industrial Loan Balances Outstanding 11% as of period end Construction 6.00 4% 5.56 5.44 5.50 5.33 5.29 5.10 Commercial 4.96 5.00 Mortgage $ Billions 29% 4.45 4.50 4.08 4.00 3.77 Residential Mortgage 3
Slide 7: Low-Cost Deposits Driven by Valuable Franchise
Low-Cost Deposits Driven by Valuable Franchise Total Deposits 8.00 as of period end Deposit Portfolio Composition 7.50 as of June 30, 2025 Time 7.00 6.74 6.85 6.64 6.64 16% Noninterest Bearing 6.54 6.50 Demand 30% $ Billions 6.00 5.80 5.50 5.12 4.96 4.95 5.00 4.50 Savings & Interest Bearing 4.00 Mon
Slide 8: CPF Deposit Cost Advantage
CPF Deposit Cost Advantage Low rate-sensitive, relationship-based deposit portfolio provides significant cost advantage Non-Interest Bearing Deposits to Total Deposits Total Deposit Cost 3.00% 30.2% CPF total deposit cost declined 6 29.6% 2.50% bps to 1.02% from 1Q25 to 2Q25 23.8% 2.20% 2.00% 1.50%
Slide 9: Noninterest Income and Expense
Noninterest Income and Expense Noninterest Income Noninterest Expense 18.0 60.0 16.0 50.0 14.0 13.0 44.2 43.9 42.1 12.6 12.0 11.1 40.0 $ Millions $ Millions 10.0 $9.9MM in pre-tax loss 30.0 8.0 on investment 6.0 repositioning 20.0 4.0 10.0 2.0 2.6 0.0 0.0 4Q24 1Q25 2Q25 4Q24 1Q25 2Q25 • 2Q25 increas
Slide 10: Solid Credit Profile
5 Solid Credit Profile Asset quality remained solid and in the expected operating range Delinquencies 90+Days/Total Loans Criticized/Total Loans 1.80% 0.04% 0.04% 0.66% 0.62% 0.62% 0.82% 0.01% 0.01% 0.01% 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 NPAs/Total Loans Annualized NCO/Avg Loans 0.2
Slide 11: Allowance for Credit Losses
Allowance for Credit Losses • $3.8 million provision for credit loss on loans, plus additional $1.2 million to the reserve for unfunded commitments, for a total provision for credit loss of $5.0 million in 2Q25 • Strong ACL coverage ratio of 1.13% for 2Q25 $ Millions 2Q24 3Q24 4Q24 1Q25 2Q25 Beginni
Slide 12: High Quality Securities Portfolio
High Quality Securities Portfolio Investment Portfolio Composition as of June 30, 2025 U.S. Treasury & Gov't Collateralized loan obligations Agency Non-Agency CMBS/RMBS 3% 8% • $1.3 billion or 18% of total assets 1% • 95% AAA rated Municipals 12% • Portfolio mix: AFS 57% / HTM 43% • Interest rate sw
Slide 13: Strong Liquidity with Ample Alternative Sources
Strong Liquidity with Ample Alternative Sources $ Millions June 30, 2025 Cash on Balance Sheet $ 317 Other Funding Sources: Unpledged Securities 572 FHLB Available Borrowing Capacity 1,628 FRB Available Borrowing Capacity 230 Other Funding Lines 75 Total $ 2,505 Total Sources of Liquidity $ 2,822 Ce
Slide 14: Strong Capital and Shareholder Return
Regulatory Capital Ratios Strong Capital and 18.0% As June 30, 2025 15.8% Shareholder Return 16.0% 14.0% 12.6% 12.0% 9.6% 10.0% • Regulatory capital ratios meaningfully above the 8.0% 6.0% well-capitalized minimums 4.0% 2.0% • Maintained quarterly cash dividend of $0.27 per 0.0% Tier 1 Leverage CET1
Slide 15: Appendix
Appendix Central Pacific Financial Corp. 15
Slide 16: Who We Are: Our Foundational Principles
Who We Are: Our Foundational Principles SMALL BUSINESS HOME OWNERSHIP JAPAN #1 bank for small businesses in Hawaii Go-to lender, driving Hawaii housing solutions Bridging Hawaii and Japan • SBA Lender of the Year • Actively working with buyers in • Established key alliances Category II 16 times sinc
Slide 17: Our Core Growth and Value Drivers
Our Core Growth and Value Drivers Increased Revenue Valuable Deposit Efficiency Opportunities Franchise Optimization Improving market demand Providing stable, low- Focusing on digital and and building a solid team cost funding advantage technology to automate to grow loan portfolio and through deep
Slide 18: Digital and Technology Transformation
Digital and Technology Transformation Digital Engagement1 Branch, Leveraging Technology to Drive Efficiencies 13% 75% Mobile, 5% Implemented over 90 process improvements, ATM, 4% Automated which included 40 workflow automations that 72% 87% Consumer deposits Processes created efficiencies across var
Slide 19: Non-GAAP Disclosure
Pre-Provision Net Revenue (“PPNR”) is calculated by adding net income plus income tax expense plus provision for credit losses Non-GAAP Disclosure 2Q25 1Q25 2Q24 To supplement our consolidated financial information, the Company uses certain non-GAAP PPNR1 (IN 000’S) financial measures, which are not
Slide 20: Historical Financial Highlights
Historical Financial Highlights Year Ended December 31, 2025 ($ Millions) 2017 2018 2019 2020 2021 2022 2023 2024 1Q 2Q Balance Sheet (period end data) Loans and leases $ 3,770.6 $ 4,078.4 $ 4,449.5 $ 4,964.1 $ 5,101.6 $ 5,555.5 $ 5,439.0 $ 5,332.9 $ 5,334.5 $ 5,289.8 Total assets 5,623.7 5,807.0 6,
Slide 21: Commercial Real Estate Loans Portfolio
Commercial Real Estate Loans Portfolio CRE Loans Portfolio Composition as of June 30, 2025 Shopping Center Storage Other 3% 2% 4% Industrial/ • Investor 76% ($1.2B) / Owner-Occupied 24% ($0.4B) Warehouse Hotel 29% • Hawaii 75% ($1.2B) / Mainland 25% ($0.4B) 12% • WA LTV • Hawaii = 61% Office • Mainl
Slide 22: Consumer Loans Portfolio
Consumer Loans Portfolio Consumer Loans Portfolio Composition as of June 30, 2025 ($ Millions) • Total Hawaii Consumer $224 million Mainland Auto $134 , 28% HI Auto • Total Mainland Consumer $248 million $151 , 32% • Weighted average origination FICO: • 746 for Hawaii Consumer • 749 for Mainland Con
Slide 23: 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 America’s Best Regional Banks 2025 • Forbes’ Best-In-State Banks 2025 • Forbes’ America’s Best Banks 2025 • Honolulu Star-Advertiser’s Best Bank in Hawaii 2024 Central Pacific Financial Corp. 23
Slide 24: Caring for our 'Aina and People
Caring for our ‘Aina and People Central Pacific Financial Corp. 24
Slide 25: Mahalo
Mahalo Central Pacific Financial Corp. 25
Central Pacific Financial Corp New — Q2 2025 Earnings Presentation on 6ix