Central Pacific Financial : Fourth Quarter 2024 Earnings Release Supplement

Published: 2025-01-29 06:36:09 ET CPF

4th Quarter and Full Year 2024

Earnings Supplement

January 29, 2025

Strong 4th Quarter and Full Year 2024

4Q24

2024Y

Actual

Non-GAAP *

Actual

Non-GAAP *

NET INCOME

$11.3MM

$19.0MM

$53.4MM

$63.4MM

DILUTED EPS

$0.42

$0.70

$1.97

$2.34

PRE-PROVISION

NET REVENUE

$14.2MM

$24.2MM

$77.9MM

$90.9MM

(PPNR)

RETURN ON

0.62%

1.03%

0.72%

0.86%

ASSETS (ROA)

RETURN ON

8.37%

13.82%

10.25%

12.10%

EQUITY (ROE)

TANGIBLE

COMMON EQUITY

7.21%

7.33%

7.21%

7.33%

(TCE)

NET INTEREST

3.17%

3.01%

MARGIN (NIM)

Central Pacific Financial Corp.

Resilient Hawaii Economy

Tourism

Employment

Housing

YTD Visitor arrivals

Unemployment

Oahu Median

Single- Family

compared to

Rate

Home Price

pre-pandemic

December 2024

93% 1

3.0% 1

$1.1MM 2

FACTORS FOR A FAVORABLE HAWAII OUTLOOK

Central Pacific Financial Corp.

Diversified Loan Portfolio

$ Billions

6.00

5.00

4.00

3.00

2.00

1.00

Loan Portfolio Composition

5.56

5.44

5.40

5.38

5.34

5.33

5.10

0.17

4.96

0.19

0.17

0.16

0.15

0.12

0.55

0.57

4.45

0.12

0.58

0.59

0.60

0.62

0.80

4.08

0.10

0.63

0.58

0.54

0.52

0.51

0.96

0.62

3.77

0.07

0.57

3.52

0.73

0.71

0.70

0.68

0.07

0.58

0.57

0.48

0.64

0.74

0.10

0.50

0.49

0.51

0.47

0.49

0.55

0.45

0.47

1.47

0.41

1.22

1.36

1.38

1.42

1.47

1.50

0.36

1.16

1.04

1.12

0.88

0.98

1.34

1.43

1.60

1.69

1.88

1.94

1.93

1.92

1.91

1.90

1.89

1.22

2016

2017

2018

2019

2020

2021

2022

2023

1Q24

2Q24

3Q24

4Q24

Residential Mortgage Commercial Mortgage Home Equity Consumer Commercial & Industrial Construction

• Pace of loan portfolio decline slowing; poised for growth in 2025

•

Strong and diverse loan portfolio, with nearly 80% secured by real estate

•

Overall portfolio yield improved 2 bps to 4.91% in the 4Q24

Central Pacific Financial Corp.

Note: Totals may not sum due to rounding.

Relationship Deposits - Diversified & Granular

Deposit Portfolio Composition

$ Billions

8.00

7.00

6.00

5.00 4.61

0.70

4.00

0.39

3.00 0.86

2.00 1.27

6.64

6.74

6.85

6.62

6.58

6.64

0.37

0.21

0.29

0.24

0.19

0.12

0.10

5.80

0.49

0.71

1.03

1.02

0.98

5.12

0.50

4.96

4.95

1.42

0.53

0.41

1.45

1.26

1.34

0.69

0.63

1.33

1.29

1.28

0.50

1.17

0.46

0.48

0.93

0.95

1.04

2.29

2.09

1.91

1.85

1.84

1.89

1.79

1.85

1.40

1.44

1.45

1.00

1.48

1.45

1.60

1.93

2.23

2.20

2.21

2.23

2.34

2.33

1.39

2016

2017

2018

2019

2020

2021

2022

2023

1Q24

2Q24

3Q24

4Q24

Savings and Money Market

Noninterest-Bearing Demand

Interest-Bearing Demand

Time Deposits excluding Government

Government Time Deposits

Total Deposits

Central Pacific Financial Corp.

Note: Totals may not sum due to rounding.

CPF Deposit Cost Advantage

Low rate-sensitive, relationship-based deposit portfolio provides significant cost advantage

Total Deposit Cost

Total Interest Bearing Deposit Cost

3.00%

2.50%

2.00%

1.50%

1.00%

CPF total deposit cost declined

11 bps to 1.21% in 4Q24

2.44%

1.79%

1.21%

2.55%

2.44%

1.67%

CPF

HI Peers

Nat'l Peers

Non-Interest Bearing Deposits to Total Deposits

0.50%

28.4%

29.7%

0.00%

23.5%

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

1Q24

2Q24

3Q24

4Q24

CPF

HI Peers

Nat'l Peers

• CPF shown as of 4Q24

• HI Peers includes BOH & FHB as of 3Q24.

CPF

HI Peers

Nat'l Peers

•

Nat'l Peers includes publicly traded banks with total assets of $3-10B as of 3Q24.

•

Source: S&P Global.

Central Pacific Financial Corp.

Solid Credit Profile

Strong credit risk management continues to drive low levels of problem assets

Criticized/Total Loans

Delinquencies 90+Days/Total Loans

0.92%

0.56%

0.66%

0.62%

0.02%

0.05%

0.04%

0.01%

4Q23

1Q24

2Q24

3Q24

4Q24

4Q23

1Q24

2Q24

3Q24

4Q24

Annualized NCO/Avg Loans

NPAs/Total Loans

0.41%

0.34%

0.19%

0.22%

0.21%

0.28%

0.27%

0.29%

0.19%

0.34%

0.13%

0.24%

0.19%

0.20%

0.07%

0.10%

0.08%

0.07%

0.10%

4Q23

1Q24

2Q24

3Q24

4Q24

4Q23

1Q24

2Q24

3Q24

4Q24

All Other NCO/Avg Loans

Mainland Consumer NCO/Avg Loans

Central Pacific Financial Corp.

Allowance for Credit Losses

$ Millions

4Q23

1Q24

2Q24

3Q24

4Q24

Beginning Balance

64.5

63.9

63.5

62.2

61.6

Net Charge-offs

(5.6)

(4.5)

(3.7)

(3.6)

(3.8)

Provision for Credit Losses

5.0

4.1

2.4

3.0

1.4

Ending Balance

63.9

63.5

62.2

61.6

59.2

Coverage Ratio (ACL to Total Loans)

1.18%

1.16%

1.15%

1.11%

Note: Totals may not sum due to rounding.

Central Pacific Financial Corp.

High Quality Securities Portfolio

Investment Portfolio Composition

as of December 31, 2024

Collateralized loan obligations

2%U.S. Treasury & Gov't Agency

Non-Agency CMBS/RMBS

Municipals

12%

Agency CMBS/RMBS 78%

Strategic Activities

Central Pacific Financial Corp.

Disclaimer

Central Pacific Financial Corporation published this content on January 29, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on January 29, 2025 at 11:35:03.518.