Third Quarter 2021 Earnings Release Supplement

CPF

3rd Quarter 2021 Earnings Supplement

October 27, 2021

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, net interest margin or other financial items; statements of plans, objectives and expectations of Central Pacific Financial Corp. or its management or Board of Directors, including those relating to business plans, use of capital resources, products or services and regulatory developments and regulatory actions; statements of future economic performance including anticipated performance results from our various business initiatives; or any statements of the assumptions underlying or relating to any of the foregoing. Words such as "believes," "plans," "anticipates," "expects," "intends," "forecasts," "hopes," "targeting," "continue," "remain," "will," "should," "estimates," "may" and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

While we believe that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions are by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could differ materially from those statements or projections for a variety of reasons, including, but not limited to: the adverse effects of the COVID-19 pandemic virus on local, national and international economies, including, but not limited to, the adverse impact on tourism and construction in the State of Hawaii, our borrowers, customers, third-party contractors, vendors and employees as well as the effects of government programs and initiatives in response to COVID-19; the impact of our participation in the Paycheck Protection Program ("PPP") and fulfillment of government guarantees on our PPP loans; the increase in inventory or adverse conditions in the real estate market and deterioration in the construction industry; adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality, and losses in our loan portfolio; our ability to successfully implement our business initiatives; the impact of local, national, and international economies and events (including natural disasters such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, earthquakes and pandemic virus and disease, including COVID-19) on the Company's business and operations and on tourism, the military, and other major industries operating within the Hawaii market and any other markets in which the Company does business; deterioration or malaise in domestic economic conditions, including any destabilization in the financial industry and deterioration of the real estate market, as well as the impact of declining levels of consumer and business confidence in the state of the economy in general and in financial institutions in particular; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), changes in capital standards, other regulatory reform and federal and state legislation, including but not limited to regulations promulgated by the Consumer Financial Protection Bureau (the "CFPB"), government-sponsored enterprise reform, and any related rules and regulations which affect our business operations and competitiveness; the costs and effects of legal and regulatory developments, including legal proceedings or regulatory or other governmental inquiries and proceedings and the resolution thereof, the results of regulatory examinations or reviews and the effect of, and our ability to comply with, any regulations or regulatory orders or actions we are or may become subject to; ability to successfully implement our initiatives to lower our efficiency ratio; the effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System (the "FRB" or the "Federal Reserve"); inflation, interest rate, securities market and monetary fluctuations, including the anticipated replacement of the London Interbank Offered Rate ("LIBOR") Index and the impact on our loans and debt which are tied to that index; negative trends in our market capitalization and adverse changes in the price of the Company's common stock; political instability; acts of war or terrorism; pandemic virus and disease, including COVID-19; changes in consumer spending, borrowing and savings habits; failure to maintain effective internal control over financial reporting or disclosure controls and procedures; cybersecurity and data privacy breaches and the consequence therefrom; the ability to address deficiencies in our internal controls over financial reporting or disclosure controls and procedures; technological changes and developments; changes in the competitive environment among financial holding companies and other financial service providers; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board ("FASB") and other accounting standard setters and the cost and resources required to implement such changes; our ability to attract and retain key personnel; changes in our personnel, organization, compensation and benefit plans; and our success at managing the risks involved in the foregoing items.

For further information with respect to factors that could cause actual results to materially differ from the expectations or projections stated in the forward-looking statements, please see the Company's publicly available Securities and Exchange Commission filings, including the Company's Form 10-K for the last fiscal year and, in particular, the discussion of "Risk Factors" set forth therein. We urge investors to consider all of these factors carefully in evaluating the forward-looking statements contained in this Form 8-K.Forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events except as required by law.

Central Pacific Financial Corp.

2

3rd Quarter 2021 Highlights

3Q 2021

2Q 2021

NET INCOME /

$20.8 Million /

$18.7 Million /

DILUTED EPS

$0.74

$0.66

CORE LOAN

+$184 Million

+$103 Million

(+4.0%)

(+2.3%)

GROWTH

(excluding PPP)

(excluding PPP)

CORE DEPOSIT

+$267 Million

+$279 Million

GROWTH

(+4.6%)

(+5.0%)

NET INTEREST

3.31% Actual

3.16% Actual

2.96%

2.93%

MARGIN

Normalized*

Normalized*

EFFICIENCY RATIO

62.3%

66.2%

NPA/TOTAL

0.10%

0.09%

ASSETS

Central Pacific Financial Corp.

* Normalized to exclude PPP impact, refer to slide 15 for additional details.

3

Consistent Loan Growth

Loan Balances Outstanding-Excluding PPP

5,500

$4.8B

5,000

$ Millions

4,500

4,000

3,500

3,000

2016

2017

2018

2019

2020

Q1 2021 Q2 2021 Q3 2021

3Q 2021 Loan Growth (excluding PPP) by Type

Consumer, $62 +11%

Resi Mtge, $37

+2%

Home Equity, $36

+6%

C&I, $33 +7%

Coml Mtge, $22 +2%

Construction

, $(5)

$(10)

$-

$10

$20

$30

$40

$50

$60

$70

Quarterly Loan Growth in $ Millions

Central Pacific Financial Corp.

4

Strong Asset Quality

CLASSIFIED ASSETS

15.00%

$100

13.00%

$80

11.00%

$60

9.00%

$40

7.00%

$20

5.00%

3.00%

$0

3Q20

4Q20

1Q21

2Q21

3Q21

Classified Assets + OREO (right)

Classified Assets + OREO/Tier 1 Capital + ACL (left)

Peer Average (left)

NON PERFORMING LOANS

5.00%

$100

4.00%

$80

3.00%

$60

2.00%

$40

1.00%

$20

0.00%

$0

3Q20

4Q20

1Q21

2Q21

3Q21

NPLs in $ Millions (right)

NPL /Total Loans (left)

Peer Average (left)

ALLOWANCE FOR CREDIT LOSSES (ACL)*

1.90%

$100

1.70%

$80

1.50%

$60

1.30%

$40

1.10%

$20

0.90%

$0

3Q20

4Q20

1Q21

2Q21

3Q21

ACL in $ Millions (right)

ACL/Total Loans, excl PPP (left)

Peer Average (left)

* Excludes the PPP loan portfolio from total loans.

NET CHARGE-OFFS

0.50%

$100

0.40%

$80

0.30%

$60

0.20%

$40

0.10%

$20

0.00%

$0

3Q20

4Q20

1Q21

2Q21

3Q21

Net Charge-offs in $ Millions (right)

NCO/Avg Loans (left)

Peer Average (left)

Central Pacific Financial Corp.

Note: Peer Average includes banks $3-10B in assets. Source S&P Global.

5

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Disclaimer

Central Pacific Financial Corporation published this content on 27 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2021 10:37:03 UTC.