Central Pacific Financial : CPF Investor Presentation - March 2025

Published: 2025-03-10 20:06:05 ET CPF

Investor Presentation

March 2025

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 financial services.

Today CPB is the 4th largest financial institution in Hawaii with 27 branches

MARKET

INFORMATION

across the State. CPB is a market leader in residential mortgage, small

business banking and digital banking.

NYSE TICKER

CPF

In 2025, CPB celebrates 71 years of providing financial

SUBSIDIARY

CPB

solutions in the State of Hawaii.

TOTAL ASSETS

$7.5 BILLION

MARKET CAP

$788 MILLION

SHARE PRICE

$29.04

DIVIDEND YIELD

3.7%1

1 Dividend yield is calculated based on quarterly cash dividend of

$0.27 per share declared for 1Q25.

Central Pacific Financial Corp.

Note: Total assets as of December 31, 2024. Other Market Information above as of February 28, 2025.

Resilient Hawaii Economy Provides a Favorable Environment

• Strong real estate market

• Low unemployment

Tourism

Employment

Housing

• Substantial Federal government contracts and

Visitor arrivals

Unemployment

Oahu Median

Single-Family Home

military investments; 9.2%3 of state GDP amounting

compared to

Rate

Price

to $10.0 billion3 in FY2023

pre-pandemic

December 2024

January 2025

93% 1

3.0% 1

• Record levels of construction activity; estimated

$1.1MM 2

annualized value of completed construction for

2024 could be over ~$14.0 billion1 which will

surpass 2023 value of $11.8 billion1

• Visitor industry continues to have year-over-year

growth in arrivals and spending over the last five

months of 2024, despite slower Maui and Japan

visitor recovery

Source: State of Hawaii Department of Business, Economic Development &

Tourism. Tourism represents total visitors in FY2024 compared to FY2019.

Source: Honolulu Board of Realtors.

Source: U.S. Department of Defense, Office of Local Defense Community

Cooperation. Spending comprised of total contract, grant, and payroll.

Central Pacific Financial Corp.

Strong 4th Quarter and Full Year 2024

4Q24

2024Y

Actual

Non-GAAP 1

Actual

Non-GAAP 1

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) 2

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.

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

Central Pacific Financial Corp.

Our Core Growth and Value Drivers

Increased Revenue

Opportunities

Improving market demand and building a solid team to grow loan portfolio and fee income

Valuable Deposit

Franchise

Providing stable, low-

cost funding advantage

through deep relationships

Built on our Foundational Principles

Efficiency

Optimization

Focusing on digital and technology to automate processes, improve customer and employee experience, and drive ROI

Small Business

Home Ownership

Japan

Credit Profile

Capital

Liquidity

S O L I D

Central Pacific Financial Corp.

Diversified Loan Portfolio Primed for Growth

$ Billions

Loan Balances Outstanding

as of year ending

6.00

5.56

5.44

5.33

5.50

5.10

4.96

5.00

4.50

4.45

4.08

3.00

2017

2018

2019

2020

2021

2022

2023

2024

Loan Portfolio Composition

as of December 31, 2024

Consumer

Commercial &

10%

Industrial

11%

Construction

Commercial

Mortgage

28%

Residential

Mortgage

35%

Home Equity

13%

Central Pacific Financial Corp.

Low-Cost Deposits Driven by Valuable Franchise

$ Billions

Total Deposits

Deposit Portfolio Composition

as of December 31, 2024

8.00

as of period end

7.50

Time

Noninterest Bearing

17%

7.00

6.74

6.85

Demand

6.64

6.62

6.64

28%

6.58

6.50

6.00

5.80

5.50

5.12

4.96

4.95

5.00

4.50

Savings &

Interest Bearing

Demand

Money Market

4.00

35%

20%

2017 2018 2019 2020 2021 2022 2023 1Q24 2Q24 3Q24 4Q24

Deposit balances increased by $61 million from 3Q24 to 4Q24

• 58% of deposits FDIC insured; 63% including collateralized deposits

• Well-diversified and granular:

56% Commercial (Average account balance of $103,000)

44% Consumer (Average account balance of $19,000)

• 53% Long-tenured customers with CPB 10 years or longer

• Low reliance on public time deposits

•

No brokered deposits

Central Pacific Financial Corp.

Data as of December 31, 2024

CPF Deposit Cost Advantage

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

Non-Interest Bearing Deposits to Total Deposits

as of December 31, 2024

Total Deposit Cost

3.00%

CPF total deposit cost declined 11

2.50%

bps to 1.21% from 3Q24 to 4Q24

2.31%

2.00%

1.66%

1.50%

1.21%

1.00%

0.50%

0.00%

2017

2018

2019

2020

2021

2022

2023

1Q24

2Q24

3Q24

4Q24

CPF

HI Peers

Nat'l Peers

28.4%

30.3%

23.4%

CPF

HI Peers

Nat'l Peers

Net Interest Margin

3.27%

3.07%

3.31%

3.17%

3.37%

2.84%

2.57%

2.62%

2.48%

4Q23

3Q24

4Q24

CPF

HI Peers

Nat'l Peers

• Source: CPF Form 10-K for the fiscal year ended 12/31/2024, S&P Global

• HI Peers includes BOH and FHB

Central Pacific Financial Corp.

• Nat'l Peers includes publicly traded banks with total assets of $3-10 billion as

of 12/31/24

Disclaimer

Central Pacific Financial Corporation published this content on March 11, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 11, 2025 at 00:05:08.758.