Central Pacific Financial Corp (NYSE:CPF) Q2 2023 Earnings Conference Call July 26, 2023 1:00 PM ET Company Participants Dayna Matsumoto - Group Senior Vice President and Director of Finance and Accounting Arnold Martines - President and Chief Executive Officer David Morimoto - Senior Executive Vice President and Chief Financial Officer Anna Hu - Executive Vice President and Chief Credit Officer Conference Call Participants Andrew Liesch - Piper Sandler David Feaster - Raymond James Operator Good afternoon, ...

Table of Contents Table of Contents Date: July 26, 2023 /s/ Arnold D. Martines Arnold D. Martines President and Chief Executive Of icer (Principal Executive Officer) Table of Contents In March 2022, the Company transferred 41 investment securities that were classified as AFS to HTM. The investment securities had an amortized cost basis of $361.8 million and a fair market value of $329.5 million. On the date of transfer, these securities had a total net unrealized loss of $32.3 million. There was no impact t ...

Financial Data and Key Metrics Changes - Net income for Q1 2023 was $16.2 million, or $0.60 per diluted share, with a return on average assets of 0.87% and return on average equity of 13.97% [14] - Net interest income decreased by $2.1 million from the prior quarter to $54.2 million, with a net interest margin of 3.08%, down 9 basis points sequentially [19] - Total deposits increased by a net $111 million during March, with total deposit growth of $150 million since March 9 [17] Business Line Data and Key Metrics Changes - Loan balances remained stable, with a focus on selective lending and a planned low single-digit percent range for loan growth in 2023 [15][16] - Other operating income for Q1 was $11 million, a decrease of $0.6 million from the prior quarter [21] - Nonperforming assets remained unchanged at 7 basis points of total assets, with criticized loans decreasing to 1.3% of total loans [24] Market Data and Key Metrics Changes - Hawaii's tourism industry is recovering, with visitor spending totaling $1.64 billion in February, an 18% increase compared to February 2019 [7] - The statewide unemployment rate was 3.6% in February, in line with the national rate, and nonfarm payroll increased by 24,000 jobs or 4% year-over-year [8] - The median single-family home price in Oahu reached $1.1 million, with a median condo sales price of $536,000 in March [9] Company Strategy and Development Direction - The company is focused on maintaining strong liquidity, capital, and credit while being selective in loan origination decisions [11][13] - There is an emphasis on building long-term customer relationships and enhancing market share of core deposits [18] - The leadership transition has been smooth, with a commitment to serving customers and the community [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Hawaii market's outlook compared to the national economy, despite monitoring potential impacts from a slowdown in the U.S. Mainland [10] - The company plans to remain nimble and adapt to the evolving operating environment while managing emerging risks [13] - The effective tax rate is expected to be in the 24% to 25% range going forward [23] Other Important Information - The company repurchased 101,760 shares at a total cost of $2.2 million during Q1, but share repurchases were temporarily suspended in mid-March [23] - The allowance for credit losses was $63.1 million, or 1.14% of outstanding loans [28] Q&A Session Summary Question: Deposit flows and trends - Management noted that total deposits saw $100 million in outflows in January, with a net growth of $150 million since March 9, indicating a mix shift from noninterest-bearing to higher interest-bearing products [35][37] Question: Competitive landscape for loans - The company is being more selective in loan origination, focusing on existing relationships and seeing opportunities in commercial real estate and small business sectors [40][42] Question: Asset quality outlook - Management confirmed strong asset quality, with elevated charge-offs primarily from the Mainland consumer unsecured portfolio, but within expected levels [44][48] Question: Securities portfolio and loan growth - The investment portfolio is expected to remain between 15% to 20% of total assets, with a strategy to fund higher-yielding loan opportunities [50][52] Question: Expense management and efficiency - Management is looking for efficiency opportunities to manage expenses in light of revenue challenges, with a core run rate for other operating expenses projected at $41 million to $43 million [57][63]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-31567 CENTRAL PACIFIC FINANCIAL CORP. (Exact name of registrant as specified in its charter) (State or other j ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 001-31567 Central Pacific Financial Corp. (Exact name of registrant as specified in its charter) Hawaii 99-0212597 (State or other jurisdiction of incorporation or organi ...

Forward-Looking Statements Central Pacific Financial Corp. 2 3.3% • Japanese visitors to Hawaii expected to increase with travel restrictions lifted and strengthening yen Continued housing strength and development Financial Highlights • Net interest income grew by $0.9 million from the prior quarter * Excludes $0.1 Mil, $0.7 Mil and $3.6 Mil in net PPP interest and fees in 4Q22, 3Q22 and 2022Y respectively. Also excludes $3.6 Mil, $12.4 Mil and $29.2 Mil in average PPP balances from interest earning assets ...

Financial Data and Key Metrics Changes - For the full year 2022, net income was $73.9 million or EPS of $2.68, with pretax, preprovision income excluding PPP income increasing by $29.1 million or 45% year-over-year [24][33] - Fourth quarter net income was $20.2 million or $0.74 per diluted share, with a return on average assets of 1.09% and return on average equity of 18.30% [33] - Total deposits increased by $180 million or 2.7% from the prior quarter, primarily due to successful time deposit campaigns [56] Business Line Data and Key Metrics Changes - The total loan portfolio increased by $133 million or 2.5% sequentially in Q4, and by $454 million or 8.9% for the full year 2022 [31] - Net interest income for the fourth quarter was $56.3 million, an increase of $0.9 million from the prior quarter, with a reported net interest margin remaining flat at 3.17% [58] Market Data and Key Metrics Changes - The Hawaii tourism sector is performing well, with visitor arrivals holding at about 90% of pre-pandemic levels, and visitor spending strong at $1.5 billion in November, an increase of 13.7% compared to the same month in 2019 [21][54] - The Hawaii housing market remains healthy, with single-family home sales down 23% in 2022 compared to the previous year, but housing prices are strong with a median price of $1.1 million, up 11.6% from the previous year [22][30] Company Strategy and Development Direction - The company is focused on prudent and disciplined risk management, with a strategy to enhance core deposits and expand in the Japan market [55][41] - The Swell Banking initiative is being cautiously rolled out, focusing on acquiring profitable customers rather than broad customer acquisition [46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Hawaii market, believing it is less likely to experience a material downturn compared to other U.S. markets due to strong tourism and military presence [55] - The company anticipates continued strong loan growth in 2023, except for the Mainland unsecured consumer segment, which is being allowed to run off until the economic outlook improves [23] Other Important Information - The Board of Directors approved a new annual share purchase authorization of up to $25 million for 2023 and declared a quarterly cash dividend of $0.26 per share [35] - The effective tax rate declined to 24.9% in Q4 due to higher tax-exempt BOLI income, with expectations for the effective tax rate to be in the 25% to 26% range going forward [59] Q&A Session Summary Question: What are the competitive dynamics in Hawaii regarding deposit growth? - Management noted that the market is rational, and they are actively managing funding sources to optimize performance in the current environment [63][64] Question: What is the status of the Swell Banking initiative? - The Swell initiative is currently in pilot testing with about a hundred customers, and a wider launch is planned for the first half of 2023 [68] Question: How is the company managing its deposit mix going forward? - Management indicated a near-term expectation of a 50/50 mix of time deposits and core deposits, with a gradual return to pre-pandemic levels anticipated as rates ease [88]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-31567 CENTRAL PACIFIC FINANCIAL CORP. (Exact name of registrant as specified in its charter) Hawaii 99-0212597 (State or oth ...

Financial Data and Key Metrics Changes - Net income for Q3 2022 was $16.7 million or $0.61 per diluted share, with a return on average assets of 0.91% and return on average equity of 14.49% [15] - Net interest income increased to $55.4 million, up $2.4 million from the prior quarter, with a net interest margin of 3.17%, an increase of 12 basis points [16] - Total deposits declined by $65 million or 1% from the prior quarter, marking a moderation in deposit balances [13] Business Line Data and Key Metrics Changes - Total loan portfolio increased by $121 million or 2.3% sequentially and 9% on an annualized basis, with residential mortgage portfolio growth of $32 million [10] - Mainland consumer purchase loans grew by $44 million, representing 8% of total loans, with a weighted average FICO score of 740 [12] - The allowance for credit losses was $64.4 million or 1.19% of outstanding loans, with net charge-offs of $1.6 million for the quarter [19] Market Data and Key Metrics Changes - Hawaii's tourism sector showed strong performance, with visitor arrivals at 90% of pre-pandemic levels and visitor spending reaching $1.7 billion in August, a 13.8% increase compared to August 2019 [6][8] - The unemployment rate in Hawaii was 4.1% in August 2022, expected to remain stable in 2023 [8] - Oahu's median single-family home price was $1.1 million in September 2022, up 5% from the previous year, indicating a strong housing market [9] Company Strategy and Development Direction - The company is focusing on a Mainland diversification strategy, participating in commercial, real estate, and C&I loan transactions while maintaining credit underwriting standards [11] - The banking-as-a-service FinTech strategy is being developed, with the Swell fintech app launched in an alpha pilot [14] - The company aims to manage future loan growth carefully, particularly in unsecured consumer loans, due to the current economic outlook [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to deliver strong performance despite external market challenges [22] - The company anticipates a moderate slowdown in Hawaii's economy in 2023, but expects a recovery in Japanese visitor numbers due to pent-up demand [7] - The effective tax rate is expected to remain in the 25% to 26% range going forward [20] Other Important Information - The company repurchased 218,000 shares at a total cost of $4.9 million, with a quarterly cash dividend of $0.26 per share declared [20] - Leadership changes were announced, with Paul Yonamine retiring and Arnold Martines becoming the new CEO [23][27] Q&A Session Summary Question: Details on mainland commercial real estate underwriting - The company participates in transactions with both mainland banks and Hawaii-based customers, ensuring independent underwriting [30] Question: Trends in Hawaii's commercial growth - No current reasons to pull back on commercial real estate transactions, with expectations of stability in Hawaii's market [32] Question: Deposit trends and non-interest bearing flows - A drop in non-interest bearing deposits was noted, primarily due to large corporate depositors moving funds as market rates increased [35] Question: Updates on Shaka digital deposits and Japanese deposit initiatives - Shaka accounts have reached about 4,000, with ongoing initiatives to drive activity, while Japanese deposits have grown significantly over the past four years [38][49] Question: Future targets for Swell and consumer unsecured lending - The company plans to moderate the unsecured consumer portfolio while focusing on profitable customer acquisition for Swell [54][56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-31567 CENTRAL PACIFIC FINANCIAL CORP. (Exact name of registrant as specified in its charter) Hawaii 99-0212597 (State or other ju ...