#1CENTRAL PACIFIC FINANCIAL CORP First Quarter 2020 Earnings Supplement April 22, 2020#2FORWARD 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, 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 RISE2020 initiative; 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. II 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 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 RISE2020 initiative; 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 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, borrowings 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 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 statement is made, or to reflect the occurrence of unanticipated events except as required by law. CENTRAL PACIFIC FINANCIAL CORP 2#3■ P PANDEMIC PREPAREDNESS PLAN BUSINESS CONTINUITY COMMITTEE Activated and meeting daily since mid-March 2020 Primary objective is ensuring the safety and health of employees and customers Consists of representatives from: HR, Branches & Call Center, IT, Information Security, Finance, Facilities, Communications, Legal, and Credit Daily updates sent to the Executive Committee 1 5 FACILITIES Increased sanitation and protective supplies 2 4 3 HUMAN RESOURCES Policy adjustments for travel, work from home, sick leave, quarantine FINANCE Implications on liquidity, expenses, cash flow, capital adequacy, critical vendors IT & INFO SECURITY Increased remote working capability and system load; bolstered data protection FRONT LINE Temporary adjustments to branch hours and network, customer outreach, credit risk evaluation CENTRAL PACIFIC FINANCIAL CORP 3#4[s SUPPORTING OUR EMPLOYEES JO09BE CURRENT STATUS ▪ All banking services operating normally ▪ Exceptional client service and outreach ongoing ▪ Employee absentee rate normal and stable REMOTE WORK CO ▪ Approximately 70% of all employees are setup on VPN IT systems and VPN capacity increased Collaboration tools enable continued work productivity 10 FRONT LINE WORKERS Closed 13 of 35 branches Smaller footprint branches closed for increased social distancing • Protective equipment (face shields, masks) provided for branch staff CENTRAL PACIFIC FINANCIAL CORP 4#5P Central Pacific has implemented borrower relief programs to provide assistance to our customers. ● ● ● PROGRAMS TO SUPPORT CLIENTS WITH EXISTING LOANS ● COML RE AND C&I Principal or Principal & Interest deferrals for 3-6 months are being granted on a case-by-case basis. $120MM/427 loans granted deferrals (7% of $1.8B outstanding). CONSUMER Principal & Interest payment deferral for 3 months. $32MM/1,962 loans were granted deferrals (6% of $0.6B outstanding). Note: Deferral data as of April 16, 2020. ● RESIDENTIAL MORTGAGE Principal & Interest payment deferral provided for 3 months. $148MM/270 loans were granted deferrals (7% of $2.1B outstanding). TOTAL DEFERRALS Booked $MM $300 COUNT 2,659 Deferrals have been made on less than 7% of the total loan portfolio thus far CENTRAL PACIFIC FINANCIAL CORP 5#6[ SPECIAL LOAN PROGRAMS SBA PAYCHECK PROTECTION PROGRAM (PPP) As of 4/16/20: Total approved by SBA: 4,215 / $487MM Total funded: 88 loans / $12.5MM Average loan size: $0.1MM ● Central Pacific is also participating in the SBA Disaster LSBA and EIDL loan programs. EMPLOYMENT DISRUPTION LOAN PROGRAM Offered to furloughed or unemployed existing customers in amounts between $1,000-8,000, for 1-2 year terms. As of 4/16/20: Total applications: 85 / $0.5MM Total approved: 16 /$0.1MM DE CENTRAL PACIFIC FINANCIAL CORP 6#7[ OTHER PROGRAMS TO HELP CUSTOMERS CHANGES MADE TO ALLOW CUSTOMERS TO QUICKLY & CONVENIENTLY ACCESS FUNDS > ATM - Waived non-CPB ATM fees ➤ CDs - Waived early withdrawal fee ➤ Debit Cards - Raised spending cap limits to $10,000 > Mobile Deposits - Increased limits to $10,000 daily DE CENTRAL PACIFIC FINANCIAL CORP 7#8[P POTENTIAL COVID-19 EXPOSURE IN LOAN PORTFOLIO Total Loan Portfolio of $4,504MM¹ Outstanding Balance as of 3/31/20 $ in Millions Consumer $560 / 13% Residential/HE $2,129 / 47% Owner Occupied CRE / C&I $865 / 19% 1 Excludes Overdrafts and Unearned/Other Clearings K Investor CRE $950 / 21% ● Industry Owner Occupied CRE / C&I $865 Consumer $560 ● POTENTIAL IMPACT Industry ● O/S Bal in MM POTENTIAL LIMITED IMPACT Residential / HE Investor CRE O/S Bal in MM $2,129 $950 CENTRAL PACIFIC FINANCIAL CORP 8#9[ OWNER OCCUPIED COMMERCIAL REAL ESTATE / C&I BY INDUSTRIES INDUSTRIES THAT WILL LIKELY EXPERIENCE IMPACT FROM COVID-19 Primary Industries Outstanding Balance as of 3/31/20 $ in Millions Secondary Industries Outstanding Balance as of 3/31/20 $ in Millions Wholesale Trade $37 / 4% Accommodation & Foodservice $58 / 7% Manufacturing $73 / 9% $378MM 8% $865MM (Does not reflect an additional $351MM of undrawn commitments) Healthcare $124/ 14% Retail Trade $86 / 10% Professional & Administrative $46 / 5% ● Transportation $73 / 9% Other Industries $217/ 25% Other Industries include: Other Services Construction Utilities Finance and Insurance $487MM 11% Real Estate Management & Other Leasing $151 / 17% RE CENTRAL PACIFIC FINANCIAL CORP 9#10[ 0/0 AND C&I - PRIMARY AND SECONDARY INDUSTRIES PRIMARY INDUSTRIES - $378MM OUTSTANDING LOAN BALANCE Healthcare: dentists, physicians, social services, nursing and residential care homes, child day care ‒‒‒‒‒ I ‒‒‒‒‒‒‒‒‒ ‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒ Retail Trade: supermarkets, food, beverage, hardware, new and used car dealers, gas stations ‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒‒‒‒ Manufacturing: food, beverage, paper, transportation equipment, electrical equipment ‒‒‒‒‒‒‒‒‒‒ ‒‒‒‒ Accommodation & Foodservice: hotels, bed and breakfast, full-service restaurants, limited service restaurants, caterers I ‒‒‒‒ ‒‒‒‒‒‒‒‒ ‒‒‒‒ ‒‒‒‒‒‒‒‒‒‒‒ ‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒‒ R/E Management & Other Leasing: property management, appraisers, commercial & industrial equipment leasing Transportation: water freight, air freight, commercial trucking Professional & Administrative: attorneys, accountants, waste management, engineering services, administrative management $124MM / 77% Utilization Wholesale Trade: food, beverage, general line grocery, stationery and office supplies, motor vehicle parts and supplies SECONDARY INDUSTRIES - $487MM OUTSTANDING LOAN BALANCE Other Industries: construction, utilities, finance, insurance ‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒‒‒‒ $86MM / 76% Utilization ‒‒‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒‒‒‒ $73MM / 78% Utilization ‒‒‒‒‒‒‒‒‒ $58MM/ 79% Utilization ‒‒‒‒‒‒‒‒‒‒ ‒‒‒‒‒‒ ‒‒‒‒‒‒‒‒‒‒‒ $37MM / $63% Utilization $217MM / 61% Utilization ‒‒‒‒‒‒‒‒‒‒‒ $151MM / 83% Utilization ‒‒‒‒‒‒‒‒‒‒‒ $73MM / 77% Utilization $46MM / 56% Utilization ‒‒‒‒‒‒‒‒ CENTRAL PACIFIC FINANCIAL CORP 10#11[ CONSUMER LOAN PORTFOLIO Auto $289/ 52% Outstanding Balance as of 3/31/20 $ in Millions Personal Loans & Lines $271 / 48% Loan Portfolio Details Auto ✓ Hawaii $218MM ✓ Mainland $71MM Personal Loans & Lines ● ● ✓ Hawaii $150MM ✓ Mainland $121MM • Hawaii Consumer ● ✓ WA FICO 737 ● • Mainland Consumer ✓ WA FICO 758 $560MM (Does not reflect an additional $96MM of undrawn commitments) DO CENTRAL PACIFIC FINANCIAL CORP 11#12[ MORTGAGE LOAN PORTFOLIO ● LIMITED IMPACT EXPECTED FROM COVID-19 Loan Portfolio Details Residential ✓ WA LTV 60% ✓ WA FICO 779 Home Equity Loans & Lines ✓ WA LTV 58% ✓ WA FICO 786 Home Equity Loans & Lines $489 / 23% $2,129MM (Does not reflect an additional $504MM of undrawn commitments) Outstanding Balance as of 3/31/20 $ in Millions Note: Excludes Overdrafts and Unearned/Other Clearings F Residential $1,640 / 77% CENTRAL PACIFIC FINANCIAL CORP 12#13● INVESTOR COMMERCIAL REAL ESTATE LOANS Loan Portfolio Details WA LTV 53% Secured By ✓ Commercial & ● LIMITED IMPACT EXPECTED FROM COVID-19 Industrial Warehouse ✓ Multi-Family ✓ Commercial Construction & Development $950MM (Does not reflect an additional $121MM of undrawn commitments) Outstanding Balance as of 3/31/20 $ in Millions Commercial Construction & Development $46 / 5% Multi-Family $316 / 33% Commercial & Industrial Warehouse $588/ 62% NG CENTRAL PACIFIC FINANCIAL CORP 13#14LOANS RATED SPECIAL MENTION Outstanding Balance as of 3/31/20 $ in Millions Foodservice $14/ 13% Healthcare $6/6% Accommodation $10/9% Wholesale Trade $18/ 16% Other $9/8% Real Estate Rental & Leasing $33/ 30% Retail Trade $19 / 17% Credit Risk Management Approach Strong asset quality prior to COVID-19 After COVID-19, additional monitoring with frequent high-touch ● ● Assessment for risk rating migration based on: ✓ Management strength and actions taken ✓ Business cash burn ✓ Access to cash liquidity ✓ Payment deferral ✓ Application of Federal support programs $109MM of which $65MM was attributed to COVID-19 CENTRAL PACIFIC FINANCIAL CORP 14#15F FIRST QUARTER 2020 HIGHLIGHTS Net Income Diluted EPS Pre-Tax, Pre-Provision Earnings Loan Growth Net Interest Margin $8 Million $0.29 $21 Million +$63 Million +1.4% 3.43% ● ● Quarterly results impacted by new CECL accounting standard and declining economic conditions Pre-tax, Pre-provision earnings remained strong Solid liquidity and capital; balance sheet well positioned Committed to supporting our employees, customers and community BG CENTRAL PACIFIC FINANCIAL CORP 15#16[c COMMUNITY SUPPORT #KeepHawaiiCooking III #KeepHawaiiCooking Powered by Central Pacific Bank Foundation Central Pacific Bank Foundation fo To support local restaurants and families during this challenging time, Central Pacific Bank Foundation subsidized the cost of take out meals purchased from local Mahalo, Hawaii! Together we've shared restaurants. 10,000 meals! Thank you for your overwhelming support of local restaurants, their employees, and the community! Central Pacific Bank Foundation contributed $300,000 to the campaign and additional initiatives to support the community during the pandemic are planned. CENTRAL PACIFIC FINANCIAL CORP 16#17← CENTRAL PACIFIC [APPENDIX FINANCIAL CORP#18[ STRONG CREDIT METRICS Delinquencies Past Due 90+ Days 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 1Q19 2019 3Q19 4Q19 1Q20 Delinquencies in $ Millions (right) Delinquency Ratio (left) Non Performing Loans 1Q19 2019 3Q19 INPLS in $ Millions (right) 4Q19 1Q20 NPL ratio (left) $5 $4 $3 $2 $1 $0 $5 $4 $3 $2 $1 $0 1.90% 1.70% 1.50% 1.30% 1.10% 0.90% 0.70% 0.50% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% Allowance for Credit Losses (ACL) CECL Incurred Loss Method il ||| 1Q19 2Q19 1Q20 4Q19 ACL/Total Loans (left) ACL in $ Millions (right) 3Q19 1Q19 Net Charge-Offs 2Q19 3Q19 4Q19 Net Charge-offs in $ Millions (right) NCO/Avg Loans (left) 1Q20 $5 $4 $3 $2 $1 $0 $65 $60 $55 $50 $45 $40 $35 $30 $25 $20 CENTRAL PACIFIC CORP 18#19[ DRIVERS OF CHANGE UNDER CECL $49 ALLL 4Q19 Allowance for Credit Losses (in millions)* $4 Day 1 Adjustment $10 o Changes in portfolio and credit quality o Macro economic conditions o Consideration of additional economic scenarios o Net charge- offs * Includes the Allowance for Off-Balance Sheet Exposures. 1Q20 Day 2 $63 BG CENTRAL PACIFIC FINANCIAL CORP 19#20[ Non-GAAP Financial Measures- Pre-Tax, Pre-Provision Earnings $ Millions Net Interest Income Other Operating Income Total Revenue Other Operating Expense Pre-tax, Pre-provision Earnings GAAP Net Income Three-Months Ended Mar. 31, 2020 $ 47.8 8.9 56.7 36.2 20.5 8.3 Dec. 31, 2019 $ 47.9 9.8 57.7 36.2 21.5 14.2 Mar. 31, 2019 $ 45.1 11.7 56.8 34.4 22.4 16.0 % Change QoQ 0% -9% -2% 0% -5% YoY 6% -24% 0% 6% -9% -41% -48% We believe that pre-tax, pre-provision earnings, a non-GAAP financial measure, is useful as a tool to help evaluate the ability to provide for credit costs through operations. CENTRAL PACIFIC FINANCIAL CORP 20