- Net income of $19.4 million,
or $0.70 per diluted share for the
quarter.
- ROA of 1.06% and ROE of 14.44% for the quarter.
- Core loans increased by $120.3
million, or 2.4% (9.6% annualized), in the first quarter,
while PPP loans decreased by $47.1
million, for a net increase in total loans of $73.2 million, or 1.4% (5.6% annualized) from
last quarter.
- Ratio of nonperforming assets to total assets improved to
0.07% in the first quarter, from 0.08% last quarter.
- Cost of average total deposits remained at 0.06% in the
first quarter.
- Completed equity investment and on track to serve as bank
sponsor for Swell Financial, as part of the recently announced
Banking-as-a-Service ("BaaS") strategy.
- Board of Directors approved quarterly cash dividend of
$0.26 per share.
HONOLULU, April 20,
2022 /PRNewswire/ -- Central Pacific Financial Corp.
(NYSE: CPF) (the "Company"), parent company of Central Pacific Bank
(the "Bank" or "CPB"), today reported net income for the first
quarter of 2022 of $19.4 million, or
fully diluted earnings per share ("EPS") of $0.70, compared to net income in the first
quarter of 2021 of $18.0 million, or
EPS of $0.64, and net income in the
fourth quarter of 2021 of $22.3
million, or EPS of $0.80.
In addition to the financial results, during the first quarter
of 2022, the U.S. Small Business Administration ("SBA") Hawaii
District Office announced that CPB was named the SBA Lender of the
Year (Category 2), with CPB originating more SBA 7a loans to small
businesses in Hawaii in 2021 than
all other major Hawaii banks
combined.
The first quarter also included an announcement that Swell
Financial, Inc. ("Swell") will work with CPB and Elevate Credit,
Inc. (NYSE:ELVT) ("Elevate", a leading tech-enabled provider of
online credit solutions). Swell is a newly-launched fintech company
incubated within CPB. It is on track to launch an integrated
checking and line-of-credit account in the summer of 2022, with CPB
serving as the bank sponsor. This key initiative will enable CPB to
expand its presence beyond Hawaii
into the U.S. mainland market. During the quarter, Swell also
successfully closed a $10 million
Series A capital raise that was led by third party investors, with
participation from CPF and Elevate.
Finally, during the first quarter, the Bank continued its strong
momentum with the new Shaka all-digital checking account base
having reached nearly 4,000 accounts opened to-date. The Bank
continues to focus on providing best-in-class digital convenience
to our core Hawaii market through
the product and related services.
"Central Pacific is pleased with our continued strong earnings
in the first quarter of 2022. We anticipate that our ongoing
digital transformation, along with a previously announced
Banking-as-a-Service strategy, will contribute to our earnings
growth in the future. With Hawaii's stronger than anticipated economic
recovery, we continue to have an optimistic outlook, and are
committed to supporting the financial needs of our customers and
the broader community," said Paul
Yonamine, Chairman and Chief Executive Officer.
"Hawaii recently removed nearly
all of the COVID-related restrictions which further facilitated our
tourism industry's rapid recovery. Recent air arrivals have already
surpassed pre-pandemic levels, even without the return of our
international market. This has had a positive impact on our
unemployment rate and our real estate market which has seen
significant gains in sales and prices," said Executive Vice Chair
Catherine Ngo.
"Our favorable revenue growth trends continued into the first
quarter with solid core loan growth. With our strong asset quality,
liquidity and capital positions, we are well positioned to continue
to grow our market share," according to Arnold Martines, President and Chief Operating
Officer.
On April 19, 2022, the Company's Board of Directors
declared a quarterly cash dividend of $0.26 per share on its outstanding common shares.
The dividend will be payable on June 15, 2022 to shareholders
of record at the close of business on May 31, 2022.
During the first quarter of 2022, the Company repurchased
234,981 shares of common stock, at a total cost of $6.7 million, or an average cost per share of
$28.65. During the three months ended
March 31, 2022, the Company returned
$13.9 million in capital to its
shareholders through cash dividends and share repurchases.
Earnings Highlights
Net interest income for the first quarter of 2022 was
$50.9 million, compared to
$49.8 million in the year-ago quarter
and $53.1 million in the previous
quarter. Net interest margin for the first quarter of 2022 was
2.97%, compared to 3.19% in the year-ago quarter and 3.08% in the
previous quarter. The sequential quarter decrease in net interest
income and net interest margin is primarily due to lower net
interest income and loan fees on PPP loans, combined with lower
yields on core loans, partially offset by higher average loan and
investment security balances. Net interest income for the first
quarter of 2022 included $1.9 million
in net interest income and loan fees on PPP loans, compared to
$4.7 million in the previous quarter.
Net deferred fees on PPP loans remaining at March 31, 2022 was
$1.7 million, compared to
$3.5 million at
December 31, 2021. Additional information on average balances,
interest income and expenses and yields and rates is presented in
Table 4.
In the first quarter of 2022, the Company recorded a credit to
the provision for credit losses of $3.2
million, compared to a credit to the provision of
$0.8 million in the year-ago quarter
and a credit to the provision of $7.7
million in the previous quarter. The credit to the provision
for credit losses in the first quarter of 2022 was driven by
continued improvements in the economic forecast and our loan
portfolio.
Other operating income for the first quarter of 2022 totaled
$9.6 million, compared to
$10.7 million in the year-ago quarter
and $11.6 million in the previous
quarter. The decrease from the year-ago quarter was primarily due
to lower mortgage banking income of $1.8 million and lower income from
bank-owned life insurance ("BOLI") of $0.3 million, partially offset by higher
other service charges and fees of $0.7 million and higher service charges on
deposit accounts of $0.4 million. The decrease from the previous
quarter was primarily due to lower mortgage banking income of
$0.7 million, lower other
service charges and fees of $0.5 million, and lower BOLI income of
$0.4 million. The lower mortgage
banking income during the current quarter was primarily
attributable to lower loan origination activity due to rising
interest rates. The lower BOLI income was primarily attributable to
volatility in the equity markets. Additional information on other
operating income is presented in Table 3.
Other operating expense for the first quarter of 2022 totaled
$38.2 million, compared to
$37.8 million in the year-ago quarter
and $42.4 million in the previous
quarter. The increase in other operating expense from the year-ago
quarter was primarily due to higher salaries and employee benefits
of $1.1 million and higher legal
and professional services of $0.2 million, partially offset by lower
computer software expense of $0.7 million, and lower advertising expense
of $0.5 million. The decrease in
other operating expense from the previous quarter is primarily due
to lower salaries and employee benefits of $2.1 million, lower net occupancy expense of
$0.4 million, lower deferred
compensation plan expense of $0.4
million (included in other), lower legal and professional
services of $0.3 million, and
lower entertainment and promotions expense of $0.3 million (included in other). In addition,
other operating expense in the previous quarter included branch
consolidation costs of $0.4 million
(included in other). Lower salaries and employee benefits during
the current quarter was primarily due to lower incentive
compensation accruals and commissions, combined with $1.1 million in severance expense included in the
previous quarter. Additional information on other operating expense
is presented in Table 3.
The efficiency ratio for the first quarter of 2022 was 63.16%,
compared to 62.54% in the year-ago quarter and 65.61% in the
previous quarter.
The effective tax rate for the first quarter of 2022 was 23.7%,
compared to 23.2% in the year-ago quarter and 25.4% in the previous
quarter.
Balance Sheet Highlights
Total assets at March 31, 2022 of $7.30 billion increased from $6.98 billion at March 31, 2021, and
decreased from $7.42 billion at
December 31, 2021.
Total loans, net of deferred fees and costs, at March 31,
2022 of $5.17 billion increased from
$5.14 billion at March 31,
2021, and increased from $5.10 billion at December 31,
2021. The sequential quarter increase in total loans included
a net increase in core loans (or non-PPP loans) of $120.3 million led by growth in consumer
loans of $45.1 million, home
equity loans of $39.1 million,
commercial mortgage loans of $23.3 million, and other commercial loans of
$14.3 million, partially offset
by a decline in PPP loans of $47.1 million due to SBA forgiveness and
paydowns. The growth in consumer loans was primarily due to
mainland unsecured and automobile portfolio purchases during the
quarter. Loans by geographic distribution are summarized in Table
5.
Total deposits at March 31, 2022 of $6.60 billion increased from $6.21 billion at March 31, 2021, and
decreased from $6.64 billion at
December 31, 2021. Core deposits, which include demand
deposits, savings and money market deposits and time deposits up to
$250,000, totaled $6.12 billion at March 31, 2022, and
decreased by $36.8 million from
December 31, 2021. Non-core deposits decreased by $3.3 million from December 31, 2021.
The Company's loan-to-deposit ratio was 78.4% at March 31,
2022, compared to 76.8% at December 31, 2021. Core deposit and
total deposit balances are summarized in Table 6.
Asset Quality
Nonperforming assets at March 31, 2022 totaled $5.3 million, or 0.07% of total assets, compared
to $7.2 million, or 0.10% of total
assets at March 31, 2021, and $5.9
million, or 0.08% of total assets at December 31, 2021.
Additional information on nonperforming assets, past due and
restructured loans is presented in Table 7.
Net charge-offs in the first quarter of 2022 totaled
$0.4 million, compared to net
charge-offs of $0.7 million in the
year-ago quarter, and net recoveries of $0.9
million in the previous quarter.
The allowance for credit losses, as a percentage of total loans
at March 31, 2022 was 1.25%, compared to 1.59% at
March 31, 2021 and 1.33% at December 31, 2021. Excluding
PPP loans, the allowance for credit losses, as a percentage of core
loans at March 31, 2022 was 1.26%, compared to 1.36% at
December 31, 2021. Additional information on net charge-offs
and recoveries and the allowance for credit losses is presented in
Tables 8 and 9.
Capital
Total shareholders' equity was $486.3
million at March 31, 2022, compared to $542.9 million and $558.2
million at March 31, 2021 and December 31, 2021,
respectively. The decline in shareholders' equity was primarily due
to unrealized losses on our available-for-sale investment
securities portfolio which flow through accumulated other
comprehensive income, and were driven by the rising interest rate
environment.
The Company maintained its strong capital position and its
capital ratios continue to exceed the levels required to be
considered a "well-capitalized" institution for regulatory purposes
under Basel III. At March 31, 2022, the Company's leverage
capital, tier 1 risk-based capital, total risk-based capital, and
common equity tier 1 ratios were 8.5%, 11.9%, 14.2%, and 10.9%,
respectively, compared to 8.5%, 12.2%, 14.5%, and 11.2%,
respectively, at December 31, 2021.
Non-GAAP Financial
Measures
This press release contains certain references to financial
measures that have been adjusted to exclude certain expenses and
other specified items. These financial measures differ from
comparable measures calculated and presented in accordance with
accounting principles generally accepted in the United States of America ("GAAP") in that
they exclude unusual or non-recurring charges, losses, credits or
gains. This press release identifies the specific items excluded
from the comparable GAAP financial measure in the calculation of
each non-GAAP financial measure. Management believes that financial
presentations excluding the impact of these items provide useful
supplemental information that is important to a proper
understanding of the Company's core business results by investors.
These presentations should not be viewed as a substitute for
results determined in accordance with GAAP, nor are they
necessarily comparable to non-GAAP financial measures presented by
other companies.
Conference Call
The Company's management will host a conference call today at
1:00 p.m. Eastern Time (7:00 a.m. Hawaii Time) to discuss
the quarterly results. Individuals are encouraged to listen to
the live webcast of the presentation by visiting the investor
relations page of the Company's website at
http://ir.cpb.bank. Alternatively, investors may participate
in the live call by dialing 1-844-200-6205 (access code:
544126). A playback of the call will be available through
May 18, 2022 by dialing 1-866-813-9403 (access code: 856811)
and on the Company's website. Information which may be discussed in
the conference call is provided in an earnings supplement
presentation on the Company's website at http://ir.cpb.bank.
About Central Pacific Financial
Corp.
Central Pacific Financial Corp. is a Hawaii-based bank holding company with
approximately $7.30 billion in assets
as of March 31, 2022. Central Pacific Bank, its primary
subsidiary, operates 30 branches and 65 ATMs in the state of
Hawaii. For additional information, please visit the Company's
website at http://www.cpb.bank.
**********
Forward-Looking Statements
("FLS")
This document may contain FLS 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 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 FLS
but are not the exclusive means of identifying such
statements.
While we believe that our FLS 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 (and ongoing
pandemic variants) 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 achieve
the objectives of our RISE2020 initiative; our ability to
successfully implement and achieve the objectives of our
Banking-as-a-Service ("BaaS") initiatives, including adoption of
the initiatives by customers and risks faced by any of our bank
collaborations including reputational and regulatory risk; the
impact of local, national, and international economies and events
(including natural disasters such as wildfires, volcanic eruptions,
hurricanes, tsunamis, storms, earthquakes and pandemic viruses and
diseases, 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 and uncertainties
regarding potential alternative reference rates, including the
Secured Overnight Financing Rate ("SOFR"); 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 ("PCAOB"), 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 FLS, 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 FLS contained in this Form 8-K. FLS speak only as of
the date on which such statements are made. We undertake no
obligation to update any FLS 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. AND
SUBSIDIARIES
|
|
Financial Highlights
|
|
(Unaudited)
|
TABLE 1
|
|
|
Three Months
Ended
|
(Dollars in
thousands,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
except for per share amounts)
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
CONDENSED INCOME
STATEMENT
|
|
|
|
|
|
|
|
|
|
|
Net
interest income
|
|
$ 50,935
|
|
$ 53,096
|
|
$ 56,086
|
|
$ 52,061
|
|
$ 49,804
|
(Credit) provision for credit losses
|
|
(3,195)
|
|
(7,692)
|
|
(2,635)
|
|
(3,443)
|
|
(821)
|
Total other operating income
|
|
9,551
|
|
11,566
|
|
10,253
|
|
10,530
|
|
10,711
|
Total other operating expense
|
|
38,205
|
|
42,422
|
|
41,345
|
|
41,433
|
|
37,846
|
Income tax expense
|
|
6,038
|
|
7,605
|
|
6,814
|
|
5,887
|
|
5,452
|
Net
income
|
|
19,438
|
|
22,327
|
|
20,815
|
|
18,714
|
|
18,038
|
Basic earnings per common share
|
|
$
0.70
|
|
$
0.80
|
|
$
0.74
|
|
$
0.66
|
|
$
0.64
|
Diluted earnings per common share
|
|
0.70
|
|
0.80
|
|
0.74
|
|
0.66
|
|
0.64
|
Dividends declared per common share
|
|
0.26
|
|
0.25
|
|
0.24
|
|
0.24
|
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (ROA) [1]
|
|
1.06 %
|
|
1.22 %
|
|
1.15 %
|
|
1.06 %
|
|
1.07 %
|
Return on average shareholders' equity (ROE) [1]
|
|
14.44
|
|
16.05
|
|
14.82
|
|
13.56
|
|
13.07
|
Average shareholders' equity to average assets
|
|
7.34
|
|
7.61
|
|
7.79
|
|
7.84
|
|
8.19
|
Efficiency ratio [2]
|
|
63.16
|
|
65.61
|
|
62.32
|
|
66.20
|
|
62.54
|
Net
interest margin (NIM) [1]
|
|
2.97
|
|
3.08
|
|
3.31
|
|
3.16
|
|
3.19
|
Dividend payout ratio [3]
|
|
37.14
|
|
31.25
|
|
32.43
|
|
36.36
|
|
35.94
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED AVERAGE
BALANCES
|
|
|
|
|
|
|
|
|
|
|
Average loans, including loans held for sale
|
|
$
5,114,260
|
|
$
5,073,069
|
|
$
5,022,909
|
|
$
5,110,820
|
|
$
5,079,874
|
Average interest-earning assets
|
|
6,932,649
|
|
6,890,829
|
|
6,761,643
|
|
6,606,779
|
|
6,305,786
|
Average assets
|
|
7,341,850
|
|
7,315,325
|
|
7,210,210
|
|
7,039,928
|
|
6,738,825
|
Average deposits
|
|
6,581,593
|
|
6,536,826
|
|
6,424,768
|
|
6,269,516
|
|
5,958,742
|
Average interest-bearing liabilities
|
|
4,429,114
|
|
4,407,612
|
|
4,221,073
|
|
4,253,382
|
|
4,161,453
|
Average shareholders' equity
|
|
538,601
|
|
556,462
|
|
561,606
|
|
552,102
|
|
551,976
|
|
|
|
|
|
|
|
|
|
|
|
[1] ROA and ROE are annualized based on a 30/360 day
convention. Annualized net interest income and expense in the NIM
calculation are based on the day count interest payment conventions
at the interest-earning asset or interest-bearing liability level
(i.e. 30/360, actual/actual)
|
[2] Efficiency ratio is defined as total
operating expense divided by total revenue (net interest income and
total other operating income)
|
[3] Dividend payout ratio is defined as
dividends declared per share divided by diluted earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
|
|
Financial Highlights
|
|
(Unaudited)
|
TABLE 1 (CONTINUED)
|
(dollars in
thousands)
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
REGULATORY CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
Central Pacific
Financial Corp
|
|
|
|
|
|
|
|
|
|
|
Leverage capital ratio
|
|
8.5 %
|
|
8.5 %
|
|
8.5 %
|
|
8.6 %
|
|
8.9 %
|
Tier 1 risk-based capital ratio
|
|
11.9
|
|
12.2
|
|
12.2
|
|
12.7
|
|
13.1
|
Total risk-based capital ratio
|
|
14.2
|
|
14.5
|
|
14.6
|
|
14.9
|
|
15.4
|
Common equity tier 1 capital ratio
|
|
10.9
|
|
11.2
|
|
11.2
|
|
11.6
|
|
12.0
|
Central Pacific
Bank
|
|
|
|
|
|
|
|
|
|
|
Leverage capital ratio
|
|
9.0
|
|
8.9
|
|
9.0
|
|
9.1
|
|
9.4
|
Tier 1 risk-based capital ratio
|
|
12.6
|
|
12.8
|
|
13.0
|
|
13.5
|
|
13.9
|
Total risk-based capital ratio
|
|
13.8
|
|
14.0
|
|
14.3
|
|
14.6
|
|
15.0
|
Common equity tier 1 capital ratio
|
|
12.6
|
|
12.8
|
|
13.0
|
|
13.5
|
|
13.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
(dollars in thousands,
except for per share amounts)
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
BALANCE
SHEET
|
|
|
|
|
|
|
|
|
|
|
Total loans, net of deferred fees and costs
|
|
$
5,174,837
|
|
$
5,101,649
|
|
$
5,045,797
|
|
$
5,077,318
|
|
$
5,137,849
|
Total assets
|
|
7,298,819
|
|
7,419,089
|
|
7,298,231
|
|
7,178,481
|
|
6,979,265
|
Total deposits
|
|
6,599,031
|
|
6,639,158
|
|
6,515,863
|
|
6,397,159
|
|
6,208,950
|
Long-term debt
|
|
105,677
|
|
105,616
|
|
105,556
|
|
105,495
|
|
105,436
|
Total shareholders' equity
|
|
486,328
|
|
558,219
|
|
555,419
|
|
552,793
|
|
542,865
|
Total shareholders' equity to total assets
|
|
6.66 %
|
|
7.52 %
|
|
7.61 %
|
|
7.70 %
|
|
7.78 %
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses (ACL)
|
|
$ 64,754
|
|
$ 68,097
|
|
$ 74,587
|
|
$ 77,781
|
|
$ 81,553
|
Nonaccrual loans
|
|
5,336
|
|
5,881
|
|
7,237
|
|
6,745
|
|
7,194
|
Non-performing assets (NPA)
|
|
5,336
|
|
5,881
|
|
7,237
|
|
6,745
|
|
7,194
|
ACL
to total loans
|
|
1.25 %
|
|
1.33 %
|
|
1.48 %
|
|
1.53 %
|
|
1.59 %
|
ACL
to core loans (refer to Table 9)
|
|
1.26 %
|
|
1.36 %
|
|
1.55 %
|
|
1.68 %
|
|
1.80 %
|
ACL
to nonaccrual loans
|
|
1,213.53 %
|
|
1,157.92 %
|
|
1,030.63 %
|
|
1,153.17 %
|
|
1,133.63 %
|
NPA
to total assets
|
|
0.07 %
|
|
0.08 %
|
|
0.10 %
|
|
0.09 %
|
|
0.10 %
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE OF COMMON
STOCK OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
Book value per common share
|
|
$
17.63
|
|
$
20.14
|
|
$
19.84
|
|
$
19.59
|
|
$
19.19
|
Closing market price per common share
|
|
27.90
|
|
28.17
|
|
25.68
|
|
26.06
|
|
26.68
|
|
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
|
|
Consolidated Balance Sheets
|
|
(Unaudited)
|
TABLE 2
|
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
(Dollars in thousands,
except share data)
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
financial institutions
|
|
$
83,947
|
|
$
81,506
|
|
$
108,669
|
|
$
116,009
|
|
$
93,358
|
|
Interest-bearing
deposits in other financial institutions
|
|
118,183
|
|
247,401
|
|
240,173
|
|
224,469
|
|
166,533
|
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale debt securities, at fair value
|
|
1,199,482
|
|
1,631,699
|
|
1,535,450
|
|
1,407,340
|
|
1,216,341
|
|
Held-to-maturity debt securities, at amortized cost; fair
value of:
$329,503 at March 31, 2022, none at December
31, 2021,
September 30, 2021, June 30, 2021, and March
31, 2021
|
|
329,507
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Equity securities, at fair value
|
|
—
|
|
—
|
|
1,593
|
|
1,578
|
|
1,435
|
|
Total investment securities
|
|
1,528,989
|
|
1,631,699
|
|
1,537,043
|
|
1,408,918
|
|
1,217,776
|
|
Loans held for
sale
|
|
4,677
|
|
3,531
|
|
5,290
|
|
5,361
|
|
5,234
|
|
Loans, net of deferred
fees and costs
|
|
5,174,837
|
|
5,101,649
|
|
5,045,797
|
|
5,077,318
|
|
5,137,849
|
|
Less: allowance for credit losses
|
|
64,754
|
|
68,097
|
|
74,587
|
|
77,781
|
|
81,553
|
|
Loans, net of allowance for
credit losses
|
|
5,110,083
|
|
5,033,552
|
|
4,971,210
|
|
4,999,537
|
|
5,056,296
|
|
Premises and equipment,
net
|
|
79,455
|
|
80,354
|
|
80,190
|
|
76,740
|
|
72,599
|
|
Accrued interest
receivable
|
|
16,423
|
|
16,709
|
|
17,110
|
|
19,014
|
|
19,440
|
|
Investment in
unconsolidated entities
|
|
31,092
|
|
29,679
|
|
30,397
|
|
31,052
|
|
31,487
|
|
Mortgage servicing
rights
|
|
9,480
|
|
9,738
|
|
9,976
|
|
10,500
|
|
11,094
|
|
Bank-owned life
insurance
|
|
167,407
|
|
169,148
|
|
167,961
|
|
167,289
|
|
167,110
|
|
Federal Home Loan Bank
("FHLB") stock
|
|
8,943
|
|
7,964
|
|
7,952
|
|
8,149
|
|
8,155
|
|
Right of use lease
asset
|
|
38,435
|
|
39,441
|
|
40,757
|
|
41,890
|
|
44,727
|
|
Other assets
|
|
101,705
|
|
68,367
|
|
81,503
|
|
69,553
|
|
85,456
|
|
Total assets
|
|
$ 7,298,819
|
|
$ 7,419,089
|
|
$
7,298,231
|
|
$ 7,178,481
|
|
$ 6,979,265
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
|
|
$ 2,269,562
|
|
$ 2,291,246
|
|
$
2,195,404
|
|
$ 2,203,806
|
|
$ 2,070,428
|
|
Interest-bearing demand
|
|
1,433,284
|
|
1,415,277
|
|
1,372,626
|
|
1,341,280
|
|
1,237,574
|
|
Savings and money market
|
|
2,197,647
|
|
2,225,903
|
|
2,296,968
|
|
2,048,945
|
|
2,004,368
|
|
Time
|
|
698,538
|
|
706,732
|
|
650,865
|
|
803,128
|
|
896,580
|
|
Total deposits
|
|
6,599,031
|
|
6,639,158
|
|
6,515,863
|
|
6,397,159
|
|
6,208,950
|
|
Long-term
debt
|
|
105,677
|
|
105,616
|
|
105,556
|
|
105,495
|
|
105,436
|
|
Lease
liability
|
|
39,610
|
|
40,731
|
|
41,933
|
|
43,112
|
|
46,033
|
|
Other
liabilities
|
|
68,123
|
|
75,317
|
|
79,412
|
|
79,874
|
|
75,933
|
|
Total liabilities
|
|
6,812,441
|
|
6,860,822
|
|
6,742,764
|
|
6,625,640
|
|
6,436,352
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, no par value, authorized 1,000,000
shares;
issued and outstanding: none at March 31,
2022, December 31,
2021, September 30, 2021, June 30, 2021, and
March 31, 2021
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Common stock, no par value, authorized 185,000,000
shares;
issued and outstanding: 27,584,929 at
March 31, 2022,
27,714,071 at December 31,
2021, 27,999,588 at September 30,
2021, 28,218,860 at June 30,
2021, and 28,282,530 at March 31,
2021
|
|
421,153
|
|
426,091
|
|
436,957
|
|
440,854
|
|
443,505
|
|
Additional paid-in
capital
|
|
98,270
|
|
98,073
|
|
97,279
|
|
96,182
|
|
95,721
|
|
Retained
earnings
|
|
54,252
|
|
42,015
|
|
22,916
|
|
10,831
|
|
628
|
|
Accumulated other
comprehensive (loss) income
|
|
(87,347)
|
|
(7,960)
|
|
(1,733)
|
|
4,926
|
|
3,011
|
|
Total shareholders' equity
|
|
486,328
|
|
558,219
|
|
555,419
|
|
552,793
|
|
542,865
|
|
Non-controlling
interest
|
|
50
|
|
48
|
|
48
|
|
48
|
|
48
|
|
Total equity
|
|
486,378
|
|
558,267
|
|
555,467
|
|
552,841
|
|
542,913
|
|
Total liabilities and equity
|
|
$ 7,298,819
|
|
$ 7,419,089
|
|
$
7,298,231
|
|
$ 7,178,481
|
|
$ 6,979,265
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
|
|
Consolidated Statements of
Income
|
|
(Unaudited)
|
TABLE 3
|
|
|
Three Months Ended
|
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
(Dollars in thousands, except per share data)
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
|
$
44,949
|
|
$
47,576
|
|
$
51,104
|
|
$
49,024
|
|
$
46,074
|
Interest and dividends on investment securities:
|
|
|
|
|
|
|
|
|
|
|
Taxable investment
securities
|
|
7,134
|
|
6,667
|
|
6,210
|
|
4,447
|
|
5,106
|
Tax-exempt investment
securities
|
|
651
|
|
642
|
|
470
|
|
346
|
|
514
|
Dividend income on investment
securities
|
|
21
|
|
21
|
|
18
|
|
18
|
|
18
|
Interest on deposits in other financial
institutions
|
|
72
|
|
86
|
|
105
|
|
61
|
|
10
|
Dividend income on FHLB stock
|
|
59
|
|
61
|
|
62
|
|
63
|
|
59
|
Total interest
income
|
|
52,886
|
|
55,053
|
|
57,969
|
|
53,959
|
|
51,781
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits:
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
112
|
|
104
|
|
101
|
|
93
|
|
86
|
Savings and money
market
|
|
329
|
|
352
|
|
332
|
|
282
|
|
274
|
Time
|
|
469
|
|
478
|
|
428
|
|
498
|
|
588
|
Interest on short-term borrowings
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
Interest on long-term debt
|
|
1,041
|
|
1,023
|
|
1,022
|
|
1,025
|
|
1,027
|
Total interest
expense
|
|
1,951
|
|
1,957
|
|
1,883
|
|
1,898
|
|
1,977
|
Net interest income
|
|
50,935
|
|
53,096
|
|
56,086
|
|
52,061
|
|
49,804
|
(Credit) provision for
credit losses
|
|
(3,195)
|
|
(7,692)
|
|
(2,635)
|
|
(3,443)
|
|
(821)
|
Net interest income after
(credit) provision for credit losses
|
|
54,130
|
|
60,788
|
|
58,721
|
|
55,504
|
|
50,625
|
Other operating
income:
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking income
|
|
1,172
|
|
1,902
|
|
1,327
|
|
1,533
|
|
2,970
|
Service charges on deposit accounts
|
|
1,861
|
|
1,800
|
|
1,637
|
|
1,443
|
|
1,478
|
Other service charges and fees
|
|
4,488
|
|
5,016
|
|
4,942
|
|
4,619
|
|
3,790
|
Income from fiduciary activities
|
|
1,154
|
|
1,283
|
|
1,292
|
|
1,269
|
|
1,231
|
Net
gain on sales of investment securities
|
|
—
|
|
—
|
|
100
|
|
50
|
|
—
|
Income from bank-owned life insurance
|
|
539
|
|
946
|
|
540
|
|
1,210
|
|
797
|
Other
|
|
337
|
|
619
|
|
415
|
|
406
|
|
445
|
Total other operating income
|
|
9,551
|
|
11,566
|
|
10,253
|
|
10,530
|
|
10,711
|
Other operating
expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
20,942
|
|
23,030
|
|
23,566
|
|
23,790
|
|
19,827
|
Net
occupancy
|
|
3,774
|
|
4,129
|
|
4,185
|
|
4,055
|
|
3,764
|
Equipment
|
|
1,082
|
|
1,207
|
|
1,089
|
|
1,048
|
|
1,000
|
Communication
|
|
806
|
|
922
|
|
824
|
|
756
|
|
769
|
Legal and professional services
|
|
2,626
|
|
2,928
|
|
2,575
|
|
2,572
|
|
2,377
|
Computer software
|
|
3,082
|
|
3,125
|
|
2,998
|
|
3,398
|
|
3,783
|
Advertising
|
|
1,150
|
|
1,179
|
|
1,329
|
|
1,329
|
|
1,658
|
Other
|
|
4,743
|
|
5,902
|
|
4,779
|
|
4,485
|
|
4,668
|
Total other operating
expense
|
|
38,205
|
|
42,422
|
|
41,345
|
|
41,433
|
|
37,846
|
Income before income
taxes
|
|
25,476
|
|
29,932
|
|
27,629
|
|
24,601
|
|
23,490
|
Income tax
expense
|
|
6,038
|
|
7,605
|
|
6,814
|
|
5,887
|
|
5,452
|
Net income
|
|
$
19,438
|
|
$
22,327
|
|
$
20,815
|
|
$
18,714
|
|
$
18,038
|
Per common share
data:
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
0.70
|
|
$
0.80
|
|
$
0.74
|
|
$
0.66
|
|
$
0.64
|
Diluted earnings per share
|
|
0.70
|
|
0.80
|
|
0.74
|
|
0.66
|
|
0.64
|
Cash dividends declared
|
|
0.26
|
|
0.25
|
|
0.24
|
|
0.24
|
|
0.23
|
Basic weighted average shares outstanding
|
|
27,591,390
|
|
27,769,651
|
|
27,967,089
|
|
28,173,710
|
|
28,108,648
|
Diluted weighted average shares outstanding
|
|
27,874,924
|
|
28,045,826
|
|
28,175,953
|
|
28,456,624
|
|
28,313,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
|
|
Average Balances, Interest Income &
Expense, Yields and Rates (Taxable
Equivalent)
|
|
(Unaudited)
|
TABLE 4
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
(Dollars in thousands)
|
|
Balance
|
|
Yield/Rate
|
|
Interest
|
|
Balance
|
|
Yield/Rate
|
|
Interest
|
|
Balance
|
|
Yield/Rate
|
|
Interest
|
ASSETS
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits in
other financial institutions
|
|
$
157,861
|
|
0.18 %
|
|
$ 72
|
|
$
225,560
|
|
0.15 %
|
|
$ 86
|
|
$ 43,442
|
|
0.10 %
|
|
$ 10
|
Investment securities, excluding
valuation allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
1,535,039
|
|
1.86
|
|
7,155
|
|
1,469,711
|
|
1.82
|
|
6,688
|
|
1,081,271
|
|
1.90
|
|
5,124
|
Tax-exempt [1]
|
|
117,493
|
|
2.80
|
|
824
|
|
114,529
|
|
2.84
|
|
813
|
|
93,665
|
|
2.78
|
|
651
|
Total investment
securities
|
|
1,652,532
|
|
1.93
|
|
7,979
|
|
1,584,240
|
|
1.89
|
|
7,501
|
|
1,174,936
|
|
1.97
|
|
5,775
|
Loans, including loans held for sale
|
|
5,114,260
|
|
3.54
|
|
44,949
|
|
5,073,069
|
|
3.73
|
|
47,576
|
|
5,079,874
|
|
3.66
|
|
46,074
|
Federal Home Loan Bank stock
|
|
7,996
|
|
2.98
|
|
59
|
|
7,960
|
|
3.05
|
|
61
|
|
7,534
|
|
3.13
|
|
59
|
Total interest-earning
assets
|
|
6,932,649
|
|
3.08
|
|
53,059
|
|
6,890,829
|
|
3.19
|
|
55,224
|
|
6,305,786
|
|
3.32
|
|
51,918
|
Noninterest-earning
assets
|
|
409,201
|
|
|
|
|
|
424,496
|
|
|
|
|
|
433,039
|
|
|
|
|
Total assets
|
|
$
7,341,850
|
|
|
|
|
|
$
7,315,325
|
|
|
|
|
|
$
6,738,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
|
$
1,425,303
|
|
0.03 %
|
|
$ 112
|
|
$
1,383,696
|
|
0.03 %
|
|
$ 104
|
|
$
1,186,963
|
|
0.03 %
|
|
$ 86
|
Savings and money market deposits
|
|
2,212,426
|
|
0.06
|
|
329
|
|
2,224,592
|
|
0.06
|
|
352
|
|
1,972,800
|
|
0.06
|
|
274
|
Time deposits up to $250,000
|
|
223,661
|
|
0.28
|
|
156
|
|
225,451
|
|
0.31
|
|
176
|
|
236,828
|
|
0.41
|
|
241
|
Time deposits over $250,000
|
|
462,087
|
|
0.28
|
|
313
|
|
468,292
|
|
0.26
|
|
302
|
|
657,004
|
|
0.21
|
|
347
|
Total interest-bearing
deposits
|
|
4,323,477
|
|
0.09
|
|
910
|
|
4,302,031
|
|
0.09
|
|
934
|
|
4,053,595
|
|
0.09
|
|
948
|
Federal Home Loan Bank advances
and other short-term borrowings
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2,456
|
|
0.30
|
|
2
|
Long-term debt
|
|
105,637
|
|
4.00
|
|
1,041
|
|
105,581
|
|
3.85
|
|
1,023
|
|
105,402
|
|
3.95
|
|
1,027
|
Total interest-bearing
liabilities
|
|
4,429,114
|
|
0.18
|
|
1,951
|
|
4,407,612
|
|
0.18
|
|
1,957
|
|
4,161,453
|
|
0.19
|
|
1,977
|
Noninterest-bearing
deposits
|
|
2,258,116
|
|
|
|
|
|
2,234,795
|
|
|
|
|
|
1,905,147
|
|
|
|
|
Other
liabilities
|
|
115,971
|
|
|
|
|
|
116,408
|
|
|
|
|
|
120,247
|
|
|
|
|
Total liabilities
|
|
6,803,201
|
|
|
|
|
|
6,758,815
|
|
|
|
|
|
6,186,847
|
|
|
|
|
Shareholders'
equity
|
|
538,601
|
|
|
|
|
|
556,462
|
|
|
|
|
|
551,976
|
|
|
|
|
Non-controlling
interest
|
|
48
|
|
|
|
|
|
48
|
|
|
|
|
|
2
|
|
|
|
|
Total equity
|
|
538,649
|
|
|
|
|
|
556,510
|
|
|
|
|
|
551,978
|
|
|
|
|
Total liabilities and equity
|
|
$
7,341,850
|
|
|
|
|
|
$
7,315,325
|
|
|
|
|
|
$
6,738,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
|
$ 51,108
|
|
|
|
|
|
$ 53,267
|
|
|
|
|
|
$ 49,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
|
|
|
2.90 %
|
|
|
|
|
|
3.01 %
|
|
|
|
|
|
3.13 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
|
|
|
|
2.97
%
|
|
|
|
|
|
3.08
%
|
|
|
|
|
|
3.19
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1] Interest income and resultant yield information
for tax-exempt investment securities is expressed on a
taxable-equivalent basis using a federal statutory tax rate of
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
|
|
|
Loans by Geographic
Distribution
|
|
|
(Unaudited)
|
TABLE 5
|
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
(Dollars in
thousands)
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
HAWAII:
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and agricultural:
|
|
|
|
|
|
|
|
|
|
|
SBA Paycheck Protection Program
|
|
$
43,380
|
|
$
87,459
|
|
$
198,315
|
|
$
395,352
|
|
$
548,880
|
Other
|
|
407,559
|
|
422,388
|
|
404,751
|
|
389,341
|
|
399,154
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
122,329
|
|
122,867
|
|
128,908
|
|
133,457
|
|
137,976
|
Residential mortgage
|
|
1,874,048
|
|
1,875,980
|
|
1,748,729
|
|
1,711,801
|
|
1,687,513
|
Home equity
|
|
676,326
|
|
637,249
|
|
618,951
|
|
583,430
|
|
559,514
|
Commercial mortgage
|
|
927,241
|
|
922,146
|
|
915,746
|
|
926,006
|
|
911,216
|
Consumer
|
|
337,188
|
|
333,843
|
|
331,987
|
|
328,332
|
|
319,032
|
Total loans, net of deferred fees and costs
|
|
4,388,071
|
|
4,401,932
|
|
4,347,387
|
|
4,467,719
|
|
4,563,285
|
Allowance for credit losses
|
|
(51,521)
|
|
(55,808)
|
|
(62,126)
|
|
(67,773)
|
|
(70,961)
|
Loans, net of allowance for credit losses
|
|
$
4,336,550
|
|
$ 4,346,124
|
|
$ 4,285,261
|
|
$ 4,399,946
|
|
$ 4,492,324
|
|
|
|
|
|
|
|
|
|
|
|
U.S. MAINLAND:
[1]
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and agricultural:
|
|
|
|
|
|
|
|
|
|
|
SBA Paycheck Protection
Program
|
|
$
851
|
|
$
3,868
|
|
$
20,356
|
|
$
39,258
|
|
$
48,939
|
Other
|
|
136,857
|
|
107,733
|
|
114,122
|
|
96,884
|
|
115,035
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
988
|
|
—
|
|
—
|
|
—
|
|
—
|
Commercial mortgage
|
|
316,258
|
|
298,058
|
|
292,671
|
|
260,424
|
|
253,122
|
Consumer
|
|
331,812
|
|
290,058
|
|
271,261
|
|
213,033
|
|
157,468
|
Total loans, net of deferred fees and costs
|
|
786,766
|
|
699,717
|
|
698,410
|
|
609,599
|
|
574,564
|
Allowance for credit losses
|
|
(13,233)
|
|
(12,289)
|
|
(12,461)
|
|
(10,008)
|
|
(10,592)
|
Loans, net of allowance for credit losses
|
|
$
773,533
|
|
$
687,428
|
|
$
685,949
|
|
$
599,591
|
|
$
563,972
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL:
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and agricultural:
|
|
|
|
|
|
|
|
|
|
|
SBA Paycheck Protection
Program
|
|
$
44,231
|
|
$
91,327
|
|
$
218,671
|
|
$
434,610
|
|
$
597,819
|
Other
|
|
544,416
|
|
530,121
|
|
518,873
|
|
486,225
|
|
514,189
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
123,317
|
|
122,867
|
|
128,908
|
|
133,457
|
|
137,976
|
Residential mortgage
|
|
1,874,048
|
|
1,875,980
|
|
1,748,729
|
|
1,711,801
|
|
1,687,513
|
Home equity
|
|
676,326
|
|
637,249
|
|
618,951
|
|
583,430
|
|
559,514
|
Commercial mortgage
|
|
1,243,499
|
|
1,220,204
|
|
1,208,417
|
|
1,186,430
|
|
1,164,338
|
Consumer
|
|
669,000
|
|
623,901
|
|
603,248
|
|
541,365
|
|
476,500
|
Total loans, net of deferred fees and costs
|
|
5,174,837
|
|
5,101,649
|
|
5,045,797
|
|
5,077,318
|
|
5,137,849
|
Allowance for credit losses
|
|
(64,754)
|
|
(68,097)
|
|
(74,587)
|
|
(77,781)
|
|
(81,553)
|
Loans, net of allowance for credit losses
|
|
$
5,110,083
|
|
$ 5,033,552
|
|
$ 4,971,210
|
|
$ 4,999,537
|
|
$ 5,056,296
|
|
|
|
|
|
|
|
|
|
|
|
[1] U.S. Mainland includes territories of the United
States
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
|
|
Deposits
|
|
(Unaudited)
|
TABLE 6
|
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
(Dollars in
thousands)
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
Noninterest-bearing
demand
|
|
$
2,269,562
|
|
$
2,291,246
|
|
$
2,195,404
|
|
$
2,203,806
|
|
$
2,070,428
|
Interest-bearing
demand
|
|
1,433,284
|
|
1,415,277
|
|
1,372,626
|
|
1,341,280
|
|
1,237,574
|
Savings and money
market
|
|
2,197,647
|
|
2,225,903
|
|
2,296,968
|
|
2,048,945
|
|
2,004,368
|
Time deposits less than
$100,000
|
|
132,712
|
|
136,584
|
|
139,358
|
|
141,498
|
|
145,497
|
Other time deposits
$100,000 to $250,000
|
|
87,838
|
|
88,873
|
|
87,491
|
|
89,710
|
|
88,814
|
Core deposits
|
|
6,121,043
|
|
6,157,883
|
|
6,091,847
|
|
5,825,239
|
|
5,546,681
|
|
|
|
|
|
|
|
|
|
|
|
Government time
deposits
|
|
188,000
|
|
214,950
|
|
238,950
|
|
403,755
|
|
500,194
|
Other time deposits
greater than $250,000
|
|
289,988
|
|
266,325
|
|
185,066
|
|
168,165
|
|
162,075
|
Total time deposits greater than $250,000
|
|
477,988
|
|
481,275
|
|
424,016
|
|
571,920
|
|
662,269
|
Total deposits
|
|
$
6,599,031
|
|
$
6,639,158
|
|
$
6,515,863
|
|
$
6,397,159
|
|
$
6,208,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
|
|
Nonperforming Assets, Past Due and Restructured
Loans
|
|
(Unaudited)
|
TABLE 7
|
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
(Dollars in
thousands)
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
Nonaccrual loans:
[1]
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and agricultural - Other
|
|
$
293
|
|
$
183
|
|
$
689
|
|
$
699
|
|
$
1,412
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
|
|
3,804
|
|
4,623
|
|
5,351
|
|
5,280
|
|
4,553
|
Home equity
|
|
820
|
|
786
|
|
880
|
|
434
|
|
439
|
Consumer
|
|
419
|
|
289
|
|
317
|
|
332
|
|
790
|
Total nonaccrual
loans
|
|
5,336
|
|
5,881
|
|
7,237
|
|
6,745
|
|
7,194
|
Other real estate owned
("OREO"):
|
|
|
|
|
|
|
|
|
|
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total OREO
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total nonperforming assets
("NPAs")
|
|
5,336
|
|
5,881
|
|
7,237
|
|
6,745
|
|
7,194
|
Loans delinquent for 90
days or more still accruing interest: [1]
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and agricultural - Other
|
|
592
|
|
945
|
|
—
|
|
29
|
|
—
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
|
|
111
|
|
—
|
|
444
|
|
1,438
|
|
4,522
|
Home equity
|
|
—
|
|
44
|
|
—
|
|
—
|
|
—
|
Consumer
|
|
621
|
|
374
|
|
166
|
|
100
|
|
262
|
Total loans delinquent for 90
days or more still accruing interest
|
|
1,324
|
|
1,363
|
|
610
|
|
1,567
|
|
4,784
|
Restructured loans
still accruing interest: [1]
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and agricultural - Other
|
|
—
|
|
—
|
|
12
|
|
26
|
|
63
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
|
|
2,751
|
|
3,768
|
|
4,458
|
|
4,258
|
|
5,473
|
Commercial mortgage
|
|
1,004
|
|
1,043
|
|
1,577
|
|
1,636
|
|
1,698
|
Consumer
|
|
83
|
|
92
|
|
99
|
|
132
|
|
198
|
Total restructured loans still
accruing interest
|
|
3,838
|
|
4,903
|
|
6,146
|
|
6,052
|
|
7,432
|
Total NPAs and loans delinquent
for 90 days or more and
restructured
loans still accruing interest
|
|
$
10,498
|
|
$
12,147
|
|
$
13,993
|
|
$
14,364
|
|
$
19,410
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
as a percentage of total loans
|
|
0.10 %
|
|
0.12 %
|
|
0.14 %
|
|
0.13 %
|
|
0.14 %
|
Total NPAs as a
percentage of total loans and OREO
|
|
0.10 %
|
|
0.12 %
|
|
0.14 %
|
|
0.13 %
|
|
0.14 %
|
Total NPAs and loans
delinquent for 90 days or more still accruing
interest as a percentage of total loans and OREO
|
|
0.13 %
|
|
0.14 %
|
|
0.16 %
|
|
0.16 %
|
|
0.23 %
|
Total NPAs, loans
delinquent for 90 days or more and restructured
loans still accruing interest as a percentage of total loans and
OREO
|
|
0.20 %
|
|
0.24 %
|
|
0.28 %
|
|
0.28 %
|
|
0.38 %
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-quarter
changes in NPAs:
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
quarter
|
|
$
5,881
|
|
$
7,237
|
|
$
6,745
|
|
$
7,194
|
|
$
6,192
|
Additions
|
|
1,659
|
|
1,375
|
|
1,951
|
|
1,879
|
|
2,257
|
Reductions:
|
|
|
|
|
|
|
|
|
|
|
Payments
|
|
(1,598)
|
|
(933)
|
|
(767)
|
|
(1,120)
|
|
(292)
|
Return to accrual status
|
|
(38)
|
|
(1,034)
|
|
(141)
|
|
(84)
|
|
(99)
|
Charge-offs, valuation
and other adjustments
|
|
(568)
|
|
(764)
|
|
(551)
|
|
(1,124)
|
|
(864)
|
Total reductions
|
|
(2,204)
|
|
(2,731)
|
|
(1,459)
|
|
(2,328)
|
|
(1,255)
|
Balance at end of
quarter
|
|
$
5,336
|
|
$
5,881
|
|
$
7,237
|
|
$
6,745
|
|
$
7,194
|
|
|
|
|
|
|
|
|
|
|
|
[1] Section 4013 of the CARES Act and the revised
Interagency Statement were applied to loan modifications related to
the COVID-19 pandemic as eligible and applicable. This relief ended
on January 1, 2022. These loan modifications were not included in
the delinquent or restructured loan balances presented
above
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
|
|
Allowance for Credit Losses on
Loans
|
|
(Unaudited)
|
TABLE 8
|
|
|
Three Months Ended
|
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
(Dollars in
thousands)
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
Allowance for
credit losses ("ACL"):
|
|
|
|
|
|
|
|
|
|
|
ACL
at beginning of period
|
|
$ 68,097
|
|
$ 74,587
|
|
$ 77,781
|
|
$ 81,553
|
|
$ 83,269
|
|
|
|
|
|
|
|
|
|
|
|
(Credit) provision for credit losses on loans [1]
[2]
|
|
(2,931)
|
|
(7,417)
|
|
(2,969)
|
|
(2,963)
|
|
(974)
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and agricultural - Other
|
|
254
|
|
379
|
|
334
|
|
401
|
|
609
|
Consumer
|
|
1,216
|
|
952
|
|
829
|
|
1,523
|
|
1,098
|
Total charge-offs
|
|
1,470
|
|
1,331
|
|
1,163
|
|
1,924
|
|
1,707
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial and
agricultural - Other
|
|
350
|
|
358
|
|
281
|
|
276
|
|
89
|
Real estate:
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
—
|
|
1,159
|
|
—
|
|
—
|
|
—
|
Residential mortgage
|
|
112
|
|
13
|
|
53
|
|
186
|
|
106
|
Home equity
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9
|
Commercial mortgage
|
|
—
|
|
—
|
|
—
|
|
65
|
|
8
|
Consumer
|
|
596
|
|
728
|
|
604
|
|
588
|
|
753
|
Total recoveries
|
|
1,058
|
|
2,258
|
|
938
|
|
1,115
|
|
965
|
Net
(recoveries) charge-offs
|
|
412
|
|
(927)
|
|
225
|
|
809
|
|
742
|
ACL
at end of period
|
|
$ 64,754
|
|
$ 68,097
|
|
$ 74,587
|
|
$ 77,781
|
|
$ 81,553
|
|
|
|
|
|
|
|
|
|
|
|
Average loans, net of
deferred fees and costs
|
|
$
5,114,260
|
|
$
5,073,069
|
|
$
5,022,909
|
|
$
5,110,820
|
|
$
5,079,874
|
Annualized ratio of net
charge-offs to average loans
|
|
0.03 %
|
|
(0.07) %
|
|
0.02 %
|
|
0.06 %
|
|
0.06 %
|
|
|
|
|
|
|
|
|
|
|
|
[1] In 2020, the Company recorded a reserve on
accrued interest receivable ("AIR") of $0.2 million for loans on
payment forbearance or deferral, which were granted to borrowers
impacted by the COVID-19 pandemic. This reserve was recorded as a
contra-asset against AIR with the offset to the provision for
credit losses. During the second quarter of 2021, the Company
reversed the entire reserve on AIR. The provision for credit losses
presented in this table excludes the provision for credit losses on
AIR
|
[2] As of January 1, 2021, the provision for credit
losses on off-balance sheet credit exposures (previously included
in other operating expense) is included in the provision for credit
losses line on the consolidated statements of income. The
allowance for off-balance sheet credit exposures continues to be
included in other liabilities. For roll-forward purposes, in this
table we exclude the provision for credit losses on off-balance
sheet credit exposures
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
|
|
Reconciliation of Non-GAAP Financial
Measures
|
|
(Unaudited)
|
TABLE 9
|
|
|
The following table
sets forth a reconciliation of our core loans and the ratios of our
allowance for credit losses ("ACL") to total loans and ACL to core
loans (or total loans, excluding SBA Paycheck Protection Program
("PPP") loans), for each of the periods indicated:
|
|
|
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Mar 31,
|
(Dollars in
thousands)
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
ACL
|
|
$
64,754
|
|
$
68,097
|
|
$
74,587
|
|
$
77,781
|
|
$
81,553
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
5,174,837
|
|
$
5,101,649
|
|
$
5,045,797
|
|
$
5,077,318
|
|
$
5,137,849
|
Less: PPP
loans
|
|
44,231
|
|
91,327
|
|
218,671
|
|
434,610
|
|
597,819
|
Core loans (or total
loans, excluding PPP loans)
|
|
$
5,130,606
|
|
$
5,010,322
|
|
4,827,126
|
|
4,642,708
|
|
$
4,540,030
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of ACL to total
loans
|
|
1.25 %
|
|
1.33 %
|
|
1.48 %
|
|
1.53 %
|
|
1.59 %
|
Ratio of ACL to core
loans
|
|
1.26 %
|
|
1.36 %
|
|
1.55 %
|
|
1.68 %
|
|
1.80 %
|
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SOURCE Central Pacific Financial Corp.