- Net income of $17.6 million,
or $0.64 per diluted share for the
quarter.
- ROA of 0.96% and ROE of 14.93% for the quarter.
- Total loans of $5.30 billion
increased by $126.8 million, or 2.5%
(10.0% annualized) in the second quarter.
- Total deposits of $6.62
billion increased by $23.0
million, or 0.3% (1.2% annualized) in the second quarter.
Core deposits increased by $34.6
million, or 0.6% (2.4% annualized) in the second
quarter.
- Net interest margin of 3.05% increased by 8 bp from the
previous quarter.
- Central Pacific Bank named the Best Bank in Hawaii by Forbes.
- Board of Directors approved quarterly cash dividend of
$0.26 per share.
HONOLULU, July 27, 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 second quarter of 2022 of $17.6 million, or fully diluted earnings per
share ("EPS") of $0.64, compared to
net income in the second quarter of 2021 of $18.7 million, or EPS of $0.66, and net income in the first quarter of
2022 of $19.4 million, or EPS of
$0.70. Net income for the second
quarter of 2022, included an $8.5
million gain on the sale of the Company's Class B common
stock of Visa, Inc., partially offset by a $4.9 million non-cash settlement charge related
to the termination and settlement of the Company's defined benefit
pension plan.
"We are pleased to report strong financial performance for the
second quarter, highlighted by solid double-digit annualized loan
growth, continued inflow of core deposits, net interest margin
expansion, and excellent asset quality. With these favorable
trends, we expect to drive further growth in earnings throughout
the rest of 2022 and beyond," said Paul
Yonamine, Chairman and Chief Executive Officer.
"Statewide Hawaii visitor arrivals are expected to exceed 90% of
pre-pandemic levels in 2022, thanks in part to the gradual return
of higher-spending international travelers. This will bode well for
the state, creating additional opportunities for economic growth,"
said Arnold Martines, President and
Chief Operating Officer.
During the second quarter, CPB was named the top bank in
Hawaii in 2022 by Forbes. CPB
finished ahead of the other local banks based on a survey that
ranked all of the local banks on branch and digital services,
overall customer service and trust as well as financial advice.
"This recognition validates that our digital and branch
strategies are creating positive momentum in the market and is
really a tribute to all of our hardworking employees who serve our
valued customers to the best of their ability every day," Martines
said.
Earnings Highlights
Net interest income for the second quarter of 2022 was
$53.0 million, compared to
$52.1 million in the year-ago quarter
and $50.9 million in the previous
quarter. Net interest margin for the second quarter of 2022 was
3.05%, compared to 3.16% in the year-ago quarter and 2.97% in the
previous quarter. The sequential quarter increase in net interest
income and net interest margin is primarily due to higher average
loan balances and higher average yields earned on loans and
investment securities. These increases were partially offset by
lower net interest income and loan fees on PPP loans. Net interest
income for the second quarter of 2022 included $0.9 million in net interest income and loan
fees on PPP loans, compared to $1.9 million in the previous quarter. Net
deferred fees on PPP loans remaining at June 30, 2022 was
$0.9 million, compared to
$1.7 million at March 31,
2022. Additional information on average balances, interest income
and expenses and yields and rates is presented in Tables 4 and
5.
In the second quarter of 2022, the Company recorded a provision
for credit losses of $1.0 million,
compared to releases of the credit loss reserves of $3.4 million and $3.2
million in the year-ago and previous quarters, respectively.
The provision for credit losses in the second quarter of 2022 was
driven by the increase in our loan portfolio and net
charge-offs.
Other operating income for the second quarter of 2022 totaled
$17.1 million, compared to
$10.5 million in the year-ago quarter
and $9.6 million in the previous
quarter. The increase from the year-ago and previous quarters was
primarily due to the sale of our restricted Class B common stock of
Visa, Inc. The investment was carried at a zero cost basis,
therefore the entire net proceeds from the sale of $8.5 million were recorded as a gain on sale of
investment securities. The increase was partially offset by lower
income from bank-owned life insurance ("BOLI"). The Company
recognized BOLI expense of $1.0 million during second quarter of 2022,
compared to BOLI income of $1.2 million and $0.5 million in the year-ago and previous
quarters, respectively. The lower BOLI income was primarily
attributable to market volatility, and was offset by lower deferred
compensation expense in other operating expenses. Additional
information on other operating income is presented in Table 3.
Other operating expense for the second quarter of 2022 totaled
$45.3 million, compared to
$41.4 million in the year-ago quarter
and $38.2 million in the previous
quarter. The increase in other operating expense from the year-ago
and previous quarters was primarily due to the termination and
settlement of our defined benefit pension plan resulting in a
non-cash settlement charge of $4.9
million (included in other). Additional information on other
operating expense is presented in Table 3.
The efficiency ratio for the second quarter of 2022 was 64.68%,
compared to 66.20% in the year-ago quarter and 63.16% in the
previous quarter.
The effective tax rate for the second quarter of 2022 was 26.0%,
compared to 23.9% in the year-ago quarter and 23.7% in the previous
quarter. The increase in the effective tax rate compared to the
year-ago and previous quarters was primarily due to lower
tax-exempt BOLI income.
Balance Sheet Highlights
Total assets at June 30, 2022 of $7.30 billion increased by $120.7 million, or 1.7% from $7.18 billion at June 30, 2021, and
remained relatively unchanged from $7.30 billion at March 31, 2022.
Total loans, net of deferred fees and costs, at June 30,
2022 of $5.30 billion increased from
$5.08 billion at June 30,
2021, and increased from $5.17 billion at March 31,
2022. The sequential quarter increase in total loans included
growth in commercial mortgage loans of $60.1 million, consumer loans of
$50.5 million, home equity loans
of $21.9 million, construction
of $21.7 million, and
residential mortgage of $16.7 million, offset by declines in PPP
loans of $24.1 million and other
commercial loans of $20.2 million. Loans by geographic
distribution are summarized in Table 6.
Total deposits at June 30, 2022 of $6.62 billion increased from $6.40 billion at June 30, 2021, and
increased from $6.60 billion at
March 31, 2022. Core deposits, which include demand
deposits, savings and money market deposits and time deposits up to
$250,000, totaled $6.16 billion at June 30, 2022, and
increased by $34.6 million from
March 31, 2022. The Company's loan-to-deposit ratio was 80.1%
at June 30, 2022, compared to 78.4% at March 31, 2022.
Core deposit and total deposit balances are summarized in Table
7.
Asset Quality
Nonperforming assets at June 30, 2022 totaled $5.0 million, or 0.07% of total assets, compared
to $6.7 million, or 0.09% of total
assets at June 30, 2021, and $5.3
million, or 0.07% of total assets at March 31, 2022.
Additional information on nonperforming assets, past due and
restructured loans is presented in Table 8.
Net charge-offs in the second quarter of 2022 totaled
$1.0 million, compared to net
charge-offs of $0.8 million in the
year-ago quarter, and net charge-offs of $0.4 million in the previous quarter.
The allowance for credit losses, as a percentage of total loans
at June 30, 2022 was 1.23%, compared to 1.53% at June 30,
2021 and 1.25% at March 31, 2022. Additional information on
net charge-offs and recoveries and the allowance for credit losses
is presented in Tables 9 and 10.
Capital
Total shareholders' equity was $455.1
million at June 30, 2022, compared to $552.8 million and $486.3
million at June 30, 2021 and March 31, 2022,
respectively. The decline in shareholders' equity was primarily due
to an increase in 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.
During the second quarter of 2022, the Company repurchased
174,429 shares of common stock, at a total cost of $4.2 million, or an average cost per share of
$24.18. During the six months ended
June 30, 2022, the Company returned
$25.3 million in capital to its
shareholders through cash dividends and share repurchases.
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 June 30, 2022, the Company's leverage
capital, tier 1 risk-based capital, total risk-based capital, and
common equity tier 1 ratios were 8.6%, 11.6%, 13.9%, and 10.7%,
respectively, compared to 8.5%, 11.9%, 14.2%, and 10.9%,
respectively, at March 31, 2022.
On July 26, 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 September 15, 2022 to shareholders of record at the
close of business on August 31, 2022.
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:
499388). A playback of the call will be available through
August 24, 2022 by dialing 1-866-813-9403 (access code:
673448) 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 June 30, 2022. Central Pacific Bank, its primary
subsidiary, operates 28 branches and 65 ATMs in the state of
Hawaii. For additional information, please visit the Company's
website at http://www.cpb.bank.
Equal Housing Lender
Member FDIC
**********
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
|
|
Six Months
Ended
|
(Dollars in
thousands,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
Jun 30,
|
except for per share
amounts)
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2022
|
|
2021
|
CONDENSED INCOME
STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$ 52,978
|
|
$ 50,935
|
|
$ 53,096
|
|
$ 56,086
|
|
$ 52,061
|
|
$
103,913
|
|
$
101,865
|
Provision (credit) for
credit losses
|
|
989
|
|
(3,195)
|
|
(7,692)
|
|
(2,635)
|
|
(3,443)
|
|
(2,206)
|
|
(4,264)
|
Total other operating
income
|
|
17,138
|
|
9,551
|
|
11,566
|
|
10,253
|
|
10,530
|
|
26,689
|
|
21,241
|
Total other operating
expense
|
|
45,349
|
|
38,205
|
|
42,422
|
|
41,345
|
|
41,433
|
|
83,554
|
|
79,279
|
Income tax
expense
|
|
6,184
|
|
6,038
|
|
7,605
|
|
6,814
|
|
5,887
|
|
12,222
|
|
11,339
|
Net income
|
|
17,594
|
|
19,438
|
|
22,327
|
|
20,815
|
|
18,714
|
|
37,032
|
|
36,752
|
Basic earnings per
common share
|
|
$
0.64
|
|
$
0.70
|
|
$
0.80
|
|
$
0.74
|
|
$
0.66
|
|
$
1.34
|
|
$
1.31
|
Diluted earnings per
common share
|
|
0.64
|
|
0.70
|
|
0.80
|
|
0.74
|
|
0.66
|
|
1.33
|
|
1.29
|
Dividends declared per
common share
|
|
0.26
|
|
0.26
|
|
0.25
|
|
0.24
|
|
0.24
|
|
0.52
|
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE
RATIOS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (ROA) [1]
|
|
0.96 %
|
|
1.06 %
|
|
1.22 %
|
|
1.15 %
|
|
1.06 %
|
|
1.01 %
|
|
1.07 %
|
Return on average
shareholders' equity (ROE) [1]
|
|
14.93
|
|
14.44
|
|
16.05
|
|
14.82
|
|
13.56
|
|
14.67
|
|
13.31
|
Average shareholders'
equity to average assets
|
|
6.45
|
|
7.34
|
|
7.61
|
|
7.79
|
|
7.84
|
|
6.89
|
|
8.01
|
Efficiency ratio
[2]
|
|
64.68
|
|
63.16
|
|
65.61
|
|
62.32
|
|
66.20
|
|
63.98
|
|
64.40
|
Net interest margin
(NIM) [1]
|
|
3.05
|
|
2.97
|
|
3.08
|
|
3.31
|
|
3.16
|
|
3.01
|
|
3.18
|
Dividend payout ratio
[3]
|
|
40.63
|
|
37.14
|
|
31.25
|
|
32.43
|
|
36.36
|
|
39.10
|
|
36.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED AVERAGE
BALANCES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans,
including loans held for sale
|
|
$ 5,221,300
|
|
$ 5,114,260
|
|
$ 5,073,069
|
|
$ 5,022,909
|
|
$ 5,110,820
|
|
$ 5,168,076
|
|
$ 5,095,433
|
Average
interest-earning assets
|
|
6,982,556
|
|
6,932,649
|
|
6,890,829
|
|
6,761,643
|
|
6,606,779
|
|
6,957,918
|
|
6,457,115
|
Average
assets
|
|
7,309,939
|
|
7,341,850
|
|
7,315,325
|
|
7,210,210
|
|
7,039,928
|
|
7,325,042
|
|
6,890,195
|
Average
deposits
|
|
6,626,462
|
|
6,581,593
|
|
6,536,826
|
|
6,424,768
|
|
6,269,516
|
|
6,603,467
|
|
6,114,975
|
Average
interest-bearing liabilities
|
|
4,442,172
|
|
4,429,114
|
|
4,407,612
|
|
4,221,073
|
|
4,253,382
|
|
4,435,678
|
|
4,207,670
|
Average shareholders'
equity
|
|
471,420
|
|
538,601
|
|
556,462
|
|
561,606
|
|
552,102
|
|
504,825
|
|
552,039
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[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 (ie.
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)
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
REGULATORY CAPITAL
RATIOS
|
|
|
|
|
|
|
|
|
|
|
Central Pacific
Financial Corp
|
|
|
|
|
|
|
|
|
|
|
Leverage capital
ratio
|
|
8.6 %
|
|
8.5 %
|
|
8.5 %
|
|
8.5 %
|
|
8.6 %
|
Tier 1 risk-based
capital ratio
|
|
11.6
|
|
11.9
|
|
12.2
|
|
12.2
|
|
12.7
|
Total risk-based
capital ratio
|
|
13.9
|
|
14.2
|
|
14.5
|
|
14.6
|
|
14.9
|
Common equity tier 1
capital ratio
|
|
10.7
|
|
10.9
|
|
11.2
|
|
11.2
|
|
11.6
|
Central Pacific
Bank
|
|
|
|
|
|
|
|
|
|
|
Leverage capital
ratio
|
|
9.0
|
|
9.0
|
|
8.9
|
|
9.0
|
|
9.1
|
Tier 1 risk-based
capital ratio
|
|
12.2
|
|
12.6
|
|
12.8
|
|
13.0
|
|
13.5
|
Total risk-based
capital ratio
|
|
13.5
|
|
13.8
|
|
14.0
|
|
14.3
|
|
14.6
|
Common equity tier 1
capital ratio
|
|
12.2
|
|
12.6
|
|
12.8
|
|
13.0
|
|
13.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
(dollars in thousands,
except for per share amounts)
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
BALANCE
SHEET
|
|
|
|
|
|
|
|
|
|
|
Total loans, net of
deferred fees and costs
|
|
$ 5,301,633
|
|
$ 5,174,837
|
|
$ 5,101,649
|
|
$ 5,045,797
|
|
$ 5,077,318
|
Total
assets
|
|
7,299,178
|
|
7,298,819
|
|
7,419,089
|
|
7,298,231
|
|
7,178,481
|
Total
deposits
|
|
6,622,061
|
|
6,599,031
|
|
6,639,158
|
|
6,515,863
|
|
6,397,159
|
Long-term
debt
|
|
105,738
|
|
105,677
|
|
105,616
|
|
105,556
|
|
105,495
|
Total shareholders'
equity
|
|
455,100
|
|
486,328
|
|
558,219
|
|
555,419
|
|
552,793
|
Total shareholders'
equity to total assets
|
|
6.23 %
|
|
6.66 %
|
|
7.52 %
|
|
7.61 %
|
|
7.70 %
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit
losses (ACL)
|
|
$ 65,211
|
|
$ 64,754
|
|
$ 68,097
|
|
$ 74,587
|
|
$ 77,781
|
Nonaccrual
loans
|
|
4,983
|
|
5,336
|
|
5,881
|
|
7,237
|
|
6,745
|
Non-performing assets
(NPA)
|
|
4,983
|
|
5,336
|
|
5,881
|
|
7,237
|
|
6,745
|
ACL to total
loans
|
|
1.23 %
|
|
1.25 %
|
|
1.33 %
|
|
1.48 %
|
|
1.53 %
|
ACL to core loans
(refer to Table 9)
|
|
1.23 %
|
|
1.26 %
|
|
1.36 %
|
|
1.55 %
|
|
1.68 %
|
ACL to nonaccrual
loans
|
|
1,308.67 %
|
|
1,213.53 %
|
|
1,157.92 %
|
|
1,030.63 %
|
|
1,153.17 %
|
NPA to total
assets
|
|
0.07 %
|
|
0.07 %
|
|
0.08 %
|
|
0.10 %
|
|
0.09 %
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE OF COMMON
STOCK OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
Book value per common
share
|
|
$
16.57
|
|
$
17.63
|
|
$
20.14
|
|
$
19.84
|
|
$
19.59
|
Closing market price
per common share
|
|
21.45
|
|
27.90
|
|
28.17
|
|
25.68
|
|
26.06
|
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Balance
Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
TABLE
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
(Dollars in thousands,
except share data)
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
financial institutions
|
|
$
108,389
|
|
$
83,947
|
|
$
81,506
|
|
$
108,669
|
|
$
116,009
|
Interest-bearing
deposits in other financial institutions
|
|
22,741
|
|
118,183
|
|
247,401
|
|
240,173
|
|
224,469
|
Investment
securities:
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale
debt securities, at fair value
|
|
787,373
|
|
1,199,482
|
|
1,631,699
|
|
1,535,450
|
|
1,407,340
|
Held-to-maturity debt
securities, at amortized cost; fair value of:
$635,565 at June 30,
2022, $329,503 at March 31, 2022, and
none at December 31,
2021, September 30, 2021, and June 30, 2021
|
|
663,365
|
|
329,507
|
|
—
|
|
—
|
|
—
|
Equity securities, at
fair value
|
|
—
|
|
—
|
|
—
|
|
1,593
|
|
1,578
|
Total investment
securities
|
|
1,450,738
|
|
1,528,989
|
|
1,631,699
|
|
1,537,043
|
|
1,408,918
|
Loans held for
sale
|
|
535
|
|
4,677
|
|
3,531
|
|
5,290
|
|
5,361
|
Loans, net of deferred
fees and costs
|
|
5,301,633
|
|
5,174,837
|
|
5,101,649
|
|
5,045,797
|
|
5,077,318
|
Less: allowance for
credit losses
|
|
65,211
|
|
64,754
|
|
68,097
|
|
74,587
|
|
77,781
|
Loans, net of
allowance for credit losses
|
|
5,236,422
|
|
5,110,083
|
|
5,033,552
|
|
4,971,210
|
|
4,999,537
|
Premises and equipment,
net
|
|
88,664
|
|
79,455
|
|
80,354
|
|
80,190
|
|
76,740
|
Accrued interest
receivable
|
|
17,146
|
|
16,423
|
|
16,709
|
|
17,110
|
|
19,014
|
Investment in
unconsolidated entities
|
|
37,341
|
|
31,092
|
|
29,679
|
|
30,397
|
|
31,052
|
Mortgage servicing
rights
|
|
9,369
|
|
9,480
|
|
9,738
|
|
9,976
|
|
10,500
|
Bank-owned life
insurance
|
|
167,202
|
|
167,407
|
|
169,148
|
|
167,961
|
|
167,289
|
Federal Home Loan Bank
("FHLB") stock
|
|
8,943
|
|
8,943
|
|
7,964
|
|
7,952
|
|
8,149
|
Right of use lease
asset
|
|
36,978
|
|
38,435
|
|
39,441
|
|
40,757
|
|
41,890
|
Other assets
|
|
114,710
|
|
101,705
|
|
68,367
|
|
81,503
|
|
69,553
|
Total
assets
|
|
$ 7,299,178
|
|
$ 7,298,819
|
|
$
7,419,089
|
|
$ 7,298,231
|
|
$ 7,178,481
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
|
$ 2,282,967
|
|
$ 2,269,562
|
|
$
2,291,246
|
|
$ 2,195,404
|
|
$ 2,203,806
|
Interest-bearing
demand
|
|
1,444,566
|
|
1,433,284
|
|
1,415,277
|
|
1,372,626
|
|
1,341,280
|
Savings and money
market
|
|
2,214,146
|
|
2,197,647
|
|
2,225,903
|
|
2,296,968
|
|
2,048,945
|
Time
|
|
680,382
|
|
698,538
|
|
706,732
|
|
650,865
|
|
803,128
|
Total
deposits
|
|
6,622,061
|
|
6,599,031
|
|
6,639,158
|
|
6,515,863
|
|
6,397,159
|
Long-term
debt
|
|
105,738
|
|
105,677
|
|
105,616
|
|
105,556
|
|
105,495
|
Lease
liability
|
|
38,037
|
|
39,610
|
|
40,731
|
|
41,933
|
|
43,112
|
Other
liabilities
|
|
78,242
|
|
68,123
|
|
75,317
|
|
79,412
|
|
79,874
|
Total
liabilities
|
|
6,844,078
|
|
6,812,441
|
|
6,860,822
|
|
6,742,764
|
|
6,625,640
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, no
par value, authorized 1,000,000 shares; issued and
outstanding:
none at June 30, 2022,
March 31, 2022, December 31, 2021, September 30, 2021,
and
June 30,
2021
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Common stock, no par
value, authorized 185,000,000 shares; issued and
outstanding:
27,463,562 at June 30,
2022, 27,584,929 at March 31, 2022, 27,714,071 at
December 31, 2021,
27,999,588 at September 30, 2021, and 28,218,860 at June 30,
2021
|
|
417,862
|
|
421,153
|
|
426,091
|
|
436,957
|
|
440,854
|
Additional paid-in
capital
|
|
98,977
|
|
98,270
|
|
98,073
|
|
97,279
|
|
96,182
|
Retained
earnings
|
|
64,693
|
|
54,252
|
|
42,015
|
|
22,916
|
|
10,831
|
Accumulated other
comprehensive (loss) income
|
|
(126,432)
|
|
(87,347)
|
|
(7,960)
|
|
(1,733)
|
|
4,926
|
Total shareholders'
equity
|
|
455,100
|
|
486,328
|
|
558,219
|
|
555,419
|
|
552,793
|
Non-controlling
interest
|
|
—
|
|
50
|
|
48
|
|
48
|
|
48
|
Total
equity
|
|
455,100
|
|
486,378
|
|
558,267
|
|
555,467
|
|
552,841
|
Total liabilities
and equity
|
|
$ 7,299,178
|
|
$ 7,298,819
|
|
$
7,419,089
|
|
$ 7,298,231
|
|
$ 7,178,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
Consolidated
Statements of Income
|
(Unaudited)
|
|
|
|
TABLE
3
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months
Ended
|
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
June 30,
|
(Dollars in thousands, except per share data)
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2022
|
|
2021
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on
loans
|
|
$
46,963
|
|
$
44,949
|
|
$
47,576
|
|
$
51,104
|
|
$
49,024
|
|
$
91,912
|
|
$
95,098
|
Interest and dividends
on investment securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable investment
securities
|
|
7,200
|
|
7,134
|
|
6,667
|
|
6,210
|
|
4,447
|
|
14,334
|
|
9,553
|
Tax-exempt investment
securities
|
|
642
|
|
651
|
|
642
|
|
470
|
|
346
|
|
1,293
|
|
860
|
Dividend income on
investment securities
|
|
—
|
|
21
|
|
21
|
|
18
|
|
18
|
|
21
|
|
36
|
Interest on deposits
in other financial institutions
|
|
191
|
|
72
|
|
86
|
|
105
|
|
61
|
|
263
|
|
71
|
Dividend income on
FHLB stock
|
|
68
|
|
59
|
|
61
|
|
62
|
|
63
|
|
127
|
|
122
|
Total interest
income
|
|
55,064
|
|
52,886
|
|
55,053
|
|
57,969
|
|
53,959
|
|
107,950
|
|
105,740
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on
deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
|
|
144
|
|
112
|
|
104
|
|
101
|
|
93
|
|
256
|
|
179
|
Savings and money
market
|
|
317
|
|
329
|
|
352
|
|
332
|
|
282
|
|
646
|
|
556
|
Time
|
|
490
|
|
469
|
|
478
|
|
428
|
|
498
|
|
959
|
|
1,086
|
Interest on short-term
borrowings
|
|
2
|
|
—
|
|
—
|
|
—
|
|
—
|
|
2
|
|
2
|
Interest on long-term
debt
|
|
1,133
|
|
1,041
|
|
1,023
|
|
1,022
|
|
1,025
|
|
2,174
|
|
2,052
|
Total interest
expense
|
|
2,086
|
|
1,951
|
|
1,957
|
|
1,883
|
|
1,898
|
|
4,037
|
|
3,875
|
Net interest
income
|
|
52,978
|
|
50,935
|
|
53,096
|
|
56,086
|
|
52,061
|
|
103,913
|
|
101,865
|
Provision (credit) for
credit losses
|
|
989
|
|
(3,195)
|
|
(7,692)
|
|
(2,635)
|
|
(3,443)
|
|
(2,206)
|
|
(4,264)
|
Net interest income
after provision (credit)
for credit losses
|
|
51,989
|
|
54,130
|
|
60,788
|
|
58,721
|
|
55,504
|
|
106,119
|
|
106,129
|
Other operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking
income
|
|
1,140
|
|
1,172
|
|
1,902
|
|
1,327
|
|
1,533
|
|
2,312
|
|
4,503
|
Service charges on
deposit accounts
|
|
2,026
|
|
1,861
|
|
1,800
|
|
1,637
|
|
1,443
|
|
3,887
|
|
2,921
|
Other service charges
and fees
|
|
4,610
|
|
4,488
|
|
5,016
|
|
4,942
|
|
4,619
|
|
9,098
|
|
8,409
|
Income from fiduciary
activities
|
|
1,188
|
|
1,154
|
|
1,283
|
|
1,292
|
|
1,269
|
|
2,342
|
|
2,500
|
Net gain on sales of
investment securities
|
|
8,506
|
|
—
|
|
—
|
|
100
|
|
50
|
|
8,506
|
|
50
|
Income from bank-owned
life insurance
|
|
(1,028)
|
|
539
|
|
946
|
|
540
|
|
1,210
|
|
(489)
|
|
2,007
|
Other
|
|
696
|
|
337
|
|
619
|
|
415
|
|
406
|
|
1,033
|
|
851
|
Total other operating
income
|
|
17,138
|
|
9,551
|
|
11,566
|
|
10,253
|
|
10,530
|
|
26,689
|
|
21,241
|
Other operating
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
22,369
|
|
20,942
|
|
23,030
|
|
23,566
|
|
23,790
|
|
43,311
|
|
43,617
|
Net
occupancy
|
|
4,448
|
|
3,774
|
|
4,129
|
|
4,185
|
|
4,055
|
|
8,222
|
|
7,819
|
Equipment
|
|
1,075
|
|
1,082
|
|
1,207
|
|
1,089
|
|
1,048
|
|
2,157
|
|
2,048
|
Communication
|
|
744
|
|
806
|
|
922
|
|
824
|
|
756
|
|
1,550
|
|
1,525
|
Legal and professional
services
|
|
2,916
|
|
2,626
|
|
2,928
|
|
2,575
|
|
2,572
|
|
5,542
|
|
4,949
|
Computer
software
|
|
3,624
|
|
3,082
|
|
3,125
|
|
2,998
|
|
3,398
|
|
6,706
|
|
7,181
|
Advertising
|
|
1,150
|
|
1,150
|
|
1,179
|
|
1,329
|
|
1,329
|
|
2,300
|
|
2,987
|
Other
|
|
9,023
|
|
4,743
|
|
5,902
|
|
4,779
|
|
4,485
|
|
13,766
|
|
9,153
|
Total other operating
expense
|
|
45,349
|
|
38,205
|
|
42,422
|
|
41,345
|
|
41,433
|
|
83,554
|
|
79,279
|
Income before income
taxes
|
|
23,778
|
|
25,476
|
|
29,932
|
|
27,629
|
|
24,601
|
|
49,254
|
|
48,091
|
Income tax
expense
|
|
6,184
|
|
6,038
|
|
7,605
|
|
6,814
|
|
5,887
|
|
12,222
|
|
11,339
|
Net income
|
|
$
17,594
|
|
$
19,438
|
|
$
22,327
|
|
$
20,815
|
|
$
18,714
|
|
$
37,032
|
|
$
36,752
|
Per common share
data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
$
0.64
|
|
$
0.70
|
|
$
0.80
|
|
$
0.74
|
|
$
0.66
|
|
$
1.34
|
|
$
1.31
|
Diluted earnings per
share
|
|
0.64
|
|
0.70
|
|
0.80
|
|
0.74
|
|
0.66
|
|
1.33
|
|
1.29
|
Cash dividends
declared
|
|
0.26
|
|
0.26
|
|
0.25
|
|
0.24
|
|
0.24
|
|
0.52
|
|
0.47
|
Basic weighted average
shares outstanding
|
|
27,516,284
|
|
27,591,390
|
|
27,769,651
|
|
27,967,089
|
|
28,173,710
|
|
27,553,629
|
|
28,141,360
|
Diluted weighted
average shares outstanding
|
|
27,676,619
|
|
27,874,924
|
|
28,045,826
|
|
28,175,953
|
|
28,456,624
|
|
27,759,187
|
|
28,407,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
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
|
|
$
106,083
|
|
0.72 %
|
|
$ 191
|
|
$
157,861
|
|
0.18 %
|
|
$ 72
|
|
$
222,934
|
|
0.11 %
|
|
$ 61
|
Investment securities,
excluding valuation
allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
1,532,282
|
|
1.88
|
|
7,200
|
|
1,535,039
|
|
1.86
|
|
7,155
|
|
1,172,183
|
|
1.52
|
|
4,465
|
Tax-exempt
[1]
|
|
113,934
|
|
2.85
|
|
813
|
|
117,493
|
|
2.80
|
|
824
|
|
92,702
|
|
1.89
|
|
438
|
Total investment
securities
|
|
1,646,216
|
|
1.95
|
|
8,013
|
|
1,652,532
|
|
1.93
|
|
7,979
|
|
1,264,885
|
|
1.55
|
|
4,903
|
Loans, including loans
held for sale
|
|
5,221,300
|
|
3.60
|
|
46,963
|
|
5,114,260
|
|
3.54
|
|
44,949
|
|
5,110,820
|
|
3.84
|
|
49,024
|
Federal Home Loan Bank
stock
|
|
8,957
|
|
3.02
|
|
68
|
|
7,996
|
|
2.98
|
|
59
|
|
8,140
|
|
3.11
|
|
63
|
Total interest-earning
assets
|
|
6,982,556
|
|
3.17
|
|
55,235
|
|
6,932,649
|
|
3.08
|
|
53,059
|
|
6,606,779
|
|
3.28
|
|
54,051
|
Noninterest-earning
assets
|
|
327,383
|
|
|
|
|
|
409,201
|
|
|
|
|
|
433,149
|
|
|
|
|
Total
assets
|
|
$
7,309,939
|
|
|
|
|
|
$
7,341,850
|
|
|
|
|
|
$
7,039,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
1,435,088
|
|
0.04 %
|
|
$ 144
|
|
$
1,425,303
|
|
0.03 %
|
|
$ 112
|
|
$
1,269,676
|
|
0.03 %
|
|
$ 93
|
Savings and money
market deposits
|
|
2,204,934
|
|
0.06
|
|
317
|
|
2,212,426
|
|
0.06
|
|
329
|
|
2,028,583
|
|
0.06
|
|
282
|
Time deposits up to
$250,000
|
|
217,605
|
|
0.27
|
|
148
|
|
223,661
|
|
0.28
|
|
156
|
|
231,922
|
|
0.34
|
|
196
|
Time deposits over
$250,000
|
|
478,483
|
|
0.29
|
|
342
|
|
462,087
|
|
0.28
|
|
313
|
|
617,745
|
|
0.20
|
|
302
|
Total interest-bearing
deposits
|
|
4,336,110
|
|
0.09
|
|
951
|
|
4,323,477
|
|
0.09
|
|
910
|
|
4,147,926
|
|
0.08
|
|
873
|
Federal Home Loan Bank
advances and other
short-term
borrowings
|
|
363
|
|
1.84
|
|
2
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Long-term
debt
|
|
105,699
|
|
4.30
|
|
1,133
|
|
105,637
|
|
4.00
|
|
1,041
|
|
105,456
|
|
3.90
|
|
1,025
|
Total interest-bearing
liabilities
|
|
4,442,172
|
|
0.19
|
|
2,086
|
|
4,429,114
|
|
0.18
|
|
1,951
|
|
4,253,382
|
|
0.18
|
|
1,898
|
Noninterest-bearing
deposits
|
|
2,290,352
|
|
|
|
|
|
2,258,116
|
|
|
|
|
|
2,121,590
|
|
|
|
|
Other
liabilities
|
|
105,979
|
|
|
|
|
|
115,971
|
|
|
|
|
|
112,852
|
|
|
|
|
Total
liabilities
|
|
6,838,503
|
|
|
|
|
|
6,803,201
|
|
|
|
|
|
6,487,824
|
|
|
|
|
Shareholders'
equity
|
|
471,420
|
|
|
|
|
|
538,601
|
|
|
|
|
|
552,102
|
|
|
|
|
Non-controlling
interest
|
|
16
|
|
|
|
|
|
48
|
|
|
|
|
|
2
|
|
|
|
|
Total
equity
|
|
471,436
|
|
|
|
|
|
538,649
|
|
|
|
|
|
552,104
|
|
|
|
|
Total
liabilities and equity
|
|
$
7,309,939
|
|
|
|
|
|
$
7,341,850
|
|
|
|
|
|
$
7,039,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
|
$ 53,149
|
|
|
|
|
|
$ 51,108
|
|
|
|
|
|
$ 52,153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
|
|
|
2.98 %
|
|
|
|
|
|
2.90 %
|
|
|
|
|
|
3.10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
|
3.05 %
|
|
|
|
|
|
2.97 %
|
|
|
|
|
|
3.16 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[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
Average Balances,
Interest Income & Expense, Yields and Rates (Taxable
Equivalent)
|
(Unaudited)
|
|
|
|
TABLE
5
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
2022
|
|
June 30,
2021
|
|
|
Average
|
|
Average
|
|
|
|
Average
|
|
Average
|
|
|
(Dollars in thousands)
|
|
Balance
|
|
Yield/Rate
|
|
Interest
|
|
Balance
|
|
Yield/Rate
|
|
Interest
|
ASSETS
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits in other financial
institutions
|
|
$ 131,829
|
|
0.40 %
|
|
$
263
|
|
$ 133,684
|
|
0.11 %
|
|
$
71
|
Investment securities,
excluding valuation
allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
1,533,570
|
|
1.87
|
|
14,355
|
|
1,126,978
|
|
1.70
|
|
9,589
|
Tax-exempt
[1]
|
|
115,964
|
|
2.82
|
|
1,637
|
|
93,181
|
|
2.34
|
|
1,089
|
Total investment
securities
|
|
1,649,534
|
|
1.94
|
|
15,992
|
|
1,220,159
|
|
1.75
|
|
10,678
|
Loans, including loans
held for sale
|
|
5,168,076
|
|
3.58
|
|
91,912
|
|
5,095,433
|
|
3.75
|
|
95,098
|
Federal Home Loan Bank
stock
|
|
8,479
|
|
3.00
|
|
127
|
|
7,839
|
|
3.12
|
|
122
|
Total interest-earning
assets
|
|
6,957,918
|
|
3.13
|
|
108,294
|
|
6,457,115
|
|
3.30
|
|
105,969
|
Noninterest-earning
assets
|
|
367,124
|
|
|
|
|
|
433,080
|
|
|
|
|
Total
assets
|
|
$
7,325,042
|
|
|
|
|
|
$
6,890,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
1,430,222
|
|
0.04 %
|
|
$
256
|
|
$
1,228,548
|
|
0.03 %
|
|
$
179
|
Savings and money
market deposits
|
|
2,208,659
|
|
0.06
|
|
646
|
|
2,000,845
|
|
0.06
|
|
556
|
Time deposits up to
$250,000
|
|
220,617
|
|
0.28
|
|
303
|
|
234,361
|
|
0.38
|
|
437
|
Time deposits over
$250,000
|
|
470,330
|
|
0.28
|
|
656
|
|
637,266
|
|
0.21
|
|
649
|
Total interest-bearing
deposits
|
|
4,329,828
|
|
0.09
|
|
1,861
|
|
4,101,020
|
|
0.09
|
|
1,821
|
Federal Home Loan Bank
advances and other
short-term borrowings
|
|
182
|
|
1.84
|
|
2
|
|
1,221
|
|
0.30
|
|
2
|
Long-term
debt
|
|
105,668
|
|
4.15
|
|
2,174
|
|
105,429
|
|
3.93
|
|
2,052
|
Total interest-bearing
liabilities
|
|
4,435,678
|
|
0.18
|
|
4,037
|
|
4,207,670
|
|
0.19
|
|
3,875
|
Noninterest-bearing
deposits
|
|
2,273,639
|
|
|
|
|
|
2,013,955
|
|
|
|
|
Other
liabilities
|
|
110,868
|
|
|
|
|
|
116,529
|
|
|
|
|
Total
liabilities
|
|
6,820,185
|
|
|
|
|
|
6,338,154
|
|
|
|
|
Shareholders'
equity
|
|
504,825
|
|
|
|
|
|
552,039
|
|
|
|
|
Non-controlling
interest
|
|
32
|
|
|
|
|
|
2
|
|
|
|
|
Total
equity
|
|
504,857
|
|
|
|
|
|
552,041
|
|
|
|
|
Total
liabilities and equity
|
|
$
7,325,042
|
|
|
|
|
|
$
6,890,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
|
$ 104,257
|
|
|
|
|
|
$ 102,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread
|
|
|
|
2.95 %
|
|
|
|
|
|
3.11 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin
|
|
|
|
3.01 %
|
|
|
|
|
|
3.18 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[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
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
(Dollars in
thousands)
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
HAWAII:
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural:
|
|
|
|
|
|
|
|
|
|
|
SBA Paycheck
Protection Program
|
|
$
19,469
|
|
$
43,380
|
|
$
87,459
|
|
$
198,315
|
|
$
395,352
|
Other
|
|
367,676
|
|
407,559
|
|
422,388
|
|
404,751
|
|
389,341
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
134,103
|
|
122,329
|
|
122,867
|
|
128,908
|
|
133,457
|
Residential
mortgage
|
|
1,890,783
|
|
1,874,048
|
|
1,875,980
|
|
1,748,729
|
|
1,711,801
|
Home equity
|
|
698,209
|
|
676,326
|
|
637,249
|
|
618,951
|
|
583,430
|
Commercial
mortgage
|
|
994,405
|
|
927,241
|
|
922,146
|
|
915,746
|
|
926,006
|
Consumer
|
|
341,213
|
|
337,188
|
|
333,843
|
|
331,987
|
|
328,332
|
Total loans, net of
deferred fees and costs
|
|
4,445,858
|
|
4,388,071
|
|
4,401,932
|
|
4,347,387
|
|
4,467,719
|
Allowance for credit
losses
|
|
(51,374)
|
|
(51,521)
|
|
(55,808)
|
|
(62,126)
|
|
(67,773)
|
Loans, net of
allowance for credit losses
|
|
$
4,394,484
|
|
$ 4,336,550
|
|
$ 4,346,124
|
|
$ 4,285,261
|
|
$ 4,399,946
|
|
|
|
|
|
|
|
|
|
|
|
U.S. MAINLAND:
[1]
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural:
|
|
|
|
|
|
|
|
|
|
|
SBA Paycheck
Protection Program
|
|
$
712
|
|
$
851
|
|
$
3,868
|
|
$
20,356
|
|
$
39,258
|
Other
|
|
156,567
|
|
136,857
|
|
107,733
|
|
114,122
|
|
96,884
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
10,935
|
|
988
|
|
—
|
|
—
|
|
—
|
Commercial
mortgage
|
|
309,230
|
|
316,258
|
|
298,058
|
|
292,671
|
|
260,424
|
Consumer
|
|
378,331
|
|
331,812
|
|
290,058
|
|
271,261
|
|
213,033
|
Total loans, net of
deferred fees and costs
|
|
855,775
|
|
786,766
|
|
699,717
|
|
698,410
|
|
609,599
|
Allowance for credit
losses
|
|
(13,837)
|
|
(13,233)
|
|
(12,289)
|
|
(12,461)
|
|
(10,008)
|
Loans, net of
allowance for credit losses
|
|
$
841,938
|
|
$
773,533
|
|
$
687,428
|
|
$
685,949
|
|
$
599,591
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL:
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural:
|
|
|
|
|
|
|
|
|
|
|
SBA Paycheck
Protection Program
|
|
$
20,181
|
|
$
44,231
|
|
$
91,327
|
|
$
218,671
|
|
$
434,610
|
Other
|
|
524,243
|
|
544,416
|
|
530,121
|
|
518,873
|
|
486,225
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
145,038
|
|
123,317
|
|
122,867
|
|
128,908
|
|
133,457
|
Residential
mortgage
|
|
1,890,783
|
|
1,874,048
|
|
1,875,980
|
|
1,748,729
|
|
1,711,801
|
Home equity
|
|
698,209
|
|
676,326
|
|
637,249
|
|
618,951
|
|
583,430
|
Commercial
mortgage
|
|
1,303,635
|
|
1,243,499
|
|
1,220,204
|
|
1,208,417
|
|
1,186,430
|
Consumer
|
|
719,544
|
|
669,000
|
|
623,901
|
|
603,248
|
|
541,365
|
Total loans, net of
deferred fees and costs
|
|
5,301,633
|
|
5,174,837
|
|
5,101,649
|
|
5,045,797
|
|
5,077,318
|
Allowance for credit
losses
|
|
(65,211)
|
|
(64,754)
|
|
(68,097)
|
|
(74,587)
|
|
(77,781)
|
Loans, net of
allowance for credit losses
|
|
$
5,236,422
|
|
$ 5,110,083
|
|
$ 5,033,552
|
|
$ 4,971,210
|
|
$ 4,999,537
|
|
|
|
|
|
|
|
|
|
|
|
[1] U.S. Mainland
includes territories of the United States.
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
Deposits
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
TABLE
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
(Dollars in
thousands)
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
Noninterest-bearing
demand
|
|
$
2,282,967
|
|
$
2,269,562
|
|
$
2,291,246
|
|
$
2,195,404
|
|
$
2,203,806
|
Interest-bearing
demand
|
|
1,444,566
|
|
1,433,284
|
|
1,415,277
|
|
1,372,626
|
|
1,341,280
|
Savings and money
market
|
|
2,214,146
|
|
2,197,647
|
|
2,225,903
|
|
2,296,968
|
|
2,048,945
|
Time deposits less than
$100,000
|
|
129,103
|
|
132,712
|
|
136,584
|
|
139,358
|
|
141,498
|
Other time deposits
$100,000 to $250,000
|
|
84,840
|
|
87,838
|
|
88,873
|
|
87,491
|
|
89,710
|
Core
deposits
|
|
6,155,622
|
|
6,121,043
|
|
6,157,883
|
|
6,091,847
|
|
5,825,239
|
|
|
|
|
|
|
|
|
|
|
|
Government time
deposits
|
|
165,000
|
|
188,000
|
|
214,950
|
|
238,950
|
|
403,755
|
Other time deposits
greater than $250,000
|
|
301,439
|
|
289,988
|
|
266,325
|
|
185,066
|
|
168,165
|
Total time deposits
greater than $250,000
|
|
466,439
|
|
477,988
|
|
481,275
|
|
424,016
|
|
571,920
|
Total
deposits
|
|
$
6,622,061
|
|
$
6,599,031
|
|
$
6,639,158
|
|
$
6,515,863
|
|
$
6,397,159
|
|
|
|
|
|
|
|
|
|
|
|
CENTRAL PACIFIC
FINANCIAL CORP. AND SUBSIDIARIES
Nonperforming
Assets, Past Due and Restructured Loans
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
TABLE
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
(Dollars in
thousands)
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
Nonaccrual loans:
[1]
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural - Other
|
|
$
333
|
|
$
293
|
|
$
183
|
|
$
689
|
|
$
699
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
3,490
|
|
3,804
|
|
4,623
|
|
5,351
|
|
5,280
|
Home equity
|
|
592
|
|
820
|
|
786
|
|
880
|
|
434
|
Consumer
|
|
568
|
|
419
|
|
289
|
|
317
|
|
332
|
Total nonaccrual
loans
|
|
4,983
|
|
5,336
|
|
5,881
|
|
7,237
|
|
6,745
|
Other real estate owned
("OREO"):
|
|
|
|
|
|
|
|
|
|
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total OREO
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Total nonperforming
assets ("NPAs")
|
|
4,983
|
|
5,336
|
|
5,881
|
|
7,237
|
|
6,745
|
Loans delinquent for 90
days or more still accruing interest: [1]
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural - Other
|
|
309
|
|
592
|
|
945
|
|
—
|
|
29
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
—
|
|
111
|
|
—
|
|
444
|
|
1,438
|
Home equity
|
|
—
|
|
—
|
|
44
|
|
—
|
|
—
|
Consumer
|
|
842
|
|
621
|
|
374
|
|
166
|
|
100
|
Total loans delinquent
for 90 days or more still accruing
interest
|
|
1,151
|
|
1,324
|
|
1,363
|
|
610
|
|
1,567
|
Restructured loans
still accruing interest: [1]
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural - Other
|
|
—
|
|
—
|
|
—
|
|
12
|
|
26
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
2,006
|
|
2,751
|
|
3,768
|
|
4,458
|
|
4,258
|
Commercial
mortgage
|
|
965
|
|
1,004
|
|
1,043
|
|
1,577
|
|
1,636
|
Consumer
|
|
76
|
|
83
|
|
92
|
|
99
|
|
132
|
Total restructured
loans still accruing interest
|
|
3,047
|
|
3,838
|
|
4,903
|
|
6,146
|
|
6,052
|
Total NPAs and loans
delinquent for 90 days or more and
restructured
loans still accruing interest
|
|
$
9,181
|
|
$
10,498
|
|
$
12,147
|
|
$
13,993
|
|
$
14,364
|
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
as a percentage of total loans
|
|
0.09 %
|
|
0.10 %
|
|
0.12 %
|
|
0.14 %
|
|
0.13 %
|
Total NPAs as a
percentage of total loans and OREO
|
|
0.09 %
|
|
0.10 %
|
|
0.12 %
|
|
0.14 %
|
|
0.13 %
|
Total NPAs and loans
delinquent for 90 days or more still
accruing interest
as a percentage of total
loans and
OREO
|
|
0.12 %
|
|
0.13 %
|
|
0.14 %
|
|
0.16 %
|
|
0.16 %
|
Total NPAs, loans
delinquent for 90 days or more and
restructured loans
still accruing interest as a
percentage of total
loans and OREO
|
|
0.17 %
|
|
0.20 %
|
|
0.24 %
|
|
0.28 %
|
|
0.28 %
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-quarter
changes in NPAs:
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
quarter
|
|
$
5,336
|
|
$
5,881
|
|
$
7,237
|
|
$
6,745
|
|
$
7,194
|
Additions
|
|
1,881
|
|
1,659
|
|
1,375
|
|
1,951
|
|
1,879
|
Reductions:
|
|
|
|
|
|
|
|
|
|
|
Payments
|
|
(285)
|
|
(1,598)
|
|
(933)
|
|
(767)
|
|
(1,120)
|
Return to accrual
status
|
|
(979)
|
|
(38)
|
|
(1,034)
|
|
(141)
|
|
(84)
|
Charge-offs, valuation
and other adjustments
|
|
(970)
|
|
(568)
|
|
(764)
|
|
(551)
|
|
(1,124)
|
Total
reductions
|
|
(2,234)
|
|
(2,204)
|
|
(2,731)
|
|
(1,459)
|
|
(2,328)
|
Balance at end of
quarter
|
|
$
4,983
|
|
$
5,336
|
|
$
5,881
|
|
$
7,237
|
|
$
6,745
|
|
|
|
|
|
|
|
|
|
|
|
[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
9
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months
Ended
|
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
|
June 30,
|
(Dollars in
thousands)
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2022
|
|
2021
|
Allowance for credit
losses ("ACL"):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL at beginning of
period
|
|
$ 64,754
|
|
$ 68,097
|
|
$ 74,587
|
|
$ 77,781
|
|
$ 81,553
|
|
$ 68,097
|
|
$ 83,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Credit) provision for
credit losses on loans [1] [2]
|
|
1,456
|
|
(2,931)
|
|
(7,417)
|
|
(2,969)
|
|
(2,963)
|
|
(1,475)
|
|
(3,937)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural - Other
|
|
487
|
|
254
|
|
379
|
|
334
|
|
401
|
|
741
|
|
1,010
|
Consumer
|
|
1,390
|
|
1,216
|
|
952
|
|
829
|
|
1,523
|
|
2,606
|
|
2,621
|
Total
charge-offs
|
|
1,877
|
|
1,470
|
|
1,331
|
|
1,163
|
|
1,924
|
|
3,347
|
|
3,631
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, financial
and agricultural - Other
|
|
215
|
|
350
|
|
358
|
|
281
|
|
276
|
|
565
|
|
365
|
Real
estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction
|
|
62
|
|
—
|
|
1,159
|
|
—
|
|
—
|
|
62
|
|
—
|
Residential
mortgage
|
|
36
|
|
112
|
|
13
|
|
53
|
|
186
|
|
148
|
|
292
|
Home equity
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9
|
Commercial
mortgage
|
|
—
|
|
—
|
|
—
|
|
—
|
|
65
|
|
—
|
|
73
|
Consumer
|
|
565
|
|
596
|
|
728
|
|
604
|
|
588
|
|
1,161
|
|
1,341
|
Total
recoveries
|
|
878
|
|
1,058
|
|
2,258
|
|
938
|
|
1,115
|
|
1,936
|
|
2,080
|
Net charge-offs
(recoveries)
|
|
999
|
|
412
|
|
(927)
|
|
225
|
|
809
|
|
1,411
|
|
1,551
|
ACL at end of
period
|
|
$ 65,211
|
|
$ 64,754
|
|
$ 68,097
|
|
$ 74,587
|
|
$ 77,781
|
|
$ 65,211
|
|
$ 77,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average loans, net of
deferred fees and costs
|
|
$ 5,221,300
|
|
$ 5,114,260
|
|
$ 5,073,069
|
|
$ 5,022,909
|
|
$ 5,110,820
|
|
$ 5,168,076
|
|
$ 5,095,433
|
Annualized ratio of net
charge-offs to average loans
|
|
0.08 %
|
|
0.03 %
|
|
(0.07) %
|
|
0.02 %
|
|
0.06 %
|
|
0.05 %
|
|
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
10
|
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
Sep 30,
|
|
Jun 30,
|
(Dollars in
thousands)
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
ACL
|
|
$
65,211
|
|
$
64,754
|
|
$
68,097
|
|
$
74,587
|
|
$
77,781
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
5,301,633
|
|
$
5,174,837
|
|
$
5,101,649
|
|
$
5,045,797
|
|
$
5,077,318
|
Less: PPP
loans
|
|
20,181
|
|
44,231
|
|
91,327
|
|
218,671
|
|
434,610
|
Core loans (or total
loans, excluding PPP loans)
|
|
$
5,281,452
|
|
$
5,130,606
|
|
5,010,322
|
|
4,827,126
|
|
$
4,642,708
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of ACL to total
loans
|
|
1.23 %
|
|
1.25 %
|
|
1.33 %
|
|
1.48 %
|
|
1.53 %
|
Ratio of ACL to core
loans
|
|
1.23 %
|
|
1.26 %
|
|
1.36 %
|
|
1.55 %
|
|
1.68 %
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/central-pacific-financial-reports-second-quarter-earnings-of-17-6-million-301593901.html
SOURCE Central Pacific Financial Corp.