CPF Central Pacific Financial Corp

Highlights include:

• Net income of $15.8 million, or $0.58 per diluted share, an increase of 22.2% compared to the $12.9 million earned in the previous quarter
• Net interest margin of 2.97% increased by 14 bps from 2.83% in the previous quarter
• Total loans of $5.38 billion decreased by $17.8 million from the previous quarter
• Core deposits of $5.91 billion increased by $16.7 million from the previous quarter. Total deposits of $6.58 billion decreased by $36.4 million from the previous quarter, which included a decrease in government time deposits of $41.6 million.
• Net charge-offs of $3.8 million decreased by $0.8 million from the previous quarter
• Total risk-based capital and common equity tier 1 ratios of 15.1% and 11.9%, respectively
• The CPF Board of Directors approved a quarterly cash dividend of $0.26 per share

Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), today reported net income of $15.8 million, or fully diluted earnings per share ("EPS") of $0.58 for the second quarter of 2024, compared to net income of $12.9 million, or EPS of $0.48 in the previous quarter and net income of $14.5 million, or EPS of $0.53 in the year-ago quarter.

"We continue to navigate the current environment and positive trends are developing. We are pleased with our strong second quarter financial results, which included the highest net income in our last five quarters," said Arnold Martines, Chairman, President and Chief Executive Officer. "Key contributors included NIM expansion of 14 bps, core deposit growth and improvement in net charge-offs. At the same time, we maintained solid liquidity and grew our capital levels further."

"We were recently recognized by Forbes Magazine as one of America’s Best Banks as well as the Best-In-State Bank for Hawaii in 2024. We are humbled by this recognition, proud of our employees, and thankful to our customers for the trust they place in Central Pacific Bank," Martines said.

The Board of Directors has also appointed Mr. Martines as Chairman of the Board of the Company and the Bank. Mr. Martines replaces Ms. A. Catherine Ngo who continues to serve as a member of the Board of Directors of the Company and the Bank.

Earnings Highlights

Net interest income was $51.9 million for the second quarter of 2024, which increased by $1.7 million, or 3.5% from the previous quarter, and decreased by $0.8 million, or 1.5% from the year-ago quarter. Net interest margin ("NIM") was 2.97% for the second quarter of 2024, an increase of 14 basis points ("bp" or "bps") from the previous quarter and 1 bp from the year-ago quarter. The sequential quarter increase in net interest income and NIM was primarily due to higher average yields earned on investment securities and loans, while interest-bearing liability costs remained relatively stable. The higher average yield earned on investment securities includes $0.9 million in income from an interest rate swap that became effective on March 31, 2024.

The Company recorded a provision for credit losses of $2.2 million in the second quarter of 2024, compared to a provision of $3.9 million in the previous quarter and a provision of $4.3 million in the year-ago quarter. The provision in the second quarter consisted of a provision for credit losses on loans of $2.4 million and a credit to the provision for off-balance sheet exposures of $0.2 million.

Other operating income totaled $12.1 million for the second quarter of 2024, compared to $11.2 million in the previous quarter and $10.4 million in the year-ago quarter. The higher other operating income was primarily due to higher mortgage banking income of $0.4 million and higher investment services fees of $0.6 million (included in other service charges and fees).

Other operating expense totaled $41.2 million for the second quarter of 2024, compared to $40.6 million in the previous quarter and $39.9 million in the year-ago quarter. The higher other operating expense was primarily due to higher salaries and employee benefits.

The efficiency ratio was 64.26% for the second quarter of 2024, compared to 66.05% in the previous quarter and 63.17% in the year-ago quarter.

The effective tax rate was 23.4% for the second quarter of 2024, compared to 23.5% in the previous quarter and 23.6% in the year-ago quarter.

Balance Sheet Highlights

Total assets of $7.39 billion at June 30, 2024 decreased by $23.0 million, or 0.3% from $7.41 billion at March 31, 2024, and decreased by $180.6 million, or 2.4% from $7.57 billion at June 30, 2023. The Company had $298.9 million in cash on its balance sheet and $2.56 billion in total other liquidity sources, including available borrowing capacity and unpledged investment securities at June 30, 2024. Total available sources of liquidity as a percentage of uninsured and uncollateralized deposits was 121% at June 30, 2024, compared to 118% at March 31, 2024 and 128% at June 30, 2023. During the second quarter of 2024, excess balance sheet liquidity was used to pay off $41.6 million in higher cost government time deposits.

Total loans, net of deferred fees and costs, of $5.38 billion at June 30, 2024 decreased by $17.8 million, or 0.3% from $5.40 billion at March 31, 2024, and decreased by $137.0 million, or 2.5% from $5.52 billion at June 30, 2023. Average yields earned on loans during the second quarter of 2024 was 4.80%, compared to 4.67% in the previous quarter and 4.37% in the year-ago quarter.

Total deposits of $6.58 billion at June 30, 2024 decreased by $36.4 million or 0.5% from $6.62 billion at March 31, 2024, and decreased by $223.3 million, or 3.3% from $6.81 billion at June 30, 2023. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $5.91 billion at June 30, 2024, and increased by $16.7 million, or 0.3% from $5.90 billion at March 31, 2024. Average rates paid on total deposits during the second quarter of 2024 was 1.33%, compared to 1.32% in the previous quarter and 0.84% in the year-ago quarter. Approximately 64%, 65% and 65% of the Company's total deposits were FDIC-insured or fully collateralized at June 30, 2024, March 31, 2024 and June 30, 2023, respectively.

Asset Quality

Nonperforming assets totaled $10.3 million, or 0.14% of total assets at June 30, 2024, compared to $10.1 million, or 0.14% of total assets at March 31, 2024 and $11.1 million, or 0.15% of total assets at June 30, 2023.

Net charge-offs totaled $3.8 million in the second quarter of 2024, compared to net charge-offs of $4.5 million in the previous quarter, and net charge-offs of $3.4 million in the year-ago quarter. Annualized net charge-offs as a percentage of average loans was 0.28%, 0.34% and 0.24% during the three months ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively.

The allowance for credit losses, as a percentage of total loans was 1.16% at June 30, 2024, compared to 1.18% at March 31, 2024, and 1.16% at June 30, 2023.

Capital

Total shareholders' equity was $518.6 million at June 30, 2024, compared to $507.2 million and $476.3 million at March 31, 2024 and June 30, 2023, respectively.

During the second quarter of 2024, the Company did not repurchase any shares of common stock. As of June 30, 2024, $19.1 million in share repurchase authorization remained available under the Company's share repurchase program.

The Company's leverage, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 capital ratios were 9.3%, 12.8%, 15.1%, and 11.9%, respectively, at June 30, 2024, compared to 9.0%, 12.6%, 14.8%, and 11.6%, respectively, at March 31, 2024.

On July 30, 2024, 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 16, 2024 to shareholders of record at the close of business on August 30, 2024.

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 1-800-715-9871 (conference ID: 9836028). A playback of the call will be available through August 30, 2024 by dialing 1-800-770-2030 (playback ID: 9836028) 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 $7.39 billion in assets as of June 30, 2024. Central Pacific Bank, its primary subsidiary, operates 27 branches and 55 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 NYSE Listed: CPF

Forward-Looking Statements

This document may contain forward-looking statements ("FLS") concerning: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, 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. (the "Company") 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 "believe," "plan," "anticipate," "seek," "expect," "intend," "forecast," "hope," "target," "continue," "remain," "estimate," "will," "should," "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 effects of inflation and interest rate fluctuations; the adverse effects of recent bank failures and the potential impact of such developments on customer confidence, deposit behavior, liquidity and regulatory responses thereto; the adverse effects of the COVID-19 pandemic virus (and its variants) and other pandemic viruses 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 thereto; supply chain disruptions; 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; the impact of local, national, and international economies and events (including natural disasters such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, and earthquakes) 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, 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, 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 and lawsuits we are or may become subject to, 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, and the effect of any recurring or special FDIC assessments; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters and the cost and resources required to implement such changes; 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; securities market and monetary fluctuations, including the impact resulting from the elimination of the London Interbank Offered Rate Index; negative trends in our market capitalization and adverse changes in the price of the Company's common stock; the effects of any acquisitions or dispositions we may make; political instability; acts of war or terrorism; changes in consumer spending, borrowings and savings habits; technological changes and developments; cybersecurity and data privacy breaches and the consequence therefrom; failure to maintain effective internal control over financial reporting or disclosure controls and procedures; our ability to address deficiencies in our internal controls over financial reporting or disclosure controls and procedures; changes in the competitive environment among financial holding companies and other financial service providers; our ability to successfully implement our initiatives to lower our efficiency ratio; our ability to attract and retain key personnel; changes in our personnel, organization, compensation and benefit plans; our ability to successfully implement and achieve the objectives of our Banking-as-a-Service initiatives, including adoption of the initiatives by customers and risks faced by any of our bank collaborations including reputational and regulatory risk; 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 document. 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)

2024

2024

2023

2023

2023

2024

2023

CONDENSED INCOME STATEMENT

 

 

 

 

 

 

 

Net interest income

$

51,921

 

$

50,187

 

$

51,142

 

$

51,928

 

$

52,734

 

$

102,108

 

$

106,930

 

Provision for credit losses

 

2,239

 

 

3,936

 

 

4,653

 

 

4,874

 

 

4,319

 

 

6,175

 

 

6,171

 

Total other operating income

 

12,121

 

 

11,244

 

 

15,172

 

 

10,047

 

 

10,435

 

 

23,365

 

 

21,444

 

Total other operating expense

 

41,151

 

 

40,576

 

 

42,522

 

 

39,611

 

 

39,903

 

 

81,727

 

 

82,010

 

Income tax expense

 

4,835

 

 

3,974

 

 

4,273

 

 

4,349

 

 

4,472

 

 

8,809

 

 

9,531

 

Net income

 

15,817

 

 

12,945

 

 

14,866

 

 

13,141

 

 

14,475

 

 

28,762

 

 

30,662

 

Basic earnings per share

$

0.58

 

$

0.48

 

$

0.55

 

$

0.49

 

$

0.54

 

$

1.06

 

$

1.14

 

Diluted earnings per share

 

0.58

 

 

0.48

 

 

0.55

 

 

0.49

 

 

0.53

 

 

1.06

 

 

1.13

 

Dividends declared per share

 

0.26

 

 

0.26

 

 

0.26

 

 

0.26

 

 

0.26

 

 

0.52

 

 

0.52

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

Return on average assets (ROA) [1]

 

0.86

%

 

0.70

%

 

0.79

%

 

0.70

%

 

0.78

%

 

0.78

%

 

0.82

%

Return on average shareholders’ equity (ROE) [1]

 

12.42

 

 

10.33

 

 

12.55

 

 

10.95

 

 

12.12

 

 

11.38

 

 

13.03

 

Average shareholders’ equity to average assets

 

6.94

 

 

6.73

 

 

6.32

 

 

6.39

 

 

6.40

 

 

6.83

 

 

6.31

 

Efficiency ratio [2]

 

64.26

 

 

66.05

 

 

64.12

 

 

63.91

 

 

63.17

 

 

65.14

 

 

63.88

 

Net interest margin (NIM) [1]

 

2.97

 

 

2.83

 

 

2.84

 

 

2.88

 

 

2.96

 

 

2.90

 

 

3.02

 

Dividend payout ratio [3]

 

44.83

 

 

54.17

 

 

47.27

 

 

53.06

 

 

49.06

 

 

49.06

 

 

46.02

 

 

 

 

 

 

 

 

 

SELECTED AVERAGE BALANCES

 

 

 

 

 

 

 

Average loans, including loans held for sale

$

5,385,829

 

$

5,400,558

 

$

5,458,245

 

$

5,507,248

 

$

5,543,398

 

$

5,393,193

 

$

5,534,741

 

Average interest-earning assets

 

7,032,515

 

 

7,140,264

 

 

7,208,613

 

 

7,199,866

 

 

7,155,606

 

 

7,086,389

 

 

7,134,111

 

Average assets

 

7,338,714

 

 

7,449,661

 

 

7,498,097

 

 

7,510,537

 

 

7,463,629

 

 

7,394,188

 

 

7,453,753

 

Average deposits

 

6,542,767

 

 

6,659,812

 

 

6,730,883

 

 

6,738,071

 

 

6,674,650

 

 

6,601,290

 

 

6,665,208

 

Average interest-bearing liabilities

 

4,910,998

 

 

5,009,542

 

 

5,023,321

 

 

4,999,820

 

 

4,908,120

 

 

4,960,270

 

 

4,864,633

 

Average shareholders’ equity

 

509,507

 

 

501,120

 

 

473,708

 

 

480,118

 

 

477,711

 

 

505,314

 

 

470,673

 

[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 other 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,

 

2024

 

2024

 

2023

 

2023

 

2023

REGULATORY CAPITAL RATIOS

 

 

 

 

 

Central Pacific Financial Corp.

 

 

 

 

 

Leverage ratio

 

9.3

%

 

9.0

%

 

8.8

%

 

8.7

%

 

8.7

%

Tier 1 risk-based capital ratio

 

12.8

 

 

12.6

 

 

12.4

 

 

11.9

 

 

11.8

 

Total risk-based capital ratio

 

15.1

 

 

14.8

 

 

14.6

 

 

14.1

 

 

13.9

 

Common equity tier 1 capital ratio

 

11.9

 

 

11.6

 

 

11.4

 

 

11.0

 

 

10.9

 

Central Pacific Bank

 

 

 

 

 

Leverage ratio

 

9.6

 

 

9.4

 

 

9.2

 

 

9.1

 

 

9.1

 

Tier 1 risk-based capital ratio

 

13.3

 

 

13.1

 

 

12.9

 

 

12.4

 

 

12.3

 

Total risk-based capital ratio

 

14.5

 

 

14.3

 

 

14.1

 

 

13.7

 

 

13.5

 

Common equity tier 1 capital ratio

 

13.3

 

 

13.1

 

 

12.9

 

 

12.4

 

 

12.3

 

   

 

Jun 30,

 

Mar 31,

 

Dec 31,

 

Sep 30,

 

Jun 30,

(dollars in thousands, except for per share amounts)

2024

 

2024

 

2023

 

2023

 

2023

BALANCE SHEET

 

 

 

 

 

Total loans, net of deferred fees and costs

$

5,383,644

 

$

5,401,417

 

$

5,438,982

 

$

5,508,710

 

$

5,520,683

 

Total assets

 

7,386,952

 

 

7,409,999

 

 

7,642,796

 

 

7,637,924

 

 

7,567,592

 

Total deposits

 

6,582,455

 

 

6,618,854

 

 

6,847,592

 

 

6,874,745

 

 

6,805,737

 

Long-term debt

 

156,223

 

 

156,163

 

 

156,102

 

 

156,041

 

 

155,981

 

Total shareholders’ equity

 

518,647

 

 

507,203

 

 

503,815

 

 

468,598

 

 

476,279

 

Total shareholders’ equity to total assets

 

7.02

%

 

6.84

%

 

6.59

%

 

6.14

%

 

6.29

%

 

 

 

 

 

 

ASSET QUALITY

 

 

 

 

 

Allowance for credit losses (ACL)

$

62,225

 

$

63,532

 

$

63,934

 

$

64,517

 

$

63,849

 

Nonaccrual loans

 

10,257

 

 

10,132

 

 

7,008

 

 

6,652

 

 

11,061

 

Non-performing assets (NPA)

 

10,257

 

 

10,132

 

 

7,008

 

 

6,652

 

 

11,061

 

Ratio of ACL to total loans

 

1.16

%

 

1.18

%

 

1.18

%

 

1.17

%

 

1.16

%

Ratio of NPA to total assets

 

0.14

%

 

0.14

%

 

0.09

%

 

0.09

%

 

0.15

%

 

 

 

 

 

 

PER SHARE OF COMMON STOCK OUTSTANDING

 

 

 

 

 

Book value per common share

$

19.16

 

$

18.76

 

$

18.63

 

$

17.33

 

$

17.61

 

Closing market price per common share

 

21.20

 

 

19.75

 

 

19.68

 

 

16.68

 

 

15.71

 

  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)

2024

 

2024

 

2023

 

2023

 

2023

ASSETS

 

 

 

 

 

Cash and due from financial institutions

$

103,829

 

$

98,410

 

$

116,181

 

$

108,818

 

$

129,071

 

Interest-bearing deposits in other financial institutions

 

195,062

 

 

214,472

 

 

406,256

 

 

329,913

 

 

181,913

 

Investment securities:

 

 

 

 

 

Available-for-sale debt securities, at fair value

 

676,719

 

 

660,833

 

 

647,210

 

 

625,253

 

 

664,071

 

Held-to-maturity debt securities, at amortized cost; fair value of: $528,088 at June 30, 2024, $541,685 at March 31, 2024, $565,178 at December 31, 2023, $531,887 at September 30, 2023, and $581,222 at June 30, 2023

 

615,867

 

 

624,948

 

 

632,338

 

 

640,053

 

 

649,946

 

Total investment securities

 

1,292,586

 

 

1,285,781

 

 

1,279,548

 

 

1,265,306

 

 

1,314,017

 

Loans held for sale

 

3,950

 

 

755

 

 

1,778

 

 

—

 

 

2,593

 

Loans, net of deferred fees and costs

 

5,383,644

 

 

5,401,417

 

 

5,438,982

 

 

5,508,710

 

 

5,520,683

 

Less: allowance for credit losses

 

(62,225

)

 

(63,532

)

 

(63,934

)

 

(64,517

)

 

(63,849

)

Loans, net of allowance for credit losses

 

5,321,419

 

 

5,337,885

 

 

5,375,048

 

 

5,444,193

 

 

5,456,834

 

Premises and equipment, net

 

100,646

 

 

97,688

 

 

96,184

 

 

97,378

 

 

96,479

 

Accrued interest receivable

 

23,184

 

 

21,957

 

 

21,511

 

 

21,529

 

 

20,463

 

Investment in unconsolidated entities

 

40,155

 

 

40,780

 

 

41,546

 

 

42,523

 

 

45,218

 

Mortgage servicing rights

 

8,636

 

 

8,599

 

 

8,696

 

 

8,797

 

 

8,843

 

Bank-owned life insurance

 

173,716

 

 

172,228

 

 

170,706

 

 

168,543

 

 

168,136

 

Federal Home Loan Bank of Des Moines ("FHLB") stock

 

6,925

 

 

6,921

 

 

6,793

 

 

10,995

 

 

10,960

 

Right-of-use lease assets

 

32,081

 

 

32,079

 

 

29,720

 

 

32,294

 

 

33,247

 

Other assets

 

84,763

 

 

92,444

 

 

88,829

 

 

107,635

 

 

99,818

 

Total assets

$

7,386,952

 

$

7,409,999

 

$

7,642,796

 

$

7,637,924

 

$

7,567,592

 

LIABILITIES

 

 

 

 

 

Deposits:

 

 

 

 

 

Noninterest-bearing demand

$

1,847,173

 

$

1,848,554

 

$

1,913,379

 

$

1,969,523

 

$

2,009,387

 

Interest-bearing demand

 

1,283,669

 

 

1,290,321

 

 

1,329,189

 

 

1,345,843

 

 

1,359,978

 

Savings and money market

 

2,234,111

 

 

2,211,966

 

 

2,209,733

 

 

2,209,550

 

 

2,184,652

 

Time

 

1,217,502

 

 

1,268,013

 

 

1,395,291

 

 

1,349,829

 

 

1,251,720

 

Total deposits

 

6,582,455

 

 

6,618,854

 

 

6,847,592

 

 

6,874,745

 

 

6,805,737

 

Long-term debt, net of unamortized debt issuance costs of: $324 at June 30, 2024, $384 at March 31, 2024, $445 at December 31, 2023, $506 at September 30, 2023 and $566 at June 30, 2023

 

156,223

 

 

156,163

 

 

156,102

 

 

156,041

 

 

155,981

 

Lease liabilities

 

33,422

 

 

33,169

 

 

30,634

 

 

33,186

 

 

34,111

 

Accrued interest payable

 

14,998

 

 

16,654

 

 

18,948

 

 

16,752

 

 

11,402

 

Other liabilities

 

81,207

 

 

77,956

 

 

85,705

 

 

88,602

 

 

84,082

 

Total liabilities

 

6,868,305

 

 

6,902,796

 

 

7,138,981

 

 

7,169,326

 

 

7,091,313

 

EQUITY

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at June 30, 2024, March 31, 2024, December 31, 2023, September 30, 2023, and June 30, 2023

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 27,063,644 at June 30, 2024, 27,042,326 at March 31, 2024, 27,045,033 at December 31, 2023, 27,043,169 at September 30, 2023, and 27,045,792 at June 30, 2023

 

404,494

 

 

404,494

 

 

405,439

 

 

405,439

 

 

405,511

 

Additional paid-in capital

 

104,161

 

 

103,130

 

 

102,982

 

 

102,550

 

 

101,997

 

Retained earnings

 

132,683

 

 

123,902

 

 

117,990

 

 

110,156

 

 

104,046

 

Accumulated other comprehensive loss

 

(122,691

)

 

(124,323

)

 

(122,596

)

 

(149,547

)

 

(135,275

)

Total shareholders' equity

 

518,647

 

 

507,203

 

 

503,815

 

 

468,598

 

 

476,279

 

Total liabilities and equity

$

7,386,952

 

$

7,409,999

 

$

7,642,796

 

$

7,637,924

 

$

7,567,592

 

 

 

 

 

 

 

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,

 

Jun 30,

(Dollars in thousands, except per share data)

2024

 

2024

 

2023

 

2023

 

2023

 

2024

 

2023

Interest income:

 

 

 

 

 

 

 

Interest and fees on loans

$

64,422

 

$

62,819

 

$

62,429

 

$

62,162

 

$

60,455

 

$

127,241

 

$

118,724

 

Interest and dividends on investment securities:

 

 

 

 

 

 

 

Taxable investment securities

 

8,466

 

 

7,211

 

 

7,292

 

 

7,016

 

 

7,145

 

 

15,677

 

 

14,481

 

Tax-exempt investment securities

 

598

 

 

655

 

 

686

 

 

709

 

 

727

 

 

1,253

 

 

1,517

 

Interest on deposits in other financial institutions

 

2,203

 

 

3,611

 

 

3,597

 

 

2,412

 

 

877

 

 

5,814

 

 

1,154

 

Dividend income on FHLB stock

 

151

 

 

106

 

 

109

 

 

113

 

 

120

 

 

257

 

 

256

 

Total interest income

 

75,840

 

 

74,402

 

 

74,113

 

 

72,412

 

 

69,324

 

 

150,242

 

 

136,132

 

Interest expense:

 

 

 

 

 

 

 

Interest on deposits:

 

 

 

 

 

 

 

Interest-bearing demand

 

490

 

 

499

 

 

467

 

 

460

 

 

411

 

 

989

 

 

774

 

Savings and money market

 

8,977

 

 

8,443

 

 

7,459

 

 

6,464

 

 

4,670

 

 

17,420

 

 

8,056

 

Time

 

12,173

 

 

12,990

 

 

12,741

 

 

11,268

 

 

8,932

 

 

25,163

 

 

15,196

 

Interest on short-term borrowings

 

1

 

 

—

 

 

—

 

 

—

 

 

378

 

 

1

 

 

1,139

 

Interest on long-term debt

 

2,278

 

 

2,283

 

 

2,304

 

 

2,292

 

 

2,199

 

 

4,561

 

 

4,037

 

Total interest expense

 

23,919

 

 

24,215

 

 

22,971

 

 

20,484

 

 

16,590

 

 

48,134

 

 

29,202

 

Net interest income

 

51,921

 

 

50,187

 

 

51,142

 

 

51,928

 

 

52,734

 

 

102,108

 

 

106,930

 

Provision for credit losses

 

2,239

 

 

3,936

 

 

4,653

 

 

4,874

 

 

4,319

 

 

6,175

 

 

6,171

 

Net interest income after provision for credit losses

 

49,682

 

 

46,251

 

 

46,489

 

 

47,054

 

 

48,415

 

 

95,933

 

 

100,759

 

Other operating income:

 

 

 

 

 

 

 

Mortgage banking income

 

1,040

 

 

613

 

 

611

 

 

765

 

 

690

 

 

1,653

 

 

1,216

 

Service charges on deposit accounts

 

2,135

 

 

2,103

 

 

2,312

 

 

2,193

 

 

2,137

 

 

4,238

 

 

4,248

 

Other service charges and fees

 

5,869

 

 

5,261

 

 

5,349

 

 

5,203

 

 

4,994

 

 

11,130

 

 

9,979

 

Income from fiduciary activities

 

1,449

 

 

1,435

 

 

1,272

 

 

1,234

 

 

1,068

 

 

2,884

 

 

2,389

 

Income from bank-owned life insurance

 

1,234

 

 

1,522

 

 

2,015

 

 

379

 

 

1,185

 

 

2,756

 

 

2,476

 

Net loss on sales of investment securities

 

—

 

 

—

 

 

(1,939

)

 

(135

)

 

—

 

 

—

 

 

—

 

Other

 

394

 

 

310

 

 

5,552

 

 

408

 

 

361

 

 

704

 

 

1,136

 

Total other operating income

 

12,121

 

 

11,244

 

 

15,172

 

 

10,047

 

 

10,435

 

 

23,365

 

 

21,444

 

Other operating expense:

 

 

 

 

 

 

 

Salaries and employee benefits

 

21,246

 

 

20,735

 

 

20,164

 

 

19,015

 

 

20,848

 

 

41,981

 

 

42,871

 

Net occupancy

 

4,597

 

 

4,600

 

 

4,676

 

 

4,725

 

 

4,310

 

 

9,197

 

 

8,784

 

Computer software

 

4,381

 

 

4,287

 

 

4,026

 

 

4,473

 

 

4,621

 

 

8,668

 

 

9,227

 

Legal and professional services

 

2,506

 

 

2,320

 

 

2,245

 

 

2,359

 

 

2,469

 

 

4,826

 

 

5,355

 

Equipment

 

995

 

 

1,010

 

 

968

 

 

1,112

 

 

932

 

 

2,005

 

 

1,878

 

Advertising

 

901

 

 

914

 

 

1,045

 

 

968

 

 

942

 

 

1,815

 

 

1,875

 

Communication

 

657

 

 

837

 

 

632

 

 

809

 

 

791

 

 

1,494

 

 

1,569

 

Other

 

5,868

 

 

5,873

 

 

8,766

 

 

6,150

 

 

4,990

 

 

11,741

 

 

10,451

 

Total other operating expense

 

41,151

 

 

40,576

 

 

42,522

 

 

39,611

 

 

39,903

 

 

81,727

 

 

82,010

 

Income before income taxes

 

20,652

 

 

16,919

 

 

19,139

 

 

17,490

 

 

18,947

 

 

37,571

 

 

40,193

 

Income tax expense

 

4,835

 

 

3,974

 

 

4,273

 

 

4,349

 

 

4,472

 

 

8,809

 

 

9,531

 

Net income

$

15,817

 

$

12,945

 

$

14,866

 

$

13,141

 

$

14,475

 

$

28,762

 

$

30,662

 

Per common share data:

 

 

 

 

 

 

 

Basic earnings per share

$

0.58

 

$

0.48

 

$

0.55

 

$

0.49

 

$

0.54

 

$

1.06

 

$

1.14

 

Diluted earnings per share

 

0.58

 

 

0.48

 

 

0.55

 

 

0.49

 

 

0.53

 

 

1.06

 

 

1.13

 

Cash dividends declared

 

0.26

 

 

0.26

 

 

0.26

 

 

0.26

 

 

0.26

 

 

0.52

 

 

0.52

 

Basic weighted average shares outstanding

 

27,053,549

 

 

27,046,525

 

 

27,044,121

 

 

27,042,762

 

 

27,024,043

 

 

27,050,037

 

 

27,011,659

 

Diluted weighted average shares outstanding

 

27,116,349

 

 

27,099,101

 

 

27,097,285

 

 

27,079,484

 

 

27,071,478

 

 

27,106,267

 

 

27,090,258

 

 

 

 

 

 

 

 

 

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, 2024

 

March 31, 2024

 

June 30, 2023

 

 

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

 

$

162,393

 

5.46

%

 

$

2,203

 

$

265,418

 

5.47

%

 

$

3,611

 

$

69,189

 

5.08

%

 

$

877

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,335,100

 

2.54

 

 

 

8,466

 

 

1,324,657

 

2.18

 

 

 

7,211

 

 

1,379,319

 

2.07

 

 

 

7,145

Tax-exempt [1]

 

 

142,268

 

2.13

 

 

 

757

 

 

142,830

 

2.32

 

 

 

829

 

 

151,979

 

2.42

 

 

 

920

Total investment securities

 

 

1,477,368

 

2.50

 

 

 

9,223

 

 

1,467,487

 

2.19

 

 

 

8,040

 

 

1,531,298

 

2.11

 

 

 

8,065

Loans, including loans held for sale

 

 

5,385,829

 

4.80

 

 

 

64,422

 

 

5,400,558

 

4.67

 

 

 

62,819

 

 

5,543,398

 

4.37

 

 

 

60,455

FHLB stock

 

 

6,925

 

8.71

 

 

 

151

 

 

6,801

 

6.24

 

 

 

106

 

 

11,721

 

4.10

 

 

 

120

Total interest-earning assets

 

 

7,032,515

 

4.34

 

 

 

75,999

 

 

7,140,264

 

4.19

 

 

 

74,576

 

 

7,155,606

 

3.89

 

 

 

69,517

Noninterest-earning assets

 

 

306,199

 

 

 

 

 

 

309,397

 

 

 

 

 

 

308,023

 

 

 

 

Total assets

 

$

7,338,714

 

 

 

 

 

$

7,449,661

 

 

 

 

 

$

7,463,629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

1,273,901

 

0.15

%

 

$

490

 

$

1,296,865

 

0.15

%

 

$

499

 

$

1,367,878

 

0.12

%

 

$

411

Savings and money market deposits

 

 

2,221,754

 

1.63

 

 

 

8,977

 

 

2,218,250

 

1.53

 

 

 

8,443

 

 

2,172,680

 

0.86

 

 

 

4,670

Time deposits up to $250,000

 

 

555,809

 

3.29

 

 

 

4,548

 

 

544,279

 

3.21

 

 

 

4,339

 

 

390,961

 

1.82

 

 

 

1,770

Time deposits over $250,000

 

 

703,280

 

4.36

 

 

 

7,625

 

 

794,019

 

4.38

 

 

 

8,651

 

 

790,864

 

3.63

 

 

 

7,162

Total interest-bearing deposits

 

 

4,754,744

 

1.83

 

 

 

21,640

 

 

4,853,413

 

1.82

 

 

 

21,932

 

 

4,722,383

 

1.19

 

 

 

14,013

FHLB advances and other short-term borrowings

 

 

66

 

5.60

 

 

 

1

 

 

—

 

—

 

 

 

—

 

 

29,791

 

5.09

 

 

 

378

Long-term debt

 

 

156,188

 

5.86

 

 

 

2,278

 

 

156,129

 

5.88

 

 

 

2,283

 

 

155,946

 

5.65

 

 

 

2,199

Total interest-bearing liabilities

 

 

4,910,998

 

1.96

 

 

 

23,919

 

 

5,009,542

 

1.94

 

 

 

24,215

 

 

4,908,120

 

1.36

 

 

 

16,590

Noninterest-bearing deposits

 

 

1,788,023

 

 

 

 

 

 

1,806,399

 

 

 

 

 

 

1,952,267

 

 

 

 

Other liabilities

 

 

130,186

 

 

 

 

 

 

132,600

 

 

 

 

 

 

125,531

 

 

 

 

Total liabilities

 

 

6,829,207

 

 

 

 

 

 

6,948,541

 

 

 

 

 

 

6,985,918

 

 

 

 

Total equity

 

 

509,507

 

 

 

 

 

 

501,120

 

 

 

 

 

 

477,711

 

 

 

 

Total liabilities and equity

 

$

7,338,714

 

 

 

 

 

$

7,449,661

 

 

 

 

 

$

7,463,629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

52,080

 

 

 

 

 

$

50,361

 

 

 

 

 

$

52,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

 

2.38

%

 

 

 

 

 

2.25

%

 

 

 

 

 

2.53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

2.97

%

 

 

 

 

 

2.83

%

 

 

 

 

 

2.96

%

 

 

[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, 2024

 

June 30, 2023

 

 

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

 

$

213,905

 

5.47

%

 

$

5,814

 

$

47,195

 

4.93

%

 

$

1,154

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,329,879

 

2.36

 

 

 

15,677

 

 

1,387,606

 

2.09

 

 

 

14,481

Tax-exempt [1]

 

 

142,549

 

2.23

 

 

 

1,586

 

 

152,520

 

2.52

 

 

 

1,920

Total investment securities

 

 

1,472,428

 

2.34

 

 

 

17,263

 

 

1,540,126

 

2.13

 

 

 

16,401

Loans, including loans held for sale

 

 

5,393,193

 

4.74

 

 

 

127,241

 

 

5,534,741

 

4.32

 

 

 

118,724

FHLB stock

 

 

6,863

 

7.49

 

 

 

257

 

 

12,049

 

4.26

 

 

 

256

Total interest-earning assets

 

 

7,086,389

 

4.26

 

 

 

150,575

 

 

7,134,111

 

3.85

 

 

 

136,535

Noninterest-earning assets

 

 

307,799

 

 

 

 

 

 

319,642

 

 

 

 

Total assets

 

$

7,394,188

 

 

 

 

 

$

7,453,753

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

1,285,383

 

0.15

%

 

$

989

 

$

1,391,386

 

0.11

%

 

$

774

Savings and money market deposits

 

 

2,220,002

 

1.58

 

 

 

17,420

 

 

2,177,783

 

0.75

 

 

 

8,056

Time deposits up to $250,000

 

 

550,044

 

3.25

 

 

 

8,887

 

 

366,316

 

1.60

 

 

 

2,907

Time deposits over $250,000

 

 

748,649

 

4.37

 

 

 

16,276

 

 

740,428

 

3.35

 

 

 

12,289

Total interest-bearing deposits

 

 

4,804,078

 

1.82

 

 

 

43,572

 

 

4,675,913

 

1.04

 

 

 

24,026

FHLB advances and other short-term borrowings

 

 

33

 

5.60

 

 

 

1

 

 

47,031

 

4.88

 

 

 

1,139

Long-term debt

 

 

156,159

 

5.87

 

 

 

4,561

 

 

141,689

 

5.75

 

 

 

4,037

Total interest-bearing liabilities

 

 

4,960,270

 

1.95

 

 

 

48,134

 

 

4,864,633

 

1.21

 

 

 

29,202

Noninterest-bearing deposits

 

 

1,797,212

 

 

 

 

 

 

1,989,295

 

 

 

 

Other liabilities

 

 

131,392

 

 

 

 

 

 

129,152

 

 

 

 

Total liabilities

 

 

6,888,874

 

 

 

 

 

 

6,983,080

 

 

 

 

Total equity

 

 

505,314

 

 

 

 

 

 

470,673

 

 

 

 

Total liabilities and equity

 

$

7,394,188

 

 

 

 

 

$

7,453,753

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

102,441

 

 

 

 

 

$

107,333

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

 

2.31

%

 

 

 

 

 

2.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

2.90

%

 

 

 

 

 

3.02

%

 

 

[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)

2024

 

2024

 

2023

 

2023

 

2023

HAWAII:

 

 

 

 

 

Commercial and industrial

$

415,538

 

$

420,009

 

$

421,736

 

$

406,433

 

$

374,601

 

Real estate:

 

 

 

 

 

Construction

 

147,657

 

 

145,213

 

 

163,337

 

 

174,057

 

 

168,012

 

Residential mortgage

 

1,913,177

 

 

1,924,889

 

 

1,927,789

 

 

1,930,740

 

 

1,942,906

 

Home equity

 

706,811

 

 

729,210

 

 

736,524

 

 

753,980

 

 

750,760

 

Commercial mortgage

 

1,150,703

 

 

1,103,174

 

 

1,063,969

 

 

1,045,625

 

 

1,037,826

 

Consumer

 

287,295

 

 

306,563

 

 

322,346

 

 

338,248

 

 

327,790

 

Total loans, net of deferred fees and costs

 

4,621,181

 

 

4,629,058

 

 

4,635,701

 

 

4,649,083

 

 

4,601,895

 

Less: Allowance for credit losses

 

(47,902

)

 

(48,739

)

 

(48,189

)

 

(48,105

)

 

(44,828

)

Loans, net of allowance for credit losses

$

4,573,279

 

$

4,580,319

 

$

4,587,512

 

$

4,600,978

 

$

4,557,067

 

 

 

 

 

 

 

U.S. MAINLAND: [1]

 

 

 

 

 

Commercial and industrial

$

169,318

 

$

156,087

 

$

153,971

 

$

157,373

 

$

170,557

 

Real estate:

 

 

 

 

 

Construction

 

23,865

 

 

23,356

 

 

22,182

 

 

37,455

 

 

32,807

 

Commercial mortgage

 

314,667

 

 

319,088

 

 

318,933

 

 

319,802

 

 

329,736

 

Consumer

 

254,613

 

 

273,828

 

 

308,195

 

 

344,997

 

 

385,688

 

Total loans, net of deferred fees and costs

 

762,463

 

 

772,359

 

 

803,281

 

 

859,627

 

 

918,788

 

Less: Allowance for credit losses

 

(14,323

)

 

(14,793

)

 

(15,745

)

 

(16,412

)

 

(19,021

)

Loans, net of allowance for credit losses

$

748,140

 

$

757,566

 

$

787,536

 

$

843,215

 

$

899,767

 

 

 

 

 

 

 

TOTAL:

 

 

 

 

 

Commercial and industrial

$

584,856

 

$

576,096

 

$

575,707

 

$

563,806

 

$

545,158

 

Real estate:

 

 

 

 

 

Construction

 

171,522

 

 

168,569

 

 

185,519

 

 

211,512

 

 

200,819

 

Residential mortgage

 

1,913,177

 

 

1,924,889

 

 

1,927,789

 

 

1,930,740

 

 

1,942,906

 

Home equity

 

706,811

 

 

729,210

 

 

736,524

 

 

753,980

 

 

750,760

 

Commercial mortgage

 

1,465,370

 

 

1,422,262

 

 

1,382,902

 

 

1,365,427

 

 

1,367,562

 

Consumer

 

541,908

 

 

580,391

 

 

630,541

 

 

683,245

 

 

713,478

 

Total loans, net of deferred fees and costs

 

5,383,644

 

 

5,401,417

 

 

5,438,982

 

 

5,508,710

 

 

5,520,683

 

Less: Allowance for credit losses

 

(62,225

)

 

(63,532

)

 

(63,934

)

 

(64,517

)

 

(63,849

)

Loans, net of allowance for credit losses

$

5,321,419

 

$

5,337,885

 

$

5,375,048

 

$

5,444,193

 

$

5,456,834

 

[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)

 

2024

 

2024

 

2023

 

2023

 

2023

Noninterest-bearing demand

 

$

1,847,173

 

 

$

1,848,554

 

 

$

1,913,379

 

 

$

1,969,523

 

 

$

2,009,387

 

Interest-bearing demand

 

 

1,283,669

 

 

 

1,290,321

 

 

 

1,329,189

 

 

 

1,345,843

 

 

 

1,359,978

 

Savings and money market

 

 

2,234,111

 

 

 

2,211,966

 

 

 

2,209,733

 

 

 

2,209,550

 

 

 

2,184,652

 

Time deposits up to $250,000

 

 

547,212

 

 

 

544,600

 

 

 

533,898

 

 

 

465,543

 

 

 

427,864

 

Core deposits

 

 

5,912,165

 

 

 

5,895,441

 

 

 

5,986,199

 

 

 

5,990,459

 

 

 

5,981,881

 

Government time deposits

 

 

193,833

 

 

 

235,463

 

 

 

374,581

 

 

 

400,130

 

 

 

383,426

 

Other time deposits greater than $250,000

 

 

476,457

 

 

 

487,950

 

 

 

486,812

 

 

 

484,156

 

 

 

440,430

 

Total time deposits greater than $250,000

 

 

670,290

 

 

 

723,413

 

 

 

861,393

 

 

 

884,286

 

 

 

823,856

 

Total deposits

 

$

6,582,455

 

 

$

6,618,854

 

 

$

6,847,592

 

 

$

6,874,745

 

 

$

6,805,737

 

 

 

 

 

 

 

 

 

 

 

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Nonperforming Assets and Accruing Loans 90+ Days Past Due

(Unaudited)

TABLE 8

 

 

 

 

 

 

 

 

 

 

 

Jun 30,

 

Mar 31,

 

Dec 31,

 

Sep 30,

 

Jun 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

 

2023

 

2023

Nonaccrual loans:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

355

 

 

$

357

 

 

$

432

 

 

$

352

 

 

$

319

 

Real estate:

 

 

 

 

 

 

 

 

 

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,851

 

Residential mortgage

 

 

7,991

 

 

 

7,979

 

 

 

4,962

 

 

 

4,949

 

 

 

4,385

 

Home equity

 

 

1,247

 

 

 

929

 

 

 

834

 

 

 

677

 

 

 

797

 

Commercial mortgage

 

 

77

 

 

 

77

 

 

 

77

 

 

 

77

 

 

 

77

 

Consumer

 

 

587

 

 

 

790

 

 

 

703

 

 

 

597

 

 

 

632

 

Total nonaccrual loans

 

 

10,257

 

 

 

10,132

 

 

 

7,008

 

 

 

6,652

 

 

 

11,061

 

Other real estate owned ("OREO")

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total nonperforming assets ("NPAs")

 

 

10,257

 

 

 

10,132

 

 

 

7,008

 

 

 

6,652

 

 

 

11,061

 

Accruing loans 90+ days past due:

 

 

 

 

 

 

 

 

 

 

Real estate:

 

 

 

 

 

 

 

 

 

 

Construction

 

 

—

 

 

 

588

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

1,273

 

 

 

386

 

 

 

—

 

 

 

794

 

 

 

959

 

Home equity

 

 

135

 

 

 

560

 

 

 

229

 

 

 

—

 

 

 

133

 

Consumer

 

 

896

 

 

 

924

 

 

 

1,083

 

 

 

2,120

 

 

 

2,207

 

Total accruing loans 90+ days past due

 

 

2,304

 

 

 

2,458

 

 

 

1,312

 

 

 

2,914

 

 

 

3,299

 

Total NPAs and accruing loans 90+ days past due

 

$

12,561

 

 

$

12,590

 

 

$

8,320

 

 

$

9,566

 

 

$

14,360

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of total nonaccrual loans to total loans

 

 

0.19

%

 

 

0.19

%

 

 

0.13

%

 

 

0.12

%

 

 

0.20

%

Ratio of total NPAs to total assets

 

 

0.14

 

 

 

0.14

 

 

 

0.09

 

 

 

0.09

 

 

 

0.15

 

Ratio of total NPAs to total loans and OREO

 

 

0.19

 

 

 

0.19

 

 

 

0.13

 

 

 

0.12

 

 

 

0.20

 

Ratio of total NPAs and accruing loans 90+ days past due to total loans and OREO

 

 

0.23

 

 

 

0.23

 

 

 

0.15

 

 

 

0.17

 

 

 

0.26

 

 

 

 

 

 

 

 

 

 

 

 

Quarter-to-quarter changes in NPAs:

 

 

 

 

 

 

 

 

 

 

Balance at beginning of quarter

 

$

10,132

 

 

$

7,008

 

 

$

6,652

 

 

$

11,061

 

 

$

5,313

 

Additions

 

 

1,920

 

 

 

4,792

 

 

 

1,836

 

 

 

2,311

 

 

 

7,105

 

Reductions:

 

 

 

 

 

 

 

 

 

 

Payments

 

 

(363

)

 

 

(263

)

 

 

(268

)

 

 

(5,718

)

 

 

(290

)

Return to accrual status

 

 

(27

)

 

 

(198

)

 

 

(137

)

 

 

(207

)

 

 

(212

)

Charge-offs, valuation and other adjustments

 

 

(1,405

)

 

 

(1,207

)

 

 

(1,075

)

 

 

(795

)

 

 

(855

)

Total reductions

 

 

(1,795

)

 

 

(1,668

)

 

 

(1,480

)

 

 

(6,720

)

 

 

(1,357

)

Balance at end of quarter

 

$

10,257

 

 

$

10,132

 

 

$

7,008

 

 

$

6,652

 

 

$

11,061

 

 

 

 

 

 

 

 

 

 

 

 

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,

 

Jun 30,

(Dollars in thousands)

 

2024

 

2024

 

2023

 

2023

 

2023

 

2024

 

2023

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

63,532

 

 

$

63,934

 

 

$

64,517

 

 

$

63,849

 

 

$

63,099

 

 

$

63,934

 

 

$

63,738

 

Provision for credit losses on loans

 

 

2,448

 

 

 

4,121

 

 

 

4,959

 

 

 

4,526

 

 

 

4,135

 

 

 

6,569

 

 

 

5,750

 

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

(519

)

 

 

(682

)

 

 

(419

)

 

 

(402

)

 

 

(362

)

 

 

(1,201

)

 

 

(1,141

)

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage

 

 

(284

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(284

)

 

 

—

 

Consumer

 

 

(4,345

)

 

 

(4,838

)

 

 

(5,976

)

 

 

(4,710

)

 

 

(3,873

)

 

 

(9,183

)

 

 

(6,559

)

Total charge-offs

 

 

(5,148

)

 

 

(5,520

)

 

 

(6,395

)

 

 

(5,112

)

 

 

(4,235

)

 

 

(10,668

)

 

 

(7,700

)

Recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

130

 

 

 

90

 

 

 

84

 

 

 

261

 

 

 

125

 

 

 

220

 

 

 

375

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential mortgage

 

 

9

 

 

 

8

 

 

 

7

 

 

 

10

 

 

 

7

 

 

 

17

 

 

 

60

 

Home equity

 

 

—

 

 

 

6

 

 

 

42

 

 

 

—

 

 

 

15

 

 

 

6

 

 

 

15

 

Consumer

 

 

1,254

 

 

 

893

 

 

 

720

 

 

 

982

 

 

 

703

 

 

 

2,147

 

 

 

1,611

 

Total recoveries

 

 

1,393

 

 

 

997

 

 

 

853

 

 

 

1,254

 

 

 

850

 

 

 

2,390

 

 

 

2,061

 

Net charge-offs

 

 

(3,755

)

 

 

(4,523

)

 

 

(5,542

)

 

 

(3,858

)

 

 

(3,385

)

 

 

(8,278

)

 

 

(5,639

)

Balance at end of period

 

$

62,225

 

 

$

63,532

 

 

$

63,934

 

 

$

64,517

 

 

$

63,849

 

 

$

62,225

 

 

$

63,849

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average loans, net of deferred fees and costs

 

$

5,385,829

 

 

$

5,400,558

 

 

$

5,458,245

 

 

$

5,507,248

 

 

$

5,543,398

 

 

$

5,393,193

 

 

$

5,534,741

 

Ratio of annualized net charge-offs to average loans

 

 

0.28

%

 

 

0.34

%

 

 

0.41

%

 

 

0.28

%

 

 

0.24

%

 

 

0.31

%

 

 

0.20

%

Ratio of ACL to total loans

 

 

1.16

 

 

 

1.18

 

 

 

1.18

 

 

 

1.17

 

 

 

1.16

 

 

 

1.16

%

 

 

1.16

%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731076743/en/

Investor Contact: Ian Tanaka SVP, Treasury Manager (808) 544-3646 ian.tanaka@cpb.bank Media Contact: Tim Sakahara AVP, Corporate Communications Manager (808) 544-5125 tim.sakahara@cpb.bank