Sign In  |  Register  |  About Corte Madera  |  Contact Us

Corte Madera, CA
September 01, 2020 10:27am
7-Day Forecast | Traffic
  • Search Hotels in Corte Madera

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Central Pacific Financial Reports Fourth Quarter Earnings of $14.9 Million and Full Year 2023 Earnings of $58.7 Million

Highlights Included:

  • Net income of $14.9 million, or $0.55 per diluted share for the fourth quarter.
  • ROA of 0.79%, ROE of 12.55% and NIM of 2.84% for the fourth quarter.
  • Net income of $58.7 million, or $2.17 per diluted share for the 2023 year.
  • ROA of 0.78%, ROE of 12.38% and NIM of 2.94% for the 2023 year.
  • Completed balance sheet repositioning including the sale of an office real estate property, branch lease termination and investment securities portfolio restructuring, resulting in a net $0.9 million pre-tax gain in the fourth quarter, and a total estimated annual positive impact to future pre-tax income of $2.0 million.
  • Board of Directors approved quarterly cash dividend of $0.26 per share and authorized a new share repurchase program of up to $20.0 million for 2024.

Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), today reported net income of $14.9 million, or fully diluted earnings per share ("EPS") of $0.55 for the fourth quarter of 2023, compared to net income of $13.1 million, or EPS of $0.49 in the previous quarter and net income of $20.2 million, or EPS of $0.74 in the year-ago quarter. For the 2023 year, net income was $58.7 million, or EPS of $2.17, compared to net income of $73.9 million, or EPS of $2.68 last year.

Pre-provision net revenue ("PPNR"), or net income excluding provision for credit losses and income taxes, totaled $23.8 million in the fourth quarter of 2023, compared to PPNR of $22.4 million in the previous quarter and $27.5 million in the year-ago quarter.

"Our solid 2023 results reflect our consistent business approach, strong credit culture and commitment to the Hawaii marketplace. We are proud to have been named to Newsweek’s 2024 list of America’s Best Regional Banks, based on our creditworthiness, profitability, net loan activity and public image. This achievement was made possible through our hardworking and committed team of employees and support of our customers and the community," said Arnold Martines, President and Chief Executive Officer. "We believe we are positioned to deliver a strong financial performance in 2024, highlighted by our strategic relationship focused approach and our solid liquidity, capital and asset quality."

Earnings Highlights

Net interest income was $51.1 million for the fourth quarter of 2023, which decreased by $0.8 million, or 1.5% from the previous quarter, and decreased by $5.1 million, or 9.1% from the year-ago quarter. Net interest margin ("NIM") was 2.84% for the fourth quarter of 2023, which decreased by 4 basis points ("bps") from the previous quarter and decreased by 33 bps from the year-ago quarter. The sequential quarter decreases in net interest income and NIM was primarily due to increases in average balances and rates paid on interest-bearing deposits, which outpaced the increases in average yields earned on investment securities and loans and the increase in average interest-earning deposits at the Federal Reserve Bank.

During the quarter, the Company completed a $30.0 million investment portfolio restructuring designed to increase prospective earnings and net interest margin. The Company sold available-for-sale debt securities with a book value of $30.0 million, weighted average yield of 3.3%, weighted average duration of 3.4 years, and recognized a loss of $1.9 million. Proceeds from the sale were used to purchase $28.3 million in debt securities with a weighted average yield of 5.7% and a weighted average duration of 2.5 years. The Company estimates the earn-back period to be approximately 2.8 years.

The Company recorded a provision for credit losses of $4.7 million in the fourth quarter of 2023, compared to a provision of $4.9 million in the previous quarter and a provision of $0.6 million in the year-ago quarter. The provision in the fourth quarter consisted of a provision for credit losses on loans of $5.0 million, offset by a credit to the provision for credit losses on off-balance sheet exposures of $0.3 million.

Other operating income totaled $15.2 million for the fourth quarter of 2023, compared to $10.0 million in the previous quarter and $11.6 million in the year-ago quarter. The increase from the previous quarter was primarily due to a non-recurring pre-tax net gain on the sale of a real estate property (included in other) of $5.1 million, combined with higher income from bank-owned life insurance ("BOLI") of $1.6 million, partially offset by the aforementioned losses on sales of investment securities totaling $1.9 million recognized in the current quarter. The Company expects future annual savings from the sale and consolidation of the real estate office space of approximately $0.6 million. The higher BOLI income was primarily attributable to equity market volatility and was offset by higher deferred compensation expense in other operating expenses.

Other operating expense totaled $42.5 million for the fourth quarter of 2023, compared to $39.6 million in the previous quarter and $40.4 million in the year-ago quarter. The increase from the previous quarter was primarily due to a non-recurring branch lease termination expense (included in other) of $2.3 million, combined with higher salaries and employee benefits of $1.1 million, partially offset by lower computer software expense of $0.4 million. The Company expects future annual savings from the branch lease termination and consolidation of approximately $0.7 million.

The efficiency ratio was 64.12% for the fourth quarter of 2023, compared to 63.91% in the previous quarter and 59.56% in the year-ago quarter.

The effective tax rate was 22.3% for the fourth quarter of 2023, compared to 24.9% in the previous quarter and 24.9% in the year-ago quarter. The lower effective tax rate was primarily attributable to higher tax-exempt BOLI income as a percentage of pre-tax income.

Balance Sheet Highlights

Total assets of $7.64 billion at December 31, 2023 remained relatively flat from $7.64 billion at September 30, 2023, and increased by $210.0 million, or 2.8% from $7.43 billion at December 31, 2022. The Company had $522.4 million in cash on its balance sheet and $2.45 billion in total other liquidity sources, including available borrowing capacity and unpledged investment securities at December 31, 2023. Total available sources of liquidity as a percentage of uninsured and uncollateralized deposits was 125% at December 31, 2023.

Total loans, net of deferred fees and costs, of $5.44 billion at December 31, 2023 decreased by $69.7 million, or 1.3% from $5.51 billion at September 30, 2023, and decreased by $116.5 million, or 2.1% from $5.56 billion at December 31, 2022. Average yields earned on loans during the fourth quarter of 2023 was 4.55%, compared to 4.49% in the previous quarter and 4.10% in the year-ago quarter.

Total deposits of $6.85 billion at December 31, 2023 decreased by $27.2 million or 0.4% from $6.87 billion at September 30, 2023, and increased by $111.4 million, or 1.7% from $6.74 billion at December 31, 2022. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $5.99 billion at December 31, 2023, and remained relatively flat from $5.99 billion at September 30, 2023. Average rates paid on total deposits during the fourth quarter of 2023 was 1.22%, compared to 1.07% in the previous quarter and 0.41% in the year-ago quarter. At December 31, 2023, approximately 65% of the Company's total deposits were FDIC-insured or fully collateralized.

Asset Quality

Nonperforming assets totaled $7.0 million, or 0.09% of total assets at December 31, 2023, compared to $6.7 million, or 0.09% of total assets at September 30, 2023 and $5.3 million, or 0.07% of total assets at December 31, 2022.

Net charge-offs totaled $5.5 million in the fourth quarter of 2023, compared to net charge-offs of $3.9 million in the previous quarter, and net charge-offs of $1.7 million in the year-ago quarter. The increase in net charge-offs was primarily attributable to the mainland consumer loan portfolio. Annualized net charge-offs as a percentage of average loans was 0.41%, 0.28% and 0.12% during the three months ended December 31, 2023, September 30, 2023 and December 31, 2022, respectively.

The allowance for credit losses, as a percentage of total loans was 1.18% at December 31, 2023, compared to 1.17% at September 30, 2023, and 1.15% at December 31, 2022.

Capital

Total shareholders' equity was $503.8 million at December 31, 2023, compared to $468.6 million and $452.9 million at September 30, 2023 and December 31, 2022, respectively. The increase from the previous and year-ago quarters is primarily due to net income, combined with the decrease in unrealized losses on investment securities, partially offset by dividends paid.

The Company's leverage, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 capital ratios were 8.8%, 12.4%, 14.6%, and 11.4%, respectively, at December 31, 2023, compared to 8.7%, 11.9%, 14.1%, and 11.0%, respectively, at September 30, 2023.

On January 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 March 15, 2024 to shareholders of record at the close of business on February 29, 2024.

On January 30, 2024, the Company's Board of Directors also authorized the repurchase of up to $20 million of its common stock from time to time in the open market or in privately negotiated transactions, pursuant to a newly authorized share repurchase program (the "Repurchase Plan"). The Repurchase Plan replaces and supersedes in its entirety the share repurchase program previously approved by the Company's Board of Directors. The Company did not repurchase any shares of common stock during the fourth quarter of 2023. During the year ended December 31, 2023, the Company repurchased 130,010 shares of common stock, at a total cost of $2.6 million, or an average cost per share of $20.24. During the year ended December 31, 2023, the Company returned $30.7 million in capital to its shareholders through cash dividends and share repurchases.

Conference Call

The Company's management will host a conference call today at 1:00 p.m. Eastern Time (8:00 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 1-888-510-2553 (access code: 9816541). A playback of the call will be available through March 1, 2024 by dialing 1-800-770-2030 (access code: 9816541) 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 $7.64 billion in assets as of December 31, 2023. Central Pacific Bank, its primary subsidiary, operates 27 branches and 58 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 ("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. (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," "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 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; 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; 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) 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 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; 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"); securities market and monetary fluctuations, including the impact resulting from the elimination of the London Interbank Offered Rate ("LIBOR") Index; negative trends in our market capitalization and adverse changes in the price of the Company's common stock; political instability; acts of war or terrorism; changes in consumer spending, borrowings and savings habits; cybersecurity and data privacy breaches and the consequence therefrom; failure to maintain effective internal control over financial reporting or disclosure controls and procedures; 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 Forms 10-Q and 10-K for the current and 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

 

Year Ended

(Dollars in thousands,

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

 

Dec 31,

except for per share amounts)

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

CONDENSED INCOME STATEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

51,142

 

 

$

51,928

 

 

$

52,734

 

 

$

54,196

 

 

$

56,285

 

 

$

210,000

 

 

$

215,563

 

Provision (credit) for credit losses

 

 

4,653

 

 

 

4,874

 

 

 

4,319

 

 

 

1,852

 

 

 

571

 

 

 

15,698

 

 

 

(1,273

)

Total other operating income

 

 

15,172

 

 

 

10,047

 

 

 

10,435

 

 

 

11,009

 

 

 

11,601

 

 

 

46,663

 

 

 

47,919

 

Total other operating expense

 

 

42,522

 

 

 

39,611

 

 

 

39,903

 

 

 

42,107

 

 

 

40,434

 

 

 

164,143

 

 

 

165,986

 

Income tax expense

 

 

4,273

 

 

 

4,349

 

 

 

4,472

 

 

 

5,059

 

 

 

6,700

 

 

 

18,153

 

 

 

24,841

 

Net income

 

 

14,866

 

 

 

13,141

 

 

 

14,475

 

 

 

16,187

 

 

 

20,181

 

 

 

58,669

 

 

 

73,928

 

Basic earnings per share

 

$

0.55

 

 

$

0.49

 

 

$

0.54

 

 

$

0.60

 

 

$

0.74

 

 

$

2.17

 

 

$

2.70

 

Diluted earnings per share

 

 

0.55

 

 

 

0.49

 

 

 

0.53

 

 

 

0.60

 

 

 

0.74

 

 

 

2.17

 

 

 

2.68

 

Dividends declared per share

 

 

0.26

 

 

 

0.26

 

 

 

0.26

 

 

 

0.26

 

 

 

0.26

 

 

 

1.04

 

 

 

1.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROA) [1]

 

 

0.79

%

 

 

0.70

%

 

 

0.78

%

 

 

0.87

%

 

 

1.09

%

 

 

0.78

%

 

 

1.01

%

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

 

 

12.55

 

 

 

10.95

 

 

 

12.12

 

 

 

13.97

 

 

 

18.30

 

 

 

12.38

 

 

 

15.47

 

Average shareholders’ equity to average assets

 

 

6.32

 

 

 

6.39

 

 

 

6.40

 

 

 

6.23

 

 

 

5.97

 

 

 

6.34

 

 

 

6.51

 

Efficiency ratio [2]

 

 

64.12

 

 

 

63.91

 

 

 

63.17

 

 

 

64.58

 

 

 

59.56

 

 

 

63.95

 

 

 

63.00

 

Net interest margin (NIM) [1]

 

 

2.84

 

 

 

2.88

 

 

 

2.96

 

 

 

3.08

 

 

 

3.17

 

 

 

2.94

 

 

 

3.09

 

Dividend payout ratio [3]

 

 

47.27

 

 

 

53.06

 

 

 

49.06

 

 

 

43.33

 

 

 

35.14

 

 

 

47.93

 

 

 

38.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average loans, including loans held for sale

 

$

5,458,245

 

 

$

5,507,248

 

 

$

5,543,398

 

 

$

5,525,988

 

 

$

5,498,800

 

 

$

5,508,530

 

 

$

5,298,573

 

Average interest-earning assets

 

 

7,208,613

 

 

 

7,199,866

 

 

 

7,155,606

 

 

 

7,112,377

 

 

 

7,103,841

 

 

 

7,169,463

 

 

 

7,003,232

 

Average assets

 

 

7,498,097

 

 

 

7,510,537

 

 

 

7,463,629

 

 

 

7,443,767

 

 

 

7,389,712

 

 

 

7,479,243

 

 

 

7,340,261

 

Average deposits

 

 

6,730,883

 

 

 

6,738,071

 

 

 

6,674,650

 

 

 

6,655,660

 

 

 

6,673,922

 

 

 

6,700,127

 

 

 

6,604,049

 

Average interest-bearing liabilities

 

 

5,023,321

 

 

 

4,999,820

 

 

 

4,908,120

 

 

 

4,820,660

 

 

 

4,708,045

 

 

 

4,938,705

 

 

 

4,530,347

 

Average shareholders’ equity

 

 

473,708

 

 

 

480,118

 

 

 

477,711

 

 

 

463,556

 

 

 

441,084

 

 

 

473,819

 

 

 

477,775

 

 

[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)

 

 

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

REGULATORY CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

Central Pacific Financial Corp.

 

 

 

 

 

 

 

 

 

 

Leverage ratio

 

 

8.8

%

 

 

8.7

%

 

 

8.7

%

 

 

8.6

%

 

 

8.5

%

Tier 1 risk-based capital ratio

 

 

12.4

 

 

 

11.9

 

 

 

11.8

 

 

 

11.5

 

 

 

11.3

 

Total risk-based capital ratio

 

 

14.6

 

 

 

14.1

 

 

 

13.9

 

 

 

13.6

 

 

 

13.5

 

Common equity tier 1 capital ratio

 

 

11.4

 

 

 

11.0

 

 

 

10.9

 

 

 

10.6

 

 

 

10.5

 

Central Pacific Bank

 

 

 

 

 

 

 

 

 

 

Leverage ratio

 

 

9.2

 

 

 

9.1

 

 

 

9.1

 

 

 

9.0

 

 

 

9.0

 

Tier 1 risk-based capital ratio

 

 

12.9

 

 

 

12.4

 

 

 

12.3

 

 

 

12.0

 

 

 

11.9

 

Total risk-based capital ratio

 

 

14.1

 

 

 

13.7

 

 

 

13.5

 

 

 

13.2

 

 

 

13.1

 

Common equity tier 1 capital ratio

 

 

12.9

 

 

 

12.4

 

 

 

12.3

 

 

 

12.0

 

 

 

11.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

(dollars in thousands, except for per share amounts)

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

Total loans, net of deferred fees and costs

 

$

5,438,982

 

 

$

5,508,710

 

 

$

5,520,683

 

 

$

5,557,397

 

 

$

5,555,466

 

Total assets

 

 

7,642,796

 

 

 

7,637,924

 

 

 

7,567,592

 

 

 

7,521,247

 

 

 

7,432,763

 

Total deposits

 

 

6,847,592

 

 

 

6,874,745

 

 

 

6,805,737

 

 

 

6,746,968

 

 

 

6,736,223

 

Long-term debt

 

 

156,102

 

 

 

156,041

 

 

 

155,981

 

 

 

155,920

 

 

 

105,859

 

Total shareholders’ equity

 

 

503,815

 

 

 

468,598

 

 

 

476,279

 

 

 

470,926

 

 

 

452,871

 

Total shareholders’ equity to total assets

 

 

6.59

%

 

 

6.14

%

 

 

6.29

%

 

 

6.26

%

 

 

6.09

%

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses ("ACL")

 

$

63,934

 

 

$

64,517

 

 

$

63,849

 

 

$

63,099

 

 

$

63,738

 

Nonaccrual loans

 

 

7,008

 

 

 

6,652

 

 

 

11,061

 

 

 

5,313

 

 

 

5,251

 

Non-performing assets ("NPA")

 

 

7,008

 

 

 

6,652

 

 

 

11,061

 

 

 

5,313

 

 

 

5,251

 

Ratio of ACL to total loans

 

 

1.18

%

 

 

1.17

%

 

 

1.16

%

 

 

1.14

%

 

 

1.15

%

Ratio of NPA to total assets

 

 

0.09

%

 

 

0.09

%

 

 

0.15

%

 

 

0.07

%

 

 

0.07

%

 

 

 

 

 

 

 

 

 

 

 

PER SHARE OF COMMON STOCK OUTSTANDING

 

 

 

 

 

 

 

 

 

 

Book value per common share

 

$

18.63

 

 

$

17.33

 

 

$

17.61

 

 

$

17.44

 

 

$

16.76

 

Closing market price per common share

 

 

19.68

 

 

 

16.68

 

 

 

15.71

 

 

 

17.90

 

 

 

20.28

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

 

 

 

 

 

 

 

TABLE 2

 

 

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

(Dollars in thousands, except share data)

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and due from financial institutions

 

$

116,181

 

$

108,818

 

 

$

129,071

 

 

$

108,535

 

 

$

97,150

 

Interest-bearing deposits in other financial institutions

 

 

406,256

 

 

329,913

 

 

 

181,913

 

 

 

90,247

 

 

 

14,894

 

Investment securities:

 

 

 

 

 

 

 

 

 

Available-for-sale debt securities, at fair value

 

 

647,210

 

 

625,253

 

 

 

664,071

 

 

 

687,188

 

 

 

671,794

 

Held-to-maturity debt securities, at amortized cost; fair value of: $565,178 at December 31, 2023, $531,887 at September 30, 2023, $581,222 at June 30, 2023, $599,300 at March 31, 2023, and $596,780 at December 31, 2022

 

 

632,338

 

 

640,053

 

 

 

649,946

 

 

 

658,596

 

 

 

664,883

 

Total investment securities

 

 

1,279,548

 

 

1,265,306

 

 

 

1,314,017

 

 

 

1,345,784

 

 

 

1,336,677

 

Loans held for sale, at fair value

 

 

1,778

 

 

 

 

 

2,593

 

 

 

 

 

 

1,105

 

Loans, net of deferred fees and costs

 

 

5,438,982

 

 

5,508,710

 

 

 

5,520,683

 

 

 

5,557,397

 

 

 

5,555,466

 

Less: allowance for credit losses

 

 

63,934

 

 

64,517

 

 

 

63,849

 

 

 

63,099

 

 

 

63,738

 

Loans, net of allowance for credit losses

 

 

5,375,048

 

 

5,444,193

 

 

 

5,456,834

 

 

 

5,494,298

 

 

 

5,491,728

 

Premises and equipment, net

 

 

96,184

 

 

97,378

 

 

 

96,479

 

 

 

93,761

 

 

 

91,634

 

Accrued interest receivable

 

 

21,511

 

 

21,529

 

 

 

20,463

 

 

 

20,473

 

 

 

20,345

 

Investment in unconsolidated entities

 

 

41,546

 

 

42,523

 

 

 

45,218

 

 

 

45,953

 

 

 

46,641

 

Mortgage servicing rights

 

 

8,696

 

 

8,797

 

 

 

8,843

 

 

 

8,943

 

 

 

9,074

 

Bank-owned life insurance

 

 

170,706

 

 

168,543

 

 

 

168,136

 

 

 

168,244

 

 

 

167,967

 

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

 

 

6,793

 

 

10,995

 

 

 

10,960

 

 

 

11,960

 

 

 

9,146

 

Right-of-use lease assets

 

 

29,720

 

 

32,294

 

 

 

33,247

 

 

 

34,237

 

 

 

34,985

 

Other assets

 

 

88,829

 

 

107,635

 

 

 

99,818

 

 

 

98,812

 

 

 

111,417

 

Total assets

 

$

7,642,796

 

$

7,637,924

 

 

$

7,567,592

 

 

$

7,521,247

 

 

$

7,432,763

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

1,913,379

 

$

1,969,523

 

 

$

2,009,387

 

 

$

2,028,087

 

 

$

2,092,823

 

Interest-bearing demand

 

 

1,329,189

 

 

1,345,843

 

 

 

1,359,978

 

 

 

1,386,913

 

 

 

1,453,167

 

Savings and money market

 

 

2,209,733

 

 

2,209,550

 

 

 

2,184,652

 

 

 

2,184,675

 

 

 

2,199,028

 

Time

 

 

1,395,291

 

 

1,349,829

 

 

 

1,251,720

 

 

 

1,147,293

 

 

 

991,205

 

Total deposits

 

 

6,847,592

 

 

6,874,745

 

 

 

6,805,737

 

 

 

6,746,968

 

 

 

6,736,223

 

FHLB advances and other short-term borrowings

 

 

 

 

 

 

 

 

 

 

25,000

 

 

 

5,000

 

Long-term debt, net of unamortized debt issuance costs of: $445 at December 31, 2023, $506 at September 30, 2023, $566 at June 30, 2023, $627 at March 31, 2023 and $688 at December 31, 2022

 

 

156,102

 

 

156,041

 

 

 

155,981

 

 

 

155,920

 

 

 

105,859

 

Lease liabilities

 

 

30,634

 

 

33,186

 

 

 

34,111

 

 

 

35,076

 

 

 

35,889

 

Other liabilities

 

 

104,653

 

 

105,354

 

 

 

95,484

 

 

 

87,357

 

 

 

96,921

 

Total liabilities

 

 

7,138,981

 

 

7,169,326

 

 

 

7,091,313

 

 

 

7,050,321

 

 

 

6,979,892

 

EQUITY

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at December 31, 2023, September 30, 2023, June 30, 2023, March 31, 2023, and December 31, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 27,045,033 at December 31, 2023, 27,043,169 at September 30, 2023, 27,045,792 at June 30, 2023, 27,005,545 at March 31, 2023, and 27,025,070 at December 31, 2022

 

 

405,439

 

 

405,439

 

 

 

405,511

 

 

 

405,866

 

 

 

408,071

 

Additional paid-in capital

 

 

102,982

 

 

102,550

 

 

 

101,997

 

 

 

101,188

 

 

 

101,346

 

Retained earnings

 

 

117,990

 

 

110,156

 

 

 

104,046

 

 

 

96,600

 

 

 

87,438

 

Accumulated other comprehensive loss

 

 

(122,596

)

 

(149,547

)

 

 

(135,275

)

 

 

(132,728

)

 

 

(143,984

)

Total shareholders' equity

 

 

503,815

 

 

468,598

 

 

 

476,279

 

 

 

470,926

 

 

 

452,871

 

Total liabilities and equity

 

$

7,642,796

 

$

7,637,924

 

 

$

7,567,592

 

 

$

7,521,247

 

 

$

7,432,763

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

 

TABLE 3

 

 

 

Three Months Ended

 

Year Ended

 

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

 

Dec 31,

(Dollars in thousands, except per share data)

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

62,429

 

 

$

62,162

 

 

$

60,455

 

$

58,269

 

$

56,682

 

$

243,315

 

 

$

200,280

 

Interest and dividends on investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable investment securities

 

 

7,292

 

 

 

7,016

 

 

 

7,145

 

 

 

7,336

 

 

 

7,104

 

 

 

28,789

 

 

 

28,041

 

Tax-exempt investment securities

 

 

686

 

 

 

709

 

 

 

727

 

 

 

790

 

 

 

776

 

 

 

2,912

 

 

 

3,204

 

Dividends on investment securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

 

Interest on deposits in other financial institutions

 

 

3,597

 

 

 

2,412

 

 

 

877

 

 

 

277

 

 

 

370

 

 

 

7,163

 

 

 

740

 

Dividend income on FHLB stock

 

 

109

 

 

 

113

 

 

 

120

 

 

 

136

 

 

 

105

 

 

 

478

 

 

 

370

 

Total interest income

 

 

74,113

 

 

 

72,412

 

 

 

69,324

 

 

 

66,808

 

 

 

65,037

 

 

 

282,657

 

 

 

232,656

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

 

 

467

 

 

 

460

 

 

 

411

 

 

 

363

 

 

 

333

 

 

 

1,701

 

 

 

806

 

Savings and money market

 

 

7,459

 

 

 

6,464

 

 

 

4,670

 

 

 

3,386

 

 

 

2,488

 

 

 

21,979

 

 

 

4,188

 

Time

 

 

12,741

 

 

 

11,268

 

 

 

8,932

 

 

 

6,264

 

 

 

4,063

 

 

 

39,205

 

 

 

6,114

 

Interest on short-term borrowings

 

 

 

 

 

 

 

 

378

 

 

 

761

 

 

 

393

 

 

 

1,139

 

 

 

1,055

 

Interest on long-term debt

 

 

2,304

 

 

 

2,292

 

 

 

2,199

 

 

 

1,838

 

 

 

1,475

 

 

 

8,633

 

 

 

4,930

 

Total interest expense

 

 

22,971

 

 

 

20,484

 

 

 

16,590

 

 

 

12,612

 

 

 

8,752

 

 

 

72,657

 

 

 

17,093

 

Net interest income

 

 

51,142

 

 

 

51,928

 

 

 

52,734

 

 

 

54,196

 

 

 

56,285

 

 

 

210,000

 

 

 

215,563

 

Provision (credit) for credit losses

 

 

4,653

 

 

 

4,874

 

 

 

4,319

 

 

 

1,852

 

 

 

571

 

 

 

15,698

 

 

 

(1,273

)

Net interest income after provision (credit) for credit losses

 

 

46,489

 

 

 

47,054

 

 

 

48,415

 

 

 

52,344

 

 

 

55,714

 

 

 

194,302

 

 

 

216,836

 

Other operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income

 

 

611

 

 

 

765

 

 

 

690

 

 

 

526

 

 

 

667

 

 

 

2,592

 

 

 

3,810

 

Service charges on deposit accounts

 

 

2,312

 

 

 

2,193

 

 

 

2,137

 

 

 

2,111

 

 

 

2,172

 

 

 

8,753

 

 

 

8,197

 

Other service charges and fees

 

 

5,349

 

 

 

5,203

 

 

 

4,994

 

 

 

4,985

 

 

 

4,972

 

 

 

20,531

 

 

 

19,025

 

Income from fiduciary activities

 

 

1,272

 

 

 

1,234

 

 

 

1,068

 

 

 

1,321

 

 

 

1,058

 

 

 

4,895

 

 

 

4,565

 

Net (loss) gain on sales of investment securities

 

 

(1,939

)

 

 

(135

)

 

 

 

 

 

 

 

 

 

 

 

(2,074

)

 

 

8,506

 

Income from bank-owned life insurance

 

 

2,015

 

 

 

379

 

 

 

1,185

 

 

 

1,291

 

 

 

2,187

 

 

 

4,870

 

 

 

1,865

 

Other

 

 

5,552

 

 

 

408

 

 

 

361

 

 

 

775

 

 

 

545

 

 

 

7,096

 

 

 

1,951

 

Total other operating income

 

 

15,172

 

 

 

10,047

 

 

 

10,435

 

 

 

11,009

 

 

 

11,601

 

 

 

46,663

 

 

 

47,919

 

Other operating expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

20,164

 

 

 

19,015

 

 

 

20,848

 

 

 

22,023

 

 

 

22,692

 

 

 

82,050

 

 

 

88,781

 

Net occupancy

 

 

4,676

 

 

 

4,725

 

 

 

4,310

 

 

 

4,474

 

 

 

3,998

 

 

 

18,185

 

 

 

16,963

 

Equipment

 

 

968

 

 

 

1,112

 

 

 

932

 

 

 

946

 

 

 

996

 

 

 

3,958

 

 

 

4,238

 

Communication

 

 

632

 

 

 

809

 

 

 

791

 

 

 

778

 

 

 

696

 

 

 

3,010

 

 

 

2,958

 

Legal and professional services

 

 

2,245

 

 

 

2,359

 

 

 

2,469

 

 

 

2,886

 

 

 

2,677

 

 

 

9,959

 

 

 

10,792

 

Computer software

 

 

4,026

 

 

 

4,473

 

 

 

4,621

 

 

 

4,606

 

 

 

3,996

 

 

 

17,726

 

 

 

14,840

 

Advertising

 

 

1,045

 

 

 

968

 

 

 

942

 

 

 

933

 

 

 

701

 

 

 

3,888

 

 

 

4,151

 

Other

 

 

8,766

 

 

 

6,150

 

 

 

4,990

 

 

 

5,461

 

 

 

4,678

 

 

 

25,367

 

 

 

23,263

 

Total other operating expense

 

 

42,522

 

 

 

39,611

 

 

 

39,903

 

 

 

42,107

 

 

 

40,434

 

 

 

164,143

 

 

 

165,986

 

Income before income taxes

 

 

19,139

 

 

 

17,490

 

 

 

18,947

 

 

 

21,246

 

 

 

26,881

 

 

 

76,822

 

 

 

98,769

 

Income tax expense

 

 

4,273

 

 

 

4,349

 

 

 

4,472

 

 

 

5,059

 

 

 

6,700

 

 

 

18,153

 

 

 

24,841

 

Net income

 

$

14,866

 

 

$

13,141

 

 

$

14,475

 

 

$

16,187

 

 

$

20,181

 

 

$

58,669

 

 

$

73,928

 

Per common share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.55

 

 

$

0.49

 

 

$

0.54

 

 

$

0.60

 

 

$

0.74

 

 

$

2.17

 

 

$

2.70

 

Diluted earnings per share

 

 

0.55

 

 

 

0.49

 

 

 

0.53

 

 

 

0.60

 

 

 

0.74

 

 

 

2.17

 

 

 

2.68

 

Cash dividends declared

 

 

0.26

 

 

 

0.26

 

 

 

0.26

 

 

 

0.26

 

 

 

0.26

 

 

 

1.04

 

 

 

1.04

 

Basic weighted average shares outstanding

 

 

27,044,121

 

 

 

27,042,762

 

 

 

27,024,043

 

 

 

26,999,138

 

 

 

27,134,970

 

 

 

27,027,681

 

 

 

27,398,445

 

Diluted weighted average shares outstanding

 

 

27,097,285

 

 

 

27,079,484

 

 

 

27,071,478

 

 

 

27,122,012

 

 

 

27,303,249

 

 

 

27,080,518

 

 

 

27,567,780

 

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

 

 

December 31, 2023

 

September 30, 2023

 

December 31, 2022

 

 

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

 

$

261,594

 

5.45

%

 

$

3,597

 

$

177,780

 

5.38

%

 

$

2,412

 

$

38,610

 

3.80

%

 

$

370

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,331,752

 

 

2.19

 

 

 

7,292

 

 

 

1,354,039

 

 

2.07

 

 

 

7,016

 

 

 

1,399,627

 

 

2.03

 

 

 

7,104

 

Tax-exempt [1]

 

 

146,803

 

 

2.36

 

 

 

868

 

 

 

149,824

 

 

2.40

 

 

 

897

 

 

 

156,079

 

 

2.52

 

 

 

982

 

Total investment securities

 

 

1,478,555

 

 

2.21

 

 

 

8,160

 

 

 

1,503,863

 

 

2.10

 

 

 

7,913

 

 

 

1,555,706

 

 

2.08

 

 

 

8,086

 

Loans, including loans held for sale

 

 

5,458,245

 

 

4.55

 

 

 

62,429

 

 

 

5,507,248

 

 

4.49

 

 

 

62,162

 

 

 

5,498,800

 

 

4.10

 

 

 

56,682

 

FHLB stock

 

 

10,219

 

 

4.30

 

 

 

109

 

 

 

10,975

 

 

4.09

 

 

 

113

 

 

 

10,725

 

 

3.90

 

 

 

105

 

Total interest-earning assets

 

 

7,208,613

 

 

4.10

 

 

 

74,295

 

 

 

7,199,866

 

 

4.01

 

 

 

72,600

 

 

 

7,103,841

 

 

3.66

 

 

 

65,243

 

Noninterest-earning assets

 

 

289,484

 

 

 

 

 

 

 

310,671

 

 

 

 

 

 

 

285,871

 

 

 

 

 

Total assets

 

$

7,498,097

 

 

 

 

 

 

$

7,510,537

 

 

 

 

 

 

$

7,389,712

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

1,315,943

 

 

0.14

%

 

$

467

 

 

$

1,339,294

 

 

0.14

%

 

$

460

 

 

$

1,441,787

 

 

0.09

%

 

$

333

 

Savings and money market deposits

 

 

2,217,065

 

 

1.33

 

 

 

7,459

 

 

 

2,209,835

 

 

1.16

 

 

 

6,464

 

 

 

2,209,166

 

 

0.45

 

 

 

2,488

 

Time deposits up to $250,000

 

 

478,085

 

 

2.80

 

 

 

3,373

 

 

 

449,844

 

 

2.33

 

 

 

2,637

 

 

 

311,639

 

 

1.50

 

 

 

1,174

 

Time deposits over $250,000

 

 

856,159

 

 

4.34

 

 

 

9,368

 

 

 

844,842

 

 

4.05

 

 

 

8,631

 

 

 

595,133

 

 

1.93

 

 

 

2,889

 

Total interest-bearing deposits

 

 

4,867,252

 

 

1.68

 

 

 

20,667

 

 

 

4,843,815

 

 

1.49

 

 

 

18,192

 

 

 

4,557,725

 

 

0.60

 

 

 

6,884

 

FHLB advances and other short-term borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44,491

 

 

3.51

 

 

 

393

 

Long-term debt

 

 

156,069

 

 

5.86

 

 

 

2,304

 

 

 

156,005

 

 

5.83

 

 

 

2,292

 

 

 

105,829

 

 

5.53

 

 

 

1,475

 

Total interest-bearing liabilities

 

 

5,023,321

 

 

1.81

 

 

 

22,971

 

 

 

4,999,820

 

 

1.63

 

 

 

20,484

 

 

 

4,708,045

 

 

0.74

 

 

 

8,752

 

Noninterest-bearing deposits

 

 

1,863,631

 

 

 

 

 

 

 

1,894,256

 

 

 

 

 

 

 

2,116,197

 

 

 

 

 

Other liabilities

 

 

137,437

 

 

 

 

 

 

 

136,343

 

 

 

 

 

 

 

124,386

 

 

 

 

 

Total liabilities

 

 

7,024,389

 

 

 

 

 

 

 

7,030,419

 

 

 

 

 

 

 

6,948,628

 

 

 

 

 

Total equity

 

 

473,708

 

 

 

 

 

 

 

480,118

 

 

 

 

 

 

 

441,084

 

 

 

 

 

Total liabilities and equity

 

$

7,498,097

 

 

 

 

 

 

$

7,510,537

 

 

 

 

 

 

$

7,389,712

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

51,324

 

 

 

 

 

 

$

52,116

 

 

 

 

 

 

$

56,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

 

2.29

%

 

 

 

 

 

2.38

%

 

 

 

 

 

2.92

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

2.84

%

 

 

 

 

 

2.88

%

 

 

 

 

 

3.17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[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%.

Note: Certain prior period information has been reclassified to conform to the current period presentation.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)

(Unaudited)

 

TABLE 5

 

 

 

Year Ended

 

Year Ended

 

 

December 31, 2023

 

December 31, 2022

 

 

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

 

$

134,150

 

5.34

%

 

$

7,163

 

$

80,096

 

0.92

%

 

$

740

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,365,067

 

 

2.11

 

 

 

28,789

 

 

 

1,455,246

 

 

1.93

 

 

 

28,062

 

Tax-exempt [1]

 

 

150,399

 

 

2.45

 

 

 

3,686

 

 

 

159,120

 

 

2.55

 

 

 

4,056

 

Total investment securities

 

 

1,515,466

 

 

2.14

 

 

 

32,475

 

 

 

1,614,366

 

 

1.99

 

 

 

32,118

 

Loans, including loans held for sale

 

 

5,508,530

 

 

4.42

 

 

 

243,315

 

 

 

5,298,573

 

 

3.78

 

 

 

200,280

 

FHLB stock

 

 

11,317

 

 

4.23

 

 

 

478

 

 

 

10,197

 

 

3.63

 

 

 

370

 

Total interest-earning assets

 

 

7,169,463

 

 

3.95

 

 

 

283,431

 

 

 

7,003,232

 

 

3.33

 

 

 

233,508

 

Noninterest-earning assets

 

 

309,780

 

 

 

 

 

 

 

337,029

 

 

 

 

 

Total assets

 

$

7,479,243

 

 

 

 

 

 

$

7,340,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

1,359,240

 

 

0.13

%

 

$

1,701

 

 

$

1,438,232

 

 

0.06

%

 

$

806

 

Savings and money market deposits

 

 

2,195,763

 

 

1.00

 

 

 

21,979

 

 

 

2,208,630

 

 

0.19

 

 

 

4,188

 

Time deposits up to $250,000

 

 

415,541

 

 

2.15

 

 

 

8,917

 

 

 

245,599

 

 

0.70

 

 

 

1,723

 

Time deposits over $250,000

 

 

795,917

 

 

3.81

 

 

 

30,288

 

 

 

494,943

 

 

0.89

 

 

 

4,391

 

Total interest-bearing deposits

 

 

4,766,461

 

 

1.32

 

 

 

62,885

 

 

 

4,387,404

 

 

0.25

 

 

 

11,108

 

FHLB advances and other short-term borrowings

 

 

23,322

 

 

4.88

 

 

 

1,139

 

 

 

37,211

 

 

2.84

 

 

 

1,055

 

Long-term debt

 

 

148,922

 

 

5.80

 

 

 

8,633

 

 

 

105,732

 

 

4.66

 

 

 

4,930

 

Total interest-bearing liabilities

 

 

4,938,705

 

 

1.47

 

 

 

72,657

 

 

 

4,530,347

 

 

0.38

 

 

 

17,093

 

Noninterest-bearing deposits

 

 

1,933,666

 

 

 

 

 

 

 

2,216,645

 

 

 

 

 

Other liabilities

 

 

133,053

 

 

 

 

 

 

 

115,478

 

 

 

 

 

Total liabilities

 

 

7,005,424

 

 

 

 

 

 

 

6,862,470

 

 

 

 

 

Shareholders’ equity

 

 

473,819

 

 

 

 

 

 

 

477,775

 

 

 

 

 

Non-controlling interest

 

 

 

 

 

 

 

 

 

16

 

 

 

 

 

Total equity

 

 

473,819

 

 

 

 

 

 

 

477,791

 

 

 

 

 

Total liabilities and equity

 

$

7,479,243

 

 

 

 

 

 

$

7,340,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

210,774

 

 

 

 

 

 

$

216,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

 

2.48

%

 

 

 

 

 

2.95

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

2.94

%

 

 

 

 

 

3.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[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%.

Note: Certain prior period information has been reclassified to conform to the current period presentation.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Loans by Geographic Distribution

(Unaudited)

 

TABLE 6

 

 

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

(Dollars in thousands)

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

HAWAII:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial:

 

 

 

 

 

 

 

 

 

 

Small Business Administration Paycheck Protection Program ("SBA PPP")

 

$

1,284

 

$

1,410

 

$

1,565

 

$

1,821

 

$

2,555

Other

 

 

420,452

 

 

 

405,023

 

 

 

373,036

 

 

 

375,158

 

 

 

383,665

 

Real estate:

 

 

 

 

 

 

 

 

 

 

Construction

 

 

163,337

 

 

 

174,057

 

 

 

168,012

 

 

 

154,303

 

 

 

150,208

 

Residential mortgage

 

 

1,927,789

 

 

 

1,930,740

 

 

 

1,942,906

 

 

 

1,941,230

 

 

 

1,940,999

 

Home equity

 

 

736,524

 

 

 

753,980

 

 

 

750,760

 

 

 

743,908

 

 

 

739,380

 

Commercial mortgage

 

 

1,063,969

 

 

 

1,045,625

 

 

 

1,037,826

 

 

 

1,030,086

 

 

 

1,029,708

 

Consumer

 

 

322,346

 

 

 

338,248

 

 

 

327,790

 

 

 

342,922

 

 

 

346,789

 

Total loans, net of deferred fees and costs

 

 

4,635,701

 

 

 

4,649,083

 

 

 

4,601,895

 

 

 

4,589,428

 

 

 

4,593,304

 

Less: Allowance for credit losses

 

 

48,189

 

 

 

48,105

 

 

 

44,828

 

 

 

44,062

 

 

 

45,169

 

Loans, net of allowance for credit losses

 

$

4,587,512

 

 

$

4,600,978

 

 

$

4,557,067

 

 

$

4,545,366

 

 

$

4,548,135

 

 

 

 

 

 

 

 

 

 

 

 

U.S. MAINLAND: [1]

 

 

 

 

 

 

 

 

 

 

Commercial and industrial:

 

 

 

 

 

 

 

 

 

 

Other

 

 

153,971

 

 

 

157,373

 

 

 

170,557

 

 

 

179,906

 

 

 

160,282

 

Real estate:

 

 

 

 

 

 

 

 

 

 

Construction

 

 

22,182

 

 

 

37,455

 

 

 

32,807

 

 

 

27,171

 

 

 

16,515

 

Commercial mortgage

 

 

318,933

 

 

 

319,802

 

 

 

329,736

 

 

 

331,546

 

 

 

333,367

 

Consumer

 

 

308,195

 

 

 

344,997

 

 

 

385,688

 

 

 

429,346

 

 

 

451,998

 

Total loans, net of deferred fees and costs

 

 

803,281

 

 

 

859,627

 

 

 

918,788

 

 

 

967,969

 

 

 

962,162

 

Less: Allowance for credit losses

 

 

15,745

 

 

 

16,412

 

 

 

19,021

 

 

 

19,037

 

 

 

18,569

 

Loans, net of allowance for credit losses

 

$

787,536

 

 

$

843,215

 

 

$

899,767

 

 

$

948,932

 

 

$

943,593

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial:

 

 

 

 

 

 

 

 

 

 

SBA PPP

 

$

1,284

 

 

$

1,410

 

 

$

1,565

 

 

$

1,821

 

 

$

2,555

 

Other

 

 

574,423

 

 

 

562,396

 

 

 

543,593

 

 

 

555,064

 

 

 

543,947

 

Real estate:

 

 

 

 

 

 

 

 

 

 

Construction

 

 

185,519

 

 

 

211,512

 

 

 

200,819

 

 

 

181,474

 

 

 

166,723

 

Residential mortgage

 

 

1,927,789

 

 

 

1,930,740

 

 

 

1,942,906

 

 

 

1,941,230

 

 

 

1,940,999

 

Home equity

 

 

736,524

 

 

 

753,980

 

 

 

750,760

 

 

 

743,908

 

 

 

739,380

 

Commercial mortgage

 

 

1,382,902

 

 

 

1,365,427

 

 

 

1,367,562

 

 

 

1,361,632

 

 

 

1,363,075

 

Consumer

 

 

630,541

 

 

 

683,245

 

 

 

713,478

 

 

 

772,268

 

 

 

798,787

 

Total loans, net of deferred fees and costs

 

 

5,438,982

 

 

 

5,508,710

 

 

 

5,520,683

 

 

 

5,557,397

 

 

 

5,555,466

 

Less: Allowance for credit losses

 

 

63,934

 

 

 

64,517

 

 

 

63,849

 

 

 

63,099

 

 

 

63,738

 

Loans, net of allowance for credit losses

 

$

5,375,048

 

 

$

5,444,193

 

 

$

5,456,834

 

 

$

5,494,298

 

 

$

5,491,728

 

 

 

 

 

 

 

 

 

 

 

 

[1] U.S. Mainland includes territories of the United States.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Deposits

(Unaudited)

 

TABLE 7

 

 

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

(Dollars in thousands)

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

Noninterest-bearing demand deposits

 

$

1,913,379

 

$

1,969,523

 

$

2,009,387

 

$

2,028,087

 

$

2,092,823

Interest-bearing demand deposits

 

 

1,329,189

 

 

 

1,345,843

 

 

 

1,359,978

 

 

 

1,386,913

 

 

 

1,453,167

 

Savings and money market deposits

 

 

2,209,733

 

 

 

2,209,550

 

 

 

2,184,652

 

 

 

2,184,675

 

 

 

2,199,028

 

Time deposits up to $250,000

 

 

533,898

 

 

 

465,543

 

 

 

427,864

 

 

 

372,150

 

 

 

330,148

 

Core deposits

 

 

5,986,199

 

 

 

5,990,459

 

 

 

5,981,881

 

 

 

5,971,825

 

 

 

6,075,166

 

 

 

 

 

 

 

 

 

 

 

 

Government time deposits

 

 

374,581

 

 

 

400,130

 

 

 

383,426

 

 

 

360,501

 

 

 

290,057

 

Other time deposits greater than $250,000

 

 

486,812

 

 

 

484,156

 

 

 

440,430

 

 

 

414,642

 

 

 

371,000

 

Total time deposits greater than $250,000

 

 

861,393

 

 

 

884,286

 

 

 

823,856

 

 

 

775,143

 

 

 

661,057

 

Total deposits

 

$

6,847,592

 

 

$

6,874,745

 

 

$

6,805,737

 

 

$

6,746,968

 

 

$

6,736,223

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Nonperforming Assets and Accruing Loans 90+ Days Past Due

(Unaudited)

 

TABLE 8

 

 

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

(Dollars in thousands)

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

Nonaccrual loans:

 

 

 

 

 

 

 

 

Commercial and industrial:

 

 

 

 

 

 

 

 

Other

 

$

432

 

 

$

352

 

 

$

319

 

$

264

 

 

$

297

 

Real estate:

 

 

 

 

 

 

 

 

Construction

 

 

 

 

 

 

 

 

4,851

 

 

 

 

 

Residential mortgage

 

 

4,962

 

 

 

4,949

 

 

 

4,385

 

3,445

 

 

 

3,808

 

Home equity

 

 

834

 

 

 

677

 

 

 

797

 

712

 

 

 

570

 

Commercial mortgage

 

 

77

 

 

 

77

 

 

 

77

 

77

 

 

 

 

Consumer

 

 

703

 

 

 

597

 

 

 

632

 

815

 

 

 

576

 

Total nonaccrual loans

 

 

7,008

 

 

 

6,652

 

 

 

11,061

 

5,313

 

 

 

5,251

 

Foreclosed real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets ("NPAs")

 

 

7,008

 

 

 

6,652

 

 

 

11,061

 

5,313

 

 

 

5,251

 

Accruing loans 90+ days past due:

 

 

 

 

 

 

 

 

Commercial and industrial:

 

 

 

 

 

 

 

 

SBA PPP

 

 

 

 

 

 

 

 

 

 

 

 

13

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

26

 

Real estate:

 

 

 

 

 

 

 

 

Residential mortgage

 

 

 

 

 

794

 

 

 

959

 

 

 

 

559

 

Home equity

 

 

229

 

 

 

 

 

 

133

 

 

 

 

 

Consumer

 

 

1,083

 

 

 

2,120

 

 

 

2,207

 

1,908

 

 

 

1,240

 

Total accruing loans 90+ days past due

 

 

1,312

 

 

 

2,914

 

 

 

3,299

 

1,908

 

 

 

1,838

 

Total NPAs and accruing loans 90+ days past due

 

$

8,320

 

 

$

9,566

 

 

$

14,360

 

$

7,221

 

 

$

7,089

 

 

 

 

 

 

 

 

 

 

Ratio of total nonaccrual loans to total loans

 

 

0.13

%

 

 

0.12

%

 

 

0.20

%

0.10

%

 

 

0.09

%

Ratio of total NPAs to total loans and foreclosed real estate

 

 

0.13

%

 

 

0.12

%

 

 

0.20

%

0.10

%

 

 

0.09

%

Ratio of total NPAs and accruing loans 90+ days past due to total loans and foreclosed real estate

 

 

0.15

%

 

 

0.17

%

 

 

0.26

%

0.13

%

 

 

0.13

%

 

 

 

 

 

 

 

 

 

Quarter-to-quarter changes in NPAs:

 

 

 

 

 

 

 

 

Balance at beginning of quarter

 

$

6,652

 

 

$

11,061

 

 

$

5,313

 

$

5,251

 

 

$

4,220

 

Additions

 

 

1,836

 

 

 

2,311

 

 

 

7,105

 

1,609

 

 

 

2,162

 

Reductions:

 

 

 

 

 

 

 

 

Payments

 

 

(268

)

 

 

(5,718

)

 

 

(290

)

(505

)

 

 

(198

)

Return to accrual status

 

 

(137

)

 

 

(207

)

 

 

(212

)

(14

)

 

 

(44

)

Net charge-offs, valuation and other adjustments

 

 

(1,075

)

 

 

(795

)

 

 

(855

)

(1,028

)

 

 

(889

)

Total reductions

 

 

(1,480

)

 

 

(6,720

)

 

 

(1,357

)

(1,547

)

 

 

(1,131

)

Balance at end of quarter

 

$

7,008

 

 

$

6,652

 

 

$

11,061

 

$

5,313

 

 

$

5,251

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Allowance for Credit Losses on Loans

(Unaudited)

 

TABLE 9

 

 

 

Three Months Ended

 

Year Ended

 

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

 

Dec 31,

(Dollars in thousands)

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Allowance for credit losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

64,517

 

 

$

63,849

 

 

$

63,099

 

 

$

63,738

 

 

$

64,382

 

 

$

63,738

 

 

$

68,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for credit losses on loans

 

 

4,959

 

 

 

4,526

 

 

 

4,135

 

 

 

1,615

 

 

 

1,032

 

 

 

15,235

 

 

 

288

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charge-offs:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

419

 

 

 

402

 

 

 

362

 

 

 

779

 

 

 

678

 

 

 

1,962

 

 

 

1,969

 

Consumer

 

 

5,976

 

 

 

4,710

 

 

 

3,873

 

 

 

2,686

 

 

 

1,881