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Central Pacific Financial Reports Fourth Quarter Earnings of $20.2 Million and Full Year 2022 Earnings of $73.9 Million

Business Wire 25-Jan-2023 5:30 AM

  • Net income of $20.2 million, or $0.74 per diluted share for the fourth quarter. Net income of $73.9 million, or $2.68 per diluted share for the 2022 year.
  • ROA of 1.09% and ROE of 18.30% for the fourth quarter. ROA of 1.01% and ROE of 15.47% for the 2022 year.
  • Total loans of $5.56 billion increased by $133.3 million, or 2.5% (10.0% annualized) in the fourth quarter. Total loans increased by $453.8 million, or 8.9% for the 2022 year.
  • Total deposits of $6.74 billion increased by $179.8 million, or 2.7% (10.8% annualized) in the fourth quarter. Total deposits increased by $97.1 million, or 1.5% for the 2022 year.
  • Net interest income increased by $0.9 million, or 1.7% from the previous quarter. Net interest margin of 3.17% was consistent with the previous quarter. Net interest margin, excluding PPP loans, of 3.16% increased by 3 bps from the previous quarter.
  • Board of Directors approved quarterly cash dividend of $0.26 per share and new $25 million share repurchase program.

Central Pacific Financial Corp. (NYSE:CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), today reported net income for the fourth quarter of 2022 of $20.2 million, compared to $16.7 million in the previous quarter and $22.3 million in the year-ago quarter. Fully diluted earnings per share ("EPS") of $0.74 for the fourth quarter of 2022 reflected a 21% increase from $0.61 in the previous quarter and a 8% decrease from $0.80 in the year-ago quarter. For the 2022 year, net income was $73.9 million, or EPS of $2.68, compared to net income of $79.9 million, or EPS of $2.83 last year.

"We ended the 2022 year successfully with strong loan, deposit and net interest income growth," said Arnold Martines, President and Chief Executive Officer. "At the same time, we continued to have solid asset quality, liquidity and capital positions. We believe the Hawaii economy will be resilient and fare better than the rest of the country because of our strong housing and tourism markets, as well as the large military presence in our State. I would like to thank our hard-working and committed team of employees, as well as our customers for their ongoing support of our bank."

Earnings Highlights

Net interest income for the fourth quarter of 2022 was $56.3 million, an increase of $0.9 million, or 1.7% from the previous quarter, and an increase of $3.2 million, or 6.0% from the year-ago quarter. The sequential quarter increase in net interest income is primarily due to higher asset yields and continued strong loan growth which outpaced the increase in rates paid on deposits. Net interest income in the fourth quarter of 2022 included $0.1 million in net PPP interest income and fees, compared to $0.7 million and $4.7 million, in the previous and year-ago quarters, respectively. Net interest income for the 2022 year included $3.6 million in net PPP interest income and fees, compared to $26.4 million for the 2021 year.

Net interest margin ("NIM") for the fourth quarter of 2022 was 3.17%, which remained unchanged from the previous quarter and increased by 9 basis points ("bps") from the year-ago quarter. NIM, excluding PPP loans, of 3.16% increased by 3 bps from the previous quarter. The increase in NIM, excluding PPP loans, was primarily attributable to higher yields earned during the quarter on investment securities and core loans, or total loans excluding PPP loans, partially offset by increases in rates paid on deposits and borrowings. Additional information on average balances, interest income and expenses and yields and rates is presented in Tables 4, 5 and 10.

In the fourth quarter of 2022, the Company recorded a provision for credit losses of $0.6 million, compared to a provision of $0.4 million in the previous quarter and a release of the credit loss reserves of $7.7 million in the year-ago quarter.

Other operating income for the fourth quarter of 2022 totaled $11.6 million, compared to $9.6 million in the previous quarter and $11.6 million in the year-ago quarter. The increase from the previous quarter was primarily due to higher income from bank-owned life insurance. Additional information on other operating income is presented in Table 3.

Other operating expense for the fourth quarter of 2022 totaled $40.4 million, compared to $42.0 million in the previous quarter and $42.4 million in the year-ago quarter. The decrease in other operating expense from the previous quarter was primarily due to lower net occupancy and advertising expenses. Additional information on other operating expense is presented in Table 3.

The efficiency ratio for the fourth quarter of 2022 was 59.56%, compared to 64.62% in the previous quarter and 65.61% in the year-ago quarter.

The effective tax rate for the fourth quarter of 2022 was 24.9%, compared to 26.2% in the previous quarter and 25.4% in the year-ago quarter.

Balance Sheet Highlights

Total assets at December 31, 2022 of $7.43 billion increased by $95.1 million, or 1.3% from $7.34 billion at September 30, 2022, and increased by $13.7 million, or 0.2% from $7.42 billion at December 31, 2021.

Total loans, net of deferred fees and costs, at December 31, 2022 of $5.56 billion increased by $133.3 million, or 2.5% from $5.42 billion at September 30, 2022, and increased by $453.8 million, or 8.9%, from $5.10 billion at December 31, 2021. Loans by type and geographic distribution are summarized in Table 6.

Total deposits at December 31, 2022 of $6.74 billion increased by $179.8 million or 2.7% from $6.56 billion at September 30, 2022, and increased by $97.1 million, or 1.5%, from $6.64 billion at December 31, 2021. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $6.08 billion at December 31, 2022, and increased by $38.8 million from September 30, 2022. Core deposit and total deposit balances are summarized in Table 7.

Asset Quality

Nonperforming assets at December 31, 2022 totaled $5.3 million, or 0.07% of total assets, compared to $4.2 million, or 0.06% of total assets at September 30, 2022, and $5.9 million, or 0.08% of total assets at December 31, 2021. Additional information on nonperforming assets, past due and restructured loans is presented in Table 8.

Net charge-offs in the fourth quarter of 2022 totaled $1.7 million, compared to net charge-offs of $1.6 million in the previous quarter, and net recoveries of $0.9 million in the year-ago quarter.

The allowance for credit losses, as a percentage of total loans at December 31, 2022 was 1.15%, compared to 1.19% at September 30, 2022, and 1.33% at December 31, 2021. Additional information on net charge-offs and recoveries and the allowance for credit losses is presented in Table 9.

Capital

Total shareholders' equity was $452.9 million at December 31, 2022, compared to $438.5 million and $558.2 million at September 30, 2022 and December 31, 2021, respectively. The decline in shareholders' equity from a year ago was primarily due to an increase in unrealized losses on our available-for-sale investment securities portfolio which is included in accumulated other comprehensive income, and were driven by the rising interest rate environment.

At December 31, 2022, the Company's leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios were 8.5%, 11.3%, 13.5%, and 10.5%, respectively, compared to 8.7%, 11.5%, 13.7%, and 10.6%, respectively, at September 30, 2022.

On January 24, 2023, 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, 2023 to shareholders of record at the close of business on February 28, 2023.

On January 24, 2023, the Company's Board of Directors also authorized the repurchase of up to $25 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, which had $10.3 million in remaining repurchase authority as of December 31, 2022. During the fourth quarter of 2022, the Company repurchased 241,203 shares of common stock, at a total cost of $4.9 million, or an average cost per share of $20.41. During the year ended December 31, 2022, the Company returned $49.2 million in capital to its shareholders through cash dividends and share repurchases.

Key Business Highlights during the fourth quarter included the following:

  • Arnold Martines, a veteran of the local banking industry and Central Pacific Bank, was promoted to President & CEO of Central Pacific Bank and Central Pacific Financial.
  • Newsweek named Central Pacific Bank one of the Best Banks in Hawaii.
  • Jason Fujimoto, President & CEO of HPM Building Supply on the island of Hawaii, was named to the boards of CPB and CPF.
  • The Central Pacific Bank Foundation again contributed generously to the local community with total donations in 2022 of $1.3 million.
  • In the community, the Bank launched a major small business marketing campaign aimed at a key customer segment and area of strategic focus for the Bank.

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 1-844-200-6205 (access code: 274117). A playback of the call will be available through February 24, 2023 by dialing 1-866-813-9403 (access code: 649427) 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 $7.43 billion in assets as of December 31, 2022. Central Pacific Bank, its primary subsidiary, operates 27 branches and 64 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 CPF Listed NYSE

Forward-Looking Statements ("FLS")

This document may contain FLS concerning: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, the payment or nonpayment of dividends, capital position, credit losses, net interest margin or other financial items; statements of plans, objectives and expectations of Central Pacific Financial Corp. or its management or Board of Directors, including those relating to business plans, use of capital resources, products or services and regulatory developments and regulatory actions; statements of future economic performance including anticipated performance results from our business initiatives; or any statements of the assumptions underlying or relating to any of the foregoing. Words such as "believes," "plans," "anticipates," "expects," "intends," "forecasts," "hopes," "targeting," "continue," "remain," "will," "should," "estimates," "may" and other similar expressions are intended to identify FLS but are not the exclusive means of identifying such statements.

While we believe that our FLS and the assumptions underlying them are reasonably based, such statements and assumptions are by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could differ materially from those statements or projections for a variety of reasons, including, but not limited to: the effects of inflation and rising interest rates; the adverse effects of the COVID-19 pandemic virus (and ongoing pandemic variants) on local, national and international economies, including, but not limited to, the adverse impact on tourism and construction in the State of Hawaii, our borrowers, customers, third-party contractors, vendors and employees as well as the effects of government programs and initiatives in response to COVID-19; the impact of our participation in the Paycheck Protection Program ("PPP") and fulfillment of government guarantees on our PPP loans; the increase in inventory or adverse conditions in the real estate market and deterioration in the construction industry; adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality, and losses in our loan portfolio; our ability to achieve the objectives of our RISE2020 initiative; our ability to successfully implement and achieve the objectives of our Banking-as-a-Service ("BaaS") initiatives, including adoption of the initiatives by customers and risks faced by any of our bank collaborations including reputational and regulatory risk; the impact of local, national, and international economies and events (including natural disasters such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, earthquakes and pandemic viruses and diseases) on the Company's business and operations and on tourism, the military, and other major industries operating within the Hawaii market and any other markets in which the Company does business; deterioration or malaise in domestic economic conditions, including any destabilization in the financial industry and deterioration of the real estate market, as well as the impact of declining levels of consumer and business confidence in the state of the economy in general and in financial institutions in particular; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), changes in capital standards, other regulatory reform and federal and state legislation, including but not limited to regulations promulgated by the Consumer Financial Protection Bureau (the "CFPB"), government-sponsored enterprise reform, and any related rules and regulations which affect our business operations and competitiveness; the costs and effects of legal and regulatory developments, including legal proceedings or regulatory or other governmental inquiries and proceedings and the resolution thereof, the results of regulatory examinations or reviews and the effect of, and our ability to comply with, any regulations or regulatory orders or actions we are or may become subject to; ability to successfully implement our initiatives to lower our efficiency ratio; the effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System (the "FRB" or the "Federal Reserve"); securities market and monetary fluctuations, including the anticipated replacement of the London Interbank Offered Rate ("LIBOR") Index and the impact on our loans and debt which are tied to that index and uncertainties regarding potential alternative reference rates, including the Secured Overnight Financing Rate ("SOFR"); negative trends in our market capitalization and adverse changes in the price of the Company's common stock; political instability; acts of war or terrorism; changes in consumer spending, borrowings and savings habits; failure to maintain effective internal control over financial reporting or disclosure controls and procedures; cybersecurity and data privacy breaches and the consequence therefrom; the ability to address deficiencies in our internal controls over financial reporting or disclosure controls and procedures; technological changes and developments; changes in the competitive environment among financial holding companies and other financial service providers; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board ("PCAOB"), the Financial Accounting Standards Board ("FASB") and other accounting standard setters and the cost and resources required to implement such changes; our ability to attract and retain key personnel; changes in our personnel, organization, compensation and benefit plans; and our success at managing the risks involved in the foregoing items.

For further information with respect to factors that could cause actual results to materially differ from the expectations or projections stated in the FLS, please see the Company's publicly available Securities and Exchange Commission filings, including the Company's Form 10-K for the last fiscal year and, in particular, the discussion of "Risk Factors" set forth therein. We urge investors to consider all of these factors carefully in evaluating the FLS contained in this 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)

 

2022

 

2022

 

2022

 

2022

 

2021

 

2022

 

2021

CONDENSED INCOME STATEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

56,285

 

 

$

55,365

 

 

$

52,978

 

 

$

50,935

 

 

$

53,096

 

 

$

215,563

 

 

$

211,047

 

Provision (credit) for credit losses

 

 

571

 

 

 

362

 

 

 

989

 

 

 

(3,195

)

 

 

(7,692

)

 

 

(1,273

)

 

 

(14,591

)

Total other operating income

 

 

11,601

 

 

 

9,629

 

 

 

17,138

 

 

 

9,551

 

 

 

11,566

 

 

 

47,919

 

 

 

43,060

 

Total other operating expense

 

 

40,434

 

 

 

41,998

 

 

 

45,349

 

 

 

38,205

 

 

 

42,422

 

 

 

165,986

 

 

 

163,046

 

Income tax expense

 

 

6,700

 

 

 

5,919

 

 

 

6,184

 

 

 

6,038

 

 

 

7,605

 

 

 

24,841

 

 

 

25,758

 

Net income

 

 

20,181

 

 

 

16,715

 

 

 

17,594

 

 

 

19,438

 

 

 

22,327

 

 

 

73,928

 

 

 

79,894

 

Basic earnings per common share

 

$

0.74

 

 

$

0.61

 

 

$

0.64

 

 

$

0.70

 

 

$

0.80

 

 

$

2.70

 

 

$

2.85

 

Diluted earnings per common share

 

 

0.74

 

 

 

0.61

 

 

 

0.64

 

 

 

0.70

 

 

 

0.80

 

 

 

2.68

 

 

 

2.83

 

Dividends declared per common share

 

 

0.26

 

 

 

0.26

 

 

 

0.26

 

 

 

0.26

 

 

 

0.25

 

 

 

1.04

 

 

 

0.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROA) [1]

 

 

1.09

%

 

 

0.91

%

 

 

0.96

%

 

 

1.06

%

 

 

1.22

%

 

 

1.01

%

 

 

1.13

%

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

 

 

18.30

 

 

 

14.49

 

 

 

14.93

 

 

 

14.44

 

 

 

16.05

 

 

 

15.47

 

 

 

14.38

 

Average shareholders' equity to average assets

 

 

5.97

 

 

 

6.30

 

 

 

6.45

 

 

 

7.34

 

 

 

7.61

 

 

 

6.51

 

 

 

7.85

 

Efficiency ratio [2]

 

 

59.56

 

 

 

64.62

 

 

 

64.68

 

 

 

63.16

 

 

 

65.61

 

 

 

63.00

 

 

 

64.16

 

Net interest margin (NIM) [1]

 

 

3.17

 

 

 

3.17

 

 

 

3.05

 

 

 

2.97

 

 

 

3.08

 

 

 

3.09

 

 

 

3.18

 

Dividend payout ratio [3]

 

 

35.14

 

 

 

42.62

 

 

 

40.63

 

 

 

37.14

 

 

 

31.25

 

 

 

38.81

 

 

 

33.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SELECTED AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average loans, including loans held for sale

 

$

5,498,800

 

 

$

5,355,088

 

 

$

5,221,300

 

 

$

5,114,260

 

 

$

5,073,069

 

 

$

5,298,573

 

 

$

5,071,516

 

Average interest-earning assets

 

 

7,103,841

 

 

 

6,991,773

 

 

 

6,982,556

 

 

 

6,932,649

 

 

 

6,890,829

 

 

 

7,003,232

 

 

 

6,643,193

 

Average assets

 

 

7,389,712

 

 

 

7,320,751

 

 

 

7,309,939

 

 

 

7,341,850

 

 

 

7,315,325

 

 

 

7,340,261

 

 

 

7,078,025

 

Average deposits

 

 

6,673,922

 

 

 

6,535,321

 

 

 

6,626,462

 

 

 

6,581,593

 

 

 

6,536,826

 

 

 

6,604,049

 

 

 

6,299,369

 

Average interest-bearing liabilities

 

 

4,708,045

 

 

 

4,538,893

 

 

 

4,442,172

 

 

 

4,429,114

 

 

 

4,407,612

 

 

 

4,530,347

 

 

 

4,288,041

 

Average shareholders' equity

 

 

441,084

 

 

 

461,328

 

 

 

471,420

 

 

 

538,601

 

 

 

556,462

 

 

 

477,775

 

 

 

555,600

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[1] ROA and ROE are annualized based on a 30/360 day convention. Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual).

[2] Efficiency ratio is defined as total operating expense divided by total revenue (net interest income and total other operating income).

[3] Dividend payout ratio is defined as dividends declared per share divided by diluted earnings per share.

 
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)

TABLE 1 (CONTINUED)

 

 

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

 

 

2022

 

2022

 

2022

 

2022

 

2021

REGULATORY CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

Central Pacific Financial Corp. (consolidated)

 

 

 

 

 

 

 

 

 

 

Leverage capital ratio

 

 

8.5

%

 

 

8.7

%

 

 

8.6

%

 

 

8.5

%

 

 

8.5

%

Tier 1 risk-based capital ratio

 

 

11.3

 

 

 

11.5

 

 

 

11.6

 

 

 

11.9

 

 

 

12.2

 

Total risk-based capital ratio

 

 

13.5

 

 

 

13.7

 

 

 

13.9

 

 

 

14.2

 

 

 

14.5

 

Common equity tier 1 capital ratio

 

 

10.5

 

 

 

10.6

 

 

 

10.7

 

 

 

10.9

 

 

 

11.2

 

Central Pacific Bank

 

 

 

 

 

 

 

 

 

 

Leverage capital ratio

 

 

9.0

 

 

 

9.1

 

 

 

9.0

 

 

 

9.0

 

 

 

8.9

 

Tier 1 risk-based capital ratio

 

 

11.9

 

 

 

12.2

 

 

 

12.2

 

 

 

12.6

 

 

 

12.8

 

Total risk-based capital ratio

 

 

13.1

 

 

 

13.4

 

 

 

13.5

 

 

 

13.8

 

 

 

14.0

 

Common equity tier 1 capital ratio

 

 

11.9

 

 

 

12.2

 

 

 

12.2

 

 

 

12.6

 

 

 

12.8

 

 
 

 

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

(dollars in thousands, except for per share amounts)

 

2022

 

2022

 

2022

 

2022

 

2021

BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

Total loans, net of deferred fees and costs

 

$

5,555,466

 

 

$

5,422,212

 

 

$

5,301,633

 

 

$

5,174,837

 

 

$

5,101,649

 

Total assets

 

 

7,432,763

 

 

 

7,337,631

 

 

 

7,299,178

 

 

 

7,298,819

 

 

 

7,419,089

 

Total deposits

 

 

6,736,223

 

 

 

6,556,434

 

 

 

6,622,061

 

 

 

6,599,031

 

 

 

6,639,158

 

Long-term debt

 

 

105,859

 

 

 

105,799

 

 

 

105,738

 

 

 

105,677

 

 

 

105,616

 

Total shareholders' equity

 

 

452,871

 

 

 

438,468

 

 

 

455,100

 

 

 

486,328

 

 

 

558,219

 

Total shareholders' equity to total assets

 

 

6.09

%

 

 

5.98

%

 

 

6.23

%

 

 

6.66

%

 

 

7.52

%

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses (ACL)

 

$

63,738

 

 

$

64,382

 

 

$

65,211

 

 

$

64,754

 

 

$

68,097

 

Nonaccrual loans

 

 

5,251

 

 

 

4,220

 

 

 

4,983

 

 

 

5,336

 

 

 

5,881

 

Non-performing assets (NPA)

 

 

5,251

 

 

 

4,220

 

 

 

4,983

 

 

 

5,336

 

 

 

5,881

 

ACL to total loans

 

 

1.15

%

 

 

1.19

%

 

 

1.23

%

 

 

1.25

%

 

 

1.33

%

ACL to nonaccrual loans

 

 

1,213.83

%

 

 

1,525.64

%

 

 

1,308.67

%

 

 

1,213.53

%

 

 

1,157.92

%

NPA to total assets

 

 

0.07

%

 

 

0.06

%

 

 

0.07

%

 

 

0.07

%

 

 

0.08

%

 

 

 

 

 

 

 

 

 

 

 

PER SHARE OF COMMON STOCK OUTSTANDING

 

 

 

 

 

 

 

 

 

 

Book value per common share

 

$

16.76

 

 

$

16.08

 

 

$

16.57

 

 

$

17.63

 

 

$

20.14

 

Closing market price per common share

 

 

20.28

 

 

 

20.69

 

 

 

21.45

 

 

 

27.90

 

 

 

28.17

 

 
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)

 

2022

 

2022

 

2022

 

2022

 

2021

ASSETS

 

 

 

 

 

 

 

 

 

 

Cash and due from financial institutions

 

$

97,150

 

 

$

116,365

 

 

$

108,389

 

 

$

83,947

 

 

$

81,506

 

Interest-bearing deposits in other financial institutions

 

 

14,894

 

 

 

22,332

 

 

 

22,741

 

 

 

118,183

 

 

 

247,401

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

Available-for-sale debt securities, at fair value

 

 

671,794

 

 

 

686,681

 

 

 

787,373

 

 

 

1,199,482

 

 

 

1,631,699

 

Held-to-maturity debt securities, at amortized cost; fair value of: $596,781 at December 31, 2022, $590,880 at September 30, 2022, $635,565 at June 30, 2022, $329,503 at March 31, 2022, and none at December 31, 2021

 

 

664,883

 

 

 

662,827

 

 

 

663,365

 

 

 

329,507

 

 

 

 

Equity securities, at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investment securities

 

 

1,336,677

 

 

 

1,349,508

 

 

 

1,450,738

 

 

 

1,528,989

 

 

 

1,631,699

 

Loans held for sale

 

 

1,105

 

 

 

1,701

 

 

 

535

 

 

 

4,677

 

 

 

3,531

 

Loans, net of deferred fees and costs

 

 

5,555,466

 

 

 

5,422,212

 

 

 

5,301,633

 

 

 

5,174,837

 

 

 

5,101,649

 

Less: allowance for credit losses

 

 

63,738

 

 

 

64,382

 

 

 

65,211

 

 

 

64,754

 

 

 

68,097

 

Loans, net of allowance for credit losses

 

 

5,491,728

 

 

 

5,357,830

 

 

 

5,236,422

 

 

 

5,110,083

 

 

 

5,033,552

 

Premises and equipment, net

 

 

91,634

 

 

 

89,979

 

 

 

88,664

 

 

 

79,455

 

 

 

80,354

 

Accrued interest receivable

 

 

20,345

 

 

 

18,134

 

 

 

17,146

 

 

 

16,423

 

 

 

16,709

 

Investment in unconsolidated entities

 

 

46,641

 

 

 

36,769

 

 

 

37,341

 

 

 

31,092

 

 

 

29,679

 

Mortgage servicing rights

 

 

9,074

 

 

 

9,216

 

 

 

9,369

 

 

 

9,480

 

 

 

9,738

 

Bank-owned life insurance

 

 

167,967

 

 

 

167,761

 

 

 

167,202

 

 

 

167,407

 

 

 

169,148

 

Federal Home Loan Bank ("FHLB") stock

 

 

9,146

 

 

 

13,546

 

 

 

8,943

 

 

 

8,943

 

 

 

7,964

 

Right of use lease asset

 

 

34,985

 

 

 

35,978

 

 

 

36,978

 

 

 

38,435

 

 

 

39,441

 

Other assets

 

 

111,417

 

 

 

118,512

 

 

 

114,710

 

 

 

101,705

 

 

 

68,367

Total assets

 

$

7,432,763

 

 

$

7,337,631

 

$

7,299,178

 

$

7,298,819

 

 

$

7,419,089

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

2,092,823

 

 

$

2,138,083

 

 

$

2,282,967

 

 

$

2,269,562

 

 

$

2,291,246

 

Interest-bearing demand

 

 

1,453,167

 

 

 

1,441,302

 

 

 

1,444,566

 

 

 

1,433,284

 

 

 

1,415,277

 

Savings and money market

 

 

2,199,028

 

 

 

2,194,991

 

 

 

2,214,146

 

 

 

2,197,647

 

 

 

2,225,903

 

Time

 

 

991,205

 

 

 

782,058

 

 

 

680,382

 

 

 

698,538

 

 

 

706,732

 

Total deposits

 

 

6,736,223

 

 

 

6,556,434

 

 

 

6,622,061

 

 

 

6,599,031

 

 

 

6,639,158

 

FHLB advances and other short-term borrowings

 

 

5,000

 

 

 

115,000

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

105,859

 

 

 

105,799

 

 

 

105,738

 

 

 

105,677

 

 

 

105,616

 

Lease liability

 

 

35,889

 

 

 

36,941

 

 

 

38,037

 

 

 

39,610

 

 

 

40,731

 

Other liabilities

 

 

96,921

 

 

 

84,989

 

 

 

78,242

 

 

 

68,123

 

 

 

75,317

 

Total liabilities

 

 

6,979,892

 

 

 

6,899,163

 

 

 

6,844,078

 

 

 

6,812,441

 

 

 

6,860,822

 

EQUITY

 

 

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

 

 

Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 27,025,070 at December 31, 2022, 27,262,879 at September 30, 2022, 27,463,562 at June 30, 2022, 27,584,929 at March 31, 2022, and 27,714,071 at December 31, 2021

 

 

408,071

 

 

 

412,994

 

 

 

417,862

 

 

 

421,153

 

 

 

426,091

 

Additional paid-in capital

 

 

101,346

 

 

 

100,426

 

 

 

98,977

 

 

 

98,270

 

 

 

98,073

 

Retained earnings

 

 

87,438

 

 

 

74,301

 

 

 

64,693

 

 

 

54,252

 

 

 

42,015

 

Accumulated other comprehensive loss

 

 

(143,984

)

 

 

(149,253

)

 

 

(126,432

)

 

 

(87,347

)

 

 

(7,960

)

Total shareholders' equity

 

 

452,871

 

 

 

438,468

 

 

 

455,100

 

 

 

486,328

 

 

 

558,219

 

Non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

48

 

Total equity

 

 

452,871

 

 

 

438,468

 

 

 

455,100

 

 

 

486,378

 

 

 

558,267

Total liabilities and equity

 

$

7,432,763

 

 

$

7,337,631

 

 

$

7,299,178

 

 

$

7,298,819

 

 

$

7,419,089

 

 

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,

 

December 31,

(Dollars in thousands, except per share data)

 

2022

 

2022

 

2022

 

2022

 

2021

 

2022

 

2021

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

56,682

 

$

51,686

 

$

46,963

 

 

$

44,949

 

 

$

47,576

 

 

$

200,280

 

 

$

193,778

 

Interest and dividends on investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable investment securities

 

 

7,104

 

 

6,933

 

 

7,035

 

 

 

6,969

 

 

 

6,667

 

 

 

28,041

 

 

 

22,430

 

Tax-exempt investment securities

 

 

776

 

 

805

 

 

807

 

 

 

816

 

 

 

642

 

 

 

3,204

 

 

 

1,972

 

Dividend income on investment securities

 

 

 

 

 

 

 

 

 

21

 

 

 

21

 

 

 

21

 

 

 

75

 

Interest on deposits in other financial institutions

 

 

370

 

 

107

 

 

191

 

 

 

72

 

 

 

86

 

 

 

740

 

 

 

262

 

Dividend income on FHLB stock

 

 

105

 

 

138

 

 

68

 

 

 

59

 

 

 

61

 

 

 

370

 

 

 

245

 

Total interest income

 

 

65,037

 

 

59,669

 

 

55,064

 

 

 

52,886

 

 

 

55,053

 

 

 

232,656

 

 

 

218,762

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

 

 

333

 

 

217

 

 

144

 

 

 

112

 

 

 

104

 

 

 

806

 

 

 

384

 

Savings and money market

 

 

2,488

 

 

1,054

 

 

317

 

 

 

329

 

 

 

352

 

 

 

4,188

 

 

 

1,240

 

Time

 

 

4,063

 

 

1,092

 

 

490

 

 

 

469

 

 

 

478

 

 

 

6,114

 

 

 

1,992

 

Interest on short-term borrowings

 

 

393

 

 

660

 

 

2

 

 

 

 

 

 

 

 

 

1,055

 

 

 

2

 

Interest on long-term debt

 

 

1,475

 

 

1,281

 

 

1,133

 

 

 

1,041

 

 

 

1,023

 

 

 

4,930

 

 

 

4,097

 

Total interest expense

 

 

8,752

 

 

4,304

 

 

2,086

 

 

 

1,951

 

 

 

1,957

 

 

 

17,093

 

 

 

7,715

 

Net interest income

 

 

56,285

 

 

55,365

 

 

52,978

 

 

 

50,935

 

 

 

53,096

 

 

 

215,563

 

 

 

211,047

 

Provision (credit) for credit losses

 

 

571

 

 

362

 

 

989

 

 

 

(3,195

)

 

 

(7,692

)

 

 

(1,273

)

 

 

(14,591

)

Net interest income after provision (credit) for credit losses

 

 

55,714

 

 

55,003

 

 

51,989

 

 

 

54,130

 

 

 

60,788

 

 

 

216,836

 

 

 

225,638

 

Other operating income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage banking income

 

 

667

 

 

831

 

 

1,140

 

 

 

1,172

 

 

 

1,902

 

 

 

3,810

 

 

 

7,732

 

Service charges on deposit accounts

 

 

2,172

 

 

2,138

 

 

2,026

 

 

 

1,861

 

 

 

1,800

 

 

 

8,197

 

 

 

6,358

 

Other service charges and fees

 

 

4,972

 

 

4,955

 

 

4,610

 

 

 

4,488

 

 

 

5,016

 

 

 

19,025

 

 

 

18,367

 

Income from fiduciary activities

 

 

1,058

 

 

1,165

 

 

1,188

 

 

 

1,154

 

 

 

1,283

 

 

 

4,565

 

 

 

5,075

 

Net gain on sales of investment securities

 

 

 

 

 

 

8,506

 

 

 

 

 

 

 

 

 

8,506

 

 

 

150

 

Income from bank-owned life insurance

 

 

2,187

 

 

167

 

 

(1,028

)

 

 

539

 

 

 

946

 

 

 

1,865

 

 

 

3,493

 

Other

 

 

545

 

 

373

 

 

696

 

 

 

337

 

 

 

619

 

 

 

1,951

 

 

 

1,885

 

Total other operating income

 

 

11,601

 

 

9,629

 

 

17,138

 

 

 

9,551

 

 

 

11,566

 

 

 

47,919

 

 

 

43,060

 

Other operating expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

22,692

 

 

22,778

 

 

22,369

 

 

 

20,942

 

 

 

23,030

 

 

 

88,781

 

 

 

90,213

 

Net occupancy

 

 

3,998

 

 

4,743

 

 

4,448

 

 

 

3,774

 

 

 

4,129

 

 

 

16,963

 

 

 

16,133

 

Equipment

 

 

996

 

 

1,085

 

 

1,075

 

 

 

1,082

 

 

 

1,207

 

 

 

4,238

 

 

 

4,344

 

Communication

 

 

696

 

 

712

 

 

744

 

 

 

806

 

 

 

922

 

 

 

2,958

 

 

 

3,271

 

Legal and professional services

 

 

2,677

 

 

2,573

 

 

2,916

 

 

 

2,626

 

 

 

2,928

 

 

 

10,792

 

 

 

10,452

 

Computer software

 

 

3,996

 

 

4,138

 

 

3,624

 

 

 

3,082

 

 

 

3,125

 

 

 

14,840

 

 

 

13,304

 

Advertising

 

 

701

 

 

1,150

 

 

1,150

 

 

 

1,150

 

 

 

1,179

 

 

 

4,151

 

 

 

5,495

 

Other

 

 

4,678

 

 

4,819

 

 

9,023

 

 

 

4,743

 

 

 

5,902

 

 

 

23,263

 

 

 

19,834

 

Total other operating expense

 

 

40,434

 

 

41,998

 

 

45,349

 

 

 

38,205

 

 

 

42,422

 

 

 

165,986

 

 

 

163,046

 

Income before income taxes

 

 

26,881

 

 

22,634

 

 

23,778

 

 

 

25,476

 

 

 

29,932

 

 

 

98,769

 

 

 

105,652

 

Income tax expense

 

 

6,700

 

 

5,919

 

 

6,184

 

 

 

6,038

 

 

 

7,605

 

 

 

24,841

 

 

 

25,758

 

Net income

 

$

20,181

 

$

16,715

 

$

17,594

 

 

$

19,438

 

 

$

22,327

 

 

$

73,928

 

 

$

79,894

 

Per common share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.74

 

$

0.61

 

$

0.64

 

 

$

0.70

 

 

$

0.80

 

 

$

2.70

 

 

$

2.85

 

Diluted earnings per share

 

 

0.74

 

 

0.61

 

 

0.64

 

 

 

0.70

 

 

 

0.80

 

 

 

2.68

 

 

 

2.83

 

Cash dividends declared

 

 

0.26

 

 

0.26

 

 

0.26

 

 

 

0.26

 

 

 

0.25

 

 

 

1.04

 

 

 

0.96

 

Basic weighted average shares outstanding

 

 

27,134,970

 

 

27,356,614

 

 

27,516,284

 

 

 

27,591,390

 

 

 

27,769,651

 

 

 

27,398,445

 

 

 

28,003,744

 

Diluted weighted average shares outstanding

 

 

27,303,249

 

 

27,501,212

 

 

27,676,619

 

 

 

27,874,924

 

 

 

28,045,826

 

 

 

27,567,780

 

 

 

28,257,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period.

 

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, 2022

 

September 30, 2022

 

December 31, 2021

 

 

Average

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

Average

 

 

(Dollars in thousands)

 

Balance

 

Yield/Rate

 

Interest

 

Balance

 

Yield/Rate

 

Interest

 

Balance

 

Yield/Rate

 

Interest

ASSETS

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits in other financial institutions

 

$

38,610

 

3.80

%

 

$

370

 

$

19,802

 

2.14

%

 

$

107

 

$

225,560

 

0.15

%

 

$

86

Investment securities, excluding valuation allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,399,627

 

2.03

 

 

 

7,104

 

 

1,445,781

 

1.92

 

 

 

6,934

 

 

1,469,711

 

1.82

 

 

 

6,688

Tax-exempt [1]

 

 

156,079

 

2.52

 

 

 

982

 

 

158,052

 

2.57

 

 

 

1,018

 

 

114,529

 

2.84

 

 

 

813

Total investment securities

 

 

1,555,706

 

2.08

 

 

 

8,086

 

 

1,603,833

 

1.98

 

 

 

7,952

 

 

1,584,240

 

1.89

 

 

 

7,501

Loans, including loans held for sale

 

 

5,498,800

 

4.10

 

 

 

56,682

 

 

5,355,088

 

3.84

 

 

 

51,686

 

 

5,073,069

 

3.73

 

 

 

47,576

Federal Home Loan Bank stock

 

 

10,725

 

3.90

 

 

 

105

 

 

13,050

 

4.23

 

 

 

138

 

 

7,960

 

3.05

 

 

 

61

Total interest-earning assets

 

 

7,103,841

 

3.66

 

 

 

65,243

 

 

6,991,773

 

3.41

 

 

 

59,883

 

 

6,890,829

 

3.19

 

 

 

55,224

Noninterest-earning assets

 

 

285,871

 

 

 

 

 

 

328,978

 

 

 

 

 

 

424,496

 

 

 

 

Total assets

 

$

7,389,712

 

 

 

$

7,320,751

 

 

 

$

7,315,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

1,441,787

 

0.09

%

 

$

333

 

$

1,450,434

 

0.06

%

 

$

217

 

$

1,383,696

 

0.03

%

 

$

104

Savings and money market deposits

 

 

2,209,166

 

0.45

 

 

 

2,488

 

 

2,208,037

 

0.19

 

 

 

1,054

 

 

2,224,592

 

0.06

 

 

 

352

Time deposits up to $250,000

 

 

311,639

 

1.50

 

 

 

1,174

 

 

228,707

 

0.42

 

 

 

245

 

 

225,451

 

0.31

 

 

 

176

Time deposits over $250,000

 

 

595,133

 

1.93

 

 

 

2,889

 

 

443,178

 

0.76

 

 

 

847

 

 

468,292

 

0.26

 

 

 

302

Total interest-bearing deposits

 

 

4,557,725

 

0.60

 

 

 

6,884

 

 

4,330,356

 

0.22

 

 

 

2,363

 

 

4,302,031

 

0.09

 

 

 

934

Federal Home Loan Bank advances and other short-term borrowings

 

 

44,491

 

3.51

 

 

 

393

 

 

102,777

 

2.55

 

 

 

660

 

 

 

 

 

 

Long-term debt

 

 

105,829

 

5.53

 

 

 

1,475

 

 

105,760

 

4.80

 

 

 

1,281

 

 

105,581

 

3.85

 

 

 

1,023

Total interest-bearing liabilities

 

 

4,708,045

 

0.74

 

 

 

8,752

 

 

4,538,893

 

0.38

 

 

 

4,304

 

 

4,407,612

 

0.18

 

 

 

1,957

Noninterest-bearing deposits

 

 

2,116,197

 

 

 

 

 

 

2,204,965

 

 

 

 

 

 

2,234,795

 

 

 

 

Other liabilities

 

 

124,386

 

 

 

 

 

 

115,565

 

 

 

 

 

 

116,408

 

 

 

 

Total liabilities

 

 

6,948,628

 

 

 

 

 

 

6,859,423

 

 

 

 

 

 

6,758,815

 

 

 

 

Shareholders' equity

 

 

441,084

 

 

 

 

 

 

461,328

 

 

 

 

 

 

556,462

 

 

 

 

Non-controlling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

48

 

 

 

 

Total equity

 

 

441,084

 

 

 

 

 

 

461,328

 

 

 

 

 

 

556,510

 

 

 

 

Total liabilities and equity

 

$

7,389,712

 

 

 

 

 

$

7,320,751

 

 

 

 

 

$

7,315,325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

56,491

 

 

 

 

 

$

55,579

 

 

 

 

 

$

53,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

 

2.92

%

 

 

 

 

 

3.03

%

 

 

 

 

 

3.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

3.17

%

 

 

 

 

 

3.17

%

 

 

 

 

 

3.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[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

 

 

 

Year Ended

 

Year Ended

 

 

December 31, 2022

 

December 31, 2021

 

 

Average

 

Average

 

 

 

Average

 

Average

 

 

(Dollars in thousands)

 

Balance

 

Yield/Rate

 

Interest

 

Balance

 

Yield/Rate

 

Interest

ASSETS

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits in other financial institutions

 

$

80,096

 

0.92

%

 

$

740

 

$

191,967

 

0.14

%

 

$

262

Investment securities, excluding valuation allowance:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

1,455,246

 

1.93

 

 

 

28,062

 

 

1,269,900

 

1.77

 

 

 

22,505

Tax-exempt [1]

 

 

159,120

 

2.55

 

 

 

4,056

 

 

101,877

 

2.45

 

 

 

2,496

Total investment securities

 

 

1,614,366

 

1.99

 

 

 

32,118

 

 

1,371,777

 

1.82

 

 

 

25,001

Loans, including loans held for sale

 

 

5,298,573

 

3.78

 

 

 

200,280

 

 

5,071,516

 

3.82

 

 

 

193,778

Federal Home Loan Bank stock

 

 

10,197

 

3.63

 

 

 

370

 

 

7,933

 

3.09

 

 

 

245

Total interest-earning assets

 

 

7,003,232

 

3.33

 

 

 

233,508

 

 

6,643,193

 

3.30

 

 

 

219,286

Noninterest-earning assets

 

 

337,029

 

 

 

 

 

 

434,832

 

 

 

 

Total assets

 

$

7,340,261

 

 

 

 

 

$

7,078,025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

1,438,232

 

0.06

%

 

$

806

 

$

1,300,022

 

0.03

%

 

$

384

Savings and money market deposits

 

 

2,208,630

 

0.19

 

 

 

4,188

 

 

2,099,388

 

0.06

 

 

 

1,240

Time deposits up to $250,000

 

 

245,599

 

0.70

 

 

 

1,723

 

 

230,705

 

0.34

 

 

 

795

Time deposits over $250,000

 

 

494,943

 

0.89

 

 

 

4,391

 

 

551,831

 

0.22

 

 

 

1,197

Total interest-bearing deposits

 

 

4,387,404

 

0.25

 

 

 

11,108

 

 

4,181,946

 

0.09

 

 

 

3,616

Federal Home Loan Bank advances and other short-term borrowings

 

 

37,211

 

2.84

 

 

 

1,055

 

 

607

 

0.30

 

 

 

2

Long-term debt

 

 

105,732

 

4.66

 

 

 

4,930

 

 

105,488

 

3.88

 

 

 

4,097

Total interest-bearing liabilities

 

 

4,530,347

 

0.38

 

 

 

17,093

 

 

4,288,041

 

0.18

 

 

 

7,715

Noninterest-bearing deposits

 

 

2,216,645

 

 

 

 

 

 

2,117,423

 

 

 

 

Other liabilities

 

 

115,478

 

 

 

 

 

 

116,936

 

 

 

 

Total liabilities

 

 

6,862,470

 

 

 

 

 

 

6,522,400

 

 

 

 

Shareholders' equity

 

 

477,775

 

 

 

 

 

 

555,600

 

 

 

 

Non-controlling interest

 

 

16

 

 

 

 

 

 

25

 

 

 

 

Total equity

 

 

477,791

 

 

 

 

 

 

555,625

 

 

 

 

Total liabilities and equity

 

$

7,340,261

 

 

 

 

 

$

7,078,025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

216,415

 

 

 

 

 

$

211,571

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread

 

 

 

2.95

%

 

 

 

 

 

3.12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin

 

 

 

3.09

%

 

 

 

 

 

3.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[1] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Loans by Geographic Distribution

(Unaudited)

TABLE 6

 

 

 

Dec 31,

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

(Dollars in thousands)