Highlights include:
- Net income of $12.9 million, or $0.48 per diluted
share
- NIM of 2.83% compared to 2.84% in the previous quarter and
3.08% a year ago
- Total loans of $5.40 billion decreased by $37.6 million from
the previous quarter
- Total deposits of $6.62 billion decreased by $228.7 million
from the previous quarter, which included a decrease in government
time deposits of $139.1 million
- Total risk-based capital and common equity tier 1 ratios of
14.8% and 11.6%, respectively
- Board of Directors approved quarterly cash dividend of $0.26
per share
Central Pacific Financial Corp. (NYSE: CPF) (the "Company"),
parent company of Central Pacific Bank (the "Bank" or "CPB"), today
reported net income of $12.9 million, or fully diluted earnings per
share ("EPS") of $0.48 for the first quarter of 2024, compared to
net income of $14.9 million, or EPS of $0.55 in the previous
quarter and net income of $16.2 million, or EPS of $0.60 in the
year-ago quarter.
"Our financial results for the first quarter reflect our
continued focus on optimizing the balance sheet, while maintaining
strong liquidity, asset quality and capital," said Arnold Martines,
President and Chief Executive Officer. "The first quarter was also
significant as we celebrated our 70th year in business serving
Hawaii. We are extremely proud to continue the legacy of our
founders as a champion of local small businesses in Hawaii and we
are pleased to be recognized by the SBA Hawaii District as the 2023
Lender of the Year for mid-sized banks in Hawaii."
Earnings Highlights
Net interest income was $50.2 million for the first quarter of
2024, which decreased by $1.0 million, or 1.9% from the previous
quarter, and decreased by $4.0 million, or 7.4% from the year-ago
quarter. Net interest margin ("NIM") was 2.83% for the first
quarter of 2024, which decreased by 1 basis point ("bp" or "bps")
from the previous quarter and decreased by 25 bps from the year-ago
quarter. The sequential quarter decrease in net interest income was
primarily due to higher average rates paid on interest-bearing
deposits, combined with lower average loan balances, which was
partially offset by higher average yields earned on loans.
The Company recorded a provision for credit losses of $3.9
million in the first quarter of 2024, compared to a provision of
$4.7 million in the previous quarter and a provision of $1.9
million in the year-ago quarter. The provision in the first quarter
consisted of a provision for credit losses on loans of $4.1 million
and a credit to the provision for off-balance sheet exposures of
$0.2 million.
Other operating income totaled $11.2 million for the first
quarter of 2024, compared to $15.2 million in the previous quarter
and $11.0 million in the year-ago quarter. The previous quarter
included a non-recurring pre-tax net gain on the sale of a real
estate property (included in other) of $5.1 million and losses on
the sales of investment securities of $1.9 million.
Other operating expense totaled $40.6 million for the first
quarter of 2024, compared to $42.5 million in the previous quarter
and $42.1 million in the year-ago quarter. The previous quarter
included a non-recurring branch lease termination expense (included
in other) of $2.3 million.
The efficiency ratio was 66.05% for the first quarter of 2024,
compared to 64.12% in the previous quarter and 64.58% in the
year-ago quarter.
The effective tax rate was 23.5% for the first quarter of 2024,
compared to 22.3% in the previous quarter and 23.8% in the year-ago
quarter.
Balance Sheet Highlights
Total assets of $7.41 billion at March 31, 2024 decreased by
$232.8 million, or 3.0% from $7.64 billion at December 31, 2023,
and decreased by $111.2 million, or 1.5% from $7.52 billion at
March 31, 2023. The Company had $312.9 million in cash on its
balance sheet and $2.42 billion in total other liquidity sources,
including available borrowing capacity and unpledged investment
securities at March 31, 2024. Total available sources of liquidity
as a percentage of uninsured and uncollateralized deposits was 118%
at March 31, 2024. During the first quarter of 2024, excess balance
sheet liquidity was used to pay off $139.1 million in higher cost
government time deposits.
Total loans, net of deferred fees and costs, of $5.40 billion at
March 31, 2024 decreased by $37.6 million, or 0.7% from $5.44
billion at December 31, 2023, and decreased by $156.0 million, or
2.8% from $5.56 billion at March 31, 2023. Average yields earned on
loans during the first quarter of 2024 was 4.67%, compared to 4.55%
in the previous quarter and 4.26% in the year-ago quarter.
Total deposits of $6.62 billion at March 31, 2024 decreased by
$228.7 million or 3.3% from $6.85 billion at December 31, 2023, and
decreased by $128.1 million, or 1.9% from $6.75 billion at March
31, 2023. Core deposits, which include demand deposits, savings and
money market deposits and time deposits up to $250,000, totaled
$5.90 billion at March 31, 2024, and decreased by $90.8 million, or
1.5% from $5.99 billion at December 31, 2023. Average rates paid on
total deposits during the first quarter of 2024 was 1.32%, compared
to 1.23% in the previous quarter and 0.60% in the year-ago quarter.
At March 31, 2024, approximately 65% of the Company's total
deposits were FDIC-insured or fully collateralized.
Asset Quality
Nonperforming assets totaled $10.1 million, or 0.14% of total
assets at March 31, 2024, compared to $7.0 million, or 0.09% of
total assets at December 31, 2023 and $5.3 million, or 0.07% of
total assets at March 31, 2023.
Net charge-offs totaled $4.5 million in the first quarter of
2024, compared to net charge-offs of $5.5 million in the previous
quarter, and net charge-offs of $2.3 million in the year-ago
quarter. Annualized net charge-offs as a percentage of average
loans was 0.34%, 0.41% and 0.16% during the three months ended
March 31, 2024, December 31, 2023 and March 31, 2023,
respectively.
The allowance for credit losses, as a percentage of total loans
was 1.18% at March 31, 2024, compared to 1.18% at December 31,
2023, and 1.14% at March 31, 2023.
Capital
Total shareholders' equity was $507.2 million at March 31, 2024,
compared to $503.8 million and $470.9 million at December 31, 2023
and March 31, 2023, respectively.
During the first quarter of 2024, the Company repurchased 49,960
shares of common stock, at a total cost of $0.9 million, or an
average cost per share of $18.92. As of March 31, 2024, $19.1
million in share repurchase authorization remained available under
the Company's share repurchase program.
The Company's leverage, tier 1 risk-based capital, total
risk-based capital, and common equity tier 1 capital ratios were
9.0%, 12.6%, 14.8%, and 11.6%, respectively, at March 31, 2024,
compared to 8.8%, 12.4%, 14.6%, and 11.4%, respectively, at
December 31, 2023.
On April 23, 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 June 17, 2024 to
shareholders of record at the close of business on May 31,
2024.
Conference Call
The Company's management will host a conference call today at
1:00 p.m. Eastern Time (7:00 a.m. Hawaii Time) to discuss the
quarterly results. Individuals are encouraged to listen to the live
webcast of the presentation by visiting the investor relations page
of the Company's website at http://ir.cpb.bank. Alternatively,
investors may participate in the live call by dialing
1-800-715-9871 (access code: 1551295). A playback of the call will
be available through May 24, 2024 by dialing 1-800-770-2030 (access
code: 1551295) 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 $7.41 billion in assets as of March 31,
2024. Central Pacific Bank, its primary subsidiary, operates 27
branches and 55 ATMs in the State of Hawaii. For additional
information, please visit the Company's website at
http://www.cpb.bank.
Equal Housing Lender Member FDIC NYSE Listed: CPF
Forward-Looking Statements
This document may contain forward-looking statements ("FLS")
concerning: projections of revenues, expenses, income or loss,
earnings or loss per share, capital expenditures, payment or
nonpayment of dividends, capital position, credit losses, net
interest margin or other financial items; statements of plans,
objectives and expectations of Central Pacific Financial Corp. (the
"Company") or its management or Board of Directors, including those
relating to business plans, use of capital resources, products or
services and regulatory developments and regulatory actions;
statements of future economic performance including anticipated
performance results from our business initiatives; or any
statements of the assumptions underlying or relating to any of the
foregoing. Words such as "believe," "plan," "anticipate," "seek,"
"expect," "intend," "forecast," "hope," "target," "continue,"
"remain," "estimate," "will," "should," "may" and other similar
expressions are intended to identify FLS but are not the exclusive
means of identifying such statements.
While we believe that our FLS and the assumptions underlying
them are reasonably based, such statements and assumptions are by
their nature subject to risks and uncertainties, and thus could
later prove to be inaccurate or incorrect. Accordingly, actual
results could differ materially from those statements or
projections for a variety of reasons, including, but not limited
to: the effects of inflation and interest rate fluctuations; the
adverse effects of recent bank failures and the potential impact of
such developments on customer confidence, deposit behavior,
liquidity and regulatory responses thereto; the adverse effects of
the COVID-19 pandemic virus (and its variants) and other pandemic
viruses on local, national and international economies, including,
but not limited to, the adverse impact on tourism and construction
in the State of Hawaii, our borrowers, customers, third-party
contractors, vendors and employees, as well as the effects of
government programs and initiatives in response thereto; supply
chain disruptions; the increase in inventory or adverse conditions
in the real estate market and deterioration in the construction
industry; adverse changes in the financial performance and/or
condition of our borrowers and, as a result, increased loan
delinquency rates, deterioration in asset quality, and losses in
our loan portfolio; the impact of local, national, and
international economies and events (including natural disasters
such as wildfires, volcanic eruptions, hurricanes, tsunamis,
storms, and earthquakes) on the Company's business and operations
and on tourism, the military, and other major industries operating
within the Hawaii market and any other markets in which the Company
does business; deterioration or malaise in domestic economic
conditions, including any destabilization in the financial industry
and deterioration of the real estate market, as well as the impact
of declining levels of consumer and business confidence in the
state of the economy in general and in financial institutions in
particular; changes in estimates of future reserve requirements
based upon the periodic review thereof under relevant regulatory
and accounting requirements; the impact of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, changes in capital
standards, other regulatory reform and federal and state
legislation, including but not limited to regulations promulgated
by the Consumer Financial Protection Bureau, government-sponsored
enterprise reform, and any related rules and regulations which
affect our business operations and competitiveness; the costs and
effects of legal and regulatory developments, including legal
proceedings and lawsuits we are or may become subject to, or
regulatory or other governmental inquiries and proceedings and the
resolution thereof; the results of regulatory examinations or
reviews and the effect of, and our ability to comply with, any
regulations or regulatory orders or actions we are or may become
subject to, and the effect of any recurring or special FDIC
assessments; the effect of changes in accounting policies and
practices, as may be adopted by the regulatory agencies, as well as
the Public Company Accounting Oversight Board, the Financial
Accounting Standards Board and other accounting standard setters
and the cost and resources required to implement such changes; the
effects of and changes in trade, monetary and fiscal policies and
laws, including the interest rate policies of the Board of
Governors of the Federal Reserve System; securities market and
monetary fluctuations, including the impact resulting from the
elimination of the London Interbank Offered Rate Index; negative
trends in our market capitalization and adverse changes in the
price of the Company's common stock; the effects of any
acquisitions or dispositions we may make; political instability;
acts of war or terrorism; changes in consumer spending, borrowings
and savings habits; technological changes and developments;
cybersecurity and data privacy breaches and the consequence
therefrom; failure to maintain effective internal control over
financial reporting or disclosure controls and procedures; our
ability to address deficiencies in our internal controls over
financial reporting or disclosure controls and procedures; changes
in the competitive environment among financial holding companies
and other financial service providers; our ability to successfully
implement our initiatives to lower our efficiency ratio; our
ability to attract and retain key personnel; changes in our
personnel, organization, compensation and benefit plans; our
ability to successfully implement and achieve the objectives of our
Banking-as-a-Service initiatives, including adoption of the
initiatives by customers and risks faced by any of our bank
collaborations including reputational and regulatory risk; and our
success at managing the risks involved in the foregoing items.
For further information with respect to factors that could cause
actual results to materially differ from the expectations or
projections stated in the FLS, please see the Company's publicly
available Securities and Exchange Commission filings, including the
Company's Form 10-K for the last fiscal year and, in particular,
the discussion of "Risk Factors" set forth therein. We urge
investors to consider all of these factors carefully in evaluating
the FLS contained in this document. FLS speak only as of the date
on which such statements are made. We undertake no obligation to
update any FLS to reflect events or circumstances after the date on
which such statements are made, or to reflect the occurrence of
unanticipated events except as required by law.
CENTRAL PACIFIC FINANCIAL
CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
TABLE 1
Three Months Ended
(Dollars in thousands,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
except for per share amounts)
2024
2023
2023
2023
2023
CONDENSED INCOME STATEMENT
Net interest income
$
50,187
$
51,142
$
51,928
$
52,734
$
54,196
Provision for credit losses
3,936
4,653
4,874
4,319
1,852
Total other operating income
11,244
15,172
10,047
10,435
11,009
Total other operating expense
40,576
42,522
39,611
39,903
42,107
Income tax expense
3,974
4,273
4,349
4,472
5,059
Net income
12,945
14,866
13,141
14,475
16,187
Basic earnings per share
$
0.48
$
0.55
$
0.49
$
0.54
$
0.60
Diluted earnings per share
0.48
0.55
0.49
0.53
0.60
Dividends declared per share
0.26
0.26
0.26
0.26
0.26
PERFORMANCE RATIOS
Return on average assets (ROA) [1]
0.70
%
0.79
%
0.70
%
0.78
%
0.87
%
Return on average shareholders’ equity
(ROE) [1]
10.33
12.55
10.95
12.12
13.97
Average shareholders’ equity to average
assets
6.73
6.32
6.39
6.40
6.23
Efficiency ratio [2]
66.05
64.12
63.91
63.17
64.58
Net interest margin (NIM) [1]
2.83
2.84
2.88
2.96
3.08
Dividend payout ratio [3]
54.17
47.27
53.06
49.06
43.33
SELECTED AVERAGE BALANCES
Average loans, including loans held for
sale
$
5,400,558
$
5,458,245
$
5,507,248
$
5,543,398
$
5,525,988
Average interest-earning assets
7,140,264
7,208,613
7,199,866
7,155,606
7,112,377
Average assets
7,449,661
7,498,097
7,510,537
7,463,629
7,443,767
Average deposits
6,659,812
6,730,883
6,738,071
6,674,650
6,655,660
Average interest-bearing liabilities
5,009,542
5,023,321
4,999,820
4,908,120
4,820,660
Average shareholders’ equity
501,120
473,708
480,118
477,711
463,556
[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)
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
2024
2023
2023
2023
2023
REGULATORY CAPITAL RATIOS
Central Pacific Financial Corp.
Leverage ratio
9.0
%
8.8
%
8.7
%
8.7
%
8.6
%
Tier 1 risk-based capital ratio
12.6
12.4
11.9
11.8
11.5
Total risk-based capital ratio
14.8
14.6
14.1
13.9
13.6
Common equity tier 1 capital ratio
11.6
11.4
11.0
10.9
10.6
Central Pacific Bank
Leverage ratio
9.4
9.2
9.1
9.1
9.0
Tier 1 risk-based capital ratio
13.1
12.9
12.4
12.3
12.0
Total risk-based capital ratio
14.3
14.1
13.7
13.5
13.2
Common equity tier 1 capital ratio
13.1
12.9
12.4
12.3
12.0
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(dollars in thousands, except for per
share amounts)
2024
2023
2023
2023
2023
BALANCE SHEET
Total loans, net of deferred fees and
costs
$
5,401,417
$
5,438,982
$
5,508,710
$
5,520,683
$
5,557,397
Total assets
7,409,999
7,642,796
7,637,924
7,567,592
7,521,247
Total deposits
6,618,854
6,847,592
6,874,745
6,805,737
6,746,968
Long-term debt
156,163
156,102
156,041
155,981
155,920
Total shareholders’ equity
507,203
503,815
468,598
476,279
470,926
Total shareholders’ equity to total
assets
6.84
%
6.59
%
6.14
%
6.29
%
6.26
%
ASSET QUALITY
Allowance for credit losses (ACL)
$
63,532
$
63,934
$
64,517
$
63,849
$
63,099
Nonaccrual loans
10,132
7,008
6,652
11,061
5,313
Non-performing assets (NPA)
10,132
7,008
6,652
11,061
5,313
Ratio of ACL to total loans
1.18
%
1.18
%
1.17
%
1.16
%
1.14
%
Ratio of NPA to total assets
0.14
%
0.09
%
0.09
%
0.15
%
0.07
%
PER SHARE OF COMMON STOCK OUTSTANDING
Book value per common share
$
18.76
$
18.63
$
17.33
$
17.61
$
17.44
Closing market price per common share
19.75
19.68
16.68
15.71
17.90
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
TABLE 2
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(Dollars in thousands, except share
data)
2024
2023
2023
2023
2023
ASSETS
Cash and due from financial
institutions
$
98,410
$
116,181
$
108,818
$
129,071
$
108,535
Interest-bearing deposits in other
financial institutions
214,472
406,256
329,913
181,913
90,247
Investment securities:
Available-for-sale debt securities, at
fair value
660,833
647,210
625,253
664,071
687,188
Held-to-maturity debt securities, at
amortized cost; fair value of: $541,685 at March 31, 2024, $565,178
at December 31, 2023, $531,887 at September 30, 2023, $581,222 at
June 30, 2023, and $599,300 at March 31, 2023
624,948
632,338
640,053
649,946
658,596
Total investment securities
1,285,781
1,279,548
1,265,306
1,314,017
1,345,784
Loans held for sale
755
1,778
—
2,593
—
Loans, net of deferred fees and costs
5,401,417
5,438,982
5,508,710
5,520,683
5,557,397
Less: allowance for credit losses
(63,532
)
(63,934
)
(64,517
)
(63,849
)
(63,099
)
Loans, net of allowance for credit
losses
5,337,885
5,375,048
5,444,193
5,456,834
5,494,298
Premises and equipment, net
97,688
96,184
97,378
96,479
93,761
Accrued interest receivable
21,957
21,511
21,529
20,463
20,473
Investment in unconsolidated entities
40,780
41,546
42,523
45,218
45,953
Mortgage servicing rights
8,599
8,696
8,797
8,843
8,943
Bank-owned life insurance
172,228
170,706
168,543
168,136
168,244
Federal Home Loan Bank of Des Moines
("FHLB") stock
6,921
6,793
10,995
10,960
11,960
Right-of-use lease assets
32,079
29,720
32,294
33,247
34,237
Other assets
92,444
88,829
107,635
99,818
98,812
Total assets
$
7,409,999
$
7,642,796
$
7,637,924
$
7,567,592
$
7,521,247
LIABILITIES
Deposits:
Noninterest-bearing demand
$
1,848,554
$
1,913,379
$
1,969,523
$
2,009,387
$
2,028,087
Interest-bearing demand
1,290,321
1,329,189
1,345,843
1,359,978
1,386,913
Savings and money market
2,211,966
2,209,733
2,209,550
2,184,652
2,184,675
Time
1,268,013
1,395,291
1,349,829
1,251,720
1,147,293
Total deposits
6,618,854
6,847,592
6,874,745
6,805,737
6,746,968
FHLB advances and other short-term
borrowings
—
—
—
—
25,000
Long-term debt, net of unamortized debt
issuance costs of: $384 at March 31, 2024, $445 at December 31,
2023, $506 at September 30, 2023, $566 at June 30, 2023 and $627 at
March 31, 2023
156,163
156,102
156,041
155,981
155,920
Lease liabilities
33,169
30,634
33,186
34,111
35,076
Accrued interest payable
16,654
18,948
16,752
11,402
7,688
Other liabilities
77,956
85,705
88,602
84,082
79,669
Total liabilities
6,902,796
7,138,981
7,169,326
7,091,313
7,050,321
EQUITY
Shareholders' equity:
Preferred stock, no par value, authorized
1,000,000 shares; issued and outstanding: none at March 31, 2024,
December 31, 2023, September 30, 2023, June 30, 2023, and March 31,
2023
—
—
—
—
—
Common stock, no par value, authorized
185,000,000 shares; issued and outstanding: 27,042,326 at March 31,
2024, 27,045,033 at December 31, 2023, 27,043,169 at September 30,
2023, 27,045,792 at June 30, 2023, and 27,005,545 at March 31,
2023
404,494
405,439
405,439
405,511
405,866
Additional paid-in capital
103,130
102,982
102,550
101,997
101,188
Retained earnings
123,902
117,990
110,156
104,046
96,600
Accumulated other comprehensive loss
(124,323
)
(122,596
)
(149,547
)
(135,275
)
(132,728
)
Total shareholders' equity
507,203
503,815
468,598
476,279
470,926
Total liabilities and equity
$
7,409,999
$
7,642,796
$
7,637,924
$
7,567,592
$
7,521,247
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
Consolidated Statements of
Income
(Unaudited)
TABLE 3
Three Months Ended
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(Dollars in thousands, except per share
data)
2024
2023
2023
2023
2023
Interest income:
Interest and fees on loans
$
62,819
$
62,429
$
62,162
$
60,455
$
58,269
Interest and dividends on investment
securities:
Taxable investment securities
7,211
7,292
7,016
7,145
7,336
Tax-exempt investment securities
655
686
709
727
790
Interest on deposits in other financial
institutions
3,611
3,597
2,412
877
277
Dividend income on FHLB stock
106
109
113
120
136
Total interest income
74,402
74,113
72,412
69,324
66,808
Interest expense:
Interest on deposits:
Interest-bearing demand
499
467
460
411
363
Savings and money market
8,443
7,459
6,464
4,670
3,386
Time
12,990
12,741
11,268
8,932
6,264
Interest on short-term borrowings
—
—
—
378
761
Interest on long-term debt
2,283
2,304
2,292
2,199
1,838
Total interest expense
24,215
22,971
20,484
16,590
12,612
Net interest income
50,187
51,142
51,928
52,734
54,196
Provision for credit losses
3,936
4,653
4,874
4,319
1,852
Net interest income after provision for
credit losses
46,251
46,489
47,054
48,415
52,344
Other operating income:
Mortgage banking income
613
611
765
690
526
Service charges on deposit accounts
2,103
2,312
2,193
2,137
2,111
Other service charges and fees
5,261
5,349
5,203
4,994
4,985
Income from fiduciary activities
1,435
1,272
1,234
1,068
1,321
Income from bank-owned life insurance
1,522
2,015
379
1,185
1,291
Net loss on sales of investment
securities
—
(1,939
)
(135
)
—
—
Other
310
5,552
408
361
775
Total other operating income
11,244
15,172
10,047
10,435
11,009
Other operating expense:
Salaries and employee benefits
20,735
20,164
19,015
20,848
22,023
Net occupancy
4,600
4,676
4,725
4,310
4,474
Computer software
4,287
4,026
4,473
4,621
4,606
Legal and professional services
2,320
2,245
2,359
2,469
2,886
Equipment
1,010
968
1,112
932
946
Advertising
914
1,045
968
942
933
Communication
837
632
809
791
778
Other
5,873
8,766
6,150
4,990
5,461
Total other operating expense
40,576
42,522
39,611
39,903
42,107
Income before income taxes
16,919
19,139
17,490
18,947
21,246
Income tax expense
3,974
4,273
4,349
4,472
5,059
Net income
$
12,945
$
14,866
$
13,141
$
14,475
$
16,187
Per common share data:
Basic earnings per share
$
0.48
$
0.55
$
0.49
$
0.54
$
0.60
Diluted earnings per share
0.48
0.55
0.49
0.53
0.60
Cash dividends declared
0.26
0.26
0.26
0.26
0.26
Basic weighted average shares
outstanding
27,046,525
27,044,121
27,042,762
27,024,043
26,999,138
Diluted weighted average shares
outstanding
27,099,101
27,097,285
27,079,484
27,071,478
27,122,012
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
Average Balances, Interest Income &
Expense, Yields and Rates (Taxable Equivalent)
(Unaudited)
TABLE 4
Three Months Ended
Three Months Ended
Three Months Ended
March 31, 2024
December 31, 2023
March 31, 2023
Average
Average
Average
Average
Average
Average
(Dollars in thousands)
Balance
Yield/Rate
Interest
Balance
Yield/Rate
Interest
Balance
Yield/Rate
Interest
ASSETS
Interest-earning assets:
Interest-bearing deposits in other
financial institutions
$
265,418
5.47
%
$
3,611
$
261,594
5.45
%
$
3,597
$
24,957
4.51
%
$
277
Investment securities:
Taxable
1,324,657
2.18
7,211
1,331,752
2.19
7,292
1,395,985
2.10
7,336
Tax-exempt [1]
142,830
2.32
829
146,803
2.36
868
153,067
2.61
1,000
Total investment securities
1,467,487
2.19
8,040
1,478,555
2.21
8,160
1,549,052
2.15
8,336
Loans, including loans held for sale
5,400,558
4.67
62,819
5,458,245
4.55
62,429
5,525,988
4.26
58,269
FHLB stock
6,801
6.24
106
10,219
4.30
109
12,380
4.40
136
Total interest-earning assets
7,140,264
4.19
74,576
7,208,613
4.10
74,295
7,112,377
3.80
67,018
Noninterest-earning assets
309,397
289,484
331,390
Total assets
$
7,449,661
$
7,498,097
$
7,443,767
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits
$
1,296,865
0.15
%
$
499
$
1,315,943
0.14
%
$
467
$
1,415,155
0.10
%
$
363
Savings and money market deposits
2,218,250
1.53
8,443
2,217,065
1.33
7,459
2,182,942
0.63
3,386
Time deposits up to $250,000
544,279
3.21
4,339
478,085
2.80
3,373
341,396
1.35
1,137
Time deposits over $250,000
794,019
4.38
8,651
856,159
4.34
9,368
689,432
3.02
5,127
Total interest-bearing deposits
4,853,413
1.82
21,932
4,867,252
1.68
20,667
4,628,925
0.88
10,013
FHLB advances and other short-term
borrowings
—
—
—
—
—
—
64,462
4.79
761
Long-term debt
156,129
5.88
2,283
156,069
5.86
2,304
127,273
5.86
1,838
Total interest-bearing liabilities
5,009,542
1.94
24,215
5,023,321
1.81
22,971
4,820,660
1.06
12,612
Noninterest-bearing deposits
1,806,399
1,863,631
2,026,735
Other liabilities
132,600
137,437
132,816
Total liabilities
6,948,541
7,024,389
6,980,211
Total equity
501,120
473,708
463,556
Total liabilities and equity
$
7,449,661
$
7,498,097
$
7,443,767
Net interest income
$
50,361
$
51,324
$
54,406
Interest rate spread
2.25
%
2.29
%
2.74
%
Net interest margin
2.83
%
2.84
%
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
Loans by Geographic
Distribution
(Unaudited)
TABLE 5
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(Dollars in thousands)
2024
2023
2023
2023
2023
HAWAII:
Commercial and industrial
$
420,009
$
421,736
$
406,433
$
374,601
$
376,979
Real estate:
Construction
145,213
163,337
174,057
168,012
154,303
Residential mortgage
1,924,889
1,927,789
1,930,740
1,942,906
1,941,230
Home equity
729,210
736,524
753,980
750,760
743,908
Commercial mortgage
1,103,174
1,063,969
1,045,625
1,037,826
1,030,086
Consumer
306,563
322,346
338,248
327,790
342,922
Total loans, net of deferred fees and
costs
4,629,058
4,635,701
4,649,083
4,601,895
4,589,428
Less: Allowance for credit losses
(48,739
)
(48,189
)
(48,105
)
(44,828
)
(44,062
)
Loans, net of allowance for credit
losses
$
4,580,319
$
4,587,512
$
4,600,978
$
4,557,067
$
4,545,366
U.S. MAINLAND: [1]
Commercial and industrial
$
156,087
$
153,971
$
157,373
$
170,557
$
179,906
Real estate:
Construction
23,356
22,182
37,455
32,807
27,171
Commercial mortgage
319,088
318,933
319,802
329,736
331,546
Consumer
273,828
308,195
344,997
385,688
429,346
Total loans, net of deferred fees and
costs
772,359
803,281
859,627
918,788
967,969
Less: Allowance for credit losses
(14,793
)
(15,745
)
(16,412
)
(19,021
)
(19,037
)
Loans, net of allowance for credit
losses
$
757,566
$
787,536
$
843,215
$
899,767
$
948,932
TOTAL:
Commercial and industrial
$
576,096
$
575,707
$
563,806
$
545,158
$
556,885
Real estate:
Construction
168,569
185,519
211,512
200,819
181,474
Residential mortgage
1,924,889
1,927,789
1,930,740
1,942,906
1,941,230
Home equity
729,210
736,524
753,980
750,760
743,908
Commercial mortgage
1,422,262
1,382,902
1,365,427
1,367,562
1,361,632
Consumer
580,391
630,541
683,245
713,478
772,268
Total loans, net of deferred fees and
costs
5,401,417
5,438,982
5,508,710
5,520,683
5,557,397
Less: Allowance for credit losses
(63,532
)
(63,934
)
(64,517
)
(63,849
)
(63,099
)
Loans, net of allowance for credit
losses
$
5,337,885
$
5,375,048
$
5,444,193
$
5,456,834
$
5,494,298
[1]
U.S. Mainland includes
territories of the United States.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Deposits
(Unaudited)
TABLE 6
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(Dollars in thousands)
2024
2023
2023
2023
2023
Noninterest-bearing demand
$
1,848,554
$
1,913,379
$
1,969,523
$
2,009,387
$
2,028,087
Interest-bearing demand
1,290,321
1,329,189
1,345,843
1,359,978
1,386,913
Savings and money market
2,211,966
2,209,733
2,209,550
2,184,652
2,184,675
Time deposits up to $250,000
544,600
533,898
465,543
427,864
372,150
Core deposits
5,895,441
5,986,199
5,990,459
5,981,881
5,971,825
Government time deposits
235,463
374,581
400,130
383,426
360,501
Other time deposits greater than
$250,000
487,950
486,812
484,156
440,430
414,642
Total time deposits greater than
$250,000
723,413
861,393
884,286
823,856
775,143
Total deposits
$
6,618,854
$
6,847,592
$
6,874,745
$
6,805,737
$
6,746,968
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
Nonperforming Assets and Accruing Loans
90+ Days Past Due
(Unaudited)
TABLE 7
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(Dollars in thousands)
2024
2023
2023
2023
2023
Nonaccrual loans:
Commercial and industrial
$
357
$
432
$
352
$
319
$
264
Real estate:
Construction
—
—
—
4,851
—
Residential mortgage
7,979
4,962
4,949
4,385
3,445
Home equity
929
834
677
797
712
Commercial mortgage
77
77
77
77
77
Consumer
790
703
597
632
815
Total nonaccrual loans
10,132
7,008
6,652
11,061
5,313
Other real estate owned ("OREO")
—
—
—
—
—
Total nonperforming assets ("NPAs")
10,132
7,008
6,652
11,061
5,313
Accruing loans 90+ days past due:
Real estate:
Construction
588
—
—
—
—
Residential mortgage
386
—
794
959
—
Home equity
560
229
—
133
—
Consumer
924
1,083
2,120
2,207
1,908
Total accruing loans 90+ days past due
2,458
1,312
2,914
3,299
1,908
Total NPAs and accruing loans 90+ days
past due
$
12,590
$
8,320
$
9,566
$
14,360
$
7,221
Ratio of total nonaccrual loans to total
loans
0.19
%
0.13
%
0.12
%
0.20
%
0.10
%
Ratio of total NPAs to total assets
0.14
0.09
0.09
0.15
0.07
Ratio of total NPAs to total loans and
OREO
0.19
0.13
0.12
0.20
0.10
Ratio of total NPAs and accruing loans 90+
days past due to total loans and OREO
0.23
0.15
0.17
0.26
0.13
Quarter-to-quarter changes in NPAs:
Balance at beginning of quarter
$
7,008
$
6,652
$
11,061
$
5,313
$
5,251
Additions
4,792
1,836
2,311
7,105
1,609
Reductions:
Payments
(263
)
(268
)
(5,718
)
(290
)
(505
)
Return to accrual status
(198
)
(137
)
(207
)
(212
)
(14
)
Net charge-offs, valuation and other
adjustments
(1,207
)
(1,075
)
(795
)
(855
)
(1,028
)
Total reductions
(1,668
)
(1,480
)
(6,720
)
(1,357
)
(1,547
)
Balance at end of quarter
$
10,132
$
7,008
$
6,652
$
11,061
$
5,313
CENTRAL PACIFIC FINANCIAL CORP. AND
SUBSIDIARIES
Allowance for Credit Losses on
Loans
(Unaudited)
TABLE 8
Three Months Ended
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(Dollars in thousands)
2024
2023
2023
2023
2023
Allowance for credit losses:
Balance at beginning of period
$
63,934
$
64,517
$
63,849
$
63,099
$
63,738
Provision for credit losses on loans
4,121
4,959
4,526
4,135
1,615
Charge-offs:
Commercial and industrial
(682
)
(419
)
(402
)
(362
)
(779
)
Consumer
(4,838
)
(5,976
)
(4,710
)
(3,873
)
(2,686
)
Total charge-offs
(5,520
)
(6,395
)
(5,112
)
(4,235
)
(3,465
)
Recoveries:
Commercial and industrial
90
84
261
125
250
Real estate:
Construction
—
—
1
—
—
Residential mortgage
8
7
10
7
53
Home equity
6
42
—
15
—
Consumer
893
720
982
703
908
Total recoveries
997
853
1,254
850
1,211
Net charge-offs
(4,523
)
(5,542
)
(3,858
)
(3,385
)
(2,254
)
Balance at end of period
$
63,532
$
63,934
$
64,517
$
63,849
$
63,099
Average loans, net of deferred fees and
costs
$
5,400,558
$
5,458,245
$
5,507,248
$
5,543,398
$
5,525,988
Ratio of annualized net charge-offs to
average loans
0.34
%
0.41
%
0.28
%
0.24
%
0.16
%
Ratio of ACL to total loans
1.18
1.18
1.17
1.16
1.14
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424062692/en/
Investor Contact: Ian Tanaka SVP, Treasury Manager (808)
544-3646 ian.tanaka@cpb.bank Media Contact: Tim Sakahara
AVP, Corporate Communications Manager (808) 544-5125
tim.sakahara@cpb.bank
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