Central Pacific Financial Corp. Reports $11.2 Million First Quarter Earnings
April 28, 2016
Page 1
Exhibit 99
|
| | | |
| | | | FOR IMMEDIATE RELEASE |
| | | | |
| Investor Contact: | Dane Teruya | Media Contact: | Wayne Kirihara |
| | VP, Treasury Manager | | SVP, Chief Marketing Officer |
| | (808) 544-3626 | | (808) 544-3687 |
| | dane.teruya@centralpacificbank.com | | wayne.kirihara@centralpacificbank.com |
NEWS RELEASE
CENTRAL PACIFIC FINANCIAL CORP. REPORTS $11.2 MILLION
FIRST QUARTER EARNINGS
HONOLULU, HI, April 28, 2016 – Central Pacific Financial Corp. (NYSE: CPF), (the “Company”), today reported net income for the first quarter of 2016 of $11.2 million, or $0.35 per diluted share, compared to net income in the first quarter of 2015 of $10.4 million, or $0.29 per diluted share, and net income in the fourth quarter of 2015 of $10.9 million, or $0.34 per diluted share.
“We are pleased with our first quarter results and believe this positions us well for the remainder of the year,” said Catherine Ngo, President and Chief Executive Officer. “Our ongoing and consistent efforts to grow our loan portfolio and strengthen profitability are reflected in our net interest margin expansion and efficiency ratio improvement.”
During the first quarter of 2016, the Company repurchased 233,722 shares of common stock, or approximately 0.7% of its common stock outstanding as of December 31, 2015, at a total cost of $4.7 million. The Company's remaining repurchase authority under its common stock repurchase program at March 31, 2016 is $25.3 million.
On April 27, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.14 per share on the Company’s outstanding common shares. The dividend will be payable on June 15, 2016 to shareholders of record at the close of business on May 31, 2016.
Since reinstating quarterly cash dividends in 2013, the Company has returned a total of $290.2 million in cash to its shareholders, in the form of cash dividends totaling $50.7 million, and through the repurchase of 11,402,223 shares of common stock at a total cost of $239.5 million, excluding fees and expenses.
Central Pacific Financial Corp. Reports $11.2 Million First Quarter Earnings
April 28, 2016
Page 2
Significant Highlights and First Quarter Results
| |
| • | Reported net income of $11.2 million, compared to net income in the first quarter of 2015 of $10.4 million and net income in the fourth quarter of 2015 of $10.9 million. |
| |
| • | Loans and leases were up 11.5% from the prior year period and increased by $97.4 million, or 3.0%, during the quarter to $3.31 billion at March 31, 2016, with balanced growth across the portfolio. |
| |
| • | Total deposits were up 7.4% from the prior year period and increased by $63.2 million, or 1.4%, during the quarter to $4.50 billion at March 31, 2016. Core deposits were up 10.0% from the prior year period and increased by $81.7 million, or 2.3%, during the quarter to $3.66 billion at March 31, 2016. |
| |
| • | Reported net interest income of $39.2 million, compared to $36.2 million in first quarter of 2015 and $38.2 million in the fourth quarter of 2015. Reported a net interest margin of 3.33%, compared to 3.28% in the prior year period and 3.30% in the fourth quarter of 2015. |
| |
| • | Recorded a credit to the provision for loan and lease losses of $0.7 million in the first quarter of 2016, compared to a credit of $2.7 million in the first quarter of 2015 and a credit of $2.0 million in the fourth quarter of 2015. |
| |
| • | Reported an efficiency ratio of 66.58% in the first quarter of 2016, compared to 71.73% in the first quarter of 2015 and 67.82% in the fourth quarter of 2015. |
| |
| • | Maintained a strong capital position with leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios at the holding company of 10.8%, 14.5%, 15.8%, and 12.5%, respectively, as of March 31, 2016. The Company’s capital ratios continue to be in excess of the minimum levels required for a “well-capitalized” regulatory designation under Basel III. |
Earnings Highlights
Net interest income for the first quarter of 2016 was $39.2 million, compared to $36.2 million in the year-ago quarter and $38.2 million in the fourth quarter of 2015. Net interest margin was 3.33%, compared to 3.28% in the year-ago quarter and 3.30% in the fourth quarter of 2015. The increases in net interest income and net interest margin from the year-ago quarter were primarily attributable to average loan portfolio balances increasing by $303.3 million. This increase was partially offset by a 4 basis point increase in rates paid on our average total interest-bearing deposits. The sequential quarter increases in net interest income and net interest margin were primarily attributable to average loan portfolio balances increasing by $116.0 million. In addition, the taxable equivalent yield on the loan portfolio increased to 3.92% in the current quarter from 3.87% last quarter and the taxable equivalent yield on the investment securities portfolio increased to 2.64% in the current quarter from 2.60% last quarter. These increases were partially offset by a $158.8 million increase in our average total interest-bearing deposits, combined with a 3 basis point increase in rates paid on our average total interest-bearing deposits.
In the first quarter of 2016, a credit to the provision for loan and lease losses of $0.7 million was recorded, compared to a credit of $2.7 million in the year-ago quarter and a credit of $2.0 million in the fourth quarter of 2015.
Other operating income for the first quarter of 2016 totaled $10.2 million, compared to $11.2 million in the year-ago quarter and $9.8 million in the fourth quarter of 2015. The decrease from the year-ago quarter was primarily due to lower unrealized gains on loans held for sale and interest rate lock commitments of $0.5 million, and lower other service charges and fees and lower other recoveries of $0.3 million each. The sequential quarter increase was primarily due to higher income from bank-owned life ins
Central Pacific Financial Corp. Reports $11.2 Million First Quarter Earnings
April 28, 2016
Page 3
urance of $0.2 million, and higher net gain on sales of residential mortgage loans and higher net gain on sales of foreclosed assets of $0.1 million each.
Other operating expense for the first quarter of 2016 totaled $32.9 million, compared to $34.0 million in the year-ago quarter and $32.6 million in the fourth quarter of 2015. The decrease from the year-ago quarter was primarily attributable to a credit to the reserve for residential mortgage loan repurchase losses of $0.4 million in the current quarter compared to an increase to the provision of $0.2 million in the year-ago quarter, and lower legal and professional services of $0.6 million, partially offset by higher computer software expense of $0.6 million. The sequential quarter increase was primarily due to higher amortization of mortgage servicing rights of $0.7 million and higher computer software expense of $0.6 million, partially offset by lower net occupancy expense of $0.7 million.
The efficiency ratio for the first quarter of 2016 was 66.58%, compared to 71.73% in the year-ago quarter and 67.82% in the fourth quarter of 2015. The improvement in the efficiency ratio from the year-ago quarter was attributable to the growth in net interest income, combined with the decrease in other operating expenses, offset by lower other operating income in the current quarter as described above. The sequential quarter improvement in the efficiency ratio was attributable to higher net interest income and higher other operating income, offset by higher other operating expenses in the current quarter as described above.
In the first quarter of 2016, the Company recorded income tax expense of $6.1 million, compared to income tax expense of $5.8 million in the year-ago quarter and $6.5 million in the fourth quarter of 2015. The effective tax rate for the first quarter of 2016 was 35.2%, compared to 35.7% in the year-ago quarter and 37.2% in the fourth quarter of 2015. As of March 31, 2016, the Company’s net deferred tax assets totaled $67.9 million, compared to $94.3 million and $82.0 million at March 31, 2015 and December 31, 2015, respectively.
Balance Sheet Highlights
Total assets at March 31, 2016, of $5.24 billion increased by $276.3 million from March 31, 2015, and increased by $110.9 million from December 31, 2015.
Total loans and leases at March 31, 2016, of $3.31 billion increased by $341.2 million and $97.4 million from March 31, 2015 and December 31, 2015, respectively. The increase in total loans and leases from March 31, 2015 was primarily due to an increase in the commercial, residential mortgage, commercial mortgage, and consumer loan portfolios of $34.4 million, $158.9 million, $71.8 million, and $89.4 million, respectively, partially offset a decrease in the construction loan portfolio of $11.4 million. The increase in total loans and leases from the fourth quarter of 2015 was primarily due to an increase in the commercial, construction, residential mortgage, commercial mortgage, and consumer loan portfolios of $14.0 million, $16.5 million, $22.9 million, $12.3 million, and $31.9 million, respectively.
Total deposits at March 31, 2016 of $4.50 billion increased by $308.0 million from March 31, 2015, and increased by $63.2 million from December 31, 2015. Core deposits, which include demand deposits, savings and money market deposits, and time deposits less than $100,000, totaled $3.66 billion at March 31, 2016. This represents an increase of $333.8 million and $81.7 million from March 31, 2015 and December 31, 2015, respectively. Changes in total deposits from March 31, 2015 included net increases in savings and money market deposits of $218.3 million, noninterest-bearing demand deposits of $98.0 million, and interest-bearing demand deposits of $43.3 million, offset by net decreases in time deposits $100,000 and over of $25.8 million and time deposits less than $100,000 of $25.8 million. Changes in total deposits during the quarter included net increases in savings and money market deposits of $66.4 million and interest-bearing demand deposits of $25.0 million, offset by net decreases in time deposits $100,000 and over of $18.6 million, time deposits less than $100,000 of $5.2 million, and noninterest-bearing demand deposits of $4.5 million.
Central Pacific Financial Corp. Reports $11.2 Million First Quarter Earnings
April 28, 2016
Page 4
Total shareholders’ equity was $509.4 million at March 31, 2016, compared to $572.9 million and $494.6 million at March 31, 2015 and December 31, 2015, respectively. The sequential quarter increase reflects an increase in unrealized gains on investment securities of $11.9 million and net income of $11.2 million, partially offset by repurchases of common stock under the Company's common stock repurchase program of $4.7 million and common stock dividends paid of $4.4 million.
Asset Quality
Nonperforming assets at March 31, 2016 totaled $15.9 million, or 0.30% of total assets, compared to $40.8 million, or 0.82% of total assets at March 31, 2015, and $16.2 million, or 0.32% of total assets at December 31, 2015. The sequential-quarter decrease in nonperforming assets reflects net decreases in Hawaii residential mortgage assets of $1.3 million and Hawaii commercial mortgage assets of $0.2 million, partially offset by a net increase in Hawaii commercial assets of $1.2 million.
Loans delinquent for 90 days or more still accruing interest totaled $0.8 million at March 31, 2016, compared to $5 thousand and $0.3 million at March 31, 2015 and December 31, 2015, respectively. In addition, loans delinquent for 30 days or more still accruing interest totaled $7.4 million at March 31, 2016, compared to $3.6 million at March 31, 2015 and $7.1 million at December 31, 2015.
Net charge-offs in the first quarter of 2016 totaled $0.4 million, compared to net recoveries of $0.1 million in the first quarter of 2015, and net charge-offs of $1.4 million in the fourth quarter of 2015.
The ALLL, as a percentage of total loans and leases, was 1.88% at March 31, 2016, compared to 2.41% at March 31, 2015 and 1.97% at December 31, 2015. The ALLL, as a percentage of nonperforming assets, was 389.80% at March 31, 2016, compared to 175.21% at March 31, 2015 and 390.10% at December 31, 2015. The ALLL, as a percentage of nonaccrual loans, was 423.24% at March 31, 2016, compared to 190.89% at March 31, 2015 and 443.75% at December 31, 2015.
Capital Levels
At March 31, 2016, the Company’s leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios were 10.8%, 14.5%, 15.8%, and 12.5%, respectively. At December 31, 2015, the Company’s leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios were 10.7%, 14.4%, 15.7%, and 12.8%, respectively. The Company’s capital ratios continue to exceed the levels required to be considered a “well-capitalized” institution for regulatory purposes under Basel III.
Non-GAAP Financial Measures
This press release contains certain references to financial measures that have been adjusted to exclude certain expenses and other specified items. These financial measures differ from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) in that they exclude unusual or non-recurring charges, losses, credits or gains. This press release identifies the specific items excluded from the comparable GAAP financial measure in the calculation of each non-GAAP financial measure. Management believes that financial presentations excluding the impact of these items provide useful supplemental information that is important to a proper understanding of the Company’s core business results by investors. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies.
Conference Call
Central Pacific Financial Corp. Reports $11.2 Million First Quarter Earnings
April 28, 2016
Page 5
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.centralpacificbank.com. Alternatively, investors may participate in the live call by dialing 1-877-505-7644. A playback of the call will be available through May 28, 2016 by dialing 1-877-344-7529 (passcode: 10084062) and on the Company’s website.
About Central Pacific Financial Corp.
Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $5.2 billion in assets. Central Pacific Bank, its primary subsidiary, operates 35 branches and 103 ATMs in the state of Hawaii, as of March 31, 2016. For additional information, please visit the Company’s website at http://www.centralpacificbank.com.
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Forward-Looking Statements
This document may contain forward-looking statements concerning projections of revenues, income/loss, earnings/loss per share, capital expenditures, dividends, capital structure, or other financial items, plans and objectives of management for future operations, future economic performance, or any of the assumptions underlying or relating to any of the foregoing. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and may include the words “believes,” “plans,” “expects,” “anticipates,” “forecasts,” “intends,” “hopes,” “should,” “estimates,” or words of similar meaning. While the Company believes that our forward-looking statements 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 materially differ from projections for a variety of reasons, to include, but not limited to: the effect of, and our failure to comply with any regulatory orders we are or may become subject to; oversupply of inventory and adverse conditions in the Hawaii and California real estate markets and any weakness 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 political events, acts of war or terrorism, natural disasters such as wildfires, tsunamis 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 economic conditions, including destabilizing factors in the financial industry and deterioration of the real estate market, as well as the impact from any declining levels of consumer and business confidence in the state of the economy in general and in financial institutions in particular; our ability to continue making progress on our recovery plan; the impact of regulatory action on the Company and Central Pacific Bank and legislation affecting the banking industry; 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, other regulatory reform, and any related rules and regulations on 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, and the results of regulatory examinations or reviews; 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; inflation, interest rate, securities market and monetary fluctuations; negative trends in our market capitalization and adverse changes in the price of the Company’s common shares; changes in consumer spending, borrowings and savings habits; 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, the Financial Accounting Standards
Central Pacific Financial Corp. Reports $11.2 Million First Quarter Earnings
April 28, 2016
Page 6
Board and other accounting standard setters; our ability to attract and retain skilled executives and employees; changes in our organization, compensation and benefit plans; and our success at managing the risks involved in any of the foregoing items. For further information on factors that could cause actual results to materially differ from projections, 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. The Company does not update any of its forward-looking statements except as required by law.
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| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Financial Highlights | |
| (Unaudited) | TABLE 1 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | Mar 31, | | Dec 31, | | Sep 30, | | Jun 30, | | Mar 31, |
| (dollars in thousands, except for per share amounts) | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| CONDENSED INCOME STATEMENT | | |
| | |
| | | | | | |
|
| Net interest income | | $ | 39,211 |
| | $ | 38,194 |
| | $ | 37,805 |
| | $ | 37,294 |
| | $ | 36,235 |
|
| Provision (credit) for loan and lease losses | | (747 | ) | | (1,958 | ) | | (3,647 | ) | | (7,319 | ) | | (2,747 | ) |
| Net interest income after provision (credit) for loan and lease losses | | 39,958 |
| | 40,152 |
| | 41,452 |
| | 44,613 |
| | 38,982 |
|
| Total other operating income | | 10,165 |
| | 9,841 |
| | 9,829 |
| | 8,124 |
| | 11,190 |
|
| Total other operating expense | | 32,875 |
| | 32,576 |
| | 32,175 |
| | 32,458 |
| | 34,018 |
|
| Income before taxes | | 17,248 |
| | 17,417 |
| | 19,106 |
| | 20,279 |
| | 16,154 |
|
| Income tax expense | | 6,067 |
| | 6,485 |
| | 6,900 |
| | 7,944 |
| | 5,759 |
|
| Net income | | 11,181 |
| | 10,932 |
| | 12,206 |
| | 12,335 |
| | 10,395 |
|
| Basic earnings per common share | | $ | 0.36 |
| | $ | 0.35 |
| | $ | 0.39 |
| | $ | 0.39 |
| | $ | 0.30 |
|
| Diluted earnings per common share | | 0.35 |
| | 0.34 |
| | 0.38 |
| | 0.39 |
| | 0.29 |
|
| Dividends declared per common share (1) | | 0.14 |
| | 0.46 |
| | 0.12 |
| | 0.12 |
| | 0.12 |
|
| | | | | | | | | | | |
| PERFORMANCE RATIOS | | |
| | |
| | | | | | |
|
| Return on average assets (2) | | 0.87 | % | | 0.87 | % | | 0.98 | % | | 1.00 | % | | 0.85 | % |
| Return on average shareholders’ equity (2) | | 8.85 |
| | 8.68 |
| | 9.91 |
| | 9.93 |
| | 7.32 |
|
| Return on average tangible shareholders’ equity (2) | | 8.98 |
| | 8.82 |
| | 10.08 |
| | 10.11 |
| | 7.45 |
|
| Efficiency ratio (3) | | 66.58 |
| | 67.82 |
| | 67.55 |
| | 71.47 |
| | 71.73 |
|
| Net interest margin (2) | | 3.33 |
| | 3.30 |
| | 3.31 |
| | 3.32 |
| | 3.28 |
|
| Dividend payout ratio (1) (4) | | 40.00 |
| | 135.29 |
| | 31.58 |
| | 30.77 |
| | 41.38 |
|
| Average shareholders’ equity to average assets | | 9.81 |
| | 9.97 |
| | 9.90 |
| | 10.04 |
| | 11.62 |
|
| | | | | | | | | | | |
| SELECTED AVERAGE BALANCES | | |
| | |
| | | | | | |
|
| Average loans and leases, including loans held for sale | | $ | 3,258,872 |
| | $ | 3,142,895 |
| | $ | 3,070,384 |
| | $ | 2,981,184 |
| | $ | 2,955,525 |
|
| Average interest-earning assets | | 4,786,256 |
| | 4,676,931 |
| | 4,611,234 |
| | 4,566,577 |
| | 4,505,895 |
|
| Average assets | | 5,148,744 |
| | 5,049,232 |
| | 4,974,154 |
| | 4,947,802 |
| | 4,889,722 |
|
| Average deposits | | 4,468,070 |
| | 4,327,908 |
| | 4,242,043 |
| | 4,198,758 |
| | 4,123,293 |
|
| Average interest-bearing liabilities | | 3,492,748 |
| | 3,370,560 |
| | 3,346,484 |
| | 3,357,400 |
| | 3,266,067 |
|
| Average shareholders’ equity | | 505,330 |
| | 503,570 |
| | 492,683 |
| | 496,881 |
| | 567,991 |
|
| Average tangible shareholders' equity | | 498,271 |
| | 495,845 |
| | 484,246 |
| | 487,797 |
| | 558,219 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | Mar 31, | | Dec 31, | | Sep 30, | | Jun 30, | | Mar 31, |
| (dollars in thousands) | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| REGULATORY CAPITAL | | | | | | | | | | |
| Central Pacific Financial Corp. | | | | | | | | | | |
| Leverage capital | | $ | 547,195 |
| | $ | 532,787 |
| | $ | 533,984 |
| | $ | 508,699 |
| | $ | 572,957 |
|
| Tier 1 risk-based capital | | 547,195 |
| | 532,787 |
| | 533,984 |
| | 508,699 |
| | 572,957 |
|
| Total risk-based capital | | 594,801 |
| | 579,651 |
| | 579,182 |
| | 552,999 |
| | 618,003 |
|
| Common equity tier 1 capital | | 472,171 |
| | 472,698 |
| | 474,169 |
| | 460,004 |
| | 528,880 |
|
| Central Pacific Bank | | | | | | | | | | |
| Leverage capital | | 533,307 |
| | 518,617 |
| | 515,625 |
| | 501,732 |
| | 559,137 |
|
| Tier 1 risk-based capital | | 533,307 |
| | 518,617 |
| | 515,625 |
| | 501,732 |
| | 559,137 |
|
| Total risk-based capital | | 580,715 |
| | 565,231 |
| | 560,569 |
| | 546,005 |
| | 604,155 |
|
| Common equity tier 1 capital | | 533,307 |
| | 518,617 |
| | 515,625 |
| | 501,732 |
| | 559,137 |
|
| | | | | | | | | | | |
| REGULATORY CAPITAL RATIOS | | | | | | | | | | |
| Central Pacific Financial Corp. | | | | | | | | | | |
| Leverage capital ratio | | 10.8 | % | | 10.7 | % | | 10.9 | % | | 10.5 | % | | 12.0 | % |
| Tier 1 risk-based capital ratio | | 14.5 |
| | 14.4 |
| | 15.0 |
| | 14.5 |
| | 16.0 |
|
| Total risk-based capital ratio | | 15.8 |
| | 15.7 |
| | 16.3 |
| | 15.7 |
| | 17.3 |
|
| Common equity tier 1 capital ratio | | 12.5 |
| | 12.8 |
| | 13.3 |
| | 13.1 |
| | 14.8 |
|
| Central Pacific Bank | | | | | | | | | | |
| Leverage capital ratio | | 10.5 |
| | 10.4 |
| | 10.5 |
| | 10.3 |
| | 11.7 |
|
| Tier 1 risk-based capital ratio | | 14.2 |
| | 14.1 |
| | 14.5 |
| | 14.3 |
| | 15.7 |
|
| Total risk-based capital ratio | | 15.4 |
| | 15.3 |
| | 15.8 |
| | 15.5 |
| | 16.9 |
|
| Common equity tier 1 capital ratio | | 14.2 |
| | 14.1 |
| | 14.5 |
| | 14.3 |
| | 15.7 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | Mar 31, | | Dec 31, | | Sep 30, | | Jun 30, | | Mar 31, |
| (dollars in thousands, except for per share amounts) | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| BALANCE SHEET | | |
| | |
| | | | | | |
|
| Loans and leases | | $ | 3,308,968 |
| | $ | 3,211,532 |
| | $ | 3,101,463 |
| | $ | 3,006,055 |
| | $ | 2,967,772 |
|
| Total assets | | 5,242,202 |
| | 5,131,288 |
| | 5,021,833 |
| | 4,967,851 |
| | 4,965,925 |
|
| Total deposits | | 4,496,602 |
| | 4,433,439 |
| | 4,230,503 |
| | 4,182,322 |
| | 4,188,642 |
|
| Long-term debt | | 92,785 |
| | 92,785 |
| | 92,785 |
| | 92,785 |
| | 92,785 |
|
| Total shareholders’ equity | | 509,358 |
| | 494,614 |
| | 503,261 |
| | 488,847 |
| | 572,925 |
|
| Total shareholders’ equity to total assets | | 9.72 | % | | 9.64 | % | | 10.02 | % | | 9.84 | % | | 11.54 | % |
| Tangible common equity to tangible assets (5) | | 9.60 |
| | 9.51 |
| | 9.88 |
| | 9.68 |
| | 11.37 |
|
| | | | | | | | | | | |
| ASSET QUALITY | | |
| | |
| | | | | | |
|
| Allowance for loan and lease losses | | $ | 62,149 |
| | $ | 63,314 |
| | $ | 66,644 |
| | $ | 66,924 |
| | $ | 71,433 |
|
| Non-performing assets | | 15,944 |
| | 16,230 |
| | 14,001 |
| | 32,108 |
| | 40,770 |
|
| Allowance to loans and leases outstanding | | 1.88 | % | | 1.97 | % | | 2.15 | % | | 2.23 | % | | 2.41 | % |
| Allowance to non-performing assets | | 389.80 |
| | 390.10 |
| | 475.99 |
| | 208.43 |
| | 175.21 |
|
| | | | | | | | | | | |
| PER SHARE OF COMMON STOCK | | |
| | |
| | | | | | |
|
| Book value per common share | | $ | 16.34 |
| | $ | 15.77 |
| | $ | 16.06 |
| | $ | 15.52 |
| | $ | 16.46 |
|
| Tangible book value per common share | | 16.13 |
| | 15.54 |
| | 15.81 |
| | 15.24 |
| | 16.20 |
|
| Closing market price per common share | | 21.77 |
| | 22.02 |
| | 20.97 |
| | 23.75 |
| | 22.97 |
|
| | | | | | | | | | | |
| | | | | | | | | | | |
| (1) Dividends declared in the fourth quarter of 2015 include a special cash dividend of $0.32 per share. |
| (2) Annualized. |
| (3) Efficiency ratio is defined as total operating expense divided by total revenue (net interest income and total other operating income). |
| (4) Dividend payout ratio is defined as dividends declared per share divided by diluted earnings per share. |
| (5) The tangible common equity ratio is a non-GAAP measure which should be read in conjunction with the Company’s GAAP financial information. Comparison of our ratio with those of other companies may not be possible because other companies may calculate the ratio differently. See Reconciliation of Non-GAAP Financial Measures. |
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Reconciliation of Non-GAAP Financial Measures | |
| (Unaudited) | TABLE 2 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| (Dollars in thousands) | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| Tangible Common Equity Ratio: | | |
| | |
| | | | | | |
|
| Total shareholders’ equity | | $ | 509,358 |
| | $ | 494,614 |
| | $ | 503,261 |
| | $ | 488,847 |
| | $ | 572,925 |
|
| Less: Other intangible assets | | (6,686 | ) | | (7,355 | ) | | (8,023 | ) | | (8,692 | ) | | (9,361 | ) |
| Tangible common equity | | $ | 502,672 |
| | $ | 487,259 |
| | $ | 495,238 |
| | $ | 480,155 |
| | $ | 563,564 |
|
| | | | | | | | | | | |
| Total assets | | $ | 5,242,202 |
| | $ | 5,131,288 |
| | $ | 5,021,833 |
| | $ | 4,967,851 |
| | $ | 4,965,925 |
|
| Less: Other intangible assets | | (6,686 | ) | | (7,355 | ) | | (8,023 | ) | | (8,692 | ) | | (9,361 | ) |
| Tangible assets | | $ | 5,235,516 |
| | $ | 5,123,933 |
| | $ | 5,013,810 |
| | $ | 4,959,159 |
| | $ | 4,956,564 |
|
| | | | | | | | | | | |
| Tangible common equity to tangible assets | | 9.60 | % | | 9.51 | % | | 9.88 | % | | 9.68 | % | | 11.37 | % |
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Consolidated Balance Sheets | |
| (Unaudited) | TABLE 3 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| (Dollars in thousands, except share data) | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| ASSETS | | |
| | |
| | | | | | |
|
| Cash and due from banks | | $ | 85,495 |
| | $ | 71,797 |
| | $ | 69,628 |
| | $ | 66,715 |
| | $ | 74,743 |
|
| Interest-bearing deposits in other banks | | 7,180 |
| | 8,397 |
| | 14,376 |
| | 14,775 |
| | 10,478 |
|
| Investment securities: | | | | |
| | |
| | | | |
|
| Available for sale | | 1,299,176 |
| | 1,272,255 |
| | 1,272,382 |
| | 1,274,312 |
| | 1,298,487 |
|
Held to maturity (fair value of $243,072 at March 31, 2016,
$244,136 at December 31, 2015,
$254,540 at September 30, 2015,
$259,150 at June 30, 2015, and
$256,357 at March 31, 2015) | | 241,597 |
| | 247,917 |
| | 254,719 |
| | 262,778 |
| | 255,592 |
|
| Total investment securities | | 1,540,773 |
| | 1,520,172 |
| | 1,527,101 |
| | 1,537,090 |
| | 1,554,079 |
|
| Loans held for sale | | 11,270 |
| | 14,109 |
| | 9,786 |
| | 22,917 |
| | 7,206 |
|
| Loans and leases | | 3,308,968 |
| | 3,211,532 |
| | 3,101,463 |
| | 3,006,055 |
| | 2,967,772 |
|
| Less allowance for loan and lease losses | | 62,149 |
| | 63,314 |
| | 66,644 |
| | 66,924 |
| | 71,433 |
|
| Net loans and leases | | 3,246,819 |
| | 3,148,218 |
| | 3,034,819 |
| | 2,939,131 |
| | 2,896,339 |
|
| Premises and equipment, net | | 48,322 |
| | 49,161 |
| | 47,822 |
| | 47,681 |
| | 48,768 |
|
| Accrued interest receivable | | 14,818 |
| | 14,898 |
| | 13,779 |
| | 14,021 |
| | 13,420 |
|
| Investment in unconsolidated subsidiaries | | 5,627 |
| | 6,157 |
| | 6,489 |
| | 6,720 |
| | 6,840 |
|
| Other real estate | | 1,260 |
| | 1,962 |
| | 1,913 |
| | 5,278 |
| | 3,349 |
|
| Mortgage servicing rights | | 16,800 |
| | 17,797 |
| | 18,174 |
| | 18,586 |
| | 18,869 |
|
| Other intangible assets | | 6,686 |
| | 7,355 |
| | 8,023 |
| | 8,692 |
| | 9,361 |
|
| Bank-owned life insurance | | 154,592 |
| | 153,967 |
| | 153,449 |
| | 153,015 |
| | 153,251 |
|
| Federal Home Loan Bank stock | | 10,420 |
| | 8,606 |
| | 12,048 |
| | 12,129 |
| | 43,442 |
|
| Other assets | | 92,140 |
| | 108,692 |
| | 104,426 |
| | 121,101 |
| | 125,780 |
|
| Total assets | | $ | 5,242,202 |
| | $ | 5,131,288 |
| | $ | 5,021,833 |
| | $ | 4,967,851 |
| | $ | 4,965,925 |
|
| LIABILITIES AND EQUITY | | |
| | |
| | |
| | |
| | |
|
| Deposits: | | |
| | |
| | |
| | |
| | |
|
| Noninterest-bearing demand | | $ | 1,140,741 |
| | $ | 1,145,244 |
| | $ | 1,112,761 |
| | $ | 1,080,428 |
| | $ | 1,042,781 |
|
| Interest-bearing demand | | 849,880 |
| | 824,895 |
| | 785,936 |
| | 807,851 |
| | 806,555 |
|
| Savings and money market | | 1,465,524 |
| | 1,399,093 |
| | 1,283,517 |
| | 1,261,180 |
| | 1,247,266 |
|
| Time | | 1,040,457 |
| | 1,064,207 |
| | 1,048,289 |
| | 1,032,863 |
| | 1,092,040 |
|
| Total deposits | | 4,496,602 |
| | 4,433,439 |
| | 4,230,503 |
| | 4,182,322 |
| | 4,188,642 |
|
| Short-term borrowings | | 106,000 |
| | 69,000 |
| | 155,000 |
| | 157,000 |
| | 70,000 |
|
| Long-term debt | | 92,785 |
| | 92,785 |
| | 92,785 |
| | 92,785 |
| | 92,785 |
|
| Other liabilities | | 37,438 |
| | 41,425 |
| | 40,284 |
| | 46,897 |
| | 41,573 |
|
| Total liabilities | | 4,732,825 |
| | 4,636,649 |
| | 4,518,572 |
| | 4,479,004 |
| | 4,393,000 |
|
| Equity: | | |
| | |
| | |
| | |
| | |
|
Preferred stock, no par value, authorized 1,100,000 shares;
issued and outstanding none at:
March 31, 2016, December 31, 2015, September 30, 2015,
June 30, 2015, and March 31, 2015 | | — |
| | — |
| | — |
| | — |
| | — |
|
Common stock, no par value, authorized 185,000,000 shares;
issued and outstanding:
31,164,287 at March 31, 2016;
31,361,452 shares at December 31, 2015,
31,330,644 shares at September 30, 2015,
31,501,633 shares at June 30, 2015, and
34,797,133 shares at March 31, 2015 | | 544,029 |
| | 548,878 |
| | 548,518 |
| | 552,527 |
| | 632,867 |
|
| Surplus | | 83,534 |
| | 82,847 |
| | 81,528 |
| | 79,373 |
| | 80,545 |
|
| Accumulated deficit | | (130,511 | ) | | (137,314 | ) | | (133,821 | ) | | (142,267 | ) | | (150,815 | ) |
| Accumulated other comprehensive income (loss) | | 12,306 |
| | 203 |
| | 7,036 |
| | (786 | ) | | 10,328 |
|
| Total shareholders' equity | | 509,358 |
| | 494,614 |
| | 503,261 |
| | 488,847 |
| | 572,925 |
|
| Non-controlling interest | | 19 |
| | 25 |
| | — |
| | — |
| | — |
|
| Total equity | | 509,377 |
| | 494,639 |
| | 503,261 |
| | 488,847 |
| | 572,925 |
|
| Total liabilities and equity | | $ | 5,242,202 |
| | $ | 5,131,288 |
| | $ | 5,021,833 |
| | $ | 4,967,851 |
| | $ | 4,965,925 |
|
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Consolidated Statements of Income | |
| (Unaudited) | TABLE 4 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | Mar 31, | | Dec 31, | | Sep 30, | | Jun 30, | | Mar 31, |
| (Dollars in thousands, except per share data) | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| Interest income: | | |
| | |
| | | | | | |
|
| Interest and fees on loans and leases | | $ | 31,793 |
| | $ | 30,565 |
| | $ | 30,148 |
| | $ | 29,572 |
| | $ | 28,602 |
|
| Interest and dividends on investment securities: | | | | | | | | | | |
|
| Taxable interest | | 8,396 |
| | 8,282 |
| | 8,260 |
| | 8,277 |
| | 8,150 |
|
| Tax-exempt interest | | 996 |
| | 1,006 |
| | 1,008 |
| | 1,010 |
| | 998 |
|
| Dividends | | 10 |
| | 10 |
| | 9 |
| | 8 |
| | 9 |
|
| Interest on deposits in other banks | | 17 |
| | 7 |
| | 6 |
| | 11 |
| | 11 |
|
| Dividends on Federal Home Loan Bank stock | | 37 |
| | 46 |
| | 11 |
| | 18 |
| | 11 |
|
| Total interest income | | 41,249 |
| | 39,916 |
| | 39,442 |
| | 38,896 |
| | 37,781 |
|
| Interest expense: | | |
| | |
| | |
| | |
| | |
|
| Interest on deposits: | | |
| | |
| | |
| | |
| | |
|
| Demand | | 111 |
| | 101 |
| | 104 |
| | 99 |
| | 95 |
|
| Savings and money market | | 263 |
| | 238 |
| | 230 |
| | 225 |
| | 223 |
|
| Time | | 898 |
| | 647 |
| | 568 |
| | 549 |
| | 548 |
|
| Interest on short-term borrowings | | 50 |
| | 59 |
| | 73 |
| | 79 |
| | 43 |
|
| Interest on long-term debt | | 716 |
| | 677 |
| | 662 |
| | 650 |
| | 637 |
|
| Total interest expense | | 2,038 |
| | 1,722 |
| | 1,637 |
| | 1,602 |
| | 1,546 |
|
| Net interest income | | 39,211 |
| | 38,194 |
| | 37,805 |
| | 37,294 |
| | 36,235 |
|
| Provision (credit) for loan and lease losses | | (747 | ) | | (1,958 | ) | | (3,647 | ) | | (7,319 | ) | | (2,747 | ) |
| Net interest income after provision for loan and lease losses | | 39,958 |
| | 40,152 |
| | 41,452 |
| | 44,613 |
| | 38,982 |
|
| Other operating income: | | |
| | |
| | |
| | |
| | |
|
| Service charges on deposit accounts | | 1,964 |
| | 1,999 |
| | 1,947 |
| | 1,915 |
| | 1,968 |
|
| Loan servicing fees | | 1,362 |
| | 1,399 |
| | 1,407 |
| | 1,427 |
| | 1,423 |
|
| Other service charges and fees | | 2,767 |
| | 2,772 |
| | 2,803 |
| | 2,781 |
| | 3,105 |
|
| Income from fiduciary activities | | 840 |
| | 825 |
| | 854 |
| | 830 |
| | 834 |
|
| Equity in earnings of unconsolidated subsidiaries | | 90 |
| | 88 |
| | 165 |
| | 229 |
| | 96 |
|
| Fees on foreign exchange | | 148 |
| | 98 |
| | 126 |
| | 98 |
| | 128 |
|
| Investment securities gains (losses) | | — |
| | — |
| | — |
| | (1,866 | ) | | — |
|
| Income from bank-owned life insurance | | 625 |
| | 465 |
| | 434 |
| | 461 |
| | 674 |
|
| Loan placement fees | | 46 |
| | 146 |
| | 202 |
| | 225 |
| | 147 |
|
| Net gains on sales of residential loans | | 1,466 |
| | 1,332 |
| | 1,551 |
| | 1,630 |
| | 1,594 |
|
| Net gains on sales of foreclosed assets | | 308 |
| | 189 |
| | 252 |
| | 94 |
| | 33 |
|
| Other (refer to Table 5) | | 549 |
| | 528 |
| | 88 |
| | 300 |
| | 1,188 |
|
| Total other operating income | | 10,165 |
| | 9,841 |
| | 9,829 |
| | 8,124 |
| | 11,190 |
|
| Other operating expense: | | |
| | |
| | |
| | |
| | |
|
| Salaries and employee benefits | | 16,937 |
| | 16,895 |
| | 17,193 |
| | 15,176 |
| | 17,165 |
|
| Net occupancy | | 3,314 |
| | 3,981 |
| | 3,547 |
| | 3,403 |
| | 3,501 |
|
| Equipment | | 811 |
| | 858 |
| | 775 |
| | 933 |
| | 909 |
|
| Amortization of other intangible assets | | 2,178 |
| | 1,512 |
| | 1,683 |
| | 1,559 |
| | 2,105 |
|
| Communication expense | | 959 |
| | 822 |
| | 895 |
| | 942 |
| | 824 |
|
| Legal and professional services | | 1,613 |
| | 1,671 |
| | 1,808 |
| | 1,642 |
| | 2,219 |
|
| Computer software expense | | 2,704 |
| | 2,067 |
| | 2,286 |
| | 2,382 |
| | 2,096 |
|
| Advertising expense | | 634 |
| | 964 |
| | 502 |
| | 449 |
| | 635 |
|
| Foreclosed asset expense | | 15 |
| | 154 |
| | 3 |
| | 257 |
| | 72 |
|
| Other (refer to Table 5) | | 3,710 |
| | 3,652 |
| | 3,483 |
| | 5,715 |
| | 4,492 |
|
| Total other operating expense | | 32,875 |
| | 32,576 |
| | 32,175 |
| | 32,458 |
| | 34,018 |
|
| Income before income taxes | | 17,248 |
| | 17,417 |
| | 19,106 |
| | 20,279 |
| | 16,154 |
|
| Income tax expense | | 6,067 |
| | 6,485 |
| | 6,900 |
| | 7,944 |
| | 5,759 |
|
| Net income | | $ | 11,181 |
| | $ | 10,932 |
| | $ | 12,206 |
| | $ | 12,335 |
| | $ | 10,395 |
|
| Per common share data: | | |
| | |
| | |
| | |
| | |
|
| Basic earnings per share | | $ | 0.36 |
| | $ | 0.35 |
| | $ | 0.39 |
| | $ | 0.39 |
| | $ | 0.30 |
|
| Diluted earnings per share | | 0.35 |
| | 0.34 |
| | 0.38 |
| | 0.39 |
| | 0.29 |
|
| Cash dividends declared | | 0.14 |
| | 0.46 |
| | 0.12 |
| | 0.12 |
| | 0.12 |
|
| Basic weighted average shares outstanding | | 31,263 |
| | 31,318 |
| | 31,331 |
| | 31,525 |
| | 34,827 |
|
| Diluted weighted average shares outstanding | | 31,506 |
| | 31,726 |
| | 31,750 |
| | 31,953 |
| | 35,479 |
|
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Other Operating Income and Other Operating Expense - Other | |
| (Unaudited) | TABLE 5 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | Mar 31, | | Dec 31, | | Sep 30, | | Jun 30, | | Mar 31, |
| (Dollars in thousands) | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| Income recovered on nonaccrual loans previously charged-off | | $ | 157 |
| | $ | 104 |
| | $ | 262 |
| | $ | 209 |
| | $ | 219 |
|
| Other recoveries | | 21 |
| | 17 |
| | 244 |
| | 15 |
| | 274 |
|
| Unrealized gains (losses) on loans-held-for-sale and interest rate locks | | (79 | ) | | 54 |
| | (646 | ) | | (198 | ) | | 466 |
|
| Commissions on sale of checks | | 86 |
| | 79 |
| | 86 |
| | 82 |
| | 78 |
|
| Other | | 364 |
| | 274 |
| | 142 |
| | 192 |
| | 151 |
|
| Total other operating income - Other | | $ | 549 |
| | $ | 528 |
| | $ | 88 |
| | $ | 300 |
| | $ | 1,188 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | Mar 31, | | Dec 31, | | Sep 30, | | Jun 30, | | Mar 31, |
| (Dollars in thousands) | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| Charitable contributions | | $ | 218 |
| | $ | 103 |
| | $ | 179 |
| | $ | 2,138 |
| | $ | 139 |
|
| FDIC insurance assessment | | 639 |
| | 622 |
| | 685 |
| | 701 |
| | 698 |
|
| Miscellaneous loan expenses | | 254 |
| | 325 |
| | 314 |
| | 434 |
| | 275 |
|
| ATM and debit card expenses | | 428 |
| | 407 |
| | 365 |
| | 180 |
| | 586 |
|
| Amortization of investments in low-income housing tax credit partnerships | | 257 |
| | 258 |
| | 258 |
| | 274 |
| | 288 |
|
| Armored car expenses | | 201 |
| | 254 |
| | 213 |
| | 195 |
| | 234 |
|
| Entertainment and promotions | | 231 |
| | 405 |
| | 191 |
| | 266 |
| | 197 |
|
| Stationery and supplies | | 267 |
| | 230 |
| | 381 |
| | 219 |
| | 196 |
|
| Directors’ fees and expenses | | 205 |
| | 101 |
| | 156 |
| | 214 |
| | 191 |
|
| Provision (credit) for residential mortgage loan repurchase losses | | (351 | ) | | (596 | ) | | (883 | ) | | (32 | ) | | 159 |
|
| Increase (decrease) to the reserve for unfunded commitments | | 44 |
| | (223 | ) | | 255 |
| | (272 | ) | | (31 | ) |
| Other | | 1,317 |
| | 1,766 |
| | 1,369 |
| | 1,398 |
| | 1,560 |
|
| Total other operating expense - Other | | $ | 3,710 |
| | $ | 3,652 |
| | $ | 3,483 |
| | $ | 5,715 |
| | $ | 4,492 |
|
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent) | |
| (Unaudited) | TABLE 6 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | | March 31, 2016 | | December 31, 2015 | | March 31, 2015 |
| | | 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 banks | | $ | 13,990 |
| | 0.49 | % | | $ | 17 |
| | $ | 10,504 |
| | 0.27 | % | | $ | 7 |
| | $ | 18,046 |
| | 0.25 | % | | $ | 11 |
|
| Investment securities, excluding valuation allowance: | | | | | | | | | | | | | | | | | | |
| Taxable | | 1,331,717 |
| | 2.52 |
| | 8,406 |
| | 1,339,764 |
| | 2.48 |
| | 8,292 |
| | 1,310,909 |
| | 2.49 |
| | 8,159 |
|
| Tax-exempt | | 174,044 |
| | 3.52 |
| | 1,532 |
| | 174,681 |
| | 3.54 |
| | 1,547 |
| | 177,606 |
| | 3.46 |
| | 1,536 |
|
| Total investment securities | | 1,505,761 |
| | 2.64 |
| | 9,938 |
| | 1,514,445 |
| | 2.60 |
| | 9,839 |
| | 1,488,515 |
| | 2.61 |
| | 9,695 |
|
| Loans and leases, incl. loans held for sale | | 3,258,872 |
| | 3.92 |
| | 31,793 |
| | 3,142,895 |
| | 3.87 |
| | 30,565 |
| | 2,955,525 |
| | 3.90 |
| | 28,602 |
|
| Federal Home Loan Bank stock | | 7,633 |
| | 1.92 |
| | 37 |
| | 9,087 |
| | 2.00 |
| | 46 |
| | 43,809 |
| | 0.10 |
| | 11 |
|
| Total interest-earning assets | | 4,786,256 |
| | 3.50 |
| | 41,785 |
| | 4,676,931 |
| | 3.45 |
| | 40,457 |
| | 4,505,895 |
| | 3.42 |
| | 38,319 |
|
| Noninterest-earning assets | | 362,488 |
| | |
| | |
| | 372,301 |
| | |
| | |
| | 383,827 |
| | |
| | |
|
| Total assets | | $ | 5,148,744 |
| | |
| | |
| | $ | 5,049,232 |
| | |
| | |
| | $ | 4,889,722 |
| | |
| | |
|
| | | | | | | | | | | | | | | | | | | |
| LIABILITIES AND EQUITY |
| Interest-bearing liabilities: | | | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| Interest-bearing demand deposits | | $ | 827,502 |
| | 0.05 | % | | $ | 111 |
| | $ | 804,544 |
| | 0.05 | % | | $ | 101 |
| | $ | 787,717 |
| | 0.05 | % | | $ | 95 |
|
| Savings and money market deposits | | 1,427,733 |
| | 0.07 |
| | 263 |
| | 1,322,220 |
| | 0.07 |
| | 238 |
| | 1,248,867 |
| | 0.07 |
| | 223 |
|
| Time deposits under $100,000 | | 211,622 |
| | 0.37 |
| | 197 |
| | 218,188 |
| | 0.36 |
| | 201 |
| | 237,239 |
| | 0.38 |
| | 222 |
|
| Time deposits $100,000 and over | | 888,683 |
| | 0.32 |
| | 701 |
| | 851,796 |
| | 0.21 |
| | 446 |
| | 836,232 |
| | 0.16 |
| | 326 |
|
| Total interest-bearing deposits | | 3,355,540 |
| | 0.15 |
| | 1,272 |
| | 3,196,748 |
| | 0.12 |
| | 986 |
| | 3,110,055 |
| | 0.11 |
| | 866 |
|
| Short-term borrowings | | 44,423 |
| | 0.45 |
| | 50 |
| | 81,027 |
| | 0.29 |
| | 59 |
| | 63,227 |
| | 0.27 |
| | 43 |
|
| Long-term debt | | 92,785 |
| | 3.10 |
| | 716 |
| | 92,785 |
| | 2.90 |
| | 677 |
| | 92,785 |
| | 2.78 |
| | 637 |
|
| Total interest-bearing liabilities | | 3,492,748 |
| | 0.23 |
| | 2,038 |
| | 3,370,560 |
| | 0.20 |
| | 1,722 |
| | 3,266,067 |
| | 0.19 |
| | 1,546 |
|
| Noninterest-bearing deposits | | 1,112,530 |
| | |
| | |
| | 1,131,160 |
| | |
| | |
| | 1,013,238 |
| | |
| | |
|
| Other liabilities | | 38,111 |
| | |
| | |
| | 43,941 |
| | |
| | |
| | 42,426 |
| | |
| | |
|
| Total liabilities | | 4,643,389 |
| | |
| | |
| | 4,545,661 |
| | |
| | |
| | 4,321,731 |
| | |
| | |
|
| Shareholders’ equity | | 505,330 |
| | |
| | |
| | 503,570 |
| | |
| | |
| | 567,991 |
| | |
| | |
|
| Non-controlling interest | | 25 |
| | |
| | |
| | 1 |
| | |
| | |
| | — |
| | |
| | |
|
| Total equity | | 505,355 |
| | |
| | |
| | 503,571 |
| | |
| | |
| | 567,991 |
| | |
| | |
|
| Total liabilities and equity | | $ | 5,148,744 |
| | |
| | |
| | $ | 5,049,232 |
| | |
| | |
| | $ | 4,889,722 |
| | |
| | |
|
| | | | | | | | | | | | | | | | | | | |
| Net interest income | | |
| | |
| | $ | 39,747 |
| | |
| | |
| | $ | 38,735 |
| | |
| | |
| | $ | 36,773 |
|
| | | | | | | | | | | | | | | | | | | |
| Interest rate spread | | | | 3.27 | % | | | | | | 3.25 | % | | | | | | 3.23 | % | | |
| | | | | | | | | | | | | | | | | | | |
| Net interest margin | | |
| | 3.33 | % | | |
| | |
| | 3.30 | % | | |
| | |
| | 3.28 | % | | |
|
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Loans and Leases by Geographic Distribution | |
| (Unaudited) | TABLE 7 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| (Dollars in thousands) | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| HAWAII: | | |
| | |
| | |
| | |
| | |
|
| Commercial, financial and agricultural | | $ | 358,432 |
| | $ | 339,738 |
| | $ | 335,919 |
| | $ | 341,468 |
| | $ | 318,228 |
|
| Real estate: | | |
| | |
| | |
| | |
| | |
|
| Construction | | 98,203 |
| | 81,655 |
| | 72,071 |
| | 80,168 |
| | 109,256 |
|
| Mortgage - residential | | 1,459,202 |
| | 1,436,305 |
| | 1,385,286 |
| | 1,351,962 |
| | 1,300,304 |
|
| Mortgage - commercial | | 646,013 |
| | 642,845 |
| | 616,085 |
| | 588,334 |
| | 586,281 |
|
| Consumer | | 267,855 |
| | 273,248 |
| | 263,568 |
| | 254,655 |
| | 249,151 |
|
| Leases | | 936 |
| | 1,028 |
| | 1,123 |
| | 2,589 |
| | 2,885 |
|
| Total loans and leases | | 2,830,641 |
| | 2,774,819 |
| | 2,674,052 |
| | 2,619,176 |
| | 2,566,105 |
|
| Allowance for loan and lease losses | | (52,068 | ) | | (54,141 | ) | | (56,150 | ) | | (57,402 | ) | | (60,676 | ) |
| Net loans and leases | | $ | 2,778,573 |
| | $ | 2,720,678 |
| | $ | 2,617,902 |
| | $ | 2,561,774 |
| | $ | 2,505,429 |
|
| | | | | | | | | | | |
| U.S. MAINLAND: | | |
| | |
| | |
| | |
| | |
|
| Commercial, financial and agricultural | | $ | 176,659 |
| | $ | 181,348 |
| | $ | 170,624 |
| | $ | 158,133 |
| | $ | 182,455 |
|
| Real estate: | | |
| | |
| | |
| | |
| | |
|
| Construction | | 3,151 |
| | 3,230 |
| | 3,309 |
| | 3,387 |
| | 3,465 |
|
| Mortgage - residential | | — |
| | — |
| | — |
| | — |
| | — |
|
| Mortgage - commercial | | 127,023 |
| | 117,904 |
| | 120,900 |
| | 106,859 |
| | 114,975 |
|
| Consumer | | 171,494 |
| | 134,231 |
| | 132,578 |
| | 118,500 |
| | 100,772 |
|
| Leases | | — |
| | — |
| | — |
| | — |
| | — |
|
| Total loans and leases | | 478,327 |
| | 436,713 |
| | 427,411 |
| | 386,879 |
| | 401,667 |
|
| Allowance for loan and lease losses | | (10,081 | ) | | (9,173 | ) | | (10,494 | ) | | (9,522 | ) | | (10,757 | ) |
| Net loans and leases | | $ | 468,246 |
| | $ | 427,540 |
| | $ | 416,917 |
| | $ | 377,357 |
| | $ | 390,910 |
|
| | | | | | | | | | | |
| TOTAL: | | |
| | |
| | |
| | |
| | |
|
| Commercial, financial and agricultural | | $ | 535,091 |
| | $ | 521,086 |
| | $ | 506,543 |
| | $ | 499,601 |
| | $ | 500,683 |
|
| Real estate: | | |
| | |
| | |
| | |
| | |
|
| Construction | | 101,354 |
| | 84,885 |
| | 75,380 |
| | 83,555 |
| | 112,721 |
|
| Mortgage - residential | | 1,459,202 |
| | 1,436,305 |
| | 1,385,286 |
| | 1,351,962 |
| | 1,300,304 |
|
| Mortgage - commercial | | 773,036 |
| | 760,749 |
| | 736,985 |
| | 695,193 |
| | 701,256 |
|
| Consumer | | 439,349 |
| | 407,479 |
| | 396,146 |
| | 373,155 |
| | 349,923 |
|
| Leases | | 936 |
| | 1,028 |
| | 1,123 |
| | 2,589 |
| | 2,885 |
|
| Total loans and leases | | 3,308,968 |
| | 3,211,532 |
| | 3,101,463 |
| | 3,006,055 |
| | 2,967,772 |
|
| Allowance for loan and lease losses | | (62,149 | ) | | (63,314 | ) | | (66,644 | ) | | (66,924 | ) | | (71,433 | ) |
| Net loans and leases | | $ | 3,246,819 |
| | $ | 3,148,218 |
| | $ | 3,034,819 |
| | $ | 2,939,131 |
| | $ | 2,896,339 |
|
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Deposits | |
| (Unaudited) | TABLE 8 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| (Dollars in thousands) | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| Noninterest-bearing demand | | $ | 1,140,741 |
| | $ | 1,145,244 |
| | $ | 1,112,761 |
| | $ | 1,080,428 |
| | $ | 1,042,781 |
|
| Interest-bearing demand | | 849,880 |
| | 824,895 |
| | 785,936 |
| | 807,851 |
| | 806,555 |
|
| Savings and money market | | 1,465,524 |
| | 1,399,093 |
| | 1,283,517 |
| | 1,261,180 |
| | 1,247,266 |
|
| Time deposits less than $100,000 | | 207,757 |
| | 212,946 |
| | 219,134 |
| | 227,144 |
| | 233,518 |
|
| Core deposits | | 3,663,902 |
| | 3,582,178 |
| | 3,401,348 |
| | 3,376,603 |
| | 3,330,120 |
|
| | | | | | | | | | | |
| Government time deposits | | 644,877 |
| | 664,756 |
| | 640,708 |
| | 612,979 |
| | 663,569 |
|
| Other time deposits $100,000 and over | | 187,823 |
| | 186,505 |
| | 188,447 |
| | 192,740 |
| | 194,953 |
|
| Total time deposits $100,000 and over | | 832,700 |
| | 851,261 |
| | 829,155 |
| | 805,719 |
| | 858,522 |
|
| Total deposits | | 4,496,602 |
| | 4,433,439 |
| | 4,230,503 |
| | 4,182,322 |
| | 4,188,642 |
|
|
| |
| CENTRAL PACIFIC FINANCIAL CORP AND SUBSIDIARIES | |
| Nonperforming Assets, Past Due and Restructured Loans | |
| (Unaudited) | TABLE 9 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| (Dollars in thousands) | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| Nonaccrual loans (including loans held for sale): | | | | | | | | | | |
| Commercial, financial and agricultural | | $ | 2,244 |
| | $ | 1,044 |
| | $ | 3,056 |
| | $ | 3,175 |
| | $ | 13,377 |
|
| Real estate: | | | | |
| | |
| | |
| | |
|
| Construction | | — |
| | — |
| | — |
| | 133 |
| | 146 |
|
| Mortgage - residential | | 5,527 |
| | 6,130 |
| | 6,301 |
| | 10,032 |
| | 11,430 |
|
| Mortgage - commercial | | 6,913 |
| | 7,094 |
| | 2,731 |
| | 13,490 |
| | 12,468 |
|
| Total nonaccrual loans | | 14,684 |
| | 14,268 |
| | 12,088 |
| | 26,830 |
| | 37,421 |
|
| | | | | | | | | | | |
| Other real estate owned ("OREO"): | | |
| | |
| | |
| | |
| | |
|
| Real estate: | | | | |
| | |
| | |
| | |
|
| Mortgage - residential | | 1,260 |
| | 1,962 |
| | 1,913 |
| | 2,433 |
| | 3,349 |
|
| Mortgage - commercial | | — |
| | — |
| | — |
| | 2,845 |
| | — |
|
| Total OREO | | 1,260 |
| | 1,962 |
| | 1,913 |
| | 5,278 |
| | 3,349 |
|
| Total nonperforming assets ("NPAs") | | 15,944 |
| | 16,230 |
| | 14,001 |
| | 32,108 |
| | 40,770 |
|
| | | | | | | | | | | |
| Loans delinquent for 90 days or more: | | |
| | |
| | |
| | |
| | |
|
| Real estate: | | | | |
| | |
| | |
| | |
|
| Mortgage - residential | | 656 |
| | — |
| | — |
| | — |
| | — |
|
| Consumer | | 125 |
| | 273 |
| | 130 |
| | 45 |
| | 5 |
|
| Leases | | — |
| | — |
| | — |
| | — |
| | — |
|
| Total loans delinquent for 90 days or more | | 781 |
| | 273 |
| | 130 |
| | 45 |
| | 5 |
|
| Restructured loans still accruing interest: | | |
| | |
| | |
| | |
| | |
|
| Commercial, financial and agricultural | | — |
| | — |
| | 327 |
| | 339 |
| | 350 |
|
| Real estate: | | | | |
| | |
| | |
| | |
|
| Construction | | 776 |
| | 809 |
| | 841 |
| | 839 |
| | 866 |
|
| Mortgage - residential | | 16,197 |
| | 16,224 |
| | 17,592 |
| | 16,428 |
| | 17,084 |
|
| Mortgage - commercial | | 3,128 |
| | 3,224 |
| | 2,253 |
| | 1,360 |
| | 1,516 |
|
| Total restructured loans still accruing interest | | 20,101 |
| | 20,257 |
| | 21,013 |
| | 18,966 |
| | 19,816 |
|
| Total NPAs, loans delinquent for 90 days or more and restructured loans still accruing interest | | $ | 36,826 |
| | $ | 36,760 |
| | $ | 35,144 |
| | $ | 51,119 |
| | $ | 60,591 |
|
| | | | | | | | | | | |
| Total nonaccrual loans as a percentage of loans and leases | | 0.44 | % | | 0.44 | % | | 0.39 | % | | 0.89 | % | | 1.26 | % |
| Total NPAs as a percentage of loans and leases and OREO | | 0.48 | % | | 0.51 | % | | 0.45 | % | | 1.07 | % | | 1.37 | % |
| Total NPAs and loans delinquent for 90 days or more as a percentage of loans and leases and OREO | | 0.51 | % | | 0.51 | % | | 0.46 | % | | 1.07 | % | | 1.37 | % |
| Total NPAs, loans delinquent for 90 days or more, and restructured loans still accruing interest as a percentage of loans and leases and OREO | | 1.11 | % | | 1.14 | % | | 1.13 | % | | 1.70 | % | | 2.04 | % |
| | | | | | | | | | | |
| Quarter-to-quarter changes in NPAs: | | | | |
| | |
| | |
| | |
|
| Balance at beginning of quarter | | $ | 16,230 |
| | $ | 14,001 |
| | $ | 32,108 |
| | $ | 40,770 |
| | $ | 42,035 |
|
| Additions | | 1,303 |
| | 2,992 |
| | 681 |
| | 6,761 |
| | 1,429 |
|
| Reductions: | | | | |
| | |
| | |
| | |
|
| Payments | | (754 | ) | | (439 | ) | | (4,002 | ) | | (3,411 | ) | | (1,712 | ) |
| Return to accrual status | | (133 | ) | | (216 | ) | | (10,799 | ) | | (274 | ) | | (197 | ) |
| Sales of NPAs | | (702 | ) | | (71 | ) | | (4,007 | ) | | (8,280 | ) | | (949 | ) |
| Charge-offs/valuation adjustments | | — |
| | (37 | ) | | 20 |
| | (3,458 | ) | | 164 |
|
| Total reductions | | (1,589 | ) | | (763 | ) | | (18,788 | ) | | (15,423 | ) | | (2,694 | ) |
| Balance at end of quarter | | $ | 15,944 |
| | $ | 16,230 |
| | $ | 14,001 |
| | $ | 32,108 |
| | $ | 40,770 |
|
|
| |
| CENTRAL PACIFIC FINANCIAL CORP AND SUBSIDIARIES | |
| Allowance for Loan and Lease Losses | |
| (Unaudited) | TABLE 10 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
| | | March 31, | | December 31, | | September 30, | | June 30, | | March 31, |
| (Dollars in thousands) | | 2016 | | 2015 | | 2015 | | 2015 | | 2015 |
| Allowance for loan and lease losses: | | |
| | |
| | | | | | |
|
| Balance at beginning of period | | $ | 63,314 |
| | $ | 66,644 |
| | $ | 66,924 |
| | $ | 71,433 |
| | $ | 74,040 |
|
| | | | | | | | | | | |
| Provision (credit) for loan and lease losses | | (747 | ) | | (1,958 | ) | | (3,647 | ) | | (7,319 | ) | | (2,747 | ) |
| | | | | | | | | | | |
| Charge-offs: | | | | | | | | | | |
|
| Commercial, financial and agricultural | | 352 |
| | 554 |
| | 170 |
| | 4,003 |
| | 931 |
|
| Real estate: | | | | | | | | | | |
|
| Mortgage - residential | | — |
| | — |
| | 46 |
| | 50 |
| | 14 |
|
| Mortgage - commercial | | — |
| | 838 |
| | — |
| | — |
| | — |
|
| Consumer | | 1,112 |
| | 721 |
| | 874 |
| | 1,214 |
| | 1,841 |
|
| Leases | | — |
| | — |
| | — |
| | — |
| | — |
|
| Total charge-offs | | 1,464 |
| | 2,113 |
| | 1,090 |
| | 5,267 |
| | 2,786 |
|
| | | | | | | | | | | |
| Recoveries: | | |
| | |
| | | | | | |
|
| Commercial, financial and agricultural | | 349 |
| | 411 |
| | 504 |
| | 3,279 |
| | 594 |
|
| Real estate: | | | | | | | | | | |
|
| Construction | | 9 |
| | 10 |
| | 283 |
| | 464 |
| | 123 |
|
| Mortgage - residential | | 37 |
| | 96 |
| | 196 |
| | 397 |
| | 1,488 |
|
| Mortgage - commercial | | 13 |
| | 14 |
| | 3,130 |
| | 3,562 |
| | 13 |
|
| Consumer | | 638 |
| | 210 |
| | 317 |
| | 375 |
| | 708 |
|
| Leases | | — |
| | — |
| | 27 |
| | — |
| | — |
|
| Total recoveries | | 1,046 |
| | 741 |
| | 4,457 |
| | 8,077 |
| | 2,926 |
|
| Net charge-offs (recoveries) | | 418 |
| | 1,372 |
| | (3,367 | ) | | (2,810 | ) | | (140 | ) |
| Balance at end of period | | $ | 62,149 |
| | $ | 63,314 |
| | $ | 66,644 |
| | $ | 66,924 |
| | $ | 71,433 |
|
| | | | | | | | | | | |
| Average loans and leases, net of unearned | | $ | 3,258,872 |
| | $ | 3,142,895 |
| | $ | 3,070,384 |
| | $ | 2,981,184 |
| | $ | 2,955,525 |
|
| | | | | | | | | | | |
| Annualized ratio of net charge-offs (recoveries) to average loans and leases | | 0.05 | % | | 0.17 | % | | (0.44 | )% | | (0.38 | )% | | (0.02 | )% |
| | | | | | | | | | | |
| Ratio of allowance for loan and lease losses to loans and leases | | 1.88 | % | | 1.97 | % | | 2.15 | % | | 2.23 | % | | 2.41 | % |
