Central Pacific Financial Corp. Reports Third Quarter 2019 Results
Page 1
Exhibit 99.1
|
| | | |
| | | | FOR IMMEDIATE RELEASE |
| | | | |
| Investor Contact: | Ian Tanaka | Media Contact: | Wayne Kirihara |
| | VP, Treasury Manager | | EVP, Chief Marketing Officer |
| | (808) 544-3646 | | (808) 544-3687 |
| | ian.tanaka@centralpacificbank.com | | wayne.kirihara@centralpacificbank.com |
NEWS RELEASE
CENTRAL PACIFIC FINANCIAL CORP. REPORTS THIRD QUARTER 2019 RESULTS
| |
| • | Net income of $14.6 million, or fully diluted EPS of $0.51 for the third quarter, compared to net income of $13.5 million, or fully diluted EPS of $0.47 for the second quarter. |
| |
| • | ROA of 0.99% and ROE of 11.11% for the third quarter, compared to ROA of 0.92% and ROE of 10.73% for the second quarter. |
| |
| • | Total loans increased by $120.7 million, or 2.8% sequentially, and $389.8 million, or 9.8% year-over-year. |
| |
| • | Core deposits increased by $57.9 million, or 1.4% sequentially, and $139.6 million, or 3.5% year-over-year. |
| |
| • | RISE2020 was successfully launched and is on schedule with significant progress made on multiple initiatives. The Company is on track to achieve its key milestones over the next several quarters. |
HONOLULU, HI, October 23, 2019 – Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank, today reported net income in the third quarter of 2019 of $14.6 million, or fully diluted earnings per share ("EPS") of $0.51, compared to net income in the third quarter of 2018 of $15.2 million, or EPS of $0.52, and net income in the second quarter of 2019 of $13.5 million, or EPS of $0.47. Net income in the nine months ended September 30, 2019 totaled $44.1 million, or EPS of $1.53, compared to net income in the nine months ended September 30, 2018 of $43.7 million, or EPS of $1.47.
"We are pleased with our third quarter financial results and look towards building upon the momentum and excitement from both our employees and the community as we continue to execute on our RISE2020 initiative," said Paul Yonamine, Chairman and Chief Executive Officer.
"Our strong quarterly loan growth, solid asset quality and progress on early RISE2020 milestones are reflective of the great work of our employees," said Catherine Ngo, President.
On October 22, 2019, the Company's Board of Directors declared a quarterly cash dividend of $0.23 per share on its outstanding common shares. The dividend will be payable on December 16, 2019 to shareholders of record at the close of business on November 29, 2019.
Central Pacific Financial Corp. Reports Third Quarter 2019 Results
Page 2
During the third quarter of 2019, the Company repurchased 140,600 shares of common stock, at a total cost of $4.0 million, or an average cost per share of $28.56. During the nine months ended September 30, 2019, the Company repurchased 631,300 shares of common stock, or approximately 2.2% of its common stock outstanding as of December 31, 2018. Total cost of the shares repurchased during the nine months ended September 30, 2019 was $18.0 million, or an average cost per share of $28.46. The Company's remaining repurchase authority under its share repurchase program at September 30, 2019 is $25.9 million. During the nine months ended September 30, 2019, the Company returned $37.2 million in capital to its shareholders through cash dividends and share repurchases.
Earnings Highlights
Net interest income for the third quarter of 2019 was $45.6 million, compared to $43.3 million in the year-ago quarter and $45.4 million in the previous quarter. Net interest margin for the third quarter of 2019 was 3.30%, compared to 3.20% in the year-ago quarter and 3.33% in the previous quarter. The increases in net interest income and net interest margin from the year-ago quarter were primarily due to growth in the loan portfolio, combined with higher yields earned on the loan portfolio compared to the year-ago quarter. These increases were partially offset by lower interest and dividends on investment securities due to the planned runoff of our investment securities portfolio, combined with higher deposit and borrowing costs from the year-ago quarter. The sequential quarter increase in net interest income was primarily due to growth in the loan portfolio, combined with lower deposit costs, partially offset by lower interest and dividends on investment securities. Net interest income in the previous quarter included higher non-recurring interest recoveries of $0.5 million which positively impacted the net interest margin in the previous quarter.
Other operating income for the third quarter of 2019 totaled $10.3 million, compared to $10.8 million in the year-ago quarter and $10.1 million in the previous quarter. The decrease from the year-ago quarter was primarily due to lower income from bank-owned life insurance of $0.4 million, lower income recovered on nonaccrual loans previously charged-off of $0.3 million and lower mortgage banking income of $0.2 million, partially offset by higher merchant and bank card fees of $0.3 million (included in other service charges and fees). The increase from the previous quarter was primarily due to higher merchant and bank card fees of $0.2 million (included in other service charges and fees) and higher mortgage banking income of $0.2 million, partially offset by lower income from bank-owned life insurance of $0.3 million.
Other operating expense for the third quarter of 2019 totaled $34.9 million, which increased from $34.0 million in the year-ago quarter and decreased from $36.1 million in the previous quarter. The increase from the year-ago quarter was primarily due to higher salaries and employee benefits of $1.6 million and higher legal and professional services of $0.4 million. The higher salaries and employee benefits compared to the year-ago quarter was partially attributable to the addition of positions in strategic areas and higher commissions, combined with annual merit increases effective in the second quarter of 2019. These negative variances were partially offset by lower amortization of core deposit premium of $0.7 million, as the intangible asset was fully amortized as of September 30, 2018, a credit to the reserve for unfunded loan commitments during the current quarter of $0.5 million (included in other) and lower FDIC insurance expense of $0.4 million (included in other). FDIC insurance expense includes a $0.4 million assessment credit received in the current quarter. The decrease from the previous quarter was primarily due to a credit to the reserve for unfunded loan commitments during the current quarter of $0.5 million (included in other), compared to an increase to the reserve for unfunded loan commitments during the previous quarter of $0.5 million. The decrease from the previous quarter was also attributable to lower entertainment and promotions expense of $0.7 million (included in other) and lower FDIC insurance expense of $0.4 million (included in other). Entertainment and promotions expense in the previous quarter included expenses related to a core deposit gathering campaign. Other operating expense in the third quarter of 2019 included approximately $1.2 million in RISE2020-related expenses.
The efficiency ratio for the third quarter of 2019 was 62.48%, compared to 62.84% in the year-ago quarter and 65.09% in the previous quarter. The efficiency ratio in the previous quarter was negatively impacted by the variances in operating expenses noted above.
In the third quarter of 2019, the Company recorded income tax expense of $4.9 million, compared to $5.0 million in the year-ago quarter and $4.4 million in the previous quarter. The effective tax rate for the third quarter of 2019 was 25.2%, compared to 24.7% in the year-ago quarter and 24.6% in the previous quarter.
Balance Sheet Highlights
Total assets at September 30, 2019 of $5.98 billion increased by $248.1 million, or 4.3% from September 30, 2018, and increased by $56.7 million, or 1.0% from June 30, 2019.
Central Pacific Financial Corp. Reports Third Quarter 2019 Results
Page 3
Total loans at September 30, 2019 of $4.37 billion increased by $389.8 million, or 9.8%, and $120.7 million, or 2.8% from September 30, 2018 and June 30, 2019, respectively. The year-over-year and sequential quarter increases in total loans were driven by broad-based growth in all loan categories.
Total deposits at September 30, 2019 of $5.04 billion increased by $34.0 million, or 0.7% from September 30, 2018, and increased by $60.8 million, or 1.2% from June 30, 2019. The sequential quarter increase in total deposits was primarily attributable to increases in noninterest-bearing demand deposits of $48.0 million, savings and money market deposits of $19.9 million and other time deposits greater than $250,000 of $26.7 million, partially offset by a decrease in government time deposits of $22.4 million. Core deposits, which include demand deposits, savings and money market deposits, and time deposits less than $100,000, totaled $4.16 billion at September 30, 2019. This represents an increase of $139.6 million, or 3.5% from September 30, 2018, and $57.9 million, or 1.4% from June 30, 2019. The Company's loan-to-deposit ratio was 86.7% at September 30, 2019, compared to 79.5% at September 30, 2018 and 85.3% at June 30, 2019.
Asset Quality
Nonperforming assets at September 30, 2019 totaled $1.4 million, or 0.02% of total assets, compared to $3.0 million, or 0.05% of total assets at September 30, 2018, and $1.3 million, or 0.02% of total assets at June 30, 2019.
Loans delinquent for 90 days or more still accruing interest totaled $0.2 million at September 30, 2019, compared to $0.3 million and $0.3 million at September 30, 2018 and June 30, 2019, respectively.
Net charge-offs in the third quarter of 2019 totaled $1.6 million, compared to net charge-offs of $1.3 million in the year-ago quarter, and net charge-offs of $0.4 million in the previous quarter.
In the third quarter of 2019, the Company recorded a provision for loan and lease losses of $1.5 million, compared to a credit of $0.1 million in the year-ago quarter and a provision of $1.4 million in the previous quarter. The increases in the provision from the year-ago and sequential quarters were primarily due to growth in our loan portfolio. The allowance for loan and lease losses, as a percentage of total loans and leases at September 30, 2019 was 1.10%, compared to 1.18% at September 30, 2018 and 1.14% at June 30, 2019.
Capital
Total shareholders' equity was $525.2 million at September 30, 2019, compared to $478.2 million and $515.7 million at September 30, 2018 and June 30, 2019, respectively.
The Company maintained its strong capital position and its capital ratios continue to exceed the levels required to be considered a "well-capitalized" institution for regulatory purposes under Basel III. At September 30, 2019, the Company's leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios were 9.5%, 12.6%, 13.7%, and 11.5%, respectively, compared to 9.5%, 12.7%, 13.9%, and 11.6%, respectively, at June 30, 2019.
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.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 November 23, 2019 by dialing 1-877-344-7529 (passcode: 10136063) and on the Company's website.
About Central Pacific Financial Corp.
Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $6.0 billion in assets. Central Pacific Bank, its primary subsidiary, operates 35 branches and 78 ATMs in the state of Hawaii, as of September 30, 2019. For additional information, please visit the Company's website at http://www.centralpacificbank.com.
Central Pacific Financial Corp. Reports Third Quarter 2019 Results
Page 4
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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 including anticipated performance results from our RISE2020 initiative, 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," "targeting," "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, including, but not limited to: the effect of, and our failure to comply with any regulatory orders or actions 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; our ability to successfully implement our RISE2020 initiative; current and projected levels of RISE2020-related expense, which include estimates of expense related to dedicated staff and management time and third-party expense; the impact of local, national, and international economies and events (including political events, acts of war or terrorism, natural disasters such as wildfires, volcanoes, 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; the impact of regulatory action on the Company and Central Pacific Bank and legislation affecting the financial services industry; failure to maintain effective internal control over financial reporting or disclosure controls and procedures; 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 the Tax Cuts and Jobs Act; 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, including fintech businesses; the effect of changes in accounting policies and practices, including changes 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; changes in our capital position; our ability to attract and retain skilled directors, 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 | | Nine Months Ended |
| (Dollars in thousands, | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | | September 30, |
| except for per share amounts) | | 2019 | | 2019 | | 2019 | | 2018 | | 2018 | | 2019 | | 2018 |
| CONDENSED INCOME STATEMENT | | |
| | |
| | | | | | |
| | |
| | |
|
| Net interest income | | $ | 45,649 |
| | $ | 45,378 |
| | $ | 45,113 |
| | $ | 44,679 |
| | $ | 43,325 |
| | $ | 136,140 |
| | $ | 128,319 |
|
| Provision (credit) for loan and lease losses | | 1,532 |
| | 1,404 |
| | 1,283 |
| | (1,386 | ) | | (59 | ) | | 4,219 |
| | 262 |
|
| Net interest income after provision (credit) for loan and lease losses | | 44,117 |
| | 43,974 |
| | 43,830 |
| | 46,065 |
| | 43,384 |
| | 131,921 |
| | 128,057 |
|
| Total other operating income | | 10,266 |
| | 10,094 |
| | 11,673 |
| | 9,400 |
| | 10,820 |
| | 32,033 |
| | 29,404 |
|
| Total other operating expense | | 34,934 |
| | 36,107 |
| | 34,348 |
| | 33,642 |
| | 34,025 |
| | 105,389 |
| | 101,040 |
|
| Income before taxes | | 19,449 |
| | 17,961 |
| | 21,155 |
| | 21,823 |
| | 20,179 |
| | 58,565 |
| | 56,421 |
|
| Income tax expense | | 4,895 |
| | 4,427 |
| | 5,118 |
| | 6,031 |
| | 4,986 |
| | 14,440 |
| | 12,727 |
|
| Net income | | 14,554 |
| | 13,534 |
| | 16,037 |
| | 15,792 |
| | 15,193 |
| | 44,125 |
| | 43,694 |
|
| Basic earnings per common share | | $ | 0.51 |
| | $ | 0.47 |
| | $ | 0.56 |
| | $ | 0.54 |
| | $ | 0.52 |
| | $ | 1.54 |
| | $ | 1.48 |
|
| Diluted earnings per common share | | 0.51 |
| | 0.47 |
| | 0.55 |
| | 0.54 |
| | 0.52 |
| | 1.53 |
| | 1.47 |
|
| Dividends declared per common share | | 0.23 |
| | 0.23 |
| | 0.21 |
| | 0.21 |
| | 0.21 |
| | 0.67 |
| | 0.61 |
|
| | | | | | | | | | | | | | | |
| PERFORMANCE RATIOS | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| Return on average assets (ROA) [1] | | 0.99 | % | | 0.92 | % | | 1.10 | % | | 1.10 | % | | 1.06 | % | | 1.00 | % | | 1.03 | % |
| Return on average shareholders’ equity (ROE) [1] | | 11.11 |
| | 10.73 |
| | 12.97 |
| | 12.90 |
| | 12.54 |
| | 11.58 |
| | 11.99 |
|
| Average shareholders’ equity to average assets | | 8.87 |
| | 8.62 |
| | 8.51 |
| | 8.53 |
| | 8.49 |
| | 8.67 |
| | 8.57 |
|
| Efficiency ratio [2] | | 62.48 |
| | 65.09 |
| | 60.49 |
| | 62.21 |
| | 62.84 |
| | 62.67 |
| | 64.06 |
|
| Net interest margin (NIM) [1] | | 3.30 |
| | 3.33 |
| | 3.34 |
| | 3.28 |
| | 3.20 |
| | 3.32 |
| | 3.20 |
|
| Dividend payout ratio [3] | | 45.10 |
| | 48.94 |
| | 38.18 |
| | 38.89 |
| | 40.38 |
| | 43.79 |
| | 41.50 |
|
| | | | | | | | | | | | | | | |
| SELECTED AVERAGE BALANCES | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| Average loans and leases, including loans held for sale | | $ | 4,293,455 |
| | $ | 4,171,558 |
| | $ | 4,083,791 |
| | $ | 4,022,376 |
| | $ | 3,941,511 |
| | $ | 4,183,703 |
| | $ | 3,856,420 |
|
| Average interest-earning assets | | 5,527,532 |
| | 5,485,977 |
| | 5,464,377 |
| | 5,451,052 |
| | 5,418,924 |
| | 5,492,860 |
| | 5,376,748 |
|
| Average assets | | 5,907,207 |
| | 5,856,465 |
| | 5,809,931 |
| | 5,739,228 |
| | 5,709,825 |
| | 5,858,224 |
| | 5,670,838 |
|
| Average deposits | | 4,987,414 |
| | 4,977,781 |
| | 4,978,470 |
| | 4,938,560 |
| | 5,063,061 |
| | 4,981,254 |
| | 5,035,009 |
|
| Average interest-bearing liabilities | | 3,920,304 |
| | 3,897,619 |
| | 3,821,528 |
| | 3,769,920 |
| | 3,802,028 |
| | 3,880,179 |
| | 3,774,903 |
|
| Average shareholders’ equity | | 524,083 |
| | 504,749 |
| | 494,635 |
| | 489,510 |
| | 484,737 |
| | 507,930 |
| | 485,942 |
|
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Financial Highlights | |
| (Unaudited) | TABLE 1 (CONTINUED) |
|
| | | | | | | | | | | | | | | | | | | | |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| (dollars in thousands) | | 2019 | | 2019 | | 2019 | | 2018 | | 2018 |
| REGULATORY CAPITAL | | | | | | | | | | |
| Central Pacific Financial Corp. | | | | | | | | | | |
| Leverage capital | | $ | 561,478 |
| | $ | 556,403 |
| | $ | 554,148 |
| | $ | 570,260 |
| | $ | 590,627 |
|
| Tier 1 risk-based capital | | 561,478 |
| | 556,403 |
| | 554,148 |
| | 570,260 |
| | 590,627 |
|
| Total risk-based capital | | 611,076 |
| | 606,567 |
| | 602,824 |
| | 619,419 |
| | 639,157 |
|
| Common equity tier 1 capital | | 511,478 |
| | 506,403 |
| | 504,148 |
| | 500,260 |
| | 500,627 |
|
| Central Pacific Bank | | | | | | | | | | |
| Leverage capital | | 550,913 |
| | 544,480 |
| | 539,390 |
| | 533,166 |
| | 571,949 |
|
| Tier 1 risk-based capital | | 550,913 |
| | 544,480 |
| | 539,390 |
| | 533,166 |
| | 571,949 |
|
| Total risk-based capital | | 600,511 |
| | 594,644 |
| | 588,066 |
| | 582,325 |
| | 620,479 |
|
| Common equity tier 1 capital | | 550,913 |
| | 544,480 |
| | 539,390 |
| | 533,166 |
| | 571,949 |
|
| | | | | | | | | | | |
| REGULATORY CAPITAL RATIOS | | | | | | | | | | |
| Central Pacific Financial Corp. | | | | | | | | | | |
| Leverage capital ratio | | 9.5 | % | | 9.5 | % | | 9.5 | % | | 9.9 | % | | 10.3 | % |
| Tier 1 risk-based capital ratio | | 12.6 |
| | 12.7 |
| | 13.0 |
| | 13.5 |
| | 14.2 |
|
| Total risk-based capital ratio | | 13.7 |
| | 13.9 |
| | 14.1 |
| | 14.7 |
| | 15.4 |
|
| Common equity tier 1 capital ratio | | 11.5 |
| | 11.6 |
| | 11.8 |
| | 11.9 |
| | 12.0 |
|
| Central Pacific Bank | | | | | | | | | | |
| Leverage capital ratio | | 9.4 |
| | 9.3 |
| | 9.3 |
| | 9.3 |
| | 10.0 |
|
| Tier 1 risk-based capital ratio | | 12.4 |
| | 12.5 |
| | 12.7 |
| | 12.7 |
| | 13.8 |
|
| Total risk-based capital ratio | | 13.5 |
| | 13.6 |
| | 13.8 |
| | 13.8 |
| | 15.0 |
|
| Common equity tier 1 capital ratio | | 12.4 |
| | 12.5 |
| | 12.7 |
| | 12.7 |
| | 13.8 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| (dollars in thousands, except for per share amounts) | | 2019 | | 2019 | | 2019 | | 2018 | | 2018 |
| BALANCE SHEET | | |
| | |
| | | | | | |
|
| Loans and leases | | $ | 4,367,862 |
| | $ | 4,247,113 |
| | $ | 4,101,571 |
| | $ | 4,078,366 |
| | $ | 3,978,027 |
|
| Total assets | | 5,976,716 |
| | 5,920,006 |
| | 5,841,352 |
| | 5,807,026 |
| | 5,728,640 |
|
| Total deposits | | 5,037,659 |
| | 4,976,849 |
| | 4,948,128 |
| | 4,946,490 |
| | 5,003,680 |
|
| Long-term debt | | 101,547 |
| | 101,547 |
| | 101,547 |
| | 122,166 |
| | 92,785 |
|
| Total shareholders’ equity | | 525,227 |
| | 515,695 |
| | 502,638 |
| | 491,725 |
| | 478,151 |
|
| Total shareholders’ equity to total assets | | 8.79 | % | | 8.71 | % | | 8.60 | % | | 8.47 | % | | 8.35 | % |
| | | | | | | | | | | |
| ASSET QUALITY | | |
| | |
| | |
| | |
| | |
|
| Allowance for loan and lease losses | | $ | 48,167 |
| | $ | 48,267 |
| | $ | 47,267 |
| | $ | 47,916 |
| | $ | 46,826 |
|
| Non-performing assets | | 1,360 |
| | 1,258 |
| | 3,338 |
| | 2,737 |
| | 3,026 |
|
| Allowance to loans and leases outstanding | | 1.10 | % | | 1.14 | % | | 1.15 | % | | 1.17 | % | | 1.18 | % |
| Allowance to non-performing assets | | 3,541.69 | % | | 3,836.80 | % | | 1,416.03 | % | | 1,750.68 | % | | 1,547.46 | % |
| | | | | | | | | | | |
| PER SHARE OF COMMON STOCK OUTSTANDING | | |
| | |
| | |
| | |
| | |
|
| Book value per common share | | $ | 18.47 |
| | $ | 18.05 |
| | $ | 17.50 |
| | $ | 16.97 |
| | $ | 16.34 |
|
| | | | | | | | | | | |
| | | | | | | | | | | |
| [1] ROA, ROE and ROTE 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. |
| |
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| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Consolidated Balance Sheets | |
| (Unaudited) | TABLE 2 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| (Dollars in thousands, except share data) | | 2019 | | 2019 | | 2019 | | 2018 | | 2018 |
| ASSETS | | |
| | |
| | | | | | |
|
| Cash and due from financial institutions | | $ | 87,395 |
| | $ | 83,534 |
| | $ | 90,869 |
| | $ | 80,569 |
| | $ | 82,668 |
|
| Interest-bearing deposits in other financial institutions | | 7,803 |
| | 15,173 |
| | 7,310 |
| | 21,617 |
| | 7,051 |
|
| Investment securities: | | | | | | |
| | |
| | |
| Available-for-sale debt securities, at fair value | | 1,186,875 |
| | 1,254,743 |
| | 1,319,450 |
| | 1,205,478 |
| | 1,233,002 |
|
| Held-to-maturity debt securities, at amortized cost; fair value of: none at September 30, 2019, none at June 30, 2019, none at March 31, 2019, $144,272 at December 31, 2018, and $146,466 at September 30, 2018 | | — |
| | — |
| | — |
| | 148,508 |
| | 152,852 |
|
| Equity securities, at fair value | | 1,058 |
| | 1,034 |
| | 910 |
| | 826 |
| | 885 |
|
| Total investment securities | | 1,187,933 |
| | 1,255,777 |
| | 1,320,360 |
| | 1,354,812 |
| | 1,386,739 |
|
| Loans held for sale | | 7,016 |
| | 6,848 |
| | 3,539 |
| | 6,647 |
| | 4,460 |
|
| Loans and leases | | 4,367,862 |
| | 4,247,113 |
| | 4,101,571 |
| | 4,078,366 |
| | 3,978,027 |
|
| Less allowance for loan and lease losses | | 48,167 |
| | 48,267 |
| | 47,267 |
| | 47,916 |
| | 46,826 |
|
| Loans and leases, net of allowance for loan and lease losses | | 4,319,695 |
| | 4,198,846 |
| | 4,054,304 |
| | 4,030,450 |
| | 3,931,201 |
|
| Premises and equipment, net | | 44,095 |
| | 43,600 |
| | 44,527 |
| | 45,285 |
| | 46,184 |
|
| Accrued interest receivable | | 16,220 |
| | 17,260 |
| | 17,082 |
| | 17,000 |
| | 16,755 |
|
| Investment in unconsolidated subsidiaries | | 17,001 |
| | 17,247 |
| | 16,054 |
| | 14,008 |
| | 15,283 |
|
| Other real estate owned | | 466 |
| | 276 |
| | 276 |
| | 414 |
| | 414 |
|
| Mortgage servicing rights | | 15,058 |
| | 15,266 |
| | 15,347 |
| | 15,596 |
| | 15,634 |
|
| Bank-owned life insurance | | 158,939 |
| | 158,294 |
| | 158,392 |
| | 157,440 |
| | 157,085 |
|
| Federal Home Loan Bank ("FHLB") stock | | 17,183 |
| | 17,824 |
| | 16,145 |
| | 16,645 |
| | 10,965 |
|
| Right of use lease asset [1] | | 52,588 |
| | 53,678 |
| | 54,781 |
| | — |
| | — |
|
| Other assets | | 45,324 |
| | 36,383 |
| | 42,366 |
| | 46,543 |
| | 54,201 |
|
| Total assets | | $ | 5,976,716 |
| | $ | 5,920,006 |
| | $ | 5,841,352 |
| | $ | 5,807,026 |
| | $ | 5,728,640 |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY | | |
| | |
| | |
| | |
| | |
|
| Deposits: | | |
| | |
| | |
| | |
| | |
|
| Noninterest-bearing demand | | $ | 1,399,200 |
| | $ | 1,351,190 |
| | $ | 1,357,890 |
| | $ | 1,436,967 |
| | $ | 1,403,534 |
|
| Interest-bearing demand | | 998,037 |
| | 1,002,706 |
| | 965,316 |
| | 954,011 |
| | 935,130 |
|
| Savings and money market | | 1,593,738 |
| | 1,573,805 |
| | 1,562,798 |
| | 1,448,257 |
| | 1,503,465 |
|
| Time | | 1,046,684 |
| | 1,049,148 |
| | 1,062,124 |
| | 1,107,255 |
| | 1,161,551 |
|
| Total deposits | | 5,037,659 |
| | 4,976,849 |
| | 4,948,128 |
| | 4,946,490 |
| | 5,003,680 |
|
| FHLB advances and other short-term borrowings | | 205,000 |
| | 221,000 |
| | 179,000 |
| | 197,000 |
| | 105,000 |
|
| Long-term debt | | 101,547 |
| | 101,547 |
| | 101,547 |
| | 122,166 |
| | 92,785 |
|
| Lease liability [1] | | 52,807 |
| | 53,829 |
| | 54,861 |
| | — |
| | — |
|
| Other liabilities | | 54,476 |
| | 51,086 |
| | 55,178 |
| | 49,645 |
| | 49,024 |
|
| Total liabilities | | 5,451,489 |
| | 5,404,311 |
| | 5,338,714 |
| | 5,315,301 |
| | 5,250,489 |
|
| Shareholders' equity: | | |
| | |
| | |
| | |
| | |
|
| Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018 | | — |
| | — |
| | — |
| | — |
| | — |
|
| Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 28,441,341 at September 30, 2019, 28,567,777 at June 30, 2019, 28,723,041 at March 31, 2019, 28,967,715 at December 31, 2018, and 29,270,398 at September 30, 2018 | | 452,278 |
| | 456,293 |
| | 462,952 |
| | 470,660 |
| | 478,721 |
|
| Additional paid-in capital | | 90,604 |
| | 89,724 |
| | 89,374 |
| | 88,876 |
| | 87,939 |
|
| Accumulated deficit | | (26,782 | ) | | (34,780 | ) | | (41,733 | ) | | (51,718 | ) | | (61,406 | ) |
| Accumulated other comprehensive income (loss) | | 9,127 |
| | 4,458 |
| | (7,955 | ) | | (16,093 | ) | | (27,103 | ) |
| Total shareholders' equity | | 525,227 |
| | 515,695 |
| | 502,638 |
| | 491,725 |
| | 478,151 |
|
| Total liabilities and shareholders' equity | | $ | 5,976,716 |
| | $ | 5,920,006 |
| | $ | 5,841,352 |
| | $ | 5,807,026 |
| | $ | 5,728,640 |
|
| | | | | | | | | | | |
| [1] The Company adopted ASU 2016-02 effective January 1, 2019 using the modified retrospective approach and recorded a right of use lease asset and lease liability on the balance sheet as of March 31, 2019 for its operating leases where it is a lessee. The Company also elected to apply the practical expedient available under ASU 2018-11, which allows entities to apply the new leases standard at the adoption date and elect to not recast comparative periods. |
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Consolidated Statements of Income | |
| (Unaudited) | TABLE 3 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | | September 30, |
| (Dollars in thousands, except per share data) | | 2019 | | 2019 | | 2019 | | 2018 | | 2018 | | 2019 | | 2018 |
| Interest income: | | |
| | |
| | | | | | |
| | |
| | |
|
| Interest and fees on loans and leases | | $ | 45,861 |
| | $ | 45,540 |
| | $ | 43,768 |
| | $ | 42,836 |
| | $ | 40,531 |
| | $ | 135,169 |
| | $ | 116,620 |
|
| Interest and dividends on investment securities: | | | | | | | | | | | | | | |
| Taxable investment securities | | 7,178 |
| | 7,530 |
| | 8,260 |
| | 8,451 |
| | 8,490 |
| | 22,968 |
| | 26,050 |
|
| Tax-exempt investment securities | | 708 |
| | 814 |
| | 866 |
| | 910 |
| | 920 |
| | 2,388 |
| | 2,786 |
|
| Dividend income on investment securities | | 14 |
| | 14 |
| | 18 |
| | 17 |
| | 26 |
| | 46 |
| | 44 |
|
| Interest on deposits in other financial institutions | | 33 |
| | 46 |
| | 68 |
| | 55 |
| | 109 |
| | 147 |
| | 310 |
|
| Dividend income on FHLB stock | | 186 |
| | 161 |
| | 161 |
| | 70 |
| | 60 |
| | 508 |
| | 145 |
|
| Total interest income | | 53,980 |
| | 54,105 |
| | 53,141 |
| | 52,339 |
| | 50,136 |
| | 161,226 |
| | 145,955 |
|
| Interest expense: | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| Interest on deposits: | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| Demand | | 207 |
| | 199 |
| | 192 |
| | 180 |
| | 181 |
| | 598 |
| | 554 |
|
| Savings and money market | | 1,549 |
| | 1,507 |
| | 791 |
| | 579 |
| | 593 |
| | 3,847 |
| | 1,421 |
|
| Time | | 4,432 |
| | 4,867 |
| | 5,092 |
| | 4,567 |
| | 4,744 |
| | 14,391 |
| | 12,203 |
|
| Interest on short-term borrowings | | 1,130 |
| | 1,123 |
| | 893 |
| | 999 |
| | 146 |
| | 3,146 |
| | 237 |
|
| Interest on long-term debt | | 1,013 |
| | 1,031 |
| | 1,060 |
| | 1,335 |
| | 1,147 |
| | 3,104 |
| | 3,221 |
|
| Total interest expense | | 8,331 |
| | 8,727 |
| | 8,028 |
| | 7,660 |
| | 6,811 |
| | 25,086 |
| | 17,636 |
|
| Net interest income | | 45,649 |
| | 45,378 |
| | 45,113 |
| | 44,679 |
| | 43,325 |
| | 136,140 |
| | 128,319 |
|
| Provision (credit) for loan and lease losses ("Provision") | | 1,532 |
| | 1,404 |
| | 1,283 |
| | (1,386 | ) | | (59 | ) | | 4,219 |
| | 262 |
|
| Net interest income after Provision | | 44,117 |
| | 43,974 |
| | 43,830 |
| | 46,065 |
| | 43,384 |
| | 131,921 |
| | 128,057 |
|
| Other operating income: | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| Mortgage banking income | | 1,764 |
| | 1,601 |
| | 1,424 |
| | 1,770 |
| | 1,923 |
| | 4,789 |
| | 5,545 |
|
| Service charges on deposit accounts | | 2,125 |
| | 2,041 |
| | 2,081 |
| | 2,237 |
| | 2,189 |
| | 6,247 |
| | 6,169 |
|
| Other service charges and fees | | 3,724 |
| | 3,691 |
| | 3,064 |
| | 3,426 |
| | 3,286 |
| | 10,479 |
| | 9,697 |
|
| Income from fiduciary activities | | 1,126 |
| | 1,129 |
| | 965 |
| | 1,113 |
| | 1,159 |
| | 3,220 |
| | 3,132 |
|
| Equity in earnings of unconsolidated subsidiaries | | 86 |
| | 71 |
| | 8 |
| | 82 |
| | 71 |
| | 165 |
| | 151 |
|
| Fees on foreign exchange | | 170 |
| | 218 |
| | 151 |
| | 197 |
| | 220 |
| | 539 |
| | 708 |
|
| Net gains (losses) on sales of investment securities | | 36 |
| | — |
| | — |
| | (279 | ) | | — |
| | 36 |
| | — |
|
| Income from bank-owned life insurance | | 645 |
| | 914 |
| | 952 |
| | 243 |
| | 1,055 |
| | 2,511 |
| | 1,874 |
|
| Loan placement fees | | 230 |
| | 107 |
| | 149 |
| | 215 |
| | 115 |
| | 486 |
| | 532 |
|
| Net gains on sales of foreclosed assets | | 17 |
| | — |
| | — |
| | — |
| | — |
| | 17 |
| | — |
|
| Other (refer to Table 4) | | 343 |
| | 322 |
| | 2,879 |
| | 396 |
| | 802 |
| | 3,544 |
| | 1,596 |
|
| Total other operating income | | 10,266 |
| | 10,094 |
| | 11,673 |
| | 9,400 |
| | 10,820 |
| | 32,033 |
| | 29,404 |
|
| Other operating expense: | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| Salaries and employee benefits | | 20,631 |
| | 20,563 |
| | 19,889 |
| | 19,053 |
| | 19,011 |
| | 61,083 |
| | 56,299 |
|
| Net occupancy | | 3,697 |
| | 3,525 |
| | 3,458 |
| | 3,649 |
| | 3,488 |
| | 10,680 |
| | 10,114 |
|
| Equipment | | 1,067 |
| | 1,138 |
| | 1,006 |
| | 1,079 |
| | 1,048 |
| | 3,211 |
| | 3,160 |
|
| Amortization of core deposit premium | | — |
| | — |
| | — |
| | — |
| | 669 |
| | — |
| | 2,006 |
|
| Communication expense | | 1,008 |
| | 903 |
| | 734 |
| | 863 |
| | 903 |
| | 2,645 |
| | 2,547 |
|
| Legal and professional services | | 1,933 |
| | 1,728 |
| | 1,570 |
| | 2,212 |
| | 1,528 |
| | 5,231 |
| | 5,118 |
|
| Computer software expense | | 2,713 |
| | 2,560 |
| | 2,597 |
| | 2,597 |
| | 2,672 |
| | 7,870 |
| | 7,244 |
|
| Advertising expense | | 711 |
| | 712 |
| | 711 |
| | 834 |
| | 612 |
| | 2,134 |
| | 1,841 |
|
| Foreclosed asset expense | | 15 |
| | 49 |
| | 159 |
| | 37 |
| | 212 |
| | 223 |
| | 537 |
|
| Other (refer to Table 4) | | 3,159 |
| | 4,929 |
| | 4,224 |
| | 3,318 |
| | 3,882 |
| | 12,312 |
| | 12,174 |
|
| Total other operating expense | | 34,934 |
| | 36,107 |
| | 34,348 |
| | 33,642 |
| | 34,025 |
| | 105,389 |
| | 101,040 |
|
| Income before income taxes | | 19,449 |
| | 17,961 |
| | 21,155 |
| | 21,823 |
| | 20,179 |
| | 58,565 |
| | 56,421 |
|
| Income tax expense | | 4,895 |
| | 4,427 |
| | 5,118 |
| | 6,031 |
| | 4,986 |
| | 14,440 |
| | 12,727 |
|
| Net income | | $ | 14,554 |
| | $ | 13,534 |
| | $ | 16,037 |
| | $ | 15,792 |
| | $ | 15,193 |
| | $ | 44,125 |
| | $ | 43,694 |
|
| Per common share data: | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| Basic earnings per share | | $ | 0.51 |
| | $ | 0.47 |
| | $ | 0.56 |
| | $ | 0.54 |
| | $ | 0.52 |
| | $ | 1.54 |
| | $ | 1.48 |
|
| Diluted earnings per share | | 0.51 |
| | 0.47 |
| | 0.55 |
| | 0.54 |
| | 0.52 |
| | 1.53 |
| | 1.47 |
|
| Cash dividends declared | | 0.23 |
| | 0.23 |
| | 0.21 |
| | 0.21 |
| | 0.21 |
| | 0.67 |
| | 0.61 |
|
| Basic weighted average shares outstanding | | 28,424,898 |
| | 28,546,564 |
| | 28,758,310 |
| | 29,033,261 |
| | 29,297,465 |
| | 28,575,369 |
| | 29,536,536 |
|
| Diluted weighted average shares outstanding | | 28,602,338 |
| | 28,729,510 |
| | 28,979,855 |
| | 29,217,480 |
| | 29,479,812 |
| | 28,762,057 |
| | 29,743,238 |
|
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Other Operating Income and Other Operating Expense - Detail | |
| (Unaudited) | TABLE 4 |
The following table sets forth the components of other operating income - other for the periods indicated:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | | September 30, |
| (Dollars in thousands) | | 2019 | | 2019 | | 2019 | | 2018 | | 2018 | | 2019 | | 2018 |
| Other operating income - other: | | | | | | | | | | | | | | |
| Income recovered on nonaccrual loans previously charged-off | | $ | 73 |
| | $ | 85 |
| | $ | 82 |
| | $ | 99 |
| | $ | 395 |
| | $ | 240 |
| | $ | 621 |
|
| Other recoveries | | 42 |
| | 26 |
| | 26 |
| | 25 |
| | 101 |
| | 94 |
| | 196 |
|
| Commissions on sale of checks | | 75 |
| | 79 |
| | 80 |
| | 79 |
| | 79 |
| | 234 |
| | 249 |
|
| Gain on sale of MasterCard stock | | — |
| | — |
| | 2,555 |
| | — |
| | — |
| | 2,555 |
| | — |
|
| Other | | 153 |
| | 132 |
| | 136 |
| | 193 |
| | 227 |
| | 421 |
| | 530 |
|
| Total other operating income - other | | $ | 343 |
| | $ | 322 |
| | $ | 2,879 |
| | $ | 396 |
| | $ | 802 |
| | $ | 3,544 |
| | $ | 1,596 |
|
| | | | | | | | | | | | | | | |
The following table sets forth the components of other operating expense - other for the periods indicated:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | | September 30, |
| (Dollars in thousands) | | 2019 | | 2019 | | 2019 | | 2018 | | 2018 | | 2019 | | 2018 |
| Other operating expense - other: | | | | | | | | | | | | | | |
| Charitable contributions | | $ | 230 |
| | $ | 175 |
| | $ | 154 |
| | $ | 138 |
| | $ | 166 |
| | $ | 559 |
| | $ | 497 |
|
| FDIC insurance assessment | | 5 |
| | 362 |
| | 501 |
| | 427 |
| | 437 |
| | 868 |
| | 1,305 |
|
| Miscellaneous loan expenses | | 274 |
| | 317 |
| | 294 |
| | 339 |
| | 403 |
| | 885 |
| | 1,026 |
|
| ATM and debit card expenses | | 660 |
| | 620 |
| | 650 |
| | 613 |
| | 686 |
| | 1,930 |
| | 2,032 |
|
| Armored car expenses | | 220 |
| | 211 |
| | 198 |
| | 238 |
| | 185 |
| | 629 |
| | 584 |
|
| Entertainment and promotions | | 323 |
| | 1,023 |
| | 230 |
| | 445 |
| | 185 |
| | 1,576 |
| | 617 |
|
| Stationery and supplies | | 240 |
| | 279 |
| | 225 |
| | 271 |
| | 206 |
| | 744 |
| | 643 |
|
| Directors’ fees and expenses | | 242 |
| | 238 |
| | 242 |
| | 263 |
| | 263 |
| | 722 |
| | 777 |
|
| Provision (credit) for residential mortgage loan repurchase losses | | — |
| | (403 | ) | | — |
| | (181 | ) | | 331 |
| | (403 | ) | | 331 |
|
| Increase (decrease) to the reserve for unfunded commitments | | (465 | ) | | 487 |
| | 167 |
| | (461 | ) | | (71 | ) | | 189 |
| | 36 |
|
| Other | | 1,430 |
| | 1,620 |
| | 1,563 |
| | 1,226 |
| | 1,091 |
| | 4,613 |
| | 4,326 |
|
| Total other operating expense - other | | $ | 3,159 |
| | $ | 4,929 |
| | $ | 4,224 |
| | $ | 3,318 |
| | $ | 3,882 |
| | $ | 12,312 |
| | $ | 12,174 |
|
| | | | | | | | | | | | | | | |
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent) | |
| (Unaudited) | TABLE 5 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Three Months Ended | | Three Months Ended |
| | | September 30, 2019 | | June 30, 2019 | | September 30, 2018 |
| | | 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 | | $ | 6,295 |
| | 2.05 | % | | $ | 33 |
| | $ | 8,002 |
| | 2.34 | % | | $ | 46 |
| | $ | 22,057 |
| | 1.97 | % | | $ | 109 |
|
| Investment securities, excluding valuation allowance: | | | | | | | | | | | | | | | | | | |
| Taxable | | 1,093,352 |
| | 2.63 |
| | 7,192 |
| | 1,147,759 |
| | 2.63 |
| | 7,544 |
| | 1,284,411 |
| | 2.65 |
| | 8,516 |
|
| Tax-exempt [1] | | 117,784 |
| | 3.04 |
| | 896 |
| | 142,660 |
| | 2.89 |
| | 1,030 |
| | 163,172 |
| | 2.86 |
| | 1,165 |
|
| Total investment securities | | 1,211,136 |
| | 2.67 |
| | 8,088 |
| | 1,290,419 |
| | 2.66 |
| | 8,574 |
| | 1,447,583 |
| | 2.67 |
| | 9,681 |
|
| Loans and leases, including loans held for sale | | 4,293,455 |
| | 4.25 |
| | 45,861 |
| | 4,171,558 |
| | 4.37 |
| | 45,540 |
| | 3,941,511 |
| | 4.09 |
| | 40,531 |
|
| Federal Home Loan Bank stock | | 16,646 |
| | 4.46 |
| | 186 |
| | 15,998 |
| | 4.02 |
| | 161 |
| | 7,773 |
| | 3.11 |
| | 60 |
|
| Total interest-earning assets | | 5,527,532 |
| | 3.90 |
| | 54,168 |
| | 5,485,977 |
| | 3.97 |
| | 54,321 |
| | 5,418,924 |
| | 3.70 |
| | 50,381 |
|
| Noninterest-earning assets | | 379,675 |
| | |
| | |
| | 370,488 |
| | |
| | |
| | 290,901 |
| | |
| | |
|
| Total assets | | $ | 5,907,207 |
| | |
| | |
| | $ | 5,856,465 |
| | |
| | |
| | $ | 5,709,825 |
| | |
| | |
|
| | | | | | | | | | | | | | | | | | | |
| LIABILITIES AND EQUITY |
| Interest-bearing liabilities: | | | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| Interest-bearing demand deposits | | $ | 1,002,875 |
| | 0.08 | % | | $ | 207 |
| | $ | 962,402 |
| | 0.08 | % | | $ | 199 |
| | $ | 933,405 |
| | 0.08 | % | | $ | 181 |
|
| Savings and money market deposits | | 1,582,795 |
| | 0.39 |
| | 1,549 |
| | 1,577,437 |
| | 0.38 |
| | 1,507 |
| | 1,524,121 |
| | 0.15 |
| | 593 |
|
| Time deposits under $100,000 | | 167,331 |
| | 0.69 |
| | 293 |
| | 173,556 |
| | 0.70 |
| | 305 |
| | 177,108 |
| | 0.53 |
| | 236 |
|
| Time deposits $100,000 and over | | 874,192 |
| | 1.88 |
| | 4,139 |
| | 907,330 |
| | 2.02 |
| | 4,562 |
| | 1,049,446 |
| | 1.70 |
| | 4,508 |
|
| Total interest-bearing deposits | | 3,627,193 |
| | 0.68 |
| | 6,188 |
| | 3,620,725 |
| | 0.73 |
| | 6,573 |
| | 3,684,080 |
| | 0.59 |
| | 5,518 |
|
| Federal Home Loan Bank advances and other short-term borrowings | | 191,564 |
| | 2.34 |
| | 1,130 |
| | 175,347 |
| | 2.57 |
| | 1,123 |
| | 25,163 |
| | 2.30 |
| | 146 |
|
| Long-term debt | | 101,547 |
| | 3.96 |
| | 1,013 |
| | 101,547 |
| | 4.07 |
| | 1,031 |
| | 92,785 |
| | 4.90 |
| | 1,147 |
|
| Total interest-bearing liabilities | | 3,920,304 |
| | 0.84 |
| | 8,331 |
| | 3,897,619 |
| | 0.90 |
| | 8,727 |
| | 3,802,028 |
| | 0.71 |
| | 6,811 |
|
| Noninterest-bearing deposits | | 1,360,221 |
| | |
| | |
| | 1,357,056 |
| | |
| | |
| | 1,378,981 |
| | |
| | |
|
| Other liabilities | | 102,599 |
| | |
| | |
| | 97,041 |
| | |
| | |
| | 44,079 |
| | |
| | |
|
| Total liabilities | | 5,383,124 |
| | |
| | |
| | 5,351,716 |
| | |
| | |
| | 5,225,088 |
| | |
| | |
|
| Shareholders’ equity | | 524,083 |
| | |
| | |
| | 504,749 |
| | |
| | |
| | 484,737 |
| | |
| | |
|
| Non-controlling interest | | — |
| | |
| | |
| | — |
| | |
| | |
| | — |
| | |
| | |
|
| Total equity | | 524,083 |
| | |
| | |
| | 504,749 |
| | |
| | |
| | 484,737 |
| | |
| | |
|
| Total liabilities and equity | | $ | 5,907,207 |
| | |
| | |
| | $ | 5,856,465 |
| | |
| | |
| | $ | 5,709,825 |
| | |
| | |
|
| | | | | | | | | | | | | | | | | | | |
| Net interest income | | |
| | |
| | $ | 45,837 |
| | |
| | |
| | $ | 45,594 |
| | |
| | |
| | $ | 43,570 |
|
| | | | | | | | | | | | | | | | | | | |
| Interest rate spread | | | | 3.06 | % | | | | | | 3.07 | % | | | | | | 2.99 | % | | |
| | | | | | | | | | | | | | | | | | | |
| Net interest margin | | |
| | 3.30 | % | | |
| | |
| | 3.33 | % | | |
| | |
| | 3.20 | % | | |
|
| | | | | | | | | | | | | | | | | | | |
| [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% effective January 1, 2018. |
| | | | | | | | | | | | | | | | | | | |
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent) | |
| (Unaudited) | TABLE 6 |
|
| | | | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended | | Nine Months Ended |
| | | September 30, 2019 | | September 30, 2018 |
| | | 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 | | $ | 8,540 |
| | 2.30 | % | | $ | 147 |
| | $ | 23,713 |
| | 1.75 | % | | $ | 310 |
|
| Investment securities, excluding valuation allowance: | | | | | | | | | | | | |
| Taxable | | 1,147,217 |
| | 2.67 |
| | 23,014 |
| | 1,325,180 |
| | 2.63 |
| | 26,094 |
|
| Tax-exempt [1] | | 137,750 |
| | 2.93 |
| | 3,023 |
| | 164,174 |
| | 2.86 |
| | 3,527 |
|
| Total investment securities | | 1,284,967 |
| | 2.70 |
| | 26,037 |
| | 1,489,354 |
| | 2.65 |
| | 29,621 |
|
| Loans and leases, including loans held for sale | | 4,183,703 |
| | 4.32 |
| | 135,169 |
| | 3,856,420 |
| | 4.04 |
| | 116,620 |
|
| Federal Home Loan Bank stock | | 15,650 |
| | 4.33 |
| | 508 |
| | 7,261 |
| | 2.67 |
| | 145 |
|
| Total interest-earning assets | | 5,492,860 |
| | 3.94 |
| | 161,861 |
| | 5,376,748 |
| | 3.64 |
| | 146,696 |
|
| Noninterest-earning assets | | 365,364 |
| | |
| | |
| | 294,090 |
| | |
| | |
|
| Total assets | | $ | 5,858,224 |
| | |
| | |
| | $ | 5,670,838 |
| | |
| | |
|
| | | | | | | | | | | | | |
| LIABILITIES AND EQUITY |
| Interest-bearing liabilities: | | |
| | |
| | |
| | |
| | |
| | |
|
| Interest-bearing demand deposits | | $ | 972,316 |
| | 0.08 | % | | $ | 598 |
| | $ | 940,154 |
| | 0.08 | % | | $ | 554 |
|
| Savings and money market deposits | | 1,544,759 |
| | 0.33 |
| | 3,847 |
| | 1,506,565 |
| | 0.13 |
| | 1,421 |
|
| Time deposits under $100,000 | | 172,204 |
| | 0.69 |
| | 884 |
| | 178,363 |
| | 0.42 |
| | 645 |
|
| Time deposits $100,000 and over | | 921,003 |
| | 1.96 |
| | 13,507 |
| | 1,042,353 |
| | 1.48 |
| | 11,558 |
|
| Total interest-bearing deposits | | 3,610,282 |
| | 0.70 |
| | 18,836 |
| | 3,667,435 |
| | 0.52 |
| | 14,178 |
|
| Federal Home Loan Bank advances and other short-term borrowings | | 168,350 |
| | 2.50 |
| | 3,146 |
| | 14,683 |
| | 2.16 |
| | 237 |
|
| Long-term debt | | 101,547 |
| | 4.09 |
| | 3,104 |
| | 92,785 |
| | 4.64 |
| | 3,221 |
|
| Total interest-bearing liabilities | | 3,880,179 |
| | 0.86 |
| | 25,086 |
| | 3,774,903 |
| | 0.62 |
| | 17,636 |
|
| Noninterest-bearing deposits | | 1,370,972 |
| | |
| | |
| | 1,367,574 |
| | |
| | |
|
| Other liabilities | | 99,143 |
| | |
| | |
| | 42,414 |
| | |
| | |
|
| Total liabilities | | 5,350,294 |
| | |
| | |
| | 5,184,891 |
| | |
| | |
|
| Shareholders’ equity | | 507,930 |
| | |
| | |
| | 485,942 |
| | |
| | |
|
| Non-controlling interest | | — |
| | |
| | |
| | 5 |
| | |
| | |
|
| Total equity | | 507,930 |
| | |
| | |
| | 485,947 |
| | |
| | |
|
| Total liabilities and equity | | $ | 5,858,224 |
| | |
| | |
| | $ | 5,670,838 |
| | |
| | |
|
| | | | | | | | | | | | | |
| Net interest income | | |
| | |
| | $ | 136,775 |
| | |
| | |
| | $ | 129,060 |
|
| | | | | | | | | | | | | |
| Interest rate spread | | | | 3.08 | % | | | | | | 3.02 | % | | |
| | | | | | | | | | | | | |
| Net interest margin | | |
| | 3.32 | % | | |
| | |
| | 3.20 | % | | |
|
| | | | | | | | | | | | | |
| [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% effective January 1, 2018. |
| | | | | | | | | | | | | |
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Loans and Leases by Geographic Distribution | |
| (Unaudited) | TABLE 7 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| (Dollars in thousands) | | 2019 | | 2019 | | 2019 | | 2018 | | 2018 |
| HAWAII: | | |
| | |
| | |
| | |
| | |
|
| Commercial, financial and agricultural | | $ | 439,296 |
| | $ | 435,353 |
| | $ | 411,396 |
| | $ | 439,112 |
| | $ | 427,047 |
|
| Real estate: | | | | | | | | | | |
| Construction | | 96,661 |
| | 72,427 |
| | 68,981 |
| | 64,654 |
| | 66,286 |
|
| Residential mortgage | | 1,558,735 |
| | 1,516,936 |
| | 1,451,794 |
| | 1,428,205 |
| | 1,392,669 |
|
| Home equity | | 475,565 |
| | 473,151 |
| | 465,905 |
| | 468,966 |
| | 455,599 |
|
| Commercial mortgage | | 909,987 |
| | 905,479 |
| | 869,521 |
| | 861,086 |
| | 845,864 |
|
| Consumer | | 369,511 |
| | 353,282 |
| | 352,771 |
| | 357,908 |
| | 345,785 |
|
| Leases | | 31 |
| | 52 |
| | 83 |
| | 124 |
| | 170 |
|
| Total loans and leases | | 3,849,786 |
| | 3,756,680 |
| | 3,620,451 |
| | 3,620,055 |
| | 3,533,420 |
|
| Allowance for loan and lease losses | | (42,286 | ) | | (42,414 | ) | | (41,413 | ) | | (42,993 | ) | | (41,991 | ) |
| Net loans and leases | | $ | 3,807,500 |
| | $ | 3,714,266 |
| | $ | 3,579,038 |
| | $ | 3,577,062 |
| | $ | 3,491,429 |
|
| | | | | | | | | | | |
| U.S. MAINLAND: [1] | | |
| | |
| | |
| | |
| | |
|
| Commercial, financial and agricultural | | $ | 137,316 |
| | $ | 155,130 |
| | $ | 155,399 |
| | $ | 142,548 |
| | $ | 138,317 |
|
| Real estate: | | | | | | | | | | |
| Construction | | — |
| | — |
| | 2,194 |
| | 2,273 |
| | 2,355 |
|
| Residential mortgage | | — |
| | — |
| | — |
| | — |
| | — |
|
| Home equity | | — |
| | — |
| | — |
| | — |
| | — |
|
| Commercial mortgage | | 223,925 |
| | 187,379 |
| | 188,485 |
| | 179,192 |
| | 187,586 |
|
| Consumer | | 156,835 |
| | 147,924 |
| | 135,042 |
| | 134,298 |
| | 116,349 |
|
| Leases | | — |
| | — |
| | — |
| | — |
| | — |
|
| Total loans and leases | | 518,076 |
| | 490,433 |
| | 481,120 |
| | 458,311 |
| | 444,607 |
|
| Allowance for loan and lease losses | | (5,881 | ) | | (5,853 | ) | | (5,854 | ) | | (4,923 | ) | | (4,835 | ) |
| Net loans and leases | | $ | 512,195 |
| | $ | 484,580 |
| | $ | 475,266 |
| | $ | 453,388 |
| | $ | 439,772 |
|
| | | | | | | | | | | |
| TOTAL: | | |
| | |
| | |
| | |
| | |
|
| Commercial, financial and agricultural | | $ | 576,612 |
| | $ | 590,483 |
| | $ | 566,795 |
| | $ | 581,660 |
| | $ | 565,364 |
|
| Real estate: | | | | | | | | | | |
| Construction | | 96,661 |
| | 72,427 |
| | 71,175 |
| | 66,927 |
| | 68,641 |
|
| Residential mortgage | | 1,558,735 |
| | 1,516,936 |
| | 1,451,794 |
| | 1,428,205 |
| | 1,392,669 |
|
| Home equity | | 475,565 |
| | 473,151 |
| | 465,905 |
| | 468,966 |
| | 455,599 |
|
| Commercial mortgage | | 1,133,912 |
| | 1,092,858 |
| | 1,058,006 |
| | 1,040,278 |
| | 1,033,450 |
|
| Consumer | | 526,346 |
| | 501,206 |
| | 487,813 |
| | 492,206 |
| | 462,134 |
|
| Leases | | 31 |
| | 52 |
| | 83 |
| | 124 |
| | 170 |
|
| Total loans and leases | | 4,367,862 |
| | 4,247,113 |
| | 4,101,571 |
| | 4,078,366 |
| | 3,978,027 |
|
| Allowance for loan and lease losses | | (48,167 | ) | | (48,267 | ) | | (47,267 | ) | | (47,916 | ) | | (46,826 | ) |
| Net loans and leases | | $ | 4,319,695 |
| | $ | 4,198,846 |
| | $ | 4,054,304 |
| | $ | 4,030,450 |
| | $ | 3,931,201 |
|
| | | | | | | | | | | |
| [1] U.S. Mainland includes territories of the United States. |
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Deposits | |
| (Unaudited) | TABLE 8 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| (Dollars in thousands) | | 2019 | | 2019 | | 2019 | | 2018 | | 2018 |
| Noninterest-bearing demand | | $ | 1,399,200 |
| | $ | 1,351,190 |
| | $ | 1,357,890 |
| | $ | 1,436,967 |
| | $ | 1,403,534 |
|
| Interest-bearing demand | | 998,037 |
| | 1,002,706 |
| | 965,316 |
| | 954,011 |
| | 935,130 |
|
| Savings and money market | | 1,593,738 |
| | 1,573,805 |
| | 1,562,798 |
| | 1,448,257 |
| | 1,503,465 |
|
| Time deposits less than $100,000 | | 165,687 |
| | 171,106 |
| | 174,265 |
| | 176,707 |
| | 174,920 |
|
| Core deposits | | 4,156,662 |
| | 4,098,807 |
| | 4,060,269 |
| | 4,015,942 |
| | 4,017,049 |
|
| | | | | | | | | | | |
| Government time deposits | | 552,470 |
| | 574,825 |
| | 600,572 |
| | 631,293 |
| | 696,349 |
|
| Other time deposits $100,000 to $250,000 | | 103,959 |
| | 105,382 |
| | 107,051 |
| | 106,783 |
| | 104,339 |
|
| Other time deposits greater than $250,000 | | 224,568 |
| | 197,835 |
| | 180,236 |
| | 192,472 |
| | 185,943 |
|
| Total time deposits $100,000 and over | | 880,997 |
| | 878,042 |
| | 887,859 |
| | 930,548 |
| | 986,631 |
|
| Total deposits | | $ | 5,037,659 |
| | $ | 4,976,849 |
| | $ | 4,948,128 |
| | $ | 4,946,490 |
| | $ | 5,003,680 |
|
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Nonperforming Assets, Past Due and Restructured Loans | |
| (Unaudited) | TABLE 9 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, |
| (Dollars in thousands) | | 2019 | | 2019 | | 2019 | | 2018 | | 2018 |
| Nonaccrual loans (including loans held for sale): | | | | | | | | | | |
| Real estate: | | | | | | | | | | |
| Residential mortgage | | $ | 799 |
| | $ | 738 |
| | $ | 2,492 |
| | $ | 2,048 |
| | $ | 2,197 |
|
| Home equity | | 95 |
| | 244 |
| | 570 |
| | 275 |
| | 415 |
|
| Total nonaccrual loans | | 894 |
| | 982 |
| | 3,062 |
| | 2,323 |
| | 2,612 |
|
| | | | | | | | | | | |
| Other real estate owned ("OREO"): | | |
| | |
| | |
| | |
| | |
|
| Real estate: | | | | | | | | |
| | |
|
| Residential mortgage | | 302 |
| | 276 |
| | 276 |
| | 414 |
| | 414 |
|
| Home equity | | 164 |
| | — |
| | — |
| | — |
| | — |
|
| Total OREO | | 466 |
| | 276 |
| | 276 |
| | 414 |
| | 414 |
|
| Total nonperforming assets ("NPAs") | | 1,360 |
| | 1,258 |
| | 3,338 |
| | 2,737 |
| | 3,026 |
|
| | | | | | | | | | | |
| Loans delinquent for 90 days or more still accruing interest: | | |
| | |
| | |
| | |
| | |
|
| Home equity | | — |
| | — |
| | — |
| | 298 |
| | — |
|
| Consumer | | 235 |
| | 267 |
| | 159 |
| | 238 |
| | 333 |
|
| Total loans delinquent for 90 days or more still accruing interest | | 235 |
| | 267 |
| | 159 |
| | 536 |
| | 333 |
|
| | | | | | | | | | | |
| Restructured loans still accruing interest: | | |
| | |
| | |
| | |
| | |
|
| Commercial, financial and agricultural | | 157 |
| | 178 |
| | 199 |
| | 220 |
| | 388 |
|
| Real estate: | | | | | | | | |
| | |
|
| Construction | | — |
| | — |
| | 2,194 |
| | 2,273 |
| | — |
|
| Residential mortgage | | 6,717 |
| | 6,831 |
| | 7,141 |
| | 8,026 |
| | 9,747 |
|
| Home equity | | — |
| | — |
| | — |
| | — |
| | — |
|
| Commercial mortgage | | 1,985 |
| | 2,097 |
| | 2,222 |
| | 2,348 |
| | 1,145 |
|
| Total restructured loans still accruing interest | | 8,859 |
| | 9,106 |
| | 11,756 |
| | 12,867 |
| | 11,280 |
|
| Total NPAs and loans delinquent for 90 days or more and restructured loans still accruing interest | | $ | 10,454 |
| | $ | 10,631 |
| | $ | 15,253 |
| | $ | 16,140 |
| | $ | 14,639 |
|
| | | | | | | | | | | |
| Total nonaccrual loans as a percentage of loans and leases | | 0.02 | % | | 0.02 | % | | 0.07 | % | | 0.06 | % | | 0.07 | % |
| Total NPAs as a percentage of loans and leases and OREO | | 0.03 | % | | 0.03 | % | | 0.08 | % | | 0.07 | % | | 0.08 | % |
| Total NPAs and loans delinquent for 90 days or more still accruing interest as a percentage of loans and leases and OREO | | 0.04 | % | | 0.04 | % | | 0.09 | % | | 0.08 | % | | 0.08 | % |
| Total NPAs and loans delinquent for 90 days or more and restructured loans still accruing interest as a percentage of loans and leases and OREO | | 0.24 | % | | 0.25 | % | | 0.37 | % | | 0.40 | % | | 0.37 | % |
| | | | | | | | | | | |
| Quarter-to-quarter changes in NPAs: | | | | |
| | |
| | |
| | |
|
| Balance at beginning of quarter | | $ | 1,258 |
| | $ | 3,338 |
| | $ | 2,737 |
| | $ | 3,026 |
| | $ | 3,509 |
|
| Additions | | 112 |
| | — |
| | 810 |
| | — |
| | — |
|
| Reductions: | | | | | | | | |
| | |
|
| Payments | | (51 | ) | | (2,055 | ) | | (71 | ) | | (154 | ) | | (121 | ) |
| Return to accrual status | | (2 | ) | | (25 | ) | | — |
| | (135 | ) | | (181 | ) |
| Charge-offs, valuation and other adjustments | | 43 |
| | — |
| | (138 | ) | | — |
| | (181 | ) |
| Total reductions | | (10 | ) | | (2,080 | ) | | (209 | ) | | (289 | ) | | (483 | ) |
| Balance at end of quarter | | $ | 1,360 |
| | $ | 1,258 |
| | $ | 3,338 |
| | $ | 2,737 |
| | $ | 3,026 |
|
|
| |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |
| Allowance for Loan and Lease Losses | |
| (Unaudited) | TABLE 10 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | | September 30, |
| (Dollars in thousands) | | 2019 | | 2019 | | 2019 | | 2018 | | 2018 | | 2019 | | 2018 |
| Allowance for loan and lease losses: | | |
| | |
| | | | | | |
| | |
| | |
|
| Balance at beginning of period | | $ | 48,267 |
| | $ | 47,267 |
| | $ | 47,916 |
| | $ | 46,826 |
| | $ | 48,181 |
| | $ | 47,916 |
| | $ | 50,001 |
|
| | | | | | | | | | | | | | | |
| Provision (credit) for loan and lease losses | | 1,532 |
| | 1,404 |
| | 1,283 |
| | (1,386 | ) | | (59 | ) | | 4,219 |
| | 262 |
|
| | | | | | | | | | | | | | | |
| Charge-offs: | | | | | | | | | | | | |
| | |
| Commercial, financial and agricultural | | 797 |
| | 839 |
| | 463 |
| | 881 |
| | 731 |
| | 2,099 |
| | 1,971 |
|
| Real estate: | | | | | | | | | | | | | | |
| Home equity | | 5 |
| | — |
| | — |
| | — |
| | — |
| | 5 |
| | — |
|
| Consumer | | 1,832 |
| | 1,459 |
| | 2,251 |
| | 1,899 |
| | 1,762 |
| | 5,542 |
| | 5,424 |
|
| Total charge-offs | | 2,634 |
| | 2,298 |
| | 2,714 |
| | 2,780 |
| | 2,493 |
| | 7,646 |
| | 7,395 |
|
| | | | | | | | | | | | | | | |
| Recoveries: | | |
| | |
| | |
| | | | | | |
| | |
|
| Commercial, financial and agricultural | | 362 |
| | 315 |
| | 233 |
| | 186 |
| | 578 |
| | 910 |
| | 1,017 |
|
| Real estate: | | | | | | | | | | | | | | |
| Construction | | 6 |
| | 592 |
| | 6 |
| | 4,554 |
| | 6 |
| | 604 |
| | 1,205 |
|
| Residential mortgage | | 104 |
| | 372 |
| | 22 |
| | 106 |
| | 51 |
| | 498 |
| | 98 |
|
| Home equity | | 24 |
| | 9 |
| | 9 |
| | 9 |
| | 6 |
| | 42 |
| | 18 |
|
| Commercial mortgage | | — |
| | 25 |
| | — |
| | — |
| | 8 |
| | 25 |
| | 52 |
|
| Consumer | | 506 |
| | 581 |
| | 512 |
| | 401 |
| | 548 |
| | 1,599 |
| | 1,568 |
|
| Total recoveries | | 1,002 |
| | 1,894 |
| | 782 |
| | 5,256 |
| | 1,197 |
| | 3,678 |
| | 3,958 |
|
| Net charge-offs (recoveries) | | 1,632 |
| | 404 |
| | 1,932 |
| | (2,476 | ) | | 1,296 |
| | 3,968 |
| | 3,437 |
|
| Balance at end of period | | $ | 48,167 |
| | $ | 48,267 |
| | $ | 47,267 |
| | $ | 47,916 |
| | $ | 46,826 |
| | $ | 48,167 |
| | $ | 46,826 |
|
| | | | | | | | | | | | | | | |
| Average loans and leases, net of deferred costs | | $ | 4,293,455 |
| | $ | 4,171,558 |
| | $ | 4,083,791 |
| | $ | 4,022,376 |
| | $ | 3,941,511 |
| | $ | 4,183,703 |
| | $ | 3,856,420 |
|
| | | | | | | | | | | | | | | |
| Annualized ratio of net charge-offs to average loans and leases | | 0.15 | % | | 0.04 | % | | 0.19 | % | | (0.25 | )% | | 0.13 | % | | 0.13 | % | | 0.12 | % |
| | | | | | | | | | | | | | | |
| Ratio of allowance for loan and lease losses to loans and leases | | 1.10 | % | | 1.14 | % | | 1.15 | % | | 1.17 | % | | 1.18 | % | | 1.10 | % | | 1.18 | % |
