Central Pacific Financial (CPF) 10-Q 3 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 29, 2015
Document and Entity Information
Entity Registrant Name	CENTRAL PACIFIC FINANCIAL CORP
Entity Central Index Key	701,347
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		31,359,533
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets
Cash and due from banks	$ 66,715	$ 72,316
Interest-bearing deposits in other banks	14,775	13,691
Investment securities:
Available for sale, at fair value	1,274,312	1,229,018
Held to maturity, at amortized cost (fair value of $259,150 at June 30, 2015 and $235,597 at December 31, 2014)	262,778	238,287
Total investment securities	1,537,090	1,467,305
Loans held for sale	22,917	9,683
Loans and leases	3,006,055	2,932,198
Allowance for loan and lease losses	(66,924)	(74,040)
Net loans and leases	2,939,131	2,858,158
Premises and equipment, net	47,681	49,214
Accrued interest receivable	14,021	13,584
Investment in unconsolidated subsidiaries	6,720	7,246
Other real estate	5,278	2,948
Other intangible assets	27,278	29,697
Bank-owned life insurance	153,015	152,283
Federal Home Loan Bank stock	12,129	43,932
Other assets	121,101	132,930
Total assets	4,967,851	4,852,987
Deposits:
Noninterest-bearing demand	1,080,428	1,034,146
Interest-bearing demand	807,851	788,272
Savings and money market	1,261,180	1,242,598
Time	1,032,863	1,045,284
Total deposits	4,182,322	4,110,300
Short-term borrowings	157,000	38,000
Long-term debt	92,785	92,785
Other liabilities	46,897	43,861
Total liabilities	$ 4,479,004	$ 4,284,946
Equity:
Preferred stock, no par value, authorized 1,100,000 shares, issued and outstanding none at June 30, 2015 and December 31, 2014, respectively
Common stock, no par value, authorized 185,000,000 shares, issued and outstanding 31,501,633 and 35,233,674 shares at June 30, 2015 and December 31, 2014, respectively	$ 552,527	$ 642,205
Surplus	79,373	79,716
Accumulated deficit	(142,267)	(157,039)
Accumulated other comprehensive income (loss)	(786)	3,159
Total equity	488,847	568,041
Total liabilities and equity	$ 4,967,851	$ 4,852,987

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Held to maturity, fair value (in dollars)	$ 259,150	$ 235,597
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, authorized shares	1,100,000	1,100,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized shares	185,000,000	185,000,000
Common stock, issued shares	31,501,633	35,233,674
Common stock, outstanding shares	31,501,633	35,233,674

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Interest income:
Interest and fees on loans and leases	$ 29,572	$ 28,040	$ 58,174	$ 54,923
Interest and dividends on investment securities:
Taxable interest	8,277	8,476	16,427	17,972
Tax-exempt interest	1,010	1,000	2,008	1,994
Dividends	8	1	17	2
Interest on deposits in other banks	11	8	22	15
Dividends on Federal Home Loan Bank stock	18	11	29	23
Total interest income	38,896	37,536	76,677	74,929
Interest on deposits:
Demand	99	91	194	181
Savings and money market	225	223	448	447
Time	549	621	1,097	1,251
Interest on short-term borrowings	79	55	122	72
Interest on long-term debt	650	640	1,287	1,276
Total interest expense	1,602	1,630	3,148	3,227
Net interest income	37,294	35,906	73,529	71,702
Provision (credit) for loan and lease losses	(7,319)	1,995	(10,066)	679
Net interest income after credit for loan and lease losses	44,613	33,911	83,595	71,023
Other operating income:
Service charges on deposit accounts	1,915	1,989	3,883	3,982
Loan servicing fees	1,427	1,448	2,850	2,892
Other service charges and fees	2,781	3,083	5,886	6,026
Income from fiduciary activities	830	828	1,664	1,890
Equity in earnings of unconsolidated subsidiaries	229	359	325	411
Fees on foreign exchange	98	119	226	233
Investment securities gains (losses)	(1,866)	240	(1,866)	240
Income from bank-owned life insurance	461	766	1,135	1,436
Loan placement fees	225	178	372	321
Net gain on sales of residential loans	1,630	1,227	3,224	2,466
Net gain on sales of foreclosed assets	94	582	127	744
Other	300	1,185	1,488	1,507
Total other operating income	8,124	12,004	19,314	22,148
Other operating expense:
Salaries and employee benefits	15,176	16,550	32,341	33,984
Net occupancy	3,403	3,734	6,904	7,324
Equipment	933	945	1,842	1,741
Amortization of other intangible assets	1,559	1,318	3,664	2,558
Communication expense	942	874	1,766	1,768
Legal and professional services	1,642	2,228	3,861	4,040
Computer software expense	2,382	1,575	4,478	2,933
Advertising expense	449	678	1,084	1,364
Foreclosed asset expense	257	(17)	329	88
Other	5,715	5,003	10,207	9,018
Total other operating expense	32,458	32,888	66,476	64,818
Income before income taxes	20,279	13,027	36,433	28,353
Income tax expense	7,944	3,877	13,703	9,395
Net income	$ 12,335	$ 9,150	$ 22,730	$ 18,958
Per common share data:
Basic earnings per share (in dollars per share)	$ 0.39	$ 0.25	$ 0.69	$ 0.49
Diluted earnings per share (in dollars per share)	0.39	0.25	0.68	0.48
Cash dividends declared (in dollars per share)	$ 0.12	$ 0.08	$ 0.24	$ 0.16
Shares used in computation:
Basic shares (in shares)	31,525	36,117	33,167	39,000
Diluted shares (in shares)	31,953	36,656	33,588	39,405

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 12,335	$ 9,150	$ 22,730	$ 18,958
Other comprehensive income (loss), net of tax
Net change in unrealized gain (loss) on investment securities	(11,370)	10,310	(4,461)	19,886
Minimum pension liability adjustment	256	190	516	377
Other comprehensive income (loss), net of tax	(11,114)	10,500	(3,945)	20,263
Comprehensive income	$ 1,221	$ 19,650	$ 18,785	$ 39,221

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Common shares outstanding	Common Stock	Surplus	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Non-Controlling Interests	Total
Balance at Dec. 31, 2013		$ 784,547	$ 75,498	$ (184,087)	$ (15,845)	$ 61	$ 660,174
Balance (in shares) at Dec. 31, 2013	42,107,633
Increase (Decrease) in Shareholders' Equity
Net income				18,958			18,958
Other comprehensive income					20,263		20,263
Cash dividends ($0.24 and $0.16 per share) for June 30, 2015 and 2014 respectively				(6,251)			(6,251)
8,159 and 1,118 net shares of common stock sold by directors' deferred compensation plan for the June 30, 2015 and June 30, 2014 respectively		(11)					(11)
3,950,781 and 6,369,266 shares of common stock repurchased and other related costs for the June 30, 2015 and June 30, 2014 respectively		(129,391)					$ (129,391)
Shares of common stock repurchased	(6,369,266)						6,369,266
Share-based compensation		74	813				$ 887
Share-based compensation (in shares)	162,713
Non-controlling interests						(61)	(61)
Balance at Jun. 30, 2014		655,219	76,311	(171,380)	4,418		564,568
Balance (in shares) at Jun. 30, 2014	35,901,080
Balance at Dec. 31, 2013		$ 784,547	75,498	(184,087)	(15,845)	$ 61	660,174
Balance (in shares) at Dec. 31, 2013	42,107,633
Increase (Decrease) in Shareholders' Equity
Shares of common stock repurchased		857,554
Balance at Dec. 31, 2014		$ 642,205	79,716	(157,039)	3,159		$ 568,041
Balance (in shares) at Dec. 31, 2014	35,233,674						35,233,674
Increase (Decrease) in Shareholders' Equity
Net income				22,730			$ 22,730
Other comprehensive income					(3,945)		(3,945)
Cash dividends ($0.24 and $0.16 per share) for June 30, 2015 and 2014 respectively				(7,958)			(7,958)
8,159 and 1,118 net shares of common stock sold by directors' deferred compensation plan for the June 30, 2015 and June 30, 2014 respectively		(154)					(154)
3,950,781 and 6,369,266 shares of common stock repurchased and other related costs for the June 30, 2015 and June 30, 2014 respectively		(89,524)					$ (89,524)
Shares of common stock repurchased	(3,950,781)						3,950,781
Share-based compensation			(343)				$ (343)
Share-based compensation (in shares)	218,740
Balance at Jun. 30, 2015		$ 552,527	$ 79,373	$ (142,267)	$ (786)		$ 488,847
Balance (in shares) at Jun. 30, 2015	31,501,633						31,501,633

CONSOLIDATED STATEMENTS OF CHA7

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Cash dividends (in dollars per share)	$ 0.24	$ 0.16
Common stock (purchased) sold by directors' deferred compensation plan (in net shares)	8,159	1,118
Shares of common stock repurchased	3,950,781	6,369,266

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 22,730	$ 18,958
Adjustments to reconcile net income to net cash provided by operating activities:
Provision (credit) for loan and lease losses	(10,066)	679
Depreciation and amortization	2,954	2,909
Write down of other real estate, net of gain on sale	140	(457)
Amortization of other intangible assets	3,664	2,558
Net amortization of investment securities	4,584	4,160
Share-based compensation	(343)	813
Net (gain) loss on investment securities	1,866	(240)
Net gain on sales of residential loans	(3,224)	(2,466)
Proceeds from sales of loans held for sale	201,059	177,204
Originations of loans held for sale	(211,071)	(170,832)
Equity in earnings of unconsolidated subsidiaries	(325)	(411)
Increase in cash surrender value of bank-owned life insurance	(1,455)	(1,638)
Deferred income taxes	12,853	9,438
Net change in other assets and liabilities	4,206	(5,119)
Net cash provided by operating activities	27,572	35,556
Cash flows from investing activities:
Proceeds from maturities of and calls on investment securities available for sale	81,536	66,804
Proceeds from sales of investment securities available for sale	117,496	162,470
Purchases of investment securities available for sale	(257,793)	(18,989)
Proceeds from maturities of and calls on investment securities held to maturity	12,159	7,098
Purchases of investment securities held to maturity	(37,043)	(2,443)
Net loan originations	(54,491)	(143,303)
Purchase of loan portfolio	(28,109)	(22,690)
Proceeds from sales of loans originated for investment	6,658
Proceeds from sale of other real estate	2,567	1,884
Proceeds from bank-owned life insurance	723
Purchases of premises and equipment	(1,421)	(2,573)
Net return of capital from unconsolidated subsidiaries	286	862
Net Proceeds from redemption of FHLB stock	31,803	1,182
Net cash provided by (used in) investing activities	(125,629)	50,302
Cash flows from financing activities:
Net increase in deposits	72,022	66,405
Repayments of long-term debt		(9)
Net increase in short-term borrowings	119,000	20,985
Cash dividends paid on common stock	(7,958)	(6,251)
Repurchases of common stock and other related costs	(89,524)	(129,391)
Net proceeds from issuance of common stock and stock option exercises		74
Net cash provided by (used in) financing activities	93,540	(48,187)
Net increase (decrease) in cash and cash equivalents	(4,517)	37,671
Cash and cash equivalents at beginning of period	86,007	49,348
Cash and cash equivalents at end of period	81,490	87,019
Cash paid during the period for:
Interest	3,239	3,283
Income taxes	880
Cash received during the period for:
Income taxes		79
Supplemental disclosure of noncash investing and financing activities:
Net change in common stock held by directors' deferred compensation plan	154	11
Net reclassification of loans to other real estate	5,037	$ 1,511
Net transfer of loans to loans held for sale	$ 6,648

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2015
BASIS OF PRESENTATION
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the “Company,” “we,” “us” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company’s consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2014. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. Certain prior period amounts in the consolidated financial statements and the notes thereto have been reclassified to conform to the current period presentation. Such reclassifications had no effect on net income or shareholders’ equity for any periods presented.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2015
RECENT ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS	2. RECENT ACCOUNTING PRONOUNCEMENTS In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-01, “Investments — Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects.” In January 2014, the FASB issued ASU 2014-04, “Receivables — Troubled Debt Restructurings by Creditors — Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” In June 2014, the FASB issued ASU 2014-11, “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” In August 2014, the FASB issued ASU 2014-14, “Receivables — Troubled Debt Restructurings by Creditors Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.”

INVESTMENT SECURITIES

INVESTMENT SECURITIES	6 Months Ended
	Jun. 30, 2015
INVESTMENT SECURITIES.
INVESTMENT SECURITIES	3. INVESTMENT SECURITIES A summary of available for sale and held to maturity investment securities are as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) At June 30, 2015: Held to Maturity: Mortgage-backed securities: Residential - U.S. Government sponsored entities $ 166,200 $ 111 $ (3,081 ) $ 163,230 Commercial - U.S. Government sponsored entities 96,578 — (658 ) 95,920 Total $ 262,778 $ 111 $ (3,739 ) $ 259,150 Available for Sale: Debt securities: States and political subdivisions $ 188,899 $ 2,169 $ (2,811 ) $ 188,257 Corporate securities 98,454 1,262 (154 ) 99,562 Mortgage-backed securities: Residential - U.S. Government sponsored entities 776,223 7,559 (5,715 ) 778,067 Residential - Non-government agencies 69,603 1,273 (519 ) 70,357 Commercial - Non-government agencies 135,535 2,566 (950 ) 137,151 Other 817 101 — 918 Total $ 1,269,531 $ 14,930 $ (10,149 ) $ 1,274,312 At December 31, 2014: Held to Maturity: Mortgage-backed securities: Residential - U.S. Government sponsored entities $ 140,741 $ 196 $ (2,150 ) $ 138,787 Commercial - U.S. Government sponsored entities 97,546 — (736 ) 96,810 Total $ 238,287 $ 196 $ (2,886 ) $ 235,597 Available for Sale: Debt securities: States and political subdivisions $ 191,280 $ 2,054 $ (1,689 ) $ 191,645 Corporate securities 99,237 1,492 (125 ) 100,604 Mortgage-backed securities: Residential - U.S. Government sponsored entities 744,527 11,064 (4,033 ) 751,558 Residential - Non-government agencies 45,275 1,510 (92 ) 46,693 Commercial - Non-government agencies 135,630 2,946 (935 ) 137,641 Other 757 120 — 877 Total $ 1,216,706 $ 19,186 $ (6,874 ) $ 1,229,018 The amortized cost and estimated fair value of investment securities at June 30, 2015 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2015 Amortized Estimated Fair (Dollars in thousands) Held to Maturity Mortage-backed securities: Residential - U.S. Government sponsored entities $ 166,200 $ 163,230 Commercial - U.S. Government sponsored entities 96,578 95,920 Total $ 262,778 $ 259,150 Available for Sale Due in one year or less $ 2,567 $ 2,660 Due after one year through five years 76,206 77,321 Due after five years through ten years 96,501 96,678 Due after ten years 112,079 111,160 Mortage-backed securities: Residential - U.S. Government sponsored entities 776,223 778,067 Residential - Non-government agencies 69,603 70,357 Commercial - Non-government agencies 135,535 137,151 Other 817 918 Total $ 1,269,531 $ 1,274,312 During the three months ended June 30, 2015, we sold certain available for sale investment securities for gross proceeds of $117.5 million. Gross realized losses on the sales of the available for sale investment securities were $1.9 million during the three months ended June 30, 2015. We did not sell any available for sale securities during the first quarter of 2015. The specific identification method was used as the basis for determining the cost of all securities sold. During the three months ended June 30, 2014, we sold certain available for sale investment securities for gross proceeds of $162.5 million. Gross realized gains and losses on the sales of the available for sale investment securities were $0.9 million and $0.7 million, respectively, during the three months ended June 30, 2014. We did not sell any available for sale securities during the first quarter of 2014. The specific identification method was used as the basis for determining the cost of all securities sold. Investment securities of $959.0 million and $900.5 million at June 30, 2015 and December 31, 2014, respectively, were pledged to secure public funds on deposit and other long-term and short-term borrowings. Provided below is a summary of the 216 and 195 investment securities which were in an unrealized loss position at June 30, 2015 and December 31, 2014, respectively. Less than 12 months 12 months or longer Total Unrealized Unrealized Unrealized Description of Securities Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) At June 30, 2015: Debt securities: States and political subdivisions $ 66,678 $ (1,558 ) $ 22,780 $ (1,253 ) $ 89,458 $ (2,811 ) Corporate securities 26,349 (154 ) — — 26,349 (154 ) Mortgage-backed securities: Residential - U.S. Government sponsored entities 464,847 (6,464 ) 87,126 (2,332 ) 551,973 (8,796 ) Residential - Non-government agencies 30,478 (519 ) — — 30,478 (519 ) Commercial - U.S. Government sponsored entities 95,920 (658 ) — — 95,920 (658 ) Commercial - Non-government agencies 57,620 (794 ) 4,653 (156 ) 62,273 (950 ) Total temporarily impaired securities $ 741,892 $ (10,147 ) $ 114,559 $ (3,741 ) $ 856,451 $ (13,888 ) At December 31, 2014: Debt securities: States and political subdivisions $ 23,591 $ (145 ) $ 68,622 $ (1,544 ) $ 92,213 $ (1,689 ) Corporate securities 23,938 (125 ) — — 23,938 (125 ) Mortgage-backed securities: Residential - U.S. Government sponsored entities 107,755 (487 ) 318,571 (5,696 ) 426,326 (6,183 ) Residential - Non-government agencies 15,895 (92 ) — — 15,895 (92 ) Commercial - U.S. Government sponsored entities 11,455 (34 ) 85,355 (702 ) 96,810 (736 ) Commercial - Non-government agencies 4,962 (8 ) 47,539 (927 ) 52,501 (935 ) Total temporarily impaired securities $ 187,596 $ (891 ) $ 520,087 $ (8,869 ) $ 707,683 $ (9,760 ) Other-Than-Temporary Impairment (“OTTI”) Unrealized losses for all investment securities are reviewed to determine whether the losses are deemed “other-than-temporary.” Investment securities are evaluated for OTTI on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation to determine whether a decline in their value below amortized cost is other-than-temporary. In conducting this assessment, we evaluate a number of factors including, but not limited to: · · · · · · · The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value are not necessarily favorable, or that there is a general lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other-than-temporary, the value of the security is reduced and a corresponding charge to earnings is recognized for anticipated credit losses. Because we have no intent to sell securities in an unrealized loss position and it is not more likely than not that we will be required to sell such securities before recovery of its amortized cost basis, we do not consider our investments to be other-than-temporarily impaired.

LOANS AND LEASES

LOANS AND LEASES	6 Months Ended
	Jun. 30, 2015
LOANS AND LEASES
LOANS AND LEASES	4. LOANS AND LEASES Loans and leases, excluding loans held for sale, consisted of the following: June 30, December 31, 2015 2014 (Dollars in thousands) Commercial, financial and agricultural $ 499,078 $ 463,070 Real estate: Construction 83,833 115,023 Mortgage - residential 1,349,594 1,280,089 Mortgage - commercial 695,995 704,099 Consumer 373,588 365,662 Leases 2,589 3,140 3,004,677 2,931,083 Net deferred costs 1,378 1,115 Total loans and leases $ 3,006,055 $ 2,932,198 During the six months ended June 30, 2015, we transferred the collateral in six portfolio loans with a carrying value of $1.6 million to other real estate and two portfolio loans to a single borrower with a carrying value of $6.6 million to the held-for-sale category. In June 2015, we purchased participation interest in auto loans totaling $28.1 million, which included a $1.0 million premium over the $27.1 million outstanding balance. At the time of purchase, the auto loans had a weighted average remaining term of 79 months. No portfolio loans were sold during the six months ended June 30, 2015. During the six months ended June 30, 2014, we transferred three loans with a carrying value of $1.5 million to other real estate. We did not transfer any portfolio loans to the held-for-sale category and no portfolio loans were sold during the six months ended June 30, 2014. In May 2014, we purchased participation interest in auto loans totaling $11.2 million, which included a $0.3 million premium over the $10.9 million outstanding balance. At the time of purchase, the auto loans had a weighted average remaining term of 71 months. In May 2014, we also purchased participation interest in student loans totaling $11.5 million, which represented the outstanding balance at the time of purchase. At the time of purchase, the student loans had a weighted average remaining term of 123 months. Impaired Loans The following table presents by class, the balance in the allowance for loan and lease losses and the recorded investment in loans and leases based on the Company’s impairment measurement method as of June 30, 2015 and December 31, 2014: Commercial, Real Estate Financial & Construction Mortgage -Residential Mortgage -Commercial Consumer Leases Total (Dollars in thousands) June 30, 2015 Allowance for loan and lease losses: Ending balance attributable to loans: Individually evaluated for impairment $ 58 $ — $ — $ — $ — $ — $ 58 Collectively evaluated for impairment 7,511 10,670 17,846 20,008 7,330 1 63,366 7,569 10,670 17,846 20,008 7,330 1 63,424 Unallocated 3,500 Total ending balance $ 7,569 $ 10,670 $ 17,846 $ 20,008 $ 7,330 $ 1 $ 66,924 Loans and leases: Individually evaluated for impairment $ 3,513 $ 4,474 $ 26,654 $ 14,850 $ — $ — $ 49,491 Collectively evaluated for impairment 495,565 79,359 1,322,940 681,145 373,588 2,589 2,955,186 499,078 83,833 1,349,594 695,995 373,588 2,589 3,004,677 Net deferred costs (income) 523 (278 ) 2,368 (802 ) (433 ) — 1,378 Total ending balance $ 499,601 $ 83,555 $ 1,351,962 $ 695,193 $ 373,155 $ 2,589 $ 3,006,055 December 31, 2014 Allowance for loan and lease losses: Ending balance attributable to loans: Individually evaluated for impairment $ 1,533 $ — $ — $ — $ — $ — $ 1,533 Collectively evaluated for impairment 7,421 14,969 17,927 20,869 7,314 7 68,507 8,954 14,969 17,927 20,869 7,314 7 70,040 Unallocated 4,000 Total ending balance $ 8,954 $ 14,969 $ 17,927 $ 20,869 $ 7,314 $ 7 $ 74,040 Loans and leases: Individually evaluated for impairment $ 13,369 $ 4,888 $ 30,893 $ 23,126 $ — $ — $ 72,276 Collectively evaluated for impairment 449,701 110,135 1,249,196 680,973 365,662 3,140 2,858,807 463,070 115,023 1,280,089 704,099 365,662 3,140 2,931,083 Net deferred costs (income) 693 (469 ) 2,235 (826 ) (518 ) — 1,115 Total ending balance $ 463,763 $ 114,554 $ 1,282,324 $ 703,273 $ 365,144 $ 3,140 $ 2,932,198 The following table presents by class, impaired loans as of June 30, 2015 and December 31, 2014: Unpaid Principal Recorded Allowance (Dollars in thousands) June 30, 2015 Impaired loans with no related allowance recorded: Commercial, financial & agricultural $ 1,303 $ 1,192 $ — Real estate: Construction 10,820 4,474 — Mortgage - residential 28,967 26,654 — Mortgage - commercial 17,967 14,850 — Total impaired loans with no related allowance recorded 59,057 47,170 — Impaired loans with an allowance recorded: Commercial, financial & agricultural 3,789 2,321 58 Total impaired loans with an allowance recorded 3,789 2,321 58 Total $ 62,846 $ 49,491 $ 58 December 31, 2014 Impaired loans with no related allowance recorded: Commercial, financial & agricultural $ 738 $ 738 $ — Real estate: Construction 11,275 4,888 — Mortgage - residential 34,131 30,893 — Mortgage - commercial 30,249 23,126 — Total impaired loans with no related allowance recorded 76,393 59,645 — Impaired loans with an allowance recorded: Commercial, financial & agricultural 16,630 12,631 1,533 Total impaired loans with an allowance recorded 16,630 12,631 1,533 Total $ 93,023 $ 72,276 $ 1,533 The following table presents by class, the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Average Interest Income Average Interest Income Average Interest Income Average Interest Income (Dollars in thousands) Commercial, financial & agricultural $ 6,911 $ 5 $ 17,300 $ 6 $ 10,278 $ 10 $ 12,858 $ 11 Real estate: Construction 4,518 26 5,225 44 4,608 112 6,024 76 Mortgage - residential 27,312 (7 ) 33,419 274 28,134 (6 ) 34,913 437 Mortgage - commercial 16,438 175 16,201 76 19,595 339 16,123 115 Total $ 55,179 $ 199 $ 72,145 $ 400 $ 62,615 $ 455 $ 69,918 $ 639 The Company had $3.0 million of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure at June 30, 2015. Aging Analysis of Accruing and Non-Accruing Loans and Leases For all loan types, the Company determines delinquency status by considering the number of days full payments required by the contractual terms of the loan are past due. The following table presents by class, the aging of the recorded investment in past due loans and leases as of June 30, 2015 and December 31, 2014: Accruing Accruing Accruing Loans Nonaccrual Total Loans and Total (Dollars in thousands) June 30, 2015 Commercial, financial & agricultural $ 128 $ 52 $ — $ 3,175 $ 3,355 $ 496,246 $ 499,601 Real estate: Construction — — — 133 133 83,422 83,555 Mortgage - residential 724 183 — 10,032 10,939 1,341,023 1,351,962 Mortgage - commercial — — — 13,490 13,490 681,703 695,193 Consumer 1,236 431 45 — 1,712 371,443 373,155 Leases — — — — — 2,589 2,589 Total $ 2,088 $ 666 $ 45 $ 26,830 $ 29,629 $ 2,976,426 $ 3,006,055 December 31, 2014 Commercial, financial & agricultural $ 183 $ 85 $ — $ 13,007 $ 13,275 $ 450,488 $ 463,763 Real estate: Construction — — — 310 310 114,244 114,554 Mortgage - residential 3,078 379 — 13,048 16,505 1,265,819 1,282,324 Mortgage - commercial 68 — — 12,722 12,790 690,483 703,273 Consumer 1,500 417 77 — 1,994 363,150 365,144 Leases — — — — — 3,140 3,140 Total $ 4,829 $ 881 $ 77 $ 39,087 $ 44,874 $ 2,887,324 $ 2,932,198 Modifications Troubled debt restructurings (“TDRs”) included in nonperforming assets at June 30, 2015 consisted of 30 Hawaii residential mortgage loans with a combined principal balance of $6.1 million, a Hawaii commercial mortgage loan of $1.0 million, two Hawaii commercial loans with a combined principal balance of $0.9 million, and a Hawaii construction loan of $34 thousand. Concessions made to the original contractual terms of these loans consisted primarily of the deferral of interest and/or principal payments due to deterioration in the borrowers’ financial condition. The principal balances on these TDRs had matured and/or were in default at the time of restructure and we have no commitments to lend additional funds to any of these borrowers. There were $19.0 million of TDRs still accruing interest at June 30, 2015, none of which were more than 90 days delinquent. At December 31, 2014, there were $29.5 million of TDRs still accruing interest, none of which were more than 90 days delinquent. Some loans modified in a TDR may already be on nonaccrual status and partial charge-offs may have already been taken against the outstanding loan balance. Thus, these loans have already been identified as impaired and have already been evaluated under the Company’s allowance for loan and lease losses (the “Allowance”) methodology. As a result, some loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan. The loans modified in a TDR did not have a material effect on our provision for loan and lease losses (the “Provision”) and the Allowance during the three and six months ended June 30, 2015. The following table presents by class, information related to loans modified in a TDR during the three and six months ended June 30, 2015 and 2014. No loans were modified in a TDR during the three months ended June 30, 2014. Number Recorded Increase (Dollars in thousands) Three Months Ended June 30, 2015 Commercial, financial & agricultural 1 $ 535 $ — Six Months Ended June 30, 2015 Commercial, financial & agricultural 1 $ 535 $ — Real estate mortgage - residential 1 964 — Total 2 $ 1,499 $ — Six Months Ended June 30, 2014 Real estate mortgage - residential 9 $ 600 $ — No loans were modified as a TDR within the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2015 and 2014. Credit Quality Indicators The Company categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans and leases as to credit risk. This analysis includes non-homogeneous loans and leases, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Special Mention. Substandard. Doubtful. Loss. Loans and leases not meeting the criteria above are considered to be pass-rated. The following table presents by class and credit indicator, the recorded investment in the Company’s loans and leases as of June 30, 2015 and December 31, 2014: Pass Special Substandard Subtotal Net Deferred Total (Dollars in thousands) June 30, 2015 Commercial, financial & agricultural $ 487,885 $ 4,855 $ 6,338 $ 499,078 $ 523 $ 499,601 Real estate: Construction 81,221 1,640 972 83,833 (278 ) 83,555 Mortgage - residential 1,339,067 — 10,527 1,349,594 2,368 1,351,962 Mortgage - commercial 668,926 4,047 23,022 695,995 (802 ) 695,193 Consumer 373,543 — 45 373,588 (433 ) 373,155 Leases 2,589 — — 2,589 — 2,589 Total $ 2,953,231 $ 10,542 $ 40,904 $ 3,004,677 $ 1,378 $ 3,006,055 December 31, 2014 Commercial, financial & agricultural $ 432,892 $ 14,655 $ 15,523 $ 463,070 $ 693 $ 463,763 Real estate: Construction 111,370 — 3,653 115,023 (469 ) 114,554 Mortgage - residential 1,265,470 352 14,267 1,280,089 2,235 1,282,324 Mortgage - commercial 660,492 10,498 33,109 704,099 (826 ) 703,273 Consumer 365,332 294 36 365,662 (518 ) 365,144 Leases 3,140 — — 3,140 — 3,140 Total $ 2,838,696 $ 25,799 $ 66,588 $ 2,931,083 $ 1,115 $ 2,932,198 In accordance with applicable Interagency Guidance issued by our primary bank regulators, we define subprime borrowers as typically having weakened credit histories that include payment delinquencies and possibly more severe problems such as charge-offs, judgments, and bankruptcies. They may also display reduced repayment capacity as measured by credit scores, debt-to-income ratios, or other criteria that may encompass borrowers with incomplete credit histories. Subprime loans are loans to borrowers displaying one or more of these characteristics at the time of origination or purchase. Such loans have a higher risk of default than loans to prime borrowers. At June 30, 2015 and December 31, 2014, we did not have any loans that we considered to be subprime.

ALLOWANCE FOR LOAN AND LEASE LO

ALLOWANCE FOR LOAN AND LEASE LOSSES	6 Months Ended
	Jun. 30, 2015
ALLOWANCE FOR LOAN AND LEASE LOSSES
ALLOWANCE FOR LOAN AND LEASE LOSSES	5. ALLOWANCE FOR LOAN AND LEASE LOSSES The following table presents by class, the activity in the Allowance for the periods indicated: Commercial, Real estate Financial & Mortgage - Mortgage - Agricultural Construction Residential Commercial Consumer Leases Unallocated Total (Dollars in thousands) Three Months Ended June 30, 2015 Beginning balance $ 8,791 $ 14,305 $ 17,057 $ 20,161 $ 7,119 $ — $ 4,000 $ 71,433 Provision (credit) for loan and lease losses (498 ) (4,099 ) 442 (3,715 ) 1,050 1 (500 ) (7,319 ) 8,293 10,206 17,499 16,446 8,169 1 3,500 64,114 Charge-offs 4,003 — 50 — 1,214 — — 5,267 Recoveries 3,279 464 397 3,562 375 — — 8,077 Net charge-offs (recoveries) 724 (464 ) (347 ) (3,562 ) 839 — — (2,810 ) Ending balance $ 7,569 $ 10,670 $ 17,846 $ 20,008 $ 7,330 $ 1 $ 3,500 $ 66,924 Three Months Ended June 30, 2014 Beginning balance $ 12,786 $ 14,940 $ 17,812 $ 25,925 $ 5,687 $ 12 $ 6,000 $ 83,162 Provision (credit) for loan and lease losses 405 243 959 988 1,402 (2 ) (2,000 ) 1,995 13,191 15,183 18,771 26,913 7,089 10 4,000 85,157 Charge-offs 1,482 — 102 1,041 671 — — 3,296 Recoveries 546 342 529 13 305 3 — 1,738 Net charge-offs (recoveries) 936 (342 ) (427 ) 1,028 366 (3 ) — 1,558 Ending balance $ 12,255 $ 15,525 $ 19,198 $ 25,885 $ 6,723 $ 13 $ 4,000 $ 83,599 Six Months Ended June 30, 2015 Beginning balance $ 8,954 $ 14,969 $ 17,927 $ 20,869 $ 7,314 $ 7 $ 4,000 $ 74,040 Provision (credit) for loan and lease losses (324 ) (4,886 ) (1,902 ) (4,436 ) 1,988 (6 ) (500 ) (10,066 ) 8,630 10,083 16,025 16,433 9,302 1 3,500 63,974 Charge-offs 4,934 — 64 — 3,055 — — 8,053 Recoveries 3,873 587 1,885 3,575 1,083 — — 11,003 Net charge-offs (recoveries) 1,061 (587 ) (1,821 ) (3,575 ) 1,972 — — (2,950 ) Ending balance $ 7,569 $ 10,670 $ 17,846 $ 20,008 $ 7,330 $ 1 $ 3,500 $ 66,924 Six Months Ended June 30, 2014 Beginning balance $ 13,196 $ 2,774 $ 25,272 $ 29,947 $ 6,576 $ 55 $ 6,000 $ 83,820 Provision (credit) for loan and lease losses (538 ) 12,007 (6,558 ) (3,047 ) 854 (39 ) (2,000 ) 679 12,658 14,781 18,714 26,900 7,430 16 4,000 84,499 Charge-offs 1,555 — 139 1,041 1,251 8 — 3,994 Recoveries 1,152 744 623 26 544 5 — 3,094 Net charge-offs (recoveries) 403 (744 ) (484 ) 1,015 707 3 — 900 Ending balance $ 12,255 $ 15,525 $ 19,198 $ 25,885 $ 6,723 $ 13 $ 4,000 $ 83,599 Loans held for sale and other real estate assets are not included in our assessment of the Allowance. Our Provisions were credits of $7.3 million and $10.1 million in the three and six months ended June 30, 2015, respectively, compared to Provisions of $2.0 million and $0.7 million in the three and six months ended June 30, 2014, respectively. In determining the amount of our Allowance, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions, as well as regulatory requirements and input. If our assumptions prove to be incorrect, our current Allowance may not be sufficient to cover future loan losses and we may experience significant increases to our Provision.

SECURITIZATIONS

SECURITIZATIONS	6 Months Ended
	Jun. 30, 2015
SECURITIZATIONS
SECURITIZATIONS	6. SECURITIZATIONS In prior years, we securitized certain residential mortgage loans with a U.S. Government sponsored entity and continue to service the residential mortgage loans. The servicing assets were recorded at their respective fair values at the time of securitization. All unsold mortgage-backed securities from prior securitizations were categorized as available for sale securities and were therefore recorded at their fair values of $3.0 million and $3.5 million at June 30, 2015 and December 31, 2014, respectively. The fair values of these mortgage-backed securities were based on quoted prices of similar instruments in active markets. Unrealized gains of $0.2 million and $0.3 million on unsold mortgage-backed securities were recorded in accumulated other comprehensive income (“AOCI”) at June 30, 2015 and December 31, 2014, respectively.

INVESTMENTS IN UNCONSOLIDATED S

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES	6 Months Ended
	Jun. 30, 2015
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES	7. INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES The components of the Company’s investments in unconsolidated subsidiaries were as follows: June 30, December 31, 2015 2014 (Dollars in thousands) Investments in low income housing tax credit partnerships $ 3,216 $ 3,781 Trust preferred investments 2,792 2,792 Investments in affiliates 596 557 Other 116 116 $ 6,720 $ 7,246 Investments in low income housing tax credit (“LIHTC”) partnerships are accounted for using the cost method. For the three and six months ended June 30, 2015, the Company recognized amortization expense in pre-tax income of $0.3 million and $0.6 million, respectively. For the three and six months ended June 30, 2014, the Company recognized amortization expense in pre-tax income of $0.4 million and $0.8 million, respectively. For the three and six months ended June 30, 2015, the Company recognized $0.3 million and $0.6 million in tax credits associated with our investments in LIHTC partnerships, respectively. For the three months ended June 30, 2014, the Company recognized $0.9 million in tax credits associated with our investments in LIHTC partnerships. The Company did not recognize any tax credits associated with our investments in LIHTC partnerships during the three months ended March 31, 2014.

OTHER INTANGIBLE ASSETS

OTHER INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2015
OTHER INTANGIBLE ASSETS
OTHER INTANGIBLE ASSETS	8. OTHER INTANGIBLE ASSETS Other intangible assets include a core deposit premium and mortgage servicing rights. The following table presents changes in other intangible assets for the six months ended June 30, 2015: Core Mortgage Deposit Servicing Premium Rights Total (Dollars in thousands) Balance, beginning of period $ 10,029 $ 19,668 $ 29,697 Additions — 1,245 1,245 Amortization (1,337 ) (2,327 ) (3,664 ) Balance, end of period $ 8,692 $ 18,586 $ 27,278 Income generated as the result of new mortgage servicing rights is reported as gains on sales of loans and totaled $0.6 million and $1.2 million for the three and six months ended June 30, 2015, respectively, compared to $0.5 million and $0.9 million for the comparable prior year periods. Amortization of mortgage servicing rights was $0.9 million and $2.3 million for the three and six months ended June 30, 2015, respectively, compared to $0.6 million and $1.2 million for the comparable prior year periods. The following table presents the fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights: Six Months Ended June 30, 2015 2014 (Dollars in thousands) Fair market value, beginning of period $ 19,975 $ 21,399 Fair market value, end of period 19,202 20,341 Weighted average discount rate 9.5 % 8.0 % Weighted average prepayment speed assumption 13.8 15.1 The gross carrying value and accumulated amortization related to our intangible assets are presented below: June 30, 2015 December 31, 2014 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Value Amortization Value Value Amortization Value (Dollars in thousands) Core deposit premium $ 44,642 $ (35,950 ) $ 8,692 $ 44,642 $ (34,613 ) $ 10,029 Mortgage servicing rights 56,194 (37,608 ) 18,586 56,687 (37,019 ) 19,668 $ 100,836 $ (73,558 ) $ 27,278 $ 101,329 $ (71,632 ) $ 29,697 Based on the core deposit premium and mortgage servicing rights held as of June 30, 2015, estimated amortization expense for the remainder of fiscal year 2015, the next five succeeding fiscal years and all years thereafter are as follows: Estimated Amortization Expense Core Mortgage Deposit Servicing Premium Rights Total (Dollars in thousands) 2015 (remainder) $ 1,337 $ 1,482 $ 2,819 2016 2,674 2,322 4,996 2017 2,674 1,646 4,320 2018 2,007 1,157 3,164 2019 — 778 778 2020 — 434 434 Thereafter — 10,767 10,767 $ 8,692 $ 18,586 $ 27,278 We perform an impairment assessment of our other intangible assets whenever events or changes in circumstance indicate that the carrying value of those assets may not be recoverable. Our impairment assessments involve, among other valuation methods, the estimation of future cash flows and other methods of determining fair value. Estimating future cash flows and determining fair values is subject to judgment and often involves the use of significant estimates and assumptions. The variability of the factors we use to perform our impairment tests depend on a number of conditions, including the uncertainty about future events and cash flows. All such factors are interdependent and, therefore, do not change in isolation. Accordingly, our accounting estimates may materially change from period to period due to changing market factors.

DERIVATIVES

DERIVATIVES	6 Months Ended
	Jun. 30, 2015
DERIVATIVES.
DERIVATIVES	9. DERIVATIVES We utilize various designated and undesignated derivative financial instruments to reduce our exposure to movements in interest rates including interest rate swaps, interest rate lock commitments and forward sale commitments. We measure all derivatives at fair value on our consolidated balance sheet. In each reporting period, we record the derivative instruments in other assets or other liabilities depending on whether the derivatives are in an asset or liability position. For derivative instruments that are designated as hedging instruments, we record the effective portion of the changes in the fair value of the derivative in AOCI, net of tax, until earnings are affected by the variability of cash flows of the hedged transaction. We immediately recognize the portion of the gain or loss in the fair value of the derivative that represents hedge ineffectiveness in current period earnings. For derivative instruments that are not designated as hedging instruments, changes in the fair value of the derivative are included in current period earnings. Interest Rate Lock and Forward Sale Commitments We enter into interest rate lock commitments on certain mortgage loans that are intended to be sold. To manage interest rate risk on interest rate lock commitments, we also enter into forward loan sale commitments. The interest rate locks and forward loan sale commitments are accounted for as undesignated derivatives and are recorded at their respective fair values in other assets or other liabilities, with changes in fair value recorded in current period earnings. These instruments serve to reduce our exposure to movements in interest rates. At June 30, 2015, we were a party to interest rate lock and forward sale commitments on $34.0 million and $33.5 million of mortgage loans, respectively. The following table presents the location of all assets and liabilities associated with our derivative instruments within the consolidated balance sheets: Asset Derivatives Liability Derivatives Derivatives Not Designated Balance Sheet Fair Value at Fair Value at Fair Value at Fair Value at (Dollars in thousands) Interest rate contracts Other assets / other liabilities $ 906 $ 504 $ 256 $ 122 The following table presents the impact of derivative instruments and their location within the consolidated statements of income: Derivatives Not in Cash Flow Location of Gain (Loss) Amount of Gain (Loss) (Dollars in thousands) Three Months Ended June 30, 2015 Interest rate contracts Other operating income $ (198 ) Three Months Ended June 30, 2014 Interest rate contracts Other operating income 413 Six Months Ended June 30, 2015 Interest rate contracts Other operating income 268 Six Months Ended June 30, 2014 Interest rate contracts Other operating income 353

SHORT-TERM BORROWINGS AND LONG-

SHORT-TERM BORROWINGS AND LONG-TERM DEBT	6 Months Ended
	Jun. 30, 2015
SHORT-TERM BORROWINGS AND LONG-TERM DEBT
SHORT-TERM BORROWINGS AND LONG-TERM DEBT	10. SHORT-TERM BORROWINGS AND LONG-TERM DEBT The bank was a member of the Federal Home Loan Bank of Seattle until its merger with the Federal Home Loan Bank of Des Moines on June 1, 2015. We are now a member of the Federal Home Loan Bank of Des Moines (the “FHLB”) and maintained a $1.2 billion line of credit as of June 30, 2015. Short-term borrowings under this arrangement totaled $157.0 million at June 30, 2015, compared to $38.0 million at December 31, 2014. There were no long-term borrowings under this arrangement at June 30, 2015 and December 31, 2014. FHLB advances outstanding at June 30, 2015 were secured by unencumbered investment securities with a fair value of $0.7 million and certain real estate loans with a carrying value of $1.6 billion in accordance with the collateral provisions of the Advances, Security and Deposit Agreement with the FHLB. At June 30, 2015, $1.0 billion was undrawn under this arrangement. At June 30, 2015 and December 31, 2014, our bank had additional unused borrowings available at the Federal Reserve discount window of $27.5 million and $33.3 million, respectively. As of June 30, 2015 and December 31, 2014, certain commercial and commercial real estate loans with a carrying value totaling $54.3 million and $72.9 million, respectively, were pledged as collateral on our line of credit with the Federal Reserve discount window. The Federal Reserve does not have the right to sell or repledge these loans.

EQUITY

EQUITY	6 Months Ended
	Jun. 30, 2015
EQUITY
EQUITY	11. EQUITY We have generated considerable tax benefits, including net operating loss carry-forwards and federal and state tax credits. Our use of the tax benefits in the future would be significantly limited if we experience an “ownership change” for U.S. federal income tax purposes. In general, an “ownership change” will occur if there is a cumulative increase in the Company’s ownership by “5-percent shareholders” (as defined under U.S. income tax laws) that exceeds 50 percentage points over a rolling three-year period. On November 23, 2010, our Board of Directors declared a dividend of preferred share purchase rights (“Rights”) in respect to our common stock which were issued pursuant to a Tax Benefits Preservation Plan, dated as of November 23, 2010 (the “Tax Benefits Preservation Plan”), between the Company and Wells Fargo Bank, National Association, as rights agent. Each Right represents the right to purchase, upon the terms and subject to the conditions in the Plan, 1/10,000th of a share of our Junior Participating Preferred Stock, Series C, no par value, for $6.00, subject to adjustment. The Tax Benefits Preservation Plan is designed to reduce the likelihood that the Company will experience an ownership change by discouraging any person from becoming a beneficial owner of 4.99% or more of our common stock (a “Threshold Holder”). On January 29, 2014, our Board of Directors approved an amendment to the Tax Benefits Preservation Plan to extend it for up to an additional two years (until February 18, 2016). To further protect our tax benefits, on January 26, 2011, our Board of Directors approved an amendment to our restated articles of incorporation to restrict transfers of our stock if the effect of an attempted transfer would cause the transferee to become a Threshold Holder or to cause the beneficial ownership of a Threshold Holder to increase (the “Protective Charter Amendment”). At our annual meeting of shareholders on April 27, 2011, we proposed the amendment which shareholders approved. On January 29, 2014, our Board of Directors approved an amendment to the Protective Charter Amendment to extend it for up to an additional two years (until May 2, 2016). Our shareholders approved the Protective Charter Amendment on April 25, 2014. There is no guarantee, however, that the Tax Benefits Preservation Plan or the Protective Charter Amendment will prevent the Company from experiencing an ownership change. As a Hawaii state-chartered bank, Central Pacific Bank may only pay dividends to the extent it has retained earnings as defined under Hawaii banking law (“Statutory Retained Earnings”), which differs from GAAP retained earnings. As of June 30, 2015, the bank had Statutory Retained Earnings of $58.7 million. Dividends are payable at the discretion of the Board of Directors and there can be no assurance that the Board of Directors will continue to pay dividends at the same rate, or at all, in the future. Our ability to pay cash dividends to our shareholders is subject to restrictions under federal and Hawaii law, including restrictions imposed by the FRB and covenants set forth in various agreements we are a party to, including covenants set forth in our subordinated debentures. On February 21, 2014, we announced a tender offer to purchase for cash up to $68.8 million in value of shares of our common stock at a price not greater than $21.00 nor less than $18.50 per share (the “Tender Offer”). The Tender Offer expired on March 21, 2014 and 3,369,850 shares of our common stock were properly tendered and not withdrawn at or below the purchase price of $20.20 per share (“Purchase Price”). In addition, 167,572 shares were tendered through notice of guaranteed delivery at or below the Purchase Price. Based on these results, we accepted for purchase 3,405,888 shares, at the Purchase Price for a total cost of $68.8 million, excluding fees and expenses related to the Tender Offer. The Tender Offer closed on March 28, 2014. Due to the oversubscription of the Tender Offer, we accepted for purchase on a pro rata basis approximately 96.6% of the shares properly tendered and not properly withdrawn at or below the Purchase Price by each tendering shareholder, except for tenders of odd lots, which were accepted in full, and except for certain conditional tenders automatically regarded as withdrawn pursuant to the terms of the Tender Offer. On February 20, 2014, we also entered into repurchase agreements (the “Repurchase Agreements”) with each of Carlyle Financial Services Harbor, L.P. (“Carlyle”) and ACMO-CPF, L.L.C. (“Anchorage” and together with Carlyle, the “Lead Investors”), each of whom was the owner of 9,463,095 shares (representing 22.5% of the outstanding shares or 44.9% in the aggregate at that time) of our common stock, pursuant to which we agreed to purchase up to $28.1 million of shares of common stock from each of the Lead Investors at the Purchase Price of the Tender Offer (the “Private Repurchases”) (or an aggregate of $56.2 million of shares). Conditions to the Private Repurchases were satisfied and we purchased 1,391,089 shares from each of Carlyle and Anchorage at the Purchase Price for a total cost of $56.2 million, excluding fees and expenses related to the Private Repurchases. The Private Repurchases closed on April 7, 2014, the eleventh business day following the expiration of the Tender Offer. The completion of the Tender Offer and the Private Repurchases resulted in the aggregate repurchase by us of 6,188,066 shares totaling $125 million, or 14.7% of our issued and outstanding shares of our common stock prior to the completion of the Tender Offer and the Private Repurchases. Upon completion of the Tender Offer and Private Repurchases, we had approximately 35.9 million shares outstanding. On March 26, 2015, the Company, Carlyle and Anchorage (together the “Selling Shareholders”), and Citigroup Global Markets, Inc. (the “Underwriter”) entered into a secondary offering underwriting agreement (the “March 2015 Underwriting Agreement”) pursuant to which the Selling Shareholders agreed to each sell 3,802,694 shares for a total of 7,605,388 shares of CPF common stock, no par value per share, to the Underwriter at a price of $23.01 per common share for a total of approximately $175 million. In connection with the March 2015 Underwriting Agreement, the Company repurchased 3,259,452 shares of its common stock from the Underwriter at a price of $23.01 per share for an aggregate cost of approximately $75 million, excluding fees and expenses. The transactions were consummated on April 1, 2015. The Company did not receive any of the proceeds from the sale of these shares by the Selling Shareholders and no shares were sold by the Company. The Company incurred $0.4 million in costs recorded in other operating expenses related to the secondary offering by the Selling Shareholders. In addition, the Company incurred $0.2 million in costs recorded in equity related to the repurchase of its common stock from the Underwriter. On June 4, 2015, the Company, the Selling Shareholders, and the Underwriter entered into another secondary offering underwriting agreement (the “June 2015 Underwriting Agreement”) pursuant to which the Selling Shareholders agreed to each sell 1,500,000 shares for a total of 3,000,000 shares of CPF common stock, no par value per share, to the Underwriter at a price of $22.15 per common share for a total of approximately $66.5 million. The Company did not receive any of the proceeds from the sale of these shares by the Selling Shareholders and no shares were sold by the Company. In the second quarter of 2015, the Company accrued $0.3 million of costs recorded in other operating expenses related to the secondary offering by the Selling Shareholders. In January 2008, our Board of Directors authorized the repurchase and retirement of up to 60,000 shares of the Company’s common stock (the “2008 Repurchase Plan”). Repurchases under the 2008 Repurchase Plan may be made from time to time on the open market or in privately negotiated transactions. A total of 55,000 shares remained available for repurchase under the 2008 Repurchase Plan at December 31, 2013. In January 2014, the 2008 Repurchase Plan and the remaining 55,000 shares were superseded by the Tender Offer and Repurchase Agreements with our Lead Investors. On May 20, 2014, our Board of Directors authorized the repurchase and retirement of up to $30.0 million of the Company’s outstanding common stock (the “CPF Repurchase Plan”). Repurchases under the CPF Repurchase Plan may be made from time to time on the open market or in privately negotiated transactions. In 2014, 857,554 shares of common stock, at a cost of $16.5 million, were repurchased under this program. In January 2015, our Board of Directors increased the authorization under the CPF Repurchase Plan by $25.0 million. In March 2015, our Board of Directors increased the authorization under the CPF Repurchase Plan by an additional $75.0 million in connection with the March 2015 Underwriting Agreement. In the six months ended June 30, 2015, an additional 3,950,781 shares of common stock, at a cost of $89.3 million, excluding fees and expenses, were repurchased under this program. A total of $24.2 million remained available for repurchase under the CPF Repurchase Plan at June 30, 2015.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2015
SHARE-BASED COMPENSATION.
SHARE-BASED COMPENSATION	12. SHARE-BASED COMPENSATION Restricted Stock Awards and Units The table below presents the activity of restricted stock awards and units for the six months ended June 30, 2015: Weighted Average Grant Date Shares Fair Value Nonvested at January 1, 2015 715,460 $ 15.77 Changes during the period: Granted 137,878 18.67 Vested (336,417 ) 15.19 Forfeited (44,210 ) 16.25 Nonvested at June 30, 2015 472,711 16.98

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	6 Months Ended
	Jun. 30, 2015
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	13. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the components of other comprehensive income for the three and six months ended June 30, 2015 and 2014, by component: Before Tax Tax Effect Net of Tax (Dollars in thousands) Three Months Ended June 30, 2015 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (20,752 ) $ (8,259 ) $ (12,493 ) Less: Reclassification adjustment for losses realized in net income 1,866 743 1,123 Net unrealized losses on investment securities (18,886 ) (7,516 ) (11,370 ) Defined benefit plans: Amortization of net actuarial losses 421 170 251 Amortization of net transition obligation 4 2 2 Amortization of prior service cost 5 2 3 Defined benefit plans, net 430 174 256 Other comprehensive loss $ (18,456 ) $ (7,342 ) $ (11,114 ) Three Months Ended June 30, 2014 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 17,251 $ 6,797 $ 10,454 Less: Reclassification adjustment for losses realized in net income (240 ) (96 ) (144 ) Net unrealized gains on investment securities 17,011 6,701 10,310 Defined benefit plans: Amortization of net actuarial losses 305 120 185 Amortization of net transition obligation 4 2 2 Amortization of prior service cost 5 2 3 Defined benefit plans, net 314 124 190 Other comprehensive income $ 17,325 $ 6,825 $ 10,500 Before Tax Tax Effect Net of Tax (Dollars in thousands) Six Months Ended June 30, 2015 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (9,276 ) $ (3,692 ) $ (5,584 ) Less: Reclassification adjustment for losses realized in net income 1,866 743 1,123 Net unrealized losses on investment securities (7,410 ) (2,949 ) (4,461 ) Defined benefit plans: Amortization of net actuarial losses 841 335 506 Amortization of net transition obligation 8 4 4 Amortization of prior service cost 10 4 6 Defined benefit plans, net 859 343 516 Other comprehensive loss $ (6,551 ) $ (2,606 ) $ (3,945 ) Six Months Ended June 30, 2014 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 33,195 $ 13,165 $ 20,030 Less: Reclassification adjustment for losses realized in net income (240 ) (96 ) (144 ) Net unrealized gains on investment securities 32,955 13,069 19,886 Defined benefit plans: Amortization of net actuarial losses 610 243 367 Amortization of net transition obligation 8 4 4 Amortization of prior service cost 10 4 6 Defined benefit plans, net 628 251 377 Other comprehensive income $ 33,583 $ 13,320 $ 20,263 The following table presents the changes in each component of AOCI, net of tax, for the three and six months ended June 30, 2015 and 2014: Investment Defined Accumulated (Dollars in thousands) Three Months Ended June 30, 2015 Balance at beginning of period $ 20,495 $ (10,167 ) $ 10,328 Other comprehensive loss before reclassifications (12,493 ) — (12,493 ) Amounts reclassified from AOCI 1,123 256 1,379 Total other comprehensive income (loss) (11,370 ) 256 (11,114 ) Balance at end of period $ 9,125 $ (9,911 ) $ (786 ) Three Months Ended June 30, 2014 Balance at beginning of period $ 451 $ (6,533 ) $ (6,082 ) Other comprehensive income before reclassifications 10,454 — 10,454 Amounts reclassified from AOCI (144 ) 190 46 Total other comprehensive income 10,310 190 10,500 Balance at end of period $ 10,761 $ (6,343 ) $ 4,418 Six Months Ended June 30, 2015 Balance at beginning of period $ 13,586 $ (10,427 ) $ 3,159 Other comprehensive loss before reclassifications (5,584 ) — (5,584 ) Amounts reclassified from AOCI 1,123 516 1,639 Total other comprehensive income (loss) (4,461 ) 516 (3,945 ) Balance at end of period $ 9,125 $ (9,911 ) $ (786 ) Six Months Ended June 30, 2014 Balance at beginning of period $ (9,125 ) $ (6,720 ) $ (15,845 ) Other comprehensive income before reclassifications 20,030 — 20,030 Amounts reclassified from AOCI (144 ) 377 233 Total other comprehensive income 19,886 377 20,263 Balance at end of period $ 10,761 $ (6,343 ) $ 4,418 The following table presents the amounts reclassified out of each component of AOCI for the three and six months ended June 30, 2015 and 2014: Amount Reclassified from AOCI Affected Line Item in the Three Months Ended June 30, Statement Where Net Details about AOCI Components 2015 2014 Income is Presented (Dollars in thousands) Sale of investment securities available for sale $ (1,866 ) $ 240 Investment securities gains (losses) 743 (96 ) Tax benefit $ (1,123 ) $ 144 Net of tax Amortization of defined benefit plan items Net actuarial losses $ (421 ) $ (305 ) (1) Net transition obligation (4 ) (4 ) (1) Prior service cost (5 ) (5 ) (1) (430 ) (314 ) Total before tax 174 124 Tax benefit $ (256 ) $ (190 ) Net of tax Total reclassifications for the period $ (1,379 ) $ (46 ) Net of tax Six Months Ended June 30, 2015 2014 Sale of investment securities available for sale $ (1,866 ) $ 240 Investment securities gains (losses) 743 (96 ) Tax benefit $ (1,123 ) $ 144 Net of tax Amortization of defined benefit plan items Net actuarial losses $ (841 ) $ (610 ) (1) Net transition obligation (8 ) (8 ) (1) Prior service cost (10 ) (10 ) (1) (859 ) (628 ) Total before tax 343 251 Tax benefit $ (516 ) $ (377 ) Net of tax Total reclassifications for the period $ (1,639 ) $ (233 ) Net of tax (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details).

PENSION AND SUPPLEMENTAL EXECUT

PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS	6 Months Ended
	Jun. 30, 2015
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS
PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS	14. PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS Central Pacific Bank has a defined benefit retirement plan (the “Pension Plan”) which covers certain eligible employees. The plan was curtailed effective December 31, 2002, and accordingly, plan benefits were fixed as of that date. The following table sets forth the components of net periodic benefit cost for the Pension Plan: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (Dollars in thousands) (Dollars in thousands) Interest cost $ 348 $ 366 $ 696 $ 732 Expected return on assets (472 ) (524 ) (944 ) (1,048 ) Amortization of net actuarial losses 393 304 786 608 Net periodic cost $ 269 $ 146 $ 538 $ 292 Our bank also established Supplemental Executive Retirement Plans (“SERPs”), which provide certain (current and former) officers of our bank with supplemental retirement benefits. The following table sets forth the components of net periodic benefit cost for the SERPs: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (Dollars in thousands) Interest cost $ 110 $ 113 $ 220 $ 226 Amortization of net transition obligation 4 4 8 8 Amortization of prior service cost 5 5 10 10 Amortization of net actuarial losses 28 1 55 2 Net periodic cost $ 147 $ 123 $ 293 $ 246

INCOME AND FRANCHISE TAXES

INCOME AND FRANCHISE TAXES	6 Months Ended
	Jun. 30, 2015
INCOME AND FRANCHISE TAXES
INCOME AND FRANCHISE TAXES	15. INCOME AND FRANCHISE TAXES In assessing the need for a valuation allowance on our deferred tax assets (“DTA”), management considers whether it is more likely than not that some portion or all of the DTA will not be realized. The ultimate realization of DTA is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. At June 30, 2015, the Company had net operating loss carryforwards for Federal income tax purposes of $97.3 million, that are available to offset future Federal taxable income, if any, through 2030. At June 30, 2015, the Company had net operating loss carryforwards for Hawaii and California state income tax purposes of $56.9 million and $39.3 million, respectively, which are available to offset future state taxable income, if any, through 2030. In addition, the Company has state tax credit carryforwards of $14.9 million that do not expire, and federal tax credit carryforwards of $17.3 million, of which $14.0 million will expire within 20 years, and $3.3 million will not expire. Income tax expense for the periods presented differed from the “expected” tax expense (computed by applying the U.S. Federal corporate tax rate of 35% to income (loss) before income taxes) for the following reasons: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (Dollars in thousands) Computed “expected” tax expense $ 7,097 $ 4,560 $ 12,751 $ 9,924 Increase (decrease) in taxes resulting from: Tax-exempt interest (357 ) (354 ) (709 ) (705 ) Other tax-exempt income (161 ) (267 ) (397 ) (502 ) Income tax credits (313 ) (675 ) (640 ) (870 ) State income taxes, net of Federal income tax effect, excluding impact of deferred tax valuation allowance 1,526 573 2,265 1,173 Change in the beginning-of-the-year balance of the valuation allowance for deferred tax assets allocated to income tax expense 1 (3 ) 19 132 Other 151 43 414 243 Total $ 7,944 $ 3,877 $ 13,703 $ 9,395

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2015
EARNINGS PER SHARE
EARNINGS PER SHARE	16. EARNINGS PER SHARE The following table presents the information used to compute basic and diluted earnings per common share for the periods indicated: Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands, except per share data) Net income $ 12,335 $ 9,150 $ 22,730 $ 18,958 Weighted average shares outstanding - basic 31,525 36,117 33,167 39,000 Dilutive effect of employee stock options and awards 428 539 421 405 Weighted average shares outstanding - diluted 31,953 36,656 33,588 39,405 Basic earnings per share $ 0.39 $ 0.25 $ 0.69 $ 0.49 Diluted earnings per share $ 0.39 $ 0.25 $ 0.68 $ 0.48 A total of 12,996 potentially dilutive securities have been excluded from the dilutive share calculation for the three and six months ended June 30, 2015, as their effect was antidilutive, compared to 22,864 for the three and six months ended June 30, 2014.

FAIR VALUE OF FINANCIAL ASSETS

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES	6 Months Ended
	Jun. 30, 2015
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES	17. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES Disclosures about Fair Value of Financial Instruments Fair value estimates, methods and assumptions are set forth below for our financial instruments. Short-Term Financial Instruments The carrying values of short-term financial instruments are deemed to approximate fair values. Such instruments are considered readily convertible to cash and include cash and due from banks, interest-bearing deposits in other banks, accrued interest receivable, short-term borrowings, and accrued interest payable. Investment Securities The fair value of investment securities is based on market price quotations received from securities dealers. Where quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Loans Fair values of loans are estimated based on discounted cash flows of portfolios of loans with similar financial characteristics including the type of loan, interest terms and repayment history. Fair values are calculated by discounting scheduled cash flows through estimated maturities using estimated market discount rates. Estimated market discount rates are reflective of credit and interest rate risks inherent in the Company’s various loan types and are derived from available market information, as well as specific borrower information. The fair value of loans are not based on the notion of exit price. Loans Held for Sale The fair value of loans classified as held for sale are generally based upon quoted prices for similar assets in active markets, acceptance of firm offer letters with agreed upon purchase prices, discounted cash flow models that take into account market observable assumptions, or independent appraisals of the underlying collateral securing the loans. We report the fair values of Hawaii and U.S. Mainland construction and commercial real estate loans net of applicable selling costs on our consolidated balance sheets. Other Interest Earning Assets The equity investment in common stock of the FHLB, which is redeemable for cash at par value, is reported at its par value. Deposit Liabilities The fair values of deposits with no stated maturity, such as noninterest-bearing demand deposits and interest-bearing demand and savings accounts, are equal to the amount payable on demand. The fair value of time deposits is estimated using discounted cash flow analyses. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Long-Term Debt The fair value of our long-term debt is estimated by discounting scheduled cash flows over the contractual borrowing period at the estimated market rate for similar borrowing arrangements. Off-Balance Sheet Financial Instruments The fair values of off-balance sheet financial instruments are estimated based on the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties, current settlement values or quoted market prices of comparable instruments. For derivative financial instruments, the fair values are based upon current settlement values, if available. If there are no relevant comparables, fair values are based on pricing models using current assumptions for interest rate swaps and options. Limitations Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time our entire holdings of a particular financial instrument. Because no market exists for a significant portion of our financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of future business and the value of assets and liabilities that are not considered financial instruments. For example, significant assets and liabilities that are not considered financial assets or liabilities include deferred tax assets, premises and equipment and intangible assets. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in many of the estimates. Fair Value Measurement Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Carrying Estimated Identical Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) June 30, 2015 Financial assets Cash and due from banks $ 66,715 $ 66,715 $ 66,715 $ — $ — Interest-bearing deposits in other banks 14,775 14,775 14,775 — — Investment securities 1,537,090 1,533,462 918 1,519,916 12,628 Loans held for sale 22,917 22,917 — — 22,917 Net loans and leases 2,939,131 2,885,053 — 49,433 2,835,620 Accrued interest receivable 14,021 14,021 14,021 — — Financial liabilities Deposits: Noninterest-bearing deposits 1,080,428 1,080,428 1,080,428 — — Interest-bearing demand and savings deposits 2,069,031 2,069,031 2,069,031 — — Time deposits 1,032,863 1,034,242 — — 1,034,242 Short-term debt 157,000 157,000 — 157,000 — Long-term debt 92,785 69,035 — 69,035 — Accrued interest payable (included in other liabilities) 927 927 927 — — Off-balance sheet financial instruments Commitments to extend credit 740,072 3,700 — 3,700 — Standby letters of credit and financial guarantees written 16,061 120 — 120 — Interest rate options 34,007 360 — 360 — Forward interest rate contracts 33,531 290 — 290 — December 31, 2014 Financial assets Cash and due from banks $ 72,316 $ 72,316 $ 72,316 $ — $ — Interest-bearing deposits in other banks 13,691 13,691 13,691 — — Investment securities 1,467,305 1,464,615 877 1,450,643 13,095 Loans held for sale 9,683 9,683 — — 9,683 Net loans and leases 2,858,158 2,752,420 — 70,743 2,681,677 Accrued interest receivable 13,584 13,584 13,584 — — Financial liabilities Deposits: Noninterest-bearing deposits 1,034,146 1,034,146 1,034,146 — — Interest-bearing demand and savings deposits 2,030,870 2,030,870 2,030,870 — — Time deposits 1,045,284 1,047,322 — — 1,047,322 Short-term debt 38,000 38,000 — 38,000 — Long-term debt 92,785 42,454 — 42,454 — Accrued interest payable (included in other liabilities) 1,018 1,018 1,018 — — Off-balance sheet financial instruments Commitments to extend credit 720,255 3,601 — 3,601 — Standby letters of credit and financial guarantees written 18,797 141 — 141 — Interest rate options 44,266 444 — 444 — Forward interest rate contracts 23,919 (62 ) — (62 ) — Fair Value Measurements We group our financial assets and liabilities at fair value into three levels based on the markets in which the financial assets and liabilities are traded and the reliability of the assumptions used to determine fair value as follows: · · · We base our fair values on the price that we would expect to receive if an asset were sold or pay to transfer a liability in an orderly transaction between market participants at the measurement date. We also maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. We use fair value measurements to record adjustments to certain financial assets and liabilities and to determine fair value disclosures. Available for sale securities and derivatives are recorded at fair value on a recurring basis. From time to time, we may be required to record other financial assets at fair value on a nonrecurring basis such as loans held for sale, impaired loans and mortgage servicing rights. These nonrecurring fair value adjustments typically involve application of the lower of cost or fair value accounting or write-downs of individual assets. There were no transfers of financial assets and liabilities between Level 1 and Level 2 of the fair value hierarchy during the three and six months ended June 30, 2015. The following table presents the balances of assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014: Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) June 30, 2015 Available for sale securities: Debt securities: States and political subdivisions $ 188,257 $ — $ 175,629 $ 12,628 Corporate securities 99,562 — 99,562 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 778,067 — 778,067 — Residential - Non-government agencies 70,357 — 70,357 — Commerical - Non-government agencies 137,151 — 137,151 — Other 918 918 — — Total available for sale securities 1,274,312 918 1,260,766 12,628 Derivatives - Interest rate contracts 650 — 650 — Total $ 1,274,962 $ 918 $ 1,261,416 $ 12,628 December 31, 2014 Available for sale securities: Debt securities: States and political subdivisions $ 191,645 $ — $ 178,550 $ 13,095 Corporate securities 100,604 — 100,604 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 751,558 — 751,558 — Residential - Non-government agencies 46,693 — 46,693 — Commerical - Non-government agencies 137,641 — 137,641 — Other 877 877 — — Total available for sale securities 1,229,018 877 1,215,046 13,095 Derivatives - Interest rate contracts 382 — 382 — Total $ 1,229,400 $ 877 $ 1,215,428 $ 13,095 For the six months ended June 30, 2015 and 2014, the changes in Level 3 assets and liabilities measured at fair value on a recurring basis are summarized as follows: Available for Sale (Dollars in thousands) Balance at December 31, 2014 $ 13,095 Principal payments received (812 ) Unrealized net gain included in other comprehensive income 345 Balance at June 30, 2015 $ 12,628 Balance at December 31, 2013 $ 10,518 Principal payments received (139 ) Unrealized net gain included in other comprehensive income 76 Purchases 2,269 Balance at June 30, 2014 $ 12,724 Within the state and political subdivisions debt securities category, the Company holds four mortgage revenue bonds issued by the City & County of Honolulu with an aggregate fair value of $12.6 million and $12.7 million at June 30, 2015 and June 30, 2014, respectively. The Company estimates the fair value of its mortgage revenue bonds by using a discounted cash flow model to calculate the present value of estimated future principal and interest payments. The significant unobservable input used in the fair value measurement of the Company’s mortgage revenue bonds is the weighted average discount rate. As of June 30, 2015, the weighted average discount rate utilized was 4.17%, which was derived by incorporating a credit spread over the FHLB Fixed-Rate Advance curve. Significant increases (decreases) in the weighted average discount rate could result in a significantly lower (higher) fair value measurement. For assets measured at fair value on a nonrecurring basis that were recorded at fair value on our balance sheet at June 30, 2015 and December 31, 2014, the following table provides the level of valuation assumptions used to determine the respective fair values: Fair Value Measurements Using Quoted Prices Significant Significant Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) June 30, 2015 Impaired loans (1) $ 49,433 $ — $ 49,433 $ — Other real estate (2) 5,278 — 5,278 — December 31, 2014 Impaired loans (1) $ 70,743 $ — $ 70,743 $ — Other real estate (2) 2,948 — 2,948 — (1) Represents carrying value and related write-downs of loans for which adjustments are based on agreed upon purchase prices for the loans or the appraised value of the collateral. (2) Represents other real estate that is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2015
SEGMENT INFORMATION
SEGMENT INFORMATION	18. SEGMENT INFORMATION We have the following three reportable segments: Banking Operations, Treasury and All Others. These segments are consistent with our internal functional reporting lines and are managed separately because each unit has different target markets, technological requirements, marketing strategies and specialized skills. The Banking Operations segment includes construction and real estate development lending, commercial lending, residential mortgage lending, indirect auto lending, trust services, retail brokerage services and our retail branch offices, which provide a full range of deposit and loan products, as well as various other banking services. The Treasury segment is responsible for managing the Company’s investment securities portfolio and wholesale funding activities. The All Others segment consists of all activities not captured by the Banking Operations or Treasury segments described above and includes activities such as electronic banking, data processing and management of bank owned properties. The accounting policies of the segments are consistent with the Company’s accounting policies that are described in Note 1 to the consolidated financial statements in the Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC. The majority of the Company’s net income is derived from net interest income. Accordingly, management focuses primarily on net interest income, rather than gross interest income and expense amounts, in evaluating segment profitability. Intersegment net interest income (expense) was allocated to each segment based upon a funds transfer pricing process that assigns costs of funds to assets and earnings credits to liabilities based on market interest rates that reflect interest rate sensitivity and maturity characteristics. All administrative and overhead expenses are allocated to the segments at cost. Cash, investment securities, loans and leases and their related balances are allocated to the segment responsible for acquisition and maintenance of those assets. Segment assets also include all premises and equipment used directly in segment operations. Segment profits and assets are provided in the following table for the periods indicated. Banking Operations Treasury All Others Total (Dollars in thousands) Three Months Ended June 30, 2015: Net interest income $ 28,837 $ 8,457 $ — $ 37,294 Intersegment net interest income (expense) 11,348 (8,067 ) (3,281 ) — Credit for loan and lease losses 7,319 — — 7,319 Other operating income 6,008 (1,322 ) 3,438 8,124 Other operating expense (15,354 ) (493 ) (16,611 ) (32,458 ) Administrative and overhead expense allocation (15,937 ) (266 ) 16,203 — Income tax (expense) benefit (7,776 ) 591 (759 ) (7,944 ) Net income (loss) $ 14,445 $ (1,100 ) $ (1,010 ) $ 12,335 Three Months Ended June 30, 2014: Net interest income $ 27,356 $ 8,550 $ — $ 35,906 Intersegment net interest income (expense) 6,149 (7,107 ) 958 — Provision for loan and lease losses (1,995 ) — — (1,995 ) Other operating income 6,750 1,092 4,162 12,004 Other operating expense (14,372 ) (538 ) (17,978 ) (32,888 ) Administrative and overhead expense allocation (13,734 ) (267 ) 14,001 — Income tax expense (3,076 ) (490 ) (311 ) (3,877 ) Net income $ 7,078 $ 1,240 $ 832 $ 9,150 Six Months Ended June 30, 2015: Net interest income $ 56,691 $ 16,838 $ — $ 73,529 Intersegment net interest income (expense) 21,650 (16,765 ) (4,885 ) — Credit for loan and lease losses 10,066 — — 10,066 Other operating income 12,454 (295 ) 7,155 19,314 Other operating expense (30,178 ) (971 ) (35,327 ) (66,476 ) Administrative and overhead expense allocation (28,041 ) (554 ) 28,595 — Income tax (expense) benefit (14,924 ) 611 610 (13,703 ) Net income (loss) $ 27,718 $ (1,136 ) $ (3,852 ) $ 22,730 Six Months Ended June 30, 2014: Net interest income $ 53,543 $ 18,159 $ — $ 71,702 Intersegment net interest income (expense) 12,156 (13,719 ) 1,563 — Provision for loan and lease losses (679 ) — — (679 ) Other operating income 12,399 1,837 7,912 22,148 Other operating expense (29,690 ) (1,089 ) (34,039 ) (64,818 ) Administrative and overhead expense allocation (27,538 ) (539 ) 28,077 — Income tax expense (6,690 ) (1,541 ) (1,164 ) (9,395 ) Net income $ 13,501 $ 3,108 $ 2,349 $ 18,958 At June 30, 2015: Investment securities $ — $ 1,537,090 $ — $ 1,537,090 Loans and leases (including loans held for sale) 3,028,972 — — 3,028,972 Other 92,461 226,214 83,114 401,789 Total assets $ 3,121,433 $ 1,763,304 $ 83,114 $ 4,967,851 At December 31, 2014: Investment securities $ — $ 1,467,305 $ — $ 1,467,305 Loans and leases (including loans held for sale) 2,941,881 — — 2,941,881 Other 111,071 248,455 84,275 443,801 Total assets

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	6 Months Ended
	Jun. 30, 2015
LEGAL PROCEEDINGS
LEGAL PROCEEDINGS	19. LEGAL PROCEEDINGS We are involved in legal actions arising in the ordinary course of business. Management, after consultation with our legal counsel, believes the ultimate disposition of those matters will not have a material adverse effect on our consolidated financial statements.

RECENT ACCOUNTING PRONOUNCEME28

RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
	Jun. 30, 2015
RECENT ACCOUNTING PRONOUNCEMENTS POLICIES
Recent Accounting Pronouncements	In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-01, “Investments — Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects.” In January 2014, the FASB issued ASU 2014-04, “Receivables — Troubled Debt Restructurings by Creditors — Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” In June 2014, the FASB issued ASU 2014-11, “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” In August 2014, the FASB issued ASU 2014-14, “Receivables — Troubled Debt Restructurings by Creditors Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure.”

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2015
INVESTMENT SECURITIES.
Summary of available for sale and held to maturity investment securities	Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) At June 30, 2015: Held to Maturity: Mortgage-backed securities: Residential - U.S. Government sponsored entities $ 166,200 $ 111 $ (3,081 ) $ 163,230 Commercial - U.S. Government sponsored entities 96,578 — (658 ) 95,920 Total $ 262,778 $ 111 $ (3,739 ) $ 259,150 Available for Sale: Debt securities: States and political subdivisions $ 188,899 $ 2,169 $ (2,811 ) $ 188,257 Corporate securities 98,454 1,262 (154 ) 99,562 Mortgage-backed securities: Residential - U.S. Government sponsored entities 776,223 7,559 (5,715 ) 778,067 Residential - Non-government agencies 69,603 1,273 (519 ) 70,357 Commercial - Non-government agencies 135,535 2,566 (950 ) 137,151 Other 817 101 — 918 Total $ 1,269,531 $ 14,930 $ (10,149 ) $ 1,274,312 At December 31, 2014: Held to Maturity: Mortgage-backed securities: Residential - U.S. Government sponsored entities $ 140,741 $ 196 $ (2,150 ) $ 138,787 Commercial - U.S. Government sponsored entities 97,546 — (736 ) 96,810 Total $ 238,287 $ 196 $ (2,886 ) $ 235,597 Available for Sale: Debt securities: States and political subdivisions $ 191,280 $ 2,054 $ (1,689 ) $ 191,645 Corporate securities 99,237 1,492 (125 ) 100,604 Mortgage-backed securities: Residential - U.S. Government sponsored entities 744,527 11,064 (4,033 ) 751,558 Residential - Non-government agencies 45,275 1,510 (92 ) 46,693 Commercial - Non-government agencies 135,630 2,946 (935 ) 137,641 Other 757 120 — 877 Total $ 1,216,706 $ 19,186 $ (6,874 ) $ 1,229,018
Schedule of amortized cost and estimated fair value of investment securities by contractual maturity	June 30, 2015 Amortized Estimated Fair (Dollars in thousands) Held to Maturity Mortage-backed securities: Residential - U.S. Government sponsored entities $ 166,200 $ 163,230 Commercial - U.S. Government sponsored entities 96,578 95,920 Total $ 262,778 $ 259,150 Available for Sale Due in one year or less $ 2,567 $ 2,660 Due after one year through five years 76,206 77,321 Due after five years through ten years 96,501 96,678 Due after ten years 112,079 111,160 Mortage-backed securities: Residential - U.S. Government sponsored entities 776,223 778,067 Residential - Non-government agencies 69,603 70,357 Commercial - Non-government agencies 135,535 137,151 Other 817 918 Total $ 1,269,531 $ 1,274,312
Schedule of investment securities in an unrealized loss position	Less than 12 months 12 months or longer Total Unrealized Unrealized Unrealized Description of Securities Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) At June 30, 2015: Debt securities: States and political subdivisions $ 66,678 $ (1,558 ) $ 22,780 $ (1,253 ) $ 89,458 $ (2,811 ) Corporate securities 26,349 (154 ) — — 26,349 (154 ) Mortgage-backed securities: Residential - U.S. Government sponsored entities 464,847 (6,464 ) 87,126 (2,332 ) 551,973 (8,796 ) Residential - Non-government agencies 30,478 (519 ) — — 30,478 (519 ) Commercial - U.S. Government sponsored entities 95,920 (658 ) — — 95,920 (658 ) Commercial - Non-government agencies 57,620 (794 ) 4,653 (156 ) 62,273 (950 ) Total temporarily impaired securities $ 741,892 $ (10,147 ) $ 114,559 $ (3,741 ) $ 856,451 $ (13,888 ) At December 31, 2014: Debt securities: States and political subdivisions $ 23,591 $ (145 ) $ 68,622 $ (1,544 ) $ 92,213 $ (1,689 ) Corporate securities 23,938 (125 ) — — 23,938 (125 ) Mortgage-backed securities: Residential - U.S. Government sponsored entities 107,755 (487 ) 318,571 (5,696 ) 426,326 (6,183 ) Residential - Non-government agencies 15,895 (92 ) — — 15,895 (92 ) Commercial - U.S. Government sponsored entities 11,455 (34 ) 85,355 (702 ) 96,810 (736 ) Commercial - Non-government agencies 4,962 (8 ) 47,539 (927 ) 52,501 (935 ) Total temporarily impaired securities $ 187,596 $ (891 ) $ 520,087 $ (8,869 ) $ 707,683 $ (9,760 )

LOANS AND LEASES (Tables)

LOANS AND LEASES (Tables)	6 Months Ended
	Jun. 30, 2015
LOANS AND LEASES
Schedule of loans and leases, excluding loans held for sale	June 30, December 31, 2015 2014 (Dollars in thousands) Commercial, financial and agricultural $ 499,078 $ 463,070 Real estate: Construction 83,833 115,023 Mortgage - residential 1,349,594 1,280,089 Mortgage - commercial 695,995 704,099 Consumer 373,588 365,662 Leases 2,589 3,140 3,004,677 2,931,083 Net deferred costs 1,378 1,115 Total loans and leases $ 3,006,055 $ 2,932,198
Schedule of balance in the allowance for loan and lease losses and the recorded investment in loans and leases based on the impairment measurement methods, by class	Commercial, Real Estate Financial & Construction Mortgage -Residential Mortgage -Commercial Consumer Leases Total (Dollars in thousands) June 30, 2015 Allowance for loan and lease losses: Ending balance attributable to loans: Individually evaluated for impairment $ 58 $ — $ — $ — $ — $ — $ 58 Collectively evaluated for impairment 7,511 10,670 17,846 20,008 7,330 1 63,366 7,569 10,670 17,846 20,008 7,330 1 63,424 Unallocated 3,500 Total ending balance $ 7,569 $ 10,670 $ 17,846 $ 20,008 $ 7,330 $ 1 $ 66,924 Loans and leases: Individually evaluated for impairment $ 3,513 $ 4,474 $ 26,654 $ 14,850 $ — $ — $ 49,491 Collectively evaluated for impairment 495,565 79,359 1,322,940 681,145 373,588 2,589 2,955,186 499,078 83,833 1,349,594 695,995 373,588 2,589 3,004,677 Net deferred costs (income) 523 (278 ) 2,368 (802 ) (433 ) — 1,378 Total ending balance $ 499,601 $ 83,555 $ 1,351,962 $ 695,193 $ 373,155 $ 2,589 $ 3,006,055 December 31, 2014 Allowance for loan and lease losses: Ending balance attributable to loans: Individually evaluated for impairment $ 1,533 $ — $ — $ — $ — $ — $ 1,533 Collectively evaluated for impairment 7,421 14,969 17,927 20,869 7,314 7 68,507 8,954 14,969 17,927 20,869 7,314 7 70,040 Unallocated 4,000 Total ending balance $ 8,954 $ 14,969 $ 17,927 $ 20,869 $ 7,314 $ 7 $ 74,040 Loans and leases: Individually evaluated for impairment $ 13,369 $ 4,888 $ 30,893 $ 23,126 $ — $ — $ 72,276 Collectively evaluated for impairment 449,701 110,135 1,249,196 680,973 365,662 3,140 2,858,807 463,070 115,023 1,280,089 704,099 365,662 3,140 2,931,083 Net deferred costs (income) 693 (469 ) 2,235 (826 ) (518 ) — 1,115 Total ending balance $ 463,763 $ 114,554 $ 1,282,324 $ 703,273 $ 365,144 $ 3,140 $ 2,932,198
Schedule of impaired loans, by class	Unpaid Principal Recorded Allowance (Dollars in thousands) June 30, 2015 Impaired loans with no related allowance recorded: Commercial, financial & agricultural $ 1,303 $ 1,192 $ — Real estate: Construction 10,820 4,474 — Mortgage - residential 28,967 26,654 — Mortgage - commercial 17,967 14,850 — Total impaired loans with no related allowance recorded 59,057 47,170 — Impaired loans with an allowance recorded: Commercial, financial & agricultural 3,789 2,321 58 Total impaired loans with an allowance recorded 3,789 2,321 58 Total $ 62,846 $ 49,491 $ 58 December 31, 2014 Impaired loans with no related allowance recorded: Commercial, financial & agricultural $ 738 $ 738 $ — Real estate: Construction 11,275 4,888 — Mortgage - residential 34,131 30,893 — Mortgage - commercial 30,249 23,126 — Total impaired loans with no related allowance recorded 76,393 59,645 — Impaired loans with an allowance recorded: Commercial, financial & agricultural 16,630 12,631 1,533 Total impaired loans with an allowance recorded 16,630 12,631 1,533 Total $ 93,023 $ 72,276 $ 1,533
Schedule of average recorded investment and interest income recognized on impaired loans, by class	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Average Interest Income Average Interest Income Average Interest Income Average Interest Income (Dollars in thousands) Commercial, financial & agricultural $ 6,911 $ 5 $ 17,300 $ 6 $ 10,278 $ 10 $ 12,858 $ 11 Real estate: Construction 4,518 26 5,225 44 4,608 112 6,024 76 Mortgage - residential 27,312 (7 ) 33,419 274 28,134 (6 ) 34,913 437 Mortgage - commercial 16,438 175 16,201 76 19,595 339 16,123 115 Total $ 55,179 $ 199 $ 72,145 $ 400 $ 62,615 $ 455 $ 69,918 $ 639
Schedule of aging of the recorded investment in past due loans and leases, by class	Accruing Accruing Accruing Loans Nonaccrual Total Loans and Total (Dollars in thousands) June 30, 2015 Commercial, financial & agricultural $ 128 $ 52 $ — $ 3,175 $ 3,355 $ 496,246 $ 499,601 Real estate: Construction — — — 133 133 83,422 83,555 Mortgage - residential 724 183 — 10,032 10,939 1,341,023 1,351,962 Mortgage - commercial — — — 13,490 13,490 681,703 695,193 Consumer 1,236 431 45 — 1,712 371,443 373,155 Leases — — — — — 2,589 2,589 Total $ 2,088 $ 666 $ 45 $ 26,830 $ 29,629 $ 2,976,426 $ 3,006,055 December 31, 2014 Commercial, financial & agricultural $ 183 $ 85 $ — $ 13,007 $ 13,275 $ 450,488 $ 463,763 Real estate: Construction — — — 310 310 114,244 114,554 Mortgage - residential 3,078 379 — 13,048 16,505 1,265,819 1,282,324 Mortgage - commercial 68 — — 12,722 12,790 690,483 703,273 Consumer 1,500 417 77 — 1,994 363,150 365,144 Leases — — — — — 3,140 3,140 Total $ 4,829 $ 881 $ 77 $ 39,087 $ 44,874 $ 2,887,324 $ 2,932,198
Schedule of information related to loans modified in a TDR, by class	Number Recorded Increase (Dollars in thousands) Three Months Ended June 30, 2015 Commercial, financial & agricultural 1 $ 535 $ — Six Months Ended June 30, 2015 Commercial, financial & agricultural 1 $ 535 $ — Real estate mortgage - residential 1 964 — Total 2 $ 1,499 $ — Six Months Ended June 30, 2014 Real estate mortgage - residential 9 $ 600 $ —
Schedule of recorded investment in loans and leases, by class and credit indicator	Pass Special Substandard Subtotal Net Deferred Total (Dollars in thousands) June 30, 2015 Commercial, financial & agricultural $ 487,885 $ 4,855 $ 6,338 $ 499,078 $ 523 $ 499,601 Real estate: Construction 81,221 1,640 972 83,833 (278 ) 83,555 Mortgage - residential 1,339,067 — 10,527 1,349,594 2,368 1,351,962 Mortgage - commercial 668,926 4,047 23,022 695,995 (802 ) 695,193 Consumer 373,543 — 45 373,588 (433 ) 373,155 Leases 2,589 — — 2,589 — 2,589 Total $ 2,953,231 $ 10,542 $ 40,904 $ 3,004,677 $ 1,378 $ 3,006,055 December 31, 2014 Commercial, financial & agricultural $ 432,892 $ 14,655 $ 15,523 $ 463,070 $ 693 $ 463,763 Real estate: Construction 111,370 — 3,653 115,023 (469 ) 114,554 Mortgage - residential 1,265,470 352 14,267 1,280,089 2,235 1,282,324 Mortgage - commercial 660,492 10,498 33,109 704,099 (826 ) 703,273 Consumer 365,332 294 36 365,662 (518 ) 365,144 Leases 3,140 — — 3,140 — 3,140 Total $ 2,838,696 $ 25,799 $ 66,588 $ 2,931,083 $ 1,115 $ 2,932,198

ALLOWANCE FOR LOAN AND LEASE 31

ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables)	6 Months Ended
	Jun. 30, 2015
ALLOWANCE FOR LOAN AND LEASE LOSSES
Schedule of activity in the allowance, by class	Commercial, Real estate Financial & Mortgage - Mortgage - Agricultural Construction Residential Commercial Consumer Leases Unallocated Total (Dollars in thousands) Three Months Ended June 30, 2015 Beginning balance $ 8,791 $ 14,305 $ 17,057 $ 20,161 $ 7,119 $ — $ 4,000 $ 71,433 Provision (credit) for loan and lease losses (498 ) (4,099 ) 442 (3,715 ) 1,050 1 (500 ) (7,319 ) 8,293 10,206 17,499 16,446 8,169 1 3,500 64,114 Charge-offs 4,003 — 50 — 1,214 — — 5,267 Recoveries 3,279 464 397 3,562 375 — — 8,077 Net charge-offs (recoveries) 724 (464 ) (347 ) (3,562 ) 839 — — (2,810 ) Ending balance $ 7,569 $ 10,670 $ 17,846 $ 20,008 $ 7,330 $ 1 $ 3,500 $ 66,924 Three Months Ended June 30, 2014 Beginning balance $ 12,786 $ 14,940 $ 17,812 $ 25,925 $ 5,687 $ 12 $ 6,000 $ 83,162 Provision (credit) for loan and lease losses 405 243 959 988 1,402 (2 ) (2,000 ) 1,995 13,191 15,183 18,771 26,913 7,089 10 4,000 85,157 Charge-offs 1,482 — 102 1,041 671 — — 3,296 Recoveries 546 342 529 13 305 3 — 1,738 Net charge-offs (recoveries) 936 (342 ) (427 ) 1,028 366 (3 ) — 1,558 Ending balance $ 12,255 $ 15,525 $ 19,198 $ 25,885 $ 6,723 $ 13 $ 4,000 $ 83,599 Six Months Ended June 30, 2015 Beginning balance $ 8,954 $ 14,969 $ 17,927 $ 20,869 $ 7,314 $ 7 $ 4,000 $ 74,040 Provision (credit) for loan and lease losses (324 ) (4,886 ) (1,902 ) (4,436 ) 1,988 (6 ) (500 ) (10,066 ) 8,630 10,083 16,025 16,433 9,302 1 3,500 63,974 Charge-offs 4,934 — 64 — 3,055 — — 8,053 Recoveries 3,873 587 1,885 3,575 1,083 — — 11,003 Net charge-offs (recoveries) 1,061 (587 ) (1,821 ) (3,575 ) 1,972 — — (2,950 ) Ending balance $ 7,569 $ 10,670 $ 17,846 $ 20,008 $ 7,330 $ 1 $ 3,500 $ 66,924 Six Months Ended June 30, 2014 Beginning balance $ 13,196 $ 2,774 $ 25,272 $ 29,947 $ 6,576 $ 55 $ 6,000 $ 83,820 Provision (credit) for loan and lease losses (538 ) 12,007 (6,558 ) (3,047 ) 854 (39 ) (2,000 ) 679 12,658 14,781 18,714 26,900 7,430 16 4,000 84,499 Charge-offs 1,555 — 139 1,041 1,251 8 — 3,994 Recoveries 1,152 744 623 26 544 5 — 3,094 Net charge-offs (recoveries) 403 (744 ) (484 ) 1,015 707 3 — 900 Ending balance $ 12,255 $ 15,525 $ 19,198 $ 25,885 $ 6,723 $ 13 $ 4,000 $ 83,599

INVESTMENTS IN UNCONSOLIDATED32

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Tables)	6 Months Ended
	Jun. 30, 2015
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES
Schedule of investment in unconsolidated subsidiaries	June 30, December 31, 2015 2014 (Dollars in thousands) Investments in low income housing tax credit partnerships $ 3,216 $ 3,781 Trust preferred investments 2,792 2,792 Investments in affiliates 596 557 Other 116 116 $ 6,720 $ 7,246

OTHER INTANGIBLE ASSETS (Tables

OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2015
OTHER INTANGIBLE ASSETS
Schedule of changes in other intangible assets	Core Mortgage Deposit Servicing Premium Rights Total (Dollars in thousands) Balance, beginning of period $ 10,029 $ 19,668 $ 29,697 Additions — 1,245 1,245 Amortization (1,337 ) (2,327 ) (3,664 ) Balance, end of period $ 8,692 $ 18,586 $ 27,278
Schedule of fair market value and key assumptions used in determining the fair market value of our mortgage servicing rights	Six Months Ended June 30, 2015 2014 (Dollars in thousands) Fair market value, beginning of period $ 19,975 $ 21,399 Fair market value, end of period 19,202 20,341 Weighted average discount rate 9.5 % 8.0 % Weighted average prepayment speed assumption 13.8 15.1
Schedule of gross carrying value and accumulated amortization related to intangible assets	June 30, 2015 December 31, 2014 Gross Net Gross Net Carrying Accumulated Carrying Carrying Accumulated Carrying Value Amortization Value Value Amortization Value (Dollars in thousands) Core deposit premium $ 44,642 $ (35,950 ) $ 8,692 $ 44,642 $ (34,613 ) $ 10,029 Mortgage servicing rights 56,194 (37,608 ) 18,586 56,687 (37,019 ) 19,668 $ 100,836 $ (73,558 ) $ 27,278 $ 101,329 $ (71,632 ) $ 29,697
Schedule of estimated amortization expense	Estimated Amortization Expense Core Mortgage Deposit Servicing Premium Rights Total (Dollars in thousands) 2015 (remainder) $ 1,337 $ 1,482 $ 2,819 2016 2,674 2,322 4,996 2017 2,674 1,646 4,320 2018 2,007 1,157 3,164 2019 — 778 778 2020 — 434 434 Thereafter — 10,767 10,767 $ 8,692 $ 18,586 $ 27,278

DERIVATIVES (Tables)

DERIVATIVES (Tables)	6 Months Ended
	Jun. 30, 2015
DERIVATIVES.
Schedule of the location of all assets and liabilities associated with derivative instruments within the consolidated balance sheets	Asset Derivatives Liability Derivatives Derivatives Not Designated Balance Sheet Fair Value at Fair Value at Fair Value at Fair Value at (Dollars in thousands) Interest rate contracts Other assets / other liabilities $ 906 $ 504 $ 256 $ 122
Schedule of the impact of derivative instruments and their location within the consolidated statements of income	Derivatives Not in Cash Flow Location of Gain (Loss) Amount of Gain (Loss) (Dollars in thousands) Three Months Ended June 30, 2015 Interest rate contracts Other operating income $ (198 ) Three Months Ended June 30, 2014 Interest rate contracts Other operating income 413 Six Months Ended June 30, 2015 Interest rate contracts Other operating income 268 Six Months Ended June 30, 2014 Interest rate contracts Other operating income 353

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2015
SHARE-BASED COMPENSATION.
Schedule of activity of restricted stock awards and units	Weighted Average Grant Date Shares Fair Value Nonvested at January 1, 2015 715,460 $ 15.77 Changes during the period: Granted 137,878 18.67 Vested (336,417 ) 15.19 Forfeited (44,210 ) 16.25 Nonvested at June 30, 2015 472,711 16.98

ACCUMULATED OTHER COMPREHENSI36

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	6 Months Ended
	Jun. 30, 2015
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
Schedule of components of other comprehensive income (loss)	Before Tax Tax Effect Net of Tax (Dollars in thousands) Three Months Ended June 30, 2015 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (20,752 ) $ (8,259 ) $ (12,493 ) Less: Reclassification adjustment for losses realized in net income 1,866 743 1,123 Net unrealized losses on investment securities (18,886 ) (7,516 ) (11,370 ) Defined benefit plans: Amortization of net actuarial losses 421 170 251 Amortization of net transition obligation 4 2 2 Amortization of prior service cost 5 2 3 Defined benefit plans, net 430 174 256 Other comprehensive loss $ (18,456 ) $ (7,342 ) $ (11,114 ) Three Months Ended June 30, 2014 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 17,251 $ 6,797 $ 10,454 Less: Reclassification adjustment for losses realized in net income (240 ) (96 ) (144 ) Net unrealized gains on investment securities 17,011 6,701 10,310 Defined benefit plans: Amortization of net actuarial losses 305 120 185 Amortization of net transition obligation 4 2 2 Amortization of prior service cost 5 2 3 Defined benefit plans, net 314 124 190 Other comprehensive income $ 17,325 $ 6,825 $ 10,500 Before Tax Tax Effect Net of Tax (Dollars in thousands) Six Months Ended June 30, 2015 Net unrealized losses on investment securities: Net unrealized losses arising during the period $ (9,276 ) $ (3,692 ) $ (5,584 ) Less: Reclassification adjustment for losses realized in net income 1,866 743 1,123 Net unrealized losses on investment securities (7,410 ) (2,949 ) (4,461 ) Defined benefit plans: Amortization of net actuarial losses 841 335 506 Amortization of net transition obligation 8 4 4 Amortization of prior service cost 10 4 6 Defined benefit plans, net 859 343 516 Other comprehensive loss $ (6,551 ) $ (2,606 ) $ (3,945 ) Six Months Ended June 30, 2014 Net unrealized gains on investment securities: Net unrealized gains arising during the period $ 33,195 $ 13,165 $ 20,030 Less: Reclassification adjustment for losses realized in net income (240 ) (96 ) (144 ) Net unrealized gains on investment securities 32,955 13,069 19,886 Defined benefit plans: Amortization of net actuarial losses 610 243 367 Amortization of net transition obligation 8 4 4 Amortization of prior service cost 10 4 6 Defined benefit plans, net 628 251 377 Other comprehensive income $ 33,583 $ 13,320 $ 20,263
Schedule of changes in each component of AOCI, net of tax	Investment Defined Accumulated (Dollars in thousands) Three Months Ended June 30, 2015 Balance at beginning of period $ 20,495 $ (10,167 ) $ 10,328 Other comprehensive loss before reclassifications (12,493 ) — (12,493 ) Amounts reclassified from AOCI 1,123 256 1,379 Total other comprehensive income (loss) (11,370 ) 256 (11,114 ) Balance at end of period $ 9,125 $ (9,911 ) $ (786 ) Three Months Ended June 30, 2014 Balance at beginning of period $ 451 $ (6,533 ) $ (6,082 ) Other comprehensive income before reclassifications 10,454 — 10,454 Amounts reclassified from AOCI (144 ) 190 46 Total other comprehensive income 10,310 190 10,500 Balance at end of period $ 10,761 $ (6,343 ) $ 4,418 Six Months Ended June 30, 2015 Balance at beginning of period $ 13,586 $ (10,427 ) $ 3,159 Other comprehensive loss before reclassifications (5,584 ) — (5,584 ) Amounts reclassified from AOCI 1,123 516 1,639 Total other comprehensive income (loss) (4,461 ) 516 (3,945 ) Balance at end of period $ 9,125 $ (9,911 ) $ (786 ) Six Months Ended June 30, 2014 Balance at beginning of period $ (9,125 ) $ (6,720 ) $ (15,845 ) Other comprehensive income before reclassifications 20,030 — 20,030 Amounts reclassified from AOCI (144 ) 377 233 Total other comprehensive income 19,886 377 20,263 Balance at end of period $ 10,761 $ (6,343 ) $ 4,418
Schedule of amounts reclassified out of each component of AOCI	Amount Reclassified from AOCI Affected Line Item in the Three Months Ended June 30, Statement Where Net Details about AOCI Components 2015 2014 Income is Presented (Dollars in thousands) Sale of investment securities available for sale $ (1,866 ) $ 240 Investment securities gains (losses) 743 (96 ) Tax benefit $ (1,123 ) $ 144 Net of tax Amortization of defined benefit plan items Net actuarial losses $ (421 ) $ (305 ) (1) Net transition obligation (4 ) (4 ) (1) Prior service cost (5 ) (5 ) (1) (430 ) (314 ) Total before tax 174 124 Tax benefit $ (256 ) $ (190 ) Net of tax Total reclassifications for the period $ (1,379 ) $ (46 ) Net of tax Six Months Ended June 30, 2015 2014 Sale of investment securities available for sale $ (1,866 ) $ 240 Investment securities gains (losses) 743 (96 ) Tax benefit $ (1,123 ) $ 144 Net of tax Amortization of defined benefit plan items Net actuarial losses $ (841 ) $ (610 ) (1) Net transition obligation (8 ) (8 ) (1) Prior service cost (10 ) (10 ) (1) (859 ) (628 ) Total before tax 343 251 Tax benefit $ (516 ) $ (377 ) Net of tax Total reclassifications for the period $ (1,639 ) $ (233 ) Net of tax (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details).

PENSION AND SUPPLEMENTAL EXEC37

PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS (Tables)	6 Months Ended
	Jun. 30, 2015
Pension Plan
PENSION PLANS
Schedule of components of net periodic benefit cost	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (Dollars in thousands) (Dollars in thousands) Interest cost $ 348 $ 366 $ 696 $ 732 Expected return on assets (472 ) (524 ) (944 ) (1,048 ) Amortization of net actuarial losses 393 304 786 608 Net periodic cost $ 269 $ 146 $ 538 $ 292
SERPs
PENSION PLANS
Schedule of components of net periodic benefit cost	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (Dollars in thousands) Interest cost $ 110 $ 113 $ 220 $ 226 Amortization of net transition obligation 4 4 8 8 Amortization of prior service cost 5 5 10 10 Amortization of net actuarial losses 28 1 55 2 Net periodic cost $ 147 $ 123 $ 293 $ 246

INCOME AND FRANCHISE TAXES (Tab

INCOME AND FRANCHISE TAXES (Tables)	6 Months Ended
	Jun. 30, 2015
INCOME AND FRANCHISE TAXES
Schedule of the reasons of difference between the income tax expense (benefit) and the expected tax expense	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (Dollars in thousands) Computed “expected” tax expense $ 7,097 $ 4,560 $ 12,751 $ 9,924 Increase (decrease) in taxes resulting from: Tax-exempt interest (357 ) (354 ) (709 ) (705 ) Other tax-exempt income (161 ) (267 ) (397 ) (502 ) Income tax credits (313 ) (675 ) (640 ) (870 ) State income taxes, net of Federal income tax effect, excluding impact of deferred tax valuation allowance 1,526 573 2,265 1,173 Change in the beginning-of-the-year balance of the valuation allowance for deferred tax assets allocated to income tax expense 1 (3 ) 19 132 Other 151 43 414 243 Total $ 7,944 $ 3,877 $ 13,703 $ 9,395

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2015
EARNINGS PER SHARE
Schedule of information used to compute basic and diluted earnings per share	Three Months Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 (In thousands, except per share data) Net income $ 12,335 $ 9,150 $ 22,730 $ 18,958 Weighted average shares outstanding - basic 31,525 36,117 33,167 39,000 Dilutive effect of employee stock options and awards 428 539 421 405 Weighted average shares outstanding - diluted 31,953 36,656 33,588 39,405 Basic earnings per share $ 0.39 $ 0.25 $ 0.69 $ 0.49 Diluted earnings per share $ 0.39 $ 0.25 $ 0.68 $ 0.48

FAIR VALUE OF FINANCIAL ASSET40

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2015
FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Schedule of carrying amount and estimated fair value of financial instruments	Fair Value Measurement Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Carrying Estimated Identical Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) June 30, 2015 Financial assets Cash and due from banks $ 66,715 $ 66,715 $ 66,715 $ — $ — Interest-bearing deposits in other banks 14,775 14,775 14,775 — — Investment securities 1,537,090 1,533,462 918 1,519,916 12,628 Loans held for sale 22,917 22,917 — — 22,917 Net loans and leases 2,939,131 2,885,053 — 49,433 2,835,620 Accrued interest receivable 14,021 14,021 14,021 — — Financial liabilities Deposits: Noninterest-bearing deposits 1,080,428 1,080,428 1,080,428 — — Interest-bearing demand and savings deposits 2,069,031 2,069,031 2,069,031 — — Time deposits 1,032,863 1,034,242 — — 1,034,242 Short-term debt 157,000 157,000 — 157,000 — Long-term debt 92,785 69,035 — 69,035 — Accrued interest payable (included in other liabilities) 927 927 927 — — Off-balance sheet financial instruments Commitments to extend credit 740,072 3,700 — 3,700 — Standby letters of credit and financial guarantees written 16,061 120 — 120 — Interest rate options 34,007 360 — 360 — Forward interest rate contracts 33,531 290 — 290 — December 31, 2014 Financial assets Cash and due from banks $ 72,316 $ 72,316 $ 72,316 $ — $ — Interest-bearing deposits in other banks 13,691 13,691 13,691 — — Investment securities 1,467,305 1,464,615 877 1,450,643 13,095 Loans held for sale 9,683 9,683 — — 9,683 Net loans and leases 2,858,158 2,752,420 — 70,743 2,681,677 Accrued interest receivable 13,584 13,584 13,584 — — Financial liabilities Deposits: Noninterest-bearing deposits 1,034,146 1,034,146 1,034,146 — — Interest-bearing demand and savings deposits 2,030,870 2,030,870 2,030,870 — — Time deposits 1,045,284 1,047,322 — — 1,047,322 Short-term debt 38,000 38,000 — 38,000 — Long-term debt 92,785 42,454 — 42,454 — Accrued interest payable (included in other liabilities) 1,018 1,018 1,018 — — Off-balance sheet financial instruments Commitments to extend credit 720,255 3,601 — 3,601 — Standby letters of credit and financial guarantees written 18,797 141 — 141 — Interest rate options 44,266 444 — 444 — Forward interest rate contracts 23,919 (62 ) — (62 ) —
Schedule of balances of assets and liabilities measured at fair value on a recurring basis	Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) June 30, 2015 Available for sale securities: Debt securities: States and political subdivisions $ 188,257 $ — $ 175,629 $ 12,628 Corporate securities 99,562 — 99,562 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 778,067 — 778,067 — Residential - Non-government agencies 70,357 — 70,357 — Commerical - Non-government agencies 137,151 — 137,151 — Other 918 918 — — Total available for sale securities 1,274,312 918 1,260,766 12,628 Derivatives - Interest rate contracts 650 — 650 — Total $ 1,274,962 $ 918 $ 1,261,416 $ 12,628 December 31, 2014 Available for sale securities: Debt securities: States and political subdivisions $ 191,645 $ — $ 178,550 $ 13,095 Corporate securities 100,604 — 100,604 — Mortgage-backed securities: Residential - U.S. Government sponsored entities 751,558 — 751,558 — Residential - Non-government agencies 46,693 — 46,693 — Commerical - Non-government agencies 137,641 — 137,641 — Other 877 877 — — Total available for sale securities 1,229,018 877 1,215,046 13,095 Derivatives - Interest rate contracts 382 — 382 — Total $ 1,229,400 $ 877 $ 1,215,428 $ 13,095
Schedule of changes in Level 3 assets and liabilities measured at fair value on a recurring basis	Available for Sale (Dollars in thousands) Balance at December 31, 2014 $ 13,095 Principal payments received (812 ) Unrealized net gain included in other comprehensive income 345 Balance at June 30, 2015 $ 12,628 Balance at December 31, 2013 $ 10,518 Principal payments received (139 ) Unrealized net gain included in other comprehensive income 76 Purchases 2,269 Balance at June 30, 2014 $ 12,724
Schedule of level of valuation assumptions used to determine the fair value of assets measured on a nonrecurring basis	Fair Value Measurements Using Quoted Prices Significant Significant Fair Value (Level 1) (Level 2) (Level 3) (Dollars in thousands) June 30, 2015 Impaired loans (1) $ 49,433 $ — $ 49,433 $ — Other real estate (2) 5,278 — 5,278 — December 31, 2014 Impaired loans (1) $ 70,743 $ — $ 70,743 $ — Other real estate (2) 2,948 — 2,948 — (1) Represents carrying value and related write-downs of loans for which adjustments are based on agreed upon purchase prices for the loans or the appraised value of the collateral. (2) Represents other real estate that is carried at the lower of carrying value or fair value less costs to sell. Fair value is generally based upon independent market prices or appraised values of the collateral.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2015
SEGMENT INFORMATION
Schedule of segment profits (losses) and assets	Banking Operations Treasury All Others Total (Dollars in thousands) Three Months Ended June 30, 2015: Net interest income $ 28,837 $ 8,457 $ — $ 37,294 Intersegment net interest income (expense) 11,348 (8,067 ) (3,281 ) — Credit for loan and lease losses 7,319 — — 7,319 Other operating income 6,008 (1,322 ) 3,438 8,124 Other operating expense (15,354 ) (493 ) (16,611 ) (32,458 ) Administrative and overhead expense allocation (15,937 ) (266 ) 16,203 — Income tax (expense) benefit (7,776 ) 591 (759 ) (7,944 ) Net income (loss) $ 14,445 $ (1,100 ) $ (1,010 ) $ 12,335 Three Months Ended June 30, 2014: Net interest income $ 27,356 $ 8,550 $ — $ 35,906 Intersegment net interest income (expense) 6,149 (7,107 ) 958 — Provision for loan and lease losses (1,995 ) — — (1,995 ) Other operating income 6,750 1,092 4,162 12,004 Other operating expense (14,372 ) (538 ) (17,978 ) (32,888 ) Administrative and overhead expense allocation (13,734 ) (267 ) 14,001 — Income tax expense (3,076 ) (490 ) (311 ) (3,877 ) Net income $ 7,078 $ 1,240 $ 832 $ 9,150 Six Months Ended June 30, 2015: Net interest income $ 56,691 $ 16,838 $ — $ 73,529 Intersegment net interest income (expense) 21,650 (16,765 ) (4,885 ) — Credit for loan and lease losses 10,066 — — 10,066 Other operating income 12,454 (295 ) 7,155 19,314 Other operating expense (30,178 ) (971 ) (35,327 ) (66,476 ) Administrative and overhead expense allocation (28,041 ) (554 ) 28,595 — Income tax (expense) benefit (14,924 ) 611 610 (13,703 ) Net income (loss) $ 27,718 $ (1,136 ) $ (3,852 ) $ 22,730 Six Months Ended June 30, 2014: Net interest income $ 53,543 $ 18,159 $ — $ 71,702 Intersegment net interest income (expense) 12,156 (13,719 ) 1,563 — Provision for loan and lease losses (679 ) — — (679 ) Other operating income 12,399 1,837 7,912 22,148 Other operating expense (29,690 ) (1,089 ) (34,039 ) (64,818 ) Administrative and overhead expense allocation (27,538 ) (539 ) 28,077 — Income tax expense (6,690 ) (1,541 ) (1,164 ) (9,395 ) Net income $ 13,501 $ 3,108 $ 2,349 $ 18,958 At June 30, 2015: Investment securities $ — $ 1,537,090 $ — $ 1,537,090 Loans and leases (including loans held for sale) 3,028,972 — — 3,028,972 Other 92,461 226,214 83,114 401,789 Total assets $ 3,121,433 $ 1,763,304 $ 83,114 $ 4,967,851 At December 31, 2014: Investment securities $ — $ 1,467,305 $ — $ 1,467,305 Loans and leases (including loans held for sale) 2,941,881 — — 2,941,881 Other 111,071 248,455 84,275 443,801 Total assets $ 3,052,952 $ 1,715,760 $ 84,275 $ 4,852,987

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Held to Maturity
Amortized Cost	$ 262,778	$ 238,287
Gross unrealized gains	111	196
Gross unrealized losses	(3,739)	(2,886)
Estimated fair value	259,150	235,597
Available for Sale
Amortized cost	1,269,531	1,216,706
Gross unrealized gains	14,930	19,186
Gross unrealized losses	(10,149)	(6,874)
Estimated fair value	1,274,312	1,229,018
Residential - U.S. Government sponsored entities
Held to Maturity
Amortized Cost	166,200	140,741
Gross unrealized gains	111	196
Gross unrealized losses	(3,081)	(2,150)
Estimated fair value	163,230	138,787
Available for Sale
Amortized cost	776,223	744,527
Gross unrealized gains	7,559	11,064
Gross unrealized losses	(5,715)	(4,033)
Estimated fair value	778,067	751,558
Commercial - U.S. Government sponsored entities
Held to Maturity
Amortized Cost	96,578	97,546
Gross unrealized losses	(658)	(736)
Estimated fair value	95,920	96,810
Residential - Non-government agencies
Available for Sale
Amortized cost	69,603	45,275
Gross unrealized gains	1,273	1,510
Gross unrealized losses	(519)	(92)
Estimated fair value	70,357	46,693
Commercial - Non-government agencies
Available for Sale
Amortized cost	135,535	135,630
Gross unrealized gains	2,566	2,946
Gross unrealized losses	(950)	(935)
Estimated fair value	137,151	137,641
States and political subdivisions debt securities
Available for Sale
Amortized cost	188,899	191,280
Gross unrealized gains	2,169	2,054
Gross unrealized losses	(2,811)	(1,689)
Estimated fair value	188,257	191,645
Corporate debt securities
Available for Sale
Amortized cost	98,454	99,237
Gross unrealized gains	1,262	1,492
Gross unrealized losses	(154)	(125)
Estimated fair value	99,562	100,604
Other
Available for Sale
Amortized cost	817	757
Gross unrealized gains	101	120
Estimated fair value	$ 918	$ 877

INVESTMENT SECURITIES (Details

INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Held to Maturity, Amortized Cost
Mortgage-backed securities	$ 262,778		$ 262,778
Held to Maturity, Estimated Fair Value
Mortgage-backed securities	259,150		259,150
Available for Sale, Amortized Cost
Due in one year or less	2,567		2,567
Due after one year through five years	76,206		76,206
Due after five years through ten years	96,501		96,501
Due after ten years	112,079		112,079
Total	1,269,531		1,269,531
Available for Sale, Estimated Fair Value
Due in one year or less	2,660		2,660
Due after one year through five years	77,321		77,321
Due after five years through ten years	96,678		96,678
Due after ten years	111,160		111,160
Estimated fair value	1,274,312		1,274,312		$ 1,229,018
Available for sale
Gross proceeds from sale of available for sale investment securities	117,500	$ 162,500	117,496	$ 162,470
Gross realized gains on the sales of the available for sale investment securities		900
Gross realized losses on the sales of the available for sale investment securities	1,900	$ 700
Investment securities pledged to party with no right to sell or repledge the collateral	959,000		959,000		900,500
Residential - U.S. Government sponsored entities
Held to Maturity, Amortized Cost
Mortgage-backed securities	166,200		166,200
Held to Maturity, Estimated Fair Value
Mortgage-backed securities	163,230		163,230
Available for Sale, Amortized Cost
Mortgage-backed securities	776,223		776,223
Available for Sale, Estimated Fair Value
Mortgage-backed securities	778,067		778,067
Estimated fair value	778,067		778,067		751,558
Commercial - U.S. Government sponsored entities
Held to Maturity, Amortized Cost
Mortgage-backed securities	96,578		96,578
Held to Maturity, Estimated Fair Value
Mortgage-backed securities	95,920		95,920
Residential - Non-government agencies
Available for Sale, Amortized Cost
Mortgage-backed securities	69,603		69,603
Available for Sale, Estimated Fair Value
Mortgage-backed securities	70,357		70,357
Estimated fair value	70,357		70,357		46,693
Commercial - Non-government agencies
Available for Sale, Amortized Cost
Mortgage-backed securities	135,535		135,535
Available for Sale, Estimated Fair Value
Mortgage-backed securities	137,151		137,151
Estimated fair value	137,151		137,151		137,641
Other
Available for Sale, Amortized Cost
Other	817		817
Available for Sale, Estimated Fair Value
Other	918		918
Estimated fair value	$ 918		$ 918		$ 877

INVESTMENT SECURITIES (Detail44

INVESTMENT SECURITIES (Details 3) $ in Thousands	Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)item
INVESTMENT SECURITIES.
Number of investment securities in an unrealized loss position | item	216	195
Total temporary impaired securities
Less than 12 months, Fair Value	$ 741,892	$ 187,596
Less than 12 months, Unrealized Losses	(10,147)	(891)
12 months or longer, Fair Value	114,559	520,087
12 months or longer, Unrealized Losses	(3,741)	(8,869)
Total, Fair Value	856,451	707,683
Total, Unrealized Losses	(13,888)	(9,760)
States and political subdivisions debt securities
Total temporary impaired securities
Less than 12 months, Fair Value	66,678	23,591
Less than 12 months, Unrealized Losses	(1,558)	(145)
12 months or longer, Fair Value	22,780	68,622
12 months or longer, Unrealized Losses	(1,253)	(1,544)
Total, Fair Value	89,458	92,213
Total, Unrealized Losses	(2,811)	(1,689)
Corporate debt securities
Total temporary impaired securities
Less than 12 months, Fair Value	26,349	23,938
Less than 12 months, Unrealized Losses	(154)	(125)
Total, Fair Value	26,349	23,938
Total, Unrealized Losses	(154)	(125)
Residential - U.S. Government sponsored entities
Total temporary impaired securities
Less than 12 months, Fair Value	464,847	107,755
Less than 12 months, Unrealized Losses	(6,464)	(487)
12 months or longer, Fair Value	87,126	318,571
12 months or longer, Unrealized Losses	(2,332)	(5,696)
Total, Fair Value	551,973	426,326
Total, Unrealized Losses	(8,796)	(6,183)
Commercial - U.S. Government sponsored entities
Total temporary impaired securities
Less than 12 months, Fair Value	95,920	11,455
Less than 12 months, Unrealized Losses	(658)	(34)
12 months or longer, Fair Value		85,355
12 months or longer, Unrealized Losses		(702)
Total, Fair Value	95,920	96,810
Total, Unrealized Losses	(658)	(736)
Residential - Non-government agencies
Total temporary impaired securities
Less than 12 months, Fair Value	30,478	15,895
Less than 12 months, Unrealized Losses	(519)	(92)
Total, Fair Value	30,478	15,895
Total, Unrealized Losses	(519)	(92)
Commercial - Non-government agencies
Total temporary impaired securities
Less than 12 months, Fair Value	57,620	4,962
Less than 12 months, Unrealized Losses	(794)	(8)
12 months or longer, Fair Value	4,653	47,539
12 months or longer, Unrealized Losses	(156)	(927)
Total, Fair Value	62,273	52,501
Total, Unrealized Losses	$ (950)	$ (935)

LOANS AND LEASES (Details)

LOANS AND LEASES (Details) $ in Thousands	1 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	May. 31, 2014USD ($)	Jun. 30, 2015USD ($)loan	Jun. 30, 2014USD ($)loan	Dec. 31, 2014USD ($)
LOANS AND LEASES
Loans and leases, gross	$ 3,004,677		$ 3,004,677		$ 2,931,083
Net deferred costs (income)	1,378		1,378		1,115
Total loans and leases	3,006,055		$ 3,006,055		2,932,198
Number of collateral portfolio loans transferred to other real estate | loan			6	3
Number of collateral portfolio loans transferred to held-for-sale category | loan			2
Carrying value of collateral portfolio loans transferred to other real estate			$ 5,037	$ 1,511
Carrying value of collateral portfolio loans transferred to held-for-sale category			$ 6,648
Number of loans sold | loan			0	0
Number of loans purchased | loan			0
Auto Loan Portfolio
LOANS AND LEASES
Carrying value of loan purchased	28,100	$ 11,200
Premium value of loan purchased	1,000	300
Outstanding value of loan purchased	$ 27,100	$ 10,900
Weighted average remaining term	79 months	71 months
Student Loan Portfolio
LOANS AND LEASES
Carrying value of loan purchased		$ 11,500
Weighted average remaining term		123 months
Commercial, financial & agricultural
LOANS AND LEASES
Loans and leases, gross	$ 499,078		$ 499,078		463,070
Net deferred costs (income)	523		523		693
Total loans and leases	499,601		499,601		463,763
Real estate, construction
LOANS AND LEASES
Loans and leases, gross	83,833		83,833		115,023
Net deferred costs (income)	(278)		(278)		(469)
Total loans and leases	83,555		83,555		114,554
Real estate, Mortgage - residential
LOANS AND LEASES
Loans and leases, gross	1,349,594		1,349,594		1,280,089
Net deferred costs (income)	2,368		2,368		2,235
Total loans and leases	1,351,962		1,351,962		1,282,324
Real estate, Mortgage - commercial
LOANS AND LEASES
Loans and leases, gross	695,995		695,995		704,099
Net deferred costs (income)	(802)		(802)		(826)
Total loans and leases	695,193		695,193		703,273
Consumer
LOANS AND LEASES
Loans and leases, gross	373,588		373,588		365,662
Net deferred costs (income)	(433)		(433)		(518)
Total loans and leases	373,155		373,155		365,144
Leases
LOANS AND LEASES
Loans and leases, gross	2,589		2,589		3,140
Total loans and leases	$ 2,589		$ 2,589		$ 3,140

LOANS AND LEASES (Details 2)

LOANS AND LEASES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Allowance for loan and lease losses :
Total ending balance	$ 66,924	$ 71,433	$ 74,040	$ 83,599	$ 83,162	$ 83,820
Loans and leases :
Individually evaluated for impairment	49,491		72,276
Collectively evaluated for impairment	2,955,186		2,858,807
Loans and leases	3,004,677		2,931,083
Net deferred costs (income)	1,378		1,115
Total loans and leases	3,006,055		2,932,198
Allocated
Allowance for loan and lease losses :
Ending balance attributable to loans : Individually evaluated for impairment	58		1,533
Ending balance attributable to loans : Collectively evaluated for impairment	63,366		68,507
Total ending balance	63,424		70,040
Commercial, financial & agricultural
Allowance for loan and lease losses :
Ending balance attributable to loans : Individually evaluated for impairment	58		1,533
Ending balance attributable to loans : Collectively evaluated for impairment	7,511		7,421
Total ending balance	7,569	8,791	8,954	12,255	12,786	13,196
Loans and leases :
Individually evaluated for impairment	3,513		13,369
Collectively evaluated for impairment	495,565		449,701
Loans and leases	499,078		463,070
Net deferred costs (income)	523		693
Total loans and leases	499,601		463,763
Real estate, construction
Allowance for loan and lease losses :
Ending balance attributable to loans : Collectively evaluated for impairment	10,670		14,969
Total ending balance	10,670	14,305	14,969	15,525	14,940	2,774
Loans and leases :
Individually evaluated for impairment	4,474		4,888
Collectively evaluated for impairment	79,359		110,135
Loans and leases	83,833		115,023
Net deferred costs (income)	(278)		(469)
Total loans and leases	83,555		114,554
Real estate, Mortgage - residential
Allowance for loan and lease losses :
Ending balance attributable to loans : Collectively evaluated for impairment	17,846		17,927
Total ending balance	17,846	17,057	17,927	19,198	17,812	25,272
Loans and leases :
Individually evaluated for impairment	26,654		30,893
Collectively evaluated for impairment	1,322,940		1,249,196
Loans and leases	1,349,594		1,280,089
Net deferred costs (income)	2,368		2,235
Total loans and leases	1,351,962		1,282,324
Real estate, Mortgage - commercial
Allowance for loan and lease losses :
Ending balance attributable to loans : Collectively evaluated for impairment	20,008		20,869
Total ending balance	20,008	20,161	20,869	25,885	25,925	29,947
Loans and leases :
Individually evaluated for impairment	14,850		23,126
Collectively evaluated for impairment	681,145		680,973
Loans and leases	695,995		704,099
Net deferred costs (income)	(802)		(826)
Total loans and leases	695,193		703,273
Consumer
Allowance for loan and lease losses :
Ending balance attributable to loans : Collectively evaluated for impairment	7,330		7,314
Total ending balance	7,330	7,119	7,314	6,723	5,687	6,576
Loans and leases :
Collectively evaluated for impairment	373,588		365,662
Loans and leases	373,588		365,662
Net deferred costs (income)	(433)		(518)
Total loans and leases	373,155		365,144
Leases
Allowance for loan and lease losses :
Ending balance attributable to loans : Collectively evaluated for impairment	1		7
Total ending balance	1		7	13	12	55
Loans and leases :
Collectively evaluated for impairment	2,589		3,140
Loans and leases	2,589		3,140
Total loans and leases	2,589		3,140
Unallocated
Allowance for loan and lease losses :
Total ending balance	$ 3,500	$ 4,000	$ 4,000	$ 4,000	$ 6,000	$ 6,000

LOANS AND LEASES (Details 3)

LOANS AND LEASES (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Unpaid Principal Balance
Impaired loans with no related allowance recorded	$ 59,057		$ 59,057		$ 76,393
Impaired loans with an allowance recorded	3,789		3,789		16,630
Total	62,846		62,846		93,023
Recorded Investment
Impaired loans with no related allowance recorded	47,170		47,170		59,645
Impaired loans with an allowance recorded	2,321		2,321		12,631
Total	49,491		49,491		72,276
Allowance Allocated
Impaired loans with an allowance recorded	58		58		1,533
Average recorded investment on impaired loans
Average Recorded Investment	55,179	$ 72,145	62,615	$ 69,918
Interest income recognized on impaired loans
Interest Income Recognized	199	400	455	639
Commercial, financial & agricultural
Unpaid Principal Balance
Impaired loans with no related allowance recorded	1,303		1,303		738
Impaired loans with an allowance recorded	3,789		3,789		16,630
Recorded Investment
Impaired loans with no related allowance recorded	1,192		1,192		738
Impaired loans with an allowance recorded	2,321		2,321		12,631
Allowance Allocated
Impaired loans with an allowance recorded	58		58		1,533
Average recorded investment on impaired loans
Average Recorded Investment	6,911	17,300	10,278	12,858
Interest income recognized on impaired loans
Interest Income Recognized	5	6	10	11
Real estate, construction
Unpaid Principal Balance
Impaired loans with no related allowance recorded	10,820		10,820		11,275
Recorded Investment
Impaired loans with no related allowance recorded	4,474		4,474		4,888
Average recorded investment on impaired loans
Average Recorded Investment	4,518	5,225	4,608	6,024
Interest income recognized on impaired loans
Interest Income Recognized	26	44	112	76
Real estate, Mortgage - residential
Unpaid Principal Balance
Impaired loans with no related allowance recorded	28,967		28,967		34,131
Recorded Investment
Impaired loans with no related allowance recorded	26,654		26,654		30,893
Average recorded investment on impaired loans
Average Recorded Investment	27,312	33,419	28,134	34,913
Interest income recognized on impaired loans
Interest Income Recognized	(7)	274	(6)	437
Loans in the process of foreclosure			3,000
Real estate, Mortgage - commercial
Unpaid Principal Balance
Impaired loans with no related allowance recorded	17,967		17,967		30,249
Recorded Investment
Impaired loans with no related allowance recorded	14,850		14,850		$ 23,126
Average recorded investment on impaired loans
Average Recorded Investment	16,438	16,201	19,595	16,123
Interest income recognized on impaired loans
Interest Income Recognized	$ 175	$ 76	$ 339	$ 115

LOANS AND LEASES (Details 4)

LOANS AND LEASES (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Aging Analysis of Accruing and Non-Accruing Loans and Leases
30 - 59 Days Past Due	$ 2,088	$ 4,829
60 - 89 Days Past Due	666	881
Accruing Loans Greater than 90 Days Past Due	45	77
Nonaccrual Loans	26,830	39,087
Total Past Due	29,629	44,874
Loans and Leases Not Past Due	2,976,426	2,887,324
Total loans and leases	3,006,055	2,932,198
Commercial, financial & agricultural
Aging Analysis of Accruing and Non-Accruing Loans and Leases
30 - 59 Days Past Due	128	183
60 - 89 Days Past Due	52	85
Nonaccrual Loans	3,175	13,007
Total Past Due	3,355	13,275
Loans and Leases Not Past Due	496,246	450,488
Total loans and leases	499,601	463,763
Real estate, construction
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Nonaccrual Loans	133	310
Total Past Due	133	310
Loans and Leases Not Past Due	83,422	114,244
Total loans and leases	83,555	114,554
Real estate, Mortgage - residential
Aging Analysis of Accruing and Non-Accruing Loans and Leases
30 - 59 Days Past Due	724	3,078
60 - 89 Days Past Due	183	379
Nonaccrual Loans	10,032	13,048
Total Past Due	10,939	16,505
Loans and Leases Not Past Due	1,341,023	1,265,819
Total loans and leases	1,351,962	1,282,324
Real estate, Mortgage - commercial
Aging Analysis of Accruing and Non-Accruing Loans and Leases
30 - 59 Days Past Due		68
Nonaccrual Loans	13,490	12,722
Total Past Due	13,490	12,790
Loans and Leases Not Past Due	681,703	690,483
Total loans and leases	695,193	703,273
Consumer
Aging Analysis of Accruing and Non-Accruing Loans and Leases
30 - 59 Days Past Due	1,236	1,500
60 - 89 Days Past Due	431	417
Accruing Loans Greater than 90 Days Past Due	45	77
Total Past Due	1,712	1,994
Loans and Leases Not Past Due	371,443	363,150
Total loans and leases	373,155	365,144
Leases
Aging Analysis of Accruing and Non-Accruing Loans and Leases
Loans and Leases Not Past Due	2,589	3,140
Total loans and leases	$ 2,589	$ 3,140

LOANS AND LEASES (Details 5)

LOANS AND LEASES (Details 5) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015USD ($)loancontract	Jun. 30, 2014loan	Jun. 30, 2015USD ($)loancontract	Jun. 30, 2014USD ($)loancontract	Dec. 31, 2014USD ($)
Information related to loans modified in a TDR
Number of TDRs included in nonperforming assets | loan		0
Loans which were more than 90 days delinquent	$ 0		$ 0		$ 0
Amount of TDRs still accruing interest	19,000		19,000		$ 29,500
Commitments to lend additional funds	$ 0		$ 0
Holding period limit for accruing interest on TDRs			90 days		90 days
Number of Contracts | contract			2
Recorded Investment			$ 1,499
Loans modified as a TDR within the previous twelve months that subsequently defaulted
Number of loans were modified as a TDR within the previous twelve months that subsequently defaulted | loan	0	0	0	0
Commercial, financial & agricultural
Information related to loans modified in a TDR
Number of Contracts | contract	1		1
Recorded Investment	$ 535		$ 535
Real estate, Mortgage - residential
Information related to loans modified in a TDR
Number of Contracts | contract			1	9
Recorded Investment			$ 964	$ 600
Real estate, Mortgage - residential | HAWAII
Information related to loans modified in a TDR
Number of TDRs included in nonperforming assets | loan			30
Principal balances of troubled debt restructurings included in nonperforming assets	6,100		$ 6,100
Real estate, Mortgage - commercial | HAWAII
Information related to loans modified in a TDR
Principal balances of troubled debt restructurings included in nonperforming assets	1,000		1,000
Construction and development loan | HAWAII
Information related to loans modified in a TDR
Principal balances of troubled debt restructurings included in nonperforming assets	34		$ 34
Commercial loans | HAWAII
Information related to loans modified in a TDR
Number of TDRs included in nonperforming assets | loan			2
Principal balances of troubled debt restructurings included in nonperforming assets	$ 900		$ 900

LOANS AND LEASES (Details 6)

LOANS AND LEASES (Details 6) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Recorded investment in the loans and leases, by class and credit indicator
Recovery value of loan	$ 0
Loans and leases, gross	3,004,677	$ 2,931,083
Net deferred costs (income)	1,378	1,115
Total	3,006,055	2,932,198
Commercial, financial & agricultural
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	499,078	463,070
Net deferred costs (income)	523	693
Total	499,601	463,763
Real estate, construction
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	83,833	115,023
Net deferred costs (income)	(278)	(469)
Total	83,555	114,554
Real estate, Mortgage - residential
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	1,349,594	1,280,089
Net deferred costs (income)	2,368	2,235
Total	1,351,962	1,282,324
Real estate, Mortgage - commercial
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	695,995	704,099
Net deferred costs (income)	(802)	(826)
Total	695,193	703,273
Consumer
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	373,588	365,662
Net deferred costs (income)	(433)	(518)
Total	373,155	365,144
Leases
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	2,589	3,140
Total	2,589	3,140
Pass
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	2,953,231	2,838,696
Pass | Commercial, financial & agricultural
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	487,885	432,892
Pass | Real estate, construction
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	81,221	111,370
Pass | Real estate, Mortgage - residential
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	1,339,067	1,265,470
Pass | Real estate, Mortgage - commercial
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	668,926	660,492
Pass | Consumer
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	373,543	365,332
Pass | Leases
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	2,589	3,140
Special Mention
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	10,542	25,799
Special Mention | Commercial, financial & agricultural
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	4,855	14,655
Special Mention | Real estate, construction
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	1,640
Special Mention | Real estate, Mortgage - residential
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross		352
Special Mention | Real estate, Mortgage - commercial
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	4,047	10,498
Special Mention | Consumer
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross		294
Substandard
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	40,904	66,588
Substandard | Commercial, financial & agricultural
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	6,338	15,523
Substandard | Real estate, construction
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	972	3,653
Substandard | Real estate, Mortgage - residential
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	10,527	14,267
Substandard | Real estate, Mortgage - commercial
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	23,022	33,109
Substandard | Consumer
Recorded investment in the loans and leases, by class and credit indicator
Loans and leases, gross	$ 45	$ 36

ALLOWANCE FOR LOAN AND LEASE 51

ALLOWANCE FOR LOAN AND LEASE LOSSES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Changes in the allowance
Beginning balance	$ 71,433	$ 83,162	$ 74,040	$ 83,820
Provision (credit) for loan and lease losses	(7,319)	1,995	(10,066)	679
Subtotal	64,114	85,157	63,974	84,499
Charge-offs	5,267	3,296	8,053	3,994
Recoveries	8,077	1,738	11,003	3,094
Net charge-offs (recoveries)	(2,810)	1,558	(2,950)	900
Ending balance	66,924	83,599	66,924	83,599
Commercial, financial & agricultural
Changes in the allowance
Beginning balance	8,791	12,786	8,954	13,196
Provision (credit) for loan and lease losses	(498)	405	(324)	(538)
Subtotal	8,293	13,191	8,630	12,658
Charge-offs	4,003	1,482	4,934	1,555
Recoveries	3,279	546	3,873	1,152
Net charge-offs (recoveries)	724	936	1,061	403
Ending balance	7,569	12,255	7,569	12,255
Real estate, construction
Changes in the allowance
Beginning balance	14,305	14,940	14,969	2,774
Provision (credit) for loan and lease losses	(4,099)	243	(4,886)	12,007
Subtotal	10,206	15,183	10,083	14,781
Recoveries	464	342	587	744
Net charge-offs (recoveries)	(464)	(342)	(587)	(744)
Ending balance	10,670	15,525	10,670	15,525
Real estate, Mortgage - residential
Changes in the allowance
Beginning balance	17,057	17,812	17,927	25,272
Provision (credit) for loan and lease losses	442	959	(1,902)	(6,558)
Subtotal	17,499	18,771	16,025	18,714
Charge-offs	50	102	64	139
Recoveries	397	529	1,885	623
Net charge-offs (recoveries)	(347)	(427)	(1,821)	(484)
Ending balance	17,846	19,198	17,846	19,198
Real estate, Mortgage - commercial
Changes in the allowance
Beginning balance	20,161	25,925	20,869	29,947
Provision (credit) for loan and lease losses	(3,715)	988	(4,436)	(3,047)
Subtotal	16,446	26,913	16,433	26,900
Charge-offs		1,041		1,041
Recoveries	3,562	13	3,575	26
Net charge-offs (recoveries)	(3,562)	1,028	(3,575)	1,015
Ending balance	20,008	25,885	20,008	25,885
Consumer
Changes in the allowance
Beginning balance	7,119	5,687	7,314	6,576
Provision (credit) for loan and lease losses	1,050	1,402	1,988	854
Subtotal	8,169	7,089	9,302	7,430
Charge-offs	1,214	671	3,055	1,251
Recoveries	375	305	1,083	544
Net charge-offs (recoveries)	839	366	1,972	707
Ending balance	7,330	6,723	7,330	6,723
Leases
Changes in the allowance
Beginning balance		12	7	55
Provision (credit) for loan and lease losses	1	(2)	(6)	(39)
Subtotal	1	10	1	16
Charge-offs				8
Recoveries		3		5
Net charge-offs (recoveries)		(3)		3
Ending balance	1	13	1	13
Unallocated
Changes in the allowance
Beginning balance	4,000	6,000	4,000	6,000
Provision (credit) for loan and lease losses	(500)	(2,000)	(500)	(2,000)
Subtotal	3,500	4,000	3,500	4,000
Ending balance	$ 3,500	$ 4,000	$ 3,500	$ 4,000

SECURITIZATIONS (Details)

SECURITIZATIONS (Details) - Real estate, Mortgage - residential - Significant Other Observable Inputs (Level 2) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
SECURITIZATIONS
Fair value	$ 3	$ 3.5
Unrealized gains recorded in AOCI	$ 0.2	$ 0.3

INVESTMENTS IN UNCONSOLIDATED53

INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES
Investments in low income housing tax credit partnerships	$ 3,216		$ 3,216		$ 3,781
Trust preferred investments	2,792		2,792		2,792
Investment in affiliates	596		596		557
Other	116		116		116
Investment in unconsolidated subsidiaries	6,720		6,720		$ 7,246
Amortization expense in pretax income	300	$ 400	600	$ 800
Income Tax Credits and Adjustments	$ 300	$ 900	$ 600

OTHER INTANGIBLE ASSETS (Detail

OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Changes in other intangible assets
Balance, beginning of period			$ 29,697
Additions			1,245
Amortization			(3,664)
Balance, end of period	$ 27,278		27,278
Gross carrying value, accumulated amortization and net carrying value related to intangible assets
Gross Carrying Value	100,836				$ 101,329
Accumulated Amortization	(73,558)				(71,632)
Net Carrying Value	27,278		29,697		29,697
Estimated Amortization Expense
2015 (remainder)	2,819
2,016	4,996
2,017	4,320
2,018	3,164
2,019	778
2,020	434
Thereafter	10,767
Net Carrying Value	27,278		29,697		29,697
Other disclosures
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans	1,630	$ 1,227	3,224	$ 2,466
Core Deposit Premium
Changes in other intangible assets
Balance, beginning of period			10,029
Amortization			(1,337)
Balance, end of period	8,692		8,692
Gross carrying value, accumulated amortization and net carrying value related to intangible assets
Gross Carrying Value	44,642				44,642
Accumulated Amortization	(35,950)				(34,613)
Net Carrying Value	8,692		10,029		10,029
Estimated Amortization Expense
2015 (remainder)	1,337
2,016	2,674
2,017	2,674
2,018	2,007
Net Carrying Value	8,692		10,029		10,029
Mortgage Servicing Rights
Changes in other intangible assets
Balance, beginning of period			19,668
Additions			1,245
Amortization	(900)	(600)	(2,327)	(1,200)
Balance, end of period	18,586		18,586
Gross carrying value, accumulated amortization and net carrying value related to intangible assets
Gross Carrying Value	56,194				56,687
Accumulated Amortization	(37,608)				(37,019)
Net Carrying Value	18,586		19,668		19,668
Estimated Amortization Expense
2015 (remainder)	1,482
2,016	2,322
2,017	1,646
2,018	1,157
2,019	778
2,020	434
Thereafter	10,767
Net Carrying Value	18,586		19,668		$ 19,668
Other disclosures
Income generated as a result of new mortgage servicing rights reported as gains on sale of loans	600	500	1,200	900
Fair market value and key assumptions used in determining the fair market value
Fair market value, beginning of period			19,975	21,399
Fair market value, end of period	$ 19,202	$ 20,341	$ 19,202	$ 20,341
Weighted average discount rate (as a percent)			9.50%	8.00%
Weighted average prepayment speed assumption (as a percent)			13.80%	15.10%

DERIVATIVES (Details)

DERIVATIVES (Details) - Derivatives Not Designated as Hedging Instruments $ in Millions	Jun. 30, 2015USD ($)
Interest rate lock commitments
DERIVATIVES
Mortgage loans hedged	$ 34
Forward sale commitments
DERIVATIVES
Mortgage loans hedged	$ 33.5

DERIVATIVES (Details 2)

DERIVATIVES (Details 2) - Derivatives Not Designated as Hedging Instruments - Derivative - Interest Rate Contracts - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Asset Derivatives
Fair Value	$ 906	$ 504
Liability Derivatives
Fair Value	$ 256	$ 122

DERIVATIVES (Details 3)

DERIVATIVES (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Derivatives Not Designated as Hedging Instruments | Derivatives Not in Cash Flow Hedging Relationship | Derivative - Interest Rate Contracts
DERIVATIVES
Amount of Gain (Loss) Recognized in Earnings on Derivatives	$ (198)	$ 413	$ 268	$ 353

SHORT-TERM BORROWINGS AND LON58

SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
LONG-TERM DEBT
Long term borrowings	$ 92,785		$ 92,785
Short-term borrowings	157,000		38,000
Investment securities pledged as collateral	959,000		900,500
Deferred accrued interest paid	3,239	$ 3,283
Federal Home Loan Bank Borrowings
LONG-TERM DEBT
Line of Credit, maximum borrowing capacity	1,200,000
Additional unused borrowings available	1,000,000
Long term borrowings	0		0
Short-term borrowings	157,000		38,000
Investment securities pledged as collateral	700
Commercial real estate and commercial loans pledged as collateral	1,600,000
Federal Reserve discount window line of credit
LONG-TERM DEBT
Additional unused borrowings available	27,500		33,300
Commercial real estate and commercial loans pledged as collateral	$ 54,300		$ 72,900

EQUITY (Details)

EQUITY (Details) $ / shares in Units, $ in Thousands

Jun. 04, 2015USD ($)$ / sharesshares

Apr. 01, 2015USD ($)$ / sharesshares

Apr. 07, 2014USD ($)shares

Mar. 21, 2014USD ($)$ / sharesshares

Feb. 21, 2014USD ($)$ / shares

Feb. 20, 2014USD ($)shares

Jan. 29, 2014

Nov. 23, 2010$ / shares

Mar. 31, 2015USD ($)

Jan. 31, 2015USD ($)

Jun. 30, 2015USD ($)$ / sharesshares

Jun. 30, 2014USD ($)

Jun. 30, 2015USD ($)$ / sharesshares

Jun. 30, 2014USD ($)shares

Dec. 31, 2014USD ($)$ / sharesshares

May. 20, 2014USD ($)

Dec. 31, 2013shares

Jan. 31, 2008shares

EQUITY

For ownership change to occur, the minimum cumulative increase in the entity's ownership by "5-percent shareholders" over a rolling three-year period (as a percent)

50.00%

Par value (in dollars per share) | $ / shares

$ 0

$ 0

$ 0

Additional Extension Period

2 years

Number of shares repurchased

3,950,781

6,369,266

Common stock, outstanding shares

31,501,633

31,501,633

35,233,674

Common stock, issued shares

31,501,633

31,501,633

35,233,674

Common stock, par value (in dollars per share) | $ / shares

$ 0

$ 0

$ 0

Other operating expense | $

$ 5,715

$ 5,003

$ 10,207

$ 9,018

Rights

EQUITY

Additional extension period of Tax Benefits Preservation Plan

2 years

Central Pacific Bank

EQUITY

Statutory Retained Earnings | $

58,700

$ 58,700

Common Stock

EQUITY

Number of shares repurchased

857,554

Value of shares repurchased | $

$ 16,500

Common Stock | Repurchase Plan 2008

EQUITY

Shares authorized under the Repurchase Plan

60,000

Shares remaining available for repurchase

55,000

Common Stock | Repurchase Plan 2014

EQUITY

Number of shares repurchased

3,950,781

Value of shares repurchased | $

$ 89,300

Amount authorized under the Repurchase Plan | $

$ 30,000

Increase in share repurchase authorized amount | $

$ 75,000

$ 25,000

Remaining amount available for repurchase | $

24,200

$ 24,200

Common Stock | Repurchase Agreements

EQUITY

Tender offer price (in dollars per share) | $ / shares

$ 20.20

Number of shares of common stock properly tendered and not withdrawn at or below the purchase price

3,369,850

Number of shares of common stock tendered through notice of guaranteed delivery at or below the purchase price

167,572

Number of shares repurchased

6,188,066

3,405,888

Value of shares repurchased | $

$ 125,000

$ 68,800

Share repurchase percentage of common stock properly tendered and not withdrawn at or below the purchase price

96.60%

Share repurchase percentage of issued and outstanding shares of common stock prior to the completion of the tender offer and the private repurchases

14.70%

Common stock, outstanding shares

35,900,000

Common Stock | Repurchase Agreements | Lead Investors

EQUITY

Value of shares repurchased | $

$ 56,200

Percentage of shares of common stock held by investors

44.90%

Common Stock | Repurchase Agreements | Carlyle

EQUITY

Number of shares repurchased

1,391,089

Number of shares of common stock held by investors

9,463,095

Percentage of shares of common stock held by investors

22.50%

Common Stock | Repurchase Agreements | Anchorage

EQUITY

Number of shares repurchased

1,391,089

Number of shares of common stock held by investors

9,463,095

Percentage of shares of common stock held by investors

22.50%

Common Stock | Underwriting Agreement

EQUITY

Value of shares repurchased | $

$ 66,500

$ 175,000

Common stock, par value (in dollars per share) | $ / shares

$ 0

$ 0

Common stock, sale price (in dollars per share) | $ / shares

$ 22.15

$ 23.01

Other operating expense | $

$ 400

$ 300

Equity related expense | $

$ 200

Common Stock | Underwriting Agreement | Carlyle

EQUITY

Number of shares repurchased

1,500,000

3,802,694

Common Stock | Underwriting Agreement | Anchorage

EQUITY

Number of shares repurchased

1,500,000

3,802,694

Common Stock | Underwriting Agreement | Carlyle And Anchorage

EQUITY

Number of shares repurchased

3,000,000

7,605,388

Common Stock | Underwriting Agreement | Citigroup Global Markets

EQUITY

Number of shares repurchased

3,259,452

Value of shares repurchased | $

$ 75,000

Common stock, sale price (in dollars per share) | $ / shares

$ 23.01

Common Stock | Minimum | Repurchase Agreements

EQUITY

Tender offer price (in dollars per share) | $ / shares

$ 18.50

Common Stock | Maximum | Repurchase Agreements

EQUITY

Tender offer price (in dollars per share) | $ / shares

$ 21

Value of shares repurchased | $

$ 68,800

Common Stock | Maximum | Repurchase Agreements | Carlyle

EQUITY

Value of shares repurchased | $

$ 28,100

Common Stock | Maximum | Repurchase Agreements | Carlyle And Anchorage

EQUITY

Value of shares repurchased | $

$ 28,100

Junior Participating Preferred Stock, Series C | Rights

EQUITY

Fraction of securities callable by each warrant or right

0.0001

Exercise price of warrant (in dollars per share) | $ / shares

$ 6

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - 6 months ended Jun. 30, 2015 - Restricted Stock Awards and Units - $ / shares	Total
Activity of nonvested shares
Nonvested at the beginning of the period (in shares)	715,460
Changes during the period:
Granted (in shares)	137,878
Vested (in shares)	(336,417)
Forfeited (in shares)	(44,210)
Nonvested at the end of the period (in shares)	472,711
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 15.77
Changes during the period:
Granted (in dollars per share)	18.67
Vested (in dollars per share)	15.19
Forfeited (in dollars per share)	16.25
Nonvested at the end of the period (in dollars per share)	$ 16.98

ACCUMULATED OTHER COMPREHENSI61

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net unrealized gains/losses on investment securities, Before Tax
Net unrealized gains/losses arising during the period	$ (20,752)	$ 17,251	$ (9,276)	$ 33,195
Less: Reclassification adjustment for losses realized in net income	1,866	(240)	1,866	(240)
Net unrealized gains (losses) on investment securities	(18,886)	17,011	(7,410)	32,955
Defined benefit plans, Before Tax
Amortization of net actuarial losses	421	305	841	610
Amortization of net transition obligation	4	4	8	8
Amortization of prior service cost	5	5	10	10
Defined benefit plans, net	430	314	859	628
Other comprehensive income (loss)	(18,456)	17,325	(6,551)	33,583
Net unrealized gains/losses on investment securities, Tax Effect
Net unrealized gains (losses) arising during the period	(8,259)	6,797	(3,692)	13,165
Less: Reclassification adjustment for gains (losses) realized in net income	743	(96)	743	(96)
Net unrealized gains (losses) on investment securities	(7,516)	6,701	(2,949)	13,069
Defined benefit plans, Tax Effect
Amortization of net actuarial losses	170	120	335	243
Amortization of net transition obligation	2	2	4	4
Amortization of prior service cost	2	2	4	4
Defined benefit plans, net	174	124	343	251
Other comprehensive income	(7,342)	6,825	(2,606)	13,320
Net unrealized gains/losses on investment securities, Net of Tax
Net unrealized gains (losses) arising during the period	(12,493)	10,454	(5,584)	20,030
Less: Reclassification adjustment for gains (losses) realized in net income	1,123	(144)	1,123	(144)
Net unrealized gains (losses) on investment securities	(11,370)	10,310	(4,461)	19,886
Defined benefit plans, Net of Tax
Amortization of net actuarial losses	251	185	506	367
Amortization of net transition obligation	2	2	4	4
Amortization of prior service cost	3	3	6	6
Defined benefit plans, net	256	190	516	377
Other comprehensive income (loss), net of tax	$ (11,114)	$ 10,500	$ (3,945)	$ 20,263

ACCUMULATED OTHER COMPREHENSI62

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Changes in each component of AOCI, net of tax
Balance at beginning of period	$ 10,328	$ (6,082)	$ 3,159	$ (15,845)
Other comprehensive income/loss before reclassifications	(12,493)	10,454	(5,584)	20,030
Amounts reclassified from AOCI	1,379	46	1,639	233
Other comprehensive income (loss), net of tax	(11,114)	10,500	(3,945)	20,263
Balance at end of period	(786)	4,418	(786)	4,418
Investment Securities
Changes in each component of AOCI, net of tax
Balance at beginning of period	20,495	451	13,586	(9,125)
Other comprehensive income/loss before reclassifications	(12,493)	10,454	(5,584)	20,030
Amounts reclassified from AOCI	1,123	(144)	1,123	(144)
Other comprehensive income (loss), net of tax	(11,370)	10,310	(4,461)	19,886
Balance at end of period	9,125	10,761	9,125	10,761
Benefit Plans
Changes in each component of AOCI, net of tax
Balance at beginning of period	(10,167)	(6,533)	(10,427)	(6,720)
Amounts reclassified from AOCI	256	190	516	377
Other comprehensive income (loss), net of tax	256	190	516	377
Balance at end of period	$ (9,911)	$ (6,343)	$ (9,911)	$ (6,343)

ACCUMULATED OTHER COMPREHENSI63

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 3) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Amounts reclassified out of each component of accumulated other comprehensive income
Investment securities gains (losses)		$ (1,866)	$ 240	$ (1,866)	$ 240
Interest income		38,896	37,536	76,677	74,929
Net actuarial losses		(421)	(305)	(841)	(610)
Net transition obligation		(4)	(4)	(8)	(8)
Prior service cost		(5)	(5)	(10)	(10)
Tax benefit		(7,944)	(3,877)	(13,703)	(9,395)
Net income (loss)		12,335	9,150	22,730	18,958
Amount Reclassified from AOCI
Amounts reclassified out of each component of accumulated other comprehensive income
Net income (loss)		(1,379)	(46)	(1,639)	(233)
Investment Securities | Amount Reclassified from AOCI
Amounts reclassified out of each component of accumulated other comprehensive income
Investment securities gains (losses)		(1,866)	240	(1,866)	240
Tax benefit		743	(96)	743	(96)
Available-for-sale Securities, Gross Unrealized Gain (Loss), Total Net of tax		(1,123)	144	(1,123)	144
Benefit Plans | Amount Reclassified from AOCI
Amounts reclassified out of each component of accumulated other comprehensive income
Net actuarial losses	[1]	(421)	(305)	(841)	(610)
Net transition obligation	[1]	(4)	(4)	(8)	(8)
Prior service cost	[1]	(5)	(5)	(10)	(10)
Reclassification from Accumulated Other Comprehensive Income		(430)	(314)	(859)	(628)
Tax benefit		174	124	343	251
Net of tax		$ 256	$ 190	$ 516	$ 377
[1]	These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 14 for additional details).

PENSION AND SUPPLEMENTAL EXEC64

PENSION AND SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Pension Plan
Components of net periodic benefit cost
Interest cost	$ 348	$ 366	$ 696	$ 732
Expected return on assets	(472)	(524)	(944)	(1,048)
Amortization of net actuarial losses	393	304	786	608
Net periodic cost	269	146	538	292
SERPs
Components of net periodic benefit cost
Interest cost	110	113	220	226
Amortization of net transition obligation	4	4	8	8
Amortization of prior service cost	5	5	10	10
Amortization of net actuarial losses	28	1	55	2
Net periodic cost	$ 147	$ 123	$ 293	$ 246

INCOME AND FRANCHISE TAXES (Det

INCOME AND FRANCHISE TAXES (Details) $ in Millions	Jun. 30, 2015USD ($)
Federal
Operating loss carryforwards
Net operating loss carryforwards	$ 97.3
State | HAWAII
Operating loss carryforwards
Net operating loss carryforwards	56.9
State | CALIFORNIA
Operating loss carryforwards
Net operating loss carryforwards	$ 39.3

INCOME AND FRANCHISE TAXES (D66

INCOME AND FRANCHISE TAXES (Details 2) - Jun. 30, 2015 - USD ($) $ in Millions	Total
Tax credit carryforwards
Expiration period of tax credit carryforwards	20 years
State
Tax credit carryforwards
Tax credit carryforwards that do not expire	$ 14.9
Federal
Tax credit carryforwards
Tax credit carryforwards	17.3
Tax credit carryforwards that expire	14
Tax credit carryforwards that do not expire	$ 3.3

INCOME AND FRANCHISE TAXES (D67

INCOME AND FRANCHISE TAXES (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reconciliation between the income tax benefit and the expected tax benefit
U.S. Federal corporate tax rate (as a percent)			35.00%
Computed expected tax expense	$ 7,097	$ 4,560	$ 12,751	$ 9,924
Increase (decrease) in taxes resulting from:
Tax-exempt interest	(357)	(354)	(709)	(705)
Other tax-exempt income	(161)	(267)	(397)	(502)
Income tax credits	(313)	(675)	(640)	(870)
State income taxes, net of Federal income tax effect, excluding impact of deferred tax valuation allowance	1,526	573	2,265	1,173
Change in the beginning-of-the-year balance of the valuation allowance for deferred tax assets allocated to income tax expense	1	(3)	19	132
Other	151	43	414	243
Total	$ 7,944	$ 3,877	$ 13,703	$ 9,395

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
EARNINGS PER SHARE
Net income	$ 12,335	$ 9,150	$ 22,730	$ 18,958
Weighted average shares outstanding - basic	31,525,000	36,117,000	33,167,000	39,000,000
SHARE-BASED COMPENSATION
Weighted average shares outstanding - diluted	31,953,000	36,656,000	33,588,000	39,405,000
Basic earnings per share (in dollars per share)	$ 0.39	$ 0.25	$ 0.69	$ 0.49
Diluted earnings per share (in dollars per share)	$ 0.39	$ 0.25	$ 0.68	$ 0.48
Antidilutive securities excluded from the dilutive share calculation (in shares)	12,996	22,864	12,996	22,864
Stock Option
SHARE-BASED COMPENSATION
Dilutive effect of share-based compensation arrangements	428,000	539,000	421,000	405,000

FAIR VALUE OF FINANCIAL ASSET69

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Financial assets
Cash and due from banks	$ 66,715	$ 72,316
Interest-bearing deposits in other banks	14,775	13,691
Loans held for sale	22,917	9,683
Accrued interest receivable	14,021	13,584
Deposits:
Noninterest-bearing deposits	1,080,428	1,034,146
Time deposits	1,032,863	1,045,284
Transfers of financial assets from Level 1 to Level 2	0
Transfers of financial assets from Level 2 to Level 1	0
Transfers of financial liabilities from Level 1 to Level 2	0
Transfers of financial liabilities from Level 2 to Level 1	0
Carrying Amount
Financial assets
Cash and due from banks	66,175	72,316
Interest-bearing deposits in other banks	14,715	13,691
Investment securities	1,537,090	1,467,305
Loans held for sale	22,917	9,683
Net loans and leases	2,939,131	2,858,158
Accrued interest receivable	14,021	13,584
Deposits:
Noninterest-bearing deposits	1,080,428	1,034,146
Interest-bearing demand and savings deposits	2,069,031	2,030,870
Time deposits	1,032,863	1,045,284
Short-term debt	157,000	38,000
Long-term debt	92,785	92,785
Accrued interest payable (included in other liabilities)	927	1,018
Carrying Amount | Commitments to extend credit
Deposits:
Off-balance sheet financial instruments	740,072	720,255
Carrying Amount | Standby letters of credit and financial guarantees written
Deposits:
Off-balance sheet financial instruments	16,061	18,797
Carrying Amount | Interest rate options
Deposits:
Off-balance sheet financial instruments	34,007	44,266
Carrying Amount | Forward interest rate contracts
Deposits:
Off-balance sheet financial instruments	33,531	23,919
Estimated Fair Value
Financial assets
Cash and due from banks	66,715	72,316
Interest-bearing deposits in other banks	14,775	13,691
Investment securities	1,533,462	1,464,615
Loans held for sale	22,917	9,683
Net loans and leases	2,885,053	2,752,420
Accrued interest receivable	14,021	13,584
Deposits:
Noninterest-bearing deposits	1,080,428	1,034,146
Interest-bearing demand and savings deposits	2,069,031	2,030,870
Time deposits	1,034,242	1,047,322
Short-term debt	157,000	38,000
Long-term debt	69,035	42,454
Accrued interest payable (included in other liabilities)	927	1,018
Estimated Fair Value | Commitments to extend credit
Deposits:
Off-balance sheet financial instruments	3,700	3,601
Estimated Fair Value | Standby letters of credit and financial guarantees written
Deposits:
Off-balance sheet financial instruments	120	141
Estimated Fair Value | Interest rate options
Deposits:
Off-balance sheet financial instruments	360	444
Estimated Fair Value | Forward interest rate contracts
Deposits:
Off-balance sheet financial instruments	290
Off-balance sheet financial instruments		(62)
Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets
Cash and due from banks	66,715	72,316
Interest-bearing deposits in other banks	14,775	13,691
Investment securities	918	877
Accrued interest receivable	14,021	13,584
Deposits:
Noninterest-bearing deposits	1,080,428	1,034,146
Interest-bearing demand and savings deposits	2,069,031	2,030,870
Accrued interest payable (included in other liabilities)	927	1,018
Significant Other Observable Inputs (Level 2)
Financial assets
Investment securities	1,519,916	1,450,643
Net loans and leases	49,433	70,743
Deposits:
Short-term debt	157,000	38,000
Long-term debt	69,035	42,454
Significant Other Observable Inputs (Level 2) | Commitments to extend credit
Deposits:
Off-balance sheet financial instruments	3,700	3,601
Significant Other Observable Inputs (Level 2) | Standby letters of credit and financial guarantees written
Deposits:
Off-balance sheet financial instruments	120	141
Significant Other Observable Inputs (Level 2) | Interest rate options
Deposits:
Off-balance sheet financial instruments	360	444
Significant Other Observable Inputs (Level 2) | Forward interest rate contracts
Deposits:
Off-balance sheet financial instruments	290
Off-balance sheet financial instruments		(62)
Significant Unobservable Inputs (Level 3)
Financial assets
Investment securities	12,628	13,095
Loans held for sale	22,917	9,683
Net loans and leases	2,835,620	2,681,677
Deposits:
Time deposits	$ 1,034,242	$ 1,047,322

FAIR VALUE OF FINANCIAL ASSET70

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets and liabilities measured at fair value
Available for sale securities:	$ 1,274,312	$ 1,229,018
States and political subdivisions debt securities
Assets and liabilities measured at fair value
Available for sale securities:	188,257	191,645
Corporate debt securities
Assets and liabilities measured at fair value
Available for sale securities:	99,562	100,604
Residential - U.S. Government sponsored entities
Assets and liabilities measured at fair value
Available for sale securities:	778,067	751,558
Residential - Non-government agencies
Assets and liabilities measured at fair value
Available for sale securities:	70,357	46,693
Commercial - Non-government agencies
Assets and liabilities measured at fair value
Available for sale securities:	137,151	137,641
Other
Assets and liabilities measured at fair value
Available for sale securities:	918	877
Recurring basis | Estimated Fair Value
Assets and liabilities measured at fair value
Available for sale securities:	1,274,312	1,229,018
Total	1,274,962	1,229,400
Recurring basis | Estimated Fair Value | Derivative - Interest Rate Contracts
Assets and liabilities measured at fair value
Derivatives: Interest rate contracts	650	382
Recurring basis | Estimated Fair Value | States and political subdivisions debt securities
Assets and liabilities measured at fair value
Available for sale securities:	188,257	191,645
Recurring basis | Estimated Fair Value | Corporate debt securities
Assets and liabilities measured at fair value
Available for sale securities:	99,562	100,604
Recurring basis | Estimated Fair Value | Residential - U.S. Government sponsored entities
Assets and liabilities measured at fair value
Available for sale securities:	778,067	751,558
Recurring basis | Estimated Fair Value | Residential - Non-government agencies
Assets and liabilities measured at fair value
Available for sale securities:	70,357	46,693
Recurring basis | Estimated Fair Value | Commercial - Non-government agencies
Assets and liabilities measured at fair value
Available for sale securities:	137,151	137,641
Recurring basis | Estimated Fair Value | Other
Assets and liabilities measured at fair value
Available for sale securities:	918	877
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets and liabilities measured at fair value
Available for sale securities:	918	877
Total	918	877
Recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other
Assets and liabilities measured at fair value
Available for sale securities:	918	877
Recurring basis | Significant Other Observable Inputs (Level 2)
Assets and liabilities measured at fair value
Available for sale securities:	1,260,766	1,215,046
Total	1,261,416	1,215,428
Recurring basis | Significant Other Observable Inputs (Level 2) | Derivative - Interest Rate Contracts
Assets and liabilities measured at fair value
Derivatives: Interest rate contracts	650	382
Recurring basis | Significant Other Observable Inputs (Level 2) | States and political subdivisions debt securities
Assets and liabilities measured at fair value
Available for sale securities:	175,629	178,550
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate debt securities
Assets and liabilities measured at fair value
Available for sale securities:	99,562	100,604
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential - U.S. Government sponsored entities
Assets and liabilities measured at fair value
Available for sale securities:	778,067	751,558
Recurring basis | Significant Other Observable Inputs (Level 2) | Residential - Non-government agencies
Assets and liabilities measured at fair value
Available for sale securities:	70,357	46,693
Recurring basis | Significant Other Observable Inputs (Level 2) | Commercial - Non-government agencies
Assets and liabilities measured at fair value
Available for sale securities:	137,151	137,641
Recurring basis | Significant Unobservable Inputs (Level 3)
Assets and liabilities measured at fair value
Available for sale securities:	12,628	13,095
Total	12,628	13,095
Recurring basis | Significant Unobservable Inputs (Level 3) | States and political subdivisions debt securities
Assets and liabilities measured at fair value
Available for sale securities:	$ 12,628	$ 13,095

FAIR VALUE OF FINANCIAL ASSET71

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Details 3) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)item
States and political subdivisions debt securities
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Aggregate fair value / Balance at the beginning of the period	$ 13,095	$ 10,518
Principal payments received	(812)	(139)
Unrealized net gain included in other comprehensive income	345	76
Purchases		2,269
Aggregate fair value / Balance at the end of the period	12,628	12,724
Mortgage revenue bonds
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis
Aggregate fair value / Balance at the end of the period	$ 12,600	$ 12,700
Additional disclosures
Number of investment securities held | item	4	4
Mortgage revenue bonds | Weighted average
Additional disclosures
Discount rate (as a percent)	4.17%

FAIR VALUE OF FINANCIAL ASSET72

FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (Details 4) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets measured at fair value on a nonrecurring basis
Other real estate	$ 5,278	$ 2,948
Significant Other Observable Inputs (Level 2) | Nonrecurring basis
Assets measured at fair value on a nonrecurring basis
Impaired loans	49,433	70,743
Other real estate	5,278	2,948
Estimated Fair Value | Nonrecurring basis
Assets measured at fair value on a nonrecurring basis
Impaired loans	49,433	70,743
Other real estate	$ 5,278	$ 2,948

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)segment	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
SEGMENT INFORMATION
Number of reportable segments | segment			3
SEGMENT INFORMATION
Net interest income (expense)	$ 37,294	$ 35,906	$ 73,529	$ 71,702
Provision (credit) for loan and lease losses	7,319	(1,995)	10,066	(679)
Other operating income	8,124	12,004	19,314	22,148
Other operating expense	(32,458)	(32,888)	(66,476)	(64,818)
Income tax (expenses) benefit	(7,944)	(3,877)	(13,703)	(9,395)
Net income	12,335	9,150	22,730	18,958
Investment securities	1,537,090		1,537,090		$ 1,467,305
Loans and leases (including loans held for sale)	3,028,972		3,028,972		2,941,881
Other	401,789		401,789		443,801
Total assets	4,967,851		4,967,851		4,852,987
Banking Operations
SEGMENT INFORMATION
Net interest income (expense)	28,837	27,356	56,691	53,543
Provision (credit) for loan and lease losses	7,319	(1,995)	10,066	(679)
Other operating income	6,008	6,750	12,454	12,399
Other operating expense	(15,354)	(14,372)	(30,178)	(29,690)
Administrative and overhead expense allocation	(15,937)	(13,734)	(28,041)	(27,538)
Income tax (expenses) benefit	(7,776)	(3,076)	(14,924)	(6,690)
Net income	14,445	7,078	27,718	13,501
Loans and leases (including loans held for sale)	3,028,972		3,028,972		2,941,881
Other	92,461		92,461		111,071
Total assets	3,121,433		3,121,433		3,052,952
Treasury
SEGMENT INFORMATION
Net interest income (expense)	8,457	8,550	16,838	18,159
Other operating income	(1,322)	1,092	(295)	1,837
Other operating expense	(493)	(538)	(971)	(1,089)
Administrative and overhead expense allocation	(266)	(267)	(554)	(539)
Income tax (expenses) benefit	591	(490)	611	(1,541)
Net income	(1,100)	1,240	(1,136)	3,108
Investment securities	1,537,090		1,537,090		1,467,305
Other	226,214		226,214		248,455
Total assets	1,763,304		1,763,304		1,715,760
All Others
SEGMENT INFORMATION
Other operating income	3,438	4,162	7,155	7,912
Other operating expense	(16,611)	(17,978)	(35,327)	(34,039)
Administrative and overhead expense allocation	16,203	14,001	28,595	28,077
Income tax (expenses) benefit	(759)	(311)	610	(1,164)
Net income	(1,010)	832	(3,852)	2,349
Other	83,114		83,114		84,275
Total assets	83,114		83,114		$ 84,275
Intersegment elimination | Banking Operations
SEGMENT INFORMATION
Net interest income (expense)	11,348	6,149	21,650	12,156
Intersegment elimination | Treasury
SEGMENT INFORMATION
Net interest income (expense)	(8,067)	(7,107)	(16,765)	(13,719)
Intersegment elimination | All Others
SEGMENT INFORMATION
Net interest income (expense)	$ (3,281)	$ 958	$ (4,885)	$ 1,563

Uncategorized Items - cpf-20150

Label	Element	Value
Income (Loss) from Equity Method Investments	us-gaap_IncomeLossFromEquityMethodInvestments	$ 229
Income (Loss) from Equity Method Investments	us-gaap_IncomeLossFromEquityMethodInvestments	359
Amortization and Impairment of Intangible Assets Finite lived	cpf_AmortizationAndImpairmentOfIntangibleAssetsFinitelived	1,318
Amortization and Impairment of Intangible Assets Finite lived	cpf_AmortizationAndImpairmentOfIntangibleAssetsFinitelived	$ 1,559