CPF - Earnings call transcript Q2 2020 | Central Pacific Financial Corp.

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Operator

Good afternoon, ladies and gentlemen. Thank you for standing by and welcome to the Central Pacific Financial Corp.’s Second Quarter 2020 Conference Call.

During today’s presentation, all parties will be in a listen-only mode.

Following the presentation, the conference will be open for questions. This call is being recorded and will be available for replay shortly after its completion on the company’s website www.cpb.bank. the to turn to like call Mr. over I’d Chief Morimoto, Executive Officer. President, Vice David Financial sir. ahead, go Please

David Morimoto

President Thank Hu, thank the Executive Arnold Chad, With and review Banking XXXX you, Chief and Chief Central Vice me the Executive as joining for Officer. and and Catherine Paul Officer; financial President we this us Executive morning Chief and results Yonamine, Financial Officer; Credit Martines, of Pacific second Vice are of you quarter Anna Corp. all Chairman for President; Ngo,

have a to Investor at The available We prepared we website slide will the in presentation presentation refer in Relations that our today. section of our remarks www.cpb.bank. is

management During statements. make forward-looking the today’s course call, may of

risks, those cause materially and to differ While projected. results may on believe we statements involve are actual from these based they reasonable assumptions,

complete the a to refer now, two For to related of over risks call statements, to I’ll discussion our presentation. please forward-looking of And turn our slide the Paul.

Paul Yonamine

good morning Thank you, everyone. David. And

appreciate rate As State of Pacific update The pandemic the by your start Financial in response on and the very always, as with our to an remain July continues to like the interest infection Hawaii cases rate continues per X,XXX have nation. State XX. Hawaii lowest capital to Hawaii of company. with the we roughly I’d COVID-XX Corp. infection low Central in the of in

balanced negative including reopen We quarantines, of economy evidence mask this September face out out while COVID-XX a required orders, for on state usage distancing. government be by to a June COVID in tourism believe that reopened local managing X, of abiding and The tourism infections. test. provide is social are state’s residents we of way Our state visitors reopening and will

with will business to our countries process, were reopening at Hawaii the through is tourism infection prudently much-needed economy. portfolio, we start to will warranted determined credit Pacific it manageable. credit rates pandemic. bringing the and At our be local Travel and area, other we leaders. to ratings manage discussed back government low between continue the continue gradual have bubbles Central our help a our While thoroughly risk In that by loan to reviewed the adjusted be risk

and Our well well diversified conservative, portfolio collateralized. is

proactively known demonstrated work the during Overall, to we our Protection help Program and significant maintaining continue to programs. a PPP committed while them of providing and are deferral and we to the through environment. our for community the pandemic with loan excellent customers supporting time, our customers service by We or safe needs loan originations as payment remain this Paycheck that

and RISEXXXX the steam the headquarters of major we been in final for public and initiative opening of date making on building full COVID-XX of In revitalization and with pandemic. new area Our continuing platforms testing launch are an the in the digital, construction August. are our has late under despite way of XXXX. good stages track are for online excited parts the in our banking pilot progress, The mobile January and

newly rollout to upgraded our branch ATMs our continued network. we throughout Finally,

activity transaction Preparedness the Foundation. more and digital CPB Catherine to over changing well our work call to like Catherine. the to timed our share meet I’d a our branch turn of our and now see have continue customers. in about to to initiatives of Pandemic the We decline been needs Plan

Catherine Ngo

Thank you, Paul.

disruption in business. be and place in had have Preparedness Pandemic Our Plan any our we not continues to

utmost a a changes plan made priority, have of that reopened return were includes to we and our remains several portion phase office have workforce therefore our temporarily implementing We schedule. recently continuing with closed Safety branch the remote appropriate of gradual a flexible to that are work in branches relevant our safe continue community helping to timely and The be hygiene actions with customers. we will to both we’ve in employees continues that for believe to practices. office and the environment taken, provide distancing active and our Foundation social setup to The programs. enable ensure and proper CPB us

X,XXX Mahalo the quarter local meals to heroes. During initiative provided ran frontline first that second responders and we a Meals

Bricks-to-Bytes, launched Additionally, by services the digital. is helping online business recently take crisis a which we program local through and called to free businesses more their providing

We recovery return also to end communication visitors Hawaii occurs. top with keep to are pandemic encourage of and and particularly Hawaii and the continuing engagement from Japan mind once their

President Hawaii temperature Vice I’d Officer. turn the Martines, we to contact work Arnold screening Banking government COVID Chief Arnold. Finally, now Executive to to are with like and leaders tracing to our continuing with the economy program. and reopen safely, over call

Arnold Martines

Catherine. you, Thank

customers. times. tremendous the our only not The supported effort that loan unprecedented X,XXX million PPP during PPP This throughout employees new $XXX also over involved very was We performance. highlighted broader well the were loans second banking originated as a efforts, solid to successful community was quarter over business that efforts and origination existing our We these both by bank. as totaling pleased the but customers, mortgage company’s

We and for that are the applying our forgiveness near to our preparing PPP portal are to of the the from begin forgiveness assisting customers future. process launch in expect SBA

million other augmented and residential loan offset company that million business quarter. residential $XXX mentioned mortgage mortgage banking demand the by our generate PPP sequential loans the with loan I during $X.X second loans partially for core $XX the were in rate grow earlier, the mortgage total in in environment, XX.X% included also declines was grow or deposited grew able $XXX to low Overall strong, mortgage by were the as by residential bank. funds quarter, This the portfolio to XX.X% categories. company the by income PPP million million second We $XX which Given enabled quarter. by quarter, million million of loan and $XXX sequential or deposits

average in XX fight-to-safety of was points. operating of the were XX a the the customers, increase our by current Additionally, the we reducing in result cost a part given We deposits and basis volatility points total believe of the markets to basis environment. of successful

several be with increased through launch with continue ago. momentum due new COVID-XX environment. expanding us. technology, in banking strong usage the find channels mobile pandemic, nearly over to we banking best-in-class COVID-XX we given relationships outreach mobile priority impacted by XX% and a platforms. digital efforts, to and online operating customers Our close mobile focused deposit for over up continue experienced We our Providing months less activity last on prepare year the enrollments and digital channel with of remains transactions digital on up to increased our stay current a to segments customer creates teams key The as increased XX% contact

ATMs enhanced functionality half of new out rolled through June our to branches we with addition, In XX.

turn risk at ATMs credit before call time, Executive of provide the scheduled details the are year. remaining the New Officer branches to Anna this like installed to portfolio At I’d on Hu, our our Vice to over and and management. the to President Chief be Anna. end Credit

Anna Hu

Thank you, Arnold.

the application and customers of to we since uncertainty our many PPP declined rigorous any provided peaked and and and ongoing well or June proactively excluding deferrals During payment the portfolio loan in approach determine our financial total We payment support approval May loan XX.X% actively commercial marketplace. ongoing with our $XXX impact, of in quarter [inaudible] continued volume second if assisted balances loan our $XXX our in through customers guidance with worked of to reviewing to million as of the well had loan at as and total in providing loan deferrals, the PPP. portfolio, The at million as balances XX. as

totaled payments $XX deferrals payment and totaled loan forbearances loan million consumer $XXX residential Our million.

or We continued to residential our a as payment consumer deferral with customers XX-day support forbearance loan and needed. second

come were commercial a of the some loan million deferral The and XX-day continued took and commercial In leasing period deferral we our at XXX are deferrals of taken still borrowers portfolio, XX. $XXX payments loan provided status. from of in forbearances down category due XX-day June total a amount in in million to real-estate at we at balances. XXX count rental, $XXX peak payment their expect of unemployment loan starting and total to see highest forbearance was the a by The We or of their dropping majority XX-day initial majority XX consumer seasoned supported customers resume balances of and of June but to in comprised and has loans. the and residential our loans The X.X% of planning real-estate XXX investors that XX, with forbearance commercial loan of the second majority take who loan-to-value PPP May loans total a investor, real-estate portfolio, ratio. excluding this the or real-estate strong loan category mortgage off to first are payment

a on expect We basis. begun volume real-estate in yet loan so loan at lower and a of not a deferrals second the commercial and commercial but round payment do to portfolio, have case-by-case

Additional and our slides details found payment loan be on on XX can deferrals XX.

of mention special total loan sequential and increased is loans quarter in $X.X or to During rental, exposure excluding by $XXX X.X% and million the totaled in temporary quarter, largest were PPP The real-estate commercial the the balances. leasing in loans the this due portfolio closure balances. $XX primarily category the which total tenants excluding million X.X% PPP The loan or portfolio category, properties. to of downgraded of million

sponsorship balances and weather loans. to downturn. investors Approximately the loan-to-value also strong these through of PPP special are with borrowers strong received ratios and seasoned mentioned able However, will XX% we be have economic confident

million increased was COVID-XX. XX. approximately be classified received prior of X% balances quarter to sequential to $XX Additional the The mention loan excluding or portfolio experiencing that loans of to found Classified primarily also details were million portfolio can on PPP due quarter XX% the our during loans. $XX increase special balances. PPP Approximately two slide challenges loans total on

times. and David, respectively. good now to real-estate total average PPP Overall, through disciplined weather portfolio. in of These XX%, help David. portfolio loan XX% excluding equity weighted or these our Chief us and Officer. our portfolio believe the loan continued loan-to-values call credit, our and XX% home to loans and these $X.X are unprecedented portfolios Executive billion We Financial XX% our our comprise over diversified to feel balances. commercial about loan turn I’ll The approach President origination, will approximately very of residential Vice we

David Morimoto

was Net on average second share. return income assets X.XX% quarter of average second XXXX Thank was quarter and per X.XX%. was million on $X.X or equity Anna. in Return diluted for you, $X.XX the the

impacted to COVID-XX loss continued provision for due expense be earnings the higher to current Our pandemic. credit by

million, basis. increased $XX.X XX% the or a earnings includes on which $X.X in was by quarter. margin to for the quarter increased pre-tax, environment. as $XX.X loans PPP interest decrease well and X.XX% quarter to net decreased in was interest rate loan quarter. net prior the lower X.XX% in as fees. income the million, Our yielding compared for $X.X The sequential million income quarter net the quarter second to interest was sequential increase pre-provision $X The Net second The PPP, by due interest million second which million lower

The NIM for X.XX%. second was normalized PPP quarter

loan Second banking primarily operating At to came totaled of consumer and quarter of primarily of of our to Net the million. $XX.X compared for reduced million, which higher higher million commissions C&I million quarter by $XX.X the increase Other PPP second offset net charge market benefits. charge-offs higher prior higher well $X.X million second charge-offs was was income compared and allowance other fee partially the from the expense quarter. income credit quarter $XX.X volatility. million the income $X.X losses relatively in to and stock $X.X lower This The XX, the and mortgage and BOLI capitalized million due bonuses, due income. offset for was $X.X quarter. compensation million The to portfolio. in This as outstanding cost prior was current deferred Hawaii in was X.XX% $X.X deferred, million operating was by the or In quarter. totaled which service of loans. June salaries portfolio loan and charge-offs as to quarter origination was prior expense flat $X.X the

loan income. credit to operating decrease in the previous in due compared PPP the net was XX.X% by other portfolio, allowance total X.XX% to The XX.X% quarter is of the Excluding second decreased losses ratio quarter income the higher bank-owned quarter. rate due to tax-exempt effective SBA, improved second loans. to for the was which interest to guaranteed tax insurance our The income. in XX.X% life The primarily and higher efficiency

range. Going expect the effective tax XX% to in rate to the forward, be XX% we

we remained Our to perform liquidity stress and and positions testing. strong capital robust continue

at of cash XX. to will which on Our Board on of per quarterly record be September dividend a of payable share, business XX declared close $X.XX shareholders the August

RISEXXXX online consolidate adoption to four and banking commitment of into this was decided we to of and technology. existing the Oahu customer increased on branches Finally, branches. nearby driven best-in-class by This banking year Island our mobile decision later digital

of million. consolidations expense of As a $X.X these approximately result expect annual we savings

quarter associated in with one-time call million return expect the I’ll to million fourth of in to and approximately quarter. $X.X the $X.X incur also the now third the consolidations Thanks We charges Paul. and

Paul Yonamine

In David. continues well COVID-XX summary, to you, through Thank manage the Pacific pandemic. Central

We credit, liquidity, storm. capital the have weather to a solid and to us financial position enable

economic support recovery support you providing employees, organization. and of in the to to gradually continued time, and As remain our confidence team to the community. Thank behalf and for your you. our customers management address you our begins employees, we’ll any be happy we committed At this On have. questions may thank

Operator

[Operator come ahead. with Piper will from Sandler. question Instructions] go our And Liesch first Andrew Please

Andrew Liesch

Good everyone. morning,

Paul Yonamine

morning. Good

Andrew Liesch

the margins. A question thanks. good, around Good,

the way you do given and the and environment benefits to You on costs good how could any funding seeing side? the guys much did core offset rate a this and are there quarter that pretty go on deposit pretty you’re lowering How just low. room deposit already then more have costs job yields

David Morimoto

Andrew, its David.

firstly on cost. on the net basis funding of our that interest So have reported compression well screens our believe a peers you’re yeah, points XX the basis, right margin, reported to relative Yeah, to-date. we on

of have and to challenges some low couple impacted pretty program. be We there’s to quarters the a going for by the forward, going going to PPP is it but be the level NIM down next

are a recognition. to loans forgiven they tailwind fee currently a will NIM we the So and due they yield; PPP income however, when the on net drag are accelerate low NIM become

obviously, to expecting fee into PPP of we possibly be an range could small So X.XX% see income something quarter. of And as for fourth the there X.XX% that the in the the NIM recognition. quarter of to couple quarter quarters, X.XX% recognition to expanding we’re that does forgiveness the automatic to type the To in for extent to Congress be the any third before loans. range X.XX% forecast assume there, not income does next the fee third acceleration start

Andrew Liesch

of full-term? Okay, what that’s on as loans, you the sheet of many assuming bulk timing? you on to balance to forgiven PPP be down for them year-end as for Do far really are helpful. The the them paid by the forgiveness and or remain expect

Paul Yonamine

you under that recognizing you activity know loans forgiveness for we’re honestly of Currently income over fee some the the the Feds, period, know quite a we’re the and but and Act with two-year hopeful HEALS that’s to, alluded trigger be be with in David more would a some clearly to as that fee automatic recognizing us major the there going on $XXX,XXX, and income. SBA

Andrew Liesch

Certainly.

expenses. And the line, Okay, operating is that’s then deferred there It branch like some some in helpful. ahead question some just the maybe savings of and but just parts also sounds moving last cost salaries benefits consolidation, some one on comp. with with

there – improvement shouldn’t might run that rate? that you you the of some little $XX.X in or If or are from the branch look so that things there quarter, a at this of the had there bit an million other that, be consolidation just on affect

Paul Yonamine

this Paul. is Hi,

some branch the and here. on rationale the that give could me a the expenses first Catherine on of you David consolidation, then touch behind maybe touch Let

Catherine Ngo

Okay sure, thank you.

are our in the able all in others, then four going yeah, in of support the to close these were in-stores social our case able that to three practice four customers. those so this where and consolidation So we quarter of branches, in branches, and of were announced we’re distancing of to we not case our even the to be proximity of them,

at same all to we some we even expense, we calls the a as customers to can about of our that branch course see of and continue and at time these rationalization opportunities been on take these part reduce really this time support and are where for that. So we’ve going look strategy quite a is talking so

strategy be You driver know support of channels. digitalization one and to our thing this an to in customers our important that’s going those is ability the

David Morimoto

And then David. is if add I could Andrew, this

so the $XX to one-time that expense. did this million other costs, of not million consider range closure know the $XX – You for of year. range million guiding kind closure year just million remainder was still to holds non-recurring throughout $XX consolidations we’ve to the range disclosed, on for costs excluding quarterly been $XX we That one-time branch the the the operating

Andrew Liesch

Okay, so questions. the Thank very taking good. for you much

Paul Yonamine

Thanks.

Operator

from please question next come with ahead. our go Bohlen will Jackie And KBW,

Jackie Bohlen

Hi, morning good everyone.

Paul Yonamine

Hi, good morning Jackie.

Jackie Bohlen

touch to outlook on in wanted banking since for tied your those just base also mortgage I growth are for single-family somewhat portfolio and the together.

you’re if Just you’re seeing thinking how you if loans. – you’re quarter there strength of both the sale about beginning the and and the single-family in portfolio of continued know

Catherine Ngo

some I So, hi Catherine here. detail. give you Jackie, can

yeah, banking. had So mortgage quarter a second in we great

years, best and the production years, was we $XXX of in it so million. seven fact In saw

even expect and strong a production our the pipe QX do range. in better will be the we as know news, million currently that You well $XXX shows

Jackie Bohlen

your Catherine, sale where see in the gain on did And quarter? margins you

David Morimoto

it’s David. Jackie, Yeah

the the So an it’s when refi in industry the on expand would have the on normally. have these quarter margins opportunity it does to environments basically bank the and in sale it spikes, and is afford low I gain phenomenon widened gain a rate you second extremely it say margins. definitely doubled right, where second from sale quarter

Jackie Bohlen

quarter? continue you the strength And are seeing third that into

Paul Yonamine

also we as also demand, spend some to division operational poised be projects Yeah, we’re and demand time our we refi’s discipline on winning to home have a of to take we in well, do amount lot a And better still further a more of see streamline considerable and especially Jackie. growing so what importantly, so continuing. lending new seems we’re the and

Jackie Bohlen

obviously unphased almost by just kind you, terms And the on your like know of positive the initiatives, it it’s remarks, digital that ahead. based helpful. full then I and Am the while impacts adverse understanding mean very that’s pandemic, anything, prepared adoption it’s everywhere great. And I of you’re for if Okay, RISEXXXX rates. from Thank sounds steam there are in kind of correctly? you pandemic

Paul Yonamine

know several on to years. you renovation know of RISEXXXX, a the those but there’s Yeah, know components infrastructure, major costs lot of you XX our two there’s – with once main over building, the amortized again actually are especially you

digital, business think going to is especially we to our completing perspective, a online and I tell renovation wasn’t. because does new is one I was was continue milestone know for real locally you a than financial the finalize but think mobile timing the sign, the becoming relevant. to regard it We I but so No wish could it especially – trades you know positive it’s now digital the ever From know more you be and improve a pandemic, platform. add real expected strategic, in here to more our digital institution, our investment the trade. commitment our for you as opportunities

forward online month and go-live looking our to mobile on We’re platform. new our next

Jackie Bohlen

great. step Okay, back. Thanks Paul, I’ll

Operator

Please [Operator from Feaster come ahead. Instructions] go next The James. with will question Raymond David

David Feaster

Hey, good everybody. morning

Paul Yonamine

morning. Good

Catherine Ngo

Good morning.

David Feaster

I by on a I – just deposits. wanted PPP dollars. to to just driven Deposit you was tremendous. lot know that’s wanted start of been growth there’s obviously

that’s growth, sticky? third truly account guess – early expectations think much know and Just then and How for, organic deposit how of have like how curious, is true again, already much the spent I been you quarter? this core trended PPP of is the much in growth maybe how dollars you

Arnold Martines

is Yeah Arnold. David, this

did customers move commercial, in environment, but and we we our from you outside the commercial good market feel primarily customers to we economic deposit the that, do know mentioned of increasing as loan mutual balances sequential deposit due the build to money the back originations. forward. levels see some as But PPP So bring retail pretty you funds environment, quarterly was outside due operating

to – decline from PPP we’ll Although because our that see some funds, know as decline do base good positive start despite But we you about that. the apply feel we know see those will customers small some our spend deposits we loans there. you the pretty environment, see did operating for a customer business in activity

David Feaster

a on the origination activity and have have distraction. major loan side, just on other Obviously been of the then the the side coin, great. modifications that’s PPP you going any Okay, And thoughts on just forward? might program

that appetite Just credit tightened you’ve demand how the for new by seeing much know credit, where decline curious, you C&I of are whether Just pulse market, driven just and the of for any was just utilization new you overall. your thoughts credit? on a the the box, lower

Paul Yonamine

we’re Let of off the know can with on finding there during new of vibrant. robust dependence as loan despite it was and in me wasn’t the a pandemic you sector rather is here if what origination the in. in start Hawaii the the lot you with there Arnold, system then exception tremendous maybe chime and was non-tourism shock tourism, PPP. our Clearly and still QX, But

redirect QX we’ve And that during some a leadership able been so Arnold’s exist of the our efforts non-tourism lot on to here. with, know you of opportunities

great for learning opportunity to So portfolio, this that our Arnold? more has been anything add but us further a to to diversify

Arnold Martines

business, commercial, agree I real our our No, you for for know said Paul small what with our businesses. estate

We sidelines There do are looking activity. with QX. fairly mortgage to on earlier, of continue our be business will on through spoke Catherine course, we are touched robust it, And resi mortgage, investments. expect money for the our as seeing some that we people

David Feaster

Okay.

So expecting in modest flat loan then maybe balances? decline to again a

Arnold Martines

the prospect. Yeah, timing you just it’s on the PPP know forgiveness

over next think timing. in it’s the I next quarter major and you I the – changes know the really how our be quarter, portfolio will think I driver think this – that PPP so

Paul Yonamine

that also Paul again. good be as – hoping HEALS Alright, expectations second customers and well. we for federal for know some a We’ve have there’ll is – the loan small, subsidy program, been medium high programs we’ve you our as this Act here

David Feaster

the turning already thoughts that those Okay, – about amount I what’s guarantees? going the be book, expire, then wanted decent and additional touch case-by-case or a a wanted rates. conversations peak. but builds any in what commercial as the I And re-deferrals downgrades of collateral potential Any one And starting on deferrals Expect read your looks basis, risk from I to just you reserve guess lastly, rating down remarks. credit from commentary then, It are personal in prepared to forward? and on the re-deferral then the like it’s in helpful. – there, going re-deferrals the on early what’s a do the that’s side? get to appreciate the implications migration? And XX-day through X% as me, come last in resi you we’re on but negative

Catherine Ngo

when in and mortgage This portfolio, forbearance of can that start. details. last Catherine We the in is I’ll and continuation finally all came for to we the a the the be are going front. here pleased we going then reopen mortgage on of economy it it’s however economy and that to and that see deferrals But hope Anna really mentioned, turn Okay, Hawaii. to on more you case-by-case any trend a further C&I basis were course for really our here as on see front the month to the depend number down on

So with that Anna, maybe more some details please.

Anna Hu

downward. to couple know started add Okay, commercial the the in weeks last book. little deferrals I’ll you color trend a the commercial Actually, we bit just of to see book more

of So customers to see as trend numbers continue deferrals to numbers coming Catherine we XX-day payment off And expect continue pleased decline mentioned are active downwards. our book, on see to those payments. those their do we to residential and are resuming

to the level remain currently know to and turn the I build, On the on maybe at the front, you it it David. see stable do sort level we will it unemployment, is of given that consumer then of expect reserve

David Morimoto

first We’ve forecast. due that of primarily the its built quarters to points XX reserves roughly obviously, was by the in and David. economic two each worsening Yeah, basis of

assets So on that To we be based reserve going X we going dependent on we Tier the we would our currently expect to credit and classified there. economic said forward, continued to and monitor build. the largely see peers classified ratio, extent favorably to Having it’s migration. and forecasts that, continued that compare our assets ratio worsening, ACL,

is one the that So closely. pretty we monitor ratios of that

David Feaster

everybody. helpful. That’s Thanks

Catherine Ngo

Thank you.

Operator

Hunsicker from Please with Compass Point. The question next go will come ahead. Laurie

Laurie Hunsicker

good Yeah hi! Thanks, morning.

Paul Yonamine

Hi Laurie.

Laurie Hunsicker

included us maybe next core got your the round you PPP Andrew’s the gave quarter in basis the help margin on half XX wondered Just of excluding know a in jump just and comments points or if look PPP, say can you’ve year it going at you just back I it back question the about the I numbers, suddenly because whatever that on you margin, if David, think know that’s and of is, come just margin. XX% to

out impact Thanks. about you’re I’m you help point much trying to think So could cost PPP the rather putting it or guide if of deposits again PPP, just your the figure us low. to excluding incredibly how into maybe Andrew’s either is because

Paul Yonamine

Yeah, sure. Sure, Laurie.

Arnold Martines

a here. parts of Obviously lot moving

think a basis. to at were so we the way is, think about it I best on reported X.XX%

If you back out of the get impact PPP you to X.XX%.

per maybe like. So we points the – what were basis XX core a On basis quarter down we on sequential its roughly would XX a is basis quarter. basis, think points core point we compression basis I could in X basis to XX

Laurie Hunsicker

Okay, super helpful. okay, that’s Perfect!

hotel questions then on looking David, Catherine or and this know I’m nine I’m book. just some but I or XX. mainly if is slides don’t just at looking and you slides your your and Okay Anna, at

correct? deferrals, reporting PPP X% million, million Is you’re your of a Your hotel book you’re so of that rate. $X at is deferral including million $X $XX and

Catherine Ngo

Correct?

Laurie Hunsicker

I that’s us one mean your secured. is, the hotel you Thanks. of it? can the That LTV XXX% you’ve that? you the if color mean, any the help real and around you’re can I think country. book give What LTV, lowest other on about got us too And is in estate maybe

Catherine Ngo

Yeah.

it’s $XX million. you our is as You small mentioned; relatively book know hotel about

and We XX%, that total to strong loan-to-value our with average names the X.X% with hotel books access comfortable liquidity strong book. Our loan and we of at is support. weighted our feel sponsorship have on

loans the books. So yeah, on couple it’s just a of

Paul Yonamine

Paul. is by a financial hotel this portfolio. piece lot Laurie, and strong not sponsors yeah, our So our of book big remains supported fortunately The it’s fact of is a mainland that

Laurie Hunsicker

restaurants. on Okay, same question

or XX% the that? million estate real are PPP, Do $XX LTV secured. $XXX your you you have So your book excluding million on

Catherine Ngo

Yes, our at restaurant XX%. on a combined weighted average LTV is

Laurie Hunsicker

Understand.

and Do on have you on the an that? great, LTV about what Okay then retail?

Catherine Ngo

portfolio. total XX%, mean combined and I Retail and so investor its together, also at combined, is when owner-occupied

Laurie Hunsicker

Right, right, perfect.

is then just retail. much pharmacy, retail, of grocery and book How etc.? Okay about anchored, thinking your your service

Catherine Ngo

From actually a standpoint, it’s low. retail very grocery

center about in total shopping So million. $XX is

Laurie Hunsicker

no have you and Okay, mall correct? exposure,

Catherine Ngo

Mall traditional sense, not the exposure, in no, mall. traditional

Laurie Hunsicker

great And your What how the here mainland? leveraged Hawaii And loans. more one versus Okay, just is question on much thanks. that regulatory then then of is book definition? loan for

Catherine Ngo

Hawaii so leveraged we National about transaction about and in call is the our that’s book. $XX what about of X.X% predominant, total total, Yeah, $X million, $XX million. highly our book million, loan it’s is

Laurie Hunsicker

Okay, that’s great.

commercial and commercial last estate from office Okay actually then you’ve real just I’m real sorry, me, and that do figure; it. LTV question got have one then if estate, you

Catherine Ngo

office is So XX%. average commercial LTV weighted about

Our there $XXX million. about total is balance

book. very, that For small it’s mainland very of

Laurie Hunsicker

Okay, okay I wanted last go And then question your back to David to just great. on comment. my charge-offs,

were million consumer what that Is said of from So the looks the consumer. unsecured million. $X.X is $X or and Hawaii was charge-offs that most you Hawaii like came that It number?

Anna Hu

go take Laurie, I’ll and Anna. ahead that. this is

for consumer yes, consumer, its as So unsecured auto. well Hawaii as

Laurie Hunsicker

okay. As do amount your And have well unsecured then you is loan Hawaii auto, what book? of as – the dollar

Anna Hu

book loan consumer Hawaii Our is...

Laurie Hunsicker

you follow-up Or can guys offline also with maybe. I

Anna Hu

consumer total consumer million, two-thirds total book loan or book Hawaii X% our book. our that’s $XXX about is Yeah, of of our

Laurie Hunsicker

unsecured that? the Okay, and piece then of

Anna Hu

about be million The unsecured $XXX it would or of XX%. piece

Laurie Hunsicker

I’ll Okay, leave it great. Thanks, there.

Paul Yonamine

Okay, thanks Laurie.

Operator

remarks. session. question-and-answer the our concludes this conference closing Paul Yonamine for gentlemen, to turn like over I back and Ladies any to would

Paul Yonamine

earnings very you, much. quarter Thank progress. of Thank future to our you opportunities very you XXXX. update second in on forward to for Great! much We Chad. you look the Thank participating our for call

Operator

Thank The for has Thank you, concluded. presentation. conference sir. today’s attending you now

now may disconnect. You

Central Pacific Financial (CPF) 1 Aug 202020 Q2 Earnings call transcript