CPF - Earnings call transcript Q1 2022 | Central Pacific Financial Corp.

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Operator

00:02 Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Central Pacific Financial Corp First Quarter 2022 Conference Call.

During today’s prestation all parties will be in listen-only mode.

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

David Morimoto

prepared XX:XX Lydia. of Hu, is Chairman; Executive as Officer. Corp. Chairman our President we of Thank Martines, and and have joining for With supplemental Arnold review for cpf.bank. you, XXXX Officer; are the And me XX:XX Vice thank Credit Chief section and Chief release the Officer; that Anna this financial Chief presentation at Paul Relations Pacific President Executive and on Executive Vice We our results Central the provides morning available quarter all first a slide Financial you Yonamine, details us website of Ngo, Investor Operating Catherine additional in and

management actual of that materially reasonable to on may forward-looking course are these cause statements, assumptions from believe projected. the today's may while results statements that make we During based those differ involve risks call,

the our For And discussion related two the I'll our Yonamine. presentation. Chairman CEO, forward-looking to refer Paul call a Slide turn and of statements, now, to XX:XX please our of complete risks over to

Paul Yonamine

David, everyone. good Thank and XX:XX you, morning

Central we interest always, your Financial in appreciate Corp. As Pacific

launched exceptional new Banking our successful for. which the offers holders and service strong relationships this our Hawaii last bank, brand banking transformation November campaign we well market holders quarter a and customer are digital Hawaii, class to Way technology given XX:XX touch in in rebrand month, focuses launched checking customers customer account the approach build in our We strategy. that CPB upon over checking and digital earlier product Digital are known account further today engagement, on our high-tech, to Shaka business the our Building to opportunity best great XX:XX providing called updates in continues on are pleased grow share financial as digital provide while XXXX XX% results, first now as a high that our Our we us engagement. of in Shaka to

February, At announced and and was expansion Swell beginning this The strategy continue advance money a at round we very year line last group preferred the continue that technology new recently potential fintech about our completed it US is our launch We opportunity. credit to CPB optimistic summer Banking-as-a-Service same XX:XX expansion. a incubated as to In service we CPF market fintech discussions addresses year. in. partners on a Swell was Series Banking-as-a-Service believe Swell's formed Swell we entity, large Financial, call that with and as product the in mainland unique which also banking $XX of strivers. publicly successfully an the of funding in million participated platform. with checking integrated app several the sponsor bank serving track the We future which underserved The utilizing product the A other the in remain for time,

loan economy the the our and on Vice-Chair. our to selective are our in will profitable efficiency back-office new Hawaii this year, of a be digital a talk Executive our and that who XX:XX system origination throughout beginning this Catherine at initiatives. we continue to such parties and involved. XX:XX collaborate developed live went initiative position year, trust here and is consolidated about strong encompasses system that and we We progress as Next Ngo, growing deposit management this automation new Catherine? business here another focused area, make on we seeing business of interest areas both with, being as are other transformation we are for all sustainable models but digital on Finally, enhancements

Catherine Ngo

Hawaii nation, all of environment Hawaii giving you, sense be normalcy. update start of to a I'll quarter along to pleased Thank you an the the during on the COVID-related returning nearly Paul. with removed is and restrictions first by XX:XX most

economy require have state ended positive a fully International the test Japan returned that requirements yet to Japanese Golden each X.X million program the visitors not continued its to limited Month-to-date development, up up state. started international way. air March. Recently, of for we from have Travels and increase XXXX Japan With Hawaii's in to Hawaii all meaningful Safe significant XX% of pre-pandemic about made XXXX couple visitors COVID coming accounting in are people avoid a to pre-pandemic levels have quarantine entering visitors April ease of Our the a has to year, to tourism Historically, be quarantine visitors. with average a vaccinated negative arrivals portion surpassed seeing a despite weeks. April of visitors or in XX:XX about visitors in Week island.

an is anticipating company Our in We given opportunity the Bank, to are us believe an starting strategic we Japan and relationships. visitors. increase our also is business XX:XX travel Japanese for strong this resume differentiate to to

statewide in Our rate decline and continued went unemployment X.X% XXXX. to to March

with very as $X.XX track Overall, XXXX, of just XX. of year. points of housing basis single-family in in remained Our a assets soaring is asset up March strong previous total recovery. which new quality with XX% Hawaii non-performing on continues XX:XX million to X be Hawaii to remains home very to March record assets price medium Our our market of strong the high of

X.X% total Additionally, total loans. of criticized loans were only

just Finally, Martines, turn Arnold like XX:XX the charge-offs quarter, over Chief of call had net to Operating during to Officer. I'd Arnold? President now and our the $XXX,XXX. we

Arnold Martines

$XX sequential was broad loan categories. million portfolio increased PPP Thank core the $XXX core forgiveness or paydowns all Catherine. loan growth In XX:XX million. based across offset you, our was first The of by almost quarter, X.X% partially quarter, which loan by

on business March fiscal year. This remaining as small our XX:XX home million being by first in As in progress million. as recognized Central X expected, only to loan us offset of Lender major residential SBA mortgage outstanding more than named seasonality balances to sheet XXXX the of by proud during Category loans loans strong leader and balance $XX combined. Year office the of Hawaii's PPP to [indiscernible] CPB forgiveness the the Hawaii with was XXXX slowed originated growth rates. quarter equity rising interest well continues the $XX for due SBA banks is Xa Hawaii other as with Bank Pacific be XX.

We are pleased businesses, CPB, strategic pillar to for our empower a and to Hawaii. support people Hawaii mission small of continue the

strategically Our XX. growth loans During net were had consumer in FICO $XX average portfolio. limit and continued a diversify the quarter, the our and all purchases established was auto our first unsecured mainland we who first quarter. The credit and purchase purchases vendors established in weighted quarter during with our complement within XX:XX million score of consumer the

of X% at including loans, March and $XX pipeline write-off experiencing first since X.X% product our both recovery, current near-term. from pick portfolios in a commercial total quarter or up mainland mainland of categories in XX, are we a consumer quarter. loan steady after mainland continue purchase expecting maintaining level have perform well. to our slight of total with and As deposit Hawaii loan unsecured loan loans were XXXX, the XX:XX and card we all consumer auto our healthy around and We the economic further portfolio, consumer total approximately Hawaii's anticipate Finally, its by With during inflows million growth XXXX. the remainder significant the we deposits loan decreasing throughout had prior core trends to

of our first points. during the David? Additionally, steady XX:XX over Morimoto, the Officer. cost average just I'll at Financial turn total to X all deposits Chief David quarter now basis call our

David Morimoto

X.XX% in also to net $X.X XX to prior interest in in X.XX% quarter. $X.XX fee was compared the net process to interest was balance quarter the Our income XX:XX X.XX% was X.XX% was to interest was $XX.X first Arnold. quarter ago. a non-recurring you, down. quarter. NIM XX:XX quarter the income million the increase net up $X.X hikes. and due anticipate return margin income first assets decreased income interest diluted rate quarter. further in first to interest per fees The included we, the At recoveries. prior an the sensitive interest net share, year interest PPP diluted quarter million million equity quarter million which less loan fees Net compared Fed average from average margin PPP on in for with the XX.XX%. included as The from prior forgiveness and or Net million. the compared same slightly Net decreased $X.X recovery and Net in Return million, Thank prior $X.X on million our X.XX% normalized during asset quarter income $XX.X PPP first million share the XX:XX winds will per trend and therefore, by first remained interest income was for $X.X $X.XX unearned the March or in the $X.X quarter of for PPP sheet

First to income. Other quarter million previous was lower which life from $XX.X and was in bank-owned operating prior quarter, several the insurance other a large one-time banking million, by included quarter, was operating decrease for was decrease $XX.X expense mortgage the driven first XX:XX quarter compared million income the expenses. $X.X the which

to well as first and lower and accruals, market-related the trended incentive quarter as down including expense. due adjustments, less compensation in commissions benefits seasonal total and Additionally, salaries compensation deferred

The year driving our quarter. on to improve three with be the on $XX.X We other $XX loans, Going consolidate the efficiency. plan two the scheduled with forward, $X.X credit XX:XX this million slightly additional to PPP in loans. range. to quarterly recurring to we another million three leverage continued operating a expect $X.X quarter operating in to reported X.XX% economic of in in At outstanding strategic will and effective million million efficiency expense our credit expenses. the forecast losses loan XX:XX continue XX.X% In is second to our executing improvements savings XX:XX the March branches and that credit the go in the for $XX lower to rate quarter. first or decreased initiatives are forward we focused remain ratio due estimated XX, We total annual operating excluding the other to branch million. quarter quarter in for The was first expense consolidations to from allowance third due losses portfolio. positive at XX.X% tax decreased first the The provision our

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

rising income rates investment interest on quarter. of As in equity moved sheet. first to in the available reflected in market valuation million securities larger portfolio XX:XX impact accumulated other portfolio our total position, transferred during further loss which a maturity unrealized is for a our $XXX securities held mitigate we balance into to result shareholders net To sale comprehensive

quarter fixed investment position shares we repurchased additional $XXX Our an of a on rate Additionally, pay of per of remained floating we million first executed $XX.XX. capital during received strong share cost million and $X.X total swap XX:XX forward-starting XXX,XXX or interest a roughly on cost an the at two-year securities. average

payable a XX. of $X.XX quarterly of record Additionally, which our be to on Board now I'll share, return call per will June XX declared on the to dividend May shareholders Directors of Paul. cash XX:XX

Paul Yonamine

had with and solid Central asset a quality. first capital liquidity, XX:XX Pacific David. quarter and be strong to Thanks, well-positioned continues

We supported you XX:XX Back like confidence expansion grow Swell. that we address management company continue through be of the starting our you. continue our time, At your and good to On our be in XXXX may continued our and to any market for With to of would for have. environment. I and will believe support and and organization. Hawaii initiatives, another to mainland share in with execute questions on this our strategy you, pushing optimism, will you to team boldly to economic on by we Thank behalf happy strategic forward are introduction thank a much Lydia. employees, personally expand pivotal parallel year the

Operator

Raymond XX:XX Thank question Instructions] of [Operator today first David you. from comes Feaster our James.

now Your line open. is

David Feaster

everybody. morning, good Hi, XX:XX

Paul Yonamine

XX:XX good morning. Hey, David,

David Feaster

that come the want I outlook, wanted loan some with to the XX:XX commentary the segments expecting to strength? in prepared drivers expect the growth. -- any whether regard through US touch walk you're much growth could most purchases What the had you growth I accelerating that on to seeing of maybe the us expecting loan Hawaii just organic How Mainland? versus you supplement from the then just And you're to remarks? you're you'd additional

Paul Yonamine

let had see, XX:XX Arnold respectable Sure. question. a Arnold? you happy as to I’d that David. that, but pretty And growth, Martines on quarter we be can have take first me do

Arnold Martines

XX:XX Yeah. Thanks, Paul David. and morning, good

loan our about optimistic pretty are we year. So, for the growth

Mainland also us going with on drivers our commercial where think continuing the I be construction, as to seeing purchases the our the as side, nice the but right mortgages, now is Hawaii consumer well strategic growth for on we're book partners.

increased, to this we So, refi to those has I XX:XX know rates areas have residential, growth market, regard the drying certainly us With think drive interest are that basically that's all think I up. going the for year. impacted that's

saw market as we we tail think first but move I to dry expect in a going we that's of forward refi the that up. quarter,

at market term that purchase and our near strength. refi, we – are David, million As joint about position developers, looking optimistic just the range in production levels we market of [indiscernible] Hawaii. XX:XX in normalized in know, have And as pretty here with of you well so, we're with are our a because ventures the looking million for the $XXX realtor as we probably to strong $XXX

still high affirming So mid growth to loans this for all think in we year. single-digit all, I are

David Feaster

any purchases does that And in that? helpful. Okay. XX:XX include That's additional

Arnold Martines

to I of going purchases. is has but become model. it business our be more that purchases, are absolutely really Yes, XX:XX know is putting part -- Purchases it we

to continue believe our auto loan continue and loans and strategically we helps make to as diversification We going it a extent purchases at to as unsecured auto portfolio augment the -- these partners loan look that well forward we yield. in will to for

David Feaster

outlook commentary sequential to Absolutely. And to how drove could bit decline? just balances overall forward? be bit usage thus some helpful? the there, Shaka just little just the maybe what it on growth your you trending just a about into PPP going thoughts Was deposits? would and talk deposits, digital It's account. switching And deposit XX:XX seasonal gears a maybe, payments, growth tax about but maybe continued any for initiatives in great again are cross-selling little the then And far expectation for see

Arnold Martines

David. sure, Yes, XX:XX

in we deposits, we we – the few going to quarter, regard few quarter, actually a was it deposits actually to customers actually but the some fourth first in with thought fourth a had quarter. carried the came be had that related larger to it So over to

debit early really that activity seeing it's transactions, All type in robust mid-single-digit this was deposits. we And Well, had still functionality. have anticipating work are see we're in in card, so, all debit the deposits. progress some plays multiple dynamics accounts, of XX% the With to card are I point, by year. fairly to how to XX% customers XX:XX earlier growth we for for we market moderate person-to-person that this regard going you talk Shaka, with to payment it's say But made. accounts, too with pretty the Paul say as on balances, the activate mentioned can almost X,XXX pleased active, pretty of as or that fairly the out those cetera, using et decrease whether utilizing having to probably over type I'm we We're we the types why ACI's still just our have us to know active as opened them [indiscernible] balances start -- deposit, to would Shaka, deposits, all, define are because overall, still we've increase we usage, At a new mean, direct that transactions, up their in I time. and deposits. we're I as pleased just reason customers about accounts accounts deposit, direct about a we'll that bank see mobile boarded those

So, quarters. in good future progress, more to come

David Feaster

just might on are? initiative, that start for completed, XX:XX you could and just some the seeing That's the expectations have might and the funding are? maybe just any that through just maybe launch? the got we And where program service the banking just are then walk in when you We've then we terrific. where touching contribution? steps that What And as timeline was curious we next a

Paul Yonamine

XX:XX Sure, David.

been on, investment very credit progress schedule, hard we far last summer. be about at see we're the a you making be And of I relationship in look our our Swell management to Swell so And that allows David an Pearl us now it risk-adjusted advantage a to that our additional and able Banking-as-a-Service this on built And and -- very a iterate quarter, think competitive to City our that very last this at XX:XX start mobile I to features So with to in call our take we're agile based the we institute pleased really risk-adjusted initiative, test offering, that and approach. our with again, a to able We’ve because in Elevate that XX:XX we're of Swell also of just lot continues have investor out is David? months be some our to several how hoping opportunity really with and because to point once risk. we as yet and is application talked it's launch again have in take will the it. Colorado. architecture especially think on on recall sponsorship scale important around we time, the wanted a called past and had management. and at I touch the for learn if this interaction CPB app,

David Morimoto

Paul. Yeah. XX:XX Thanks,

So, and unique is, David, we've to Swell we built referring something again, with rather Elevate. is what Financial with think Paul

So on with credit the program, Swell product, net part credit providing to it's of Swell of Swell the Swell credit there the is lines. unsecured absorbing a credit. lines out so worked Pacific accountants of and losses the of figure XXX% with credit for the Elevate our accounting is Central lines doing But credit guarantee, is of what's -- for Elevate unsecured called but be Swell underwriting lines as the is, the Elevate credit unique will is line we

deposit to credit those credit allowance sheet, we something charge-offs Pacific They Central credit think provide on at something have to So for Pacific an any unique unique, Central Pacific's Again, I to losses for will also Central and not Elevate valuable Swell very will we negotiated moving that record Pacific providing will XXX% bank. are while net and balance a cash that forward. the going XX:XX fit guarantee. is is be done be something again, providing So lines loans. Central we've not we think will of

Paul Yonamine

wanted again. cost touched add under total we is million the David, quarter, that It of books. last this we a our accounting invested Swell. on Paul to of $X the just And I again as into method is XX:XX treated also on

able that to also control we control, that Swell that what expense happy projected. We report of beating coming entity. have we are to don't originally been less had I'm they have than demonstrate is their in

So there is absolutely no on issue sheet. investment on carry our amount we the that balance

certain is, very the with component, and and partnerships, So with later we new net these where that and them services if and have progress again, a of pleased was fintech we we're to we Thank working naturally, launch be that touch on are you're also Swell with interested. that we can will fintechs affiliated David, number you.

David Feaster

you. Thank helpful. That's XX:XX

Paul Yonamine

XX:XX Sure.

Operator

XX:XX from question of Our next Sandler. Andrew comes Piper Liesch

line Andrew. open, is Your

Andrew Liesch

everyone. Hey, morning good XX:XX

to there Just And benefit points there next with what to do XX the deposit about sensitive, right shortly mentioned maybe here, this with raising a thereafter. another but is Fed you the basis is if basis maybe you we be from of get -- you pricing, detail is are loan going little expectation beta, sort like XX expecting points any a there some that? asset away month. going more How to wanted talk be bit that margin -- the

David Morimoto

XX:XX Yeah.

I David. [indiscernible] think

there, the modeling and we average think increases. especially conservative lot modeling of point we we're need bit the may -- data X%. as XXX in by we've is don't balance stated, little net goings a interest roughly basis being quickly, deposit is that slightly be embedded on the the deposits. a So of there too income of there, but the increases that we're hopeful of asset largest reprice the XX in in-determinant, the Obviously, XX% We weighted assumptions sheet modeling a to early sensitive, early shock rate

Andrew Liesch

XX:XX Got it.

of $X.X is are what sale you guess gain it curtailed on other that Okay, in then, versus rise there, mortgages guess, balance on [indiscernible] the balancing, production retaining them I I some number so have but still of that -- you selling that's like these going first have the some quarter rates helpful. mortgage forward. sheet kind sounds And how tailwinds, million for or in you just had the

Paul Yonamine

has XX% probably We're to remaining. mortgage bit, will we on we Andrew, to originations should that $XXX,XXX that retained more discussed to gain stay on balance. level, we're now balance sold the is Yeah, a quickly. of result course, trying it roughly XX:XX to stay kind in assets getting but more with sale, company prepays We've per historically, rather of rates $X the above the trying know, we quarter path, a to we're but down maybe million and retain trying at residential as that of retaining on about stay the define X%, it sheet, mortgages one coming all

So most the sheet. our negative one assets of on [indiscernible] balance

may quickly. X% for away while you rather be yield enjoy a it can you a of So from period taken time,

So to we of XX-XX. course, stay are kind at trying

Andrew Liesch

Right. XX:XX

from Okay. Thanks. queue. step me. back it in the That's I'll

Operator

XX:XX from question go Our today Hunsicker Laurie Thank next [Operator Point. Compass you. Instructions] of Please ahead. comes

Laurie Hunsicker

was [indiscernible] about you back of how are in Hawaii-based that? can Hi, terms here, where us growing of hoping based with thinking good I XX:XX and morning. loan we your you you're and to the could refresh just thanks go Mainland book

Arnold Martines

Laurie. is This morning. Arnold. XX:XX Hi, Good

Laurie Hunsicker

Hi, XX:XX Arnold.

D. Martines

to XX:XX we we're other Laurie. regard balancing year can categories, in have say do for selectively that while transactions Good we how loan over categories. looking some I other portfolio grow with morning, would [indiscernible] the this pipeline product the

of combination As $XXX were that's the million, end quarter, about of of Mainland. we the a the Hawaii and first

growth, we look based and for it's So large, big on selectively I but yields. would risk would be to say, a a driver going not

Laurie Hunsicker

it, I were you said $XXX to XX:XX right, okay. just is you make I correct? total, that million sure wanted that Got heard

Arnold Martines

million. XX:XX $XXX

Laurie Hunsicker

$XXX XX:XX million.

Okay.

Is guys So heard you the year. that had -- sharply. of at pretty that's I $XXX down million end the

Paul Yonamine

just Mainland, Mainland I circle combination the on number of can I with Laurie, and is you million Hawaii. XX:XX the detail. just other referenced $XXX you think that back the I a is think

Laurie Hunsicker

Perfect. Perfect. XX:XX

consumer on then And Okay. [Multiple Speakers] the side

Arnold Martines

XX:XX Let me clarify.

about million Mainland So is million. is $XXX Hawaii and $XX

Laurie Hunsicker

okay, that's helpful. million, $XX XX:XX

so wow, so, Okay, that grows sharply. pretty

on obviously then going think we're us remarkably on about you've it. credit I a that mean side, coming about is but which charge-offs consumer consumer and those and can are the side, got specific bucket consumer is help of follow Swell, seeing up to clean, your I do you the from? Okay, lot the bucket want only you and buckets? that the area really how are charge-offs thinking or And on

Anna Hu

XX:XX Hi, Laurie, this is Anna.

Laurie Hunsicker

XX:XX Hi, Anna.

Anna Hu

XX:XX The purchase bucket charge-off for the coming our about first actually coming Mainland consumer is XX% And book. and of for unsecured consumer portfolio. the Hawaii Mainland primarily small consumer about amount, in quarter comprised XX% from from that the fairly

Laurie Hunsicker

XX:XX Okay.

$X you're certainly a with questions do And -- was can million I $X think mentioned to don't very here, I a versus high color refresh? And I couple around Elevate decided or investment very, Swell, Swell, is equity consumer had Paul what have million just you I another I Elevate and the mean that? you're you $X.X Okay. your is that. if initial FICO heard invest us $X.X on to unsecured give guys book million. planning rounded the Do of any million? your have know in you if

Paul Yonamine

is the Yeah, Well this Laurie. – Paul, -- XX:XX to

in lot million. total a at we we equity, $X incorporate entity, Swell $X.X So incubated cash an was of to in Swell million in refer a it's million as we incurred the as it additional that so while comprises we and costs $X.X the what there

Laurie Hunsicker

it. it. Got XX:XX Got

next to of refresh How how thinking there is this in are also terms how terms you any going the of in book and consumer FICO it that? year? on in the break, then of about loans?And bucket about year to put plan where you're you're thinking much Okay, terms

Paul Yonamine

Sure. want Yeah, so we our how we launched had a extensive on Board, we approach Swell. discussion very with XX:XX an take to risk-adjusted

projections, will $X payment, time, that our be And our again approved in million make to is at well default. will cap of something year. learn, as in loan represents us dashboard able this their Board we by at this again current we iterate, to for weekly was of Swell terms by south That originations have fiscal so a our origination, a adjustments, look budget, where

structured going it's quite credit plan play things manage current game we I out so we'll the that's the forward, And to think being risk. current well the year. And sure And for make year. see how that

know, in Ukraine, the we slow it's and a environment learn. with As have war and on, forth so today iterate and and to very dynamic so you rates, go and

Laurie Hunsicker

XX:XX Yeah, and no, refresh still scores FICO I hearing range million. love for are a do so, the you're in on or $X the have going X.XX that targeting of you you

Paul Yonamine

Yeah. XX:XX

this above, are subprime which has very we're -- but and FICO We we're over neoprene endeavor about experience credit market naturally at again, subprime, we talk I going huge only Laurie. is and the US. So, but where that and not there an call striver's approach all, opportunity only the in going group. of analysis to in we think where doing close robust we a have a neoprene they scores, Elevate they is not decade growing that, utilized And above, more Mainland to hesitate and -- credit because a different XX and factors,

So really with pigeonhole don't again, ourselves particular one want I once to FICO score.

Laurie Hunsicker

common I just say very, conservative, think I would be south I I obviously their of I definition very of where guess, coming right. million all tangible with I in market million concern Okay. $XX with but in XX:XX is that of mean, of all some of people my from subprime, break X.X neoprene. is understand you're cap I of that is guess, tend differently anything Elevate equity, subprime, $XXX to mean, I

Paul our so in on expect of Swell there, for do to Elevate to now substantial right the So so potential risk understand to million loan. is I $X and a what XXXX number if what performance would I are all a drops as you little a just help amount there I'm bit, then XXXX. you potentially us if bit. you I it that projection trying can is mean, little you credit if a putting understand guarantee guess mean maybe

Paul Yonamine

Sure. XX:XX

So, Laurie.

swap Elevate literally default we in, put David in. with interest we credit arrangement our is in explained the have deposit off, that First earlier. priority that with on a that currently interest they bank have preferred a a where The

or the regardless from under credit-default condition their them the so that a valuation agreement, their And of it. preferred on secure financial we X% terms actually of with interest deposit

of this. scenario really we learn this striver's So and this after where taking area, financial or pivot widely corrections an done on it's and year will been any weekly do this look a go institution perfect given not the we I the as for close Now, how dashboards necessary. market, iterate course fintech will as make this by is in is manner, current personally as again existence we and be the at, we XX:XX

feel prudent collaborate approach for today. you to have mind risk-adjusted have that mention is into fintechs. I the want I I very most again, to with think that that, XX:XX get So just we in we today also on field a and community how it banks

and with we'll really other that approach. calculated as I Swell think really with view don't we summer, with been it As to more and really very time Swell is go we're and learn quarters. yet, want again very as we believe we'll scale as that better in I the this talk even in world relationship and the have XXXX subsequent XXXX as and go how coming we've a Hawaii, we to on be that concern, fooling in there ourselves, we fortunate going be iterate up and can because want and we the happy here together to have up good to each about need is platform a risk with live transparent a with XX:XX I Laurie, this Elevate far to, the so direction work

Laurie Hunsicker

more obviously all to Okay, non-interest How on you thinking one just that's of a income. color. Can question, about bit going fees? refresh forward? industry the appreciate that I is great, XX:XX you're And hot that bit an just Is little NSF a over David you, little your us button?

David Morimoto

reliant as activity $X.X returns to of million, we're fees and income, the our overly ramping normalcy, NSF is for we're NSF XX:XX on Sure, it think relative was NSF $X.X Laurie. first totaled year peers, less last to I up income. fee but some it it on not CPF, quarter million dependent in

strategy Our misplaced, focus on watching the to that happening the what's amount CFPB, happening low staying of our are complaints heard is, of may the what's but going now, with what's into for feature really we're happening we're want and it's anyway, we've forward to and the we're what with stay for like XX:XX a complaints. going the NSF time consumers regard being, CFPB with but CFPB course the with be So is peers. the the we're course CFPB, other their obviously relative industry to watching watching types

Laurie Hunsicker

for Great. XX:XX Thanks taking my question.

David Morimoto

XX:XX Thanks, Laurie.

Operator

a have ahead. question Please from Liesch. We XX:XX go follow-up Andrew

Andrew Liesch

XX:XX here. Hey, taking follow-up the thanks for

had right capital and the all pretty TCE the now, repurchases AOCI obviously, Just are ratios regulatory share the strong. on capital hit but ratio, the

our we So thinking of outlook there? couple be the quarters what should in we or do last we buyback about here, seen of pace think adjust the similar you should how for have what

David Morimoto

I'll bit What always quarterly little management's to for variable. David. of say stock more going other a cash is, to at our be The and be it's other to it's capital. plan repurchase of the will Hey that function uses It's we're obviously XX:XX Andrew, be -- options options share is dividend discretion, continue. a going a of going price and to committed

more it would the past in be a repurchase little say than on has I been So, the flexible to side. it's going

Andrew Liesch

XX:XX follow-up. the Okay, Thanks very for helpful. taking

David Morimoto

XX:XX Thanks, Andrew.

Operator

from And XX:XX we finally, follow-up David have Feaster. a

line is Your open.

David Feaster

thanks. Hey, XX:XX

-- – the side, full question, getting of NSF on talked taking wanted some about. follow-up to you of the the million on Just to the $X Laurie's mortgage million fee like impacts that kind front on kind of $XXX just taken income

guys place. fee in know have you Just initiatives some I curious,

fee the think that you whole? a about how over as income line course of expect you'd year? And how progression curious Just the the

David Morimoto

XX:XX it's here. Yeah, David, David

So the first about talked BOLI. mortgage and down was we quarter, banking also income the quarter a

on We fixed markets. the BOLI happening that income policies impacted the the by have some are in graph what's -- that equity are and

are then other as income and be other will as grow opportunities in income at on time fee area. on management on forward service versus business in wealth roughly the have interest hopefully we million difficult the we That's that's some future. some been market fee fintech range a that area, thing that going the and Going net the the banking some quarter key in actually initiatives working mentioned volatility but we're area, that and of appropriate the an be management volatility, area forward, development that's look per opportunities, we Paul want in that those we wealth $XX opportunities and can we initiatives so sharing some do to have new offset in the more the thinking little with to

David Feaster

that's right, All helpful. XX:XX everybody. Thanks

Operator

Thank you. XX:XX

queue. We in no the have questions further

the like Yonamine for Paul I'd call turn back closing to to remarks. So

Paul Yonamine

in progress. the XX:XX very forward to opportunities you for call you Thank XXXX. on participating much look our future first to We you. Thank earnings our quarter of update for

Operator

concludes very today's Thank you joining. This much call. for XX:XX

now may lines. disconnect your You

Central Pacific Financial (CPF) 20 Apr 222022 Q1 Earnings call transcript