Central Pacific Financial Corp. Reports $12.3 Million Second Quarter Earnings
HONOLULU, July 24, 2015 /PRNewswire/ -- Central Pacific Financial Corp. (NYSE: CPF), parent company of Central Pacific Bank (the "Bank"), today reported net income for the second quarter of 2015 of $12.3 million, or $0.39 per diluted share, compared to net income in the second quarter of 2014 of $9.2 million, or $0.25 per diluted share, and net income in the first quarter of 2015 of $10.4 million, or $0.29 per diluted share.
"During the second quarter, our positive performance trends continued with growth in loans, increase in net interest income, and a decline in nonperforming assets," said Catherine Ngo, President and Chief Executive Officer. "We are especially pleased with the strong increase in core deposits, which is reflective of our focus on strengthening customer relationships."
On July 23, 2015, the Company's Board of Directors declared a quarterly cash dividend of $0.12 per share on the Company's outstanding common shares. The dividend will be payable on September 15, 2015 to shareholders of record at the close of business on August 31, 2015.
In March 2015, the Company's Board of Directors authorized the addition of $75 million to its common stock repurchase program and promptly deployed this enhanced repurchase authority on April 1, 2015 with the repurchase of an additional 3,259,452 shares of its common stock at a purchase price per share of $23.01 (and an aggregate repurchase cost of approximately $75 million, excluding fees and expenses) in connection with the underwritten public offering of the Company's common stock by the Company's two largest shareholders, ACMO-CPF, L.L.C. and Carlyle Financial Services Harbor, L.P.
During the second quarter of 2015, the Company repurchased a total of 3,476,952 shares of common stock, including the shares repurchased in connection with the underwritten public offering noted above, at a total cost of $80.0 million, excluding fees and expenses, under its share repurchase program. The average cost was $23.01 per share repurchased. During the six months ended June 30, 2015, we have repurchased approximately 11.2% of our common stock outstanding as of December 31, 2014. The Company's remaining repurchase authority under its common stock repurchase program at June 30, 2015 is approximately $24.2 million.
Since reinstating our quarterly cash dividends in 2013, we have returned a total of $28.1 million in cash dividends to our shareholders and have repurchased 10,996,401 shares of our common stock at a total cost of $230.8 million, excluding fees and expenses.
Significant Highlights and Second Quarter Results
- Reported net income of $12.3 million, compared to net income in the first quarter of 2015 of $10.4 million.
- Increased the loans and leases portfolio by $38.3 million, or 1.3%, to $3.01 billion at June 30, 2015, compared to $2.97 billion at March 31, 2015.
- Increased core deposits by $46.5 million to $3.38 billion at June 30, 2015, compared to $3.33 billion at March 31, 2015.
- Reported a net interest margin of 3.32%, compared to 3.28% in the first quarter of 2015.
- Recorded a credit to the provision for loan and lease losses of $7.3 million in the second quarter of 2015, compared to a credit to the provision for loan and lease losses of $2.7 million in the first quarter of 2015.
- Nonperforming assets decreased by $8.7 million to $32.1 million at June 30, 2015 from $40.8 million at March 31, 2015.
- Maintained a strong capital position with leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios of 10.44%, 14.47%, 15.73%, and 11.91%, respectively, as of June 30, 2015. The Company's capital ratios continue to be well in excess of the minimum levels required for a "well-capitalized" regulatory designation under Basel III.
Earnings Highlights
Net interest income for the second quarter of 2015 was $37.3 million, compared to $35.9 million in the year-ago quarter and $36.2 million in the first quarter of 2015. Net interest margin was 3.32%, compared to 3.35% in the year-ago quarter and 3.28% in the first quarter of 2015. The sequential quarter increase in net interest margin was primarily due to higher loan fees and prepayment income totaling $0.6 million, primarily attributable to the early repayment of loans, and higher interest received on nonaccrual loans of $0.1 million. The increase in net interest income was also the result, in part, of our average investment securities and loan portfolio balances increasing by $47.7 million and $25.7 million, respectively. The taxable equivalent yield on the loans and leases portfolio increased to 3.97% in the current quarter from 3.90% last quarter. The taxable equivalent yield on the investment securities portfolio decreased to 2.56% in the current quarter, compared to 2.61% last quarter. Rates paid on total deposits decreased to 0.08% in the current quarter, compared to 0.09% last quarter.
In the second quarter of 2015, $119.4 million in available-for-sale securities were sold as part of an investment portfolio repositioning designed to improve profitability. Investment securities sold in the second quarter had a weighted average life of 4.4 years, average yield of 1.35% and resulted in a loss of $1.9 million, recorded in other operating income. Proceeds from the sale were immediately reinvested back into the investment portfolio, purchasing $120.6 million in mortgage-backed securities with a weighted average life of 7.6 years and an average yield of 2.71%.
In the second quarter of 2015, we recorded a credit to the provision for loan and lease losses of $7.3 million, compared to a provision of $2.0 million in the year-ago quarter and a credit of $2.7 million in the first quarter of 2015. The credit to the provision for loan and lease losses was primarily attributable to improving trends in credit quality.
Other operating income for the second quarter of 2015 totaled $8.1 million, compared to $12.0 million in the year-ago quarter and $11.2 million in the first quarter of 2015. The decrease from the year-ago quarter was primarily due to investment securities losses of $1.9 million and unrealized losses on loans held for sale and interest rate locks of $0.2 million (included in other) in the second quarter of 2015, compared to investment securities gains of $0.2 million and unrealized gains on loans held for sale and interest rate locks of $0.4 million (included in other) in the year-ago quarter. In addition, we recorded lower net gains on sales of foreclosed assets of $0.5 million, lower income from bank-owned life insurance of $0.3 million, and lower other service charges of fees of $0.3 million. These decreases were offset by higher net gains on sales of residential mortgage loans of $0.4 million. The sequential quarter decrease was primarily due to the aforementioned investment securities losses of $1.9 million, unrealized losses on loans held for sale and interest rate locks of $0.2 million (included in other) in the second quarter of 2015, compared to unrealized gains on loans held for sale and interest rate locks of $0.5 million (included in other) in the first quarter of 2015, lower other service charges and fees of $0.3 million, and lower income from bank-owned life insurance of $0.2 million.
Other operating expense for the second quarter of 2015 totaled $32.5 million, compared to $32.9 million in the year-ago quarter and $34.0 million in the first quarter of 2015. The decrease from the year-ago quarter was primarily attributable to lower salaries and employee benefits of $1.4 million, lower legal and professional services of $0.6 million, lower net occupancy expense of $0.3 million, and a credit to the reserve for unfunded commitments of $0.3 million (included in other) in the second quarter of 2015, compared to an increase to the reserve for unfunded commitments of $0.1 million in the year-ago quarter. These decreases were partially offset by higher charitable contributions of $2.0 million (included in other) and higher computer software expense of $0.8 million. The higher charitable contributions were primarily attributable to a $2.0 million contribution to the Central Pacific Bank Foundation ("CPB Foundation"), which was the first contribution to CPB Foundation since December 2013. The sequential quarter decrease is primarily attributable to lower salaries and employee benefits of $2.0 million, lower legal and professional services of $0.6 million, and lower amortization of mortgage servicing rights of $0.5 million. These decreases were offset by higher charitable contributions of $2.0 million (included in other). The current quarter decrease in salaries and employee benefits was due primarily to a one-time reversal of an accrual for a former executive officer's retirement benefits which will not be paid.
The efficiency ratio for the second quarter of 2015 was 71.47%, compared to 68.65% in the year-ago quarter and 71.73% in the first quarter of 2015. The efficiency ratio in the second quarter of 2015 was primarily impacted by the investment securities losses and the CPB Foundation charitable contribution, offset by the salaries and employee benefits accrual reversal noted above.
In the second quarter of 2015, the Company recorded income tax expense of $7.9 million, compared to income tax expense of $3.9 million in the year-ago quarter and $5.8 million in the first quarter of 2015. The effective tax rate for the second quarter of 2015 was 39.2%, compared to 35.7% in the first quarter of 2015. Our income tax expense and effective tax rate in the second quarter of 2015 was impacted by $0.6 million in additional income tax expense resulting from the reduction in deferred tax liabilities related to the redemption of Federal Home Loan Bank of Des Moines ("FHLB Des Moines") membership stock during the quarter, as discussed below. Our income tax expense and effective tax rate in the first quarter of 2015 was impacted by $0.5 million in costs related to the underwriting agreement and share repurchase completed on April 1, 2015, which are not tax-deductible. As of June 30, 2015, the Company's net deferred tax assets totaled $94.2 million.
Balance Sheet Highlights
Total assets at June 30, 2015 of $4.97 billion increased by $240.1 million from June 30, 2014, and increased by $1.9 million from March 31, 2015.
Total loans and leases at June 30, 2015 of $3.01 billion increased by $211.9 million and $38.3 million from June 30, 2014 and March 31, 2015, respectively. The increase in total loans and leases from the first quarter of 2015 was primarily due to an increase in the residential mortgage and consumer loan portfolios of $51.7 million and $23.2 million, respectively, partially offset by a decrease in the construction and commercial mortgage loan portfolios of $29.2 million and $6.1 million, respectively.
During the second quarter of 2015, following their merger with Federal Home Loan Bank of Seattle on June 1, 2015, we redeemed $31.3 million in excess FHLB Des Moines membership stock at par value of $100 per share.
Total deposits at June 30, 2015 of $4.18 billion increased by $179.7 million from June 30, 2014, and decreased by $6.3 million from March 31, 2015. Core deposits, which include demand deposits, savings and money market deposits, and time deposits less than $100,000, totaled $3.38 billion at June 30, 2015. This represents an increase of $182.5 million and $46.5 million from a year ago and from March 31, 2015, respectively. Changes in total deposits during the quarter included net decreases in time deposits of $59.1 million, offset by net increases in noninterest-bearing demand deposits, savings and money market deposits, and interest-bearing demand deposits of $37.6 million, $13.9 million, and $1.3 million, respectively.
Total shareholders' equity was $488.8 million at June 30, 2015, compared to $564.6 million and $572.9 million at June 30, 2014 and March 31, 2015, respectively. The sequential quarter decrease is due primarily to repurchases of $80.0 million in common stock, excluding fees and expenses, under the Company's stock repurchase program, a $11.4 million change in unrealized losses on investment securities, and common stock dividends paid of $3.8 million, partially offset by net income of $12.3 million in the current quarter.
Asset Quality
Nonperforming assets at June 30, 2015 totaled $32.1 million, or 0.65% of total assets, compared to $40.8 million, or 0.82% of total assets at March 31, 2015. The sequential-quarter change in nonperforming assets reflects net decreases in U.S. Mainland commercial and industrial assets of $10.1 million, Hawaii residential mortgage assets of $2.3 million, and U.S. Mainland commercial mortgage assets of $1.6 million. These net decreases were offset by net increases in Hawaii commercial and industrial assets of $2.8 million and Hawaii commercial mortgage assets of $2.6 million.
Loans delinquent for 90 days or more still accruing interest totaled $45,000 at June 30, 2015, compared to $5,000 at March 31, 2015. In addition, loans delinquent for 30 days or more still accruing interest totaled $2.8 million at June 30, 2015, compared to $3.6 million at March 31, 2015.
Net recoveries in the second quarter of 2015 totaled $2.8 million, compared to net charge-offs of $1.6 million in the second quarter of 2014, and net recoveries of $0.1 million in the first quarter of 2015. Net recoveries during the second quarter of 2015 included recoveries of two Hawaii commercial and industrial loans to a single borrower totaling $2.8 million, a $2.5 million recovery of a Hawaii commercial mortgage loan, and a $1.0 million recovery of a Hawaii commercial mortgage loan, partially offset by charge-offs of two U.S. Mainland commercial and industrial loans to a single borrower totaling $3.5 million.
The ALLL, as a percentage of total loans and leases, was 2.23% at June 30, 2015, compared to 2.41% at March 31, 2015. The ALLL, as a percentage of nonperforming assets, was 208.43% at June 30, 2015, compared to 175.21% at March 31, 2015. The ALLL, as a percentage of nonaccrual loans, was 249.44% at June 30, 2015, compared to 190.89% at March 31, 2015.
Capital Levels
At June 30, 2015, the Company's leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios were 10.44%, 14.47%, 15.73%, and 11.91%, respectively. At March 31, 2015, the Company's leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios were 12.79%, 17.43%, 18.69%, and 14.89%, respectively. The Company's capital ratios continue to exceed the levels required to be considered a "well-capitalized" institution for regulatory purposes under Basel III.
Non-GAAP Financial Measures
This press release contains certain references to financial measures that have been adjusted to exclude certain expenses and other specified items. These financial measures differ from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") in that they exclude unusual or non-recurring charges, losses, credits or gains. This press release identifies the specific items excluded from the comparable GAAP financial measure in the calculation of each non-GAAP financial measure. Management believes that financial presentations excluding the impact of these items provide useful supplemental information that is important to a proper understanding of the Company's core business results by investors. These presentations should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial measures presented by other companies.
Conference Call
The Company's management will host a conference call today at 1:00 p.m. Eastern Time (7:00 a.m. Hawaii Time) to discuss the quarterly results. Individuals are encouraged to listen to the live webcast of the presentation by visiting the investor relations page of the Company's website at http://ir.centralpacificbank.com. Alternatively, investors may participate in the live call by dialing 1-877-505-7644. A playback of the call will be available through August 24, 2015 by dialing 1-877-344-7529 (passcode: 10069135) and on the Company's website.
About Central Pacific Financial Corp.
Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $5.0 billion in assets. Central Pacific Bank, its primary subsidiary, operates 36 branches and 110 ATMs in the state of Hawaii, as of June 30, 2015. For additional information, please visit the Company's website at http://www.centralpacificbank.com.
Forward-Looking Statements
This document may contain forward-looking statements concerning projections of revenues, income/loss, earnings/loss per share, capital expenditures, dividends, capital structure, or other financial items, plans and objectives of management for future operations, future economic performance, or any of the assumptions underlying or relating to any of the foregoing. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and may include the words "believes," "plans," "expects," "anticipates," "forecasts," "intends," "hopes," "should," "estimates," or words of similar meaning. While the Company believes that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions are by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual results could materially differ from projections for a variety of reasons, to include, but not limited to: the effect of, and our failure to comply with any regulatory orders we are or may become subject to; oversupply of inventory and adverse conditions in the Hawaii and California real estate markets and any weakness in the construction industry; adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality, and losses in our loan portfolio; the impact of local, national, and international economies and events (including political events, acts of war or terrorism, natural disasters such as wildfires, tsunamis and earthquakes) on the Company's business and operations and on tourism, the military and other major industries operating within the Hawaii market and any other markets in which the Company does business; deterioration or malaise in economic conditions, including destabilizing factors in the financial industry and deterioration of the real estate market, as well as the impact from any declining levels of consumer and business confidence in the state of the economy in general and in financial institutions in particular; our ability to continue making progress on our recovery plan; the impact of regulatory action on the Company and Central Pacific Bank and legislation affecting the banking industry; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, other regulatory reform, and any related rules and regulations on our business operations and competitiveness; the costs and effects of legal and regulatory developments, including legal proceedings or regulatory or other governmental inquiries and proceedings and the resolution thereof, and the results of regulatory examinations or reviews; the effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, securities market and monetary fluctuations; negative trends in our market capitalization and adverse changes in the price of the Company's common shares; changes in consumer spending, borrowings and savings habits; technological changes and developments; changes in the competitive environment among financial holding companies and other financial service providers; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; our ability to attract and retain skilled executives and employees; changes in our organization, compensation and benefit plans; and our success at managing the risks involved in any of the foregoing items. For further information on factors that could cause actual results to materially differ from projections, please see the Company's publicly available Securities and Exchange Commission filings, including the Company's Form 10-K for the last fiscal year and, in particular, the discussion of "Risk Factors" set forth therein. The Company does not update any of its forward-looking statements except as required by law.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES |
||||||||||
Financial Highlights |
||||||||||
(Unaudited) |
TABLE 1 |
|||||||||
Three Months Ended |
Six Months Ended |
|||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
||||||
(dollars in thousands, except for per share amounts) |
2015 |
2015 |
2014 |
2015 |
2014 |
|||||
INCOME STATEMENT |
||||||||||
Net interest income |
$ 37,294 |
$ 36,235 |
$ 35,906 |
$ 73,529 |
$ 71,702 |
|||||
Provision (credit) for loan and lease losses |
(7,319) |
(2,747) |
1,995 |
(10,066) |
679 |
|||||
Total other operating income |
8,124 |
11,190 |
12,004 |
19,314 |
22,148 |
|||||
Total other operating expense |
32,458 |
34,018 |
32,888 |
66,476 |
64,818 |
|||||
Net income |
12,335 |
10,395 |
9,150 |
22,730 |
18,958 |
|||||
Basic earnings per common share |
$ 0.39 |
$ 0.30 |
$ 0.25 |
$ 0.69 |
$ 0.49 |
|||||
Diluted earnings per common share |
0.39 |
0.29 |
0.25 |
0.68 |
0.48 |
|||||
Dividends declared per common share |
0.12 |
0.12 |
0.08 |
0.24 |
0.16 |
|||||
PERFORMANCE RATIOS |
||||||||||
Return on average assets (1) |
1.00 |
% |
0.85 |
% |
0.77 |
% |
0.92 |
% |
0.80 |
% |
Return on average shareholders' equity (1) |
9.93 |
7.32 |
6.49 |
8.54 |
6.11 |
|||||
Return on average tangible shareholders' equity (1) |
10.11 |
7.45 |
6.63 |
8.70 |
6.23 |
|||||
Efficiency ratio (2) |
71.47 |
71.73 |
68.65 |
71.60 |
69.07 |
|||||
Net interest margin (1) |
3.32 |
3.28 |
3.35 |
3.30 |
3.33 |
|||||
Dividend payout ratio (3) |
30.77 |
41.38 |
32.00 |
35.29 |
33.33 |
|||||
Average shareholders' equity to average assets |
10.04 |
11.62 |
11.90 |
10.82 |
13.04 |
|||||
SELECTED AVERAGE BALANCES |
||||||||||
Average loans and leases, including loans held for sale |
$ 2,981,184 |
$ 2,955,525 |
$ 2,762,963 |
$ 2,968,425 |
$ 2,714,662 |
|||||
Average interest-earning assets |
4,566,577 |
4,505,895 |
4,360,129 |
4,536,404 |
4,384,777 |
|||||
Average assets |
4,947,802 |
4,889,722 |
4,736,818 |
4,918,923 |
4,759,212 |
|||||
Average deposits |
4,198,758 |
4,123,293 |
3,954,457 |
4,161,234 |
3,948,989 |
|||||
Average interest-bearing liabilities |
3,357,400 |
3,266,067 |
3,210,052 |
3,311,986 |
3,193,111 |
|||||
Average shareholders' equity |
496,881 |
567,991 |
563,895 |
532,239 |
620,516 |
|||||
June 30, |
March 31, |
June 30, |
||||||||
2015 |
2015 |
2014 |
||||||||
REGULATORY CAPITAL RATIOS |
||||||||||
Central Pacific Financial Corp. |
||||||||||
Leverage capital ratio |
10.44 |
% |
11.92 |
% |
11.64 |
% |
||||
Tier 1 risk-based capital ratio |
14.47 |
16.04 |
17.06 |
|||||||
Total risk-based capital ratio |
15.73 |
17.30 |
18.33 |
|||||||
Common equity tier 1 capital ratio |
11.91 |
13.52 |
N/A |
|||||||
Central Pacific Bank |
||||||||||
Leverage capital ratio |
10.33 |
11.66 |
11.16 |
|||||||
Tier 1 risk-based capital ratio |
14.26 |
15.65 |
16.36 |
|||||||
Total risk-based capital ratio |
15.52 |
16.91 |
17.63 |
|||||||
Common equity tier 1 capital ratio |
14.26 |
15.65 |
N/A |
|||||||
BALANCE SHEET |
||||||||||
Loans and leases |
$ 3,006,055 |
$ 2,967,772 |
$ 2,794,183 |
|||||||
Total assets |
4,967,851 |
4,965,925 |
4,727,766 |
|||||||
Total deposits |
4,182,322 |
4,188,642 |
4,002,578 |
|||||||
Long-term debt |
92,785 |
92,785 |
92,790 |
|||||||
Total shareholders' equity |
488,847 |
572,925 |
564,568 |
|||||||
Total shareholders' equity to total assets |
9.84 |
% |
11.54 |
% |
11.94 |
% |
||||
Tangible common equity to tangible assets (4) |
9.68 |
11.37 |
11.73 |
|||||||
ASSET QUALITY |
||||||||||
Allowance for loan and lease losses |
$ 66,924 |
$ 71,433 |
$ 83,599 |
|||||||
Non-performing assets |
32,108 |
40,770 |
42,121 |
|||||||
Allowance to loans and leases outstanding |
2.23 |
% |
2.41 |
% |
2.99 |
% |
||||
Allowance to non-performing assets |
208.43 |
175.21 |
198.47 |
|||||||
PER SHARE OF COMMON STOCK |
||||||||||
Book value per common share |
$ 15.52 |
$ 16.46 |
$ 15.73 |
|||||||
Tangible book value per common share |
15.24 |
16.20 |
15.41 |
|||||||
Market value per common share |
23.75 |
22.97 |
19.85 |
(1) Annualized |
|||||||||
(2) Efficiency ratio is defined as total operating expense divided by total revenue (net interest income and total other operating income). |
|||||||||
(3) Dividend payout ratio is defined as dividends declared per share divided by diluted earnings per share. |
|||||||||
(4) The tangible common equity ratio is a non-GAAP measure which should be read in conjunction with the Company's GAAP financial information. Comparison of our ratio with those of other companies may not be possible because other companies may calculate the ratio differently. See Reconciliation of Non-GAAP Financial Measures. |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES |
|||||||
Reconciliation of Non-GAAP Financial Measures |
|||||||
(Unaudited) |
|||||||
TABLE 2 |
|||||||
June 30, |
March 31, |
June 30, |
|||||
(Dollars in thousands) |
2015 |
2015 |
2014 |
||||
Tangible Common Equity Ratio: |
|||||||
Total shareholders' equity |
$ 488,847 |
$ 572,925 |
$ 564,568 |
||||
Less: Other intangible assets |
(8,692) |
(9,361) |
(11,366) |
||||
Tangible common equity |
$ 480,155 |
$ 563,564 |
$ 553,202 |
||||
Total assets |
$ 4,967,851 |
$ 4,965,925 |
$ 4,727,766 |
||||
Less: Other intangible assets |
(8,692) |
(9,361) |
(11,366) |
||||
Tangible assets |
$ 4,959,159 |
$ 4,956,564 |
$ 4,716,400 |
||||
Tangible common equity to tangible assets |
9.68 |
% |
11.37 |
% |
11.73 |
% |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES |
|||||||||||
Consolidated Balance Sheets |
|||||||||||
(Unaudited) |
TABLE 3 |
||||||||||
June 30, |
March 31, |
June 30, |
|||||||||
(Dollars in thousands, except share data) |
2015 |
2015 |
2014 |
||||||||
ASSETS |
|||||||||||
Cash and due from banks |
$ |
66,715 |
$ |
74,743 |
$ |
83,539 |
|||||
Interest-bearing deposits in other banks |
14,775 |
10,478 |
3,480 |
||||||||
Investment securities: |
|||||||||||
Available for sale |
1,274,312 |
1,298,487 |
1,226,935 |
||||||||
Held to maturity (fair value of $259,150 at June 30, 2015, $256,357 at March 31, 2015 and $241,368 at June 30, 2014) |
262,778 |
255,592 |
247,206 |
||||||||
Total investment securities |
1,537,090 |
1,554,079 |
1,474,141 |
||||||||
Loans held for sale |
22,917 |
7,206 |
8,464 |
||||||||
Loans and leases |
3,006,055 |
2,967,772 |
2,794,183 |
||||||||
Less allowance for loan and lease losses |
66,924 |
71,433 |
83,599 |
||||||||
Net loans and leases |
2,939,131 |
2,896,339 |
2,710,584 |
||||||||
Premises and equipment, net |
47,681 |
48,768 |
48,703 |
||||||||
Accrued interest receivable |
14,021 |
13,420 |
13,253 |
||||||||
Investment in unconsolidated subsidiaries |
6,720 |
6,840 |
7,918 |
||||||||
Other real estate |
5,278 |
3,349 |
5,247 |
||||||||
Mortgage servicing rights |
18,586 |
18,869 |
19,779 |
||||||||
Other intangible assets |
8,692 |
9,361 |
11,366 |
||||||||
Bank-owned life insurance |
153,015 |
153,251 |
151,242 |
||||||||
Federal Home Loan Bank stock |
12,129 |
43,442 |
45,011 |
||||||||
Other assets |
121,101 |
125,780 |
145,039 |
||||||||
Total assets |
$ |
4,967,851 |
$ |
4,965,925 |
$ |
4,727,766 |
|||||
LIABILITIES AND EQUITY |
|||||||||||
Deposits: |
|||||||||||
Noninterest-bearing demand |
$ |
1,080,428 |
$ |
1,042,781 |
$ |
962,646 |
|||||
Interest-bearing demand |
807,851 |
806,555 |
756,776 |
||||||||
Savings and money market |
1,261,180 |
1,247,266 |
1,221,253 |
||||||||
Time |
1,032,863 |
1,092,040 |
1,061,903 |
||||||||
Total deposits |
4,182,322 |
4,188,642 |
4,002,578 |
||||||||
Short-term borrowings |
157,000 |
70,000 |
29,000 |
||||||||
Long-term debt |
92,785 |
92,785 |
92,790 |
||||||||
Other liabilities |
46,897 |
41,573 |
38,830 |
||||||||
Total liabilities |
4,479,004 |
4,393,000 |
4,163,198 |
||||||||
Equity: |
|||||||||||
Preferred stock, no par value, authorized 1,100,000 shares; issued and outstanding none at June 30, 2015, March 31, 2015 and June 30, 2014 |
- |
- |
- |
||||||||
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding 31,501,633 shares at June 30, 2015, 34,797,133 shares at March 31, 2015 and 35,901,080 shares at June 30, 2014 |
552,527 |
632,867 |
655,219 |
||||||||
Surplus |
79,373 |
80,545 |
76,311 |
||||||||
Accumulated deficit |
(142,267) |
(150,815) |
(171,380) |
||||||||
Accumulated other comprehensive income (loss) |
(786) |
10,328 |
4,418 |
||||||||
Total shareholders' equity |
488,847 |
572,925 |
564,568 |
||||||||
Non-controlling interest |
- |
- |
- |
||||||||
Total equity |
488,847 |
572,925 |
564,568 |
||||||||
Total liabilities and equity |
$ |
4,967,851 |
$ |
4,965,925 |
$ |
4,727,766 |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES |
|||||||||||
Consolidated Statements of Income |
|||||||||||
(Unaudited) |
TABLE 4 |
||||||||||
Three Months Ended |
Six Months Ended |
||||||||||
June 30, |
March 31, |
June 30, |
June 30, |
||||||||
(Dollars in thousands, except per share data) |
2015 |
2015 |
2014 |
2015 |
2014 |
||||||
Interest income: |
|||||||||||
Interest and fees on loans and leases |
$ |
29,572 |
$ |
28,602 |
$ |
28,040 |
$ |
58,174 |
$ |
54,923 |
|
Interest and dividends on investment securities: |
|||||||||||
Taxable interest |
8,277 |
8,150 |
8,476 |
16,427 |
17,972 |
||||||
Tax-exempt interest |
1,010 |
998 |
1,000 |
2,008 |
1,994 |
||||||
Dividends |
8 |
9 |
1 |
17 |
2 |
||||||
Interest on deposits in other banks |
11 |
11 |
8 |
22 |
15 |
||||||
Dividends on Federal Home Loan Bank stock |
18 |
11 |
11 |
29 |
23 |
||||||
Total interest income |
38,896 |
37,781 |
37,536 |
76,677 |
74,929 |
||||||
Interest expense: |
|||||||||||
Interest on deposits: |
|||||||||||
Demand |
99 |
95 |
91 |
194 |
181 |
||||||
Savings and money market |
225 |
223 |
223 |
448 |
447 |
||||||
Time |
549 |
548 |
621 |
1,097 |
1,251 |
||||||
Interest on short-term borrowings |
79 |
43 |
55 |
122 |
72 |
||||||
Interest on long-term debt |
650 |
637 |
640 |
1,287 |
1,276 |
||||||
Total interest expense |
1,602 |
1,546 |
1,630 |
3,148 |
3,227 |
||||||
Net interest income |
37,294 |
36,235 |
35,906 |
73,529 |
71,702 |
||||||
Provision (credit) for loan and lease losses |
(7,319) |
(2,747) |
1,995 |
(10,066) |
679 |
||||||
Net interest income after provision for loan and lease losses |
44,613 |
38,982 |
33,911 |
83,595 |
71,023 |
||||||
Other operating income: |
|||||||||||
Service charges on deposit accounts |
1,915 |
1,968 |
1,989 |
3,883 |
3,982 |
||||||
Loan servicing fees |
1,427 |
1,423 |
1,448 |
2,850 |
2,892 |
||||||
Other service charges and fees |
2,781 |
3,105 |
3,083 |
5,886 |
6,026 |
||||||
Income from fiduciary activities |
830 |
834 |
828 |
1,664 |
1,890 |
||||||
Equity in earnings of unconsolidated subsidiaries |
229 |
96 |
359 |
325 |
411 |
||||||
Fees on foreign exchange |
98 |
128 |
119 |
226 |
233 |
||||||
Investment securities gains (losses) |
(1,866) |
- |
240 |
(1,866) |
240 |
||||||
Income from bank-owned life insurance |
461 |
674 |
766 |
1,135 |
1,436 |
||||||
Loan placement fees |
225 |
147 |
178 |
372 |
321 |
||||||
Net gains on sales of residential loans |
1,630 |
1,594 |
1,227 |
3,224 |
2,466 |
||||||
Net gains on sales of foreclosed assets |
94 |
33 |
582 |
127 |
744 |
||||||
Other (refer to Table 5) |
300 |
1,188 |
1,185 |
1,488 |
1,507 |
||||||
Total other operating income |
8,124 |
11,190 |
12,004 |
19,314 |
22,148 |
||||||
Other operating expense: |
|||||||||||
Salaries and employee benefits |
15,176 |
17,165 |
16,550 |
32,341 |
33,984 |
||||||
Net occupancy |
3,403 |
3,501 |
3,734 |
6,904 |
7,324 |
||||||
Equipment |
933 |
909 |
945 |
1,842 |
1,741 |
||||||
Amortization of other intangible assets |
1,559 |
2,105 |
1,318 |
3,664 |
2,558 |
||||||
Communication expense |
942 |
824 |
874 |
1,766 |
1,768 |
||||||
Legal and professional services |
1,642 |
2,219 |
2,228 |
3,861 |
4,040 |
||||||
Computer software expense |
2,382 |
2,096 |
1,575 |
4,478 |
2,933 |
||||||
Advertising expense |
449 |
635 |
678 |
1,084 |
1,364 |
||||||
Foreclosed asset expense |
257 |
72 |
(17) |
329 |
88 |
||||||
Other (refer to Table 6) |
5,715 |
4,492 |
5,003 |
10,207 |
9,018 |
||||||
Total other operating expense |
32,458 |
34,018 |
32,888 |
66,476 |
64,818 |
||||||
Income before income taxes |
20,279 |
16,154 |
13,027 |
36,433 |
28,353 |
||||||
Income tax expense |
7,944 |
5,759 |
3,877 |
13,703 |
9,395 |
||||||
Net income |
$ |
12,335 |
$ |
10,395 |
$ |
9,150 |
$ |
22,730 |
$ |
18,958 |
|
Per common share data: |
|||||||||||
Basic earnings per share |
$ |
0.39 |
$ |
0.30 |
$ |
0.25 |
$ |
0.69 |
$ |
0.49 |
|
Diluted earnings per share |
0.39 |
0.29 |
0.25 |
0.68 |
0.48 |
||||||
Cash dividends declared |
0.12 |
0.12 |
0.08 |
0.24 |
0.16 |
||||||
Basic weighted average shares outstanding |
31,525 |
34,827 |
36,117 |
33,167 |
39,000 |
||||||
Diluted weighted average shares outstanding |
31,953 |
35,479 |
36,656 |
33,588 |
39,405 |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES |
|||||||||
Other Operating Income - Other |
|||||||||
(Unaudited) |
TABLE 5 |
||||||||
Three Months Ended |
Six Months Ended |
||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||
(Dollars in thousands) |
2015 |
2015 |
2014 |
2015 |
2014 |
||||
Income recovered on nonaccrual loans previously charged-off |
$ 209 |
$ 219 |
$ 526 |
$ 428 |
$ 639 |
||||
Other recoveries |
15 |
274 |
15 |
289 |
39 |
||||
Unrealized gains (losses) on loans-held-for-sale and interest rate locks |
(198) |
466 |
413 |
268 |
353 |
||||
Commissions on sale of checks |
82 |
78 |
84 |
160 |
170 |
||||
Other |
192 |
151 |
147 |
343 |
306 |
||||
Total other operating income - Other |
$ 300 |
$ 1,188 |
$ 1,185 |
$ 1,488 |
$ 1,507 |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES |
|||||||||
Other Operating Expense - Other |
|||||||||
(Unaudited) |
TABLE 6 |
||||||||
Three Months Ended |
Six Months Ended |
||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||
(Dollars in thousands) |
2015 |
2015 |
2014 |
2015 |
2014 |
||||
Charitable contributions |
$ 2,138 |
$ 139 |
$ 110 |
$ 2,277 |
$ 262 |
||||
FDIC insurance assessment |
701 |
698 |
728 |
1,399 |
1,402 |
||||
Miscellaneous loan expenses |
434 |
275 |
272 |
709 |
493 |
||||
ATM and debit card expenses |
180 |
586 |
464 |
766 |
913 |
||||
Amortization of investments in low-income housing tax credit partnerships |
274 |
288 |
351 |
562 |
758 |
||||
Armored car expenses |
195 |
234 |
214 |
429 |
440 |
||||
Entertainment and promotions |
266 |
197 |
215 |
463 |
432 |
||||
Stationery and supplies |
219 |
196 |
261 |
415 |
539 |
||||
Directors' fees and expenses |
214 |
191 |
462 |
405 |
571 |
||||
Provision (credit) for residential mortgage loan repurchase losses |
(32) |
159 |
(147) |
127 |
308 |
||||
Increase (decrease) to the reserve for unfunded commitments |
(272) |
(31) |
81 |
(303) |
(669) |
||||
Other |
1,398 |
1,560 |
1,992 |
2,958 |
3,569 |
||||
Total other operating expense - Other |
$ 5,715 |
$ 4,492 |
$ 5,003 |
$ 10,207 |
$ 9,018 |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES |
|||||||||||||||||
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent) |
|||||||||||||||||
(Unaudited) |
TABLE 7 |
||||||||||||||||
Three Months Ended |
Three Months Ended |
Three Months Ended |
|||||||||||||||
(Dollars in thousands) |
June 30, 2015 |
March 31, 2015 |
June 30, 2014 |
||||||||||||||
Average |
Average |
Average |
Average |
Average |
Average |
||||||||||||
Balance |
Yield/Rate |
Interest |
Balance |
Yield/Rate |
Interest |
Balance |
Yield/Rate |
Interest |
|||||||||
Assets: |
|||||||||||||||||
Interest earning assets: |
|||||||||||||||||
Interest-bearing deposits in other banks |
$ 17,160 |
0.24 |
% |
$ 11 |
$ 18,046 |
0.25 |
% |
$ 11 |
$ 12,756 |
0.25 |
% |
$ 8 |
|||||
Taxable investment securities, excluding valuation allowance |
1,360,101 |
2.44 |
8,285 |
1,310,909 |
2.49 |
8,159 |
1,360,329 |
2.49 |
8,477 |
||||||||
Tax-exempt investment securities, excluding valuation allowance |
176,086 |
3.53 |
1,554 |
177,606 |
3.46 |
1,536 |
178,609 |
3.45 |
1,539 |
||||||||
Loans and leases, including loans held for sale |
2,981,184 |
3.97 |
29,572 |
2,955,525 |
3.90 |
28,602 |
2,762,963 |
4.07 |
28,040 |
||||||||
Federal Home Loan Bank stock |
32,046 |
0.23 |
18 |
43,809 |
0.10 |
11 |
45,472 |
0.10 |
11 |
||||||||
Total interest earning assets |
4,566,577 |
3.46 |
39,440 |
4,505,895 |
3.42 |
38,319 |
4,360,129 |
3.50 |
38,075 |
||||||||
Nonearning assets |
381,225 |
383,827 |
376,689 |
||||||||||||||
Total assets |
$ 4,947,802 |
$ 4,889,722 |
$ 4,736,818 |
||||||||||||||
Liabilities & Equity: |
|||||||||||||||||
Interest-bearing liabilities: |
|||||||||||||||||
Interest-bearing demand deposits |
$ 812,339 |
0.05 |
% |
$ 99 |
$ 787,717 |
0.05 |
% |
$ 95 |
$ 743,544 |
0.05 |
% |
$ 91 |
|||||
Savings and money market deposits |
1,257,940 |
0.07 |
225 |
1,248,867 |
0.07 |
223 |
1,219,159 |
0.07 |
223 |
||||||||
Time deposits under $100,000 |
230,425 |
0.37 |
212 |
237,239 |
0.38 |
222 |
256,971 |
0.41 |
261 |
||||||||
Time deposits $100,000 and over |
846,966 |
0.16 |
337 |
836,232 |
0.16 |
326 |
821,701 |
0.18 |
360 |
||||||||
Short-term borrowings |
116,945 |
0.28 |
79 |
63,227 |
0.27 |
43 |
75,885 |
0.29 |
55 |
||||||||
Long-term debt |
92,785 |
2.81 |
650 |
92,785 |
2.78 |
637 |
92,792 |
2.77 |
640 |
||||||||
Total interest-bearing liabilities |
3,357,400 |
0.19 |
1,602 |
3,266,067 |
0.19 |
1,546 |
3,210,052 |
0.20 |
1,630 |
||||||||
Noninterest-bearing deposits |
1,051,088 |
1,013,238 |
913,082 |
||||||||||||||
Other liabilities |
42,433 |
42,426 |
49,788 |
||||||||||||||
Total liabilities |
4,450,921 |
4,321,731 |
4,172,922 |
||||||||||||||
Shareholders' equity |
496,881 |
567,991 |
563,895 |
||||||||||||||
Non-controlling interest |
- |
- |
1 |
||||||||||||||
Total equity |
496,881 |
567,991 |
563,896 |
||||||||||||||
Total liabilities & equity |
$ 4,947,802 |
$ 4,889,722 |
$ 4,736,818 |
||||||||||||||
Net interest income |
$ 37,838 |
$ 36,773 |
$ 36,445 |
||||||||||||||
Net interest margin |
3.32 |
% |
3.28 |
% |
3.35 |
% |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES |
||||||||||||
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent) |
||||||||||||
(Unaudited) |
TABLE 8 |
|||||||||||
Six Months Ended |
Six Months Ended |
|||||||||||
(Dollars in thousands) |
June 30, 2015 |
June 30, 2014 |
||||||||||
Average |
Average |
Average |
Average |
|||||||||
Balance |
Yield/Rate |
Interest |
Balance |
Yield/Rate |
Interest |
|||||||
Assets: |
||||||||||||
Interest earning assets: |
||||||||||||
Interest-bearing deposits in other banks |
$ 17,601 |
0.25 |
% |
$ 22 |
$ 12,173 |
0.25 |
% |
$ 15 |
||||
Taxable investment securities, excluding valuation allowance |
1,335,642 |
2.46 |
16,444 |
1,433,863 |
2.51 |
17,974 |
||||||
Tax-exempt investment securities, excluding valuation allowance |
176,841 |
3.49 |
3,089 |
178,308 |
3.44 |
3,068 |
||||||
Loans and leases, including loans held for sale |
2,968,425 |
3.94 |
58,174 |
2,714,662 |
4.07 |
54,923 |
||||||
Federal Home Loan Bank stock |
37,895 |
0.15 |
29 |
45,771 |
0.10 |
23 |
||||||
Total interest earning assets |
4,536,404 |
3.44 |
77,758 |
4,384,777 |
3.48 |
76,003 |
||||||
Nonearning assets |
382,519 |
374,435 |
||||||||||
Total assets |
$ 4,918,923 |
$ 4,759,212 |
||||||||||
Liabilities & Equity: |
||||||||||||
Interest-bearing liabilities: |
||||||||||||
Interest-bearing demand deposits |
$ 800,096 |
0.05 |
% |
$ 194 |
$ 739,659 |
0.05 |
% |
$ 181 |
||||
Savings and money market deposits |
1,253,428 |
0.07 |
448 |
1,218,626 |
0.07 |
447 |
||||||
Time deposits under $100,000 |
233,813 |
0.37 |
434 |
260,207 |
0.41 |
529 |
||||||
Time deposits $100,000 and over |
841,629 |
0.16 |
663 |
831,096 |
0.18 |
722 |
||||||
Short-term borrowings |
90,235 |
0.27 |
122 |
50,729 |
0.29 |
72 |
||||||
Long-term debt |
92,785 |
2.80 |
1,287 |
92,794 |
2.77 |
1,276 |
||||||
Total interest-bearing liabilities |
3,311,986 |
0.19 |
3,148 |
3,193,111 |
0.20 |
3,227 |
||||||
Noninterest-bearing deposits |
1,032,268 |
899,401 |
||||||||||
Other liabilities |
42,430 |
46,154 |
||||||||||
Total liabilities |
4,386,684 |
4,138,666 |
||||||||||
Shareholders' equity |
532,239 |
620,516 |
||||||||||
Non-controlling interest |
- |
30 |
||||||||||
Total equity |
532,239 |
620,546 |
||||||||||
Total liabilities & equity |
$ 4,918,923 |
$ 4,759,212 |
||||||||||
Net interest income |
$ 74,610 |
$ 72,776 |
||||||||||
Net interest margin |
3.30 |
% |
3.33 |
% |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES |
|||||||||
Loans and Leases by Geographic Distribution |
|||||||||
(Unaudited) |
TABLE 9 |
||||||||
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|||||
(Dollars in thousands) |
2015 |
2015 |
2014 |
2014 |
2014 |
||||
Hawaii: |
|||||||||
Commercial, financial and agricultural |
$ 341,468 |
$ 318,228 |
$ 287,254 |
$ 276,804 |
$ 268,037 |
||||
Real estate: |
|||||||||
Construction |
80,168 |
109,256 |
111,010 |
105,619 |
96,138 |
||||
Mortgage: |
|||||||||
- residential |
1,351,962 |
1,300,304 |
1,282,324 |
1,251,808 |
1,226,864 |
||||
- commercial |
588,334 |
586,281 |
587,322 |
579,654 |
568,672 |
||||
Consumer |
254,655 |
249,151 |
254,259 |
250,838 |
243,148 |
||||
Leases |
2,589 |
2,885 |
3,140 |
3,691 |
4,087 |
||||
Total loans and leases |
2,619,176 |
2,566,105 |
2,525,309 |
2,468,414 |
2,406,946 |
||||
Allowance for loan and lease losses |
(57,402) |
(60,676) |
(62,685) |
(65,747) |
(65,367) |
||||
Net loans and leases |
$ 2,561,774 |
$ 2,505,429 |
$ 2,462,624 |
$ 2,402,667 |
$ 2,341,579 |
||||
U.S. Mainland: |
|||||||||
Commercial, financial and agricultural |
$ 158,133 |
$ 182,455 |
$ 176,509 |
$ 165,527 |
$ 164,707 |
||||
Real estate: |
|||||||||
Construction |
3,387 |
3,465 |
3,544 |
3,621 |
3,740 |
||||
Mortgage: |
|||||||||
- residential |
- |
- |
- |
- |
- |
||||
- commercial |
106,859 |
114,975 |
115,951 |
116,920 |
129,060 |
||||
Consumer |
118,500 |
100,772 |
110,885 |
120,273 |
89,730 |
||||
Leases |
- |
- |
- |
- |
- |
||||
Total loans and leases |
386,879 |
401,667 |
406,889 |
406,341 |
387,237 |
||||
Allowance for loan and lease losses |
(9,522) |
(10,757) |
(11,355) |
(17,091) |
(18,232) |
||||
Net loans and leases |
$ 377,357 |
$ 390,910 |
$ 395,534 |
$ 389,250 |
$ 369,005 |
||||
Total: |
|||||||||
Commercial, financial and agricultural |
$ 499,601 |
$ 500,683 |
$ 463,763 |
$ 442,331 |
$ 432,744 |
||||
Real estate: |
|||||||||
Construction |
83,555 |
112,721 |
114,554 |
109,240 |
99,878 |
||||
Mortgage: |
|||||||||
- residential |
1,351,962 |
1,300,304 |
1,282,324 |
1,251,808 |
1,226,864 |
||||
- commercial |
695,193 |
701,256 |
703,273 |
696,574 |
697,732 |
||||
Consumer |
373,155 |
349,923 |
365,144 |
371,111 |
332,878 |
||||
Leases |
2,589 |
2,885 |
3,140 |
3,691 |
4,087 |
||||
Total loans and leases |
3,006,055 |
2,967,772 |
2,932,198 |
2,874,755 |
2,794,183 |
||||
Allowance for loan and lease losses |
(66,924) |
(71,433) |
(74,040) |
(82,838) |
(83,599) |
||||
Net loans and leases |
$ 2,939,131 |
$ 2,896,339 |
$ 2,858,158 |
$ 2,791,917 |
$ 2,710,584 |
CENTRAL PACIFIC FINANCIAL CORP AND SUBSIDIARIES |
|||||||
Nonperforming Assets, Past Due and Restructured Loans |
|||||||
(Unaudited) |
TABLE 10 |
||||||
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|||
(Dollars in thousands) |
2015 |
2015 |
2014 |
2014 |
2014 |
||
Nonaccrual loans (including loans held for sale): |
|||||||
Commercial, financial and agricultural |
$ 3,175 |
$ 13,377 |
$ 13,007 |
$ 15,625 |
$ 16,657 |
||
Real estate: |
|||||||
Construction |
133 |
146 |
310 |
324 |
373 |
||
Mortgage-residential |
10,032 |
11,430 |
13,048 |
12,691 |
13,608 |
||
Mortgage-commercial |
13,490 |
12,468 |
12,722 |
13,056 |
6,236 |
||
Consumer |
- |
- |
- |
- |
- |
||
Leases |
- |
- |
- |
- |
- |
||
Total nonaccrual loans |
26,830 |
37,421 |
39,087 |
41,696 |
36,874 |
||
Other real estate: |
|||||||
Commercial, financial and agricultural |
- |
- |
- |
- |
- |
||
Real estate: |
|||||||
Construction |
- |
- |
747 |
1,804 |
3,048 |
||
Mortgage-residential |
2,433 |
3,349 |
2,201 |
1,685 |
2,041 |
||
Mortgage-commercial |
2,845 |
- |
- |
107 |
158 |
||
Consumer |
- |
- |
- |
- |
- |
||
Leases |
- |
- |
- |
- |
- |
||
Total other real estate |
5,278 |
3,349 |
2,948 |
3,596 |
5,247 |
||
Total nonperforming assets |
32,108 |
40,770 |
42,035 |
45,292 |
42,121 |
||
Loans delinquent for 90 days or more: |
|||||||
Commercial, financial and agricultural |
- |
- |
- |
- |
- |
||
Real estate: |
|||||||
Construction |
- |
- |
- |
- |
- |
||
Mortgage-residential |
- |
- |
- |
- |
99 |
||
Mortgage-commercial |
- |
- |
- |
- |
- |
||
Consumer |
45 |
5 |
77 |
62 |
20 |
||
Leases |
- |
- |
- |
- |
- |
||
Total loans delinquent for 90 days or more |
45 |
5 |
77 |
62 |
119 |
||
Restructured loans still accruing interest: |
|||||||
Commercial, financial and agricultural |
339 |
350 |
361 |
373 |
384 |
||
Real estate: |
|||||||
Construction |
839 |
866 |
892 |
918 |
944 |
||
Mortgage-residential |
16,428 |
17,084 |
17,845 |
17,980 |
18,456 |
||
Mortgage-commercial |
1,360 |
1,516 |
10,405 |
10,671 |
10,941 |
||
Consumer |
- |
- |
- |
- |
- |
||
Leases |
- |
- |
- |
- |
- |
||
Total restructured loans still accruing interest |
18,966 |
19,816 |
29,503 |
29,942 |
30,725 |
||
Total nonperforming assets, loans delinquent for 90 days or more and restructured loans still accruing interest |
$ 51,119 |
$ 60,591 |
$ 71,615 |
$ 75,296 |
$ 72,965 |
||
Total nonaccrual loans as a percentage of loans and leases |
0.89% |
1.26% |
1.33% |
1.45% |
1.32% |
||
Total nonperforming assets as a percentage of loans and leases, and other real estate |
1.07% |
1.37% |
1.43% |
1.57% |
1.50% |
||
Total nonperforming assets and loans delinquent for 90 days or more as a percentage of loans and leases, and other real estate |
1.07% |
1.37% |
1.43% |
1.58% |
1.51% |
||
Total nonperforming assets, loans delinquent for 90 days or more and restructured loans still accruing interest as a percentage of loans and leases, and other real estate |
1.70% |
2.04% |
2.44% |
2.62% |
2.61% |
||
Quarter to quarter changes in nonperforming assets: |
|||||||
Balance at beginning of quarter |
$ 40,770 |
$ 42,035 |
$ 45,292 |
$ 42,121 |
$ 54,046 |
||
Additions |
6,761 |
1,429 |
1,986 |
8,824 |
2,485 |
||
Reductions |
|||||||
Payments |
(3,411) |
(1,712) |
(843) |
(2,209) |
(4,327) |
||
Return to accrual status |
(274) |
(197) |
(190) |
(1,544) |
(9,278) |
||
Sales of nonperforming assets |
(8,280) |
(949) |
(1,444) |
(542) |
(817) |
||
Charge-offs/valuation adjustments |
(3,458) |
164 |
(2,766) |
(1,358) |
12 |
||
Total reductions |
(15,423) |
(2,694) |
(5,243) |
(5,653) |
(14,410) |
||
Balance at end of quarter |
$ 32,108 |
$ 40,770 |
$ 42,035 |
$ 45,292 |
$ 42,121 |
CENTRAL PACIFIC FINANCIAL CORP AND SUBSIDIARIES |
|||||||||||||
Allowance for Loan and Lease Losses |
|||||||||||||
(Unaudited) |
TABLE 11 |
||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||
June 30, |
March 31, |
June 30, |
June 30, |
June 30, |
|||||||||
(Dollars in thousands) |
2015 |
2015 |
2014 |
2015 |
2014 |
||||||||
Allowance for loan and lease losses: |
|||||||||||||
Balance at beginning of period |
$ 71,433 |
$ 74,040 |
$ 83,162 |
$ 74,040 |
$ 83,820 |
||||||||
Provision (credit) for loan and lease losses |
(7,319) |
(2,747) |
1,995 |
(10,066) |
679 |
||||||||
Charge-offs: |
|||||||||||||
Commercial, financial and agricultural |
4,003 |
931 |
1,538 |
4,934 |
1,671 |
||||||||
Real estate: |
|||||||||||||
Construction |
- |
- |
- |
- |
- |
||||||||
Mortgage-residential |
50 |
14 |
102 |
64 |
139 |
||||||||
Mortgage-commercial |
- |
- |
1,041 |
- |
1,041 |
||||||||
Consumer |
1,214 |
1,841 |
615 |
3,055 |
1,135 |
||||||||
Leases |
- |
- |
- |
- |
8 |
||||||||
Total charge-offs |
5,267 |
2,786 |
3,296 |
8,053 |
3,994 |
||||||||
Recoveries: |
|||||||||||||
Commercial, financial and agricultural |
3,279 |
594 |
560 |
3,873 |
1,185 |
||||||||
Real estate: |
|||||||||||||
Construction |
464 |
123 |
342 |
587 |
744 |
||||||||
Mortgage-residential |
397 |
1,488 |
529 |
1,885 |
623 |
||||||||
Mortgage-commercial |
3,562 |
13 |
12 |
3,575 |
25 |
||||||||
Consumer |
375 |
708 |
292 |
1,083 |
512 |
||||||||
Leases |
- |
- |
3 |
- |
5 |
||||||||
Total recoveries |
8,077 |
2,926 |
1,738 |
11,003 |
3,094 |
||||||||
Net charge-offs (recoveries) |
(2,810) |
(140) |
1,558 |
(2,950) |
900 |
||||||||
Balance at end of period |
$ 66,924 |
$ 71,433 |
$ 83,599 |
$ 66,924 |
$ 83,599 |
||||||||
Average loans and leases, net of unearned |
2,981,184 |
2,955,525 |
2,762,963 |
2,968,425 |
2,714,662 |
||||||||
Annualized ratio of net charge-offs (recoveries) to average loans and leases |
(0.38) |
% |
(0.02) |
% |
0.23 |
% |
(0.20) |
% |
0.07 |
% |
|||
Ratio of allowance for loan and lease losses to loans and leases outstanding |
2.23 |
% |
2.41 |
% |
2.99 |
% |
2.23 |
% |
2.99 |
% |
SOURCE Central Pacific Financial Corp.
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