Central Pacific Financial Corp. Reports Increase In Second Quarter Earnings To $18.7 Million

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- Net income of $18.7 million, or $0.66 per diluted share for the second quarter.

- ROA of 1.06% and ROE of 13.56% for the second quarter.

- Core loans increased by $102.7 million in the second quarter, while PPP loans decreased by $163.2 million for a net decrease in total loans of $60.5 million from the first quarter of 2021.

- Total deposits of $6.40 billion increased by $188.2 million, or 3.0% from the first quarter of 2021.

- Cost of average total deposits of 0.06% in the second quarter.

- Board of Directors declared a quarterly cash dividend of $0.24 per share.

- Repurchased 156,600 shares of the Company's common stock, at a total cost of $4.3 million.

HONOLULU, July 28, 2021 /PRNewswire/ -- Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank"), today reported net income in the second quarter of 2021 of $18.7 million, or fully diluted earnings per share ("EPS") of $0.66, compared to net income in the second quarter of 2020 of $9.9 million, or EPS of $0.35, and net income in the first quarter of 2021 of $18.0 million, or EPS of $0.64.

Central Pacific Financial Corp. Logo (PRNewsFoto/Central Pacific Financial Corp.)
Central Pacific Financial Corp. Logo (PRNewsFoto/Central Pacific Financial Corp.)

"We are pleased to report very strong financial results with quarterly pre-tax income reaching a new high since 2007," said Paul Yonamine, Chairman and Chief Executive Officer. "During the second quarter we resumed share repurchases as the Hawaii economy continued to rebound, and our asset quality, liquidity and capital levels remained very strong."

"Our quarterly results are a reflection of the extraordinary work of our teams who continue to diligently manage risks while growing our loans and deposits to meet our customer's needs," said Catherine Ngo, President.

On July 27, 2021, the Company's Board of Directors declared a quarterly cash dividend of $0.24 per share on its outstanding common shares. The dividend will be payable on September 15, 2021 to shareholders of record at the close of business on August 31, 2021.

During the second quarter of 2021, the Company resumed repurchases under its common stock repurchase program and repurchased 156,600 shares of common stock, at a total cost of $4.3 million, or an average cost per share of $27.63. The Company's remaining repurchase authority under its common stock repurchase program at June 30, 2021 is $20.7 million. During the six months ended June 30, 2021, the Company returned $17.6 million in capital to its shareholders through cash dividends and share repurchases.

Earnings Highlights
Net interest income for the second quarter of 2021 was $52.1 million, compared to $49.3 million in the year-ago quarter and $49.8 million in the previous quarter. Net interest margin for the second quarter of 2021 was 3.16%, compared to 3.26% in the year-ago quarter and 3.19% in the previous quarter. The sequential quarter increase in net interest income is primarily due to an increase in loan fees on PPP loans and was partially offset by decreases in yields earned on the Company's interest-earning assets. Net interest income for the second quarter of 2021 included $7.9 million in net interest income and loan fees on PPP loans, compared to $5.2 million in the previous quarter. Net deferred fees on PPP loans totaled $15.9 million and $20.3 million at June 30, 2021 and March 31, 2021, respectively. Additional information on average balances, interest income and expenses and yields and rates is presented in Tables 4 and 5.

In the second quarter of 2021, the Company recorded a credit to the provision for credit losses on loans of $3.4 million, compared to a provision of $11.2 million in the year-ago quarter and a credit to the provision of $0.8 million in the previous quarter. The credit to the provision for credit losses in the second quarter of 2021 was driven by an improved economic forecast and positive migration of loan grades as the State of Hawaii continues to recover from the COVID-19 pandemic.

Other operating income for the second quarter of 2021 totaled $10.5 million, compared to $10.7 million in the year-ago quarter and $10.7 million in the previous quarter. Additional information on other operating income is presented in Table 3.

Other operating expense for the second quarter of 2021 totaled $41.4 million, compared to $35.9 million in the year-ago quarter and $37.8 million in the previous quarter. The increase from the previous quarter was primarily due to an increase in salaries and employee benefits of $4.0 million. Additional information on other operating expense is presented in Table 3.

The efficiency ratio for the second quarter of 2021 was 66.20%, compared to 59.81% in the year-ago quarter and 62.54% in the previous quarter.

The effective tax rate for the second quarter of 2021 was 23.9%, compared to 23.0% in the year-ago quarter and 23.2% in the previous quarter.

Balance Sheet Highlights
Total assets at June 30, 2021 of $7.18 billion increased from $6.63 billion at June 30, 2020, and increased from $6.98 billion at March 31, 2021.

Total loans at June 30, 2021 of $5.08 billion increased from $5.00 billion at June 30, 2020, and decreased from $5.14 billion at March 31, 2021. The sequential quarter decrease in total loans was due to a decrease in PPP loans of $163.2 million, offset by a net increase in core loans of $102.7 million. In the second quarter of 2021, the Company received repayments of PPP loans totaling $195.8 million, which were offset by PPP originations of $28.1 million. Loans on forbearance or deferral totaled $3.5 million, or less than 1% of total loans at June 30, 2021, and declined 91.2% from the first quarter of 2021. Loans by geographic distribution are summarized in Table 6.

Total deposits at June 30, 2021 of $6.40 billion increased from $5.79 billion at June 30, 2020, and increased from $6.21 billion at March 31, 2021. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $5.83 billion at June 30, 2021, and increased by $278.6 million from March 31, 2021. The Company's loan-to-deposit ratio was 79.4% at June 30, 2021, compared to 86.4% at June 30, 2020 and 82.8% at March 31, 2021. Core deposit and total deposit balances are summarized in Table 7.

Asset Quality
Nonperforming assets at June 30, 2021 totaled $6.7 million, or 0.09% of total assets, compared to $4.7 million, or 0.07% of total assets at June 30, 2020, and $7.2 million, or 0.10% of total assets at March 31, 2021. Additional information on nonperforming assets, past due and restructured loans is presented in Table 8.

Net charge-offs in the second quarter of 2021 totaled $0.8 million, compared to net charge-offs of $2.9 million in the year-ago quarter, and net charge-offs of $0.7 million in the previous quarter.

The allowance for credit losses, as a percentage of total loans at June 30, 2021 was 1.53%, compared to 1.35% at June 30, 2020 and 1.59% at March 31, 2021. Excluding PPP loans, the allowance for credit losses, as a percentage of core loans at June 30, 2021 was 1.68%, compared to 1.80% at March 31, 2021. Additional information on net charge-offs and recoveries and the allowance for credit losses is presented in Tables 9 and 10.

Capital
Total shareholders' equity was $552.8 million at June 30, 2021, compared to $544.3 million and $542.9 million at June 30, 2020 and March 31, 2021, respectively.

The Company maintained its strong capital position and its capital ratios continue to exceed the levels required to be considered a "well-capitalized" institution for regulatory purposes under Basel III. At June 30, 2021, the Company's leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios were 8.6%, 12.7%, 14.9%, and 11.6%, respectively, compared to 8.9%, 13.1%, 15.4%, and 12.0%, respectively, at March 31, 2021.

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.cpb.bank. Alternatively, investors may participate in the live call by dialing 1-877-505-7644. A playback of the call will be available through August 28, 2021 by dialing 1-877-344-7529 (passcode: 10158618) and on the Company's website. Information which may be discussed in the conference call is provided in an earnings supplement presentation on the Company's website at http://ir.cpb.bank.

About Central Pacific Financial Corp.
Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $7.2 billion in assets as of June 30, 2021. Central Pacific Bank, its primary subsidiary, operates 31 branches and 70 ATMs in the state of Hawaii. For additional information, please visit the Company's website at http://www.cpb.bank.

Forward-Looking Statements
This document may contain forward-looking statements concerning: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, the payment or nonpayment of dividends, capital position, credit losses, net interest margin or other financial items; statements of plans, objectives and expectations of Central Pacific Financial Corp. or its management or Board of Directors, including those relating to business plans, use of capital resources, products or services and regulatory developments and regulatory actions; statements of future economic performance including anticipated performance results from our RISE2020 and other business initiatives; or any statements of the assumptions underlying or relating to any of the foregoing. Words such as "believes," "plans," "anticipates," "expects," "intends," "forecasts," "hopes," "targeting," "continue," "remain," "will," "should," "estimates," "may" and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

While we believe 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 differ materially from those statements or projections for a variety of reasons, including, but not limited to: the adverse effects of the COVID-19 pandemic virus on local, national and international economies, including, but not limited to, the adverse impact on tourism and construction in the State of Hawaii, our borrowers, customers, third-party contractors, vendors and employees as well as the effects of government programs and initiatives in response to COVID-19; the impact of our participation in the Paycheck Protection Program ("PPP") and fulfillment of government guarantees on our PPP loans; the increase in inventory or adverse conditions in the real estate market and deterioration in the construction industry; adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality, and losses in our loan portfolio; our ability to successfully implement our RISE2020 and other business initiatives; the impact of local, national, and international economies and events (including natural disasters such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, earthquakes and pandemic virus and disease, including COVID-19) 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 domestic economic conditions, including any destabilization in the financial industry and deterioration of the real estate market, as well as the impact of declining levels of consumer and business confidence in the state of the economy in general and in financial institutions in particular; 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 (the "Dodd-Frank Act"), changes in capital standards, other regulatory reform and federal and state legislation, including but not limited to regulations promulgated by the Consumer Financial Protection Bureau (the "CFPB"), government-sponsored enterprise reform, and any related rules and regulations which affect 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, the results of regulatory examinations or reviews and the effect of, and our ability to comply with, any regulatory orders or actions we are or may become subject to; ability to successfully implement our initiatives to lower our efficiency ratio; 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 (the "FRB" or the "Federal Reserve"); inflation, interest rate, securities market and monetary fluctuations, including the anticipated replacement of the London Interbank Offered Rate ("LIBOR") Index and the impact on our loans and debt which are tied to that index; negative trends in our market capitalization and adverse changes in the price of the Company's common stock; political instability; acts of war or terrorism; pandemic virus and disease, including COVID-19; changes in consumer spending, borrowings and savings habits; failure to maintain effective internal control over financial reporting or disclosure controls and procedures; cybersecurity and data privacy breaches and the consequence therefrom; the ability to address deficiencies in our internal controls over financial reporting or disclosure controls and procedures; 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 ("FASB") and other accounting standard setters and the cost and resources required to implement such changes; our ability to attract and retain key personnel; changes in our organization, compensation and benefit plans; and our success at managing the risks involved in the foregoing items.

For further information with respect to factors that could cause actual results to materially differ from the expectations or projections stated in the forward-looking statements, 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. We urge investors to consider all of these factors carefully in evaluating the forward-looking statements contained in this Form 8-K. Forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events except as required by law.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES


Financial Highlights


(Unaudited)

TABLE 1





Three Months Ended


Six Months Ended

(Dollars in thousands,


Jun 30,


Mar 31,


Dec 31,


Sep 30,


Jun 30,


Jun 30,

except for per share amounts)


2021


2021


2020


2020


2020


2021


2020

CONDENSED INCOME STATEMENT















Net interest income


$

52,061



$

49,804



$

51,474



$

49,120



$

49,259



$

101,865



$

97,089


(Credit) provision for credit losses [1]


(3,443)



(821)



4,898



14,873



11,213



(4,264)



22,340


Total other operating income


10,530



10,711



14,057



11,563



10,692



21,241



19,578


Total other operating expense [1]


41,433



37,846



44,690



36,751



35,854



79,279



70,296


Income tax expense


5,887



5,452



3,772



2,200



2,967



11,339



5,788


Net income


18,714



18,038



12,171



6,859



9,917



36,752



18,243


Basic earnings per common share


$

0.66



$

0.64



$

0.43



$

0.24



$

0.35



$

1.31



$

0.65


Diluted earnings per common share


0.66



0.64



0.43



0.24



0.35



1.29



0.65


Dividends declared per common share


0.24



0.23



0.23



0.23



0.23



0.47



0.46

















PERFORMANCE RATIOS















Return on average assets (ROA) [2]


1.06

%


1.07

%


0.74

%


0.42

%


0.61

%


1.07

%


0.58

%

Return on average shareholders' equity (ROE) [2]


13.56



13.07



8.87



4.99



7.34



13.31



6.77


Average shareholders' equity to average assets


7.84



8.19



8.29



8.36



8.36



8.01



8.64


Efficiency ratio [3]


66.20



62.54



68.20



60.56



59.81



64.40



60.25


Net interest margin (NIM) [2]


3.16



3.19



3.32



3.19



3.26



3.18



3.34


Dividend payout ratio [4]


36.36



35.94



53.49



95.83



65.71



36.43



70.77

















SELECTED AVERAGE BALANCES















Average loans, including loans held for sale


$

5,110,820



$

5,079,874



$

5,034,717



$

5,016,955



$

4,902,905



$

5,095,433



$

4,682,626


Average interest-earning assets


6,606,779



6,305,786



6,202,228



6,160,381



6,073,361



6,457,115



5,847,202


Average assets


7,039,928



6,738,825



6,621,127



6,574,492



6,468,129



6,890,195



6,237,592


Average deposits


6,269,516



5,958,742



5,755,257



5,728,147



5,614,595



6,114,975



5,368,056


Average interest-bearing liabilities


4,253,382



4,161,453



4,163,396



4,118,726



4,082,699



4,207,670



4,000,016


Average shareholders' equity


552,102



551,976



548,663



549,378



540,802



552,039



538,762



CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES


Financial Highlights


(Unaudited)

TABLE 1 (CONTINUED)





Jun 30,


Mar 31,


Dec 31,


Sep 30,


Jun 30,

(dollars in thousands)


2021


2021


2020


2020


2020

REGULATORY CAPITAL RATIOS











Central Pacific Financial Corp











Leverage capital ratio


8.6

%


8.9

%


8.8

%


8.8

%


8.9

%

Tier 1 risk-based capital ratio


12.7



13.1



12.9



12.8



12.5


Total risk-based capital ratio


14.9



15.4



15.2



13.9



13.6


Common equity tier 1 capital ratio


11.6



12.0



11.8



11.6



11.4


Central Pacific Bank











Leverage capital ratio


9.1



9.4



9.4



8.6



8.7


Tier 1 risk-based capital ratio


13.5



13.9



13.7



12.5



12.2


Total risk-based capital ratio


14.6



15.0



14.9



13.6



13.3


Common equity tier 1 capital ratio


13.5



13.9



13.7



12.5



...

12.2


CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES


Financial Highlights


(Unaudited)

TABLE 1 (CONTINUED)














Jun 30,


Mar 31,


Dec 31,


Sep 30,


Jun 30,

(dollars in thousands, except for per share amounts)


2021


2021


2020


2020


2020

BALANCE SHEET











Total loans, net of deferred fees and costs


$

5,077,318



$

5,137,849



$

4,964,113



$

5,030,626



$

5,003,438


Total assets


7,178,481



6,979,265



6,594,583



6,648,142



6,632,972


Total deposits


6,397,159



6,208,950



5,796,118



5,678,929



5,794,685


Long-term debt


105,495



105,436



105,385



101,547



167,491


Total shareholders' equity


552,793



542,865



546,685



543,903



544,271


Total shareholders' equity to total assets


7.70

%


7.78

%


8.29

%


8.18

%


8.21

%












ASSET QUALITY











Allowance for credit losses (ACL) [1] [2]


$

77,781



$

81,553



$

83,269



$

80,542



$

67,339


Non-performing assets (NPA)


6,745



7,194



6,192



13,187



4,741


ACL to total loans [1]


1.53

%


1.59

%


1.68

%


1.60

%


1.35

%

ACL to core loans (refer to Table 10) [1]


1.68

%


1.80

%


1.83

%


1.79

%


1.50

%

ACL to non-performing assets [1]


1,153.17

%


1,133.63

%


1,344.78

%


610.77

%


1,420.35

%

NPA to total assets


0.09

%


0.10

%


0.09

%


0.20

%


0.07

%












PER SHARE OF COMMON STOCK OUTSTANDING











Book value per common share


$

19.59



$

19.19



$

19.40



$

19.30



$

19.33


Closing market price per common share


26.06



26.68



19.01



13.57



16.03














[1] As of January 1, 2021, the provision for credit losses on off-balance sheet credit exposures (previously included in other operating expense) is included in the provision for credit losses line on the consolidated statements of income. Prior period amounts have been reclassified to conform to the current period presentation. The allowance for off-balance sheet credit exposures continues to be included in other liabilities

[2] ROA, ROE and ROTE are annualized based on a 30/360 day convention. Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual)

[3] Efficiency ratio is defined as total operating expense divided by total revenue (net interest income and total other operating income)

[4] Dividend payout ratio is defined as dividends declared per share divided by diluted earnings per share

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES


Consolidated Balance Sheets


(Unaudited)

TABLE 2














Jun 30,


Mar 31,


Dec 31,


Sep 30,


Jun 30,

(Dollars in thousands, except share data)


2021


2021


2020


2020


2020

ASSETS











Cash and due from financial institutions


$

116,009



$

93,358



$

97,546



$

89,665



$

102,132


Interest-bearing deposits in other financial institutions


224,469



166,533



6,521



5,489



41,201


Investment securities:











Available-for-sale debt securities, at fair value


1,407,340



1,216,341



1,182,609



1,166,319



1,168,594


Equity securities, at fair value


1,578



1,435



1,351



1,204



1,209


Total investment securities


1,408,918



1,217,776



1,183,960



1,167,523



1,169,803


Loans held for sale


5,361



5,234



16,687



23,962



10,443


Loans, net of deferred fees and costs


5,077,318



5,137,849



4,964,113



5,030,626



5,003,438


Less allowance for credit losses


77,781



81,553



83,269



80,542



67,339


Loans, net of allowance for credit losses


4,999,537



5,056,296



4,880,844



4,950,084



4,936,099


Premises and equipment, net


76,740



72,599



65,278



61,095



55,032


Accrued interest receivable


19,014



19,440



20,224



21,478



19,590


Investment in unconsolidated subsidiaries


31,052



31,487



29,968



30,239



16,428


Other real estate owned








128




Mortgage servicing rights


10,500



11,094



11,865



12,429



12,771


Bank-owned life insurance


167,289



167,110



163,161



161,743



161,758


Federal Home Loan Bank ("FHLB") stock


8,149



8,155



8,237



17,468



9,229


Right of use lease asset


41,890



44,727



45,857



44,896



50,039


Other assets


69,553



85,456



64,435



61,943



48,447


Total assets


$

7,178,481



$

6,979,265



$

6,594,583



$

6,648,142



$

6,632,972


LIABILITIES AND SHAREHOLDERS' EQUITY











Deposits:











Noninterest-bearing demand


$

2,203,806



$

2,070,428



$

1,790,269



$

1,762,476



$

1,851,012


Interest-bearing demand


1,341,280



1,237,574



1,174,888



1,114,123



1,067,483


Savings and money market


2,048,945



2,004,368



1,932,043



1,881,104



1,945,744


Time


803,128



896,580



898,918



921,226



930,446


Total deposits


6,397,159



6,208,950



5,796,118



5,678,929



5,794,685


FHLB advances and other short-term borrowings






22,000



206,000




Long-term debt


105,495



105,436



105,385



101,547



167,491


Lease liability


43,112



46,033



47,191



45,355



50,440


Other liabilities


79,874



75,933



77,156



72,369



76,050


Total liabilities


6,625,640



6,436,352



6,047,850



6,104,200



6,088,666


Shareholders' equity:











Preferred stock, no par value, authorized 1,000,000 shares; issued
and outstanding: none at June 30, 2021, March 31, 2021,
December 31, 2020, September 30, 2020, and June 30, 2020











Common stock, no par value, authorized 185,000,000 shares;
issued and outstanding: 28,218,860 at June 30, 2021, 28,282,530
at March 31, 2021, 28,183,340 at December 31, 2020, 28,179,798
at September 30, 2020, and 28,154,159 at June 30, 2020


440,854



443,505



442,635



442,635



442,699


Additional paid-in capital


96,182



95,721



94,842



94,336



93,007


Retained earnings (accumulated deficit)


10,831



628



(10,920)



(16,609)



(16,986)


Accumulated other comprehensive income


4,926



3,011



20,128



23,541



25,551


Total shareholders' equity


552,793



542,865



546,685



543,903



544,271


Non-controlling interest


48



48



48



39



35


Total equity


552,841



542,913



546,733



543,942



544,306


Total liabilities and shareholders' equity


$

7,178,481



$

6,979,265



$

6,594,583



$

6,648,142



$

6,632,972
























CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES


Consolidated Statements of Income


(Unaudited)

TABLE 3





Three Months Ended


Six Months Ended



June 30,


March 31,


December 31,


September 30,


June 30,


June 30,

(Dollars in thousands, except per share data)


2021


2021


2020


2020


2020


2021


2020

Interest income:















Interest and fees on loans


$

49,024



$

46,074



$

48,259



$

45,751



$

45,915



$

95,098



$

92,119


Interest and dividends on investment securities:















Taxable investment securities


4,447



5,106



5,002



5,233



6,310



9,553



13,067


Tax-exempt investment securities


346



514



504



621



599



860



1,267


Dividend income on investment securities


18



18



18



17



17



36



34


Interest on deposits in other financial institutions


61



10



4



3



3



71



39


Dividend income on FHLB stock


63



59



114



128



106



122



238


Total interest income


53,959



51,781



53,901



51,753



52,950



105,740



106,764


Interest expense:















Interest on deposits:















Demand


93



86



105



115



114



179



290


Savings and money market


282



274



314



417



567



556



1,685


Time


498



588



813



1,284



2,124



1,086



5,392


Interest on short-term borrowings




2



65



71



74



2



582


Interest on long-term debt


1,025



1,027



1,130



746



812



2,052



1,726


Total interest expense


1,898



1,977



2,427



2,633



3,691



3,875



9,675


Net interest income


52,061



49,804



51,474



49,120



49,259



101,865



97,089


(Credit) provision for credit losses


(3,443)



(821)



4,898



14,873



11,213



(4,264)



22,340


Net interest income after (credit) provision for
credit losses


55,504



50,625



46,576



34,247



38,046



106,129



74,749


Other operating income:















Mortgage banking income


1,533



2,970



5,434



4,345



3,566



4,503



3,903


Service charges on deposit accounts


1,443



1,478



1,560



1,475



1,149



2,921



3,199


Other service charges and fees


4,619



3,790



3,709



3,345



2,916



8,409



7,813


Income from fiduciary activities


1,269



1,231



1,113



1,149



1,270



2,500



2,567


Net gain (loss) on sales of investment securities


50





151



(352)





50




Income from bank-owned life insurance


1,210



797



1,219



1,179



1,424



2,007



1,405


Other


406



445



871



422



367



851



691


Total other operating income


10,530



10,711



14,057



11,563



10,692



21,241



19,578


Other operating expense:















Salaries and employee benefits


23,790



19,827



23,090



20,375



20,329



43,617



40,383


Net occupancy


4,055



3,764



4,011



3,834



3,645



7,819



7,317


Equipment


1,048



1,000



1,157



1,234



1,043



2,048



2,140


Communication expense


756



769



758



856



774



1,525



1,611


Legal and professional services


2,572



2,377



2,507



2,262



2,238



4,949



4,266


Computer software expense


3,398



3,783



3,625



3,114



3,035



7,181



5,978


Advertising expense


1,329



1,658



756



1,020



923



2,987



2,015


Other


4,485



4,668



8,786



4,056



3,867



9,153



6,586


Total other operating expense


41,433



37,846



44,690



36,751



35,854



79,279



70,296


Income before income taxes


24,601



23,490



15,943



9,059



12,884



48,091



24,031


Income tax expense


5,887



5,452



3,772



2,200



2,967



11,339



5,788


Net income


$

18,714



$

18,038



$

12,171



$

6,859



$

9,917



$

36,752



$

18,243


Per common share data:















Basic earnings per share


$

0.66



$

0.64



$

0.43



$

0.24



$

0.35



$

1.31



$

0.65


Diluted earnings per share


0.66



0.64



0.43



0.24



0.35



1.29



0.65


Cash dividends declared


0.24



0.23



0.23



0.23



0.23



0.47



0.46


Basic weighted average shares outstanding


28,173,710



28,108,648



28,071,151



28,060,020



28,040,802



28,141,360



28,083,602


Diluted weighted average shares outstanding


28,456,624



28,313,014



28,177,366



28,111,664



28,095,230



28,407,479



28,190,132

















Note: Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES


Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)


(Unaudited)

TABLE 4





Three Months Ended


Three Months Ended


Three Months Ended



June 30, 2021


March 31, 2021


June 30, 2020



Average


Average




Average


Average




Average


Average



(Dollars in thousands)


Balance


Yield/Rate


Interest


Balance


Yield/Rate


Interest


Balance


Yield/Rate


Interest

ASSETS

Interest-earning assets:



















Interest-bearing deposits in
other financial institutions


$

222,934



0.11

%


$

61



$

43,442



0.10

%


$

10



$

15,777



0.10

%


$

3


Investment securities, excluding
valuation allowance:



















Taxable


1,172,183



1.52



4,465



1,081,271



1.90



5,124



1,042,441



2.43



6,327


Tax-exempt


92,702



1.89



438



93,665



2.78



651



100,485



3.02



758


Total investment securities


1,264,885



1.55



4,903



1,174,936



1.97



5,775



1,142,926



2.48



7,085


Loans, including loans held for
sale


5,110,820



3.84



49,024



5,079,874



3.66



46,074



4,902,905



3.76



45,915


Federal Home Loan Bank stock


8,140



3.11



63



7,534



3.13