HONOLULU, Jan. 30, 2019 /PRNewswire/ — Central Pacific Financial Corp. (NYSE: CPF), (the “Company”), today reported net income in the fourth quarter of 2018 of $15.8 million, or diluted earnings per share (“EPS”) of $0.54, compared to net income in the fourth quarter of 2017 of $4.3 million, or EPS of $0.14, and net income in the third quarter of 2018 of $15.2 million, or EPS of $0.52. Net income in the fourth quarter of 2017 included an estimated one-time, non-cash charge to income tax expense of $7.4 million, representing a $0.25 decrease in EPS, due to the revaluation of the Company’s net deferred tax assets (“DTA”) resulting from the reduction in the corporate Federal income tax rate in connection with the enactment of H.R.1, commonly referred to as the Tax Cuts and Jobs Act (“Tax Reform”). Net income for the year ended December 31, 2018 totaled $59.5 million, or diluted EPS of $2.01, compared to net income for the year ended December 31, 2017 of $41.2 million, or EPS of $1.34.

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

“We had a strong end to the year with significant loan growth and both ROA and ROE improvements. We plan to carry this momentum into 2019 as we drive forward our strategic initiatives to continue to enhance shareholder value.” said Paul Yonamine, Chairman and Chief Executive Officer.  “Strong loan growth has been a consistent driver of our performance throughout the year while our asset quality remained strong. Our solid financial performance in 2018 is reflective of the excellent team effort and dedication from our employees.” said Catherine Ngo, President.

In January 2019, the Company’s Board of Directors declared a quarterly cash dividend of $0.21 per share on its outstanding common shares. The dividend will be payable on March 15, 2019 to shareholders of record at the close of business on February 28, 2019.

During the fourth quarter of 2018, the Company repurchased 305,867 shares of common stock, at a total cost of $8.1 million, or an average cost per share of $26.35. During the year ended December 31, 2018, the Company repurchased 1,155,157 shares of common stock, or approximately 3.8% of its common stock outstanding as of December 31, 2017. Total cost of the shares repurchased during the year ended December 31, 2018 was $32.8 million, or an average cost per share of $28.42. The Company’s remaining repurchase authority under its common stock repurchase program at December 31, 2018 is $20.7 million. During the year ended December 31, 2018, the Company returned $57.0 million in capital to its shareholders through cash dividends and share repurchases.

Earnings Highlights
Net interest income for the fourth quarter of 2018 was $44.7 million, compared to $42.8 million in the year-ago quarter and $43.3 million in the previous quarter. Net interest margin for the fourth quarter of 2018 was 3.28%, compared to 3.27% in the year-ago quarter and 3.20% in the previous quarter. The increases in net interest income and net interest margin from the year-ago and sequential quarters were primarily due to growth in the loan portfolio, combined with increases in the yields earned on the loan and investment securities portfolios. In addition, the Company received $0.5 million in interest recoveries on nonaccrual loans during the current and year-ago quarters, compared to $0.2 million in the previous quarter. These increases were partially offset by higher deposit and borrowing costs from the year-ago period, primarily attributable to the recent increases in the federal funds rate. Rates paid on total interest-bearing deposits remained relatively flat from the previous quarter.

To improve net interest income and net interest margin, on December 17, 2018 and January 7, 2019, the Company redeemed in whole and at par, $20 million on each date (for an aggregate of $40 million) of floating rate trust preferred securities and the underlying floating rate junior subordinated debentures. The subordinated debentures were reported as long-term debt on the Company’s balance sheet with a weighted average interest rate of 5.24%. After the redemptions, the Company has a total of $50 million of floating rate trust preferred securities and underlying floating rate junior subordinated debentures remaining, reported as long-term debt with a current weighted average interest rate of 5.01%.

Other operating income for the fourth quarter of 2018 totaled $9.4 million, compared to $9.0 million in the year-ago quarter and $10.8 million in the previous quarter. The increase from the year-ago quarter was primarily due to higher commissions and fees on investment services of $0.6 million (included in other service charges and fees) and lower amortization of mortgage servicing rights of  $0.3 million (included in mortgage banking income). These increases were partially offset by a loss on sale of investment securities of $0.3 million in the current quarter, combined with a gain on sale of investment securities of $0.2 million in the year ago quarter, and lower income from bank-owned life insurance of $0.4 million. The sequential quarter decrease was primarily due to lower income from bank-owned life insurance of $0.8 million, lower income recovered on nonaccrual loans previously charged-off of $0.3 million (included in other), and the aforementioned loss on sale of investment securities of $0.3 million recorded during the quarter. The lower income from bank-owned life insurance was primarily attributable to the decline in the stock market during the fourth quarter, combined with death benefit income of $0.4 million recorded in the previous quarter.

Other operating expense for the fourth quarter of 2018 totaled $33.6 million, which decreased from $34.4 million in the year-ago quarter and decreased from $34.0 million in the previous quarter. The decrease from the year-ago and sequential quarters were primarily due to lower amortization of core deposit premium of $0.7 million as the intangible asset was fully amortized as of last quarter-end, or September 30, 2018. In addition, the Company recorded a net credit to the reserves for residential mortgage repurchase losses and unfunded loan commitments totaling $0.6 million (included in other) in the current quarter, compared to a net increase to the reserves totaling $0.1 million and $0.3 million (included in other) in the year-ago and previous quarters, respectively.

The efficiency ratio for the fourth quarter of 2018 was 62.21%, compared to 66.32% in the year-ago quarter and 62.84% in the previous quarter. The improvements in the efficiency ratio from the year-ago and sequential quarters were primarily due to the aforementioned improvements in net interest income and other operating expense.

In the fourth quarter of 2018, the Company recorded income tax expense of $6.0 million, compared to $13.4 million in the year-ago quarter and $5.0 million in the previous quarter. The effective tax rate for the fourth quarter of 2018 was 27.6%, compared to 75.7% in the year-ago quarter and 24.7% in the previous quarter. As previously discussed, income tax expense and effective tax rate in the fourth quarter of 2017 was impacted by the enactment of Tax Reform.

Balance Sheet Highlights
Total assets at December 31, 2018 of $5.81 billion increased by $183.3 million, or 3.3% from December 31, 2017, and increased by $78.4 million, or 1.4% from September 30, 2018.

Total loans and leases at December 31, 2018 of $4.08 billion increased by $307.8 million, or 8.2% and $100.3 million, or 2.5% from December 31, 2017 and September 30, 2018, respectively. The increase in total loans and leases from December 31, 2017 was primarily attributable to strong organic growth in the Hawaii loan portfolios totaling $274.3 million, combined with a net increase in the U.S. mainland loan portfolios totaling $33.7 million. The increase in total loans and leases from the third quarter of 2018 was primarily due to strong organic growth in the Hawaii loan portfolios (excluding the Hawaii construction loan portfolio) totaling $88.3 million, combined with a net increase in the U.S. mainland loan portfolios totaling $13.6 million.

Total deposits at December 31, 2018 of $4.95 billion decreased by $9.9 million, or 0.2% from December 31, 2017, and decreased by $57.2 million, or 1.1% from September 30, 2018.  The year-over-year and sequential quarter declines in total deposits were primarily attributable to decreases in government time deposits of $55.8 million and $65.1 million, respectively. Core deposits, which include demand deposits, savings and money market deposits, and time deposits less than $100,000, totaled $4.02 billion at December 31, 2018.  This represents an increase of $24.7 million, or 0.6% from December 31, 2017, and remained relatively unchanged from September 30, 2018. The Company’s loan-to-deposit ratio was 82.5% at December 31, 2018, compared to 76.1% at December 31, 2017 and 79.5% at September 30, 2018. During the quarter, short-term and long-term Federal Home Loan Bank borrowings increased to replace government time deposits and fund loan growth.

Asset Quality
Nonperforming assets at December 31, 2018 totaled $2.7 million, or 0.05% of total assets, compared to $3.6 million, or 0.06% of total assets at December 31, 2017, and $3.0 million, or 0.05% of total assets at September 30, 2018.

Loans delinquent for 90 days or more still accruing interest totaled $0.5 million at December 31, 2018, compared to $0.6 million and $0.3 million at December 31, 2017 and September 30, 2018, respectively.

Net recoveries in the fourth quarter of 2018 totaled $2.5 million, compared to net charge-offs of $1.0 million in the year-ago quarter, and net charge-offs of $1.3 million in the previous quarter. Net recoveries in the fourth quarter of 2018 included a $4.5 million recovery on a U.S. mainland land loan.

In the fourth quarter of 2018, the Company recorded a credit to the provision for loan and lease losses of $1.4 million, compared to a credit of $0.2 million in the year-ago quarter and a credit of $0.1 million in the previous quarter. The aforementioned $4.5 million recovery contributed to the credit to the provision for loan and lease losses in the current quarter. The allowance for loan and lease losses, as a percentage of total loans and leases at December 31, 2018 was 1.17%, compared to 1.33% at December 31, 2017 and 1.18% at September 30, 2018.

Capital
Total shareholders’ equity was $491.7 million at December 31, 2018, compared to $500.0 million and $478.2 million at December 31, 2017 and September 30, 2018, 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 December 31, 2018, the Company’s leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios were 9.9%, 13.5%, 14.7%, and 11.9%, respectively, compared to 10.3%, 14.2%, 15.4%, and 12.0%, respectively, at September 30, 2018. The decline in the ratios was primarily due to  the aforementioned redemption of $20 million in floating rate trust preferred securities and the underlying floating rate junior subordinated debentures which was treated as capital.

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 (8:00 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 March 2, 2019 by dialing 1-877-344-7529 (passcode: 10127971) and on the Company’s website.

About Central Pacific Financial Corp.
Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $5.8 billion in assets.  Central Pacific Bank, its primary subsidiary, operates 35 branches and 78 ATMs in the state of Hawaii, as of December 31, 2018.  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 or actions 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, volcanoes, 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;  the impact of regulatory action on the Company and Central Pacific Bank and legislation affecting the financial services industry; failure to maintain effective internal control over financial reporting or disclosure controls and procedures; 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 the Tax Cuts and Jobs Act; 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, including fintech businesses; the effect of changes in accounting policies and practices, including changes 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; changes in our capital position; our ability to attract and retain skilled directors, 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 and 10-K/A 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

Year Ended

(Dollars in thousands,

except for per share amounts)

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Dec 31,

2018

2018

2018

2018

2017

2018

2017

CONDENSED INCOME STATEMENT

Net interest income

$

44,679

$

43,325

$

42,672

$

42,322

$

42,824

$

172,998

$

167,703

Provision (credit) for loan and lease losses

(1,386)

(59)

532

(211)

(186)

(1,124)

(2,674)

Net interest income after provision (credit) for loan and lease losses

46,065

43,384

42,140

42,533

43,010

174,122

170,377

Total other operating income

9,400

10,820

9,630

8,954

9,043

38,804

36,496

Total other operating expense [1]

33,642

34,025

33,611

33,404

34,397

134,682

131,073

Income before taxes [1]

21,823

20,179

18,159

18,083

17,656

78,244

75,800

Income tax expense [1]

6,031

4,986

3,935

3,806

13,368

18,758

34,596

Net income

15,792

15,193

14,224

14,277

4,288

59,486

41,204

Basic earnings per common share

$

0.54

$

0.52

$

0.48

$

0.48

$

0.14

$

2.02

$

1.36

Diluted earnings per common share

0.54

0.52

0.48

0.48

0.14

2.01

1.34

Dividends declared per common share

0.21

0.21

0.21

0.19

0.18

0.82

0.70

PERFORMANCE RATIOS

Return on average assets (ROA) [2]

1.10

%

1.06

%

1.00

%

1.01

%

0.31

%

1.05

%

0.75

%

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

12.90

12.54

11.83

11.60

3.35

12.22

8.03

Return on average tangible shareholders’ equity (ROTE) [2]

12.90

12.55

11.85

11.64

3.37

12.24

8.08

Average shareholders’ equity to average assets

8.53

8.49

8.49

8.73

9.12

8.56

9.32

Efficiency ratio [1] [3]

62.21

62.84

64.26

65.15

66.32

63.59

64.19

Net interest margin (NIM) [2]

3.28

3.20

3.20

3.21

3.27

3.22

3.28

Dividend payout ratio [4]

38.89

40.38

43.75

39.58

128.57

40.80

52.24

SELECTED AVERAGE BALANCES

Average loans and leases, including loans held for sale

$

4,022,376

$

3,941,511

$

3,836,739

$

3,789,338

$

3,719,684

$

3,898,250

$

3,622,033

Average interest-earning assets

5,451,052

5,418,924

5,376,115

5,334,276

5,279,360

5,395,477

5,182,832

Average assets

5,739,228

5,709,825

5,663,697

5,638,205

5,605,728

5,688,076

5,511,006

Average deposits

4,938,560

5,063,061

5,041,164

5,000,108

4,936,743

5,010,698

4,849,153

Average interest-bearing liabilities

3,769,920

3,802,028

3,776,053

3,746,012

3,686,222

3,773,647

3,631,886

Average shareholders’ equity

489,510

484,737

480,985

492,184

511,277

486,841

513,416

Average tangible shareholders’ equity

489,510

484,391

479,959

490,453

508,886

486,071

510,029

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

TABLE 1 (CONTINUED)

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

(dollars in thousands)

2018

2018

2018

2018

2017

REGULATORY CAPITAL

Central Pacific Financial Corp.

Leverage capital

$

570,260

$

590,627

$

586,799

$

579,221

$

578,607

Tier 1 risk-based capital

570,260

590,627

586,799

579,221

578,607

Total risk-based capital

619,419

639,157

636,755

629,179

628,068

Common equity tier 1 capital

500,260

500,627

496,799

489,221

490,861

Central Pacific Bank

Leverage capital

533,166

571,949

569,128

568,409

565,412

Tier 1 risk-based capital

533,166

571,949

569,128

568,409

565,412

Total risk-based capital

582,325

620,479

619,084

618,240

614,732

Common equity tier 1 capital

533,166

571,949

569,128

568,409

565,412

REGULATORY CAPITAL RATIOS

Central Pacific Financial Corp.

Leverage capital ratio

9.9

%

10.3

%

10.3

%

10.3

%

10.4

%

Tier 1 risk-based capital ratio

13.5

14.2

14.4

14.5

14.7

Total risk-based capital ratio

14.7

15.4

15.7

15.8

15.9

Common equity tier 1 capital ratio

11.9

12.0

12.2

12.3

12.4

Central Pacific Bank

Leverage capital ratio

9.3

10.0

10.0

10.1

10.1

Tier 1 risk-based capital ratio

12.7

13.8

14.0

14.3

14.4

Total risk-based capital ratio

13.8

15.0

15.3

15.5

15.6

Common equity tier 1 capital ratio

12.7

13.8

14.0

14.3

14.4

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

(dollars in thousands, except for per share amounts)

2018

2018

2018

2018

2017

BALANCE SHEET

Loans and leases

$

4,078,366

$

3,978,027

$

3,881,581

$

3,816,146

$

3,770,615

Total assets

5,807,026

5,728,640

5,681,519

5,651,287

5,623,708

Total deposits

4,946,490

5,003,680

4,979,099

4,980,431

4,956,354

Long-term debt

122,166

92,785

92,785

92,785

92,785

Total shareholders’ equity

491,725

478,151

480,668

484,108

500,011

Total shareholders’ equity to total assets

8.47

%

8.35

%

8.46

%

8.57

%

8.89

%

Tangible common equity to tangible assets [5]

8.47

%

8.35

%

8.45

%

8.54

%

8.86

%

ASSET QUALITY

Allowance for loan and lease losses

$

47,916

$

46,826

$

48,181

$

49,217

$

50,001

Non-performing assets

2,737

3,026

3,509

3,438

3,626

Allowance to loans and leases outstanding

1.17

%

1.18

%

1.24

%

1.29

%

1.33

%

Allowance to non-performing assets

1,750.68

%

1,547.46

%

1,373.07

%

1,431.56

%

1,378.96

%

PER SHARE OF COMMON STOCK OUTSTANDING

Book value per common share

$

16.97

$

16.34

$

16.30

$

16.30

$

16.65

Tangible book value per common share

16.97

16.34

16.28

16.25

16.59

[1] Financial information for prior quarters has been revised to reflect the reclassification of amortization of investments in low-income housing tax credit (LIHTC) partnerships from total other operating expense to income tax expense, in connection with a change in accounting policy adopted in the fourth quarter of 2018 related to the Company’s investments in LIHTC partnerships.

[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.

[5] 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 in Table 2.

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

TABLE 2

The following table sets forth a reconciliation of our tangible common equity ratio for each of the dates indicated:

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands)

2018

2018

2018

2018

2017

Tangible Common Equity Ratio:

Total shareholders’ equity

$

491,725

$

478,151

$

480,668

$

484,108

$

500,011

  Less: Other intangible assets

(669)

(1,337)

(2,006)

Tangible common equity

$

491,725

$

478,151

$

479,999

$

482,771

$

498,005

Total assets

$

5,807,026

$

5,728,640

$

5,681,519

$

5,651,287

$

5,623,708

Less: Other intangible assets

(669)

(1,337)

(2,006)

Tangible assets

$

5,807,026

$

5,728,640

$

5,680,850

$

5,649,950

$

5,621,702

Tangible common equity to tangible assets

8.47

%

8.35

%

8.45

%

8.54

%

8.86

%

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

TABLE 3

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

(Dollars in thousands, except share data)

2018

2018

2018

2018

2017

ASSETS

Cash and due from financial institutions

$

80,569

$

82,668

$

75,547

$

59,905

$

75,318

Interest-bearing deposits in other financial institutions

21,617

7,051

13,948

5,875

6,975

Investment securities:

Available-for-sale debt securities, at fair value [1]

1,205,478

1,233,002

1,279,969

1,326,092

1,304,066

Held-to-maturity debt securities, at fair value of: $144,272 at December 31, 2018, $146,466 at September 30, 2018, $152,330 at June 30, 2018, $171,399 at March 31, 2018, and $189,201 at December 31, 2017

148,508

152,852

158,156

177,078

191,753

Equity securities, at fair value [1]

826

885

844

753

825

Total investment securities

1,354,812

1,386,739

1,438,969

1,503,923

1,496,644

Loans held for sale

6,647

4,460

9,096

7,492

16,336

Loans and leases

4,078,366

3,978,027

3,881,581

3,816,146

3,770,615

Less allowance for loan and lease losses

47,916

46,826

48,181

49,217

50,001

Loans and leases, net of allowance for loan and lease losses

4,030,450

3,931,201

3,833,400

3,766,929

3,720,614

Premises and equipment, net

45,285

46,184

47,004

47,436

48,348

Accrued interest receivable

17,000

16,755

16,606

16,070

16,581

Investment in unconsolidated subsidiaries

14,008

15,283

9,362

6,478

7,088

Other real estate owned

414

414

595

595

851

Mortgage servicing rights

15,596

15,634

15,756

15,821

15,843

Core deposit premium

669

1,337

2,006

Bank-owned life insurance

157,440

157,085

156,945

156,611

156,293

Federal Home Loan Bank stock

16,645

10,965

10,246

9,007

7,761

Other assets

46,543

54,201

53,376

53,808

53,050

Total assets

$

5,807,026

$

5,728,640

$

5,681,519

$

5,651,287

$

5,623,708

LIABILITIES AND EQUITY

Deposits:

Noninterest-bearing demand

$

1,436,967

$

1,403,534

$

1,365,010

$

1,349,029

$

1,395,556

Interest-bearing demand

954,011

935,130

952,991

946,464

933,054

Savings and money market

1,448,257

1,503,465

1,502,284

1,533,483

1,481,876

Time

1,107,255

1,161,551

1,158,814

1,151,455

1,145,868

Total deposits

4,946,490

5,003,680

4,979,099

4,980,431

4,956,354

Federal Home Loan Bank advances and other short-term borrowings

197,000

105,000

87,000

56,000

32,000

Long-term debt

122,166

92,785

92,785

92,785

92,785

Other liabilities

49,645

49,024

41,967

37,963

42,534

Total liabilities

5,315,301

5,250,489

5,200,851

5,167,179

5,123,673

Equity:

Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding none at:  December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018, and December 31, 2017

Common stock, no par value, authorized 185,000,000 shares; issued and outstanding:  28,967,715 at December 31, 2018, 29,270,398 at September 30, 2018, 29,489,954 at June 30, 2018, 29,707,122 at March 31, 2018, and 30,024,222 at December 31, 2017

470,660

478,721

485,402

493,794

503,988

Additional paid-in capital

88,876

87,939

86,949

86,497

86,098

Accumulated deficit

(51,718)

(61,406)

(70,435)

(78,454)

(89,036)

Accumulated other comprehensive income (loss)

(16,093)

(27,103)

(21,248)

(17,729)

(1,039)

Total shareholders’ equity

491,725

478,151

480,668

484,108

500,011

Non-controlling interest

24

Total equity

491,725

478,151

480,668

484,108

500,035

Total liabilities and equity

$

5,807,026

$

5,728,640

$

5,681,519

$

5,651,287

$

5,623,708

[1] Financial information for prior quarters has been revised to reflect the impact of the adoption of ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

TABLE 4

Three Months Ended

Year Ended

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Dec 31,

(Dollars in thousands, except per share data)

2018

2018

2018

2018

2017

2018

2017

Interest income:

Interest and fees on loans and leases

$

42,836

$

40,531

$

38,699

$

37,390

$

37,447

$

159,456

$

144,224

Interest and dividends on investment securities:

Taxable investment securities

8,451

8,490

8,717

8,843

8,777

34,501

33,933

Tax-exempt investment securities

910

920

933

933

955

3,696

3,874

Dividend income on investment securities

17

26

3

15

13

61

49

Interest on deposits in other financial institutions

55

109

117

84

58

365

356

Dividend income on Federal Home Loan Bank stock

70

60

40

45

26

215

126

Total interest income

52,339

50,136

48,509

47,310

47,276

198,294

182,562

Interest expense:

Interest on deposits:

Demand

180

181

193

180

170

734

641

Savings and money market

579

593

459

369

302

2,000

1,099

Time

4,567

4,744

4,034

3,425

2,967

16,770

9,457

Interest on short-term borrowings

999

146

48

43

97

1,236

183

Interest on long-term debt

1,335

1,147

1,103

971

916

4,556

3,479

Total interest expense

7,660

6,811

5,837

4,988

4,452

25,296

14,859

Net interest income

44,679

43,325

42,672

42,322

42,824

172,998

167,703

Provision (credit) for loan and lease losses (“Provision”)

(1,386)

(59)

532

(211)

(186)

(1,124)

(2,674)

Net interest income after Provision

46,065

43,384

42,140

42,533

43,010

174,122

170,377

Other operating income:

Mortgage banking income (refer to Table 5)

1,770

1,923

1,775

1,847

1,531

7,315

6,962

Service charges on deposit accounts

2,237

2,189

1,977

2,003

2,130

8,406

8,468

Other service charges and fees

3,426

3,286

3,377

3,034

2,532

13,123

11,518

Income from fiduciary activities

1,113

1,159

1,017

956

935

4,245

3,674

Equity in earnings of unconsolidated subsidiaries

82

71

37

43

214

233

602

Fees on foreign exchange

197

220

277

211

135

905

529

Net gains (losses) on sales of investment securities

(279)

230

(279)

(1,410)

Income from bank-owned life insurance

243

1,055

501

318

614

2,117

3,388

Loan placement fees

215

115

220

197

170

747

536

Net gains on sales of foreclosed assets

205

Other (refer to Table 5)

396

802

449

345

552

1,992

2,024

Total other operating income

9,400

10,820

9,630

8,954

9,043

38,804

36,496

Other operating expense:

Salaries and employee benefits

19,053

19,011

18,783

18,505

18,759

75,352

72,286

Net occupancy

3,649

3,488

3,360

3,266

3,418

13,763

13,571

Equipment

1,079

1,048

1,044

1,068

1,007

4,239

3,785

Amortization of core deposit premium

669

668

669

668

2,006

2,674

Communication expense

863

903

746

898

924

3,410

3,659

Legal and professional services

2,212

1,528

1,769

1,821

2,091

7,330

7,724

Computer software expense

2,597

2,672

2,305

2,267

2,404

9,841

9,192

Advertising expense

834

612

617

612

1,000

2,675

2,408

Foreclosed asset expense

37

212

31

294

28

574

151

Other (refer to Table 5) [1]

3,318

3,882

4,288

4,004

4,098

15,492

15,623

Total other operating expense [1]

33,642

34,025

33,611

33,404

34,397

134,682

131,073

Income before income taxes [1]

21,823

20,179

18,159

18,083

17,656

78,244

75,800

Income tax expense [1]

6,031

4,986

3,935

3,806

13,368

18,758

34,596

Net income

$

15,792

$

15,193

$

14,224

$

14,277

$

4,288

$

59,486

$

41,204

Per common share data:

Basic earnings per share

$

0.54

$

0.52

$

0.48

$

0.48

$

0.14

$

2.02

$

1.36

Diluted earnings per share

0.54

0.52

0.48

0.48

0.14

2.01

1.34

Cash dividends declared

0.21

0.21

0.21

0.19

0.18

0.82

0.70

Basic weighted average shares outstanding

29,033,261

29,297,465

29,510,175

29,807,572

30,027,366

29,409,683

30,400,511

Diluted weighted average shares outstanding

29,217,480

29,479,812

29,714,942

30,041,351

30,271,910

29,609,907

30,638,140

[1] Financial information for prior quarters has been revised to reflect the reclassification of amortization of investments in LIHTC partnerships from total other operating expense to income tax expense, in connection with a change in accounting policy adopted in the fourth quarter of 2018 related to the Company’s investments in LIHTC partnerships.

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Other Operating Income and Other Operating Expense – Detail

(Unaudited)

TABLE 5

The following table sets forth the components of mortgage banking income for the periods indicated:

Three Months Ended

Year Ended

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

December 31,

(Dollars in thousands)

2018

2018

2018

2018

2017

2018

2017

Mortgage banking income:

Loan servicing fees

$

1,290

$

1,269

$

1,289

$

1,311

$

1,316

$

5,159

$

5,337

Amortization of mortgage servicing rights

(446)

(519)

(437)

(457)

(745)

(1,859)

(2,288)

Net gains on sales of residential mortgage loans

1,072

1,082

959

972

968

4,085

4,069

Unrealized gains (losses) on loans-held-for-sale and interest rate locks

(146)

91

(36)

21

(8)

(70)

(156)

Total mortgage banking income

$

1,770

$

1,923

$

1,775

$

1,847

$

1,531

$

7,315

$

6,962

The following table sets forth the components of other operating income – other for the periods indicated:

Three Months Ended

Year Ended

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

December 31,

(Dollars in thousands)

2018

2018

2018

2018

2017

2018

2017

Other operating income – other:

Income recovered on nonaccrual loans previously charged-off

$

99

$

395

$

130

$

96

$

156

$

720

$

767

Other recoveries

25

101

49

46

26

221

149

Commissions on sale of checks

79

79

84

86

83

328

341

Other

193

227

186

117

287

723

767

Total other operating income – other

$

396

$

802

$

449

$

345

$

552

$

1,992

$

2,024

The following table sets forth the components of other operating expense – other for the periods indicated:

Three Months Ended

Year Ended

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

December 31,

(Dollars in thousands)

2018

2018

2018

2018

2017

2018

2017

Other operating expense – other:

Charitable contributions

$

138

$

166

$

131

$

200

$

165

$

635

$

593

FDIC insurance assessment

427

437

434

434

438

1,732

1,724

Miscellaneous loan expenses

339

403

324

299

288

1,365

1,144

ATM and debit card expenses

613

686

698

648

495

2,645

1,961

Armored car expenses

238

185

233

166

241

822

873

Entertainment and promotions

445

185

273

159

438

1,062

1,660

Stationery and supplies

271

206

236

201

202

914

814

Directors’ fees and expenses

263

263

283

231

209

1,040

874

Provision (credit) for residential mortgage loan repurchase losses

(181)

331

209

150

209

Increase (decrease) to the reserve for unfunded commitments

(461)

(71)

66

41

(101)

(425)

94

Other

1,226

1,091

1,610

1,625

1,514

5,552

5,677

Total other operating expense – other [1]

$

3,318

$

3,882

$

4,288

$

4,004

$

4,098

$

15,492

$

15,623

[1] Financial information for prior quarters has been revised to reflect the reclassification of amortization of investments in LIHTC partnerships from total other operating expense to income tax expense, in connection with a change in accounting policy adopted in the fourth quarter of 2018 related to the Company’s investments in LIHTC partnerships.

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

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

(Unaudited)

TABLE 6

Three Months Ended

Three Months Ended

Three Months Ended

December 31, 2018

September 30, 2018

December 31, 2017

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

$

9,393

2.29

%

$

55

$

22,057

1.97

%

$

109

$

17,944

1.27

%

$

58

Investment securities, excluding valuation allowance:

Taxable

1,243,226

2.72

8,468

1,284,411

2.65

8,516

1,367,530

2.57

8,790

Tax-exempt [1]

161,935

2.84

1,152

163,172

2.86

1,165

166,665

3.53

1,469

Total investment securities

1,405,161

2.74

9,620

1,447,583

2.67

9,681

1,534,195

2.67

10,259

Loans and leases, including loans held for sale

4,022,376

4.24

42,836

3,941,511

4.09

40,531

3,719,684

4.01

37,447

Federal Home Loan Bank stock

14,122

1.98

70

7,773

3.11

60

7,537

1.38

26

Total interest-earning assets

5,451,052

3.84

52,581

5,418,924

3.70

50,381

5,279,360

3.61

47,790

Noninterest-earning assets

288,176

290,901

326,368

Total assets

$

5,739,228

$

5,709,825

$

5,605,728

LIABILITIES AND EQUITY

Interest-bearing liabilities:

Interest-bearing demand deposits

$

923,810

0.08

%

$

180

$

933,405

0.08

%

$

181

$

916,957

0.07

%

$

170

Savings and money market deposits

1,459,326

0.16

579

1,524,121

0.15

593

1,492,707

0.08

302

Time deposits under $100,000

176,669

0.60

265

177,108

0.53

236

183,234

0.43

198

Time deposits $100,000 and over

940,348

1.81

4,302

1,049,446

1.70

4,508

974,163

1.13

2,769

Total interest-bearing deposits

3,500,153

0.60

5,326

3,684,080

0.59

5,518

3,567,061

0.38

3,439

Federal Home Loan Bank advances and other short-term borrowings

157,299

2.52

999

25,163

2.30

146

26,376

1.45

97

Long-term debt

112,468

4.71

1,335

92,785

4.90

1,147

92,785

3.92

916

Total interest-bearing liabilities

3,769,920

0.81

7,660

3,802,028

0.71

6,811

3,686,222

0.48

4,452

Noninterest-bearing deposits

1,438,407

1,378,981

1,369,682

Other liabilities

41,391

44,079

38,523

Total liabilities

5,249,718

5,225,088

5,094,427

Shareholders’ equity

489,510

484,737

511,277

Non-controlling interest

24

Total equity

489,510

484,737

511,301

Total liabilities and equity

$

5,739,228

$

5,709,825

$

5,605,728

Net interest income

$

44,921

$

43,570

$

43,338

Interest rate spread

3.03

%

2.99

%

3.13

%

Net interest margin

3.28

%

3.20

%

3.27

%

[1] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21% effective January 1, 2018 and 35% for all prior periods.

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

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

(Unaudited)

TABLE 7

Year Ended

Year Ended

December 31, 2018

December 31, 2017

Average

Average

Average

Average

(Dollars in thousands)

Balance

Yield/Rate

Interest

Balance

Yield/Rate

Interest

ASSETS

Interest-earning assets:

Interest-bearing deposits in other financial institutions

$

20,104

1.81

%

$

365

$

33,012

1.08

%

$

356

Investment securities, excluding valuation allowance:

Taxable

1,304,523

2.65

34,562

1,351,436

2.51

33,982

Tax-exempt [1]

163,610

2.86

4,678

169,318

3.52

5,960

Total investment securities

1,468,133

2.67

39,240

1,520,754

2.63

39,942

Loans and leases, including loans held for sale

3,898,250

4.09

159,456

3,622,033

3.98

144,224

Federal Home Loan Bank stock

8,990

2.40

215

7,033

1.79

126

Total interest-earning assets

5,395,477

3.69

199,276

5,182,832

3.56

184,648

Noninterest-earning assets

292,599

328,174

Total assets

$

5,688,076

$

5,511,006

LIABILITIES AND EQUITY

Interest-bearing liabilities:

Interest-bearing demand deposits

$

936,034

0.08

%

$

734

$

901,171

0.07

%

$

641

Savings and money market deposits

1,494,658

0.13

2,000

1,449,379

0.08

1,099

Time deposits under $100,000

177,936

0.51

910

188,951

0.40

758

Time deposits $100,000 and over

1,016,643

1.56

15,860

984,069

0.88

8,699

Total interest-bearing deposits

3,625,271

0.54

19,504

3,523,570

0.32

11,197

Federal Home Loan Bank advances and other short-term borrowings

50,630

2.44

1,236

15,531

1.18

183

Long-term debt

97,746

4.66

4,556

92,785

3.75

3,479

Total interest-bearing liabilities

3,773,647

0.67

25,296

3,631,886

0.41

14,859

Noninterest-bearing deposits

1,385,427

1,325,583

Other liabilities

42,157

40,097

Total liabilities

5,201,231

4,997,566

Shareholders’ equity

486,841

513,416

Non-controlling interest

4

24

Total equity

486,845

513,440

Total liabilities and equity

$

5,688,076

$

5,511,006

Net interest income

$

173,980

$

169,789

Interest rate spread

3.02

%

3.15

%

Net interest margin

3.22

%

3.28

%

[1] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21% effective January 1, 2018 and 35% for all prior periods.

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Loans and Leases by Geographic Distribution

(Unaudited)

TABLE 8

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands)

2018

2018

2018

2018

2017

HAWAII:

Commercial, financial and agricultural

$

439,112

$

427,047

$

411,687

$

413,181

$

400,529

Real estate:

Construction

64,654

66,286

64,457

59,136

61,643

Residential mortgage

1,428,205

1,392,669

1,377,219

1,351,488

1,341,221

Home equity

468,966

455,599

430,870

425,509

412,230

Commercial mortgage

861,086

845,864

829,647

816,160

807,009

Consumer

357,908

345,785

332,040

325,452

322,713

Leases

124

170

223

285

362

Total loans and leases

3,620,055

3,533,420

3,446,143

3,391,211

3,345,707

Allowance for loan and lease losses

(42,993)

(41,991)

(43,212)

(43,939)

(44,779)

Net loans and leases

$

3,577,062

$

3,491,429

$

3,402,931

$

3,347,272

$

3,300,928

U.S. MAINLAND:

Commercial, financial and agricultural

$

142,548

$

138,317

$

111,608

$

103,299

$

103,490

Real estate:

Construction

2,273

2,355

2,437

2,517

2,597

Residential mortgage

Home equity

Commercial mortgage

179,192

187,586

188,543

189,668

170,788

Consumer

134,298

116,349

132,850

129,451

148,033

Leases

Total loans and leases

458,311

444,607

435,438

424,935

424,908

Allowance for loan and lease losses

(4,923)

(4,835)

(4,969)

(5,278)

(5,222)

Net loans and leases

$

453,388

$

439,772

$

430,469

$

419,657

$

419,686

TOTAL:

Commercial, financial and agricultural

$

581,660

$

565,364

$

523,295

$

516,480

$

504,019

Real estate:

Construction

66,927

68,641

66,894

61,653

64,240

Residential mortgage

1,428,205

1,392,669

1,377,219

1,351,488

1,341,221

Home equity

468,966

455,599

430,870

425,509

412,230

Commercial mortgage

1,040,278

1,033,450

1,018,190

1,005,828

977,797

Consumer

492,206

462,134

464,890

454,903

470,746

Leases

124

170

223

285

362

Total loans and leases

4,078,366

3,978,027

3,881,581

3,816,146

3,770,615

Allowance for loan and lease losses

(47,916)

(46,826)

(48,181)

(49,217)

(50,001)

Net loans and leases

$

4,030,450

$

3,931,201

$

3,833,400

$

3,766,929

$

3,720,614

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Deposits

(Unaudited)

TABLE 9

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands)

2018

2018

2018

2018

2017

Noninterest-bearing demand

$

1,436,967

$

1,403,534

$

1,365,010

$

1,349,029

$

1,395,556

Interest-bearing demand

954,011

935,130

952,991

946,464

933,054

Savings and money market

1,448,257

1,503,465

1,502,284

1,533,483

1,481,876

Time deposits less than $100,000

176,707

174,920

175,695

177,999

180,748

Core deposits

4,015,942

4,017,049

3,995,980

4,006,975

3,991,234

Government time deposits

631,293

696,349

727,087

703,467

687,052

Other time deposits $100,000 to $250,000

106,783

104,339

100,971

97,800

101,560

Other time deposits greater than $250,000

192,472

185,943

155,061

172,189

176,508

Total time deposits $100,000 and over

930,548

986,631

983,119

973,456

965,120

Total deposits

$

4,946,490

$

5,003,680

$

4,979,099

$

4,980,431

$

4,956,354

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Nonperforming Assets, Past Due and Restructured Loans

(Unaudited)

TABLE 10

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

(Dollars in thousands)

2018

2018

2018

2018

2017

Nonaccrual loans (including loans held for sale):

Real estate:

Residential mortgage

$

2,048

$

2,197

$

2,400

$

2,184

$

2,280

Home equity

275

415

514

659

416

Commercial mortgage

79

Total nonaccrual loans

2,323

2,612

2,914

2,843

2,775

Other real estate owned (“OREO”):

Real estate:

Residential mortgage

414

414

595

595

851

Total OREO

414

414

595

595

851

Total nonperforming assets (“NPAs”)

2,737

3,026

3,509

3,438

3,626

Loans delinquent for 90 days or more still accruing interest:

Real estate:

Residential mortgage

279

49

Home equity

298

Consumer

238

333

362

417

515

Total loans delinquent for 90 days or more still accruing interest

536

333

641

417

564

Restructured loans still accruing interest:

Commercial, financial and agricultural

220

388

423

457

491

Real estate:

Residential mortgage

7,330

9,747

9,621

10,555

10,677

Commercial mortgage

1,036

1,145

1,253

1,360

1,466

Total restructured loans still accruing interest

8,586

11,280

11,297

12,372

12,634

Total NPAs and loans delinquent for 90 days or more and restructured loans still accruing interest

$

11,859

$

14,639

$

15,447

$

16,227

$

16,824

Total nonaccrual loans as a percentage of loans and leases

0.06

%

0.07

%

0.08

%

0.07

%

0.07

%

Total NPAs as a percentage of loans and leases and OREO

0.07

%

0.08

%

0.09

%

0.09

%

0.10

%

Total NPAs and loans delinquent for 90 days or more still accruing interest as a percentage of loans and leases and OREO

0.08

%

0.08

%

0.11

%

0.10

%

0.11

%

Total NPAs and loans delinquent for 90 days or more and restructured loans still accruing interest as a percentage of loans and leases and OREO

0.29

%

0.37

%

0.40

%

0.43

%

0.45

%

Quarter-to-quarter changes in NPAs:

Balance at beginning of quarter

$

3,026

$

3,509

$

3,438

$

3,626

$

5,970

Additions

330

263

107

Reductions:

Payments

(154)

(121)

(37)

(155)

(2,060)

Return to accrual status

(135)

(181)

(222)

(391)

Sales of NPAs

(40)

Charge-offs/valuation adjustments

(181)

(256)

Total reductions

(289)

(483)

(259)

(451)

(2,451)

Balance at end of quarter

$

2,737

$

3,026

$

3,509

$

3,438

$

3,626

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Allowance for Loan and Lease Losses

(Unaudited)

TABLE 11

Three Months Ended

Year Ended

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

December 31,

(Dollars in thousands)

2018

2018

2018

2018

2017

2018

2017

Allowance for loan and lease losses:

Balance at beginning of period

$

46,826

$

48,181

$

49,217

$

50,001

$

51,217

$

50,001

$

56,631

Provision (credit) for loan and lease losses

(1,386)

(59)

532

(211)

(186)

(1,124)

(2,674)

Charge-offs:

Commercial, financial and agricultural

881

731

742

498

438

2,852

1,704

Real estate:

Residential mortgage

73

73

Consumer

1,899

1,762

1,729

1,933

1,618

7,323

6,294

Total charge-offs

2,780

2,493

2,471

2,431

2,129

10,175

8,071

Recoveries:

Commercial, financial and agricultural

186

578

295

144

690

1,203

1,366

Real estate:

Construction

4,554

6

6

1,193

52

5,759

169

Residential mortgage

106

51

21

26

22

204

879

Home equity

9

6

9

3

9

27

44

Commercial mortgage

8

29

15

11

52

157

Consumer

401

548

543

477

315

1,969

1,500

Total recoveries

5,256

1,197

903

1,858

1,099

9,214

4,115

Net charge-offs (recoveries)

(2,476)

1,296

1,568

573

1,030

961

3,956

Balance at end of period

$

47,916

$

46,826

$

48,181

$

49,217

$

50,001

$

47,916

$

50,001

Average loans and leases, net of deferred costs

$

4,022,376

$

3,941,511

$

3,836,739

$

3,789,338

$

3,719,684

$

3,898,250

$

3,622,033

Annualized ratio of net charge-offs to average loans and leases

(0.25)

%

0.13

%

0.16

%

0.06

%

0.11

%

0.02

%

0.11

%

Ratio of allowance for loan and lease losses to loans and leases

1.17

%

1.18

%

1.24

%

1.29

%

1.33

%

1.17

%

1.33

%

 

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SOURCE Central Pacific Financial Corp.