2014

Central Pacific Financial Corp. Reports $14.3 Million Second Quarter Earnings REINSTATES QUARTERLY CASH DIVIDEND

HONOLULU, July 25, 2013 /PRNewswire/ -- Central Pacific Financial Corp. (NYSE: CPF), parent company of Central Pacific Bank (the "Bank"), today reported net income for the second quarter of 2013 of $14.3 million, or $0.34 per diluted share, compared to net income in the second quarter of 2012 of $10.8 million, or $0.26 per diluted share, and net income in the first quarter of 2013 of $137.3 million, or $3.25 per diluted share.  Net income in the first quarter of 2013 included a non-cash income tax benefit of $119.8 million related to the reversal of a significant portion of a valuation allowance previously established against the Company's net deferred tax assets. Excluding this income tax benefit, net income for the first quarter of 2013 was $17.5 million, or $0.41 per diluted share.

"We are pleased to report another strong quarter of profitability," said John C. Dean, President and Chief Executive Officer.  "While our improved credit risk profile continues to positively impact our financial results, we were especially encouraged by the continuing improvement in our core earnings and our ability to meaningfully grow both loans and deposits during the past few quarters."

In addition, the Company's Board of Directors declared a quarterly cash dividend of $0.08 per share on the Company's outstanding common shares. The dividend will be payable on September 16, 2013 to shareholders of record at the close of business on August 30, 2013.

"As a result of our strong capital position and earnings consistency, we elected to reinstate dividend payments at this time, subject to ongoing Board review," said Dean.  "We greatly appreciate the support and confidence of our shareholders over the past several years."

Significant Highlights and Second Quarter Results

  • Reported tenth consecutive profitable quarter since the Company's recapitalization with net income of $14.3 million, compared to net income in the first quarter of 2013 of $17.5 million, excluding the $119.8 million non-cash income tax benefit described above.
  • Declared quarterly cash dividend of $0.08 per share on the Company's outstanding common shares payable on September 16, 2013.
  • For the ninth consecutive quarter, the Company did not incur credit costs. We recorded a credit to the provision for loan and lease losses of $0.2 million, compared to a credit of $6.6 million for the first quarter of 2013.
  • Reduced nonperforming assets by $14.4 million to $60.9 million at June 30, 2013 from $75.3 million at March 31, 2013.
  • The ALLL, as a percentage of total loans and leases, decreased to 3.67% at June 30, 2013, compared to 3.82% at March 31, 2013.  In addition, the Company's ALLL, as a percentage of nonperforming assets, increased to 143.05% at June 30, 2013 from 115.27% at March 31, 2013 and the Company's ALLL, as a percentage of nonaccrual loans, increased to 162.95% at June 30, 2013 from 133.06% at March 31, 2013.
  • Increased the loans and leases portfolio by $98.5 million to $2.37 billion at June 30, 2013, compared to $2.27 billion at March 31, 2013.
  • Increased total deposits by $91.0 million to $3.86 billion at June 30, 2013, compared to $3.76 billion at March 31, 2013.
  • Maintained a strong capital position with Tier 1 risk-based capital, total risk-based capital, and leverage capital ratios of 21.55%, 22.83%, and 14.24%, respectively, as of June 30, 2013, compared to 22.16%, 23.43%, and 14.36%, respectively, as of March 31, 2013.  The Company's capital ratios continue to be well in excess of the minimum levels required for a "well-capitalized" regulatory designation.

Earnings Highlights
Net interest income for the second quarter of 2013 was $33.2 million, compared to $30.3 million in the year-ago quarter and $30.7 million in the first quarter of 2013.  Net interest margin was 3.23%, compared to 3.17% in the year-ago quarter and 3.06% in the first quarter of 2013. The sequential quarter increase in net interest income and the net interest margin was primarily due to the recovery of interest on loans previously placed on nonaccrual status totaling $1.7 million and an overall increase in the Company's interest earning assets, including net increases of $98.5 million and $69.4 million in its loan and investment securities portfolios, respectively.

The provision for loan and lease losses for the second quarter of 2013 was a credit of $0.2 million, compared to a credit of $6.6 million in the year-ago quarter and a credit of $6.6 million in the first quarter of 2013.  The credit to the provision for loan and lease losses was the result of continued improvement in the Company's credit risk profile, as evidenced by the previously mentioned decrease in nonperforming assets and further reductions in the historical quarterly charge-off data used to calculate the ALLL.

Other operating income for the second quarter of 2013 totaled $17.8 million, compared to $13.6 million in the year-ago quarter and $13.0 million in the first quarter of 2013. The increase from the year-ago quarter was primarily due to higher net gains on sales of foreclosed assets of $7.7 million and higher other service charges and fees totaling $0.5 million, partially offset by lower unrealized gains on interest rate locks of $1.5 million, lower rental income from foreclosed properties of $0.8 million, lower service charges on deposit accounts of $0.7 million, lower income from bank-owned life insurance of $0.6 million, and lower net gains on sales of residential mortgage loans of $0.5 million. The sequential quarter increase was primarily due to higher net gains on sales of foreclosed assets of $7.1 million and higher other service charge and fees of $0.3 million, partially offset by lower unrealized gains on interest rate locks of $1.3 million, lower gains on sales of residential mortgage loans of $1.2 million, and lower income from bank-owned life insurance of $0.2 million.

Other operating expense for the second quarter of 2013 totaled $35.0 million, compared to $39.7 million in the year-ago quarter and $32.8 million in the first quarter of 2013.  The decrease from the year-ago quarter was primarily due to lower legal and professional fees of $1.9 million, an accrual totaling $1.8 million related to the settlement of a legal proceeding against the Company recorded in the second quarter of 2012, lower net credit-related charges (which includes changes in the reserve for unfunded commitments, write-downs of loans held for sale and foreclosed asset expense) of $1.6 million, lower amortization of other intangible assets of $0.9 million, and lower FDIC insurance expense of $0.7 million, partially offset by a higher provision for repurchased residential mortgage loans of $1.7 million, higher salaries and employee benefits of $0.6 million, and higher net occupancy expense of $0.4 million. The sequential quarter increase was primarily attributable to a higher provision for repurchased residential mortgage loans of $1.6 million and higher net credit-related charges of $1.1 million.

The efficiency ratio for the second quarter of 2013 was 76.68% (excluding net gains on sales of foreclosed assets of $7.7 million, foreclosed asset expense of $0.7 million, and amortization expense related to certain intangible assets totaling $0.7 million), compared to 80.41% in the year-ago quarter (excluding foreclosed asset expense of $2.6 million and amortization expense related to certain intangible assets totaling $1.6 million) and 72.74% (excluding foreclosed asset expense of $0.3 million, amortization expense related to certain intangible assets totaling $0.7 million, and net gains on sales of foreclosed assets of $0.6 million) in the first quarter of 2013.

In the second quarter of 2013, the Company recorded income tax expense of $1.9 million, which was attributable to the income tax liability generated from the sale of a foreclosed property at a gain of $7.2 million. In the first quarter of 2013, the Company recorded a non-cash income tax benefit of $119.8 million related to the reversal of a significant portion of a valuation allowance previously established against its net deferred tax assets during the third quarter of 2009. As of June 30, 2013, the Company's net deferred tax assets totaled $144.1 million.

Balance Sheet Highlights
Total assets at June 30, 2013 of $4.7 billion increased by $479.7 million and $125.7 million from June 30, 2012 and March 31, 2013, respectively.

Total loans and leases at June 30, 2013 of $2.4 billion increased by $271.9 million and $98.5 million from June 30, 2012 and March 31, 2013, respectively.  The increase in total loans and leases from the first quarter of 2013 was due to an increase in the residential mortgage, consumer, and commercial mortgage loan portfolios of $60.4 million, $48.0 million, and $0.5 million, respectively, offset by a decrease in the construction and development, leases, and commercial loan portfolios of $8.5 million, $1.5 million, and $0.5 million, respectively.

Total deposits at June 30, 2013 were $3.9 billion, compared to $3.6 billion and $3.8 billion at June 30, 2012 and March 31, 2013, respectively.  Core deposits, which include demand deposits, savings and money market deposits, and time deposits less than $100,000, totaled $3.04 billion at June 30, 2013.  This represents an increase of $162.8 million from a year ago and an increase of $30.7 million from March 31, 2013.  Changes in total deposits during the quarter included an increase in time deposits, interest-bearing demand deposits, savings and money market deposits, and non-interest bearing demand deposits of $47.8 million, $28.2 million, $11.7 million, and $3.3 million, respectively.

Total shareholders' equity was $642.0 million at June 30, 2013, compared to $480.5 million and $650.1 million at June 30, 2012 and March 31, 2013, respectively.

Asset Quality
Nonperforming assets at June 30, 2013 totaled $60.9 million, or 1.29% of total assets, compared to $75.3 million, or 1.64% of total assets at March 31, 2013.  The sequential-quarter change reflects net decreases in Mainland commercial mortgage assets of $6.4 million, Mainland construction and development assets of $3.5 million, Hawaii residential mortgage assets of $2.4 million, Hawaii construction and development assets of $1.3 million, and Hawaii commercial assets of $0.8 million.

Loans delinquent for 90 days or more still accruing interest totaled $17,000 at June 30, 2013.  We did not have any loans delinquent for 90 days or more still accruing interest at March 31, 2013.  In addition, loans delinquent for 30 days or more still accruing interest totaled $1.5 million at June 30, 2013, compared to $8.8 million at March 31, 2013.

Net recoveries in the second quarter of 2013 totaled $0.5 million, compared to net charge-offs of $3.9 million and $3.0 million in the second quarter of 2012 and first quarter of 2013, respectively.

The ALLL, as a percentage of total loans and leases, was 3.67% at June 30, 2013, compared to 3.82% at March 31, 2013.  The ALLL, as a percentage of nonperforming assets, was 143.05% at June 30, 2013, compared to 115.27% at March 31, 2013.  The ALLL, as a percentage of nonaccrual loans, was 162.95% at June 30, 2013, compared to 133.06% at March 31, 2013.

Capital Levels
At June 30, 2013, the Company's Tier 1 risk-based capital, total risk-based capital, and leverage capital ratios were 21.55%, 22.83%, and 14.24%, respectively, compared to 22.16%, 23.43%, and 14.36%, respectively, at March 31, 2013.  The Company's capital ratios continue to exceed the levels required to be considered a "well-capitalized" institution for regulatory purposes.

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://investor.centralpacificbank.com.  Alternatively, investors may participate in the live call by dialing 1-888-317-6016.  A playback of the call will be available through August 27, 2013 by dialing 1-877-344-7529 (passcode: 10030912) and on the Company's website.

About Central Pacific Financial Corp.
Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $4.7 billion in assets.  Central Pacific Bank, its primary subsidiary, operates 35 branches and 117 ATMs in the state of Hawaii, as of June 30, 2013.  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; our ability to continue making progress on our recovery plan; 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 further 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;  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 the resolution of legal proceedings or regulatory or other governmental inquiries 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; 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 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 - June 30, 2013

(Unaudited)
















Three Months Ended



Six Months Ended






June 30,



June 30,




(in thousands, except per share data)

2013


2012



2013


2012

















INCOME STATEMENT












Net income

$      14,267


$      10,812



$   151,576


$     24,290




Per common share data:













Basic earnings per share 

0.34


0.26



3.62


0.58





Diluted earnings per share

0.34


0.26



3.59


0.58

















PERFORMANCE RATIOS












Return on average assets (1)

1.24

%

1.04

%


6.72

%

1.18

%



Return on average shareholders' equity (1)

8.70


9.12



51.46


10.37




Net income to average tangible shareholders' equity (1) 

8.90


9.48



52.79


10.80




Efficiency ratio (2)

76.68


80.41



74.72


77.71




Net interest margin (1)

3.23


3.17



3.15


3.20
























June 30,




REGULATORY CAPITAL RATIOS






2013


2012




Central Pacific Financial Corp.













Tier 1 risk-based capital 






21.55

%

23.04

%




Total risk-based capital






22.83


24.32





Leverage capital






14.24


14.12

















Central Pacific Bank 













Tier 1 risk-based capital 






20.35

%

21.89

%




Total risk-based capital






21.63


23.18





Leverage capital






13.40


13.43






















June 30,


%









2013


2012


Change


BALANCE SHEET












Total assets






$ 4,706,756


$ 4,227,070


11.3

%

Loans and leases






2,373,077


2,101,163


12.9


Net loans and leases






2,285,972


1,997,349


14.5


Deposits






3,855,666


3,562,317


8.2


Total shareholders' equity






642,035


480,513


33.6


Book value per common share






15.25


11.48


32.9


Tangible book value per common share






14.92


11.08


34.7


Market value per common share






18.00


14.12


27.5


Tangible common equity ratio (3)






13.38

%

11.02

%

21.4


 

CENTRAL PACIFIC FINANCIAL CORP.  AND SUBSIDIARIES

Financial Highlights - June 30, 2013

(Unaudited)

















Three Months Ended




Six Months Ended






June 30,


%


June 30,


%


(in thousands, except per share data)

2013


2012


Change


2013


2012


Change
















SELECTED AVERAGE BALANCES













Total assets

$  4,594,615


$  4,163,033


10.4

%

$  4,510,797


$  4,132,725


9.1

%

Interest-earning assets

4,176,895


3,858,276


8.3


4,141,306


3,829,764


8.1


Loans and leases, including loans held for sale

2,324,107


2,121,045


9.6


2,291,709


2,108,477


8.7


Other real estate

8,654


51,378


(83.2)


9,489


54,829


(82.7)


Deposits

3,752,684


3,500,162


7.2


3,715,568


3,469,797


7.1


Interest-bearing liabilities

3,013,978


2,855,941


5.5


2,989,677


2,841,025


5.2


Total shareholders' equity

655,932


474,041


38.4


589,049


468,297


25.8


















































June 30,


%










2013


2012


Change
















NONPERFORMING ASSETS













Nonaccrual loans (including loans held for sale)







$      53,455


$    120,949


(55.8)

%

Other real estate







7,437


49,379


(84.9)



Total nonperforming assets







60,892


170,328


(64.3)


Loans delinquent for 90 days or more (still accruing interest)







17


505


(96.6)


Restructured loans (still accruing interest)







27,263


9,193


85.9



Total nonperforming assets, loans delinquent for 90 days or more (still accruing interest)











 and restructured loans (still accruing interest)







$      88,172


$    180,026


(56.7)














































Three Months Ended


%


Six Months Ended


%




June 30,


Change


June 30,


Change




2013


2012




2013


2012


















Loan charge-offs

$        2,496


$        5,925


(57.9)

%

$        7,221


$        9,887


(27.0)

%

Recoveries

3,022


2,047


47.6


4,701


3,228


45.6



Net loan charge-offs

$         (526)


$        3,878


(113.6)


$        2,520


$        6,659


(62.2)


Net loan charge-offs to average loans (1)

(0.09)

%

0.73

%



0.22

%

0.63

%

















 

CENTRAL PACIFIC FINANCIAL CORP.  AND SUBSIDIARIES

Financial Highlights - June 30, 2013

(Unaudited)
















June 30,









2013


2012



ASSET QUALITY RATIOS










Nonaccrual loans (including loans held for sale) to total loans and leases and loans held for sale


2.24

%

5.67

%


Nonperforming assets to total assets





1.29


4.03



Nonperforming assets, loans delinquent for 90 days or more (still accruing interest) and restructured loans






    (still accruing interest) to total loans and leases, loans held for sale & other real estate


3.68


8.25



Allowance for loan and lease losses to total loans and leases





3.67


4.94



Allowance for loan and lease losses to nonaccrual loans (including loans held for sale)



162.95


85.83

























(1)

Annualized





















(2)

The efficiency ratio is a non-GAAP financial measure which should be read and used in conjunction with the Company's GAAP financial information. Comparison of our efficiency ratio with those of other companies may not be possible because other companies may calculate the efficiency ratio differently. Our efficiency ratio is derived by dividing other operating expense (excluding amortization, impairment and write-down of intangible assets, goodwill, loans held for sale and foreclosed assets, loss on early extinguishment of debt, loss on investment transaction and loss on sale of commercial real estate loans) by net operating revenue (net interest income on a taxable equivalent basis plus other operating income before securities transactions and gains on sale of foreclosed assets).  See Reconciliation of Non-GAAP Financial Measures.

(3)

The tangible common equity ratio is a non-GAAP financial measure which should be read and used in conjunction with the Company's  GAAP financial information. Comparison of our tangible common equity ratio with those of other companies may not be possible because other companies may calculate the tangible common equity ratio differently. Our tangible common equity ratio is derived by dividing common shareholders' equity, less intangible assets (excluding mortgage servicing rights (MSRs)) by total assets, less intangible assets (excluding MSRs).

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)
















Quarter Ended


Quarter Ended


Quarter Ended


(Dollars in thousands, except per share data)

June 30, 2013


March 31, 2013


June 30, 2012









Adjusted Diluted Earnings Per Share







Diluted earnings per share

$        0.34


$         3.25


$        0.26


Release of valuation allowance on net deferred tax assets

-


(2.84)


-


Adjusted diluted earnings per share

$        0.34


$         0.41


$        0.26









Efficiency Ratio







Total operating expenses as a percentage of net operating revenue

79.81

%

74.96

%

89.98

%

Amortization of other intangible assets

(1.52)


(1.53)


(3.67)


Foreclosed asset expense

(1.61)


(0.69)


(5.90)


Write down of assets

-


-


-


Loss on early extinguishment of debt

-


-


-


Efficiency ratio

76.68

%

72.74

%

80.41

%








Tangible Common Equity Ratio

June 30, 2013


June 30, 2012




Total shareholders' equity

$   642,035


$    480,513




Less: Other intangible assets

(14,041)


(16,715)




Tangible common equity

627,994


463,798











Total assets

4,706,756


4,227,070




Less: Other intangible assets

(14,041)


(16,715)




Tangible assets

4,692,715


4,210,355




Tangible common equity / Tangible assets

13.38

%

11.02

%



 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)




















 June 30, 


 March 31, 


 June 30, 

(In thousands, except share data)







2013


2013


2012













ASSETS












Cash and due from banks






$

57,477

$

46,877

$

72,967

Interest-bearing deposits in other banks







79,697


167,632


100,544

Investment securities:












  Available for sale







1,510,861


1,537,065


1,632,524

  Held to maturity (fair value of $245,450 at June 30, 2013,











       $159,483 at March 31, 2013 and $495 at June 30, 2012)





254,981


159,363


487

      Total investment securities







1,765,842


1,696,428


1,633,011













Loans held for sale







14,674


17,293


30,831

Loans and leases







2,373,077


2,274,598


2,101,163

  Less allowance for loan and lease losses







87,105


86,806


103,814

      Net loans and leases







2,285,972


2,187,792


1,997,349













Premises and equipment, net







48,807


48,578


50,195

Accrued interest receivable







14,138


14,148


12,596

Investment in unconsolidated subsidiaries







18,844


10,078


11,538

Other real estate







7,437


10,068


49,379

Mortgage servicing rights







20,690


21,466


22,985

Other intangible assets







14,041


14,709


16,715

Bank-owned life insurance







148,292


147,975


145,940

Federal Home Loan Bank stock







47,059


47,494


48,797

Other assets







183,786


150,539


34,223

      Total assets






$

4,706,756

$

4,581,077

$

4,227,070













LIABILITIES AND EQUITY












Deposits:












  Noninterest-bearing demand






$

860,694

$

857,427

$

769,010

  Interest-bearing demand







720,741


692,537


626,613

  Savings and money market







1,180,657


1,168,989


1,161,066

  Time







1,093,574


1,045,738


1,005,628

      Total deposits







3,855,666


3,764,691


3,562,317













Short-term borrowings







-


-


-

Long-term debt







108,272


108,276


108,289

Other liabilities







90,837


48,058


65,982

      Total liabilities







4,054,775


3,921,025


3,736,588













Equity:












  Preferred stock, no par value, authorized 1,100,000 shares;











        issued and outstanding none at June 30, 2013, March 31, 2013,







        and June 30, 2012







-


-


-

  Common stock, no par value, authorized 185,000,000 shares;










        issued and outstanding 42,088,976 shares at June 30, 2013, 41,938,294






        shares at March 31, 2013 and 41,867,892 shares at June 30, 2012


784,473


784,519


784,512

  Surplus







72,173


71,735


67,933

  Accumulated deficit







(197,851)


(212,118)


(372,558)

  Accumulated other comprehensive income (loss)






(16,760)


5,965


626

      Total shareholders' equity







642,035


650,101


480,513

Non-controlling interest







9,946


9,951


9,969

      Total equity







651,981


660,052


490,482













      Total liabilities and equity






$

4,706,756

$

4,581,077

$

4,227,070

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)
















Three Months Ended


Six months ended




June 30,


March 31,


June 30,


June 30,

(In thousands, except per share data)


2013


2013


2012


2013


2012













Interest income:











  Interest and fees on loans and leases

$

26,505

$

24,443

$

24,393

$

50,948

$

49,401

  Interest and dividends on investment











     securities:











        Taxable interest


7,373


7,031


7,589


14,404


15,203

        Tax-exempt interest


1,040


1,027


446


2,067


643

        Dividends


6


5


4


11


7

  Interest on deposits in other banks


68


89


47


157


128













      Total interest income


34,992


32,595


32,479


67,587


65,382













Interest expense:











  Interest on deposits:











    Demand



87


81


89


168


175

    Savings and money market


219


217


252


436


551

    Time



720


759


962


1,479


2,035

  Interest on long-term debt


793


869


917


1,662


1,860













      Total interest expense


1,819


1,926


2,220


3,745


4,621













      Net interest income


33,173


30,669


30,259


63,842


60,761

Provision (credit) for loan and lease losses


(227)


(6,561)


(6,630)


(6,788)


(11,620)













      Net interest income after provision











           for loan and lease losses


33,400


37,230


36,889


70,630


72,381













Other operating income:











  Service charges on deposit accounts


1,583


1,591


2,273


3,174


4,589

  Other service charges and fees


4,643


4,330


4,156


8,973


8,577

  Income from fiduciary activities


686


697


642


1,383


1,268

  Equity in earnings of unconsolidated subsidiaries


192


28


169


220


215

  Fees on foreign exchange


128


71


192


199


282

  Income from bank-owned life insurance


317


564


942


881


1,533

  Loan placement fees


178


149


193


327


433

  Net gains on sales of residential loans


2,888


4,128


3,394


7,016


6,371

  Net gains on sales of foreclosed assets


7,694


558


-


8,252


-

  Other



(497)


914


1,653


417


3,578













      Total other operating income


17,812


13,030


13,614


30,842


26,846













Other operating expense:











  Salaries and employee benefits


18,242


18,535


17,629


36,777


34,255

  Net occupancy 


3,622


3,227


3,264


6,849


6,530

  Equipment



878


958


1,021


1,836


1,978

  Amortization of other intangible assets


2,109


2,248


3,031


4,357


4,792

  Communication expense


870


950


816


1,820


1,670

  Legal and professional services


1,945


2,310


3,806


4,255


7,863

  Computer software expense


1,193


933


958


2,126


1,893

  Advertising expense


728


812


857


1,540


1,726

  Foreclosed asset expense


705


300


2,602


1,005


2,495

  Write down of assets


-


-


-


-


1,759

  Other



4,708


2,480


5,707


7,188


9,976













      Total other operating expense


35,000


32,753


39,691


67,753


74,937













  Income before income taxes


16,212


17,507


10,812


33,719


24,290

Income tax expense (benefit)


1,945


(119,802)


-


(117,857)


-

      Net income

$

14,267

$

137,309

$

10,812

$

151,576

$

24,290













Per common share data:











  Basic earnings per share

$

0.34

$

3.28

$

0.26

$

3.62

$

0.58

  Diluted earnings per share 


0.34


3.25


0.26


3.59


0.58













Basic weighted average shares outstanding


41,957


41,816


41,717


41,886


41,674

Diluted weighted average shares outstanding


42,320


42,297


41,959


42,235


41,959

 

 

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

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








Three Months Ended


Three Months Ended


Six Months Ended


Six Months Ended

(Dollars in thousands)


June 30, 2013


June 30, 2012


June 30, 2013


June 30, 2012





Average

Average




Average

Average




Average

Average




Average

Average







Balance

Yield/Rate


Interest


Balance

Yield/Rate


Interest


Balance

Yield/Rate


Interest


Balance

Yield/Rate


Interest
























Assets:





















Interest earning assets:






















Interest-bearing deposits in other banks

$    108,612

0.25

%

$        68


$      77,385

0.25

%

$        47


$    126,593

0.25

%

$      157


$    103,860

0.25

%

$      128


Taxable investment securities, excluding 





















   valuation allowance


1,516,992

1.95


7,379


1,555,361

1.95


7,593


1,497,547

1.93


14,415


1,533,916

1.98


15,210


Tax-exempt investment securities, 






















   excluding valuation allowance


179,724

3.56


1,600


55,688

4.93


686


177,798

3.58


3,180


34,714

5.70


989


Loans and leases, including loans held for sale

2,324,107

4.57


26,505


2,121,045

4.62


24,393


2,291,709

4.47


50,948


2,108,477

4.70


49,401


Federal Home Loan Bank stock


47,460

-


-


48,797

-


-


47,659

-


-


48,797

-


-



Total interest earning assets 


4,176,895

3.41


35,552


3,858,276

3.40


32,719


4,141,306

3.33


68,700


3,829,764

3.44


65,728

Nonearning assets


417,720





304,757





369,491





302,961





Total assets


$ 4,594,615





$ 4,163,033





$ 4,510,797





$ 4,132,725



























Liabilities & Equity:





















Interest-bearing liabilities:






















Interest-bearing demand deposits


$    703,165

0.05

%

$        87


$    614,480

0.06

%

$        89


$    688,495

0.05

%

$      168


$    592,242

0.06

%

$      175


Savings and money market deposits


1,179,152

0.07


219


1,158,955

0.09


252


1,175,573

0.07


436


1,152,396

0.10


551


Time deposits under $100,000


288,932

0.47


338


331,866

0.62


509


294,928

0.49


713


338,137

0.65


1,086


Time deposits $100,000 and over


734,456

0.21


382


642,349

0.28


453


722,405

0.21


766


646,929

0.30


949


Short-term borrowings


-

-


-


-

-


-


-

-


-


6

0.76


-


Long-term debt


108,273

2.94


793


108,291

3.41


917


108,276

3.10


1,662


111,315

3.36


1,860



Total interest-bearing liabilities


3,013,978

0.24


1,819


2,855,941

0.31


2,220


2,989,677

0.25


3,745


2,841,025

0.33


4,621

Noninterest-bearing deposits


846,979





752,512





834,167





740,093




Other liabilities


67,777





70,567





87,952





73,335





Total liabilities


3,928,734





3,679,020





3,911,796





3,654,453




Shareholders' equity


655,932





474,041





589,049





468,297




Non-controlling interest


9,949





9,972





9,952





9,975





Total equity


665,881





484,013





599,001





478,272





Total liabilities & equity


$ 4,594,615





$ 4,163,033





$ 4,510,797





$ 4,132,725



























Net interest income 





$ 33,733





$ 30,499





$ 64,955





$ 61,107















































Net interest margin



3.23

%



3.17

%



3.15

%



3.20

%

 

 

SOURCE Central Pacific Financial Corp.



RELATED LINKS
http://www.centralpacificbank.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.