Attached files
| file | filename |
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| 8-K - FORM 8-K - CENTRAL PACIFIC FINANCIAL CORP | form8-k.htm |
| Investor Contact: | David Morimoto | Media Contact: |
Wayne Kirihara
|
| SVP & Treasurer | SVP - Corporate Communications | ||
| (808) 544-3627 | (808) 544-3687 | ||
| david.morimoto@centralpacificbank.com | wayne.kirihara@centralpacificbank.com | ||
NEWS RELEASE
CENTRAL PACIFIC FINANCIAL CORP. REPORTS
$13.5 MILLION NET INCOME
HONOLULU, HI, April 26, 2012 – Central Pacific Financial Corp. (NYSE: CPF), parent company of Central Pacific Bank (the “Bank”), today reported net income for the first quarter of 2012 of $13.5 million, or $0.32 per diluted share, compared to net income in the first quarter of 2011 of $4.6 million, or $4.58 per diluted share, and net income in the fourth quarter of 2011 of $12.1 million, or $0.29 per diluted share. Net income per diluted share in the first quarter of 2011 included the impact of a one-time accounting adjustment totaling $85.1 million resulting from the exchange of the Company’s preferred stock issued to the U.S. Department of Treasury for common stock as part of its recapitalization in February 2011. Excluding this one-time adjustment, which did not impact the Company’s reported net income of $4.6 million, the Company’s net income per diluted share for the first quarter of 2011 was $0.18.
"We are pleased to have maintained the positive momentum from our Company’s turnaround in 2011 with a fifth consecutive quarter of profitability," said John C. Dean, President and Chief Executive Officer. "Continued improvement in our credit risk profile resulted in a meaningful reduction in our allowance for loan and lease losses that contributed to our profitable quarter."
Significant Highlights and First Quarter Results
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Reported fifth consecutive profitable quarter with net income of $13.5 million, compared to net income of $12.1 million in the fourth quarter of 2011.
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For the fourth consecutive quarter, the Company did not incur credit costs as it reduced its allowance for loan and lease losses (ALLL) by an amount greater than net foreclosed asset expense, write-downs of loans held for sale and changes to the reserve for unfunded commitments. The reduction in the ALLL resulted in a credit to the provision for loan and lease losses of $5.0 million, compared to a credit of $11.2 million for the fourth quarter of 2011.
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The ALLL, as a percentage of total loans and leases, decreased to 5.49% at March 31, 2012, compared to 5.91% at December 31, 2011. In addition, the Company had an ALLL, as a percentage of nonperforming assets, of 55.61% at March 31, 2012, compared to 62.42% at December 31, 2011.
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Increased the loans and leases portfolio by $18.3 million to $2.08 billion at March 31, 2012, compared to $2.06 billion at December 31, 2011.
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Increased total deposits by $64.3 million to $3.51 billion at March 31, 2012, compared to $3.44 billion at December 31, 2011.
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Maintained a strong capital position with Tier 1 risk-based capital, total risk-based capital, and leverage capital ratios of 22.83%, 24.13%, and 14.03%, respectively, as of March 31, 2012, compared to 22.94%, 24.24%, and 13.78%, respectively, as of December 31, 2011. The Company’s capital ratios continue to exceed the minimum levels required for a “well-capitalized” regulatory designation.
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Earnings Highlights
Net interest income for the first quarter of 2012 was $30.5 million, compared to $28.2 million in the year-ago quarter and $30.8 million in the fourth quarter of 2011. Net interest margin was 3.23%, compared to 3.03% in the year-ago quarter and 3.25% in the fourth quarter of 2011. The improvement in both net interest income and the net interest margin from the year-ago quarter reflects the deployment of the Company’s excess liquidity into higher yielding investment securities and the previously reported early repayment of long term borrowings at the Federal Home Loan Bank of Seattle in September 2011. The sequential quarter decrease was primarily due to slightly lower yields on the Company’s interest-earning assets compared to the fourth quarter of 2011.
The provision for loan and lease losses for the first quarter of 2012 was a credit of $5.0 million, compared to a credit of $1.6 million in the year-ago quarter and a credit of $11.2 million in the fourth quarter of 2011. The credit to the provision for loan and lease losses recorded during the quarter was impacted by three elements. First, lower net charge-offs for the quarter of $2.8 million, compared to $13.3 million for the same quarter last year and $10.1 million for the fourth quarter of 2011. Second, the historical quarterly charge-off data used to allocate the ALLL continues to improve. Finally, continued improvement in other factors of our overall risk profile also contributed to the reduction in our ALLL.
Other operating income for the first quarter of 2012 totaled $13.2 million, compared to $12.5 million in the year-ago quarter and $15.2 million in the fourth quarter of 2011. The increase from the year-ago quarter was primarily due to higher rental income from foreclosed properties of $1.1 million and higher gains on sales of residential mortgage loans of $0.8 million, partially offset by lower income from bank-owned life insurance of $0.6 million. The sequential quarter decrease was primarily due to the recognition of a $1.0 million gain on the sale of investment securities during the fourth quarter of 2011, lower gains on sales of residential mortgage loans of $0.7 million and lower income from bank-owned life insurance of $0.5 million, partially offset by higher unrealized gains on interest rate locks of $0.6 million.
Other operating expense for the first quarter of 2012 totaled $35.2 million, compared to $37.6 million in the year-ago quarter and $45.2 million in the fourth quarter of 2011. The decrease from the year-ago quarter was primarily due to 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 $3.3 million and lower FDIC insurance expense of $1.7 million, partially offset by higher salaries and employee benefits of $1.6 million and higher legal and professional services of $1.3 million. The sequential quarter decrease was primarily attributable to lower net credit-related charges of $5.2 million and lower charitable contributions of $3.5 million.
The efficiency ratio for the first quarter of 2012 was 74.99% (excluding write-downs of loans held for sale of $1.8 million and foreclosed asset income of $0.1 million), compared to 81.8% in the year-ago quarter (excluding foreclosed asset expense of $2.0 million and write-downs of loans held for sale of $1.6 million) and 92.0% (excluding gains on sale of investment securities of $1.0 million and foreclosed asset expense of $3.0 million) in the fourth quarter of 2011.
The Company continues to recognize a full valuation allowance against its net deferred tax assets and did not record any income tax benefit or expense during the first quarter of 2012.
Balance Sheet Highlights
Total assets at March 31, 2012 of $4.2 billion increased by $144.9 million and $25.4 million from March 31, 2011 and December 31, 2011, respectively.
Total loans and leases at March 31, 2012 of $2.1 billion increased by $15.5 million and $18.3 million from March 31, 2011 and December 31, 2011, respectively. The increase in total loans and leases from the fourth quarter of 2011 was primarily due to an increase in the residential mortgage, commercial mortgage and commercial loan portfolios of $15.6 million, $13.6 million and $6.3 million, respectively, partially offset by a decrease in the construction and development portfolio of $13.5 million.
Total deposits at March 31, 2012 were $3.5 billion, compared to $3.1 billion and $3.4 billion at March 31, 2011 and December 31, 2011, respectively. Core deposits, which include demand deposits, savings and money market deposits, and time deposits less than $100,000, totaled $2.9 billion at March 31, 2012. This represents an increase of $128.5 million from a year ago and an increase of $89.9 million from December 31, 2011. Changes in total deposits during the quarter included an increase in interest-bearing demand deposits, non-interest bearing demand deposits and savings and money market deposits of $41.4 million, $37.4 million and $24.2 million, respectively, offset by a decrease in time deposits of $38.8 million.
Total shareholders’ equity was $467.5 million at March 31, 2012, compared to $385.0 million and $456.4 million at March 31, 2011 and December 31, 2011, respectively.
Asset Quality
Nonperforming assets at March 31, 2012 totaled $205.6 million, or 4.94% of total assets, compared to $195.6 million, or 4.73% of total assets at December 31, 2011. The sequential-quarter increase reflects net additions in Mainland construction and development assets totaling $10.8 million, Mainland commercial mortgage assets totaling $4.9 million and Hawaii commercial assets totaling $3.3 million, partially offset by net decreases in Hawaii construction and development assets totaling $7.7 million and Hawaii residential mortgage assets totaling $1.7 million.
Loans delinquent for 90 days or more still accruing interest totaled $0.2 million at March 31, 2012, compared to $28,000 at December 31, 2011. In addition, loans delinquent for 30 days or more still accruing interest totaled $6.2 million at March 31, 2012, compared to $5.4 million at December 31, 2011.
As mentioned earlier, net charge-offs in the first quarter of 2012 totaled $2.8 million, compared to $13.3 million in the year-ago quarter and $10.1 million in the fourth quarter of 2011. Net charge-offs included the following significant amounts: Mainland construction and development loans totaling $1.1 million and Hawaii commercial loans totaling $1.4 million.
The ALLL, as a percentage of total loans and leases, was 5.49% at March 31, 2012, compared to 5.91% at December 31, 2011. The ALLL, as a percentage of nonperforming assets, was 55.61% at March 31, 2012, compared to 62.42% at December 31, 2011.
Capital Levels
At March 31, 2012, the Company’s Tier 1 risk-based capital, total risk-based capital, and leverage capital ratios were 22.83%, 24.13%, and 14.03%, respectively, compared to 22.94%, 24.24%, and 13.78%, respectively, at December 31, 2011. The Company’s capital ratios continue to exceed the minimum levels required by both the Memorandum of Understanding between the bank and its regulators and the levels required for a “well-capitalized” regulatory designation.
Reverse Split
Except as otherwise specified, the share and per share amounts for historical periods have been restated to give the effect to the Reverse Stock Split effected on February 2, 2011.
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 1-877-317-6789. A playback of the call will be available through May 28, 2012 by dialing 1-877-344-7529 (passcode: 10011925) and on the Company's website.
About Central Pacific Financial Corp.
Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $4.2 billion in assets. Central Pacific Bank, its primary subsidiary, operates 34 branches and 120 ATMs in the state of Hawaii. For additional information, please visit the Company’s website at http://www.centralpacificbank.com.
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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, concerning plans and objectives of management for future operations, concerning future economic performance, or concerning 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 all of the requirements of, the Memorandum of Understanding with the Federal Deposit Insurance Corporation (“FDIC”) and the Hawaii Division of Financial Institutions (“DFI”), effective May 5, 2011, the Written Agreement with the Federal Reserve Bank of San Francisco and DFI, dated July 2, 2010, and any further regulatory orders; 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 recurring 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, further deterioration in asset quality and further losses in our loan portfolio; the impact of local, national, and international economies and events (including 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 the continued destabilizing factors 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; 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, including but not limited to government-sponsored enterprise reform, and any related rules and regulations on our business operations and competitiveness, including the impact of executive compensation restrictions, which may affect our ability to retain and recruit executives in competition with other firms who do not operate under those restrictions; 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; political instability; acts of war or terrorism; 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 employees; changes in our organization, compensation and benefit plans; and our success at managing the risks involved in the foregoing items.
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CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
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Financial Highlights - March 31, 2012
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(Unaudited)
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Three Months Ended
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March 31,
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(in thousands, except per share data)
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2012
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2011
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INCOME STATEMENT
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Net income
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$ | 13,478 | $ | 4,639 | |||||||
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Per common share data:
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Basic earnings per share (after preferred stock dividends, accretion
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of discount, and conversion of preferred stock to common stock)
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0.32 | 4.59 | |||||||||
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Diluted earnings per share (after preferred stock dividends, accretion
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of discount, and conversion of preferred stock to common stock)
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0.32 | 4.58 | |||||||||
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PERFORMANCE RATIOS
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Return on average assets (1)
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1.31 | % | 0.47 | % | |||||||
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Return on average shareholders' equity (1)
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11.66 | 9.34 | |||||||||
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Net income to average tangible shareholders' equity (1)
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12.15 | 10.48 | |||||||||
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Efficiency ratio (2)
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74.99 | 81.78 | |||||||||
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Net interest margin (1)
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3.23 | 3.03 | |||||||||
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REGULATORY CAPITAL RATIOS
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Central Pacific Financial Corp.
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Tier 1 risk-based capital
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22.83 | % | 21.34 | % | |||||||
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Total risk-based capital
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24.13 | 22.67 | |||||||||
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Leverage capital
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14.03 | 12.64 | |||||||||
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Central Pacific Bank
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Tier 1 risk-based capital
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21.60 | % | 20.78 | % | |||||||
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Total risk-based capital
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22.89 | 22.11 | |||||||||
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Leverage capital
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13.27 | 12.31 | |||||||||
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March 31,
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%
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Change
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BALANCE SHEET
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Total assets
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$ | 4,158,288 | $ | 4,013,398 | 3.6 | % | |||||
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Loans and leases
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2,082,752 | 2,067,302 | 0.7 | ||||||||
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Net loans and leases
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1,968,430 | 1,889,292 | 4.2 | ||||||||
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Deposits
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3,507,803 | 3,145,463 | 11.5 | ||||||||
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Total shareholders' equity
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467,466 | 384,984 | 21.4 | ||||||||
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Book value per common share
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11.20 | 9.71 | 15.3 | ||||||||
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Tangible book value per common share
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10.76 | 9.17 | 17.3 | ||||||||
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Market value per common share
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12.95 | 20.80 | (37.7 | ) | |||||||
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Tangible common equity ratio (3)
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10.85 | % | 9.11 | % | 19.1 | ||||||
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Three Months Ended
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March 31,
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%
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| 2012 | 2011 |
Change
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SELECTED AVERAGE BALANCES
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Total assets
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$ | 4,102,418 | $ | 3,970,299 | 3.3 | % | |||||
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Interest-earning assets
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3,801,253 | 3,760,082 | 1.1 | ||||||||
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Loans and leases, including loans held for sale
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2,095,910 | 2,189,603 | (4.3 | ) | |||||||
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Other real estate
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58,281 | 58,384 | (0.2 | ) | |||||||
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Deposits
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3,439,433 | 3,091,447 | 11.3 | ||||||||
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Interest-bearing liabilities
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2,826,109 | 2,992,383 | (5.6 | ) | |||||||
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Total shareholders' equity
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462,554 | 198,627 | 132.9 | ||||||||
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CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
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Financial Highlights - March 31, 2012
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(Unaudited)
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March 31,
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%
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(in thousands, except per share data)
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2012
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2011
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Change
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NONPERFORMING ASSETS
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Nonaccrual loans (including loans held for sale)
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$ | 152,857 | $ | 228,251 | (33.0 | ) % | |||||
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Other real estate
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52,725 | 56,601 | (6.8 | ) | |||||||
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Total nonperforming assets
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205,582 | 284,852 | (27.8 | ) | |||||||
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Loans delinquent for 90 days or more (still accruing interest)
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208 | 506 | (58.9 | ) | |||||||
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Restructured loans (still accruing interest)
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10,106 | 12,410 | (18.6 | ) | |||||||
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Total nonperforming assets, loans delinquent for 90 days or more (still
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accruing interest) and restructured loans (still accruing interest)
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$ | 215,896 | $ | 297,768 | (27.5 | ) | |||||
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Three Months Ended
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March 31,
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| 2012 | 2011 | ||||||||||
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Loan charge-offs
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$ | 3,962 | $ | 18,131 | (78.1 | ) % | |||||
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Recoveries
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1,181 | 4,862 | (75.7 | ) | |||||||
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Net loan charge-offs
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$ | 2,781 | $ | 13,269 | (79.0 | ) | |||||
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Net loan charge-offs to average loans (1)
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0.53 | % | 2.42 | % | |||||||
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March 31,
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| 2012 | 2011 | ||||||||||
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ASSET QUALITY RATIOS
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| Nonaccrual loans (including loans held for sale) to total loans and leases | |||||||||||
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and loans held for sale
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7.27 | % | 10.76 | % | |||||||
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Nonperforming assets to total assets
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4.94 | 7.10 | |||||||||
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Nonperforming assets, loans delinquent for 90 days or more (still accruing
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| interest) and restructured loans (still accruing interest) to total loans | |||||||||||
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and leases, loans held for sale & other real estate
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10.01 | 13.67 | |||||||||
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Allowance for loan and lease losses to total loans and leases
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5.49 | 8.61 | |||||||||
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Allowance for loan and lease losses to nonaccrual loans (including loans held for sale)
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74.79 | 77.99 | |||||||||
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(1)
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Annualized.
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(2)
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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 property, 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). See Reconciliation of Non-GAAP Financial Measures.
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(3)
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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 tangible assets (excluding MSRs).
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CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
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Reconciliation of Non-GAAP Financial Measures
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(Unaudited)
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Quarter Ended
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Quarter Ended
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Quarter Ended
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(Dollars in thousands, except per share data)
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March 31, 2012
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December 31, 2011
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March 31, 2011
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Adjusted Diluted Earnings Per Share
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Diluted earnings per share
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$ | 0.32 | $ | 0.29 | $ | 4.57 | |||||
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Gain on exchange of preferred stock to common stock
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- | - | 4.39 | ||||||||
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Adjusted diluted earnings per share
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$ | 0.32 | $ | 0.29 | $ | 0.18 | |||||
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Efficiency Ratio
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Total operating expenses as a percentage of net operating revenue
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80.40 | % | 100.14 | % | 92.25 | % | |||||
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Amortization of other intangible assets
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(1.64 | ) | (1.59 | ) | (1.76 | ) | |||||
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Foreclosed asset expense
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0.24 | (6.56 | ) | (4.87 | ) | ||||||
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Write down of assets
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(4.01 | ) | - | (3.84 | ) | ||||||
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Efficiency ratio
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74.99 | % | 91.99 | % | 81.78 | % | |||||
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Tangible Common Equity Ratio
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March 31, 2012
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March 31, 2011
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Total shareholders' equity
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$ | 467,466 | $ | 384,984 | |||||||
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Less: Other intangible assets
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(18,334 | ) | (21,208 | ) | |||||||
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Tangible common equity
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449,132 | 363,776 | |||||||||
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Total assets
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4,158,288 | 4,013,398 | |||||||||
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Less: Other intangible assets
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(18,334 | ) | (21,208 | ) | |||||||
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Tangible assets
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4,139,954 | 3,992,190 | |||||||||
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Tangible common equity / Tangible assets
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10.85 | % | 9.11 | % | |||||||
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CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(Unaudited)
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(in thousands)
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March 31,
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December 31,
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March 31,
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2012
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2011
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2011
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ASSETS
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Cash and due from banks
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$ | 69,873 | $ | 76,233 | $ | 63,687 | ||||||
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Interest-bearing deposits in other banks
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57,661 | 180,839 | 537,495 | |||||||||
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Investment securities:
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Available for sale
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1,645,952 | 1,492,994 | 1,076,181 | |||||||||
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Held to maturity (fair value of $718 at March 31, 2012,
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$976 December 31, 2011 and $2,009 March 31, 2011)
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704 | 931 | 1,943 | |||||||||
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Total investment securities
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1,646,656 | 1,493,925 | 1,078,124 | |||||||||
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Loans held for sale
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20,459 | 50,290 | 54,093 | |||||||||
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Loans and leases
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2,082,752 | 2,064,447 | 2,067,302 | |||||||||
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Less allowance for loan and lease losses
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114,322 | 122,093 | 178,010 | |||||||||
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Net loans and leases
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1,968,430 | 1,942,354 | 1,889,292 | |||||||||
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Premises and equipment, net
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50,389 | 51,414 | 55,977 | |||||||||
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Accrued interest receivable
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12,217 | 11,674 | 11,461 | |||||||||
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Investment in unconsolidated subsidiaries
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11,839 | 12,697 | 13,950 | |||||||||
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Other real estate
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52,725 | 61,681 | 56,601 | |||||||||
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Mortgage servicing rights
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23,110 | 22,933 | 23,290 | |||||||||
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Other intangible assets
|
18,334 | 19,053 | 21,208 | |||||||||
|
Bank-owned life insurance
|
145,060 | 144,474 | 142,000 | |||||||||
|
Federal Home Loan Bank stock
|
48,797 | 48,797 | 48,797 | |||||||||
|
Other assets
|
32,738 | 16,501 | 17,423 | |||||||||
|
Total assets
|
$ | 4,158,288 | $ | 4,132,865 | $ | 4,013,398 | ||||||
|
LIABILITIES AND EQUITY
|
||||||||||||
|
Deposits:
|
||||||||||||
|
Noninterest-bearing demand
|
$ | 766,595 | $ | 729,149 | $ | 678,007 | ||||||
|
Interest-bearing demand
|
610,743 | 569,371 | 528,533 | |||||||||
|
Savings and money market
|
1,160,415 | 1,136,180 | 1,120,272 | |||||||||
|
Time
|
970,050 | 1,008,828 | 818,651 | |||||||||
|
Total deposits
|
3,507,803 | 3,443,528 | 3,145,463 | |||||||||
|
Short-term borrowings
|
- | 34 | 1,423 | |||||||||
|
Long-tem debt
|
108,294 | 158,298 | 409,299 | |||||||||
|
Other liabilities
|
64,751 | 64,585 | 62,231 | |||||||||
|
Total liabilities
|
3,680,848 | 3,666,445 | 3,618,416 | |||||||||
|
Equity:
|
||||||||||||
|
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding
|
||||||||||||
|
none at March 31, 2012, December 31, 2011, and March 31, 2011
|
- | - | - | |||||||||
|
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding
|
||||||||||||
|
41,747,020 shares at March 31, 2012, 41,749,116 shares at December 31, 2011,
|
||||||||||||
|
and 39,649,052 shares at March 31, 2011
|
784,574 | 784,539 | 764,463 | |||||||||
|
Surplus
|
67,561 | 66,585 | 63,436 | |||||||||
|
Accumulated deficit
|
(383,370 | ) | (396,848 | ) | (428,780 | ) | ||||||
|
Accumulated other comprehensive income (loss)
|
(1,299 | ) | 2,164 | (14,135 | ) | |||||||
|
Total shareholders' equity
|
467,466 | 456,440 | 384,984 | |||||||||
|
Non-controlling interest
|
9,974 | 9,980 | 9,998 | |||||||||
|
Total equity
|
477,440 | 466,420 | 394,982 | |||||||||
|
Total liabilities and equity
|
$ | 4,158,288 | $ | 4,132,865 | $ | 4,013,398 | ||||||
|
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
|
|||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME
|
|||||||||||
|
(Unaudited)
|
|||||||||||
|
(In thousands, except per share data)
|
Three Months Ended
|
||||||||||
|
|
March 31, 2012
|
December 31, 2011
|
March 31, 2011
|
||||||||
|
Interest income:
|
|||||||||||
|
Interest and fees on loans and leases
|
$ | 25,008 | $ | 26,097 | $ | 28,566 | |||||
|
Interest and dividends on investment securities:
|
|||||||||||
|
Taxable interest
|
7,614 | 7,179 | 5,221 | ||||||||
|
Tax-exempt interest
|
197 | 189 | 184 | ||||||||
|
Dividends
|
3 | 4 | 3 | ||||||||
|
Interest on deposits in other banks
|
81 | 104 | 389 | ||||||||
|
Total interest income
|
32,903 | 33,573 | 34,363 | ||||||||
|
Interest expense:
|
|||||||||||
|
Interest on deposits:
|
|||||||||||
|
Demand
|
86 | 94 | 132 | ||||||||
|
Savings and money market
|
299 | 353 | 732 | ||||||||
|
Time
|
1,073 | 1,288 | 2,377 | ||||||||
|
Interest on short-term borrowings
|
- | - | 204 | ||||||||
|
Interest on long-term debt
|
943 | 1,026 | 2,717 | ||||||||
|
Total interest expense
|
2,401 | 2,761 | 6,162 | ||||||||
|
Net interest income
|
30,502 | 30,812 | 28,201 | ||||||||
|
Provision (credit) for loan and lease losses
|
(4,990 | ) | (11,215 | ) | (1,575 | ) | |||||
|
Net interest income after provision for loan and lease losses
|
35,492 | 42,027 | 29,776 | ||||||||
|
Other operating income:
|
|||||||||||
|
Service charges on deposit accounts
|
2,316 | 2,460 | 2,614 | ||||||||
|
Other service charges and fees
|
4,421 | 4,286 | 4,058 | ||||||||
|
Income from fiduciary activities
|
626 | 658 | 761 | ||||||||
|
Equity in earnings of unconsolidated subsidiaries
|
46 | 157 | 127 | ||||||||
|
Fees on foreign exchange
|
90 | 180 | 137 | ||||||||
|
Investment securities gains
|
- | 1,045 | - | ||||||||
|
Income from bank-owned life insurance
|
591 | 1,103 | 1,190 | ||||||||
|
Loan placement fees
|
240 | 193 | 102 | ||||||||
|
Net gain on sales of residential loans
|
2,977 | 3,670 | 2,198 | ||||||||
|
Other
|
1,925 | 1,483 | 1,313 | ||||||||
|
Total other operating income
|
13,232 | 15,235 | 12,500 | ||||||||
|
Other operating expense:
|
|||||||||||
|
Salaries and employee benefits
|
16,626 | 17,344 | 15,033 | ||||||||
|
Net occupancy
|
3,266 | 3,559 | 3,358 | ||||||||
|
Equipment
|
957 | 1,070 | 1,130 | ||||||||
|
Amortization of other intangible assets
|
1,761 | 2,148 | 1,547 | ||||||||
|
Communication expense
|
854 | 886 | 881 | ||||||||
|
Legal and professional services
|
4,057 | 3,536 | 2,717 | ||||||||
|
Computer software expense
|
935 | 923 | 883 | ||||||||
|
Advertising expense
|
869 | 453 | 836 | ||||||||
|
Foreclosed asset expense
|
(107 | ) | 2,959 | 1,985 | |||||||
|
Write down of assets
|
1,759 | - | 1,565 | ||||||||
|
Other
|
4,269 | 12,289 | 7,702 | ||||||||
|
Total other operating expense
|
35,246 | 45,167 | 37,637 | ||||||||
|
Income before income taxes
|
13,478 | 12,095 | 4,639 | ||||||||
|
Income tax expense
|
- | - | - | ||||||||
|
Net income
|
$ | 13,478 | $ | 12,095 | $ | 4,639 | |||||
|
Per common share data:
|
|||||||||||
|
Basic earnings per share
|
$ | 0.32 | $ | 0.29 | $ | 4.59 | |||||
|
Diluted earnings per share
|
0.32 | 0.29 | 4.58 | ||||||||
|
Basic weighted average shares outstanding
|
41,631 | 41,628 | 19,301 | ||||||||
|
Diluted weighted average shares outstanding
|
41,839 | 41,709 | 19,321 | ||||||||
|
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
|
||||||||||||||||||||||||||
|
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)
|
||||||||||||||||||||||||||
|
Three Months Ended
|
Three Months Ended
|
Three Months Ended
|
||||||||||||||||||||||||
|
(Dollars in thousands)
|
March 31, 2012
|
December 31, 2011
|
March 31, 2011
|
|||||||||||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
|
Balance
|
Yield/Rate
|
Interest
|
Balance
|
Yield/Rate
|
Interest
|
Balance
|
Yield/Rate
|
Interest
|
||||||||||||||||||
|
Assets:
|
||||||||||||||||||||||||||
|
Interest earning assets:
|
||||||||||||||||||||||||||
|
Interest-bearing deposits in other banks
|
$ | 130,335 | 0.25 | % | $ | 81 | $ | 162,592 | 0.25 | % | $ | 104 | $ | 617,944 | 0.26 | % | $ | 389 | ||||||||
|
Taxable investment securities, excluding
|
||||||||||||||||||||||||||
|
valuation allowance
|
1,512,470 | 2.01 | 7,617 | 1,449,324 | 1.98 | 7,183 | 890,759 | 2.35 | 5,224 | |||||||||||||||||
|
Tax-exempt investment securities,
|
||||||||||||||||||||||||||
|
excluding valuation allowance
|
13,741 | 8.81 | 303 | 12,304 | 9.47 | 291 | 12,979 | 8.67 | 282 | |||||||||||||||||
|
Loans and leases, including loans held for sale
|
2,095,910 | 4.79 | 25,008 | 2,114,686 | 4.91 | 26,097 | 2,189,603 | 5.27 | 28,566 | |||||||||||||||||
|
Federal Home Loan Bank stock
|
48,797 | - | - | 48,797 | - | - | 48,797 | - | - | |||||||||||||||||
|
Total interest earning assets
|
3,801,253 | 3.48 | 33,009 | 3,787,703 | 3.54 | 33,675 | 3,760,082 | 3.70 | 34,461 | |||||||||||||||||
|
Nonearning assets
|
301,165 | 276,708 | 210,217 | |||||||||||||||||||||||
|
Total assets
|
$ | 4,102,418 | $ | 4,064,411 | $ | 3,970,299 | ||||||||||||||||||||
|
Liabilities & Equity:
|
||||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||||
|
Interest-bearing demand deposits
|
$ | 570,005 | 0.06 | % | $ | 86 | $ | 555,624 | 0.07 | % | $ | 94 | $ | 529,405 | 0.10 | % | $ | 132 | ||||||||
|
Savings and money market deposits
|
1,145,837 | 0.10 | 299 | 1,130,165 | 0.12 | 353 | 1,107,546 | 0.27 | 732 | |||||||||||||||||
|
Time deposits under $100,000
|
344,409 | 0.67 | 577 | 359,076 | 0.76 | 688 | 441,461 | 1.25 | 1,366 | |||||||||||||||||
|
Time deposits $100,000 and over
|
651,508 | 0.31 | 496 | 611,662 | 0.39 | 600 | 334,170 | 1.23 | 1,011 | |||||||||||||||||
|
Short-term borrowings
|
11 | 0.76 | - | 1,878 | 0.01 | - | 139,707 | 0.59 | 204 | |||||||||||||||||
|
Long-term debt
|
114,339 | 3.32 | 943 | 187,670 | 2.17 | 1,026 | 440,094 | 2.50 | 2,717 | |||||||||||||||||
|
Total interest-bearing liabilities
|
2,826,109 | 0.34 | 2,401 | 2,846,075 | 0.38 | 2,761 | 2,992,383 | 0.84 | 6,162 | |||||||||||||||||
|
Noninterest-bearing deposits
|
727,674 | 692,192 | 678,865 | |||||||||||||||||||||||
|
Other liabilities
|
76,103 | 67,402 | 90,423 | |||||||||||||||||||||||
|
Total liabilities
|
3,629,886 | 3,605,669 | 3,761,671 | |||||||||||||||||||||||
|
Shareholders' equity
|
462,554 | 448,759 | 198,627 | |||||||||||||||||||||||
|
Non-controlling interest
|
9,978 | 9,983 | 10,001 | |||||||||||||||||||||||
|
Total equity
|
472,532 | 458,742 | 208,628 | |||||||||||||||||||||||
|
Total liabilities & equity
|
$ | 4,102,418 | $ | 4,064,411 | $ | 3,970,299 | ||||||||||||||||||||
|
Net interest income
|
$ | 30,608 | $ | 30,914 | $ | 28,299 | ||||||||||||||||||||
|
Net interest margin
|
3.23 | % | 3.25 | % | 3.03 | % | ||||||||||||||||||||