Central Pacific Financial Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Central Pacific Financial Corp. has filed its Q1 2024 10-Q report, detailing financial performance and position as of March 31, 2024.</b>

AI Summary

CENTRAL PACIFIC FINANCIAL CORP (CPF) filed a Quarterly Report (10-Q) with the SEC on April 24, 2024. Central Pacific Financial Corp. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31st. Central Pacific Financial Corp. is classified under Standard Industrial Classification 6022 (State Commercial Banks). The company is incorporated in Hawaii (HI).

Why It Matters

For investors and stakeholders tracking CENTRAL PACIFIC FINANCIAL CORP, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial data, crucial for assessing the bank's performance and stability in the current economic climate. Understanding the details within this report allows for a timely evaluation of Central Pacific Financial Corp.'s financial health, strategic execution, and potential risks or opportunities.

Risk Assessment

Risk Level: medium — CENTRAL PACIFIC FINANCIAL CORP shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) for a commercial bank, which inherently carries market and regulatory risks common to the financial sector. Specific financial performance details and forward-looking statements will determine the precise risk level.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand the company's performance trends and outlook.

Key Numbers

• 2024-03-31 — Report Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-04-24 — Filing Date (FILED AS OF DATE)
• 2024-01-01 — Quarter Start Date (Reporting Period)
• 2023-12-31 — Previous Year End Date (Fiscal Year End)

Key Players & Entities

• CENTRAL PACIFIC FINANCIAL CORP (company) — FILER
• 0000701347 (company) — CENTRAL INDEX KEY
• HI (company) — STATE OF INCORPORATION
• HONOLULU (company) — CITY
• 96813 (company) — ZIP
• 8085440500 (company) — BUSINESS PHONE
• CPB INC (company) — FORMER COMPANY
• 19920703 (date) — DATE OF NAME CHANGE

FAQ

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-24: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing disclosure by public companies. (Provides a snapshot of the company's financial performance and position for the most recent quarter.)

US GAAP

United States Generally Accepted Accounting Principles, the common set of accounting principles, standards, and procedures by which financial statements are prepared in the U.S. (Ensures consistency and comparability of financial reporting for Central Pacific Financial Corp.)

Filing Documents

• cpf-20240331.htm (10-Q) — 3152KB
• exhibit311q12024033124.htm (EX-31.1) — 12KB
• exhibit312q12024033124.htm (EX-31.2) — 12KB
• exhibit321q12024033124.htm (EX-32.1) — 7KB
• exhibit322q12024033124.htm (EX-32.2) — 7KB
• 0000701347-24-000016.txt (&nbsp;) — 17121KB
• cpf-20240331.xsd (EX-101.SCH) — 77KB
• cpf-20240331_cal.xml (EX-101.CAL) — 153KB
• cpf-20240331_def.xml (EX-101.DEF) — 506KB
• cpf-20240331_lab.xml (EX-101.LAB) — 1002KB
• cpf-20240331_pre.xml (EX-101.PRE) — 773KB
• cpf-20240331_htm.xml (XML) — 4060KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Balance Sheets - March 31, 2024 and December 31, 2023 3 Consolidated Statements of Income - Three months ended March 31, 2024 and 2023 4 Consolidated Statements of Comprehensive Income - Three months ended March 31, 2024 and 2023 5 Consolidated Statements of Changes in Equity - Three months ended March 31, 2024 and 2023 6 Consolidated Statements of Cash Flows - Three months ended March 31, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 40 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 60 Item 4.

Controls and Procedures

Controls and Procedures 60 Part II. Other Information 61 Item 1.

Legal Proceedings

Legal Proceedings 61 Item 1A.

Risk Factors

Risk Factors 61 Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 61 Item 5. Other Information 61 Item 6. Exhibits 62

Signatures

Signatures 63 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) As of (dollars in thousands) March 31, 2024 December 31, 2023 Assets Cash and due from financial institutions $ 98,410 $ 116,181 Interest-bearing deposits in other financial institutions 214,472 406,256 Investment securities: Available-for-sale debt securities, at fair value 660,833 647,210 Held-to-maturity debt securities, at amortized cost; fair value of: $ 541,685 at March 31, 2024 and $ 565,178 at December 31, 2023 624,948 632,338 Total investment securities 1,285,781 1,279,548 Loans held for sale 755 1,778 Loans 5,401,417 5,438,982 Less: allowance for credit losses ( 63,532 ) ( 63,934 ) Loans, net of allowance for credit losses 5,337,885 5,375,048 Premises and equipment, net 97,688 96,184 Accrued interest receivable 21,957 21,511 Investment in unconsolidated entities 40,780 41,546 Mortgage servicing rights, net 8,599 8,696 Bank-owned life insurance 172,228 170,706 Federal Home Loan Bank of Des Moines ("FHLB") stock 6,921 6,793 Right-of-use lease assets 32,079 29,720 Other assets 92,444 88,829 Total assets $ 7,409,999 $ 7,642,796 Liabilities Deposits: Noninterest-bearing demand $ 1,848,554 $ 1,913,379 Interest-bearing demand 1,290,321 1,329,189 Savings and money market 2,211,966 2,209,733 Time 1,268,013 1,395,291 Total deposits 6,618,854 6,847,592 Long-term debt, net of unamortized debt issuance costs of $ 384 at March 31, 2024 and $ 445 at December 31, 2023 156,163 156,102 Lease liabilities 33,169 30,634 Accrued interest payable 16,654 18,948 Other liabilities 77,956 85,705 Total liabilities 6,902,796 7,138,981 Contingent liabilities and other commitments (see Note 16) Equity Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at March 31, 2024 and December 31, 2023 — — Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 27,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements of Central Pacific Financial Corp. and Subsidiaries (herein referred to as the "Company," "we," "us," or "our") have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These interim condensed consolidated financial statements and notes should be read in conjunction with the Company's consolidated financial statements and notes thereto filed on Form 10-K for the fiscal year ended December 31, 2023. In the opinion of management, all adjustments necessary for a fair presentation have been made and include all normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for the year. Allowance for Credit Losses for Loans The allowance for credit losses ("ACL") for loans is a valuation account that is deducted from the amortized cost basis of loans to present the net amount expected to be collected on loans. The Company's policy is to charge off a loan against the ACL during the period in which the loan is deemed to be uncollectible and all interest previously accrued but uncollected, is reversed against current period interest income. Subsequent receipts, if any, are credited first to the remaining principal, then to the ACL for loans as recoveries, and finally to interest income. The ACL for loans represents management's estimate of all expected credit losses over the expected life of the Company's loan portfolio as of a given balance sheet date. Management estimates the ACL balance usi

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View this 10-Q filing on SEC EDGAR