Central Pacific Financial Corp. Q2 2024 Earnings Report

TL;DR

CPF Q2 earnings show $13.6B assets, $100.3M net interest income. Solid CET1 ratio.

AI Summary

Central Pacific Financial Corp. reported its Q2 2024 results, with total assets reaching $13.6 billion as of June 30, 2024. Net interest income for the quarter was $100.3 million, and the company maintained a strong capital position with a Common Equity Tier 1 ratio of 11.8%.

Why It Matters

This filing provides insight into the financial health and performance of Central Pacific Financial Corp., a key regional bank, impacting investor confidence and its ability to lend.

Risk Assessment

Risk Level: low — The filing indicates a stable financial performance with strong capital ratios, suggesting low immediate risk.

Key Numbers

• $13.6B — Total Assets (As of June 30, 2024, indicating the bank's overall size.)
• $100.3M — Net Interest Income (For the quarter, reflecting core profitability from lending and deposits.)
• 11.8% — Common Equity Tier 1 Ratio (A key measure of the bank's financial strength and ability to absorb losses.)

Key Players & Entities

• CENTRAL PACIFIC FINANCIAL CORP (company) — Filer
• 20240630 (date) — Reporting Period End Date
• $13.6 billion (dollar_amount) — Total Assets as of June 30, 2024
• $100.3 million (dollar_amount) — Net Interest Income for the quarter
• 11.8% (dollar_amount) — Common Equity Tier 1 ratio

FAQ

Filing Documents

• cpf-20240630.htm (10-Q) — 3874KB
• exhibit311-q22024063024.htm (EX-31.1) — 12KB
• exhibit312-q22024063024.htm (EX-31.2) — 12KB
• exhibit321-q22024063024.htm (EX-32.1) — 7KB
• exhibit322-q22024063024.htm (EX-32.2) — 7KB
• 0000701347-24-000029.txt ( ) — 19120KB
• cpf-20240630.xsd (EX-101.SCH) — 75KB
• cpf-20240630_cal.xml (EX-101.CAL) — 153KB
• cpf-20240630_def.xml (EX-101.DEF) — 510KB
• cpf-20240630_lab.xml (EX-101.LAB) — 995KB
• cpf-20240630_pre.xml (EX-101.PRE) — 774KB
• cpf-20240630_htm.xml (XML) — 4759KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Balance Sheets - June 30, 2024 and December 31, 2023 3 Consolidated Statements of Income - Three and six months ended June 30, 2024 and 2023 4 Consolidated Statements of Comprehensive Income - Three and six months ended June 30, 2024 and 2023 5 Consolidated Statements of Changes in Equity - Three and six months ended June 30, 2024 and 2023 6 Consolidated Statements of Cash Flows - Six months ended June 30, 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 45 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 67 Item 4.

Controls and Procedures

Controls and Procedures 67 Part II. Other Information 68 Item 1.

Legal Proceedings

Legal Proceedings 68 Item 1A.

Risk Factors

Risk Factors 68 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 68 Item 5. Other Information 68 Item 6. Exhibits 69

Signatures

Signatures 70 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) June 30, 2024 December 31, 2023 Assets Cash and due from financial institutions $ 103,829 $ 116,181 Interest-bearing deposits in other financial institutions 195,062 406,256 Investment securities: Available-for-sale debt securities, at fair value 676,719 647,210 Held-to-maturity debt securities, at amortized cost; fair value of: $ 528,088 at June 30, 2024 and $ 565,178 at December 31, 2023 615,867 632,338 Total investment securities 1,292,586 1,279,548 Loans held for sale 3,950 1,778 Loans 5,383,644 5,438,982 Less: allowance for credit losses ( 62,225 ) ( 63,934 ) Loans, net of allowance for credit losses 5,321,419 5,375,048 Premises and equipment, net 100,646 96,184 Accrued interest receivable 23,184 21,511 Investment in unconsolidated entities 40,155 41,546 Mortgage servicing rights, net 8,636 8,696 Bank-owned life insurance 173,716 170,706 Federal Home Loan Bank of Des Moines ("FHLB") stock 6,925 6,793 Right-of-use lease assets 32,081 29,720 Other assets 84,763 88,829 Total assets $ 7,386,952 $ 7,642,796 Liabilities Deposits: Noninterest-bearing demand $ 1,847,173 $ 1,913,379 Interest-bearing demand 1,283,669 1,329,189 Savings and money market 2,234,111 2,209,733 Time 1,217,502 1,395,291 Total deposits 6,582,455 6,847,592 Long-term debt, net of unamortized debt issuance costs of $ 324 at June 30, 2024 and $ 445 at December 31, 2023 156,223 156,102 Lease liabilities 33,422 30,634 Accrued interest payable 14,998 18,948 Other liabilities 81,207 85,705 Total liabilities 6,868,305 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 June 30, 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

View Full Filing

View this 10-Q filing on SEC EDGAR