Central Pacific Financial Corp. Q3 2024 Results Filed

TL;DR

CPF reports Q3 2024 numbers - interest income and mortgage banking details out.

AI Summary

Central Pacific Financial Corp. reported its third-quarter results for the period ending September 30, 2024. The company's filing details its financial performance, including interest income and various non-interest income sources. Specific figures for interest receivable and mortgage banking activities are highlighted within the report.

Why It Matters

This filing provides investors and analysts with the latest financial data for Central Pacific Financial Corp., crucial for understanding the company's performance and making informed investment decisions.

Risk Assessment

Risk Level: medium — As a financial institution, Central Pacific Financial Corp. is subject to market, credit, and interest rate risks inherent in the banking sector.

Key Numbers

• Q3 2024 — Reporting Period (The third quarter of 2024, ending September 30.)

Key Players & Entities

• Central Pacific Financial Corp. (company) — Filer of the 10-Q report
• 20240930 (date) — End of the reporting period
• 20241030 (date) — Date of filing
• HONOLULU (location) — City of company headquarters
• HI (location) — State of company headquarters

FAQ

Filing Documents

• cpf-20240930.htm (10-Q) — 4094KB
• exhibit311-q32024093024.htm (EX-31.1) — 12KB
• exhibit312-q32024093024.htm (EX-31.2) — 12KB
• exhibit321-q32024093024.htm (EX-32.1) — 7KB
• exhibit322-q32024093024.htm (EX-32.2) — 7KB
• 0000701347-24-000039.txt ( ) — 19454KB
• cpf-20240930.xsd (EX-101.SCH) — 75KB
• cpf-20240930_cal.xml (EX-101.CAL) — 150KB
• cpf-20240930_def.xml (EX-101.DEF) — 504KB
• cpf-20240930_lab.xml (EX-101.LAB) — 997KB
• cpf-20240930_pre.xml (EX-101.PRE) — 771KB
• cpf-20240930_htm.xml (XML) — 4802KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Balance Sheets - September 30, 2024 and December 31, 2023 3 Consolidated Statements of Income - Three and nine months ended September 30, 2024 and 2023 4 Consolidated Statements of Comprehensive Income - Three and nine months ended September 30, 2024 and 2023 5 Consolidated Statements of Changes in Equity - Three and nine months ended September 30, 2024 and 2023 6 Consolidated Statements of Cash Flows - Nine months ended September 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 44 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 70 Item 4.

Controls and Procedures

Controls and Procedures 70 Part II. Other Information 71 Item 1.

Legal Proceedings

Legal Proceedings 71 Item 1A.

Risk Factors

Risk Factors 71 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 71 Item 5. Other Information 71 Item 6. Exhibits 72

Signatures

Signatures 73 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) September 30, 2024 December 31, 2023 Assets Cash and due from financial institutions $ 100,064 $ 116,181 Interest-bearing deposits in other financial institutions 226,505 406,256 Investment securities: Available-for-sale debt securities, at fair value 723,453 647,210 Held-to-maturity debt securities, at amortized cost; fair value of: $ 546,990 at September 30, 2024 and $ 565,178 at December 31, 2023 606,117 632,338 Total investment securities 1,329,570 1,279,548 Loans held for sale 1,609 1,778 Loans 5,342,609 5,438,982 Less: allowance for credit losses ( 61,647 ) ( 63,934 ) Loans, net of allowance for credit losses 5,280,962 5,375,048 Premises and equipment, net 104,575 96,184 Accrued interest receivable 23,942 21,511 Investment in unconsolidated entities 54,836 41,546 Mortgage servicing rights, net 8,513 8,696 Bank-owned life insurance 175,914 170,706 Federal Home Loan Bank of Des Moines ("FHLB") stock 6,929 6,793 Right-of-use lease assets 32,192 29,720 Other assets 69,819 88,829 Total assets $ 7,415,430 $ 7,642,796 Liabilities Deposits: Noninterest-bearing demand $ 1,838,009 $ 1,913,379 Interest-bearing demand 1,255,382 1,329,189 Savings and money market 2,336,323 2,209,733 Time 1,153,299 1,395,291 Total deposits 6,583,013 6,847,592 Long-term debt, net of unamortized debt issuance costs of $ 263 at September 30, 2024 and $ 445 at December 31, 2023 156,284 156,102 Lease liabilities 33,807 30,634 Accrued interest payable 12,980 18,948 Other liabilities 85,621 85,705 Total liabilities 6,871,705 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 September 30, 2024 and December 31, 2023 — — Common stock, no par value, authorized 185,000,000 shares; issued

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