HONOLULU, Jan. 23 /PRNewswire-FirstCall/ -- Central Pacific Financial
Corp. (NYSE: CPF), parent company of Central Pacific Bank, today reported
net income for the fourth quarter of 2006 of $18.8 million, or $0.61 per
diluted share, compared to $19.4 million, or $0.63 per diluted share
reported in the fourth quarter of 2005 and $20.6 million, or $0.67 per
diluted share reported in the third quarter of 2006. For the year ended
December 31, 2006, CPF reported net income of $79.2 million, or $2.57 per
diluted share, compared to $72.5 million, or $2.38 per diluted share in
2005.
Operating earnings, defined as the Company's net income excluding
nonrecurring merger-related expenses, net of tax, for 2006 was $79.2
million, or $2.57 per diluted share, as compared to $75.8 million, or $2.49
per diluted share in 2005. There were no nonrecurring merger-related
expenses in 2006, compared to $3.3 million, net of tax, in 2005. Net income
for the fourth quarter of 2006 reflected an after-tax charge of $0.9
million, or $0.03 per diluted share, from the previously announced
investment portfolio repositioning of $109 million in available-for-sale
investment securities, a $1.1 million tax charge, or $0.03 per diluted
share, for income tax liability adjustments, and a $0.5 million after-tax
charge, or $0.02 per diluted share, for adjustments to employee
benefit-related liabilities. The full-year net income for 2006 also
included an after-tax charge of $1.3 million, or $0.04 per diluted share,
in retirement expenses for a former senior executive recorded in the first
quarter of 2006.
Fourth Quarter Highlights
* Quarterly net income of $18.8 million.
* Loans and leases increased by $293.3 million or 8.3% from a year ago.
* Nonperforming assets to total assets improved to 0.16%, compared to
0.24% a year ago.
* Deposits increased by $202.2 million or 5.6% from a year ago.
"Central Pacific closed 2006 with another strong quarter, with loan
growth of $80.9 million, deposit growth of $62.6 million, and net income of
$18.8 million, or diluted earnings per share of $0.61," commented Clint
Arnoldus, President and Chief Executive Officer. "We are pleased that we
have achieved solid growth in loans and deposits over the past year, while
at the same time maintaining a strong credit discipline. We have also made
significant strides in our Bank Secrecy Act remediation efforts and expect
to be in full compliance by mid-year."
Earnings Highlights
Net interest income for the fourth quarter of 2006 was $53.4 million,
an increase of 2.2% over the fourth quarter of 2005 and 0.6% over the third
quarter of 2006. The year-over-year growth in net interest income was
attributable to a 6.5% increase in average interest earning assets. The net
interest margin was 4.49% for the fourth quarter of 2006 compared to 4.56%
in the third quarter of 2006 and 4.69% in the fourth quarter of 2005. The
net interest margin compression in the fourth quarter of 2006 reflects the
upward pricing of deposits and borrowings and the higher proportion of
balances in higher-rate savings and time deposits.
There was no provision for loan and lease losses in the fourth quarter
of 2006, compared to $1.0 million in the fourth quarter of 2005 and $0.3
million in the third quarter of 2006, reflecting the improvement in asset
quality over the prior year.
Other operating income totaled $9.5 million for the fourth quarter of
2006, compared to $11.5 million in the year-ago quarter and $10.5 million
in the third quarter of 2006. The decrease from the prior periods was
primarily due to the $1.5 million loss recognized on the previously
announced investment portfolio repositioning in the fourth quarter of 2006.
The comparison to the year-ago quarter also reflects declines in
residential loan sale activity. Mortgage origination activity for the
fourth quarter of 2006 increased by 23% compared to the previous quarter
but reflected a 37% decline from the year-ago quarter.
Other operating expense for the fourth quarter of 2006 was $35.7
million, compared to $32.8 million in the same quarter last year and $31.2
million in the third quarter of 2006. Fourth quarter 2006 expenses
reflected two adjustments totaling $0.9 million for certain employee
benefit accrual adjustments. Stock option expensing, reduced loan
origination cost deferrals and increases in advertising and professional
fees combined to further increase fourth quarter operating expenses, offset
by a decline in core deposit premium amortization. On a sequential-quarter
basis, salaries and employee benefits increased due to higher incentive
compensation expense and other expenses increased due in part to a third
quarter 2006 reversal of reserves for unfunded commitments.
The Company's efficiency ratio for the fourth quarter of 2006 was
53.40%, compared with 48.42% for the year-ago quarter and 47.03% for the
third quarter of 2006. The higher efficiency ratio is attributed largely to
the increase in operating expenses as discussed above and, when compared to
the prior year, to the decline in mortgage origination revenue.
The effective tax rate was 30.81% for the current quarter, compared to
35.34% in the year-ago quarter and 35.86% in the third quarter of 2006. In
the fourth quarter of 2006, the Company made high-technology investments
and energy conservation leases which resulted in $1.4 million in net
federal and state tax credits, which were partially offset by $1.1 million
in income tax liability adjustments.
Balance Sheet Highlights
Total assets increased to $5.5 billion at December 31, 2006, compared
to $5.2 billion at year-end 2005 and $5.4 billion at September 30, 2006.
Total loans and leases of $3.8 billion at December 31, 2006 increased
by $293.3 million, or 8.3%, from a year ago and by $80.9 million, or 2.1%,
from September 30, 2006. The mainland loan production offices contributed
approximately 50% of the loan growth during the fourth quarter of 2006,
while the other 50% of growth came from our Hawaii operations.
Total deposits of $3.8 billion at December 31, 2006 increased by $202.2
million, or 5.6%, from a year ago and by $62.6 million, or 1.7%, from
September 30, 2006. The increase during the fourth quarter of 2006 was
attributable to organic growth in all deposit categories, particularly
noninterest-bearing demand deposits.
Shareholders' equity of $738.1 million at December 31, 2006, increased
from $676.2 million a year ago and from $722.9 million at September 30,
2006.
Asset Quality
Net loan charge-offs in the fourth quarter of 2006 totaled $0.3
million, compared to net loan charge-offs of $0.8 million in the year-ago
period and $0.6 million in the third quarter of 2006. Loan charge-offs in
the fourth quarter of 2006 included a $1.5 million partial charge-off of a
commercial loan, the balance of which was transferred to nonaccrual status,
while loan recoveries during the quarter included $1.9 million in
commercial mortgage and commercial loan recoveries from a single borrower.
At year-end 2006, nonperforming assets totaled $9.0 million, or 0.16%
of total assets, compared to $12.6 million or 0.24% of total assets at
year-end 2005 and $8.0 million or 0.15% of total assets at September 30,
2006. Loans delinquent for 90 days or more of $0.9 million declined by
88.5% from a year ago and by 67.6% from the previous quarter. The increase
in nonperforming assets during the fourth quarter of 2006 reflects the
addition of a $3.5 million commercial loan (discussed above), offset by the
full payoff of a $2.6 million commercial mortgage loan.
The allowance for loan and lease losses as a percentage of total loans
and leases was 1.36% at December 31, 2006, compared to 1.49% a year ago and
1.40% at September 30, 2006. "Our allowance for loan and lease losses
reflects our solid asset quality and the continued economic strength in our
markets," commented Arnoldus.
Business and Earnings Outlook
Based on current and anticipated economic and business conditions,
management is forecasting diluted earnings per share for 2007 in the range
of $2.80 to $2.90.
Non-GAAP Financial Measures
This press release contains certain references to financial measures
identified as being stated on an operating basis or which adjust for or
exclude nonrecurring merger-related expenses, which are adjustments from
comparable measures calculated and presented in accordance with accounting
principles generally accepted in the United States of America ("GAAP").
These financial measures, as used herein, differ from financial measures
reported under 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 Information
Central Pacific Financial Corp. will conduct a conference call today at
4:00 p.m. Eastern Time (11:00 a.m. Hawaii Time) to discuss the quarterly
results. To participate in the conference call, please dial 1-800-817-2743
or visit the investor relations page of the Company's website at
http://investor.centralpacificbank.com. A playback of the call will be
available through January 30, 2007 by dialing 1-888-203-1112 (passcode:
9419023) and on the Company's website.
About Central Pacific Financial Corp.
Central Pacific Financial Corp. is the fourth largest financial
institution in Hawaii with more than $5.0 billion in assets. Central
Pacific Bank, its primary subsidiary, operates 38 branches and more than 90
ATMs throughout Hawaii. For additional information, please visit our
website at http://www.centralpacificbank.com.
Forward-Looking Statements
This document may contain forward-looking statements concerning
projections of revenues, income, earnings 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," "intends,"
"expects," "anticipates," "forecasts" or words of similar meaning. While we
believe 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 impact of local, national, and international economies and
events, including natural disasters, on the Company's business and
operations and on tourism, the military, and other major industries
operating within the Hawaii market; the impact of legislation affecting the
banking industry; the impact of competitive products, services, pricing,
and other competitive forces; movements in interest rates; loan delinquency
rates and changes in asset quality generally; and the price of the
Company's stock. 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. The Company does not
update any of its forward-looking statements.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights - December 31, 2006
(Unaudited)
(in thousands,
except per Three months ended Nine Months Ended
share data) December 31, % December 31, %
2006 2005 Change 2006 2005 Change
INCOME STATEMENT
Net income $18,800 $19,355 -2.9% $79,180 $72,459 9.3%
Operating
earnings(1) 18,800 19,355 -2.9% 79,180 75,789 4.5%
Per share
data:
Diluted:
Net income 0.61 0.63 -3.2% 2.57 2.38 8.0%
Operating
earnings(1) 0.61 0.63 -3.2% 2.57 2.49 3.2%
Cash
dividends 0.23 0.19 21.1% 0.88 0.73 20.5%
PERFORMANCE
RATIOS
Return on
average
assets(2) 1.39% 1.52% 1.50% 1.48%
Return on
average
assets -
adjusted
(1),(2) 1.39% 1.52% 1.50% 1.55%
Return on
average
shareholders'
equity(2) 10.22% 11.47% 11.16% 11.16%
Return on
average
shareholders'
equity -
adjusted
(1),(2) 10.22% 11.47% 11.16% 11.67%
Net income to
average
tangible
shareholders'
equity(2) 18.54% 22.83% 21.01% 22.88%
Operating
earnings to
average
tangible
shareholders'
equity
(1),(2) 18.55% 22.83% 21.01% 23.93%
Efficiency
ratio(3) 53.40% 48.42% 49.67% 49.59%
Efficiency
ratio -
adjusted
(1),(3) 53.40% 48.42% 49.67% 47.27%
Net interest
margin(2) 4.49% 4.69% 4.55% 4.63%
Dividend
payout
ratio 37.70% 29.69% 33.85% 30.17%
December 31, %
2006 2005 Change
BALANCE SHEET
Total assets $5,496,845 $5,239,139 4.9%
Loans 3,846,004 3,552,749 8.3%
Loans, net 3,793,724 3,499,813 8.4%
Deposits 3,844,483 3,642,244 5.6%
Shareholders'
equity 738,139 676,234 9.2%
Book value per
share 24.04 22.22 8.2%
Market value
per share 38.76 35.92 7.9%
Tangible equity
ratio 7.77% 6.85%
Three Months Ended Year Ended
December 31, % December 31, %
2006 2005 Change 2006 2005 Change
SELECTED
AVERAGE
BALANCES
Total
assets $5,397,587 $5,086,142 6.1% $5,271,644 $4,883,225 8.0%
Interest-
earning
assets 4,812,504 4,518,036 6.5% 4,689,967 4,307,292 8.9%
Loans,
net of
unearned
interest 3,803,169 3,491,932 8.9% 3,689,979 3,301,277 11.8%
Other
real
estate -- -- -- -- 43 -100.0%
Deposits 3,790,692 3,518,425 7.7% 3,676,063 3,428,777 7.2%
Interest-
bearing
liabil-
ities 3,973,418 3,668,171 8.3% 3,844,106 3,512,492 9.4%
Share-
holders'
equity 736,075 675,135 9.0% 709,244 648,999 9.3%
December 31, %
2006 2005 Change
NONPERFORMING
ASSETS
Nonaccrual
loans $8,958 $12,551 -28.6%
Other real
estate -- -- --
Total
nonperform-
ing assets 8,958 12,551 -28.6%
Loans
delinquent
for 90 days
or more
(still
accruing
interest) 909 7,906 -88.5%
Restructured
loans (still
accruing
interest) -- 703 -100.0%
Total
nonperform-
ing assets,
loans
delinquent
for 90 days
or more
(still
accruing
interest) and
restructured
loans (still
accruing
interest) $9,867 $21,160 -53.4%
Three months ended Year Ended
December 31, December 31,
2006 2005 2006 2005
Loan
charge-offs $2,671 $1,457 83.3% $6,270 $6,208 1.0%
Recoveries 2,340 648 261.1% 4,264 4,524 -5.7%
Net loan
charge-offs
(recov-
eries) $331 $809 -59.1% $2,006 $1,684 19.1%
Net loan
charge-offs
to average
loans(2) 0.03% 0.09% 0.05% 0.05%
December 31,
2006 2005
ASSET QUALITY
RATIOS
Nonaccrual
loans to
total loans 0.23% 0.35%
Nonperforming
assets to
total assets 0.16% 0.24%
Nonperforming
assets, loans
delinquent
for 90 days
or more
(still
accruing
interest) and
restructured
loans (still
accruing
interest) to
total loans
& other real
estate 0.26% 0.60%
Allowance for
loan and
lease losses
to total
loans and
leases 1.36% 1.49%
Allowance for
loan and
lease losses
to nonaccrual
loans 583.61% 421.77%
(1) Excludes nonrecurring merger-related expenses, net of tax
(see Reconciliation of Non-GAAP Financial Measures)
(2) Annualized
(3) Efficiency ratio is derived by dividing other operating expense before
amortization of intangible assets by net operating income (net
interest income on a fully taxable equivalent basis plus other
operating income before securities transactions).
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of 2005 Non-GAAP Financial Measures
(Unaudited)
Three Months
(Dollars in thousands, Ended Year Ended
except per share data) December 31, December 31,
2005 2005
Net income (a) $19,355 $72,459
Nonrecurring merger-related expenses,
net of tax -- 3,330
Net income, excluding nonrecurring
merger-related expenses (b) $19,355 $75,789
Basic earnings per share $0.64 $2.42
Nonrecurring merger-related expenses,
net of tax -- 0.11
Basic earnings per share, excluding
nonrecurring merger-related expenses $0.64 $2.53
Diluted earnings per share $0.63 $2.38
Nonrecurring merger-related expenses,
net of tax -- 0.11
Diluted earnings per share, excluding
nonrecurring merger-related expenses $0.63 $2.49
Return on average assets 1.52% 1.48%
Nonrecurring merger-related expenses,
net of tax -- 0.07
Return on average assets, excluding
nonrecurring merger-related expenses 1.52% 1.55%
Return on average equity 11.47% 11.16%
Nonrecurring merger-related expenses,
net of tax -- 0.51
Return on average equity, excluding
nonrecurring merger-related expenses 11.47% 11.67%
Net income to average tangible equity:
Average shareholders' equity $675,135 $648,999
Average intangible assets (336,087) (332,295)
Total tangible equity (c) $339,048 $316,704
Net income to average tangible equity
[ (a) annualized / (c) ] 22.83% 22.88%
Net income, excluding nonrecurring
merger-related expenses, to average
tangible equity [ (b) annualized / (c) ] 22.83% 23.93%
Efficiency ratio:
Net interest income on a fully taxable
equivalent basis $52,996 $199,517
Other operating income (excluding
investment securities gains (losses)) 11,346 39,452
Total operating revenue (d) $64,342 $238,969
Other operating expense before
amortization of core deposit premium (e) $31,153 $118,506
Nonrecurring merger-related expenses -- (5,545)
Total other operating expense, excluding
nonrecurring merger-related expenses (f) $31,153 $112,961
Efficiency ratio [ (e) / (d) ] 48.42% 49.59%
Efficiency ratio, excluding
nonrecurring merger-related
expenses [ (f) / (d) ] 48.42% 47.27%
Effective tax rate:
Net income before taxes (g) $29,934 $108,986
Nonrecurring merger-related expenses -- 5,545
Net income before taxes, excluding
nonrecurring merger-related expenses (h) $29,934 $114,531
Income taxes (i) $10,579 $36,527
Tax impact of nonrecurring merger-related
expenses -- 2,215
Income taxes, excluding tax impact of
nonrecurring merger-related expenses (j) $10,579 $38,742
Effective tax rate [ (i) / (g) ] 35.34% 33.52%
Effective tax rate, excluding impact of
merger-related expenses [ (j) / (h) ] 35.34% 33.83%
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
CONSOLIDATED BALANCE
SHEETS December 31, September 30, December 31,
(in thousands) 2006 2006 2005
ASSETS
Cash and due from banks $129,715 $110,554 $154,927
Interest-bearing deposits
in other banks 5,933 9,472 9,813
Federal funds sold -- -- --
Investment securities:
Held to maturity, at cost
(fair value of $64,249 at
December 31, 2006, $65,821
at September 30, 2006,
and $70,651 at
December 31, 2005) 65,204 66,918 71,843
Available for sale,
at fair value 833,154 832,255 853,442
Total investment
securities 898,358 899,173 925,285
Loans held for sale 26,669 21,742 60,538
Loans and leases 3,846,004 3,765,081 3,552,749
Less allowance for loan
and lease losses 52,280 52,611 52,936
Net loans and leases 3,793,724 3,712,470 3,499,813
Premises and equipment 77,341 76,909 72,568
Accrued interest receivable 26,269 25,631 22,006
Investment in unconsolidated
subsidiaries 12,957 11,160 12,417
Due from customers on
acceptances 453 271 530
Other real estate -- -- --
Goodwill 305,426 298,121 303,358
Core deposit premium 31,898 32,872 35,795
Mortgage servicing rights 11,640 11,794 11,820
Bank-owned life insurance 102,394 101,101 68,325
Federal Home Loan Bank stock 48,797 48,797 48,797
Other assets 25,271 18,823 13,147
Total assets $5,496,845 $5,378,890 $5,239,139
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand $661,027 $608,229 $730,952
Interest-bearing demand 438,943 433,437 442,879
Savings and money market 1,205,271 1,204,488 1,091,057
Time 1,539,242 1,535,769 1,377,356
Total deposits 3,844,483 3,781,923 3,642,244
Short-term borrowings 79,308 58,773 82,734
Long-tem debt 740,189 730,784 749,258
Bank acceptances outstanding 453 271 530
Minority interest 13,130 13,515 13,157
Other liabilities 81,143 70,686 74,982
Total liabilities 4,758,706 4,655,952 4,562,905
Shareholders' equity:
Preferred stock, no par value,
authorized 1,000,000 shares,
none issued -- -- --
Common stock, no par value;
authorized 100,000,000 shares;
issued and outstanding
30,709,389 shares at
December 31, 2006,
30,659,972 shares at
September 30, 2006, and
30,436,862 shares at
December 31, 2005 430,904 430,204 428,012
Surplus 51,756 50,612 46,432
Retained earnings 270,624 258,880 218,341
Deferred stock awards -- -- (612)
Accumulated other
comprehensive loss (15,145) (16,758) (15,939)
Total shareholders' equity 738,139 722,938 676,234
Total liabilities and
shareholders' equity $5,496,845 $5,378,890 $5,239,139
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Year Ended
Dec. 31, Sept. 30, Dec. 31, December 31,
(In thousands, except
per share data) 2006 2006 2005 2006 2005
Interest income:
Interest and
fees on loans
and leases $74,643 $72,444 $61,503 $279,246 $222,841
Interest and
dividends on
investment
securities:
Taxable interest 8,779 8,486 9,681 34,775 34,058
Tax-exempt interest 1,258 1,227 1,349 5,080 5,281
Dividends 274 153 50 538 278
Interest on deposits
in other banks 244 79 107 550 349
Interest on federal
funds sold and
securities purchased
under agreements to
resell 58 31 5 143 171
Dividends on
Federal Home
Loan Bank stock 49 -- -- 49 272
Total interest
income 85,305 82,420 72,695 320,381 263,250
Interest expense:
Interest on
deposits 22,245 19,155 11,895 71,669 38,386
Interest on
short-term
borrowings 162 1,221 699 2,197 1,858
Interest on
long-term debt 9,503 8,949 7,832 35,666 26,333
Total interest
expense 31,910 29,325 20,426 109,532 66,577
Net interest
income 53,395 53,095 52,269 210,849 196,673
Provision for loan
and lease losses -- 300 1,000 1,350 3,917
Net interest income
after provision
for loan and lease
losses 53,395 52,795 51,269 209,499 192,756
Other operating
income:
Income from fiduciary
activities 758 740 668 2,915 2,431
Service charges on
deposit accounts 3,845 3,570 3,501 14,408 11,782
Other service
charges and fees 3,195 2,994 2,946 12,188 11,234
Equity in earnings
of unconsolidated
subsidiaries 155 90 226 576 767
Fees on foreign
exchange 164 207 193 765 787
Investment
securities
gains (losses) (1,491) -- 127 (1,510) 1,550
Income from
bank-owned life
insurance 1,195 1,085 535 3,989 2,205
Loan placement fees 511 464 611 1,767 1,780
Gains on sales of loans 730 680 1,874 4,863 4,913
Other 425 715 792 3,195 3,553
Total other
operating income 9,487 10,545 11,473 43,156 41,002
Other operating
expense:
Salaries and
employee benefits 19,083 17,451 16,917 73,211 64,963
Net occupancy 2,244 2,399 2,106 9,218 9,666
Equipment 1,240 1,171 1,152 4,864 4,873
Amortization of core
deposit premium 975 974 1,655 3,897 6,266
Communication expense 1,080 1,186 1,074 4,642 4,174
Legal and professional
services 2,401 1,985 2,054 8,575 8,014
Computer software
expense 862 716 577 2,818 2,798
Advertising expense 780 515 427 2,569 2,347
Other 7,045 4,819 6,846 22,369 21,671
Total other
operating expense 35,710 31,216 32,808 132,163 124,772
Income before
income taxes 27,172 32,124 29,934 120,492 108,986
Income taxes 8,372 11,521 10,579 41,312 36,527
Net income $18,800 $20,603 $19,355 $79,180 $72,459
Per share data:
Basic earnings
per share $0.61 $0.67 $0.64 $2.60 $2.42
Diluted earnings
per share 0.61 0.67 0.63 2.57 2.38
Cash dividends
declared 0.23 0.23 0.19 0.88 0.73
Basic weighted
average shares
outstanding (000's) 30,645 30,532 30,409 30,511 29,956
Diluted weighted
average shares
outstanding (000's) 30,933 30,838 30,930 30,827 30,487
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates
(Taxable Equivalent)
Three Months Ended Three Months Ended
December 31, 2006 December 31, 2005
Average Average
Average Yield/ Average Yield/
Balance Rate Interest Balance Rate Interest
Assets:
Interest
earning
assets:
Interest-
bearing
deposits in
other banks 18,813 5.19% 244 11,805 3.63% 107
Federal funds
sold &
securities
purchased
under
agreements
to resell 4,353 5.33% 58 499 4.01% 5
Taxable
investment
securities,
excluding
valuation
allowance 796,725 4.55% 9,053 828,668 4.70% 9,731
Tax-exempt
investment
securities,
excluding
valuation
allowance 140,647 5.50% 1,935 136,335 6.09% 2,075
Loans, net
of unearned
income 3,803,169 7.85% 74,643 3,491,932 7.05% 61,503
Other
interest
earning
assets 48,797 0.40% 49 48,797 0.00% --
Total
interest
earning
assets 4,812,504 7.15% 85,982 4,518,036 6.50% 73,421
Nonearning
assets 585,083 568,106
Total
assets 5,397,587 5,086,142
Liabilities &
Stockholders'
Equity:
Interest-bearing
liabilities:
Interest-
bearing
demand
deposits 428,395 0.13% 138 431,461 0.14% 152
Savings and
money
market
deposits 1,224,906 1.96% 6,017 1,106,871 0.91% 2,506
Time
deposits
under
$100,000 619,302 3.10% 4,794 555,749 2.24% 3,113
Time
deposits
$100,000
and over 930,203 4.86% 11,296 762,326 3.21% 6,124
Short-term
borrowings 12,019 5.39% 162 69,241 4.04% 699
Long-term
debt 758,593 5.01% 9,503 742,523 4.22% 7,832
Total
interest-
bearing
liabil-
ities 3,973,418 3.21% 31,910 3,668,171 2.23% 20,426
Noninterest-
bearing
deposits 587,886 662,018
Other
liabilities 100,208 80,818
Stockholders'
equity 736,075 675,135
Total
liabilities &
stockholders'
equity 5,397,587 5,086,142
Net interest
income 54,072 52,995
Net interest
margin 4.49% 4.69%
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates
(Taxable Equivalent)
Year Ended Year Ended
December 31, 2006 December 31, 2005
Average Average
Average Yield/ Average Yield/
Balance Rate Interest Balance Rate Interest
Assets:
Interest
earning
assets:
Interest-
bearing
deposits in
other banks 11,919 4.61% 550 13,205 2.64% 349
Federal funds
sold &
securities
purchased
under
agreements
to resell 2,880 4.97% 143 5,956 2.87% 171
Taxable
investment
securities,
excluding
valuation
allowance 799,583 4.42% 35,313 807,216 4.25% 34,336
Tax-exempt
investment
securities,
excluding
valuation
allowance 136,809 5.71% 7,815 130,889 6.21% 8,125
Loans, net
of unearned
income 3,689,979 7.57% 279,246 3,301,277 6.75% 222,841
Other
interest
earning
assets 48,797 0.10% 49 48,749 0.56% 272
Total
interest
earning
assets 4,689,967 6.89% 323,116 4,307,292 6.18% 266,094
Nonearning
assets 581,677 575,933
Total
assets 5,271,644 4,883,225
Liabilities &
Stockholders'
Equity:
Interest-bearing
liabilities:
Interest-
bearing
demand
deposits 426,828 0.13% 566 429,798 0.17% 730
Savings and
money
market
deposits 1,153,651 1.53% 17,684 1,131,964 0.69% 7,859
Time
deposits
under
$100,000 590,335 2.84% 16,750 548,043 2.00% 10,953
Time
deposits
$100,000
and over 876,513 4.18% 36,669 684,938 2.75% 18,844
Short-term
borrowings 41,401 5.31% 2,197 56,757 3.27% 1,858
Long-term
debt 755,378 4.72% 35,666 660,992 3.98% 26,333
Total
interest-
bearing
liabil-
ities 3,844,106 2.85% 109,532 3,512,492 1.90% 66,577
Noninterest-
bearing
deposits 628,736 634,035
Other
liabilities 89,558 87,699
Stockholders'
equity 709,244 648,999
Total
liabilities &
stockholders'
equity 5,271,644 4,883,225
Net interest
income 213,584 199,517
Net interest
margin 4.55% 4.63%
SOURCE Central Pacific Financial Corp.
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Related links:
http://www.centralpacificbank.com
CONTACT:
Investors, David Morimoto, SVP & Treasurer,
+1-808-544-0627, david.morimoto@centralpacificbank.com, or Media,
Ann Takiguchi Marcos, VP & PR/Communications Manager,
+1-808-544-0685, ann.takiguchi@centralpacificbank.com, both of
Central Pacific Financial Corp.
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