HONOLULU, Oct. 24 /PRNewswire-FirstCall/ -- Central Pacific Financial
Corp. (NYSE: CPF), parent company of Central Pacific Bank, today reported net
income for the third quarter of 2006 of $20.6 million, or $0.67 per diluted
share, compared to $18.0 million, or $0.58 per diluted share reported in the
third quarter of 2005 and $20.4 million or $0.66 per diluted share reported in
the second quarter of 2006. For the first nine months of 2006, CPF reported
net income of $60.4 million, or $1.96 per diluted share, compared to
$53.1 million, or $1.75 per diluted share, in the same period in 2005.
Operating earnings, defined as the Company's net income excluding
nonrecurring merger-related expenses, net of tax, for the third quarter of
2006 was $20.6 million, or $0.67 per diluted share, as compared to the
$20.1 million, or $0.65 per diluted share, recorded during the same period in
2005. There were no nonrecurring merger-related expenses in the third quarter
or first nine months of 2006, compared to $2.1 million, net of tax, in the
third quarter of 2005 and $3.3 million, net of tax, in the first nine months
of 2005. Year-to-date net income for 2006 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.
Third Quarter Highlights
* Record quarterly net income of $20.6 million.
* Loans and leases increased by $398.5 million or 11.8% from a year ago.
* Nonperforming assets to total assets improved to 0.15%, compared
to 0.28% a year ago.
* Deposits, excluding brokered deposits, increased by $271.7 million
or 7.9% from a year ago.
* Net interest margin held steady at 4.56% compared to the second
quarter of 2006.
"Central Pacific posted another quarter of record earnings in the third
quarter of 2006, with net income of $20.6 million and diluted earnings per
share of $0.67," 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 and a stable net interest margin."
Financial Highlights
Net interest income for the third quarter of 2006 was $53.1 million, an
increase of 7.1% over the third quarter of last year and 1.8% over the second
quarter of 2006. The year-over-year growth in net interest income was
attributable to a 7.9% increase in average interest earning assets, with the
increase in interest and fees on loans outpacing the increase in funding
costs. The net interest margin was 4.56% for the third quarter of 2006, which
was in line with the second quarter of 2006. When compared to the third
quarter of 2005, the net interest margin declined by four basis points as a
result of the higher proportion of balances in relatively higher-rate time
deposits and borrowings.
Asset quality remains strong, with nonperforming assets of $8.0 million
reflecting a 42.9% decrease from year-ago levels, and loans delinquent for
90 days or more of $2.8 million declining by 72.5% from a year ago. Provision
for loan and lease losses in the third quarter of 2006 was $0.3 million,
compared to $1.0 million in the third quarter of 2005 and 0.5 million in the
second quarter of 2006, reflecting the improvement in asset quality.
Other operating income totaled $10.5 million for the third quarter of
2006, compared to $11.5 million in the year-ago quarter and $11.0 million in
the second quarter of 2006. The decrease from the prior periods was primarily
due to declines in residential loan sale activity. Mortgage origination
activity for the third quarter of 2006 declined by approximately 20% compared
to the previous quarter and is expected to remain at the current level for the
remainder of 2006.
Other operating expense for the third quarter of 2006 was $31.2 million,
compared to $32.3 million in the same quarter last year and $31.5 million in
the second quarter of 2006. Excluding the impact of nonrecurring merger-
related expenses incurred in the third quarter of 2005, other operating
expense for the third quarter of 2006 increased by 8.3%, reflecting the impact
of the Central Pacific HomeLoans acquisition and the expensing of stock
options, partially offset by a decrease in core deposit premium amortization.
The merger-related expenses reflected in the third quarter of 2005 included
$2.7 million in severance and retention expenses, reported in salaries and
employee benefits, and $0.8 million for an additional FDIC deposit insurance
assessment, reported in other expense.
The Company's efficiency ratio for the third quarter of 2006 was 47.03%,
compared with 49.68% for the year-ago quarter and 47.76% for the second
quarter of 2006.
The effective tax rate was 35.86% for the current quarter, compared to
35.05% in the year-ago quarter and 34.38% in the second quarter of 2006. In
the second quarter of 2006, the Company recognized $0.5 million in income tax
benefit in connection with the resolution of an Internal Revenue Service
audit. The Company expects its effective tax rate to approximate 36% in the
fourth quarter.
Asset Quality
Net loan charge-offs in the third quarter of 2006 totaled $0.6 million,
compared to net loan recoveries of $0.1 million in the year-ago period and net
loan charge-offs of $0.7 million in the second quarter of 2006.
At September 30, 2006, nonperforming assets totaled $8.0 million, or 0.15%
of total assets, compared to $14.0 million or 0.28% of total assets at
September 30, 2005 and $10.0 million or 0.19% of total assets at June 30,
2006. The decrease in nonperforming assets during the third quarter of 2006
reflects the payoff of a $1.9 million commercial mortgage loan.
The allowance for loan and lease losses as a percentage of total loans and
leases was 1.40% at September 30, 2006, compared to 1.57% a year ago and 1.43%
at June 30, 2006. "Our allowance for loan and lease losses reflects our solid
asset quality and the continued economic strength in our markets," commented
Arnoldus. "While we are still in the process of assessing the full impact of
the October 15th earthquake in Hawaii, there are no indications at this time
of any significant damage or losses sustained by our customers or collateral
properties."
Balance Sheet Analysis
Total assets increased to $5.4 billion at September 30, 2006, compared to
$5.0 billion at September 30, 2005 and $5.3 billion at June 30, 2006.
Total loans and leases of $3.8 billion at September 30, 2006 increased by
$398.5 million, or 11.8%, from a year ago and by $75.8 million, or 2.1%, from
June 30, 2006. Our mainland loan production offices contributed approximately
three-fourths of our loan growth during the third quarter of 2006, while
one-fourth of our growth came from our Hawaii lending operations.
Total deposits of $3.8 billion at September 30, 2006 increased by
$311.1 million, or 9.0%, from a year ago and by $117.8 million, or 3.2%, from
June 30, 2006. The increase during the third quarter of 2006 was primarily
due to organic growth in all deposit categories, except noninterest-bearing
demand deposits, and brokered deposits of $43.4 million.
Shareholders' equity of $722.9 million at September 30, 2006, increased
from $665.0 million a year ago and from $698.8 million at June 30, 2006.
Business and Earnings Outlook
Based on current economic and business conditions, management is
forecasting diluted earnings per share for 2006 in the range of $2.62 to
$2.67.
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 (10:00 a.m. Hawaii Time) to discuss the quarterly
results. To participate in the conference call, please dial 1-888-802-2268 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 October 31, 2006 by dialing 1-888-203-1112
(passcode: 6228144) 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 - September 30, 2006
(Unaudited)
(in thousands,
except per Three months ended Nine Months Ended
share data) September 30, % September 30, %
2006 2005 Change 2006 2005 Change
INCOME
STATEMENT
Net income $20,603 $17,997 14.5% $60,380 $53,104 13.7%
Operating
earnings(1) 20,603 20,116 2.4% 60,380 56,434 7.0%
Per share
data:
Diluted:
Net income 0.67 0.58 15.5% 1.96 1.75 12.0%
Operating
earnings(1) 0.67 0.65 3.1% 1.96 1.86 5.4%
Cash
dividends 0.23 0.19 21.1% 0.65 0.54 20.4%
PERFORMANCE
RATIOS
Return on
average
assets(2) 1.56% 1.46% 1.54% 1.47%
Return on
average
assets -
adjusted
(1),(2) 1.56% 1.63% 1.54% 1.56%
Return on
average
shareholders'
equity(2) 11.52% 10.79% 11.50% 11.06%
Return on
average
shareholders'
equity -
adjusted
(1),(2) 11.52% 12.06% 11.50% 11.75%
Net income
to average
tangible
shareholders'
equity(2) 21.44% 21.34% 21.92% 22.90%
Operating
earnings
to average
tangible
shareholders'
equity
(1),(2) 21.44% 23.85% 21.92% 24.34%
Efficiency
ratio(3) 47.03% 49.68% 48.41% 50.02%
Efficiency
ratio -
adjusted
(1),(3) 47.03% 43.96% 48.41% 46.85%
Net interest
margin(2) 4.56% 4.60% 4.58% 4.61%
Dividend payout
ratio 34.33% 32.20% 32.83% 30.34%
September 30, %
2006 2005 Change
BALANCE SHEET
Total assets $5,378,890 $5,041,562 6.7%
Loans 3,765,081 3,366,620 11.8%
Loans, net 3,712,470 3,313,875 12.0%
Deposits 3,781,923 3,470,797 9.0%
Shareholders'
equity 722,938 665,008 8.7%
Book value
per share 23.58 21.87 7.8%
Market value
per share 36.58 35.18 4.0%
Tangible
equity ratio 7.76% 6.97%
Three Months Ended Nine Months Ended
September 30, % September 30, %
2006 2005 Change 2006 2005 Change
SELECTED
AVERAGE
BALANCES
Total
assets $5,287,570 $4,933,351 7.2% $5,229,202 $4,814,843 8.6%
Interest-
earning
assets 4,713,773 4,367,604 7.9% 4,648,673 4,236,272 9.7%
Loans, net
of unearned
interest 3,722,846 3,301,377 12.8% 3,651,835 3,237,027 12.8%
Other real
estate -- -- -- -- 57 -100.0%
Deposits 3,666,316 3,468,275 5.7% 3,637,433 3,398,566 7.0%
Interest-
bearing
liabil-
ities 3,874,087 3,538,449 9.5% 3,800,528 3,460,028 9.8%
Share-
holders'
equity 715,312 667,087 7.2% 700,202 640,191 9.4%
September 30, %
2006 2005 Change
NONPERFORMING
ASSETS
Nonaccrual loans $8,024 $14,044 -42.9%
Other real estate -- -- --
Total
nonperforming
assets 8,024 14,044 -42.9%
Loans delinquent
for 90 days
or more (still
accruing interest) 2,809 10,199 -72.5%
Restructured loans
(still accruing
interest) -- 705 -100.0%
Total nonperforming
assets, loans
delinquent for
90 days or more
(still accruing
interest) and
restructured
loans (still
accruing interest) $10,833 $24,948 -56.6%
Three Months Ended Nine Months Ended
September 30, % September 30, %
2006 2005 Change 2006 2005 Change
Loan
charge-offs $1,266 $1,341 -5.6% $3,599 $4,751 -24.2%
Recoveries 663 1,429 -53.6% 1,924 3,876 -50.4%
Net loan
charge-offs
(recoveries) $603 $(88) -785.2% $1,675 $875 91.4%
Net loan
charge-offs
to average
loans(2) 0.06% -0.01% 0.06% 0.04%
September 30,
2006 2005
ASSET QUALITY
RATIOS
Nonaccrual loans
to total loans 0.21% 0.42%
Nonperforming assets
to total assets 0.15% 0.28%
Nonperforming assets,
loans delinquent for
90 days or more (still
accruing interest) and
restructured loans
(still accruing interest)
to total loans & other
real estate 0.29% 0.74%
Allowance for loan and
lease losses to total
loans and leases 1.40% 1.57%
Allowance for loan and
lease losses to
nonaccrual loans 655.67% 375.57%
(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 Non-GAAP Financial Measures
(Unaudited)
Three Months Nine Months
(Dollars in thousands, Ended Ended
except per share data) September 30, 2005 September 30, 2005
Net income (a) $17,997 $53,104
Nonrecurring merger-related
expenses, net of tax 2,119 3,330
Net income, excluding nonrecurring
merger-related expenses (b) $20,116 $56,434
Basic earnings per share $0.59 $1.78
Nonrecurring merger-related
expenses, net of tax 0.07 0.11
Basic earnings per share,
excluding nonrecurring
merger-related expenses $0.66 $1.89
Diluted earnings per share $0.58 $1.75
Nonrecurring merger-related
expenses, net of tax 0.07 0.11
Diluted earnings per share,
excluding nonrecurring
merger-related expenses $0.65 $1.86
Return on average assets 1.46% 1.47%
Nonrecurring merger-related
expenses, net of tax 0.17 0.09
Return on average assets,
excluding nonrecurring
merger-related expenses 1.63% 1.56%
Return on average equity 10.79% 11.06%
Nonrecurring merger-related
expenses, net of tax 1.27 0.69
Return on average equity,
excluding nonrecurring
merger-related expenses 12.06% 11.75%
Net income to average
tangible equity:
Average shareholders' equity $667,087 $640,191
Average intangible assets (329,728) (331,017)
Total tangible equity (c) $337,359 $309,174
Net income to average tangible
equity [ (a) annualized / (c) ] 21.34% 22.90%
Net income, excluding nonrecurring
merger-related expenses, to
average tangible equity
[ (b) annualized / (c) ] 23.85% 24.34%
Efficiency ratio:
Net interest income on a fully
taxable equivalent basis $50,272 $146,521
Other operating income
(excluding investment
securities gains (losses)) 11,497 28,106
Total operating revenue (d) $61,769 $174,627
Other operating expense before
amortization of core deposit
premium (e) $30,685 $87,353
Nonrecurring merger-related
expenses (3,529) (5,545)
Total other operating
expense, excluding
nonrecurring
merger-related expenses (f) $27,156 $81,808
Efficiency ratio [ (e) / (d) ] 49.68% 50.02%
Efficiency ratio, excluding
nonrecurring merger-related
expenses [ (f) / (d) ] 43.96% 46.85%
Effective tax rate:
Net income before taxes (g) $27,707 $79,052
Nonrecurring merger-related
expenses 3,529 5,545
Net income before taxes,
excluding nonrecurring
merger-related expenses (h) $31,236 $84,597
Income taxes (i) $9,710 $25,948
Tax impact of nonrecurring
merger-related expenses 1,410 2,215
Income taxes, excluding tax
impact of nonrecurring
merger-related expenses (j) $11,120 $28,163
Effective tax rate [ (i) / (g) ] 35.05% 32.82%
Effective tax rate, excluding
impact of merger-related
expenses [ (j) / (h) ] 35.60% 33.29%
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
CONSOLIDATED BALANCE SHEETS
(in thousands, except September 30, June 30, September 30,
per share data) 2006 2006 2005
ASSETS
Cash and due from banks $110,554 $101,569 $111,223
Interest-bearing deposits
in other banks 9,472 1,177 15,971
Federal funds sold -- -- --
Investment securities:
Held to maturity, at cost
(fair value of $65,821
at September 30, 2006,
$66,903 at June 30, 2006,
and $76,515 at
September 30, 2005) 66,918 68,641 77,418
Available for sale, at fair
value 832,255 825,682 871,942
Total investment
securities 899,173 894,323 949,360
Loans held for sale 21,742 24,763 53,970
Loans and leases 3,765,081 3,689,287 3,366,620
Less allowance for loan
and lease losses 52,611 52,914 52,745
Net loans and leases 3,712,470 3,636,373 3,313,875
Premises and equipment 76,909 76,368 72,982
Accrued interest receivable 25,631 23,474 20,787
Investment in unconsolidated
subsidiaries 11,160 11,362 12,298
Due from customers on
acceptances 271 383 202
Other real estate -- -- --
Goodwill 298,121 297,251 299,232
Core deposit premium 32,872 33,846 37,450
Mortgage servicing rights 11,794 11,873 11,848
Bank-owned life insurance 101,101 100,021 67,799
Federal Home Loan Bank stock 48,797 48,797 48,797
Other assets 18,823 29,232 25,768
Total assets $5,378,890 $5,290,812 $5,041,562
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits:
Noninterest-bearing demand $608,229 $673,784 $659,699
Interest-bearing demand 433,437 410,296 432,530
Savings and money market 1,204,488 1,169,874 1,136,418
Time 1,535,769 1,410,206 1,242,150
Total deposits 3,781,923 3,664,160 3,470,797
Short-term borrowings 58,773 104,897 114,448
Long-tem debt 730,784 742,907 709,685
Bank acceptances outstanding 271 383 202
Minority interest 13,515 13,143 13,541
Other liabilities 70,686 66,504 67,881
Total liabilities 4,655,952 4,591,994 4,376,554
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
30,659,972 shares at
September 30, 2006,
30,480,230 shares at
June 30, 2006, and
30,412,482 shares at
September 30, 2005 430,204 427,747 427,458
Surplus 50,612 49,723 46,362
Retained earnings 258,880 245,322 204,765
Deferred stock awards -- -- (280)
Accumulated other
comprehensive loss (16,758) (23,974) (13,297)
Total shareholders'
equity 722,938 698,818 665,008
Total liabilities and
shareholders' equity $5,378,890 $5,290,812 $5,041,562
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, Quarter to Date Nine Months Ended
except per Sept. 30, June 30, Sept. 30, Sept. 30,
share data) 2006 2006 2005 2006 2005
Interest income:
Interest and fees
on loans and leases $72,444 $67,606 $56,366 $204,603 $161,338
Interest and dividends
on investment
securities:
Taxable interest 8,486 8,947 8,980 25,996 24,377
Tax-exempt interest 1,227 1,277 1,297 3,822 3,932
Dividends 153 8 93 264 228
Interest on deposits
in other banks 79 54 37 306 242
Interest on federal
funds sold and
securities purchased
under agreements to
resell 31 2 87 85 166
Dividends on Federal
Home Loan Bank stock -- -- -- -- 272
Total interest
income 82,420 77,894 66,860 235,076 190,555
Interest expense:
Interest on deposits 19,155 16,464 9,969 49,424 26,491
Interest on short-term
borrowings 1,221 583 319 2,035 1,159
Interest on long-term
debt 8,949 8,680 6,998 26,163 18,501
Total interest
expense 29,325 25,727 17,286 77,622 46,151
Net interest income 53,095 52,167 49,574 157,454 144,404
Provision for loan
and lease losses 300 525 1,000 1,350 2,917
Net interest income
after provision
for loan and lease
losses 52,795 51,642 48,574 156,104 141,487
Other operating income:
Income from fiduciary
activities 740 740 649 2,157 1,763
Service charges on
deposit accounts 3,570 3,457 3,383 10,563 8,281
Other service charges
and fees 2,994 2,995 2,915 8,993 8,288
Equity in earnings of
unconsolidated
subsidiaries 90 147 251 421 541
Fees on foreign exchange 207 212 188 601 594
Investment securities
gains (losses) -- (19) (23) (19) 1,423
Income from bank-owned
life insurance 1,085 785 522 2,794 1,670
Loan placement fees 464 494 738 1,256 1,169
Gains on sales of loans 680 1,115 1,617 4,133 3,039
Other 715 1,034 1,234 2,770 2,761
Total other operating
income 10,545 10,960 11,474 33,669 29,529
Other operating expense:
Salaries and employee
benefits 17,451 17,615 17,594 54,128 48,046
Net occupancy 2,399 2,301 2,516 6,974 7,560
Equipment 1,171 1,280 1,196 3,624 3,721
Amortization of core
deposit premium 974 974 1,656 2,922 4,611
Communication expense 1,186 1,208 947 3,562 3,100
Legal and professional
services 1,985 2,323 1,600 6,174 5,960
Computer software expense 716 647 553 1,956 2,221
Advertising expense 515 528 662 1,789 1,920
Other 4,819 4,582 5,617 15,324 14,825
Total other
operating expense 31,216 31,458 32,341 96,453 91,964
Income before income
taxes 32,124 31,144 27,707 93,320 79,052
Income taxes 11,521 10,706 9,710 32,940 25,948
Net income $20,603 $20,438 $17,997 $60,380 $53,104
Per share data:
Basic earnings
per share $0.67 $0.67 $0.59 $1.98 $1.78
Diluted earnings
per share 0.67 0.66 0.58 1.96 1.75
Cash dividends declared 0.23 0.21 0.19 0.65 0.54
Basic weighted
average shares
outstanding (000's) 30,532 30,466 30,401 30,465 29,804
Diluted weighted
average shares
outstanding (000's) 30,838 30,783 30,836 30,790 30,266
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates
(Taxable Equivalent)
Three Months Ended Three Months Ended
September 30, 2006 September 30, 2005
Average Average
Average Yield/ Average Yield/
(in thousands) Balance Rate Interest Balance Rate Interest
Assets:
Interest earning
assets:
Interest-bearing
deposits in
other banks $6,537 4.83% $79 $5,176 2.86% $37
Federal funds
sold &
securities
purchased under
agreements
to resell 2,332 5.32% 31 10,255 3.39% 87
Investment
securities
(1)(2) 933,261 4.51% 10,527 1,001,998 4.42% 11,068
Loans, net of
unearned
income(3) 3,722,846 7.78% 72,444 3,301,377 6.83% 56,366
Federal Home
Loan Bank
stock 48,797 -- -- 48,797 -- --
Total
interest
earning
assets 4,713,773 7.05% 83,081 4,367,603 6.19% 67,558
Nonearning
assets 573,797 565,748
Total
assets $5,287,570 $4,933,351
Liabilities &
Stockholders'
Equity:
Interest-bearing
liabilities:
Interest-
bearing
demand
deposits $424,611 0.13% $136 $430,737 0.14% $156
Savings and
money market
deposits 1,170,817 1.70% 4,969 1,166,751 0.75% 2,196
Time deposits
under
$100,000 578,530 3.04% 4,392 534,561 2.00% 2,670
Time deposits
$100,000
and over 878,472 4.40% 9,658 687,811 2.88% 4,947
Short-term
borrowings 85,843 5.69% 1,221 29,804 4.28% 319
Long-term debt 735,814 4.86% 8,949 688,784 4.06% 6,998
Total
interest-
bearing
liabil-
ities 3,874,087 3.03% 29,325 3,538,448 1.95% 17,286
Noninterest-
bearing
deposits 613,886 648,414
Other
liabilities 84,285 79,402
Stockholders'
equity 715,312 667,087
Total
liabilities
&
stockholders'
equity $5,287,570 $4,933,351
Net interest
income $53,756 $50,272
Net interest
margin 4.56% 4.60%
(1) At amortized cost.
(2) Includes taxable equivalent basis adjustment based upon a statutory
rate of 35%.
(3) Includes nonaccrual loans.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates
(Taxable Equivalent)
Nine Months Ended Nine Months Ended
September 30, 2006 September 30, 2005
Average Average
Average Yield/ Average Yield/
(in thousands) Balance Rate Interest Balance Rate Interest
Assets:
Interest earning
assets:
Interest-bearing
deposits in
other banks $9,595 4.25% $306 $13,677 2.36% $242
Federal funds
sold &
securities
purchased under
agreements
to resell 2,384 4.75% 85 7,795 2.84% 166
Investment
securities
(1)(2) 936,062 4.58% 32,140 929,040 4.40% 30,654
Loans, net of
unearned
income(3) 3,651,835 7.47% 204,603 3,237,027 6.65% 161,338
Federal Home
Loan Bank
stock 48,797 -- -- 48,733 0.74% 272
Total
interest
earning
assets 4,648,673 6.80% 237,134 4,236,272 6.06% 192,672
Nonearning
assets 580,529 578,571
Total
assets $5,229,202 $4,814,843
Liabilities &
Stockholders'
Equity:
Interest-bearing
liabilities:
Interest-
bearing
demand
deposits $426,299 0.13% $428 $429,238 0.18% $578
Savings and
money market
deposits 1,129,638 1.38% 11,667 1,140,420 0.63% 5,353
Time deposits
under
$100,000 580,574 2.75% 11,956 545,445 1.92% 7,840
Time deposits
$100,000
and over 858,420 3.94% 25,373 658,858 2.57% 12,720
Short-term
borrowings 51,302 5.29% 2,035 52,550 2.94% 1,159
Long-term debt 754,295 4.62% 26,163 633,517 3.89% 18,501
Total
interest-
bearing
liabil-
ities 3,800,528 2.72% 77,622 3,460,028 1.78% 46,151
Noninterest-
bearing
deposits 642,502 624,605
Other
liabilities 85,970 90,019
Stockholders'
equity 700,202 640,191
Total
liabilities
&
stockholders'
equity $5,229,202 $4,814,843
Net interest
income $159,512 $146,521
Net interest
margin 4.58% 4.61%
(1) At amortized cost.
(2) Includes taxable equivalent basis adjustment based upon a statutory
rate of 35%.
(3) Includes nonaccrual loans.
SOURCE Central Pacific Financial Corp.
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.