Financial Performance - Net income reached $18 million with diluted EPS of $0.64 in 1Q 2021[4] - Loan growth increased by $174 million, a 3.5% rise[4] - Core deposit growth showed a substantial increase of $410 million, representing an 8% growth[4] - The actual net interest margin was 3.19%, with a normalized margin of 3.12% excluding PPP impacts[4, 6] - The efficiency ratio stood at 62.5%[4] PPP Program Impact - The company funded $292.7 million in PPP loans during Round 3, covering approximately 3,600 loans[7] - In Rounds 1 and 2, the company funded $558.9 million across roughly 7,200 loans[7] - Forgiveness and paydowns to date for Rounds 1 and 2 PPP loans totaled $233.5 million[7] - The net balance of PPP loans at the end of the quarter was $319.6 million for Rounds 1 & 2 and $278.2 million for Round 3[7] Loan Portfolio & Credit Quality - Total loan portfolio outstanding balance as of March 31, 2021, was $5,138 million[17] - Paycheck Protection Program loans accounted for $598 million, representing 11% of the total loan portfolio[16, 19] - Loan payment deferrals have decreased to $39.5 million, which is less than 1% of total loans[24]

Central Pacific Financial Corp. (NYSE:CPF) Q1 2021 Earnings Conference Call April 28, 2021 1:00 PM ET Company Participants David Morimoto - EVP and CFO Paul Yonamine - Chairman and CEO Catherine Ngo - President Arnold Martines - EVP and CBO Anna Hu - EVP and CCO Conference Call Participants David Feaster - Raymond James Jackie Bohlen - KBW Andrew Liesch - Piper Sandler Laurie Hunsicker - Compass Point Operator Good afternoon, ladies and gentlemen, thank you for standing by, and welcome to Central Pacific Fi ...

Part I [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201%2E%20Financial%20Statements%20%28Unaudited%29) This section presents Central Pacific Financial Corp.'s unaudited consolidated financial statements, including balance sheets, income, comprehensive income, equity, and cash flow statements, with detailed notes for Q1 2021 and comparative periods [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$6.98 billion** by March 31, 2021, driven by growth in loans and deposits, while total equity slightly decreased Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$6,979,265** | **$6,594,583** | | Total Loans, net | $5,056,296 | $4,880,844 | | Total Investment Securities | $1,217,776 | $1,183,960 | | **Total Liabilities** | **$6,436,352** | **$6,047,850** | | Total Deposits | $6,208,950 | $5,796,118 | | **Total Equity** | **$542,913** | **$546,733** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q1 2021 significantly increased to **$18.0 million** from **$8.3 million** year-over-year, primarily due to a credit to the provision for credit losses and growth in net interest income Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Interest Income | $49,804 | $47,830 | | Provision for Credit Losses | ($821) | $11,127 | | **Net Income** | **$18,038** | **$8,326** | | **Diluted Earnings Per Share** | **$0.64** | **$0.29** | | Cash Dividends Declared | $0.23 | $0.23 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was **$19.7 million**, while investing activities used **$249.1 million**, and financing activities provided **$385.2 million**, resulting in a **$155.8 million** net increase in cash Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $19,679 | $31,245 | | Net Cash Used in Investing Activities | ($249,067) | ($118,025) | | Net Cash Provided by Financing Activities | $385,212 | $76,801 | | **Net Increase (Decrease) in Cash** | **$155,824** | **($9,979)** | [Notes to Consolidated Financial Statements (Unaudited)](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section provides detailed explanations of the company's accounting policies and financial data, covering topics such as the impact of COVID-19, investment securities, loans, ACL, and fair value measurements - The company adopted ASU 2016-13 (CECL) on January 1, 2020, materially changing the methodology for estimating the **allowance for credit losses**[222](index=222&type=chunk) - The company applies Section 4013 of the CARES Act, suspending requirements to classify certain COVID-19 related loan modifications as **Troubled Debt Restructurings (TDRs)**[60](index=60&type=chunk) - The company's **Allowance for Credit Losses (ACL)** methodology incorporates a one-year reasonable and supportable forecast period, reverting to historical loss information over a one-year period[65](index=65&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%202%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Q1 2021 financial performance, highlighting increased net income driven by a credit to the provision for credit losses, the impact of the COVID-19 pandemic, and details on operations, financial condition, capital, and liquidity management [Financial Summary](index=49&type=section&id=Financial%20Summary) Net income for Q1 2021 reached **$18.0 million** or **$0.64** per diluted share, primarily driven by a **$0.8 million** credit to the provision for credit losses Key Performance Metrics | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Income | $18.0 million | $8.3 million | | Diluted EPS | $0.64 | $0.29 | | Return on average assets | 1.07% | 0.55% | | Return on average shareholders' equity | 13.07% | 6.21% | - The company recorded a **$0.8 million** credit to the provision for credit losses in Q1 2021, contrasting with an **$11.1 million** provision in Q1 2020[227](index=227&type=chunk) [COVID-19 Pandemic](index=49&type=section&id=COVID-19%20Pandemic) The COVID-19 pandemic continues to impact Hawaii's economy, but conditions are improving with declining unemployment and a significant reduction in loan deferrals, while the company actively participates in PPP and manages operations - Loans on active payment forbearance or deferral significantly declined to **$39.5 million** (**0.8% of total loans**) as of March 31, 2021, from **$120.2 million** (**2.4% of total loans**) as of December 31, 2020[245](index=245&type=chunk)[329](index=329&type=chunk) - The company actively participated in the SBA's Paycheck Protection Program (PPP), funding over **7,200 loans** for **$558 million** in the first two rounds and over **3,600 loans** for **$292 million** in Q1 2021[262](index=262&type=chunk)[263](index=263&type=chunk) - Hawaii's unemployment rate was **9.0%** in March 2021, a significant decrease from its **21.9%** peak in April/May 2020[241](index=241&type=chunk)[286](index=286&type=chunk) [Results of Operations](index=56&type=section&id=Results%20of%20Operations) Net interest income increased to **$49.9 million** despite net interest margin compression, driven by PPP fees and lower deposit costs, while other operating income rose due to mortgage banking, and operating expenses increased, impacting the efficiency ratio - Net interest margin decreased to **3.19%** in Q1 2021 from **3.43%** in Q1 2020, primarily due to lower yields on earning assets in the low-rate environment[298](index=298&type=chunk)[299](index=299&type=chunk) - Net interest income for Q1 2021 included **$5.2 million** in PPP net interest income and net loan fees, with **$2.4 million** in fees recognized from loan forgiveness during the quarter[294](index=294&type=chunk) - Other operating income increased by **$1.8 million** year-over-year, primarily due to a **$2.6 million** increase in mortgage banking income from strong residential mortgage demand[305](index=305&type=chunk) - Other operating expense increased by **$3.4 million** year-over-year, mainly due to higher directors' deferred compensation plan expense, computer software expense, and advertising expense[308](index=308&type=chunk) [Financial Condition](index=61&type=section&id=Financial%20Condition) Total assets reached **$6.98 billion** as of March 31, 2021, driven by increases in loans and deposits, while nonperforming assets remained low and the Allowance for Credit Losses slightly decreased Loan Portfolio Composition (in thousands) | Loan Category | March 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | SBA PPP | $597,819 | $416,375 | | Residential mortgage | $1,687,513 | $1,690,212 | | Commercial mortgage | $1,164,338 | $1,156,328 | | Other Commercial | $514,189 | $545,091 | | **Total Loans** | **$5,137,849** | **$4,964,113** | Deposit Composition (in thousands) | Deposit Category | March 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Noninterest-bearing demand | $2,070,428 | $1,790,269 | | Core Deposits | $5,546,681 | $5,136,412 | | **Total Deposits** | **$6,208,950** | **$5,796,118** | - Nonperforming assets (NPAs) increased to **$7.2 million** from **$6.2 million** at year-end, but the ratio of NPAs to total assets remained low at **0.14%**[325](index=325&type=chunk)[327](index=327&type=chunk) - The **Allowance for Credit Losses (ACL)** was **1.59%** of total loans, or **1.80%** excluding government-guaranteed PPP loans[332](index=332&type=chunk)[337](index=337&type=chunk) [Capital Resources](index=68&type=section&id=Capital%20Resources) Shareholders' equity was **$542.9 million** at March 31, 2021, with all regulatory capital ratios remaining well above 'well capitalized' levels, and the company increased its quarterly cash dividend and authorized a new share repurchase program Regulatory Capital Ratios (Company) | Ratio | March 31, 2021 | Minimum for Adequacy | | :--- | :--- | :--- | | CET1 risk-based capital | 12.0% | 4.5% | | Tier 1 risk-based capital | 13.1% | 6.0% | | Total risk-based capital | 15.4% | 8.0% | | Leverage capital | 8.9% | 4.0% | - On April 27, 2021, the Board of Directors declared a cash dividend of **$0.24 per share**, an increase of **4.3%** from the prior year[349](index=349&type=chunk) - In January 2021, the Board approved a new share repurchase authorization of up to **$25 million**, with no shares repurchased during Q1 2021[353](index=353&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=72&type=section&id=Item%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk, managed by the Asset/Liability Management Committee (ALCO) using simulation models, with potential net interest income fluctuations within established policy limits for various rate shifts Net Interest Income Sensitivity Analysis (as of March 31, 2021) | Rate Change Scenario | Estimated Net Interest Income Sensitivity | | :--- | :--- | | +100 bp | 4.28% | | -100 bp | (5.11)% | - The company's primary market risk is **interest rate risk**, monitored by the ALCO through simulation models to measure the impact of rate changes on net interest income and market value of portfolio equity[366](index=366&type=chunk)[379](index=379&type=chunk) [Item 4. Controls and Procedures](index=72&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's **disclosure controls and procedures** were effective as of the end of the period covered by the report[381](index=381&type=chunk) - No material changes to the company's **internal control over financial reporting** occurred during the first quarter of 2021[382](index=382&type=chunk) Part II [Item 1. Legal Proceedings](index=73&type=section&id=Item%201%2E%20Legal%20Proceedings) The company is involved in legal claims and lawsuits arising in the ordinary course of business, which management believes will not materially adversely affect its financial position or results of operations - Management opines that pending legal actions, if disposed of unfavorably, would not have a **material adverse effect** on the company's financial statements[385](index=385&type=chunk) [Item 1A. Risk Factors](index=73&type=section&id=Item%201A%2E%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2020 - No material changes from the **Risk Factors** disclosed in the Annual Report on Form 10-K for the year ended December 31, 2020 have occurred[386](index=386&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202%2E%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Board of Directors approved a new **$25 million** share repurchase authorization in January 2021, with no shares repurchased during Q1 2021, leaving the full amount available - On January 26, 2021, the Board of Directors approved a new share repurchase authorization of up to **$25 million**[389](index=389&type=chunk) - The company did not repurchase any shares during the first quarter of 2021[389](index=389&type=chunk)[391](index=391&type=chunk) [Item 6. Exhibits](index=74&type=section&id=Item%206%2E%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications pursuant to the Sarbanes-Oxley Act and XBRL data files - The report includes **CEO and CFO certifications** under Sarbanes-Oxley Act Sections 302 and 906[393](index=393&type=chunk) - XBRL Instance Document and related taxonomy files are included as exhibits[393](index=393&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, No Par Value CPF New York Stock Exchange FORM 10-K (Mark One) ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2020 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number: 001-31567 Central Pacific Financial ...

Central Pacific Financial Corp. (NYSE:CPF) Q4 2020 Earnings Conference Call January 27, 2021 1:00 PM ET Company Participants David Morimoto - Executive Vice President and Chief Financial Officer Paul Yonamine - Chairman and Chief Executive Officer Catherine Ngo - President Arnold Martines - Executive Vice President and Chief Banking Officer Anna Hu - Executive Vice President and Chief Credit Officer Conference Call Participants David Feaster - Raymond James Andrew Liesch - Piper Sandler Jackie Bohlen - KBW ...

CENTRAL PACIFIC FINANCIAL 4th Quarter 2020 Earnings Supplement January 27, 2021 Forward-Looking Statements This document may contain forward-looking statements concerning: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, the payment or nonpayment of dividends, capital position, credit losses, net interest margin or other financial items; statements of plans, objectives and expectations of Central Pacific Financial Corp. or its management or Board of Direct ...

Central Pacific Financial Corp. (NYSE:CPF) Q3 2020 Earnings Conference Call October 28, 2020 1:00 PM ET Company Participants David Morimoto - EVP & CFO Paul Yonamine - Chairman & CEO Catherine Ngo - President Arnold Martines – EVP & CBO Anna Hu - EVP & CCO Conference Call Participants Jackie Bohlen - KBW David Feaster - Raymond James Andrew Liesch - Piper Sandler Laurie Hunsicker - Compass Point Operator Good afternoon, ladies and gentlemen. Thank you for standing by and welcome to the Central Pacific Finan ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |----------------------------------------------------------------|---------------------------------------------------------------------------------------------|------ ...

OCTOBER 28, 2020 Third Quarter 2020 Earnings Supplement FORWARD LOOKING STATEMENTS This document may contain forward-looking statements concerning: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, the payment or nonpayment of dividends, capital position, credit losses, net interest margin or other financial items; statements of plans, objectives and expectations of Central Pacific Financial Corp. or its management or Board of Directors, including those rel ...

Central Pacific Financial Corp. (NYSE:CPF) Q2 2020 Earnings Conference Call July 29, 2020 1:00 PM ET Company Representatives Paul Yonamine - Chairman, Chief Executive Officer Catherine Ngo - President Arnold Martines - Executive Vice President, Chief Banking Officer Anna Hu - Executive Vice President, Chief Credit Officer David Morimoto - Executive Vice President, Chief Financial Officer Conference Call Participants Andrew Liesch - Piper Sandler Jackie Bohlen - KBW David Feaster - Raymond James Laurie Hunsi ...