Central Pacific Financial (CPF) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $11.3 million, or$ 0.42 per diluted share, down from $13.3 million, or$ 0.49 in Q3 2024, and $14.9 million, or$ 0.55 in Q4 2023[2] - Full year 2024 net income was $53.4 million, or$ 1.97 per diluted share, compared to $58.7 million, or$ 2.17 in 2023[2] - Adjusted net income (non-GAAP) for Q4 2024 was $19.0 million, or$ 0.70 per diluted share, and $63.4 million, or$ 2.34 for the full year 2024, excluding pre-tax items totaling $13.0 million[5] - Net income for Q4 2024 was$ 11,345,000, compared to $14,866,000 in Q4 2023, a decrease of 23.8%[31] - Basic earnings per share for Q4 2024 was$ 0.42, down from $0.55 in Q4 2023, a decline of 23.6%[31] - Net income for the year ended December 31, 2024, was$ 53,412,000, down from $58,669,000 in 2023, indicating a decrease of 8.8%[36] - GAAP net income for the three months ended December 31, 2024, was$ 11,345,000, a decrease of 19.0% from $14,866,000 for the same period in 2023[49] Interest Income and Margin - Net interest income for Q4 2024 was$ 55.8 million, a 3.6% increase from Q3 2024 and a 9.1% increase from Q4 2023[7] - Net interest margin (NIM) for Q4 2024 was 3.17%, up 10 basis points from Q3 2024 and 33 basis points from Q4 2023[7] - Total interest income for Q4 2024 was $77,960,000, an increase from$ 74,113,000 in Q4 2023, representing a growth of 3.9% year-over-year[36] - Net interest income after provision for credit losses for Q4 2024 was $54,956,000, compared to$ 46,489,000 in Q4 2023, reflecting a year-over-year increase of 18.3%[36] - The interest rate spread for the three months ended December 31, 2024, was 2.62%[37] - The net interest margin for the same period was 3.17%, up from 3.07% in the previous quarter[37] Assets and Liabilities - Total assets as of December 31, 2024, were $7.47 billion, a 0.8% increase from$ 7.42 billion at September 30, 2024, but a 2.2% decrease from $7.64 billion at December 31, 2023[14] - Total liabilities as of December 31, 2024, were$ 6,835,263 thousand, with total shareholders' equity of $542,135 thousand[37] - Total deposits increased to$ 6.64 billion at December 31, 2024, a 0.93% increase from Q3 2024, but a 3.0% decrease from Q4 2023[16] - Total loans decreased to $5.33 billion at December 31, 2024, down 0.2% from Q3 2024 and 2.0% from Q4 2023[15] Capital and Equity - Common equity tier 1 capital ratio improved to 12.3% in Q4 2024 from 11.4% in Q4 2023, indicating stronger capital position[33] - Total risk-based capital ratio increased to 15.4% in Q4 2024 from 14.6% in Q4 2023, reflecting enhanced financial stability[33] - Total shareholders' equity decreased to$ 538,385 thousand from $543,725 thousand, a decline of 1.3%[35] - The tangible common equity (TCE) ratio (non-GAAP) as of December 31, 2024, was 7.21%, compared to 6.57% as of December 31, 2023, indicating improved capital strength[55] Operational Efficiency - Efficiency ratio for Q4 2024 was 75.65%, up from 64.12% in Q4 2023, indicating increased operational costs relative to revenue[31] - The efficiency ratio (non-GAAP) improved to 75.65% for the three months ended December 31, 2024, compared to 70.12% in the previous quarter, indicating a decrease in operational efficiency[45] - Total other operating expenses for the three months ended December 31, 2024, were$ 44,177,000, an increase of 3.9% from $42,522,000 for the same period in 2023[52] Credit Quality - Provision for credit losses decreased to$ 818,000 in Q4 2024 from $4,653,000 in Q4 2023, indicating improved asset quality[31] - The ratio of allowance for credit losses (ACL) to total loans decreased to 1.11% from 1.15% in the previous quarter[34] - Non-performing assets (NPA) remained stable at$ 11,018 thousand, unchanged from the previous quarter[34] - The allowance for credit losses decreased to $59,182 thousand as of December 31, 2024, from$ 61,647 thousand in the previous quarter[41] Dividends and Share Repurchase - The Board of Directors approved a 3.8% increase in the quarterly cash dividend to $0.27 per share and authorized a new share repurchase program of up to$ 30 million for 2025[5] - Cash dividends declared remained consistent at $0.26 per share for both Q4 2024 and Q4 2023[36]