T
|
QUARTERLY REPORT PURSUANT TO SECTION
13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF
1934
|
£
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
Hawaii
|
99-0212597
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
No.)
|
Large
accelerated filer T
|
Accelerated
filer £
|
Non-accelerated
filer £
|
CONSOLIDATED
BALANCE SHEETS
|
||||||||
(Unaudited)
|
||||||||
September
30,
|
December
31,
|
|||||||
(Dollars
in thousands)
|
2007
|
2006
|
||||||
Assets
|
||||||||
Cash
and due from banks
|
$ |
90,161
|
$ |
129,715
|
||||
Interest-bearing
deposits in other banks
|
439
|
5,933
|
||||||
Federal
funds sold
|
14,900
|
-
|
||||||
Investment
securities:
|
||||||||
Held
to maturity, at amortized cost (fair value of $46,977 at
|
||||||||
September
30, 2007 and $64,249 at December 31, 2006)
|
47,465
|
65,204
|
||||||
Available
for sale, at fair value
|
801,640
|
833,154
|
||||||
Total
investment securities
|
849,105
|
898,358
|
||||||
Loans
held for sale
|
31,388
|
26,669
|
||||||
Loans
and leases
|
4,072,536
|
3,846,004
|
||||||
Less
allowance for loan and lease losses
|
72,517
|
52,280
|
||||||
Net
loans and leases
|
4,000,019
|
3,793,724
|
||||||
Premises
and equipment
|
80,173
|
77,341
|
||||||
Accrued
interest receivable
|
27,580
|
26,269
|
||||||
Investment
in unconsolidated subsidiaries
|
16,333
|
12,957
|
||||||
Goodwill
|
292,453
|
297,883
|
||||||
Core
deposit premium
|
29,844
|
31,898
|
||||||
Mortgage
servicing rights
|
11,111
|
11,640
|
||||||
Bank-owned
life insurance
|
130,089
|
102,394
|
||||||
Federal
Home Loan Bank stock
|
48,797
|
48,797
|
||||||
Other
assets
|
25,232
|
23,614
|
||||||
Total
assets
|
$ |
5,647,624
|
$ |
5,487,192
|
||||
Liabilities
and Shareholders' Equity
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
demand
|
$ |
630,586
|
$ |
661,027
|
||||
Interest-bearing
demand
|
441,884
|
438,943
|
||||||
Savings
and money market
|
1,216,991
|
1,205,271
|
||||||
Time
|
1,652,798
|
1,539,242
|
||||||
Total
deposits
|
3,942,259
|
3,844,483
|
||||||
Short-term
borrowings
|
72,245
|
79,308
|
||||||
Long-term
debt
|
816,535
|
740,189
|
||||||
Minority
interest
|
13,110
|
13,130
|
||||||
Other
liabilities
|
59,503
|
71,943
|
||||||
Total
liabilities
|
4,903,652
|
4,749,053
|
||||||
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
|
||||||||
29,914,586
shares at September 30, 2007 and 30,709,389 shares at December
31,
2006
|
419,463
|
430,904
|
||||||
Surplus
|
54,686
|
51,756
|
||||||
Retained
earnings
|
281,682
|
270,624
|
||||||
Accumulated
other comprehensive loss
|
(11,859 | ) | (15,145 | ) | ||||
Total
shareholders' equity
|
743,972
|
738,139
|
||||||
Total
liabilities and shareholders' equity
|
$ |
5,647,624
|
$ |
5,487,192
|
||||
See
accompanying notes to consolidated financial
statements.
|
CONSOLIDATED
STATEMENTS OF INCOME
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(Amounts
in thousands, except per share data)
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
Interest
income:
|
||||||||||||||||
Interest
and fees on loans and leases
|
$ |
78,325
|
$ |
72,444
|
$ |
231,561
|
$ |
204,603
|
||||||||
Interest
and dividends on investment securities:
|
||||||||||||||||
Taxable
interest
|
8,386
|
8,486
|
25,964
|
25,996
|
||||||||||||
Tax-exempt
interest
|
1,343
|
1,227
|
4,071
|
3,822
|
||||||||||||
Dividends
|
83
|
153
|
176
|
264
|
||||||||||||
Interest
on deposits in other banks
|
82
|
79
|
156
|
306
|
||||||||||||
Interest
on Federal funds sold and securities
|
||||||||||||||||
purchased
under agreements to resell
|
125
|
31
|
244
|
85
|
||||||||||||
Dividends
on Federal Home Loan Bank stock
|
73
|
-
|
195
|
-
|
||||||||||||
Total
interest income
|
88,417
|
82,420
|
262,367
|
235,076
|
||||||||||||
Interest
expense:
|
||||||||||||||||
Interest
on deposits:
|
||||||||||||||||
Demand
|
139
|
136
|
418
|
428
|
||||||||||||
Savings
and money market
|
6,321
|
4,969
|
18,773
|
11,667
|
||||||||||||
Time
|
17,925
|
14,050
|
51,182
|
37,329
|
||||||||||||
Interest
on short-term borrowings
|
302
|
1,221
|
1,110
|
2,035
|
||||||||||||
Interest
on long-term debt
|
10,900
|
8,949
|
31,484
|
26,163
|
||||||||||||
Total
interest expense
|
35,587
|
29,325
|
102,967
|
77,622
|
||||||||||||
Net
interest income
|
52,830
|
53,095
|
159,400
|
157,454
|
||||||||||||
Provision
for loan and lease losses
|
21,200
|
300
|
24,800
|
1,350
|
||||||||||||
Net
interest income after provision for loan and lease losses
|
31,630
|
52,795
|
134,600
|
156,104
|
||||||||||||
Other
operating income:
|
||||||||||||||||
Service
charges on deposit accounts
|
3,581
|
3,570
|
10,488
|
10,563
|
||||||||||||
Other
service charges and fees
|
3,281
|
2,994
|
10,052
|
8,993
|
||||||||||||
Income
from fiduciary activities
|
968
|
740
|
2,583
|
2,157
|
||||||||||||
Equity
in earnings of unconsolidated subsidiaries
|
169
|
90
|
593
|
421
|
||||||||||||
Fees
on foreign exchange
|
149
|
207
|
541
|
601
|
||||||||||||
Loan
placement fees
|
248
|
464
|
790
|
1,256
|
||||||||||||
Gains
on sales of loans
|
1,116
|
680
|
3,886
|
4,133
|
||||||||||||
Income
from bank-owned life insurance
|
1,861
|
1,085
|
4,075
|
2,794
|
||||||||||||
Other
|
379
|
715
|
1,434
|
2,751
|
||||||||||||
Total
other operating income
|
11,752
|
10,545
|
34,442
|
33,669
|
||||||||||||
Other
operating expense:
|
||||||||||||||||
Salaries
and employee benefits
|
16,240
|
17,451
|
49,534
|
54,128
|
||||||||||||
Net
occupancy
|
2,624
|
2,399
|
7,721
|
6,974
|
||||||||||||
Equipment
|
1,255
|
1,171
|
3,810
|
3,624
|
||||||||||||
Amortization
of core deposit premium
|
684
|
974
|
2,054
|
2,922
|
||||||||||||
Amortization
of mortgage servicing rights
|
478
|
547
|
1,488
|
1,697
|
||||||||||||
Communication
expense
|
1,032
|
1,186
|
3,118
|
3,562
|
||||||||||||
Legal
and professional services
|
2,223
|
1,985
|
6,660
|
6,174
|
||||||||||||
Computer
software expense
|
869
|
716
|
2,561
|
1,956
|
||||||||||||
Advertising
expense
|
661
|
515
|
1,919
|
1,789
|
||||||||||||
Other
|
5,487
|
4,272
|
14,495
|
13,627
|
||||||||||||
Total
other operating expense
|
31,553
|
31,216
|
93,360
|
96,453
|
||||||||||||
Income
before income taxes
|
11,829
|
32,124
|
75,682
|
93,320
|
||||||||||||
Income
taxes
|
2,722
|
11,521
|
25,424
|
32,940
|
||||||||||||
Net
income
|
$ |
9,107
|
$ |
20,603
|
$ |
50,258
|
$ |
60,380
|
||||||||
Per
share data:
|
||||||||||||||||
Basic
earnings per share
|
$ |
0.30
|
$ |
0.67
|
$ |
1.65
|
$ |
1.98
|
||||||||
Diluted
earnings per share
|
0.30
|
0.67
|
1.64
|
1.96
|
||||||||||||
Cash
dividends declared
|
0.25
|
0.23
|
0.73
|
0.65
|
||||||||||||
Shares
used in computation:
|
||||||||||||||||
Basic
shares
|
30,192
|
30,532
|
30,480
|
30,465
|
||||||||||||
Diluted
shares
|
30,378
|
30,838
|
30,707
|
30,790
|
||||||||||||
See
accompanying notes to consolidated financial
statements.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
Nine
Months Ended
|
||||||||
September
30,
|
||||||||
(Dollars
in thousands)
|
2007
|
2006
|
||||||
Cash
flows from operating activities:
|
||||||||
Net
income
|
$ |
50,258
|
$ |
60,380
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Provision
for loan and lease losses
|
24,800
|
1,350
|
||||||
Depreciation
and amortization
|
5,303
|
5,150
|
||||||
Amortization
of intangible assets
|
3,542
|
4,619
|
||||||
Net
amortization of investment securities
|
1,591
|
2,236
|
||||||
Net
loss on investment securities
|
-
|
19
|
||||||
Share-based
compensation
|
2,920
|
2,580
|
||||||
Deferred
income tax (benefit) expense
|
(6,521 | ) |
24
|
|||||
Net
gain on sale of loans
|
(3,886 | ) | (4,133 | ) | ||||
Proceeds
from sales of loans held for sale
|
688,923
|
413,756
|
||||||
Originations
of loans held for sale
|
(689,756 | ) | (370,827 | ) | ||||
Tax
benefits from share-based compensation
|
(10 | ) | (675 | ) | ||||
Equity
in earnings of unconsolidated subsidiaries
|
(593 | ) | (421 | ) | ||||
Increase
in cash surrender value of bank-owned life insurance
|
(4,124 | ) | (2,775 | ) | ||||
Net
change in other assets and liabilities
|
(4,461 | ) | (8,786 | ) | ||||
Net
cash provided by operating activities
|
67,986
|
102,497
|
||||||
Cash
flows from investing activities:
|
||||||||
Proceeds
from maturities of and calls on investment securities held
to
maturity
|
17,657
|
4,685
|
||||||
Proceeds
from maturities of and calls on investment securities available
for
sale
|
520,640
|
392,151
|
||||||
Proceeds
from sales of investment securities available for sale
|
-
|
57
|
||||||
Purchases
of investment securities available for sale
|
(485,956 | ) | (374,439 | ) | ||||
Net
loan originations
|
(220,098 | ) | (212,955 | ) | ||||
Purchase
of loan portfolio
|
(10,496 | ) |
-
|
|||||
Proceeds
from bank-owned life insurance
|
1,364
|
-
|
||||||
Purchase
of bank-owned life insurance
|
(25,000 | ) | (30,000 | ) | ||||
Purchases
of premises and equipment
|
(8,136 | ) | (9,491 | ) | ||||
Distributions
from unconsolidated subsidiaries
|
596
|
768
|
||||||
Contributions
to unconsolidated subsidiaries
|
(5,294 | ) |
-
|
|||||
Net
cash used in investing activities
|
(214,723 | ) | (229,224 | ) | ||||
Cash
flows from financing activities:
|
||||||||
Net
increase in deposits
|
97,776
|
139,679
|
||||||
Proceeds
from long-term debt
|
150,000
|
75,000
|
||||||
Repayments
of long-term debt
|
(73,046 | ) | (92,486 | ) | ||||
Net
decrease in short-term borrowings
|
(7,063 | ) | (23,961 | ) | ||||
Cash
dividends paid
|
(22,274 | ) | (19,841 | ) | ||||
Tax
benefits from share-based compensation
|
10
|
675
|
||||||
Repurchases
of common stock
|
(31,075 | ) |
-
|
|||||
Proceeds
from stock option exercises
|
2,261
|
2,947
|
||||||
Net
cash provided by financing activities
|
116,589
|
82,013
|
||||||
Net
decrease in cash and cash equivalents
|
(30,148 | ) | (44,714 | ) | ||||
Cash
and cash equivalents at beginning of period
|
135,648
|
164,740
|
||||||
Cash
and cash equivalents at end of period
|
$ |
105,500
|
$ |
120,026
|
||||
Supplemental
disclosure of cash flow information:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$ |
100,488
|
$ |
74,354
|
||||
Income
taxes
|
24,711
|
25,517
|
||||||
Cash
received during the period for:
|
||||||||
Income
taxes
|
-
|
3,255
|
||||||
Supplemental
disclosure of noncash investing and financing activities:
|
||||||||
Net
change in common stock held by directors' deferred compensation
plan
|
$ |
33
|
$ |
32
|
||||
See
accompanying notes to consolidated financial
statements.
|
September
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(Dollars
in thousands)
|
||||||||
Commercial,
Financial and Agricultural
|
$ |
377,456
|
$ |
405,046
|
||||
Real
Estate:
|
||||||||
Construction
|
1,175,590
|
1,144,680
|
||||||
Mortgage-Residential
|
1,023,345
|
898,932
|
||||||
Mortgage-Commercial
|
1,252,577
|
1,165,267
|
||||||
Consumer
|
202,869
|
195,436
|
||||||
Leases
|
53,112
|
50,741
|
||||||
4,084,949
|
3,860,102
|
|||||||
Unearned
income
|
(12,413 | ) | (14,098 | ) | ||||
Total
loans and leases
|
$ |
4,072,536
|
$ |
3,846,004
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Balance,
beginning of period
|
$ |
51,409
|
$ |
52,914
|
$ |
52,280
|
$ |
52,936
|
||||||||
Provision
for loan and lease losses
|
21,200
|
300
|
24,800
|
1,350
|
||||||||||||
Charge-offs
|
(835 | ) | (1,266 | ) | (6,513 | ) | (3,599 | ) | ||||||||
Recoveries
|
743
|
663
|
1,950
|
1,924
|
||||||||||||
Net
charge-offs
|
(92 | ) | (603 | ) | (4,563 | ) | (1,675 | ) | ||||||||
Balance,
end of period
|
$ |
72,517
|
$ |
52,611
|
$ |
72,517
|
$ |
52,611
|
Hawaii
|
Commercial
|
|||||||||||
Market
|
Real
Estate
|
Total
|
||||||||||
(Dollars
in thousands)
|
||||||||||||
Balance,
beginning of period
|
$ |
152,812
|
$ |
145,071
|
$ |
297,883
|
||||||
Additions
|
468
|
-
|
468
|
|||||||||
Reductions
|
(2,983 | ) | (2,915 | ) | (5,898 | ) | ||||||
Balance,
end of period
|
$ |
150,297
|
$ |
142,156
|
$ |
292,453
|
Core
Deposit
Premium
|
Mortgage
Servicing
Rights
|
|||||||
(Dollars
in thousands)
|
||||||||
Balance,
beginning of period
|
$ |
31,898
|
$ |
11,640
|
||||
Additions
|
-
|
959
|
||||||
Amortization
|
(2,054 | ) | (1,488 | ) | ||||
Balance,
end of period
|
$ |
29,844
|
$ |
11,111
|
September
30, 2007
|
December
31, 2006
|
|||||||||||||||||||||||
Gross
|
Gross
|
|||||||||||||||||||||||
Carrying
|
Accumulated
|
Carrying
|
Accumulated
|
|||||||||||||||||||||
Value
|
Amortization
|
Net
|
Value
|
Amortization
|
Net
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Core
deposit premium
|
$ |
44,642
|
$ | (14,798 | ) | $ |
29,844
|
$ |
44,642
|
$ | (12,744 | ) | $ |
31,898
|
||||||||||
Mortgage
servicing rights
|
20,053
|
(8,942 | ) |
11,111
|
19,094
|
(7,454 | ) |
11,640
|
Estimated
Amortization Expense
|
||||||||
Core
Deposit
|
Mortgage
|
|||||||
Premium
|
Servicing
Rights
|
|||||||
(Dollars
in thousands)
|
||||||||
2007
(remainder)
|
$ |
685
|
$ |
284
|
||||
2008
|
2,491
|
1,497
|
||||||
2009
|
2,491
|
1,233
|
||||||
2010
|
2,491
|
1,074
|
||||||
2011
|
2,491
|
934
|
||||||
2012
|
2,491
|
814
|
||||||
Thereafter
|
16,704
|
5,275
|
||||||
$ |
29,844
|
$ |
11,111
|
(Dollars
in thousands)
|
||||
Fair
market value at January 1, 2007
|
$ |
12,086
|
||
Fair
market value at September 30, 2007
|
$ |
13,059
|
||
Weighted
average discount rate
|
8.6 | % | ||
Weighted
average prepayment speed assumption
|
10.9 | % |
Balance
at
|
Adjustments
|
Balance
at
|
||||||||||||||
December
31, 2006
|
to
estimates
|
Payments
|
September
30, 2007
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Lease
termination fees
|
$ |
5,012
|
$ |
396
|
$ | (2,109 | ) | $ |
3,299
|
|||||||
Asset
write-offs
|
271
|
(271 | ) |
-
|
-
|
|||||||||||
Contract
termination fees
|
319
|
(319 | ) |
-
|
-
|
|||||||||||
Total
|
$ |
5,602
|
$ | (194 | ) | $ | (2,109 | ) | $ |
3,299
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Salaries
and employee benefits
|
$ |
743
|
$ |
878
|
$ |
2,920
|
$ |
2,580
|
||||||||
Income
tax benefit
|
(298 | ) | (352 | ) | (1,170 | ) | (1,034 | ) | ||||||||
Net
share-based compensation effect
|
$ |
445
|
$ |
526
|
$ |
1,750
|
$ |
1,546
|
|
Shares
|
Weighted
Average
Exercise
Price
|
||||||
Outstanding
at January 1, 2007
|
990,324
|
$ |
25.55
|
|||||
Changes
during the period:
|
||||||||
Granted
|
75,000
|
35.54
|
||||||
Exercised
|
(134,810 | ) |
14.03
|
|||||
Expired
|
-
|
-
|
||||||
Forfeited
|
(33,041 | ) |
35.09
|
|||||
Outstanding
at September 30, 2007
|
897,473
|
27.77
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Expected
volatility
|
30.9 | % | 34.4 | % | 33.1 | % | 34.4 | % | ||||||||
Risk
free interest rate
|
4.5 | % | 4.9 | % | 4.5 | % | 4.9 | % | ||||||||
Expected
dividends
|
3.6 | % | 2.4 | % | 2.9 | % | 2.4 | % | ||||||||
Expected
life (in years)
|
6.5
|
6.5
|
7.4
|
6.5
|
||||||||||||
Weighted
average fair value
|
$ |
7.57
|
$ |
11.99
|
$ |
11.20
|
$ |
11.99
|
|
Shares
|
Weighted
Average Grant Date Fair Value
|
||||||
Nonvested
at January 1, 2007
|
22,520
|
$ |
34.35
|
|||||
Changes
during the period:
|
||||||||
Granted
|
26,000
|
34.79
|
||||||
Vested
|
(900 | ) |
27.75
|
|||||
Forfeited
|
(1,500 | ) |
35.90
|
|||||
Nonvested
at September 30, 2007
|
46,120
|
34.67
|
|
Shares
|
Weighted
Average Grant Date Fair Value
|
||||||
Nonvested
at January 1, 2007
|
82,438
|
$ |
34.67
|
|||||
Changes
during the period:
|
||||||||
Granted
|
-
|
-
|
||||||
Forfeited
|
(8,135 | ) |
34.57
|
|||||
Nonvested
at September 30, 2007
|
74,303
|
34.68
|
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Expected
volatility
|
-
|
% | 33.3 | % | 31.7 | % | 34.3 | % | ||||||||
Risk
free interest rate
|
-
|
% | 4.9 | % | 4.5 | % | 4.7 | % | ||||||||
Expected
dividends
|
-
|
% | 2.4 | % | 2.8 | % | 2.4 | % | ||||||||
Expected
life (in years)
|
-
|
6.1
|
6.5
|
6.5
|
||||||||||||
Weighted
average fair value
|
$ |
-
|
$ |
11.48
|
$ |
10.49
|
$ |
10.80
|
Shares
|
Weighted
Average
Exercise
Price
|
|||||||
Outstanding
at January 1, 2007
|
56,161
|
$ |
34.95
|
|||||
Changes
during the period:
|
||||||||
Granted
|
32,726
|
35.90
|
||||||
Forfeited
|
(8,701 | ) |
35.49
|
|||||
Outstanding
at September 30, 2007
|
80,186
|
35.28
|
September
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(Dollars
in thousands)
|
||||||||
Unrealized
holding losses on available-for-sale
investment securities
|
$ | (10,743 | ) | $ | (15,422 | ) | ||
Pension
liability adjustments
|
(9,031 | ) | (9,853 | ) | ||||
Tax
benefit
|
7,915
|
10,130
|
||||||
Accumulated
other comprehensive loss,
net of tax
|
$ | (11,859 | ) | $ | (15,145 | ) |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Net
income
|
$ |
9,107
|
$ |
20,603
|
$ |
50,258
|
$ |
60,380
|
||||||||
Unrealized
gain (loss) on investment
securities, net of taxes
|
5,871
|
7,216
|
2,793
|
(819 | ) | |||||||||||
Pension
adjustments, net of taxes
|
165
|
-
|
493
|
-
|
||||||||||||
Comprehensive
income
|
$ |
15,143
|
$ |
27,819
|
$ |
53,544
|
$ |
59,561
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Interest
cost
|
$ |
446
|
$ |
385
|
$ |
1,338
|
$ |
1,155
|
||||||||
Expected
return on assets
|
(560 | ) | (505 | ) | (1,680 | ) | (1,515 | ) | ||||||||
Amortization
of unrecognized loss
|
264
|
226
|
792
|
678
|
||||||||||||
Net
periodic cost
|
$ |
150
|
$ |
106
|
$ |
450
|
$ |
318
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(Dollars
in thousands)
|
||||||||||||||||
Service
cost
|
$ |
140
|
$ |
182
|
$ |
420
|
$ |
546
|
||||||||
Interest
cost
|
136
|
135
|
408
|
405
|
||||||||||||
Amortization
of unrecognized transition
obligation
|
5
|
49
|
15
|
147
|
||||||||||||
Amortization
of prior service
cost
|
5
|
4
|
15
|
12
|
||||||||||||
Amortization
of unrecognized (gain)
loss
|
1
|
(12 | ) |
3
|
(36 | ) | ||||||||||
Net
periodic cost
|
$ |
287
|
$ |
358
|
$ |
861
|
$ |
1,074
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(In
thousands, except
per share data)
|
||||||||||||||||
Net
income
|
$ |
9,107
|
$ |
20,603
|
$ |
50,258
|
$ |
60,380
|
||||||||
Weighted
average shares
outstanding - basic
|
30,192
|
30,532
|
30,480
|
30,465
|
||||||||||||
Dilutive
effect of employee
stock options and
awards
|
186
|
306
|
227
|
325
|
||||||||||||
Weighted
average shares
outstanding - diluted
|
30,378
|
30,838
|
30,707
|
30,790
|
||||||||||||
Basic
earnings per share
|
$ |
0.30
|
$ |
0.67
|
$ |
1.65
|
$ |
1.98
|
||||||||
Diluted
earnings per share
|
$ |
0.30
|
$ |
0.67
|
$ |
1.64
|
$ |
1.96
|
Commercial
Real
Estate
|
Hawaii
Market
|
Treasury
|
All
Others
|
Total
|
||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
Three
months ended September 30, 2007:
|
||||||||||||||||||||
Net
interest income
|
$ |
44,853
|
$ |
12,408
|
$ | (4,431 | ) | $ |
-
|
$ |
52,830
|
|||||||||
Intersegment
net interest income (expense)
|
(28,502 | ) |
20,418
|
2,164
|
5,920
|
-
|
||||||||||||||
Provision
for loan losses
|
(20,270 | ) | (930 | ) |
-
|
-
|
(21,200 | ) | ||||||||||||
Other
operating income
|
23
|
9,036
|
2,645
|
48
|
11,752
|
|||||||||||||||
Other
operating expense
|
(1,182 | ) | (16,257 | ) | (505 | ) | (13,609 | ) | (31,553 | ) | ||||||||||
Administrative
and overhead expense allocation
|
(1,952 | ) | (10,955 | ) | (103 | ) |
13,010
|
-
|
||||||||||||
Income
taxes
|
3,139
|
(4,549 | ) | (1,190 | ) | (122 | ) | (2,722 | ) | |||||||||||
Net
income (loss)
|
$ | (3,891 | ) | $ |
9,171
|
$ | (1,420 | ) | $ |
5,247
|
$ |
9,107
|
||||||||
Three
months ended September 30, 2006:
|
||||||||||||||||||||
Net
interest income
|
$ |
40,762
|
$ |
14,841
|
$ | (2,508 | ) | $ |
-
|
$ |
53,095
|
|||||||||
Intersegment
net interest income (expense)
|
(24,806 | ) |
18,568
|
97
|
6,141
|
-
|
||||||||||||||
Provision
for loan losses
|
16
|
(316 | ) |
-
|
-
|
(300 | ) | |||||||||||||
Other
operating income
|
93
|
8,371
|
1,635
|
446
|
10,545
|
|||||||||||||||
Other
operating expense
|
(1,979 | ) | (15,749 | ) | (599 | ) | (12,889 | ) | (31,216 | ) | ||||||||||
Administrative
and overhead expense allocation
|
(1,673 | ) | (8,967 | ) | (90 | ) |
10,730
|
-
|
||||||||||||
Income
taxes
|
(4,892 | ) | (5,678 | ) | (675 | ) | (276 | ) | (11,521 | ) | ||||||||||
Net
income (loss)
|
$ |
7,521
|
$ |
11,070
|
$ | (2,140 | ) | $ |
4,152
|
$ |
20,603
|
|||||||||
Nine
months ended September 30, 2007:
|
||||||||||||||||||||
Net
interest income
|
$ |
132,919
|
$ |
37,335
|
$ | (10,854 | ) | $ |
-
|
$ |
159,400
|
|||||||||
Intersegment
net interest income (expense)
|
(82,872 | ) |
59,461
|
4,297
|
19,114
|
-
|
||||||||||||||
Provision
for loan losses
|
(20,330 | ) | (4,470 | ) |
-
|
-
|
(24,800 | ) | ||||||||||||
Other
operating income
|
104
|
27,401
|
6,850
|
87
|
34,442
|
|||||||||||||||
Other
operating expense
|
(4,773 | ) | (50,197 | ) | (1,719 | ) | (36,671 | ) | (93,360 | ) | ||||||||||
Administrative
and overhead expense allocation
|
(5,543 | ) | (27,267 | ) | (631 | ) |
33,441
|
-
|
||||||||||||
Income
taxes
|
(7,080 | ) | (14,669 | ) | (2,922 | ) | (753 | ) | (25,424 | ) | ||||||||||
Net
income (loss)
|
$ |
12,425
|
$ |
27,594
|
$ | (4,979 | ) | $ |
15,218
|
$ |
50,258
|
|||||||||
Nine
months ended September 30, 2006:
|
||||||||||||||||||||
Net
interest income
|
$ |
112,923
|
$ |
48,443
|
$ | (3,912 | ) | $ |
-
|
$ |
157,454
|
|||||||||
Intersegment
net interest income (expense)
|
(66,959 | ) |
52,025
|
(2,455 | ) |
17,389
|
-
|
|||||||||||||
Provision
for loan losses
|
(71 | ) | (1,279 | ) |
-
|
-
|
(1,350 | ) | ||||||||||||
Other
operating income
|
289
|
27,060
|
4,557
|
1,763
|
33,669
|
|||||||||||||||
Other
operating expense
|
(6,298 | ) | (46,406 | ) | (1,679 | ) | (42,070 | ) | (96,453 | ) | ||||||||||
Administrative
and overhead expense allocation
|
(5,383 | ) | (29,958 | ) | (349 | ) |
35,690
|
-
|
||||||||||||
Income
taxes
|
(14,077 | ) | (16,663 | ) | (2,228 | ) |
28
|
(32,940 | ) | |||||||||||
Net
income (loss)
|
$ |
20,424
|
$ |
33,222
|
$ | (6,066 | ) | $ |
12,800
|
$ |
60,380
|
|||||||||
At
September 30, 2007:
|
||||||||||||||||||||
Investment
securities
|
$ |
-
|
$ |
-
|
$ |
849,105
|
$ |
-
|
$ |
849,105
|
||||||||||
Loans
and leases (including loans held for sale)
|
2,202,618
|
1,901,306
|
-
|
-
|
4,103,924
|
|||||||||||||||
Other
|
133,774
|
253,814
|
272,165
|
34,842
|
694,595
|
|||||||||||||||
Total
assets
|
$ |
2,336,392
|
$ |
2,155,120
|
$ |
1,121,270
|
$ |
34,842
|
$ |
5,647,624
|
||||||||||
At
December 31, 2006:
|
||||||||||||||||||||
Investment
securities
|
$ |
-
|
$ |
-
|
$ |
898,358
|
$ |
-
|
$ |
898,358
|
||||||||||
Loans
and leases (including loans held for sale)
|
2,058,257
|
1,814,416
|
-
|
-
|
3,872,673
|
|||||||||||||||
Other
|
154,691
|
258,534
|
265,696
|
37,240
|
716,161
|
|||||||||||||||
Total
assets
|
$ |
2,212,948
|
$ |
2,072,950
|
$ |
1,164,054
|
$ |
37,240
|
$ |
5,487,192
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||||
September
30,
|
September
30,
|
||||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||||
Return
on average assets
|
0.65 | % | 1.56 | % | 1.22 | % | 1.54 | % | |||||||
Return
on average shareholders' equity
|
4.80 | % | 11.52 | % | 8.84 | % | 11.50 | % | |||||||
Return
on average tangible equity
|
8.35 | % | 21.44 | % | 15.45 | % | 21.92 | % | |||||||
Basic
earnings per share
|
$ |
0.30
|
$ |
0.67
|
$ |
1.65
|
$ |
1.98
|
|||||||
Diluted
earnings per share
|
$ |
0.30
|
$ |
0.67
|
$ |
1.64
|
$ |
1.96
|
Three
Months Ended
|
Three
Months Ended
|
|||||||||||||||||||||||
September
30, 2007
|
September
30, 2006
|
|||||||||||||||||||||||
Average
|
Average
|
Amount
|
Average
|
Average
|
Amount
|
|||||||||||||||||||
(Dollars
in thousands)
|
Balance
|
Yield/Rate
|
of
Interest
|
Balance
|
Yield/Rate
|
of
Interest
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest
earning assets:
|
||||||||||||||||||||||||
Interest-bearing
deposits in other banks
|
$ |
6,362
|
5.14
|
%
|
$ |
82
|
$ |
6,537
|
4.77
|
%
|
$ |
79
|
||||||||||||
Federal
funds sold & securities purchased
|
||||||||||||||||||||||||
under
agreements to resell
|
9,761
|
5.10
|
125
|
2,332
|
5.26
|
31
|
||||||||||||||||||
Taxable
investment securities (1)
|
726,971
|
4.66
|
8,469
|
797,742
|
4.33
|
8,639
|
||||||||||||||||||
Tax-exempt
investment securities (1)
|
152,714
|
5.41
|
2,066
|
135,519
|
5.58
|
1,888
|
||||||||||||||||||
Loans
and leases, net of unearned income (2)
|
4,025,552
|
7.73
|
78,325
|
3,722,846
|
7.73
|
72,444
|
||||||||||||||||||
Federal
Home Loan Bank stock
|
48,797
|
0.60
|
73
|
48,797
|
-
|
-
|
||||||||||||||||||
Total
interest earning assets
|
4,970,157
|
7.13
|
89,140
|
4,713,773
|
7.01
|
83,081
|
||||||||||||||||||
Nonearning
assets
|
604,942
|
573,797
|
||||||||||||||||||||||
Total
assets
|
$ |
5,575,099
|
$ |
5,287,570
|
||||||||||||||||||||
Liabilities
and Shareholders' Equity
|
||||||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ |
437,150
|
0.13
|
%
|
$ |
139
|
$ |
424,611
|
0.13
|
% | $ |
136
|
||||||||||||
Savings
and money market deposits
|
1,216,407
|
2.06
|
6,321
|
1,170,817
|
1.68
|
4,969
|
||||||||||||||||||
Time
deposits under $100,000
|
621,215
|
3.91
|
6,127
|
578,530
|
3.17
|
4,628
|
||||||||||||||||||
Time
deposits $100,000 and over
|
1,018,347
|
4.60
|
11,798
|
878,472
|
4.26
|
9,422
|
||||||||||||||||||
Short-term
borrowings
|
22,279
|
5.39
|
302
|
85,843
|
5.65
|
1,221
|
||||||||||||||||||
Long-term
debt
|
816,761
|
5.29
|
10,900
|
735,814
|
4.83
|
8,949
|
||||||||||||||||||
Total
interest-bearing liabilities
|
4,132,159
|
3.42
|
35,587
|
3,874,087
|
3.00
|
29,325
|
||||||||||||||||||
Noninterest-bearing
deposits
|
599,995
|
613,886
|
||||||||||||||||||||||
Other
liabilities
|
84,128
|
84,285
|
||||||||||||||||||||||
Shareholders'
equity
|
758,817
|
715,312
|
||||||||||||||||||||||
Total
liabilities and shareholders' equity
|
$ |
5,575,099
|
$ |
5,287,570
|
||||||||||||||||||||
Net
interest income
|
$ |
53,553
|
$ |
53,756
|
||||||||||||||||||||
Net
interest margin
|
4.29 | % | 4.54 | % |
Nine
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||
September
30, 2007
|
September
30, 2006
|
|||||||||||||||||||||||
Average
|
Average
|
Amount
|
Average
|
Average
|
Amount
|
|||||||||||||||||||
(Dollars
in thousands)
|
Balance
|
Yield/Rate
|
of
Interest
|
Balance
|
Yield/Rate
|
of
Interest
|
||||||||||||||||||
Assets
|
||||||||||||||||||||||||
Interest
earning assets:
|
||||||||||||||||||||||||
Interest-bearing
deposits in other banks
|
$ |
4,063
|
5.14
|
%
|
$ |
156
|
$ |
9,595
|
4.26
|
%
|
$ |
306
|
||||||||||||
Federal
funds sold & securities purchased
|
||||||||||||||||||||||||
under
agreements to resell
|
6,304
|
5.18
|
244
|
2,384
|
4.75
|
85
|
||||||||||||||||||
Taxable
investment securities (1)
|
734,260
|
4.75
|
26,140
|
800,546
|
4.37
|
26,260
|
||||||||||||||||||
Tax-exempt
investment securities (1)
|
153,973
|
5.42
|
6,263
|
135,516
|
5.79
|
5,880
|
||||||||||||||||||
Loans
and leases, net of unearned income (2)
|
3,970,276
|
7.79
|
231,561
|
3,651,835
|
7.49
|
204,603
|
||||||||||||||||||
Federal
Home Loan Bank stock
|
48,797
|
0.53
|
195
|
48,797
|
-
|
-
|
||||||||||||||||||
Total
interest earning assets
|
4,917,673
|
7.19
|
264,559
|
4,648,673
|
6.81
|
237,134
|
||||||||||||||||||
Nonearning
assets
|
593,007
|
580,529
|
||||||||||||||||||||||
Total
assets
|
$ |
5,510,680
|
$ |
5,229,202
|
||||||||||||||||||||
Liabilities
and Shareholders' Equity
|
||||||||||||||||||||||||
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
Interest-bearing
demand deposits
|
$ |
437,345
|
0.13
|
%
|
$ |
418
|
$ |
426,299
|
0.13
|
%
|
$ |
428
|
||||||||||||
Savings
and money market deposits
|
1,218,547
|
2.06
|
18,773
|
1,129,638
|
1.38
|
11,667
|
||||||||||||||||||
Time
deposits under $100,000
|
629,146
|
3.85
|
18,114
|
580,574
|
2.90
|
12,598
|
||||||||||||||||||
Time
deposits $100,000 and over
|
966,326
|
4.58
|
33,068
|
858,420
|
3.85
|
24,731
|
||||||||||||||||||
Short-term
borrowings
|
27,037
|
5.49
|
1,110
|
51,302
|
5.30
|
2,035
|
||||||||||||||||||
Long-term
debt
|
797,665
|
5.28
|
31,484
|
754,295
|
4.64
|
26,163
|
||||||||||||||||||
Total
interest-bearing liabilities
|
4,076,066
|
3.38
|
102,967
|
3,800,528
|
2.73
|
77,622
|
||||||||||||||||||
Noninterest-bearing
deposits
|
589,518
|
642,502
|
||||||||||||||||||||||
Other
liabilities
|
87,179
|
85,970
|
||||||||||||||||||||||
Shareholders'
equity
|
757,917
|
700,202
|
||||||||||||||||||||||
Total
liabilities and shareholders' equity
|
$ |
5,510,680
|
$ |
5,229,202
|
||||||||||||||||||||
Net
interest income
|
$ |
161,592
|
$ |
159,512
|
||||||||||||||||||||
Net
interest margin
|
4.39 | % | 4.58 | % | ||||||||||||||||||||
(1) At
amortized cost.
|
||||||||||||||||||||||||
(2) Includes
nonaccrual loans.
|
September
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
(Dollars
in thousands)
|
||||||||
Nonperforming
Assets
|
||||||||
Nonaccrual
loans:
|
||||||||
Commercial,
financial and agricultural
|
$ |
818
|
$ |
3,934
|
||||
Real
estate:
|
||||||||
Construction
|
29,596
|
-
|
||||||
Mortgage-residential
|
118
|
5,024
|
||||||
Mortgage-commercial
|
293
|
-
|
||||||
Total
nonperforming assets
|
30,825
|
8,958
|
||||||
Accruing
loans delinquent for 90 days or more:
|
||||||||
Commercial,
financial and agricultural
|
501
|
88
|
||||||
Real
estate:
|
||||||||
Mortgage-residential
|
115
|
364
|
||||||
Consumer
|
286
|
457
|
||||||
Total
accruing loans delinquent for 90 days or more
|
902
|
909
|
||||||
Restructured
loans still accruing interest:
|
||||||||
Total
restructured loans still accruing interest
|
-
|
-
|
||||||
Total
nonperforming assets, accruing loans delinquent
for 90
|
||||||||
days
or more and restructured loans still accruing
interest
|
$ |
31,727
|
$ |
9,867
|
||||
Total
nonperforming assets as a percentage of loans
and other real
estate
|
0.75 | % | 0.23 | % | ||||
Total
nonperforming assets and accruing loans delinquent
for 90
|
||||||||
days
or more as a percentage of loans and other real
estate
|
0.78 | % | 0.25 | % | ||||
Total
nonperforming assets, accruing loans delinquent
for 90
|
||||||||
days
or more and restructured loans still accruing
interest as
a
|
||||||||
percentage
of loans and other real estate
|
0.78 | % | 0.25 | % |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
(Dollars
in thousands)
|
2007
|
2006
|
2007
|
2006
|
||||||||||||
|
||||||||||||||||
Allowance
for loan and lease losses:
|
||||||||||||||||
Balance
at beginning of period
|
$ |
51,409
|
$ |
52,914
|
$ |
52,280
|
$ |
52,936
|
||||||||
Provision
for loan and lease losses
|
21,200
|
300
|
24,800
|
1,350
|
||||||||||||
Charge-offs:
|
||||||||||||||||
Commercial,
financial and agricultural
|
14
|
127
|
3,573
|
496
|
||||||||||||
Real
estate:
|
||||||||||||||||
Mortgage-residential
|
-
|
-
|
358
|
-
|
||||||||||||
Consumer
|
821
|
1,138
|
2,582
|
3,084
|
||||||||||||
Leases
|
-
|
1
|
-
|
19
|
||||||||||||
Total
charge-offs
|
835
|
1,266
|
6,513
|
3,599
|
||||||||||||
Recoveries:
|
||||||||||||||||
Commercial,
financial and agricultural
|
260
|
112
|
319
|
229
|
||||||||||||
Real
estate:
|
||||||||||||||||
Construction
|
-
|
-
|
7
|
-
|
||||||||||||
Mortgage-residential
|
15
|
37
|
210
|
79
|
||||||||||||
Mortgage-commercial
|
3
|
3
|
9
|
9
|
||||||||||||
Consumer
|
465
|
506
|
1,403
|
1,599
|
||||||||||||
Leases
|
-
|
5
|
2
|
8
|
||||||||||||
Total
recoveries
|
743
|
663
|
1,950
|
1,924
|
||||||||||||
Net
charge-offs
|
92
|
603
|
4,563
|
1,675
|
||||||||||||
Balance
at end of period
|
$ |
72,517
|
$ |
52,611
|
$ |
72,517
|
$ |
52,611
|
||||||||
Annualized
ratio of net charge-offs to average loans
|
0.01 | % | 0.06 | % | 0.15 | % | 0.06 | % |
|
Actual
|
Minimum
Required for
Capital Adequacy
Purposes
|
Minimum
Required to
be
Well
Capitalized
|
|||||||||||||||||||||
(Dollars
in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Company
|
||||||||||||||||||||||||
At
September 30, 2007:
|
||||||||||||||||||||||||
Leverage
capital
|
$ |
562,494
|
10.7 | % | $ |
209,847
|
4.0 | % | $ |
262,309
|
5.0 | % | ||||||||||||
Tier
1 risk-based capital
|
562,494
|
12.1
|
186,193
|
4.0
|
279,289
|
6.0
|
||||||||||||||||||
Total
risk-based capital
|
620,880
|
13.3
|
372,386
|
8.0
|
465,482
|
10.0
|
||||||||||||||||||
At
December 31, 2006:
|
||||||||||||||||||||||||
Leverage
capital
|
$ |
553,254
|
10.9 | % | $ |
202,538
|
4.0 | % | $ |
253,173
|
5.0 | % | ||||||||||||
Tier
1 risk-based capital
|
553,254
|
12.3
|
179,292
|
4.0
|
268,939
|
6.0
|
||||||||||||||||||
Total
risk-based capital
|
608,192
|
13.6
|
358,585
|
8.0
|
448,231
|
10.0
|
||||||||||||||||||
Central
Pacific Bank
|
||||||||||||||||||||||||
At
September 30, 2007:
|
||||||||||||||||||||||||
Leverage
capital
|
$ |
552,637
|
10.5 | % | $ |
210,882
|
4.0 | % | $ |
263,602
|
5.0 | % | ||||||||||||
Tier
1 risk-based capital
|
552,637
|
11.9
|
185,778
|
4.0
|
278,668
|
6.0
|
||||||||||||||||||
Total
risk-based capital
|
610,895
|
13.2
|
371,557
|
8.0
|
464,446
|
10.0
|
||||||||||||||||||
At
December 31, 2006:
|
||||||||||||||||||||||||
Leverage
capital
|
$ |
526,228
|
10.4 | % | $ |
203,325
|
4.0 | % | $ |
254,157
|
5.0 | % | ||||||||||||
Tier
1 risk-based capital
|
526,228
|
11.8
|
178,769
|
4.0
|
268,154
|
6.0
|
||||||||||||||||||
Total
risk-based capital
|
581,166
|
13.0
|
357,538
|
8.0
|
446,923
|
10.0
|
·
|
current
economic conditions and their estimated
effects on specific
borrowers;
|
·
|
an
evaluation of the existing relationships
among loans, potential loan
losses and the present level of the allowance for loan
losses;
|
·
|
results
of examinations of our loan portfolios
by regulatory agencies;
and
|
·
|
management’s
internal review of the loan
portfolio.
|
Period
|
Total
Number of Shares Purchased
|
Average
Price Paid Per Share
|
Total
Number of Shares Purchased as Part of Publicly
Announced Plans or Programs
(1)
|
Maximum
Number of Shares that May Yet be Purchased Under
the Plans or Programs
(1)
|
|||||||||
July
1, 2007 through July 31, 2007
|
72,000
|
$ |
31.62
|
72,000
|
1,728,200
|
||||||||
August
1, 2007 through August 31, 2007
|
296,800
|
29.64
|
296,800
|
1,431,400
|
|||||||||
September
1, 2007 through September 30, 2007
|
249,100
|
31.38
|
249,100
|
1,182,300
|
(1)
|
On
April 26, 2007, the Company’s board of directors authorized the repurchase
and retirement of up to 600,000 shares under
a repurchase plan that will
remain in effect through April 30, 2008 (the
“2007 Repurchase Plan”). On
July 25, 2007, the Company’s board of directors authorized the repurchase
of an additional 1,500,000 shares. Repurchases
under the 2007 Repurchase
Plan may be made from time to time on the open
market or in privately
negotiated transactions.
|
Exhibit
No.
|
Document
|
3.1
|
Restated
Articles of Incorporation of the Registrant (1)
|
3.2
|
Bylaws
of the Registrant, as amended (2)
|
4.1
|
Rights
Agreement dated as of August 26, 1998 between
Registrant and the Rights
Agent (3)
|
10.1
|
License
and Service Agreement dated July 30, 1997 by
and between the Registrant
and Fiserv Solutions, Inc. (4)
|
10.2
|
Split
Dollar Life Insurance Plan (5)(15)
|
10.3
|
Central
Pacific Bank Supplemental Executive Retirement
Plan
(6)(15)
|
10.4
|
The
Registrant's 1997 Stock Option Plan, as amended
(6)(15)
|
10.5
|
The
Registrant’s Directors’ Deferred Compensation Plan
(7)(15)
|
10.6
|
The
Registrant’s 2004 Stock Compensation Plan (8)(15)
|
10.7
|
Supplemental
Retirement Agreement dated February 28, 2002
by and between Central
Pacific Bank and Naoaki Shibuya (9)(15)
|
10.8
|
Supplemental
Retirement Agreement dated June 28, 2002 by and
between Central Pacific
Bank and Joichi Saito (10)(15)
|
10.9
|
Employment
Agreement, effective as of September 14, 2004,
by and between the
Registrant and Clinton L. Arnoldus (11)(15)
|
10.10
|
Employment
Agreement, effective as of September 14, 2004,
by and between the
Registrant and Ronald K. Migita (11)(15)
|
10.11
|
Employment
Agreement, effective as of September 14, 2004,
by and between the
Registrant and Neal K. Kanda (11)(15)
|
10.12
|
Employment
Agreement, effective as of September 14, 2004,
by and between the
Registrant and Blenn A. Fujimoto (11)(15)
|
10.13
|
Employment
Agreement, effective as of September 14, 2004,
by and between the
Registrant and Denis K. Isono (11)(15)
|
10.14
|
Employment
Agreement, effective as of September 14, 2004,
by and between the
Registrant and Dean K. Hirata (12)(15)
|
10.15
|
Form
of Restricted Stock Award Agreement (8)(15)
|
10.16
|
Supplemental
Executive Retirement Agreement for Blenn A. Fujimoto,
effective July 1,
2005 (13)(15)
|
10.17
|
Supplemental
Executive Retirement Agreement for Dean K. Hirata,
effective July 1, 2005
(13)(15)
|
10.18
|
Retirement
Agreement of Neal K. Kanda dated February 22, 2006
(14)
(15)
|
10.19
|
The
Registrant’s Long-Term Executive Incentive Plan (15)
(16)
|
10.20
|
The
Registrant’s 2004 Annual Executive Incentive Plan (15)
(18)
|
Exhibit
No.
|
Document
|
10.21 |
The
Registrant’s Direct Purchase and Dividend Reinvestment Plan
(incorporated
herein by reference to the Registrant’s Registration Statement on Form S-3
(See File No. 333-138517).
|
10.22
|
Cease
and Desist Order between Central Pacific Bank,
Federal Deposit Insurance
Corporation and Hawaii Division of Financial
Institutions, dated November
29, 2006 (19).
|
14.1
|
The
Registrant’s Code of Conduct and Ethics (17)
|
14.2
|
The
Registrant’s Code of Conduct and Ethics for Senior Financial
Officers
(18)
|
31.1
|
Rule
13a-14(a) Certification of Chief Executive Officer
in accordance with
Section 302 of the Sarbanes-Oxley Act of 2002
*
|
31.2
|
Rule
13a-14(a) Certification of Chief Financial Officer
in accordance with
Section 302 of the Sarbanes-Oxley Act of 2002
*
|
32.1
|
Section
1350 Certification of Chief Executive Officer
in accordance with Section
906 of the Sarbanes-Oxley Act of 2002 **
|
32.2
|
Section
1350 Certification of Chief Financial Officer
in accordance with Section
906 of the Sarbanes-Oxley Act of 2002
**
|
(1)
|
Filed
as Exhibit 3.1 to the Registrant’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2005, filed with the Securities
and Exchange
Commission on August 9, 2005.
|
(2)
|
Filed
as Exhibit 3.2 to the Registrant’s Current Report on Form 8-K, filed with
the Securities and Exchange Commission on October
31,
2006.
|
(3)
|
Filed
as Exhibit 4.1 to the Registrant's Registration
Statement on Form 8-A,
filed with the Securities and Exchange Commission
on September 16,
1998.
|
(4)
|
Filed
as Exhibit 10.11 to the Registrant's Annual Report
on Form 10-K for the
fiscal year ended December 31, 1998, filed with
the Securities and
Exchange Commission on March 30,
1999.
|
5)
|
Filed
as Exhibit 10.16 to the Registrant's Annual Report
on Form 10-K for the
fiscal year ended December 31, 1991, filed with
the Securities and
Exchange Commission on March 27, 1992.
|
(6)
|
Filed
as Exhibits 10.8 and 10.9 to the Registrant's
Annual Report on Form 10-K
for the fiscal year ended December 31, 1996,
filed with the Securities and
Exchange Commission on March 28,
1997.
|
(7)
|
Filed
as Exhibit 10.12 to the Registrant's Annual
Report on Form 10-K for the
fiscal year ended December 31, 2000, filed
with the Securities and
Exchange Commission on March 30,
2001.
|
(8)
|
Filed
as Exhibits 10.8 and 10.20 to the Registrant’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2004,
filed with the Securities and
Exchange Commission on March 16,
2005.
|
(9)
|
Filed
as Exhibit 10 to the Registrant's Quarterly
Report on Form 10-Q for the
quarter ended March 31, 2002, filed with the
Securities and Exchange
Commission on May 10, 2002.
|
(10)
|
Filed
as Exhibit 10.13 to the Registrant's Annual Report
on Form 10-K for the
fiscal year ended December 31, 2002, filed with
the Securities and
Exchange Commission on March 14, 2003.
|
(11)
|
Filed
as Exhibits 10.3, 10.4, 10.5, 10.7 and 10.8
to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended September
30, 2004, filed with
the Securities and Exchange Commission on November
9,
2004.
|
(12)
|
Filed
as Exhibit 10.9 to Amendment No. 1 to the Registrant’s Quarterly Report on
Form 10-Q for the quarter ended September 30,
2004, filed with the
Securities and Exchange Commission on December
13,
2004.
|
(13)
|
Filed
as Exhibits 99.1 and 99.2 to the Registrant’s Current Report on Form 8-K,
filed with the Securities and Exchange Commission
on January 31,
2006.
|
(14)
|
Filed
as Exhibit 99.1 to the Registrant’s Current Report on Form 8-K, filed with
the Securities and Exchange Commission on February
24,
2006.
|
(15)
|
Denotes
management contract or compensation plan or
arrangement.
|
(16)
|
Filed
as Exhibit 10.19 to the Registrant’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2005, filed with
the Securities and
Exchange Commission on March 15,
2006.
|
(17)
|
Filed
as Exhibit 14.1 to the Registrant’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2005, filed with
the Securities and
Exchange Commission on March 15,
2006.
|
(18)
|
Filed
as Exhibit 14.2 to the Registrant’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2005, filed with
the Securities and
Exchange Commission on March 15,
2006.
|
(19)
|
Filed
as Exhibit 99.2 to the Registrant’s Current Report on Form 8-K, filed with
the Securities and Exchange Commission on December
1,
2006.
|
CENTRAL
PACIFIC FINANCIAL CORP.
|
|
(Registrant)
|
|
Date: November
9, 2007
|
/s/
Clint Arnoldus
|
Clint
Arnoldus
|
|
President
and Chief Executive Officer
|
|
Date: November
9, 2007
|
/s/
Dean K. Hirata
|
Dean
K. Hirata
|
|
Vice
Chairman and
|
|
Chief
Financial Officer
|
Exhibit
No.
|
Description
|
31.1
|
Certification
of the Chief Executive Officer Pursuant to Section
302 of the
Sarbanes-Oxley Act of 2002
|
31.2
|
Certification
of the Principal Financial and Accounting Officer
Pursuant to Section 302
of the Sarbanes-Oxley Act of 2002
|
32.1
|
Certification
of the Chief Executive Officer Pursuant to 18
U.S.C. Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley
Act of
2002
|
32.2
|
Certification
of the Principal Financial and Accounting Officer
Pursuant to 18 U.S.C.
Section 1350, as Adopted Pursuant to Section
906 of the Sarbanes-Oxley Act
of 2002
|