EX-99.1 2 exhibit99-1erq32016.htm EXHIBIT 99.1

Exhibit

Central Pacific Financial Corp. Reports $11.5 Million Third Quarter Earnings

October 27, 2016

Page 1

Exhibit 99

			FOR IMMEDIATE RELEASE
Investor Contact:	Isaac Okita	Media Contact:	Wayne Kirihara
	VP, Treasury Manager		EVP, Chief Marketing Officer
	(808) 544-3626		(808) 544-3687
	isaac.okita@centralpacificbank.com		wayne.kirihara@centralpacificbank.com

NEWS RELEASE

CENTRAL PACIFIC FINANCIAL CORP. REPORTS $11.5 MILLION

THIRD QUARTER EARNINGS

HONOLULU, HI, October 27, 2016 – Central Pacific Financial Corp. (NYSE: CPF), (the “Company”), today reported net income for the third quarter of 2016 of $11.5 million, or $0.37 per diluted share, compared to net income in the third quarter of 2015 of $12.2 million, or $0.38 per diluted share, and net income in the second quarter of 2016 of $12.1 million, or $0.39 per diluted share.

"Our continued loan and deposit growth and improved asset quality have resulted in another quarter of solid core earnings," said Catherine Ngo, President and CEO. "We are pleased to be in a position to continue enhancing shareholder value through strong operating performance, coupled with stock repurchases and dividends."

On October 26, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.16 per share on the Company’s outstanding common shares. The dividend will be payable on December 15, 2016 to shareholders of record at the close of business on November 30, 2016.

During the third quarter of 2016, the Company repurchased 144,000 shares of common stock at a total cost of $3.5 million. The average cost per share was $24.60. During the nine months ended September 30, 2016, the Company repurchased a total of 636,922 shares of common stock, or approximately 2.0% of its common stock outstanding as of December 31, 2015 for a total cost of $14.1 million. The Company's remaining repurchase authority under its common stock repurchase program at September 30, 2016 was $15.9 million.

Since reinstating quarterly cash dividends in 2013, the Company has returned $308.8 million in cash to its shareholders, in the form of cash dividends totaling $60.0 million, and through the repurchase of 11,805,423 shares of common stock at a total cost of $248.9 million, excluding fees and expenses.

Central Pacific Financial Corp. Reports $11.5 Million Third Quarter Earnings

October 27, 2016

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Significant Highlights and Third Quarter Results

• Reported net income of $11.5 million, compared to net income in the third quarter of 2015 of $12.2 million and net income in the second quarter of 2016 of $12.1 million.

• Loans and leases increased by $338.2 million, or 10.9% from the prior year period, and increased by $35.7 million, or 1.0%, during the quarter to $3.44 billion at September 30, 2016, with growth in our commercial mortgage, home equity, construction, and commercial loan portfolios of $20.1 million, $16.9 million, $9.8 million, and $3.9 million, respectively, partially offset by decreases in the consumer and residential mortgage loan portfolios of $8.3 million and $6.7 million, respectively.

• Total deposits increased by $288.1 million, or 6.8% from the prior year period, and increased by $113.4 million, or 2.6% during the quarter to $4.52 billion at September 30, 2016. Core deposits increased by $219.9 million, or 6.5% from the prior year period, and increased by $48.1 million, or 1.3% during the quarter to $3.62 billion at September 30, 2016.

• Recorded a credit to the provision for loan and lease losses of $0.7 million in the third quarter of 2016, compared to a credit of $3.6 million in the third quarter of 2015 and a credit of $1.4 million in the second quarter of 2016.

• Our efficiency ratio improved to 66.04% in the third quarter of 2016, compared to 67.55% in the third quarter of 2015 and 66.69% in the second quarter of 2016.

• Nonperforming assets decreased by $3.2 million to $11.7 million, or 0.22% of total assets at September 30, 2016, from $14.9 million, or 0.28% of total assets at June 30, 2016.

• Maintained a strong capital position with leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios at the holding company of 10.9%, 14.6%, 15.9%, and 12.5%, respectively, as of September 30, 2016. Central Pacific Bank also maintained a strong capital position with leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios of 10.6%, 14.1%, 15.3%, and 14.1%, respectively, as of September 30, 2016. The Company and the Bank's capital ratios continue to be in excess of the levels required for a “well-capitalized” regulatory designation under Basel III.

Earnings Highlights

Net interest income for the third quarter of 2016 was $39.4 million, compared to $37.8 million in the year-ago quarter and $39.6 million in the second quarter of 2016.  Net interest margin was 3.25%, compared to 3.31% in the year-ago quarter and 3.29% in the second quarter of 2016. The increase in net interest income from the year-ago quarter was primarily attributable to average loan portfolio balances increasing by $345.1 million. This increase was partially offset by a 16 basis point decrease in average yields earned on investment securities balances, combined with a 6 basis point increase in rates paid on our average total interest-bearing deposits, both of which contributed to the decrease in the net interest margin from the year-ago quarter. The sequential quarter decrease in the net interest income and net interest margin was primarily attributable to a 13 basis point decrease in average yields earned on investment securities portfolio balances due to higher premium amortization on mortgage backed securities. The decrease in net interest income was also attributable to a $30.7 million decrease in average investment securities portfolio balances. These decreases in net interest income were offset by average loan portfolio balances increasing by $38.1 million.

In the third quarter of 2016, a credit to the provision for loan and lease losses of $0.7 million was recorded, compared to a credit of $3.6 million in the year-ago quarter and a credit of $1.4 million in the second quarter of 2016. After this credit, and as discussed below, the allowance for loan and lease losses ("ALLL"), as a percentage of total loans and leases, was 1.73% at September 30, 2016.

Other operating income for the third quarter of 2016 totaled $11.0 million, compared to $9.8 million in the year-ago quarter and $11.7 million in the second quarter of 2016. The increase from the year-ago quarter was primarily due to higher net gains on sales of residential mortgage loans of $0.7 million, combined with unrealized losses on loans held for sale and interest rate locks (included in other) of $0.6 million recorded in the year-ago quarter. The sequential quarter decrease was primarily due to lower income from bank-owned life insurance of $0.7 million, primarily attributable to death benefit proceeds of $0.5 million recorded last quarter.

Central Pacific Financial Corp. Reports $11.5 Million Third Quarter Earnings

October 27, 2016

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Other operating expense for the third quarter of 2016 totaled $33.3 million, compared to $32.2 million in the year-ago quarter and $34.2 million in the second quarter of 2016. The increase from the year-ago quarter was primarily attributable to a credit to the reserve for residential mortgage repurchase losses (included in other) of $0.9 million recorded in the year-ago quarter, higher advertising expense of $0.3 million, and higher salaries and employee benefits of $0.3 million. The sequential quarter decrease was primarily due to lower amortization of mortgage servicing rights of $0.7 million and lower salaries and employee benefits of $0.4 million, partially offset by higher advertising expense of $0.3 million.

The efficiency ratio for the third quarter of 2016 was 66.04%, an improvement from 67.55% in the year-ago quarter and consistent with 66.69% in the second quarter of 2016. The decrease in the efficiency ratio from the year-ago quarter was attributable to the growth in net interest income, combined with the increase in other operating income, offset by higher other operating expenses in the current quarter as described above. On a sequential quarter basis, the efficiency ratio remained stable as the improvement in other operating expenses was largely offset by lower net interest income and lower other operating income.

In the third quarter of 2016, the Company recorded income tax expense of $6.4 million, compared to income tax expense of $6.9 million in the year-ago quarter and $6.3 million in the second quarter of 2016. The effective tax rate for the third quarter of 2016 was 35.8%, compared to 36.1% in the year-ago quarter and 34.3% in the second quarter of 2016. The sequential quarter increase in the effective tax rate was primarily attributable to the $0.5 million in death benefit proceeds from bank-owned life insurance received last quarter, which is tax-exempt. As of September 30, 2016, the Company’s net deferred tax assets totaled $52.9 million, compared to $84.2 million and $58.3 million at September 30, 2015 and June 30, 2016, respectively. The decrease in the net deferred tax assets is primarily due to utilization of net operating loss carryforwards to offset taxable income and income tax credit carryforwards.

Balance Sheet Highlights

Total assets at September 30, 2016, of $5.32 billion increased by $298.1 million from September 30, 2015, and increased by $37.0 million from June 30, 2016.

Total loans and leases at September 30, 2016 of $3.44 billion increased by $338.2 million and $35.7 million from September 30, 2015 and June 30, 2016, respectively.  The growth in total loans and leases from September 30, 2015 was primarily due to an increase in the commercial mortgage, home equity, consumer, residential mortgage, and construction loan portfolios of $125.7 million, $75.8 million, $51.8 million, $50.9 million, and $32.8 million, respectively. The growth in total loans and leases from the second quarter of 2016 was primarily due to an increase in the commercial mortgage, home equity, construction, and commercial loan portfolios of $20.1 million, $16.9 million, $9.8 million, and $3.9 million, respectively, partially offset by a decrease in the consumer and residential mortgage loan portfolios of $8.3 million and $6.7 million, respectively.

Total deposits at September 30, 2016 of $4.52 billion increased by $288.1 million from September 30, 2015, and increased by $113.4 million from June 30, 2016.  Core deposits, which include demand deposits, savings and money market deposits, and time deposits less than $100,000, totaled $3.62 billion at September 30, 2016.  This represents an increase of $219.9 million from September 30, 2015 and an increase of $48.1 million from June 30, 2016.  Changes in total deposits from September 30, 2015 included net increases in savings and money market deposits of $96.0 million, noninterest-bearing demand deposits of $81.8 million, time deposits $100,000 and over of $68.2 million, and interest-bearing demand deposits of $63.2 million, offset by a net decrease in time deposits less than $100,000 of $21.1 million. Changes in total deposits during the quarter included net increases in time deposits $100,000 and over of $65.4 million, noninterest-bearing demand deposits of $41.9 million, savings and money market deposits of $8.3 million, and interest-bearing demand deposits of $2.5 million, offset by net decreases in time deposits less than $100,000 of $4.7 million.

Total shareholders’ equity was $519.5 million at September 30, 2016, compared to $503.3 million and $517.6 million at September 30, 2015 and June 30, 2016, respectively. The sequential quarter increase reflects net income of $11.5 million, partially offset by common stock dividends paid of $5.0 million, repurchases of common stock under the Company's common stock repurchase program of $3.5 million, and a decrease in unrealized gains on investment securities of $2.0 million.

Asset Quality

Nonperforming assets at September 30, 2016 totaled $11.7 million, or 0.22% of total assets, compared to $14.0 million, or 0.28% of total assets at September 30, 2015, and $14.9 million, or 0.28% of total assets at June 30, 2016.  The sequential-quarter decrease in nonperforming assets reflects payments totaling $2.3 million, the sale of two Hawaii residential mortgage assets totaling $1.0 million and the return of three Hawaii residential mortgage loans totaling $0.4 million and one Hawaii commercial mortgage loan

Central Pacific Financial Corp. Reports $11.5 Million Third Quarter Earnings

October 27, 2016

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of $0.2 million to accrual status, partially offset by the addition of five Hawaii residential mortgage loans totaling $0.4 million and one Hawaii commercial mortgage loan of $0.2 million to nonaccrual status.

Loans delinquent for 90 days or more still accruing interest totaled $0.4 million at September 30, 2016, compared to $0.1 million and $0.3 million at September 30, 2015 and June 30, 2016, respectively.  In addition, loans delinquent for 30 days or more still accruing interest totaled $5.6 million at September 30, 2016, compared to $3.1 million at September 30, 2015 and $4.1 million at June 30, 2016.

Net charge-offs in the third quarter of 2016 totaled $0.6 million, compared to net recoveries of $3.4 million in the third quarter of 2015, and net charge-offs of $3 thousand in the second quarter of 2016.

The ALLL, as a percentage of total loans and leases, was 1.73% at September 30, 2016, compared to 2.15% at September 30, 2015 and 1.79% at June 30, 2016.  The ALLL, as a percentage of nonperforming assets, was 509.03% at September 30, 2016, compared to 475.99% at September 30, 2015 and 407.62% at June 30, 2016.  The ALLL, as a percentage of nonaccrual loans, was 546.06% at September 30, 2016, compared to 551.32% at September 30, 2015 and 437.94% at June 30, 2016.

Capital Levels

At September 30, 2016, the Company’s leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios were 10.9%, 14.6%, 15.9%, and 12.5%, respectively.  At June 30, 2016, the Company’s leverage capital, tier 1 risk-based capital, total risk-based capital, and common equity tier 1 ratios were 10.8%, 14.6%, 15.9%, and 12.5%, respectively. The Company’s capital ratios continue to exceed the levels required to be considered a “well-capitalized” institution for regulatory purposes under Basel III.

Non-GAAP Financial Measures

This press release contains certain references to financial measures that have been adjusted to exclude certain expenses and other specified items.  These financial measures differ from comparable measures calculated and presented in accordance with accounting principles generally accepted in the United States of America (“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

The Company’s management will host a conference call today at 1:00 p.m. Eastern Time (7:00 a.m. Hawaii Time) to discuss the quarterly results.  Individuals are encouraged to listen to the live webcast of the presentation by visiting the investor relations page of the Company’s website at http://ir.centralpacificbank.com.  Alternatively, investors may participate in the live call by dialing 1-877-505-7644.  A playback of the call will be available through November 27, 2016 by dialing 1-877-344-7529 (passcode: 10094342) and on the Company’s website.

About Central Pacific Financial Corp.

Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $5.3 billion in assets.  Central Pacific Bank, its primary subsidiary, operates 35 branches and 102 ATMs in the state of Hawaii, as of September 30, 2016.  For additional information, please visit the Company’s website at http://www.centralpacificbank.com.

Central Pacific Financial Corp. Reports $11.5 Million Third Quarter Earnings

October 27, 2016

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Forward-Looking Statements

This document may contain forward-looking statements concerning projections of revenues, income/loss, earnings/loss per share, capital expenditures, dividends, capital structure, or other financial items, plans and objectives of management for future operations, future economic performance, or 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,” “expects,” “anticipates,” “forecasts,” “intends,” “hopes,” “should,” “estimates,” or words of similar meaning.  While the Company believes 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 effect of, and our failure to comply with any regulatory orders we are or may become subject to; oversupply of inventory and adverse conditions in the Hawaii and California real estate markets and any weakness in the construction industry;  adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates,  deterioration in asset quality, and losses in our loan portfolio; the impact of local, national, and international economies and events (including political events, acts of war or terrorism, natural disasters such as wildfires, tsunamis and earthquakes) on the Company’s business and operations and on tourism, the military and other major industries operating within the Hawaii market and any other markets in which the Company does business; deterioration or malaise in economic conditions, including destabilizing factors in the financial industry and deterioration of the real estate market, as well as the impact from any declining levels of consumer and business confidence in the state of the economy in general and in financial institutions in particular;  our ability to continue making progress on our recovery plan; the impact of regulatory action on the Company and Central Pacific Bank and legislation affecting the banking industry; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, other regulatory reform, and any related rules and regulations on our business operations and competitiveness; the costs and effects of legal and regulatory developments, including legal proceedings or regulatory or other governmental inquiries and proceedings and the resolution thereof, and the results of regulatory examinations or reviews;  the effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation, interest rate, securities market and monetary fluctuations;  negative trends in our market capitalization and adverse changes in the price of the Company’s common shares; changes in consumer spending, borrowings and savings habits; technological changes and developments; changes in the competitive environment among financial holding companies and other financial service providers; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; our ability to attract and retain skilled executives and employees; changes in our organization, compensation and benefit plans; and our success at managing the risks involved in any of the foregoing items. 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 and, in particular, the discussion of “Risk Factors” set forth therein. The Company does not update any of its forward-looking statements except as required by law.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)	TABLE 1

		Three Months Ended																				Nine Months Ended
(Dollars in thousands,		Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,				Sep 30,
except for per share amounts)		2016				2016				2016				2015				2015				2016				2015
CONDENSED INCOME STATEMENT
Net interest income		$	39,426			$	39,609			$	39,211			$	38,194			$	37,805			$	118,246			$	111,334
Provision (credit) for loan and lease losses		(743		)		(1,382		)		(747		)		(1,958		)		(3,647		)		(2,872		)		(13,713		)
Net interest income after provision (credit) for loan and lease losses		40,169				40,991				39,958				40,152				41,452				121,118				125,047
Total other operating income		10,975				11,692				10,165				9,841				9,829				32,832				29,143
Total other operating expense		33,286				34,215				32,875				32,576				32,175				100,376				98,651
Income before taxes		17,858				18,468				17,248				17,417				19,106				53,574				55,539
Income tax expense		6,392				6,331				6,067				6,485				6,900				18,790				20,603
Net income		11,466				12,137				11,181				10,932				12,206				34,784				34,936
Basic earnings per common share		$	0.37			$	0.39			$	0.36			$	0.35			$	0.39			$	1.12			$	1.07
Diluted earnings per common share		0.37				0.39				0.35				0.34				0.38				1.11				1.06
Dividends declared per common share (1)		0.16				0.14				0.14				0.46				0.12				0.44				0.36
PERFORMANCE RATIOS
Return on average assets (2)		0.87		%		0.93		%		0.87		%		0.87		%		0.98		%		0.89		%		0.94		%
Return on average shareholders’ equity (2)		8.81				9.51				8.85				8.68				9.91				9.05				8.98
Efficiency ratio (3)		66.04				66.69				66.58				67.82				67.55				66.44				70.23
Net interest margin (2)		3.25				3.29				3.33				3.30				3.31				3.29				3.31
Dividend payout ratio (1) (4)		43.24				35.90				40.00				135.29				31.58				39.64				33.96
Average shareholders’ equity to average assets		9.89				9.73				9.81				9.97				9.90				9.81				10.51
SELECTED AVERAGE BALANCES
Average loans and leases, including loans held for sale		$	3,415,505			$	3,377,362			$	3,258,872			$	3,142,895			$	3,070,384			$	3,350,817			$	3,002,785
Average interest-earning assets		4,902,151				4,890,398				4,786,256				4,676,931				4,611,234				4,859,757				4,561,621
Average assets		5,266,588				5,248,088				5,148,744				5,049,232				4,974,154				5,221,306				4,937,535
Average deposits		4,486,064				4,459,019				4,468,070				4,327,908				4,242,043				4,471,106				4,188,466
Average interest-bearing liabilities		3,532,334				3,565,530				3,492,748				3,370,560				3,346,484				3,530,212				3,323,612
Average shareholders’ equity		520,757				510,753				505,330				503,570				492,683				512,311				518,909

		Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,
(dollars in thousands)		2016				2016				2016				2015				2015
REGULATORY CAPITAL
Central Pacific Financial Corp.
Leverage capital		$	567,891			$	560,674			$	547,195			$	532,787			$	533,984
Tier 1 risk-based capital		567,891				560,674				547,195				532,787				533,984
Total risk-based capital		616,858				609,012				594,801				579,651				579,182
Common equity tier 1 capital		487,097				481,209				472,171				472,698				474,169
Central Pacific Bank
Leverage capital		545,578				529,754				533,307				518,617				515,625
Tier 1 risk-based capital		545,578				529,754				533,307				518,617				515,625
Total risk-based capital		594,407				577,966				580,715				565,231				560,569
Common equity tier 1 capital		545,578				529,754				533,307				518,617				515,625
REGULATORY CAPITAL RATIOS
Central Pacific Financial Corp.
Leverage capital ratio		10.9		%		10.8		%		10.8		%		10.7		%		10.9		%
Tier 1 risk-based capital ratio		14.6				14.6				14.5				14.4				15.0
Total risk-based capital ratio		15.9				15.9				15.8				15.7				16.3
Common equity tier 1 capital ratio		12.5				12.5				12.5				12.8				13.3
Central Pacific Bank
Leverage capital ratio		10.6				10.2				10.5				10.4				10.5
Tier 1 risk-based capital ratio		14.1				13.8				14.2				14.1				14.5
Total risk-based capital ratio		15.3				15.1				15.4				15.3				15.8
Common equity tier 1 capital ratio		14.1				13.8				14.2				14.1				14.5

		Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,
(dollars in thousands, except for per share amounts)		2016				2016				2016				2015				2015
BALANCE SHEET
Loans and leases		$	3,439,654			$	3,403,947			$	3,308,968			$	3,211,532			$	3,101,463
Total assets		5,319,947				5,282,967				5,242,202				5,131,288				5,021,833
Total deposits		4,518,578				4,405,142				4,496,602				4,433,439				4,230,503
Long-term debt		92,785				92,785				92,785				92,785				92,785
Total shareholders’ equity		519,466				517,607				509,358				494,614				503,261
Total shareholders’ equity to total assets		9.76		%		9.80		%		9.72		%		9.64		%		10.02		%
Tangible common equity to tangible assets (5)		9.67		%		9.69		%		9.60		%		9.51		%		9.88		%
ASSET QUALITY
Allowance for loan and lease losses		$	59,384			$	60,764			$	62,149			$	63,314			$	66,644
Non-performing assets		11,666				14,907				15,944				16,230				14,001
Allowance to loans and leases outstanding		1.73		%		1.79		%		1.88		%		1.97		%		2.15		%
Allowance to non-performing assets		509.03				407.62				389.80				390.10				475.99
PER SHARE OF COMMON STOCK
Book value per common share		$	16.79			$	16.68			$	16.34			$	15.77			$	16.06
Tangible book value per common share		16.62				16.48				16.13				15.54				15.81
Closing market price per common share		25.19				23.60				21.77				22.02				20.97
(1) Dividends declared in the fourth quarter of 2015 include a special cash dividend of $0.32 per share.
(2) Annualized.
(3) Efficiency ratio is defined as total operating expense divided by total revenue (net interest income and total other operating income).
(4) Dividend payout ratio is defined as dividends declared per share divided by diluted earnings per share.
(5) The tangible common equity ratio is a non-GAAP measure which should be read in conjunction with the Company’s GAAP financial information. Comparison of our ratio with those of other companies may not be possible because other companies may calculate the ratio differently. See Reconciliation of Non-GAAP Financial Measures in Table 2.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)	TABLE 2

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2016				2016				2016				2015				2015
Tangible Common Equity Ratio:
Total shareholders’ equity		$	519,466			$	517,607			$	509,358			$	494,614			$	503,261
Less: Other intangible assets		(5,349		)		(6,018		)		(6,686		)		(7,355		)		(8,023		)
Tangible common equity		$	514,117			$	511,589			$	502,672			$	487,259			$	495,238
Total assets		$	5,319,947			$	5,282,967			$	5,242,202			$	5,131,288			$	5,021,833
Less: Other intangible assets		(5,349		)		(6,018		)		(6,686		)		(7,355		)		(8,023		)
Tangible assets		$	5,314,598			$	5,276,949			$	5,235,516			$	5,123,933			$	5,013,810
Tangible common equity to tangible assets		9.67		%		9.69		%		9.60		%		9.51		%		9.88		%

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)	TABLE 3

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands, except share data)		2016				2016				2016				2015				2015
ASSETS
Cash and due from banks		$	79,647			$	76,482			$	85,495			$	71,797			$	69,628
Interest-bearing deposits in other banks		23,727				14,184				7,180				8,397				14,376
Investment securities:
Available for sale		1,262,224				1,260,593				1,299,176				1,272,255				1,272,382
Held to maturity, fair value of: $230,529 at September 30, 2016, $238,066 at June 30, 2016, $243,072 at March 31, 2016, $244,136 at December 31, 2015, and $254,540 at September 30, 2015		226,573				234,230				241,597				247,917				254,719
Total investment securities		1,488,797				1,494,823				1,540,773				1,520,172				1,527,101
Loans held for sale		12,755				9,921				11,270				14,109				9,786
Loans and leases		3,439,654				3,403,947				3,308,968				3,211,532				3,101,463
Less allowance for loan and lease losses		59,384				60,764				62,149				63,314				66,644
Net loans and leases		3,380,270				3,343,183				3,246,819				3,148,218				3,034,819
Premises and equipment, net		48,242				48,370				48,322				49,161				47,822
Accrued interest receivable		14,554				15,339				14,818				14,898				13,779
Investment in unconsolidated subsidiaries		7,011				7,204				5,627				6,157				6,489
Other real estate owned		791				1,032				1,260				1,962				1,913
Mortgage servicing rights		15,638				15,778				16,800				17,797				18,174
Other intangible assets		5,349				6,018				6,686				7,355				8,023
Bank-owned life insurance		155,233				154,678				154,592				153,967				153,449
Federal Home Loan Bank stock		12,173				15,218				10,420				8,606				12,048
Other assets		75,760				80,737				92,140				108,692				104,426
Total assets		$	5,319,947			$	5,282,967			$	5,242,202			$	5,131,288			$	5,021,833
LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand		$	1,194,557			$	1,152,666			$	1,140,741			$	1,145,244			$	1,112,761
Interest-bearing demand		849,128				846,589				849,880				824,895				785,936
Savings and money market		1,379,484				1,371,163				1,465,524				1,399,093				1,283,517
Time		1,095,409				1,034,724				1,040,457				1,064,207				1,048,289
Total deposits		4,518,578				4,405,142				4,496,602				4,433,439				4,230,503
Short-term borrowings		150,000				226,000				106,000				69,000				155,000
Long-term debt		92,785				92,785				92,785				92,785				92,785
Other liabilities		39,092				41,424				37,438				41,425				40,284
Total liabilities		4,800,455				4,765,351				4,732,825				4,636,649				4,518,572
Equity:
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding none at: September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015, and September 30, 2015		—				—				—				—				—
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 30,930,598 at September 30, 2016, 31,036,895 at June 30, 2016, 31,164,287 at March 31, 2016, 31,361,452 at December 31, 2015, and 31,330,644 at September 30, 2015		534,856				538,434				544,029				548,878				548,518
Surplus		84,207				83,482				83,534				82,847				81,528
Accumulated deficit		(116,225		)		(122,730		)		(130,511		)		(137,314		)		(133,821		)
Accumulated other comprehensive income (loss)		16,628				18,421				12,306				203				7,036
Total shareholders' equity		519,466				517,607				509,358				494,614				503,261
Non-controlling interest		26				9				19				25				—
Total equity		519,492				517,616				509,377				494,639				503,261
Total liabilities and equity		$	5,319,947			$	5,282,967			$	5,242,202			$	5,131,288			$	5,021,833

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)	TABLE 4

		Three Months Ended																				Nine Months Ended
		Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,				Sep 30,
(Dollars in thousands, except per share data)		2016				2016				2016				2015				2015				2016				2015
Interest income:
Interest and fees on loans and leases		$	33,384			$	32,878			$	31,793			$	30,565			$	30,148			$	98,055			$	88,322
Interest and dividends on investment securities:
Taxable interest		7,296				7,953				8,396				8,282				8,260				23,645				24,687
Tax-exempt interest		995				995				996				1,006				1,008				2,986				3,016
Dividends		10				10				10				10				9				30				26
Interest on deposits in other banks		17				11				17				7				6				45				28
Dividends on Federal Home Loan Bank stock		63				23				37				46				11				123				40
Total interest income		41,765				41,870				41,249				39,916				39,442				124,884				116,119
Interest expense:
Interest on deposits:
Demand		126				123				111				101				104				360				298
Savings and money market		254				269				263				238				230				786				678
Time		1,044				957				898				647				568				2,899				1,665
Interest on short-term borrowings		160				177				50				59				73				387				195
Interest on long-term debt		755				735				716				677				662				2,206				1,949
Total interest expense		2,339				2,261				2,038				1,722				1,637				6,638				4,785
Net interest income		39,426				39,609				39,211				38,194				37,805				118,246				111,334
Provision (credit) for loan and lease losses		(743		)		(1,382		)		(747		)		(1,958		)		(3,647		)		(2,872		)		(13,713		)
Net interest income after provision for loan and lease losses		40,169				40,991				39,958				40,152				41,452				121,118				125,047
Other operating income:
Service charges on deposit accounts		1,954				1,908				1,964				1,999				1,947				5,826				5,830
Loan servicing fees		1,357				1,362				1,362				1,399				1,407				4,081				4,257
Other service charges and fees		2,821				3,028				2,767				2,772				2,803				8,616				8,689
Income from fiduciary activities		880				857				840				825				854				2,577				2,518
Equity in earnings of unconsolidated subsidiaries		182				184				90				88				165				456				490
Fees on foreign exchange		129				126				148				98				126				403				352
Investment securities gains (losses)		—				—				—				—				—				—				(1,866		)
Income from bank-owned life insurance		555				1,232				625				465				434				2,412				1,569
Loan placement fees		140				133				46				146				202				319				574
Net gains on sales of residential loans		2,212				1,845				1,466				1,332				1,551				5,523				4,775
Net gains on sales of foreclosed assets		57				241				308				189				252				606				379
Other (refer to Table 5)		688				776				549				528				88				2,013				1,576
Total other operating income		10,975				11,692				10,165				9,841				9,829				32,832				29,143
Other operating expense:
Salaries and employee benefits		17,459				17,850				16,937				16,895				17,193				52,246				49,534
Net occupancy		3,588				3,557				3,314				3,981				3,547				10,459				10,451
Equipment		852				769				811				858				775				2,432				2,617
Amortization of other intangible assets		1,690				2,423				2,178				1,512				1,683				6,291				5,347
Communication expense		948				919				959				822				895				2,826				2,661
Legal and professional services		1,699				1,723				1,613				1,671				1,808				5,035				5,669
Computer software expense		2,217				2,222				2,704				2,067				2,286				7,143				6,764
Advertising expense		772				433				634				964				502				1,839				1,586
Foreclosed asset expense		72				49				15				154				3				136				332
Other (refer to Table 5)		3,989				4,270				3,710				3,652				3,483				11,969				13,690
Total other operating expense		33,286				34,215				32,875				32,576				32,175				100,376				98,651
Income before income taxes		17,858				18,468				17,248				17,417				19,106				53,574				55,539
Income tax expense		6,392				6,331				6,067				6,485				6,900				18,790				20,603
Net income		$	11,466			$	12,137			$	11,181			$	10,932			$	12,206			$	34,784			$	34,936
Per common share data:
Basic earnings per share		$	0.37			$	0.39			$	0.36			$	0.35			$	0.39			$	1.12			$	1.07
Diluted earnings per share		0.37				0.39				0.35				0.34				0.38				1.11				1.06
Cash dividends declared		0.16				0.14				0.14				0.46				0.12				0.44				0.36
Basic weighted average shares outstanding		30,943,756				31,060,593				31,263,433				31,317,627				31,330,964				31,088,729				32,548,479
Diluted weighted average shares outstanding		31,142,128				31,262,525				31,506,307				31,727,478				31,749,880				31,277,402				32,932,347

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Other Operating Income and Other Operating Expense - Other
(Unaudited)	TABLE 5

		Three Months Ended																				Nine Months Ended
		Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,				Sep 30,
(Dollars in thousands)		2016				2016				2016				2015				2015				2016				2015
Income recovered on nonaccrual loans previously charged-off		$	423			$	301			$	157			$	104			$	262			$	881			$	690
Other recoveries		24				249				21				17				244				294				533
Unrealized gains (losses) on loans-held-for-sale and interest rate locks		13				(29		)		(79		)		54				(646		)		(95		)		(378		)
Commissions on sale of checks		84				86				86				79				86				256				246
Other		144				169				364				274				142				677				485
Total other operating income - Other		$	688			$	776			$	549			$	528			$	88			$	2,013			$	1,576

		Three Months Ended																				Nine Months Ended
		Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,				September 30,
(Dollars in thousands)		2016				2016				2016				2015				2015				2016				2015
Charitable contributions		$	156			$	184			$	218			$	103			$	179			$	558			$	2,456
FDIC insurance assessment		430				563				639				622				685				1,632				2,084
Miscellaneous loan expenses		358				306				254				325				314				918				1,023
ATM and debit card expenses		451				448				428				407				365				1,327				1,131
Amortization of investments in low-income housing tax credit partnerships		259				258				257				258				258				774				820
Armored car expenses		258				201				201				254				213				660				642
Entertainment and promotions		198				223				231				405				191				652				654
Stationery and supplies		242				172				267				230				381				681				796
Directors’ fees and expenses		215				199				205				101				156				619				561
Provision (credit) for residential mortgage loan repurchase losses		—				(36		)		(351		)		(596		)		(883		)		(387		)		(756		)
Increase (decrease) to the reserve for unfunded commitments		37				20				44				(223		)		255				101				(48		)
Other		1,385				1,732				1,317				1,766				1,369				4,434				4,327
Total other operating expense - Other		$	3,989			$	4,270			$	3,710			$	3,652			$	3,483			$	11,969			$	13,690

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)
(Unaudited)	TABLE 6

		Three Months Ended											Three Months Ended											Three Months Ended
		September 30, 2016											June 30, 2016											September 30, 2015
		Average				Average							Average				Average							Average				Average
(Dollars in thousands)		Balance				Yield/Rate			Interest				Balance				Yield/Rate			Interest				Balance				Yield/Rate			Interest
ASSETS
Interest-earning assets:
Interest-bearing deposits in other banks		$	14,140			0.49	%		$	17			$	8,946			0.48	%		$	11			$	10,277			0.23	%		$	6
Investment securities, excluding valuation allowance:
Taxable		1,288,569				2.27			7,306				1,318,579				2.42			7,963				1,345,120				2.46			8,269
Tax-exempt		172,743				3.54			1,531				173,396				3.53			1,530				175,340				3.54			1,551
Total investment securities		1,461,312				2.42			8,837				1,491,975				2.55			9,493				1,520,460				2.58			9,820
Loans and leases, incl. loans held for sale		3,415,505				3.90			33,384				3,377,362				3.91			32,878				3,070,384				3.91			30,148
Federal Home Loan Bank stock		11,194				2.25			63				12,115				0.76			23				10,113				0.42			11
Total interest-earning assets		4,902,151				3.44			42,301				4,890,398				3.48			42,405				4,611,234				3.46			39,985
Noninterest-earning assets		364,437											357,690											362,920
Total assets		$	5,266,588										$	5,248,088										$	4,974,154
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits		$	851,775			0.06	%		$	126			$	843,611			0.06	%		$	123			$	803,682			0.05	%		$	104
Savings and money market deposits		1,367,459				0.07			254				1,435,754				0.08			269				1,277,480				0.07			230
Time deposits under $100,000		202,719				0.37			190				207,371				0.38			195				223,550				0.36			203
Time deposits $100,000 and over		892,188				0.38			854				837,619				0.37			762				842,362				0.17			365
Total interest-bearing deposits		3,314,141				0.17			1,424				3,324,355				0.16			1,349				3,147,074				0.11			902
Short-term borrowings		125,408				0.50			160				148,390				0.48			177				106,625				0.27			73
Long-term debt		92,785				3.24			755				92,785				3.19			735				92,785				2.83			662
Total interest-bearing liabilities		3,532,334				0.26			2,339				3,565,530				0.26			2,261				3,346,484				0.19			1,637
Noninterest-bearing deposits		1,171,923											1,134,664											1,094,969
Other liabilities		41,558											37,127											40,018
Total liabilities		4,745,815											4,737,321											4,481,471
Shareholders’ equity		520,757											510,753											492,683
Non-controlling interest		16											14											—
Total equity		520,773											510,767											492,683
Total liabilities and equity		$	5,266,588										$	5,248,088										$	4,974,154
Net interest income									$	39,962										$	40,144										$	38,348
Interest rate spread						3.18	%										3.22	%										3.27	%
Net interest margin						3.25	%										3.29	%										3.31	%

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)
(Unaudited)	TABLE 7

		Nine Months Ended											Nine Months Ended
		September 30, 2016											September 30, 2015
		Average				Average							Average				Average
(Dollars in thousands)		Balance				Yield/Rate			Interest				Balance				Yield/Rate			Interest
ASSETS
Interest-earning assets:
Interest-bearing deposits in other banks		$	12,365			0.48	%		$	45			$	15,133			0.24	%		$	28
Investment securities, excluding valuation allowance:
Taxable		1,312,866				2.40			23,675				1,338,836				2.46			24,713
Tax-exempt		173,392				3.53			4,593				176,335				3.51			4,640
Total investment securities		1,486,258				2.54			28,268				1,515,171				2.58			29,353
Loans and leases, including loans held for sale		3,350,817				3.91			98,055				3,002,785				3.93			88,322
Federal Home Loan Bank stock		10,317				1.59			123				28,532				0.19			40
Total interest earning assets		4,859,757				3.47			126,491				4,561,621				3.45			117,743
Noninterest-earning assets		361,549											375,914
Total assets		$	5,221,306										$	4,937,535
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits		$	841,002			0.06	%		$	360			$	801,304			0.05	%		$	298
Savings and money market deposits		1,410,159				0.07			786				1,261,534				0.07			678
Time deposits under $100,000		207,222				0.38			582				230,354				0.37			637
Time deposits $100,000 and over		872,900				0.35			2,317				841,876				0.16			1,028
Total interest-bearing deposits		3,331,283				0.16			4,045				3,135,068				0.11			2,641
Short-term borrowings		106,144				0.49			387				95,759				0.27			195
Long-term debt		92,785				3.18			2,206				92,785				2.81			1,949
Total interest-bearing liabilities		3,530,212				0.25			6,638				3,323,612				0.19			4,785
Noninterest-bearing deposits		1,139,823											1,053,398
Other liabilities		38,942											41,616
Total liabilities		4,708,977											4,418,626
Shareholders’ equity		512,311											518,909
Non-controlling interest		18											—
Total equity		512,329											518,909
Total liabilities and equity		$	5,221,306										$	4,937,535
Net interest income									$	119,853										$	112,958
Interest rate spread						3.22	%										3.26	%
Net interest margin						3.29	%										3.31	%

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Loans and Leases by Geographic Distribution
(Unaudited)	TABLE 8

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2016				2016				2016				2015				2015
HAWAII:
Commercial, financial and agricultural		$	367,527			$	360,102			$	358,432			$	339,738			$	335,919
Real estate:
Construction		105,234				95,355				98,203				81,655				72,071
Residential mortgage		1,160,741				1,167,428				1,147,446				1,134,325				1,109,847
Home equity		351,256				334,347				311,756				301,980				275,439
Commercial mortgage		742,584				716,452				646,013				642,845				616,085
Consumer:
Automobiles		125,556				116,809				112,106				110,285				104,395
Other consumer		163,703				161,065				155,749				162,963				159,173
Leases		756				843				936				1,028				1,123
Total loans and leases		3,017,357				2,952,401				2,830,641				2,774,819				2,674,052
Allowance for loan and lease losses		(50,948		)		(52,375		)		(52,068		)		(54,141		)		(56,150		)
Net loans and leases		$	2,966,409			$	2,900,026			$	2,778,573			$	2,720,678			$	2,617,902
U.S. MAINLAND:
Commercial, financial and agricultural		$	140,457			$	143,965			$	176,659			$	181,348			$	170,624
Real estate:
Construction		2,994				3,073				3,151				3,230				3,309
Residential mortgage		—				—				—				—				—
Home equity		—				—				—				—				—
Commercial mortgage		120,133				126,132				127,023				117,904				120,900
Consumer:
Automobiles		91,970				103,098				95,124				79,917				88,579
Other consumer		66,743				75,278				76,370				54,314				43,999
Leases		—				—				—				—				—
Total loans and leases		422,297				451,546				478,327				436,713				427,411
Allowance for loan and lease losses		(8,436		)		(8,389		)		(10,081		)		(9,173		)		(10,494		)
Net loans and leases		$	413,861			$	443,157			$	468,246			$	427,540			$	416,917
TOTAL:
Commercial, financial and agricultural		$	507,984			$	504,067			$	535,091			$	521,086			$	506,543
Real estate:
Construction		108,228				98,428				101,354				84,885				75,380
Residential mortgage		1,160,741				1,167,428				1,147,446				1,134,325				1,109,847
Home equity		351,256				334,347				311,756				301,980				275,439
Commercial mortgage		862,717				842,584				773,036				760,749				736,985
Consumer:
Automobiles		217,526				219,907				207,230				190,202				192,974
Other consumer		230,446				236,343				232,119				217,277				203,172
Leases		756				843				936				1,028				1,123
Total loans and leases		3,439,654				3,403,947				3,308,968				3,211,532				3,101,463
Allowance for loan and lease losses		(59,384		)		(60,764		)		(62,149		)		(63,314		)		(66,644		)
Net loans and leases		$	3,380,270			$	3,343,183			$	3,246,819			$	3,148,218			$	3,034,819

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Deposits
(Unaudited)	TABLE 9

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2016				2016				2016				2015				2015
Noninterest-bearing demand		$	1,194,557			$	1,152,666			$	1,140,741			$	1,145,244			$	1,112,761
Interest-bearing demand		849,128				846,589				849,880				824,895				785,936
Savings and money market		1,379,484				1,371,163				1,465,524				1,399,093				1,283,517
Time deposits less than $100,000		198,055				202,733				207,757				212,946				219,134
Core deposits		3,621,224				3,573,151				3,663,902				3,582,178				3,401,348
Government time deposits		708,034				645,134				644,877				664,756				640,708
Other time deposits $100,000 and over		189,320				186,857				187,823				186,505				188,447
Total time deposits $100,000 and over		897,354				831,991				832,700				851,261				829,155
Total deposits		$	4,518,578			$	4,405,142			$	4,496,602			$	4,433,439			$	4,230,503

CENTRAL PACIFIC FINANCIAL CORP AND SUBSIDIARIES
Nonperforming Assets, Past Due and Restructured Loans
(Unaudited)	TABLE 10

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2016				2016				2016				2015				2015
Nonaccrual loans (including loans held for sale):
Commercial, financial and agricultural		$	2,005			$	2,132			$	2,244			$	1,044			$	3,056
Real estate:
Residential mortgage		5,424				8,059				5,227				5,464				5,988
Home equity		479				611				300				666				313
Commercial mortgage		2,967				3,073				6,913				7,094				2,731
Total nonaccrual loans		10,875				13,875				14,684				14,268				12,088
Other real estate owned ("OREO"):
Residential mortgage		791				1,032				1,260				1,962				1,913
Total OREO		791				1,032				1,260				1,962				1,913
Total nonperforming assets ("NPAs")		11,666				14,907				15,944				16,230				14,001
Loans delinquent for 90 days or more:
Real estate:
Residential mortgage		200				—				—				—				—
Home equity		—				135				656				—				—
Consumer:
Automobiles		131				78				125				151				130
Other consumer		106				56				—				122				—
Total loans delinquent for 90 days or more		437				269				781				273				130
Restructured loans still accruing interest:
Commercial, financial and agricultural		—				—				—				—				327
Real estate:
Construction		51				745				776				809				841
Residential mortgage		15,818				15,729				16,197				16,224				17,592
Commercial mortgage		1,979				3,020				3,128				3,224				2,253
Total restructured loans still accruing interest		17,848				19,494				20,101				20,257				21,013
Total NPAs, loans delinquent for 90 days or more and restructured loans still accruing interest		$	29,951			$	34,670			$	36,826			$	36,760			$	35,144
Total nonaccrual loans as a percentage of loans and leases		0.32		%		0.41		%		0.44		%		0.44		%		0.39		%
Total NPAs as a percentage of loans and leases and OREO		0.34		%		0.44		%		0.48		%		0.51		%		0.45		%
Total NPAs and loans delinquent for 90 days or more as a percentage of loans and leases and OREO		0.35		%		0.45		%		0.51		%		0.51		%		0.46		%
Total NPAs, loans delinquent for 90 days or more, and restructured loans still accruing interest as a percentage of loans and leases and OREO		0.87		%		1.02		%		1.11		%		1.14		%		1.13		%
Quarter-to-quarter changes in NPAs:
Balance at beginning of quarter		$	14,907			$	15,944			$	16,230			$	14,001			$	32,108
Additions		650				4,334				1,303				2,992				681
Reductions:
Payments		(2,309		)		(927		)		(754		)		(439		)		(4,002		)
Return to accrual status		(578		)		(3,717		)		(133		)		(216		)		(10,799		)
Sales of NPAs		(1,032		)		(865		)		(702		)		(71		)		(4,007		)
Charge-offs/valuation adjustments		28				138				—				(37		)		20
Total reductions		(3,891		)		(5,371		)		(1,589		)		(763		)		(18,788		)
Balance at end of quarter		$	11,666			$	14,907			$	15,944			$	16,230			$	14,001

CENTRAL PACIFIC FINANCIAL CORP AND SUBSIDIARIES
Allowance for Loan and Lease Losses
(Unaudited)	TABLE 11

		Three Months Ended																				Nine Months Ended
		Sep 30,				Jun 30,				Mar 31,				Dec 31,				Sep 30,				September 30,
(Dollars in thousands)		2016				2016				2016				2015				2015				2016				2015
Allowance for loan and lease losses:
Balance at beginning of period		$	60,764			$	62,149			$	63,314			$	66,644			$	66,924			$	63,314			$	74,040
Provision (credit) for loan and lease losses		(743		)		(1,382		)		(747		)		(1,958		)		(3,647		)		(2,872		)		(13,713		)
Charge-offs:
Commercial, financial and agricultural		465				272				352				554				170				1,089				5,104
Real estate:
Home equity		—				—				—				—				46				—				110
Commercial mortgage		—				—				—				838				—				—				—
Consumer:
Automobiles		409				392				381				433				299				1,182				1,046
Other consumer		940				743				731				288				575				2,414				2,883
Total charge-offs		1,814				1,407				1,464				2,113				1,090				4,685				9,143
Recoveries:
Commercial, financial and agricultural		555				720				349				411				504				1,624				4,377
Real estate:
Construction		91				9				9				10				283				109				870
Residential mortgage		173				173				34				91				191				380				1,030
Home equity		4				4				3				5				5				11				1,051
Commercial mortgage		128				14				13				14				3,130				155				6,705
Consumer:
Automobiles		115				365				194				183				209				674				765
Other consumer		111				119				444				27				108				674				635
Leases		—				—				—				—				27				—				27
Total recoveries		1,177				1,404				1,046				741				4,457				3,627				15,460
Net charge-offs (recoveries)		637				3				418				1,372				(3,367		)		1,058				(6,317		)
Balance at end of period		$	59,384			$	60,764			$	62,149			$	63,314			$	66,644			$	59,384			$	66,644
Average loans and leases, net of unearned		$	3,415,505			$	3,377,362			$	3,258,872			$	3,142,895			$	3,070,384			$	3,350,817			$	3,002,785
Annualized ratio of net charge-offs (recoveries) to average loans and leases		0.07		%		—		%		0.05		%		0.17		%		(0.44		)%		0.04		%		(0.28		)%
Ratio of allowance for loan and lease losses to loans and leases		1.73		%		1.79		%		1.88		%		1.97		%		2.15		%		1.73		%		2.15		%