XML 49 R34.htm IDEA: XBRL DOCUMENT
v3.8.0.1

PARENT COMPANY AND REGULATORY RESTRICTIONS | 12 Months Ended
--- | ---
Dec. 31, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract] |
PARENT COMPANY AND REGULATORY RESTRICTIONS | 27. PARENT COMPANY AND REGULATORY RESTRICTIONS At December 31, 2017, the accumulated deficit of the parent company, Central Pacific Financial Corp., included $396.0 million of equity in undistributed losses of Central Pacific Bank. Central Pacific Bank, as a Hawaii state-chartered bank, may only pay dividends to the extent it has retained earnings as defined under Hawaii banking law ("Statutory Retained Earnings"), which differs from GAAP retained earnings. As of December 31, 2017, the bank had Statutory Retained Earnings of $85.6 million. For further information, see Note 14 - Equity. Section 131 of the Federal Deposit Insurance Corporation Improvement Act ("FDICIA") required the Board of Governors of the Federal Reserve System, FDIC, and the Comptroller of the Currency (collectively, the "Agencies") to develop a mechanism to take prompt corrective action to resolve the problems of insured depository institutions. The final rules to implement FDICIA’s Prompt Corrective Action provisions established minimum regulatory capital standards to determine an insured depository institution’s capital category. However, the Agencies may impose higher minimum standards on individual institutions or may downgrade an institution from one capital category to a lower capital category because of safety and soundness concerns. The Prompt Corrective Action provisions impose certain restrictions on institutions that are under-capitalized. The restrictions become increasingly more severe as an institution’s capital category declines from under-capitalized to critically under-capitalized. The following table sets forth actual and required capital and capital ratios for the Company and the bank, as well as the minimum capital adequacy requirements applicable generally to all financial institutions as of the dates indicated. The Company’s and the bank’s leverage capital, Tier 1, total risk-based capital ratios, and common equity Tier 1 (CET1) risk based capital as of December 31, 2017 were above the levels required for a "well-capitalized" regulatory designation.
| Actual |  | Minimum required for capital adequacy purposes |  | Minimum required to be well-capitalized
| Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
| (Dollars in thousands)
Company |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leverage capital | $ | 578,607 |  |  | 10.4 | % |  | $ | 223,646 |  |  | 4.0 | % |  | $ | 279,557 |  |  | 5.0 | %
Tier 1 risk-based capital | 578,607 |  |  | 14.7 |  |  | 236,721 |  |  | 6.0 |  |  | 315,628 |  |  | 8.0 |
Total risk-based capital | 628,068 |  |  | 15.9 |  |  | 315,628 |  |  | 8.0 |  |  | 394,535 |  |  | 10.0 |
CET1 risk-based capital | 490,861 |  |  | 12.4 |  |  | 177,541 |  |  | 4.5 |  |  | 256,448 |  |  | 6.5 |
As of December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leverage capital | 562,460 |  |  | 10.6 |  |  | 211,383 |  |  | 4.0 |  |  | 264,229 |  |  | 5.0 |
Tier 1 risk-based capital | 562,460 |  |  | 14.2 |  |  | 237,157 |  |  | 6.0 |  |  | 316,209 |  |  | 8.0 |
Total risk-based capital | 612,202 |  |  | 15.5 |  |  | 316,209 |  |  | 8.0 |  |  | 395,261 |  |  | 10.0 |
CET1 risk-based capital | 485,268 |  |  | 12.3 |  |  | 177,868 |  |  | 4.5 |  |  | 256,920 |  |  | 6.5 |
Central Pacific Bank |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As of December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leverage capital | 565,412 |  |  | 10.1 |  |  | 223,431 |  |  | 4.0 |  |  | 279,289 |  |  | 5.0 |
Tier 1 risk-based capital | 565,412 |  |  | 14.4 |  |  | 236,401 |  |  | 6.0 |  |  | 315,201 |  |  | 8.0 |
Total risk-based capital | 614,732 |  |  | 15.6 |  |  | 315,201 |  |  | 8.0 |  |  | 394,002 |  |  | 10.0 |
CET1 risk-based capital | 565,412 |  |  | 14.4 |  |  | 177,301 |  |  | 4.5 |  |  | 256,101 |  |  | 6.5 |
As of December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leverage capital | 541,577 |  |  | 10.3 |  |  | 211,135 |  |  | 4.0 |  |  | 263,918 |  |  | 5.0 |
Tier 1 risk-based capital | 541,577 |  |  | 13.7 |  |  | 236,806 |  |  | 6.0 |  |  | 315,741 |  |  | 8.0 |
Total risk-based capital | 591,185 |  |  | 15.0 |  |  | 315,741 |  |  | 8.0 |  |  | 394,677 |  |  | 10.0 |
CET1 risk-based capital | 541,577 |  |  | 13.7 |  |  | 177,604 |  |  | 4.5 |  |  | 256,540 |  |  | 6.5 |
Condensed financial statements of the parent company are as follows: CENTRAL PACIFIC FINANCIAL CORP. CONDENSED BALANCE SHEETS
| December 31,
| 2017 |  | 2016
| (Dollars in thousands)
Assets |  |  |  |  |
Cash and cash equivalents | $ | 13,931 |  |  | $ | 19,500 |
Investment securities available for sale | 825 |  |  | 660 |
Investment in subsidiary bank, at equity in underlying net assets | 572,101 |  |  | 569,898 |
Accrued interest receivable and other assets | 9,577 |  |  | 10,682 |
Total assets | $ | 596,434 |  |  | $ | 600,740 |
Liabilities and Equity |  |  |  |  |
Long-term debt | $ | 92,785 |  |  | $ | 92,785 |
Other liabilities | 3,614 |  |  | 3,280 |
Total liabilities | 96,399 |  |  | 96,065 |
Shareholders’ equity: |  |  |  |  |
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding none at December 31, 2017 and 2016 | — |  |  | — |
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding 30,024,222 and 30,796,243 shares at December 31, 2017 and 2016, respectively | 503,988 |  |  | 530,932 |
Surplus | 86,098 |  |  | 84,180 |
Accumulated deficit | (89,036 | ) |  | (108,941 | )
Accumulated other comprehensive income (loss) | (1,039 | ) |  | (1,521 | )
Total shareholders’ equity | 500,011 |  |  | 504,650 |
Non-controlling interest | $ | 24 |  |  | $ | 25 |
Total equity | $ | 500,035 |  |  | $ | 504,675 |
Total liabilities and equity | $ | 596,434 |  |  | $ | 600,740 |
CENTRAL PACIFIC FINANCIAL CORP. CONDENSED STATEMENTS OF INCOME
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
| (Dollars in thousands)
Income: |  |  |  |  |  |  |  |
Dividends from subsidiary bank | $ | 43,000 |  |  | $ | 29,965 |  |  | $ | 111,765 |
Interest income: |  |  |  |  |  |  |  |
Interest from subsidiary bank | 6 |  |  | 6 |  |  | 9 |
Other income | 150 |  |  | 100 |  |  | 91 |
Total income | 43,156 |  |  | 30,071 |  |  | 111,865 |
Expense: |  |  |  |  |  |  |  |
Interest on long-term debt | 3,479 |  |  | 3,005 |  |  | 2,626 |
Other expenses | 2,002 |  |  | 2,739 |  |  | 2,551 |
Total expenses | 5,481 |  |  | 5,744 |  |  | 5,177 |
Gain (loss) before income taxes and equity in undistributed income of subsidiaries | 37,675 |  |  | 24,327 |  |  | 106,688 |
Income tax expense (benefit) | (1,781 | ) |  | (2,467 | ) |  | 670 |
Income before equity in undistributed income of subsidiaries | 39,456 |  |  | 26,794 |  |  | 106,018 |
Equity in undistributed income (loss) of subsidiary bank | 1,748 |  |  | 20,198 |  |  | (60,150 | )
Net income | $ | 41,204 |  |  | $ | 46,992 |  |  | $ | 45,868 |
CENTRAL PACIFIC FINANCIAL CORP. CONDENSED STATEMENTS OF CASH FLOWS
| Year Ended December 31,
| 2017 |  | 2016 |  | 2015
| (Dollars in thousands)
Cash flows from operating activities: |  |  |  |  |  |  |  |
Net income | $ | 41,204 |  |  | $ | 46,992 |  |  | $ | 45,868 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |
Deferred income tax expense (benefit) | (442 | ) |  | 15,683 |  |  | 670 |
Equity in undistributed income (loss) of subsidiary bank | (1,748 | ) |  | (20,198 | ) |  | 60,150 |
Share-based compensation | 1,918 |  |  | 1,045 |  |  | 1,429 |
Other, net | 1,357 |  |  | (697 | ) |  | 983 |
Net cash provided by operating activities | 42,289 |  |  | 42,825 |  |  | 109,100 |
Cash flows from financing activities: |  |  |  |  |  |  |  |
Net proceeds from issuance of common stock and stock option exercises | — |  |  | 941 |  |  | 360 |
Repurchases of common stock | (26,559 | ) |  | (18,206 | ) |  | (93,533 | )
Dividends paid | (21,299 | ) |  | (18,619 | ) |  | (26,143 | )
Net cash used in financing activities | (47,858 | ) |  | (35,884 | ) |  | (119,316 | )
Net increase (decrease) in cash and cash equivalents | (5,569 | ) |  | 6,941 |  |  | (10,216 | )
Cash and cash equivalents at beginning of year | 19,500 |  |  | 12,559 |  |  | 22,775 |
Cash and cash equivalents at end of year | $ | 13,931 |  |  | $ | 19,500 |  |  | $ | 12,559 |

X
- References No definition available. + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.7-05(c)(Schedule II)) -URI http://asc.fasb.org/extlink&oid=6879921&loc=d3e569147-122900 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=96868048&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 235 -Section S99 -Paragraph 2 -Subparagraph (SX 210.9-06) -URI http://asc.fasb.org/extlink&oid=6882215&loc=d3e537971-122884 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(c)(Schedule I)) -URI http://asc.fasb.org/extlink&oid=27047687&loc=d3e5864-122674 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e24072-122690 + Details
Name: | us-gaap_CondensedFinancialInformationOfParentCompanyOnlyDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration