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PARENT COMPANY AND REGULATORY RESTRICTIONS (Tables) | 12 Months Ended
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Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract] |
Schedule of actual and required capital ratios as well as the minimum capital adequacy requirements applicable generally to all financial institutions | 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.
| Actual |  | Minimum required for capital adequacy purposes |  | Minimum required to be well-capitalized
(Dollars in thousands) | Amount |  | Ratio |  | Amount |  | Ratio (1) |  | Amount |  | Ratio
Company |  |  |  |  |  |  |  |  |  |  |
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Tier 1 capital to avg. assets (leverage ratio) | $ | 622,130 |  |  | 8.5 | % |  | $ | 293,382 |  |  | 4.0 | % |  |  |  | N/A
Tier 1 capital to risk-weighted assets | 622,130 |  |  | 12.2 |  |  | 307,215 |  |  | 6.0 |  |  |  |  | N/A
Total capital to risk-weighted assets | 741,291 |  |  | 14.5 |  |  | 409,620 |  |  | 8.0 |  |  |  |  | N/A
Common equity tier 1 ("CET1") capital to risk-weighted assets | 572,130 |  |  | 11.2 |  |  | 230,411 |  |  | 4.5 |  |  |  |  | N/A
As of December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Tier 1 capital to avg. assets (leverage ratio) | 581,358 |  |  | 8.8 |  |  | 263,979 |  |  | 4.0 |  |  |  |  | N/A
Tier 1 capital to risk-weighted assets | 581,358 |  |  | 12.9 |  |  | 271,027 |  |  | 6.0 |  |  |  |  | N/A
Total capital to risk-weighted assets | 686,130 |  |  | 15.2 |  |  | 361,369 |  |  | 8.0 |  |  |  |  | N/A
CET1 capital to risk-weighted assets | 531,358 |  |  | 11.8 |  |  | 203,270 |  |  | 4.5 |  |  |  |  | N/A
Central Pacific Bank |  |  |  |  |  |  |  |  |  |  |
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Tier 1 capital to avg. assets (leverage ratio) | $ | 652,987 |  |  | 8.9 | % |  | $ | 292,877 |  |  | 4.0 | % |  | $ | 366,096 |  |  | 5.0 | %
Tier 1 capital to risk-weighted assets | 652,987 |  |  | 12.8 |  |  | 306,497 |  |  | 6.0 |  |  | 408,663 |  |  | 8.0 |
Total capital to risk-weighted assets | 717,000 |  |  | 14.0 |  |  | 408,663 |  |  | 8.0 |  |  | 510,828 |  |  | 10.0 |
CET1 capital to risk-weighted assets | 652,987 |  |  | 12.8 |  |  | 229,873 |  |  | 4.5 |  |  | 332,038 |  |  | 6.5 |
As of December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Tier 1 capital to avg. assets (leverage ratio) | 620,372 |  |  | 9.4 |  |  | 263,735 |  |  | 4.0 |  |  | 329,668 |  |  | 5.0 |
Tier 1 capital to risk-weighted assets | 620,372 |  |  | 13.7 |  |  | 270,820 |  |  | 6.0 |  |  | 361,094 |  |  | 8.0 |
Total capital to risk-weighted assets | 670,087 |  |  | 14.9 |  |  | 361,094 |  |  | 8.0 |  |  | 451,367 |  |  | 10.0 |
CET1 capital to risk-weighted assets | 620,372 |  |  | 13.7 |  |  | 203,115 |  |  | 4.5 |  |  | 293,389 |  |  | 6.5 |
(1) Under the Basel III Capital Rules, the Company and the bank must also maintain the required Capital Conservation Buffer ("CCB") to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. The CCB is calculated as a ratio of CET1 capital to risk-weighted assets, and effectively increases the required minimum risk-based capital ratios. The CCB requirement was phased in over a three-year period that began on January 1, 2016. The phase-in period ended on January 1, 2019, and the CCB is now at its fully phased-in level of 2.5%.
Schedule of condensed balance sheets |
| December 31,
(Dollars in thousands) | 2021 |  | 2020
Assets |  |  |
Cash and cash equivalents | $ | 20,090 |  |  | $ | 11,184 |
Equity investment securities, at fair value | — |  |  | 1,351 |
Investment in subsidiary bank | 639,050 |  |  | 635,673 |
Other assets | 12,029 |  |  | 8,575 |
Total assets | $ | 671,169 |  |  | $ | 656,783 |
Liabilities and Equity |  |  |
Long-term debt | $ | 105,616 |  |  | $ | 105,385 |
Other liabilities | 7,334 |  |  | 4,713 |
Total liabilities | 112,950 |  |  | 110,098 |
Total shareholders’ equity | 558,219 |  |  | 546,685 |
Total equity | 558,219 |  |  | 546,685 |
Total liabilities and equity | $ | 671,169 |  |  | $ | 656,783 |
Schedule of condensed statements of operations |
| Year Ended December 31,
(Dollars in thousands) | 2021 |  | 2020 |  | 2019
Income: |  |  |  |  |
Dividends from subsidiary bank | $ | 54,016 |  |  | $ | 24,015 |  |  | $ | 42,008 |
Interest income from subsidiary bank | 3 |  |  | 4 |  |  | 5 |
Other income | 43 |  |  | 52 |  |  | 92 |
Total income | 54,062 |  |  | 24,071 |  |  | 42,105 |
Expense: |  |  |  |  |
Interest expense on long-term debt | 4,097 |  |  | 2,095 |  |  | 2,453 |
Other expenses | 3,504 |  |  | 1,293 |  |  | 2,599 |
Total expenses | 7,601 |  |  | 3,388 |  |  | 5,052 |
Income before income taxes and equity in undistributed income of subsidiaries | 46,461 |  |  | 20,683 |  |  | 37,053 |
Income tax expense (benefit) | (1,968) |  |  | (690) |  |  | (1,289) |
Income before equity in undistributed income of subsidiaries | 48,429 |  |  | 21,373 |  |  | 38,342 |
Equity in undistributed income of subsidiary bank | 31,465 |  |  | 15,900 |  |  | 19,980 |
Net income | $ | 79,894 |  |  | $ | 37,273 |  |  | $ | 58,322 |
Schedule of condensed statements of cash flows |
| Year Ended December 31,
(Dollars in thousands) | 2021 |  | 2020 |  | 2019
Cash flows from operating activities: |  |  |  |  |
Net income | $ | 79,894 |  |  | $ | 37,273 |  |  | $ | 58,322 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |
Deferred income tax expense (benefit) | 70 |  |  | 2,552 |  |  | 3,055 |
Net change in dividends receivable from subsidiary bank | — |  |  | — |  |  | 21,004 |
Equity in undistributed loss (income) of subsidiary bank | (31,465) |  |  | (15,900) |  |  | (19,980) |
Share-based compensation expense | 3,231 |  |  | 3,231 |  |  | 2,735 |
Net change in other assets and liabilities | (85) |  |  | (3,010) |  |  | (2,900) |
Net cash provided by operating activities | 51,645 |  |  | 24,146 |  |  | 62,236 |
Cash flows from investing activities: |  |  |  |  |
Contributions to subsidiary bank | — |  |  | (46,750) |  |  | — |
Proceeds from sale of investment securities | 1,653 |  |  | — |  |  | — |
Distributions from unconsolidated entities | — |  |  | — |  |  | 622 |
Net cash provided by (used in) investing activities | 1,653 |  |  | (46,750) |  |  | 622 |
Cash flows from financing activities: |  |  |  |  |
Net proceeds from issuance of common stock and stock option exercises | 1,236 |  |  | — |  |  | 151 |
Net proceeds from subordinated debt | — |  |  | 53,838 |  |  | — |
Repayments of long-term debt | — |  |  | — |  |  | (20,619) |
Repurchases of common stock | (18,669) |  |  | (4,749) |  |  | (22,793) |
Cash dividends paid on common stock | (26,959) |  |  | (25,935) |  |  | (25,706) |
Net cash provided by (used in) financing activities | (44,392) |  |  | 23,154 |  |  | (68,967) |
Net increase (decrease) in cash and cash equivalents | 8,906 |  |  | 550 |  |  | (6,109) |
Cash and cash equivalents at beginning of year | 11,184 |  |  | 10,634 |  |  | 16,743 |
Cash and cash equivalents at end of year | $ | 20,090 |  |  | $ | 11,184 |  |  | $ | 10,634 |

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