PARENT COMPANY AND REGULATORY RESTRICTIONS (Tables)

12 Months Ended

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