XML 46 R21.htm IDEA: XBRL DOCUMENT v3.22.4
EQUITY
 12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
EQUITY
12. EQUITY
 
As a Hawaii state-chartered bank, Central Pacific 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, 2022 and 2021, the bank had Statutory Retained Earnings of $145.7 million and $114.0 million, respectively.
Dividends are payable at the discretion of the Board of Directors and there can be no assurance that the Board of Directors will continue to pay dividends at the same rate, or at all, in the future. Our ability to pay cash dividends to our shareholders is subject to restrictions under federal and Hawaii law, including restrictions imposed by the FRB and covenants set forth in various agreements we are a party to, including covenants set forth in our subordinated debentures.

We repurchase shares of our common stock when we believe such repurchases are in the best interests of the Company.

In January 2021, the Company’s Board of Directors authorized the repurchase of up to $25.0 million of its common stock from time to time in the open market or in privately negotiated transactions, pursuant to a newly authorized share repurchase program (the "2021 Repurchase Plan"). The 2021 Repurchase Plan replaced and superseded in its entirety the share repurchase program previously approved by the Company's Board of Directors, which had $26.6 million in remaining repurchase authority due to the Company temporarily suspending the share repurchase program in March 2020 due to uncertainty in the wake of the COVID-19 pandemic.

In January 2022, the Company’s Board of Directors authorized the repurchase of up to $30.0 million of its common stock from time to time in the open market or in privately negotiated transactions, pursuant to a newly authorized share repurchase program (the "2022 Repurchase Plan"). The 2022 Repurchase Plan replaced and superseded in its entirety the 2021 Repurchase Plan, which had $5.3 million in remaining repurchase authority. The Company's 2022 Repurchase Plan is subject to a one year expiration.

In the year ended December 31, 2022, a total of 868,613 shares of common stock, at a cost of $20.7 million, were repurchased under the Company's share purchase programs. A total of $10.3 million remained available for repurchase under the Company's 2022 Repurchase Plan at December 31, 2022.

In the year ended December 31, 2021, 696,894 shares of common stock, at a cost of $18.7 million, were repurchased under the Company's share repurchase programs.