Central Pacific Bank net worth in 2024 reflects its solid financial performance, driven by its asset management, loan portfolio, and deposit growth.
In this article, Ando Money breaks down the key factors influencing Central Pacific Bank’s financial health and overall market standing.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Central Pacific Bank |
| Full Name | Central Pacific Financial Corp. |
| Traded as | NYSE: CPF |
| ISIN | US1547604090 |
| Founded | 1954 |
| Founders | Koichi Iida, Noboru Kondo, Katsumi Watanabe, Howard Takao |
| Country/Territory | United States |
| Headquarters | Honolulu, Hawaii, U.S. |
| Chief Executive Officer | Arnold Martines |
| Number of Employees | N/A |
| Market Cap | $0.72 Billion |
| Total Assets | $7.39 Billion |
| Total Equity | $518.6 Million |
| Revenue | N/A |
| Net Income | $15.8 Million (Q2 2024) |
What is the Net Worth/ Market Cap Of Central Pacific Bank in 2024?
As of September 2024, Central Pacific Bank holds a market cap of $0.72 billion. This valuation places the bank within the mid-tier range when compared to other financial institutions.
While Central Pacific Bank’s size may seem modest compared to major players, its consistent financial performance, marked by solid growth in core deposits and prudent loan management, makes it a bank worth noting.
Compared to larger banks, Central Pacific Bank maintains a more regionally focused operation. However, its strong capitalization ratios ensure stability in a competitive market.
Here are a few banks that provide some context:
For a broader look at the largest banks, check out our guide on the biggest financial institutions globally.
Financial Performance Overview
Central Pacific Bank’s financial performance in 2024 demonstrates its focus on maintaining stability and generating consistent earnings in a challenging economic environment.
Several key factors contribute to its overall performance, notably the management of interest margins, credit quality, and capital ratios.
Interest Income and Net Interest Margin (NIM)
One of the primary sources of revenue for Central Pacific Bank is its net interest income, which amounted to $51.9 million in Q2 2024.
The bank’s net interest margin (NIM) improved to 2.97%, a notable increase of 14 basis points from the previous quarter.
This rise was driven by higher average yields on loans and investment securities, while the cost of interest-bearing liabilities remained stable.
This margin expansion highlights the bank’s ability to profit from its lending activities while keeping borrowing costs in check.
Loan Portfolio and Provision for Credit Losses
As of June 2024, Central Pacific Bank held total loans of $5.38 billion, reflecting a slight decrease from previous quarters. However, despite the marginal drop in total loans, the average yield on these loans improved to 4.80%.
The provision for credit losses decreased to $2.2 million, down from $3.9 million in the previous quarter, reflecting better loan performance and lower delinquency rates.
This reduction in provisions suggests that the bank is experiencing fewer defaults and maintaining a strong loan portfolio.
Deposits and Liquidity
On the deposits side, Central Pacific Bank’s total deposits reached $6.58 billion in Q2 2024. While there was a slight decline of $36.4 million from the previous quarter, core deposits increased by $16.7 million.
Core deposits are crucial for banks as they provide a stable and low-cost source of funding. Central Pacific Bank’s core deposits, which include demand deposits, savings accounts, and money market accounts, now stand at $5.91 billion.
In terms of liquidity, the bank has ensured strong liquidity levels, with total liquidity sources amounting to $2.56 billion.
This includes cash, available borrowing capacity, and unpledged investment securities, all contributing to a solid liquidity position.
This ensures that the bank has enough capital to meet its obligations, even in uncertain market conditions.
Asset Quality and Non-Performing Assets (NPA)
Maintaining high asset quality is a priority for any financial institution, and Central Pacific Bank is no exception.
The bank’s non-performing assets remained stable at $10.3 million, or 0.14% of total assets, showing a healthy portfolio with minimal exposure to high-risk loans.
Additionally, net charge-offs for the second quarter of 2024 decreased to $3.8 million, a further sign of improvement in loan quality. The bank’s commitment to minimizing loan defaults and maintaining solid underwriting standards contributes significantly to its overall financial health.
Capital and Risk-Based Ratios
Capitalization is a key measure of a bank’s financial strength. Central Pacific Bank boasts a total risk-based capital ratio of 15.1% and a common equity tier 1 ratio of 11.9% as of June 2024.
These ratios exceed regulatory requirements, ensuring the bank has a strong capital buffer to absorb potential losses and sustain its operations.
Strong capital ratios also signal to investors and regulators that the bank is in a solid position to withstand economic shocks.
Dividend Payments and Shareholder Value
In terms of shareholder returns, Central Pacific Bank continues to prioritize consistent dividend payments. The Board of Directors declared a quarterly dividend of $0.26 per share for Q2 2024.
This payout demonstrates the bank’s commitment to providing value to its shareholders, even in a competitive financial landscape.
Looking Forward
Central Pacific Bank’s financial performance in 2024 reflects prudent management and a focus on maintaining solid fundamentals.
As the bank continues to navigate a dynamic economic environment, its focus on net interest margins, loan quality, and capital strength will be key drivers of future growth.
FAQs about Central Pacific Bank
What is the founding year of the bank?
The bank was founded in 1954 by a group of Japanese-American business leaders in Hawaii.
Who is the CEO of the Central Pacific Bank?
The current CEO of the bank is Arnold Martines, leading its operations and strategic direction.
Where is the Central Pacific Bank headquartered?
The bank is headquartered in Honolulu, Hawaii, serving mainly the Hawaiian market.
What is the Central Pacific Bank’s market cap in 2024?
As of September 2024, the bank has a market cap of $0.72 billion.
How does the bank generate revenue?
The bank earns revenue from:
- Net interest income
- Deposit services
- Investment returns
- Mortgage banking
What are the key capital ratios of the bank?
The bank holds a total risk-based capital ratio of 15.1% and a common equity tier 1 ratio of 11.9%.
How many employees does the bank have?
The exact number of employees is unavailable as of 2024.
What are the main services provided by the bank?
The bank offers:
- Personal and business banking
- Mortgage services
- Investment management
- Commercial loans
Conclusion
Central Pacific Bank’s financial performance in 2024 offers valuable insights for anyone tracking the banking sector.
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