Q2 2020 Central Pacific Financial Corp Earnings Call
Financial Corp, second quarter 2020 conference call.
Today's presentation, all parties will be they listen only mode.
Following the presentation.
We'll be open for questions.
This call is being recorded and will be replaced shortly after its completion the company's website www dot CPB dot bag.
[music].
Oh over to Mr., David Morimoto, Executive Vice President and Chief Financial Officer. Please go ahead Sir.
[music]. Thank you Chad and thank you all for joining us as we review the financial results from the second quarter up 2024 Central Pacific Financial Corp.
Me. This morning, our Paul you ought to be <unk>, Chairman and Chief Executive Officer.
Catherine No president.
Artaud Martinez executive Vice President and Chief Banking Officer, and I don't know executive Vice President and Chief Credit Officer.
We have prepared a slide presentation that we will refer to in my remarks today.
Presentation is available in the Investor Relations section of our website at <unk> Dot Bank.
During the course of today's call management may make forward looking statements.
We believe these statements are based on reasonable assumptions. They involve risks that may cause actual results to differ materially from those projected.
We compete discussion of the risks related to our forward looking statements. Please refer to slide two of our presentation.
And now I'll turn the call over to Paul.
Thank you David and good morning, everyone.
As always we appreciate your interest in Central Pacific Financial Corp.
I'd like to start with an update on the Corbett 19, and dynamic response by the state of Hawaii in our company.
The infection rate in the state wide continues to remain very low with roughly 1800 cases as of July 28.
Well I continues to have the lowest per capita infection rate and the nation.
Residents are abiding by governmental orders, including required corn team face mask usage in social this sounds like.
The state local economy reopened engine and we won't be reopening out of state tourism on September September one for visitors that provide evidence of a negative cobot 19 past.
We believe this is a balanced way to reopen out of state tourism, while managing Corbett infections.
Well, the tourism reopening, albeit at a gradual process. It will help to start bringing back the much needed business to our local economy.
Travel bubbles between Hawaii in other countries with low infection rates continue to be discussed by our government leaders.
At Central Pacific, We continue to prudently manage through the pandemic in the credit area, we have thoroughly reviewed our long portfolio.
Did risk ratings, where warranted and determined that our credit risk is manageable.
Portfolio was conservative.
Well diversified and well collateralized.
We continue to proactive we work with our customers to help them through the pandemic as demonstrated by our significant paycheck protection program or PPP loan origination and long payments deferral programs.
Overall, we remain committed to supporting the needs of our customers and community. During this time.
Providing excellent service that we're known for and maintaining safe environment.
Arrived 2020 initiatives are continuing and making good progress.
Despite the Corbett 19 pandemic.
Revitalization of our building headquarters unfolds team with major parts of the construction underway and on track for an opening date in January 2021.
In the area digital we're on the final stages of pilot testing, our new online and mobile banking platform and are excited for the public launch in late August.
Finally, we continue to roll out our newly upgraded ATM throughout our branch network. We continue to be a decline in branch transaction activity and our digital initiatives have been well time to meet the changing needs of our customers.
I'd now turn the call over to Catherine to share more about our pandemic preparedness plan and the work of our CPB Foundation Catherine.
Thank you all are pandemic preparedness plan continues to be in place and we have not had any disruption in our business.
We have recently reopened several of our branches that were temporarily closed and are implementing a gradual safe and return to office plan that includes a portion of the workforce continuing with flexible remote work schedule.
Safety remains our utmost priority.
Before we have made appropriate changes to our fragile office set up to ensure proper social distancing and hygiene.
The actions that we've taken we believe well continue to enable us to provide safe environment for both our employees and customers.
The CBD foundation continues to be active in helping the community with relevant and timely programs.
During the second quarter, we ran at my follow meals initiative and provided 1500 meal to local first responders I'm frontline heroes.
Additionally, we recently launched a program called bricks to bite, which is helping local businesses to the prices I, providing free services to take their business online and go digital.
We also were continuing to communication engagement with visitors, particularly from Japan to keep Hawaii top of mind and encouraged a return to Hawaii once the pandemic ends up recovery occurs.
Finally, we are continuing to work with government leaders to reopen the Hawaii economy safely in temperature screening and coal bed contact tracing programs.
I'd like to turn the call over now Arnold Martinez, our executive Vice President and Chief Banking Officer Arnold. Thank you Catherine.
Second quarter was highlighted by the company successful P.P. loan origination efforts as well as solid mortgage banking performance.
We originated over 7200, PTP loans, holding over 550 million to vote existing and new customers.
This was a tremendous effort that involve employees throughout the bank.
We were very pleased that are out because not only supporting our customers, but also the bar business community. During these unprecedented times.
We are preparing to launch our PTP forgiveness portal and expect to begin the process of assisting our customers and applying for forgiveness from the at the age in the near future.
Given the low interest rate environment residential mortgage demand was strong which enabled the company to grow our residential mortgage portfolio by 25 million and generate 3.6 million of mortgage banking income during the second quarter.
Overall for the second quarter, the company total loans by 491 million or 10.9% sequential quarter.
This included 526 million.
Evolved and 25 million residential mortgage book as I mentioned earlier, partially offset by declines in other loan categories.
We're also able to grow 40 caused by 719 million or 16.7% sequentially.
Method by the PDP loan.
That were deposited with the bank.
Additionally, we believe part of the increase was the result of a flight to safety Bard customers given the volatility in the markets and the current operating environment.
We were successful in reducing the average cost of total deposits by 16 basis points to 20 basis points.
Our teams continue to be focused on expanding banking relationships with segments less impacted by Corbett 90.
And we continue to see close contact with our customers through decrease fine outreach efforts given the current operating environment.
Providing LC bass digital technology, you need to keep are already for us.
We experienced increased customer usage of digital channels over the last several months due to the corporate banking over 19 pandemic with mobile deposit transactions pop over 90%.
And mobile banking enrollments up nearly 50% from a year ago.
The increased digital channel activity creates strong momentum as we prepare to launch our new mobile and online platforms.
In addition.
We rolled out you eat he answered enhanced functionality to the health of our branches through June Thirtyth.
Yes, that's the remaining branches are scheduled to be installed before the end of the year.
At this time I'd like to turn the call over to add up to our executive Vice President and Chief Credit Officer.
By details our credit portfolio risk management.
Adam.
Thank you Arnold during the second quarter continues with a rigorous approach to be doing our commercial loan portfolio and actively worked with our customers and determine ongoing financial impact if any as long as provided support and guidance through the ongoing uncertainty in the marketplace.
We proactively insisted many of our customers and providing those payment deferrals as well that's in the application and approval of TPP.
The volume of loan payment deferrals granted peaked in may at $605 million in total loan balances and has declined to 568 million or 12.7% auto loan portfolio, excluding PPP balance at June 30.
Our consumer loan payment deferrals totaled 66 million and residential loan payments forbearances totaled $177 billion.
Continue to support our consumer and residential customers when they second 90 days old payment deferral or forbearance as needed we.
We expect that a majority of our consumer customers, who took a first 90 days on payment deeper all have taken or planning to take a second 90 day deferral due to their continued unemployment that.
The majority of the residential mortgage Forbearances, we're still in their initial 90 days or Barents period at June 30, a we are starting to see some bars, you didn't pay men and come up for parents, but the total coal dropping from a piece of 467 at may 31st down to 350.
June 30.
In our commercial and commercial real estate loan portfolio, we provided those payment deferrals of $318 million and total loan balances.
Hi, or somebody within their real estate and rental and leasing category of 167 million or 3.7% of the total loan portfolio, excluding ppb balances.
I have 129, though.
The majority of them both in this category, our investor commercial real estate loans afforded by season real estate investors and strong loan to value ratio.
We had not be done a second round of loan payments deferrals, yet in the commercial and commercial real estate loan portfolio.
Back to do so at a lower volume and on a case by case basis.
Additional details on our loan payments deferrals can be found on slide 13 and 14.
During the quarter special mention loans increased by $6.8 million sequential quarter to $116 billion or 2.6% of the total loan portfolio, excluding PTP balances.
The largest exposure and then their real estate and rental and leasing category, which totaled $59 million are 1.3% or the telephone portfolio, excluding P.P.P. balances.
The most in this category were downgraded primarily due to the temporary closure of tenants in commercial properties. However, we have strong sponsorship and season investors with strong loan to value racial and are confident these bars won't be able to whether through the economic downturn.
Approximately 24% of special mention balances also received P.P.P., though.
Additional details on our special mention portfolio can be found on slide 15.
Classified loans increased approximately $21 million sequential quarter to $47 million are one person that's a total loan portfolio, excluding TPP balances.
The increase during the quarter was due primarily to two boats that were experiencing challenges prior to call that 19.
Approximately 10% of classified balances also received PPP, though.
We continue to feel very good about our residential home equity and commercial real estate loan portfolios.
The weighted average origination boasted values and these portfolios are 61%, 63% and 60% respectively.
These loans comprised of approximately $2.4 billion for 76% total loan portfolio, excluding TPP balances.
Overall, we believe our disciplined approach to credits and our diversified loan portfolio will help us whether through these unprecedented times.
I'll now turn the call over to David Our Executive Vice President and Chief Financial Officer, David.
Thank you Adam.
Net income for the second quarter, 2020 was 9.9 billion or 35 cents per diluted share.
Return on average assets in the second quarter was 0.61% and return on average equity was 7.34%.
Our earnings continue to be impacted by higher provision for credit loss expense due to occur current cold at 19% better.
Our pretax pre provision earnings for the second quarter was 23.5 billion, which increased by 3 million or 15% sequential quarter.
Net interest income for the second quarter was 49.3 million, which increased by 1.4 million on a sequential quarter basis.
The increase includes 2.5 million in PPP net interest income and that don't fees.
The net interest margin decreased to 3.26% in the second quarter compared to 3.43% in the prior quarter.
The decrease was due to lower yielding P.P.P. loans as well as the lower interest rate environment.
The second quarter, and then normalized for PPP was 3.31%.
Second quarter other operating income totaled 10.7 million compared to 8.9 million in the prior quarter.
The increase was primarily due to higher mortgage banking income of 3.2 million and higher BOLI income of 1.4 billion.
This was partially offset by lower service charge and fee income.
Other operating expenses for the second quarter was 36.4 million, which was relatively flat to the prior quarter.
In the current quarter PPP loan origination costs of 2.2 million was capitalized and deferred which reduce salaries and benefits.
This was offset by higher commissions and bonuses as well as well as higher deferred compensation expense due to stock market volatility.
Net charge offs in the first quarter total.
The second quarter totaled 2.9 million compared to net charge offs of 1.2 million in the prior quarter.
The charge offs, primarily came from Hawaii, because the Hawaii consumer loan portfolio and they see an eye portfolio.
At June 30, our allowance for credit losses was 67.3 million or 1.35% of outstanding loans.
Excluding the PPP loan portfolio, which is guaranteed by that's being our allowance for credit losses was 1.50 Percentof total loans.
The efficiency ratio improved to 60.8% in the second quarter compared to 63.9% in the previous quarter.
The decrease was primarily due to higher net interest income and other operating income.
Yeah, the effective tax rate decreased to 23.0% and the second quarter due to higher tax exempt bank owned life insurance income.
Going forward, we expect the effective tax rate to be end up 24% to 26% range.
Hi, liquidity and capital capital positions remain strong and we continue to perform robust stress testing.
Our board declared a quarterly cash dividend of 23 cents per share, which we will be payable on September 15 to shareholders of record at the close of business on August 31st.
Finally, we decided to consolidate four branches on the island on full Wahoo later this year into existing nearby branches.
This decision was driven by increased customer adoption of online and mobile banking.
And our rise 2020 commitment to best in class digital banking technology.
As a result of these consolidations, we expect annual expense savings of approximately $1.8 billion.
We also expect to incur onetime charges associated with the consolidations of approximately zero point Threemillion in the third quarter and 1.4 million in the fourth quarter.
Thanks, and always will return the call to Paul.
Thank you David in summary, Central Pacific continues to manage well through the co bit 19 pandemic, we have a solid financial credit liquidity and capital position to enable us to weather the storm.
The economic recovery gradually begin we remain committed to providing support to our employees customers and the community on behalf of our management team and employees. Thank you for your continued support and confidence in our organization at this time, we'll be happy to address any questions. You may have thank you.
We will now begin the question and answer session to ask a question. We May Press Star then one on your telephone keypad.
If you're using a speakerphone please pick up your handset before pressing the keys.
To withdraw your question. Please press Star then too.
At this time, we will pause momentarily to assemble our roster.
And our first question will come from Andrew Liesch with Piper Sandler. Please go ahead.
Good morning, everyone.
Morning.
Hi.
Thanks, a question around the margin.
<unk> did a pretty good job Lauren deposit cost this quarter and.
Well, it's across all already pretty low.
How much more room do you have to go there just given the rate environment and.
And then what are you seeing on on core yields and how that's about offset any benefits on the funding side.
Yeah, Andrew it's David So yeah on the net interest margin firstly on a reported basis, our 17 basis points of compression, we believe screens well relative to our peers that have reported to date.
Yeah, you're right on the funding costs. So we have it down to a pretty low level and that is gonna be some challenges going forward, but for the next couple quarters. The NIM is gonna be about bit by.
The PPP program.
So currently PPP loans are a drag on the NIM due to the low yield.
However, they will be called by mid NIM Tailwinds when they are forgiven and we accelerate net fee income recognition.
So for the next couple of quarters, we were expecting the third quarter them to be into 322 or 330 range before expanding through the 340 to 350 range in the fourth quarter and as we start to see fee income recognition.
And it obviously that forecast is does not assume any type of automatic off forgiveness for small PPP loans to the extent that Congress does something there there could be an acceleration of the fee income recognition, possibly into the third quarter.
Okay.
But that's really helpful. The.
VP loans, what are you assuming as far as forgiveness on on time and good do you expect the bulk of them to be forgiving in pay down by yearend or or for many of them tour.
We remain on the balance sheet for the full term.
Currently you know, we're recognizing fee income over a two year period and.
You know, but quite honestly you know what they see all back than some of the activity with U.S.P.A. and the Feds you know we're hopeful that you know as David alluded to that there would be.
You know some automatic forgiveness on the laws under $150000 and clearly that's going to be a major trigger for us and recognizing more fee income.
Certainly okay. That's helpful. And then just one last question on operating expenses.
Sounds like there's cost saves ahead with some some branch consolidation, but also maybe some moving parts in the in the salaries and benefits line this but some of the deferred comp.
If you look at a 36.4 million or so that you had this quarter.
A little bit of an improvement on that just from the some of the.
The branch consolidation.
Are there other things going in that might affect that run rate.
Hi, This is Paul let him Catherine tubs first on the branch consolidation.
Some of the rationale behind and then maybe David you can touch on the expenses sure. Okay sure. Thank you.
And yeah, and this quarter, we announced a consolidation of four of our branches and and the pace of three about these where our in stores, where we were not able to practice on social doesn't thing.
Net event in the case of all four branches balls are in close proximity to other so that we're going to be able to support our customers. So that's really all as part of a branch rationalization strategy that we've been talking about actually be on these calls I'm for quite some time and so.
We see these opportunities where we can continue to support our customers on and at the same kind of course reduce expense and we are going to take a look at that one thing that's going to be an important driver. This is the digital innovation strategy and our ability to support our customers.
Channel.
And then if I could add Andrew This is David you know.
Throughout the year, we've been kind of guiding to a 36 to 38 million dollar quarterly range on other operating expense that that range was.
Did not consider the on onetime closure costs for the for the branch consolidations that we just saw disclosed on so excluding the non recurring onetime closure costs.
A 36 to 38 billion dollar range still still holds for the remainder of this year.
Okay very good. Thank you so much taking the questions.
Thanks.
And our next question will come from Jackie Bohlen with KBW. Please go ahead.
Hi, good morning, everyone I already Jackie.
Hi.
Hi space on your outlook for mortgage banking and also for growth in the single family portfolio. Since those are somewhat tied together on just if you're you know in the beginning of the quarter, if you're seeing continued strength, there and how you're thinking about I, both the sale and portfolios single family land.
Oh, Hi, jockey Hafrun here I cannot give you some detail. So yeah, we had a great second quarter in mortgage banking. It back it was the best in years seven years until we saw production of $345 million yeah.
Even better news as we do expect a strong Q3 as well and currently our pipe shows that the production will be in the $240 million range.
And did you see your gain on sale margins in the quarter.
Yes, Jackie it so David So you know the game on gain on sale margins have definitely widened in the second quarter and it's a industry phenomenon right. When do you have these extremely low rate environments and rifai spikes.
It is important the bank stock opportunity to to expand the gain on sale margins I would say in the second quarter. It basically doubled from where it is normally.
And are you seeing that strength continue into that third quarter.
Yeah, we do Jackie and more importantly, we've spent a considerable amount of time to no further streamline and and you know have better operational discipline in our home lending division and so we're we're also poised to take on.
What you know it would still seems to be a growing demand.
Especially a lot of refile ice and we're also a winning some new projects as well so we see the demand continuing.
Okay, great. Thank you that's very helpful.
And then just in terms of the rise 2020 initiatives I'm I'm based on prepared remarks to kind of sounds like area. There almost unfazed by the pandemic and it's kind of full steam ahead, I'm and if anything I mean, the while they're obviously adverse impact everywhere from the pandemic yeah with its positive for your digital adoption rate.
Am I understanding that correctly.
Yeah, you know there's two you know there's actually several major components to rise 2020, but you know on the infrastructure, especially with the renovation of our main building once again a lot of those costs are amortized over 39 years I think the the trade fewer locally you know regard our commit.
Matt to completing the renovation as a real positive fine.
You know because it does add to more business opportunities, especially for the trade, we think it's going to be a real milestone.
For our financial institution, especially as we continue.
Proof and finalized our new digital online and mobile platform.
The from a digital perspective, you know the timing was yeah I wish I could tell you a strategic but it wasn't really no unexpected the pandemic, but no more than ever our investment in digital is becoming so relevant a we're looking forward through our goal our next month.
On our new online and mobile platform.
Okay, great. Thanks, Tom I'll sit back.
[laughter] again, if you have a question. Please press Star then one.
The next question will come from David Feaster with Raymond James. Please go ahead.
Hey, good morning, everybody.
Good morning, I just wanted to start on the positive deposit growth was tremendous I. Just wanted to you know obviously, there's a lot of that's been driven by DPP dollar just curious I guess, how that's trended early in the third quarter. How much you think is true organic like when count growth.
Then.
Maybe how much of the PDP dollars.
I've already been spirit.
They patients for again, how much of this deposit growth is truly core instead.
David This is arnaud.
You know so the outsized sequential quarter deposit growth was primarily as you mentioned due to the due to the PPP loan originations.
But you know outside of that we did see some commercial customers bring balances back back from the money market mutual funds.
And in our commercial retail customers increasingly positive levels due to the of the operating environment economic environment.
But we do feel pretty pretty good as we as we move forward. Although we will we will see some decline in our deposits because.
You know the small business customers. It did apply for four PPP loans start to spend those funds, we'll see some decline there, but we do see our you know a positive.
Activity from our customer be saw despite the operating environment, we feel pretty good about that.
Okay. That's great that's great and then just on their side of the coin on the loan side, just any thoughts you might have on origination origination activity going forward, obviously, the TPP program and modifications had been a major distraction I'm. Just curious you know the posted a market your appetite for new.
Credit just whether you tighten the credit box how much of the decline was driven by lower utilization than just where are you seeing demand for new credit just any thoughts on on that overall now let me let me start up and then maybe Arnold you can chime in but clearly during Q2.
The pandemic you know there was a lot a shock in the system and wasn't as good if there was tremendous no new loan origination with the exception of the PDP, but what we're finding herein.
In Hawaii, despite our dependence on tourism.
The non tourism sector is still rather robust and vibrant and so during Q2.
With Arnold's leadership, we've been able to read Iraq, a lot of our efforts on some of the non tourism opportunities.
That exist here and so yeah. This is Ben this has been a great learning opportunity for us to further diversify our portfolio, but anything more to answer that hurdle.
I agree with what Paul said, Oh, you know for for small business for our commercial our real estate businesses.
We are seeing.
Some activity there are people with money on the sidelines are looking for our investments and.
And of course, as we spoke earlier calkin touched on it.
I do expect that our mortgage already mortgage business will we'll continue to be a fairly robots, though to the.
Through the Q3.
Okay, So maybe expecting flat to modest decline again in loan balances.
Yeah, you know, it's just a timing on the PPP forgiveness process that yeah that I think that that will be the major off a driver in you know in how our portfolio of changes over the next.
This quarter and next quarter. So I think it's really the PPP finding right and we've also for the call again, we've been.
We have high expectations for the shield back you know the second federal subsidy program, you know, hoping that there'll be some good long programs for our small medium.
Customers here as well.
Okay.
That's helpful and last one from me just wanted to touch on on the referral rates I appreciate the commentary prepared remarks.
You know it looks like we're already trending down about 6% from the peak expect a decent amount of referrals and readily book, but you know and I get that it's going to be like recycling spaces, but as you're 90 day deferrals are starting to inspire what's the early read on the commercial side.
And then what do you feel Rick and those conversations are required any additional collateral or a personal guarantees and then I guess lastly, what's what's implications as referrals coming through.
And potential risk rating.
Downgrades and negative credit migration any thoughts on reserve builds.
Going forward.
Oh, sorry.
Here and then.
For on for more detail, but as you mentioned you for the for the Cnine portfolio. The a further deferral I really going to be on a case by case basis of course is all going to depend on on the economy and when we finally, Ken reopened our economy easier in Hawaii, we were really pleased.
To see however on the mortgage fraud that the forbearance number I'm came down in the last month and hope that we see a continuation of that trend on the mortgage fraud.
With that and maybe more so help me okay.
In a bit more color to the commercial book actually that's in the last couple of weeks, we started to see the commercial book deferrals trend downward so customers coming off of their 90 day payment deferrals are resuming active payment.
And then a tough I mentioned on our residential but we are pleased to see those numbers continue to decline and we do expect to see those numbers continue to.
Trend downward I'm on the consumer fries, given the level of unemployment, we do expect to see it sort of remains stable at the level that it is currently.
And then maybe on the reserve build turn into David.
Yes, Oh David.
Yeah, we built reserves solved by roughly 20 basis points in each of the first two quarters and now obviously, primarily due to worsening of the economic forecasts.
So going forward, it's gonna be largely dependent on economic forecasts and and the credit migration.
To the extent that we see continued.
Continued worsening we would expect.
Continued reserve build.
Having said that we monitor our classified asset ratio.
Yes based on that racial classified assets to tier one and Hcl.
We currently compare favorably to our peers there.
So that is oh, what other ratios that we monitor pretty closely.
Okay. That's helpful. Thanks, everybody.
You too.
Next question will come from Laurie Hunsicker with Compass point. Please go ahead.
Hi, Thanks, Good morning Hillary.
I just wondered I'm, David maybe just going back to end this question on margin.
If you can just help us think about core margin the back half city or excluding the PPP.
Yes, I know the comments, you're giving included the PPP and if I just look at it and say.
You know round numbers, you've you've got 25% that come in next quarter or whatever it is that that suddenly a jump at 35 basis points on your margin.
I'm, just I'm just trying to figure out.
You know either.
There how much TPP impact here, you're putting into that the guide or rather if you could maybe help us think about it.
Excluding the PPP, because again to Anders point your cost of deposits is incredibly well. Thanks.
Sure sure like.
Obviously, a lot of lot of moving parts here of I think the best way to think about it is.
So we were 326 on a reported basis, if you back out the impact of PPP get to 331. So we were down roughly 12 basis points sequential quarter.
Core basis, I think you know we could on a core basis, maybe it's 10 basis in the five to 10 basis points per quarter compression is what we would like perfect.
Okay. Okay. That's super helpful. Okay, and then.
Good.
Two questions on your five and David I'd enough that you are Kathryn and I, but.
I'm just mainly looking at.
Slide nine important team.
I'm looking at Star Hotel by hotel bucket 64 million, including a $4 million PPP.
And your reporting 2 million of deferral, so you're at a 3% deferrals right.
Is that correct.
Correct.
Okay. I mean can you help us think about it that is I mean, that's one of the lowest in the country, what and maybe two if you've got the LTV.
Your 100% real let's take the care what is what is the LTV on your hotel Boston and any other color you can give us around that thanks.
Yeah.
Okay relatively small smas you mentioned, it's about 60 million our weighted average loan to value is at 50%.
1.2% of Octomom book, we feel comfortable with a hotel names that we have on our books, but strong sponsorship and.
And liquidity and support.
Oh, yes.
A couple of.
Loans on the book [laughter] and so the.
So yeah warranties that all the.
In fact remains that our hotel book is.
Fortunately and supported by a lot of strong mainline financial sponsors so.
It's not a big piece of our portfolio.
Okay.
Same question on restaurant, so you're you're 142 million back for 77, that's putting your PPP you are 20% real estate secured do you have the LTV on that.
Yes, Hi restaurant on a combined weighted average LTV is that 64%.
Okay, Great and then what about on the retail do you have an LTV on that.
Retail also combined and that's 64%.
And when I mean combined is there an owner occupied together.
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Right perfect. Okay, and then I'm just thinking about your retail.
How much of your back in service retail grocery anchored pharmacy I Trust.
So from a grocery retail standpoint, it's actually very now so shopping center and.
Total about 66 million.
Okay.
Okay, and you have no malec, especially correct.
Small exposure and.
No not not in the traditional.
Okay great.
Thanks, and then just one more question here on I'm not I'm, what is your leverage loan Buck.
For the regulatory definition and then how much of that is in Hawaii personal.
Yeah, sorry.
What we call highly leveraged transaction, it's about 68 million.
1.4% of our total loan book.
<unk>.
And.
Eminent 63 million and in the national bulk.
Yes.
Okay. That's great and then I'm just one last question for me Oh, I'm, sorry, actually commercial real estate, you have that figure commercial real estate off though.
And then LTV, if you've got it.
So often commercial weighted average LTV is about 56% our total balances there.
No.
Our core mailing, it's very very small.
Uh huh.
Okay. Okay, Great and then my last question on charge offs.
Wanted to go back to David your comment so it's hard job for 3 million. It looks like 2.1 million came from consumer and you said most of that was the Hawaii consumer is that the.
The Hawaii unsecured or what is that number.
I'm sorry. This is that Oh go ahead and take that sounds like consumer, yes, its hawaii consumer unsecured as well as well.
As well as I know okay.
And then do you have what is what is the dollar amount of your Hawaii unsecured loan book.
Oh.
Uh huh.
Yeah.
Sure I can I cannot the follow up if you guys offline, maybe our Hawaii total consumer bucket 350 million.
7% up our total loan book.
Our or two thirds of I can remember.
Okay, and then the unsecured piece of that.
Oh, the unsecured he said that would be about 253 million 40%.
Okay, great. Thanks, I'll leave it there.
Great. Thanks Laurie.
Ladies and gentlemen, this concludes our question and answer session I would like to turn the conference back over the Paul you in the meaning for any closing remarks.
Great. Thank you Tim.
Thank you very much for participating in our earnings call for the second quarter 2020, we look forward to future opportunities to update you on our progress. Thank you very much.
Thank you Sir Conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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