EQUITY

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

EQUITY

13. 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, 2019, the bank had Statutory Retained Earnings of $66.6 million.

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 2017, the Board of Directors authorized the repurchase of up to $30.0 million of the Company's common stock from time to time in the open market or in privately negotiated transactions, pursuant to a newly authorized share repurchase program (the "2017 Repurchase Plan"). The 2017 Repurchase Plan replaced and superseded in its entirety the share repurchase plan previously approved by the Company's Board of Directors. In January 2017, prior to the 2017 Repurchase Plan being approved, 1,750 shares of common stock, at a cost of $0.1 million, were repurchased under the previous share repurchase plan.

In November 2017, the Board of Directors authorized an increase in the share repurchase program authority by an additional $50.0 million (known henceforth as the "Repurchase Plan"). In the year ended December 31, 2017, 862,733 shares of common stock, at a cost of $26.5 million, were repurchased under the Repurchase Plan.

In the year ended December 31, 2018, 1,155,157 shares of common stock, at a cost of $32.8 million, were repurchased under the Repurchase Plan.

In June 2019, 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 "2019 Repurchase Plan"). The 2019 Repurchase Plan replaced and superseded in its entirety the Repurchase Plan previously approved by the Company's Board of Directors, which had $6.8 million in remaining repurchase authority.

In the year ended December 31, 2019, a total of 797,003 shares of common stock, at a cost of $22.8 million, were repurchased under the Company's existing share repurchase plans. A total of 488,700 shares of common stock, at a cost of $13.9 million, were repurchased under the Repurchase Plan and a total of 308,303 shares of common stock, at a cost of $8.9 million, were repurchased under the 2019 Repurchase Plan.

A total of $21.1 million remained available for repurchase under the 2019 Repurchase Plan at December 31, 2019.