Central Pacific Financial Q3 profit rises on higher interest income
Overview
Hawaii bank's net interest income rose both sequentially and yr/yr
Company repurchased shares and raised its quarterly dividend
Outlook
Company raised quarterly cash dividend to $0.31 per share for the fourth qtr
Company did not provide specific financial guidance for the upcoming periods in its press release
Result Drivers
LOAN YIELDS AND INVESTMENT RETURNS - Co said higher loan yields and improved returns on investment securities drove net interest income and margin growth
EXPENSE MANAGEMENT - Co attributed improved efficiency ratio to lower salaries, employee benefits and deferred compensation expenses
EQUITY MARKET VOLATILITY - Co said lower income from bank-owned life insurance was due to equity market volatility
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | $0.88 | ||
Q3 Net Income | $22.78 mln | ||
Q3 Net Interest Income | $64.47 mln | ||
Q3 Provision For Credit losses | $1.89 mln | ||
Q3 ROE | 15.28% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "hold"
Wall Street's median 12-month price target for Central Pacific Financial Corp is $42.50, about 12.4% above its October 27 closing price of $37.82
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Oct 26 - Bank of Hawaii Q3 net income rises on higher net interest income
Oct 27 - Banc of California Q3 EPS rises on higher net interest income
Oct 27 - NBT Bancorp Q3 profit rises on loan growth, higher net interest income
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)