Central Pacific Financial Q3 profit rises on higher interest income

By Reuters News


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


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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