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

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.)