Central Pacific Bank’s parent is still on track with its turnaround plan after being rescued from the brink of collapse less than two years ago.
The state’s fourth-largest bank, which is aggressively reducing its nonperforming assets, posted its seventh straight profitable quarter even though net income fell 7.8 percent from the July-September period a year ago.
Central Pacific Financial Corp.’s third-quarter earnings fell to $10.7 million, or 26 cents a share, matching the consensus estimate of analysts, according to investment research firm Thomson First Call.
The bank boosted its earnings by adding $5 million to income that had been set aside for potential loan losses. It was the seventh straight quarter that Central Pacific reduced the amount it has set aside for loan losses.
In the year-ago quarter, the bank earned $11.6 million, or 28 cents a share. But that quarter was affected by the net addition of about $7.9 million to income from one-time items.
THIRD-QUARTER NET
$10.7 million
YEAR-EARLIER NET
$11.6 million |
"We are pleased with the significant and consistent progress of our company … since our recapitalization," Central Pacific President and CEO John Dean said.
Central Pacific, which was set to release its earnings today, began its profitability streak after a $325 million recapitalization in February 2011 from private equity funds and investors.
Through the first nine months of this year, its earnings are $35 million, up 43.4 percent from the same period a year ago.
Central Pacific continued to improve its credit portfolio by reducing nonperforming assets — loans delinquent 90 days or more — by $30 million. Nonperforming loans totaled $140.3 million at the end of the quarter compared with $170.3 million at the end of the second quarter and $223.3 million in the third quarter of 2011.
Total deposits rose to $3.62 billion from $3.35 billion a year ago while loans grew to $2.11 billion from $2.06 billion. Total assets rose to $4.31 billion from $4.12 billion.
Central Pacific’s stock, which is up 12 percent this year, rose 6 cents Wednesday to close at $14.47 on the New York Stock Exchange.
