Posted on: Wednesday, April 27, 2005
Central Pacific's earnings per share up 23 percent
Advertiser Staff
First-quarter earnings at Central Pacific Financial Corp. met the expectation of Wall Street analysts, who on average forecasted profits of 59 cents a share. At the news, shares of Hawai'i's fourth largest financial institution fell by 12 cents to close at $32 yesterday.
First quarter 2005
- Net income: $17.2 million, up 117 percent from a year ago
- Earnings per share: 59 cents, up 23 percent from a year ago
- Net interest income: $46.3 million, up 104 percent from a year ago
- Other operating income: $9.3 million, up 137 percent from a year ago
- Total assets: $4.8 billion, up 109 percent from a year ago
- Total deposits: $3.4 billion, up 87 percent from a year ago
Reasons
- The merger of City Bank into Central Pacific substantially increased income, profits, assets, loans and leases, and other activity.
- The first quarter included $1.5 million in merger-related expenses.
- The bank had a lower tax rate in the first quarter compared to a year earlier.
- The bank benefited from $1.8 million in state tax credits for its investments in high-tech Hawai'i businesses.
What they are saying
"Growth in our core lines of business in the post-merger environment is indicative of the strength and the potential of our combined organization."
— Clint Arnoldus | CEO
"I expect expenses to migrate lower as cost savings are phased in by the end of the year."
— J. Reeves | R. BECK ANALYST
What's next
- The bank affirmed its 2005 earnings per share forecast of $2.50 to $2.60.
- The bank expects to incur $500,000 in merger-related charges in the second quarter.
- The bank said it is on track to achieve $13 million in cost savings this year from the merger.
- All employees, except the CEO, are now eligible for stock grants depending on how well profits grow at the bank from 2005 to 2007.
