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Central Pacific Financial Corp. posts record earnings, improves efficiency | The Honolulu Advertiser | Hawaii's Newspaper
Posted on: Wednesday, July 27, 2005

Central Pacific Financial Corp. posts record earnings, improves efficiency

Advertiser Staff

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Central Pacific Financial Corp., parent of Central Pacific Bank, saw its earnings edge up in the second quarter to a record $17.9 million, helped by growth in deposits and a rise in net interest income. The bank also said it continues to see improved efficiency since last year's merger with CB Bancshares.


NUMBER HIGHLIGHTS

Net income: $17.9 million, up 4 percent from the first quarter

Earnings per share: 58 cents versus 59 cents in the first quarter

Net interest income: $48.5 million, up 5 percent from the first quarter

Total assets: $4.9 billion, up 2 percent from the first quarter


REASONS

  • CPB's widening net interest margin reached 4.65 percent in the second quarter, contributing to profits.

  • The bank's efficiency ratio improved to 50 percent in the second quarter from 57 percent in the first quarter. (Smaller number indicates improvement.)

  • Deposits continued to grow, reaching $3.5 billion at the end of the quarter.


    WHAT THEY ARE SAYING

    "The company's strong second-quarter results were driven by strong deposit growth, expansion in net interest margin and increased efficiency. We're optimistic about the second half of the year. ..."

    Clint Arnoldus | CEO


    WHAT'S NEXT

  • While the outlook remains favorable, management has reduced its 2005 earnings-per-share guidance to $2.40-$2.45 to reflect higher than expected second-quarter loan prepayments.

  • The pending acquisition of Hawaii HomeLoans, a mortgage brokerage company, will provide new growth opportunities for the bank.

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