California's real estate market hurts Central Pacific's bottom line
Advertiser Staff
Turmoil in California's real estate market dragged down Central Pacific Financial Corp.'s third-quarter 2007 income, which fell 55.8 percent from a year ago. Provisions for loan and lease losses soared to $21.2 million from $300,000 in the same quarter a year earlier.
THE NUMBERS
Net income: $9.1 million, down 55.8 percent from a year ago.
Earnings per share: 30 cents, down 55.2 percent from a year ago.
Net interest income: $52.8 million, down 0.6 percent from a year ago.
Loans and leases: $4.1 billion, up 8.2 percent from a year ago.
Total assets: $5.6 billion, up 5 percent from a year ago.
REASONS
WHAT THEY ARE SAYING
"In light of the significant and rapid deterioration in the California residential construction market ... we downgraded several loans, which resulted in a provision for loan losses of $21.2 million in the quarter."
Clint ArnoldusCentral Pacific Financial's president and chief executive officer.
WHAT'S NEXT
Management said it expects the company to earn $2.31 per share to $2.36 per share this year.
Central Pacific Bank recently opened its 39th branch and introduced a new, high-interest checking account in an effort to stimulate deposit growth.
The bank's stock price has tumbled about 28 percent since the beginning of the third quarter. The company has the authority to buy back nearly 1.2 million shares.
