Updated at 1:43 p.m., Friday, January 11, 2008
CPF earnings expected to take hit from mortgage mess
Advertiser Staff
Central Pacific Financial Corp. will take another hit from the downturn in California's real estate market.The state's fourth largest financial institution said today that it will post a $32 million to $34 million provision during the fourth quarter due to loans to residential developers hard-hit by the subprime lending crisis in California.
Central Pacific said it expects to earn 10 cents to 14 cents a share during the fourth quarter 2007, which is off from the year-earlier quarter's 61 cents.
The company said it intends to maintain its 25 cent per share quarterly dividend and will continue its stock repurchase program.
Shares of Central Pacific closed at $15.13 on the New York Stock Exchange today, down 10 cents.
During the third quarter, the company's earnings fell 55.8 percent due after its provision for loan and lease losses soared to $21.2 million from $300,000.
Central Pacific will announce its fourth quarter results on Jan. 31.
