Central Pacific Financial hits 52-week low on 56% dip in Q3 profit
Central Pacific Financial Corp. (NYSE: CPF) shares are dipping to a year low after the bank holding company announced third-quarter net income of $9.1 million, or $0.30 per share, below analyst estimates of $0.65 per share and down 56% from $20.6 million, or $0.67 per share, a year earlier.
“In light of the significant and rapid deterioration in the California residential construction market, combined with our commitment to proactively manage credit risk, we downgraded several loans which resulted in a provision for loan losses of $21.2 million in the quarter,” CEO Clint Arnoldus said in a statement.
Central Pacific’s loan losses totaled $0.3 million in the year-ago quarter.
The Honolulu, Hawaii-based company said it expects fiscal 2007 earnings in the range of $2.31 to $2.36 per share, below Wall Street projections of $2.69 per share. Last year, the company earned $2.57 per share.
During the three months ended Sept. 30, the firm’s total assets increased 5% to $5.6 billion, from $5.4 billion during the same period of 2006. Central Pacific’s total nonperforming assets soared 194% to $31.7 million, from $10.8 million a year earlier.
In July, the company’s board approved a stock repurchase plan of up to 1.5 million shares. At the end of the third quarter, Central Pacific had repurchased 0.9 million shares under the plan.
In morning trading, CPF shares are hitting a 52-week low—down 8.07%, or $1.93, at $21.99. Over the last 52 weeks, shares have ranged from $21.99 to $40.50.
