Central Pacific Financial issues EPS guidance below the Street
Central Pacific Financial Corp. (NYSE: CPF), parent company of Central Pacific Bank, issued preliminary earnings numbers for the fourth quarter below the consensus on Wall Street.
The provider of commercial banking services in Hawaii said it expects to report earnings per share of approximately $0.10 to $0.14 for the fourth quarter ended Dec. 31, 2007, below the consensus of four analysts surveyed by Thomson Financial of $0.53 per share.
The small cap stipulated the fourth quarter of 2007 would reflect a higher level of loan charge-offs and negative “credit migration” due to continued deterioration in the housing and residential construction market in California. CPF anticipates fourth-quarter net charge-offs of approximately $8.5 million to $9 million.
The earnings estimates are also said to include, credit costs of approximately $32 million to $34 million and an after-tax loss on an investment portfolio repositioning of $1 million, or $0.04 per diluted share.
“The fundamentals and overall safety and soundness of our bank remain strong,” Clint Arnoldus, chief executive officer of CPF, said in a press release. "However, along with other financial institutions, we are dealing with deteriorating market conditions and credit weaknesses in a number of residential tract lending projects we financed in California.”
The bank, however, noted it intends to maintain its quarterly dividend at its current level and will continue with its stock repurchase program.
Central Pacific Financial will officially release earnings on Jan. 31.
Shares of Central Pacific Financial (CPF) were up 0.53%, or $0.08, to $15.31 in pre-market trading. Shares of Central Pacific Financial have been trading in the range of $$14.59 to $40.50 for the past 52 weeks.
