Central Pacific Financial Corp【CPF】株式ニュース

3rd consecutive profitable quarter!
Central Pacific Financial Corp. Reports Third Consecutive Profitable Quarter
Last update: 10/28/2011 8:00:00 AM
HONOLULU, Oct. 28, 2011 /PRNewswire via COMTEX/ -- Central Pacific Financial Corp. (CPF), parent company of Central Pacific Bank (the "Bank"), today reported net income for the third quarter of 2011 of $11.6 million, or $0.28 per diluted share, compared to a net loss in the third quarter of 2010 of $72.5 million, or $49.27 per diluted share, and net income in the second quarter of 2011 of $8.2 million, or $0.20 per diluted share.
"We are pleased to report our third consecutive profitable quarter and remain encouraged by the progress we are making in executing our recovery plan," said John C. Dean, President and Chief Executive Officer. "Continued improvement in our credit risk profile and an overall reduction in our nonperforming assets allowed us to significantly reduce our allowance for loan and lease losses. Our quarterly results also included a nonrecurring charge related to the prepayment of long-term borrowings at the Federal Home Loan Bank of Seattle, which will improve our net interest margin going forward."
Significant Highlights and Third Quarter Results
Reported third consecutive profitable quarter with net income of $11.6 million, compared to net income of $8.2 million in the second quarter of 2011.
For the second consecutive quarter, the Company did not incur any credit costs as it reduced its allowance for loan and lease losses (ALLL) by an amount greater than net foreclosed asset expense and write-downs of loans held for sale. The reduction in the ALLL resulted in a credit to the provision for loan and lease losses of $19.1 million, compared to a credit of $8.8 million during the second quarter of 2011.
Reduced nonperforming assets by $26.0 million to $223.3 million at September 30, 2011 from $249.3 million at June 30, 2011.
The ALLL, as a percentage of total loans and leases, decreased to 6.96% at September 30, 2011, compared to 8.16% at June 30, 2011. In addition, the Company had an ALLL, as a percentage of nonperforming assets, of 64.23% at September 30, 2011, compared to 66.95% at June 30, 2011.
Reduced future interest expense by paying down long-term borrowings at the Federal Home Loan Bank of Seattle totaling $120.5 million with a weighted average interest rate of 4.36%. Prepaying these borrowings resulted in the recognition of a one-time loss on the early extinguishment of debt totaling $6.2 million.
Agreed to contribute $5.0 million to the Central Pacific Bank Foundation to continue the bank's longstanding commitment to support its local communities.
Reached a $ 1.2 million settlement of a class action lawsuit related to the Company's practices for assessing overdraft fees. The settlement is subject to the approval of the First Circuit Court of Hawaii in Honolulu.
Maintained tier 1 risk-based capital, total risk-based capital, and leverage capital ratios as of September 30, 2011 of 22.63%, 23.94%, and 13.19%, respectively, compared to 22.48%, 23.80%, and 13.13%, respectively, as of June 30, 2011. The Company's capital ratios continue to exceed the minimum levels required for a "well-capitalized" regulatory designation.
Appointed Denis Isono as Executive Vice President and Chief Financial Officer effective October 1, 2011. Isono has 39 years of experience in banking and financial management and has been with the Company since 2002, previously as Executive Vice President and Chief Operations Officer.
Earnings Highlights
Net interest income for the third quarter of 2011 was $29.8 million, compared to $27.4 million in the year-ago quarter and $29.0 million in the second quarter of 2011. The net interest margin was 3.05%, compared to 2.74% in the year-ago quarter and 3.04% in the second quarter of 2011. The improvement in the Company's net interest margin reflects its continued efforts to redeploy a portion of its excess liquidity into higher yielding investment securities and further reduce its overall funding costs. During the quarter, the Company prepaid certain long-term borrowings at the Federal Home Loan Bank of Seattle totaling $120.5 million with a weighted average interest rate of 4.36%. The prepayment of these borrowings resulted in the recognition of a one-time loss on the early extinguishment of debt totaling $6.2 million.
The provision for loan and lease losses for the third quarter of 2011 was a credit of $19.1 million, compared to a credit of $8.8 million in the second quarter of 2011 and a charge of $79.9 million in the third quarter of 2010. The reduction was the result of continued improvement in the Company's credit risk profile as evidenced by further declines in nonperforming assets during the quarter, which is described more fully below.
Other operating income for the third quarter of 2011 totaled $11.5 million, compared to $11.7 million in the year-ago quarter and $10.9 million in the second quarter of 2011. The decrease from the year-ago quarter was primarily due to lower gains on sales of residential mortgage loans of $0.9 million, partially offset by higher unrealized gains on outstanding interest rate locks of $0.8 million. The sequential-quarter increase was primarily due to higher unrealized gains on outstanding interest rate locks of $0.8 million, partially offset by investment securities gains of $0.3 million recorded in the second quarter of 2011.
Other operating expense for the third quarter of 2011 totaled $48.8 million, compared to $31.7 million in year-ago quarter and $40.5 million in the second quarter of 2011. The increase from the year-ago quarter was primarily attributable to: (1) the aforementioned one-time loss on early extinguishment of debt of $6.2 million, (2) higher charitable contributions of $5.1 million, (3) higher net credit-related charges (which includes changes in the reserves for unfunded commitments, foreclosed asset expense, and write-downs of foreclosed asset expense) of $4.6 million, (4) higher salaries and employee benefits of $1.5 million, and (5) the accrual of a $1.2 million settlement of a class action lawsuit related to the Company's practices for assessing overdraft fees, partially offset by lower FDIC insurance of $2.3 million. The sequential quarter increase was primarily attributable to: (1) the loss on early extinguishment of debt of $6.2 million, (2) higher charitable contributions of $4.8 million, and (3) the $1.2 million accrual for the settlement of a class action lawsuit, partially offset by (1) lower net credit-related charges of $1.4 million, (2) lower FDIC insurance of $1.3 million, and (3) a lower provision for repurchased residential mortgage loans of $1.0 million.
The efficiency ratio for the third quarter of 2011 was 98.0% (excluding the loss on early extinguishment of debt of $6.2 million and foreclosed asset expense of $1.3 million), compared to 81.7% in the year-ago quarter (excluding foreclosed asset income of $1.0 million) and 94.3% (excluding foreclosed asset expense of $0.8 million and write-downs of loans held for sale totaling $3.1 million) in the second quarter of 2011.
The Company continues to recognize a full valuation allowance against its net deferred tax assets and did not record any income tax benefit or expense during the third quarter of 2011.
Balance Sheet Highlights
Total assets at September 30, 2011 were $4.1 billion, compared to $4.2 billion and $4.1 billion at September 30, 2010 and June 30, 2011, respectively.
Total loans and leases at September 30, 2011 were $2.1 billion, compared to $2.4 billion and $2.0 billion at September 30, 2010 and June 30, 2011, respectively. The current quarter increase was primarily due to an increase in the residential mortgage loan portfolio of $96.2 million, partially offset by decreases in the construction and development, commercial loan and commercial mortgage loan portfolios of $45.4 million, $18.5 million and $15.5 million, respectively.
Total deposits at September 30, 2011 were $3.3 billion, compared to $3.2 billion at September 30, 2010 and June 30, 2011, respectively. Core deposits, which include demand deposits, savings and money market deposits, and time deposits less than $100,000, totaled $2.7 billion at September 30, 2011. This represents a decrease of $64.8 million from a year ago and an increase of $23.4 million from June 30, 2011. Significant changes in total deposits during the quarter included an increase in time deposits, interest bearing demand deposits and savings and money market deposits of $72.3 million, $44.6 million and $6.6 million, respectively, while non-interest-bearing demand deposits decreased by $5.8 million.
Total shareholders' equity was $440.9 million at September 30, 2011, compared to $80.5 million and $423.8 million at September 30, 2010 and June 30, 2011, respectively.
Asset Quality
Nonperforming assets at September 30, 2011 totaled $223.3 million, or 5.42% of total assets, compared to $249.3 million, or 6.03% of total assets at June 30, 2011. The sequential-quarter decrease in the Company's nonperforming assets was primarily attributable to loan pay-downs and pay-offs totaling $27.5 million, sales of foreclosed properties totaling $9.8 million, charge-offs totaling $5.0 million, write-downs totaling $1.5 million and transfers of loans back to accrual status totaling $3.0 million. The sequential-quarter decrease reflects net reductions in Hawaii and Mainland construction and development assets totaling $7.4 million and $11.2 million, respectively, Mainland commercial mortgage assets totaling $6.3 million, and Hawaii residential mortgage assets totaling $2.2 million, partially offset by a net increase in Hawaii commercial mortgage assets totaling $1.2 million.
Loans delinquent for 90 days or more still accruing interest totaled $0.4 million at September 30, 2011, compared to $4,000 at June 30, 2011. In addition, loans delinquent for 30 days or more still accruing interest totaled $4.5 million at September 30, 2011, compared to $3.5 million at June 30, 2011.
Net loan charge-offs in the third quarter of 2011 totaled $4.4 million, compared to $64.3 million in the year-ago quarter and $2.3 million in the second quarter of 2011. Net charge-offs included the following significant amounts: Mainland construction and development loans totaling $2.5 million and Hawaii construction and development loans totaling $1.6 million.
The ALLL, as a percentage of total loans and leases, was 6.96% at September 30, 2011, compared to 8.16% at June 30, 2011. The ALLL, as a percentage of nonperforming assets, was 64.23% at September 30, 2011, compared to 66.95% at June 30, 2011.
Construction and Development Loans
At September 30, 2011, the construction and development loan portfolio (excluding owner-occupied loans) totaled $181.3 million, or 8.8%, of the total loan portfolio. Of this amount, $98.5 million were located in Hawaii and $82.8 million were located on the Mainland. This portfolio decreased by $45.2 million from June 30, 2011 and by $273.2 million from September 30, 2010. The sequential quarter decrease was primarily due to loan pay downs and reflects decreases in the Hawaii and Mainland construction and development loan portfolios (excluding owner-occupied loans) of $41.6 million and $3.6 million, respectively.
The ALLL established for these loans was $27.3 million at September 30, 2011, or 15.0%, of the total outstanding balance, compared to $41.6 million, or 18.4%, of the total outstanding balance at June 30, 2011. Of this amount, $16.9 million related to construction and development loans in Hawaii and $10.4 million related to construction and development loans on the Mainland.
Nonperforming construction and development assets in Hawaii totaled $100.3 million at September 30, 2011, or 2.4%, of total assets. At September 30, 2011, this balance was comprised of portfolio loans totaling $57.9 million and foreclosed properties totaling $42.4 million. Nonperforming assets related to this sector totaled $107.7 million at June 30, 2011.
Nonperforming construction and development assets on the Mainland totaled $46.2 million at September 30, 2011, or 1.1%, of total assets. At September 30, 2011, this balance was comprised of portfolio loans totaling $30.2 million and foreclosed properties totaling $16.0 million. Nonperforming assets related to this sector totaled $57.4 million at June 30, 2011.
Capital Levels
At September 30, 2011, the Company's Tier 1 risk-based capital, total risk-based capital, and leverage capital ratios were 22.63%, 23.94%, and 13.19%, respectively, compared to 22.48%, 23.80%, and 13.13%, respectively, at June 30, 2011. The Company's capital ratios continue to exceed the minimum levels required by both the Memorandum of Understanding between the bank and its regulators (the "MOU") and the levels required for a "well-capitalized" regulatory designation.

Feb 26 '11 news but sheds lights on today's action. Too bad flippers and coffee cub traders leave no valuable post here..

Central Pacific stock seen declining after 24 percent rise

Investors are driven by a rights offering from the bank, which eyes profitability this year

By Dave Segal

POSTED: 01:30 a.m. HST, Feb 26, 2011

Share3
12 Comments
Central Pacific Financial Corp.'s stock is expected to open sharply lower Monday following a torrid weeklong ascent that catapulted the shares 23.6 percent over the last four trading days.
Analyst Joe Gladue of B. Riley & Co. said he expects the shares to open around $22.51 or $22.52 next week after closing yesterday at $35.03. The stock rose $2.32, or 7.1 percent, yesterday as bargain hunters scooped up shares on the final day to be eligible for the company's $20 million rights offering.
Shareholders who owned the stock as of the close of trading yesterday are eligible to purchase additional shares for $10 each at a future date. The shareholders will be able to purchase at least 1.3 shares for every share they own.
Beginning Monday, though, Central Pacific's stock will trade without the $10 rights offering attached. That means the common shares will be worth less. The "rights" will trade as a separate entity and can be bought or sold independent of the common shares.
Gladue said he derived his projected Monday opening price by taking yesterday's close of $35.03, adding the $10 rights offering to get to $45.03 and then dividing by two shares, since investors will be able to buy roughly one share at the $10 price for every share that they own.
The time period to purchase those shares won't be determined until Central Pacific's registration statement related to that rights offering is filed and approved by the Securities and Exchange Commission. Central Pacific said yesterday it expects to file that statement early next week.
Earlier this week, Gladue downgraded his rating on Central Pacific's stock to "sell" from "neutral" and lowered his 12-month target price to $18 from $20 based on his outlook for earnings and tangible book value (liquidation value of the company). He said the target price is based on how the stock would trade without the rights offering attached.
"I think the management has been doing a great job of turning the company around, but I think the stock has sort of gotten ahead of itself trading at higher levels," he said.
Gladue said he expects the bank, which has had seven straight losing quarters, to become profitable in the third quarter of 2011. He said profitability could occur earlier if the company sets aside less than he expects for potential loan losses.
"It would be difficult to justify the current price even with greater reserve release (from the money set aside for potential loan losses) and a more rapid return to profitability," he wrote. "We see little upside to the stock from its current level."
Separately, Central Pacific said it is reducing the size of its board of directors on the holding company to eight from 12 and for the bank to nine from 14. Resigning from the company and the bank are Richard Blangiardi, Jeannie Hedberg, Ronald Migita, Mike Sayama, Maurice Yamasato and Dwight Yoshimura. Jeffrey Cavanaugh, who was only on the bank's board, also resigned.
Remaining as members of both boards are Executive Chairman John Dean, Christine Camp, Earl Fry, Paul Kosasa, Colbert Matsumoto and Crystal Rose. Duane Kurisu, who was only a member of the bank's board, also will remain in that capacity.
In addition, the two lead investors, The Carlyle Group and Anchorage Capital Group, each will have a representative on the dual boards. James Burr is a managing director of The Carlyle Group and Alvaro Aguirre, who will represent Anchorage Capital, is chairman of Cygnus Business Media, a business-to-business communications company.
 

Central Pacific Financial Corp.'s stock is expected to open sharply lower Monday following a torrid weeklong ascent that catapulted the shares 23.6 percent over the last four trading days.

Analyst Joe Gladue of B. Riley & Co. said he expects the shares to open around $22.51 or $22.52 next week after closing yesterday at $35.03. The stock rose $2.32, or 7.1 percent, yesterday as bargain hunters scooped up shares on the final day to be eligible for the company's $20 million rights offering.

Shareholders who owned the stock as of the close of trading yesterday are eligible to purchase additional shares for $10 each at a future date. The shareholders will be able to purchase at least 1.3 shares for every share they own.

Beginning Monday, though, Central Pacific's stock will trade without the $10 rights offering attached. That means the common shares will be worth less. The "rights" will trade as a separate entity and can be bought or sold independent of the common shares.

Gladue said he derived his projected Monday opening price by taking yesterday's close of $35.03, adding the $10 rights offering to get to $45.03 and then dividing by two shares, since investors will be able to buy roughly one share at the $10 price for every share that they own.

The time period to purchase those shares won't be determined until Central Pacific's registration statement related to that rights offering is filed and approved by the Securities and Exchange Commission. Central Pacific said yesterday it expects to file that statement early next week.

Earlier this week, Gladue downgraded his rating on Central Pacific's stock to "sell" from "neutral" and lowered his 12-month target price to $18 from $20 based on his outlook for earnings and tangible book value (liquidation value of the company). He said the target price is based on how the stock would trade without the rights offering attached.

"I think the management has been doing a great job of turning the company around, but I think the stock has sort of gotten ahead of itself trading at higher levels," he said.

Gladue said he expects the bank, which has had seven straight losing quarters, to become profitable in the third quarter of 2011. He said profitability could occur earlier if the company sets aside less than he expects for potential loan losses.

"It would be difficult to justify the current price even with greater reserve release (from the money set aside for potential loan losses) and a more rapid return to profitability," he wrote. "We see little upside to the stock from its current level."

Separately, Central Pacific said it is reducing the size of its board of directors on the holding company to eight from 12 and for the bank to nine from 14. Resigning from the company and the bank are Richard Blangiardi, Jeannie Hedberg, Ronald Migita, Mike Sayama, Maurice Yamasato and Dwight Yoshimura. Jeffrey Cavanaugh, who was only on the bank's board, also resigned.

Remaining as members of both boards are Executive Chairman John Dean, Christine Camp, Earl Fry, Paul Kosasa, Colbert Matsumoto and Crystal Rose. Duane Kurisu, who was only a member of the bank's board, also will remain in that capacity.

In addition, the two lead investors, The Carlyle Group and Anchorage Capital Group, each will have a representative on the dual boards. James Burr is a managing director of The Carlyle Group and Alvaro Aguirre, who will represent Anchorage Capital, is chairman of Cygnus Business Media, a business-to-business communications company.

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