CPB (NYSE:CPF) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

CPB (NYSE:CPF) announced its earnings results on Wednesday. The financial services provider reported $0.88 earnings per share for the quarter, topping the consensus estimate of $0.85 by $0.03, FiscalAI reports. The firm had revenue of $76.83 million for the quarter, compared to the consensus estimate of $77.27 million. CPB had a return on equity of 14.75% and a net margin of 23.69%.

Here are the key takeaways from CPB’s conference call:

• Third-quarter profitability improved: Net income rose to $22.8 million, or $0.88 per diluted share, up 21% year over year on higher net interest income, a five-basis-point sequential expansion in net interest margin to 3.62%, and better expense control.
• Funding and capital management remained supportive: Core deposits increased as higher-cost time deposits declined, the efficiency ratio improved to 58.3%, and the company repurchased approximately 294,000 shares while raising its quarterly dividend 3.3% to $0.31 per share.
• Loan economics and potential growth are improving: New loan production carried a 6.26% weighted-average rate versus 5.72% on runoff balances, and the company reported $224 million of scheduled fourth-quarter pipeline opportunities, though management cautioned that actual closings may vary.
• Credit quality strengthened: Nonperforming assets fell to 19 basis points of total assets and criticized loans declined to 181 basis points of total loans, while net charge-offs remained low at 20 basis points of average loans.
• Some earnings headwinds remain: Other operating income declined primarily because of lower bank-owned life insurance income amid market volatility, residential mortgage production remains pressured by elevated rates, and management expects deposit costs to rise modestly if loan growth accelerates.

CPB Price Performance

Shares of NYSE CPF opened at $38.46 on Friday. The firm has a 50-day simple moving average of $37.03 and a 200-day simple moving average of $35.36. The company has a quick ratio of 0.84, a current ratio of 0.85 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $990.37 million, a price-to-earnings ratio of 11.62 and a beta of 0.87. CPB has a 52 week low of $28.17 and a 52 week high of $40.99.

CPB Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Monday, November 30th will be given a dividend of $0.31 per share. The ex-dividend date is Monday, November 30th. This is a positive change from CPB’s previous quarterly dividend of $0.30. This represents a $1.24 annualized dividend and a dividend yield of 3.2%. CPB’s dividend payout ratio (DPR) is presently 38.46%.

Wall Street Analyst Weigh In

CPF has been the topic of several research reports. Keefe, Bruyette & Woods reissued a “market perform” rating on shares of CPB in a research report on Thursday. Benchmark began coverage on CPB in a research report on Thursday, July 9th. They issued a “buy” rating and a $44.00 target price on the stock. Weiss Ratings raised shares of CPB from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Tuesday. Truist Financial set a $43.00 price objective on shares of CPB in a report on Thursday. Finally, Zacks Research lowered shares of CPB from a “strong-buy” rating to a “hold” rating in a report on Wednesday, August 26th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $40.33.

About CPB

Central Pacific Financial Corp. is the bank holding company for Central Pacific Bank, a community-focused financial institution headquartered in Honolulu, Hawaii. Central Pacific Bank serves consumers, businesses, nonprofit organizations and government entities, with a focus on customers throughout the Hawaiian Islands.

The bank provides a range of financial products and services, including checking and savings accounts, certificates of deposit, consumer lending, residential mortgages, commercial and small-business loans, commercial real estate financing, and treasury management services.