Yahoo Finance

• Net Income (Q4 2024): $11.3 million or $0.42 per diluted share.

• Adjusted Net Income (Q4 2024): $19 million or $0.70 per diluted share, excluding investment securities loss.

• Net Income (Full Year 2024): $53.4 million or $1.97 per diluted share.

• Adjusted Net Income (Full Year 2024): $63.4 million or $2.34 per diluted share, excluding investment securities loss and strategic opportunity expenses.

• Net Interest Income (Q4 2024): $55.8 million, an increase of $1.9 million from the prior quarter.

• Net Interest Margin (Q4 2024): 3.17%, up 10 basis points sequentially.

• Total Deposit Growth (Q4 2024): $61 million, with core deposit growth of $74.2 million.

• Loan Portfolio Growth (Q4 2024): Increased by $9.8 million or 0.2% sequentially.

• Other Operating Income (Q4 2024): $2.6 million, impacted by a $9.9 million investment repositioning loss.

• Adjusted Other Operating Income (Q4 2024): $12.5 million, excluding the investment repositioning loss.

• Other Operating Expense (Q4 2024): $44.2 million, including a $1.4 million impairment charge on intangible assets.

• Net Charge-Offs (Q4 2024): $3.8 million or 29 basis points on annualized average loans.

• Nonperforming Assets (Q4 2024): $11 million or 15 basis points of total assets.

• Allowance for Credit Loss (Q4 2024): $59.2 million or 1.11% of outstanding loans.

• Provision Expense (Q4 2024): $800,000.

• Quarterly Cash Dividend: $0.27 per share, an increase of $0.01 or 3.8% from the prior quarter.

• Share Repurchase Authorization (2025): Up to $30 million.

• Warning! GuruFocus has detected 2 Warning Sign with CPF.

Release Date: January 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Central Pacific Financial Corp (NYSE:CPF) achieved meaningful net interest margin (NIM) expansion and core deposit growth in the fourth quarter of 2024.

• The company completed an investment portfolio repositioning that is expected to lead to significant income accretion in 2025.

• Hawaii's economy remains resilient with strong construction and military spending, and an improving tourism sector, which bodes well for CPF's growth opportunities.

• CPF's total deposit portfolio grew by $61 million, with core deposit growth of $74.2 million, indicating strong deposit performance.

• The company declared a quarterly cash dividend increase of $0.01 to $0.27 per share, reflecting a strengthening outlook for earnings and capital.

Negative Points

• CPF's fourth-quarter results were impacted by a $9.9 million pretax loss from the sale of securities as part of their investment portfolio repositioning.

• Net charge-offs increased by 2 basis points due to losses on two credits in the commercial and industrial (C&I) segment.

• The company faced a $1.4 million impairment charge on intangible assets related to fintech apps developed in 2022.

• CPF's consumer loan book continues to run down, with some issues stemming from a 2022 vintage.

• The recovery of visitors from Japan remains slow, posing challenges to the tourism sector despite stronger US visitor arrivals.