Central Pacific Financial (CPF) said Thursday that first-quarter earnings rose 191% from a year earlier, to $13.5 million, as it reduced nonperforming assets and decreased the amount of chargeoffs.
The $4.2 billion-asset company, based in Honolulu, said it earned 32 cents per share, 6 cents better than consensus estimates of analysts, according to Thomson Reuters. A year ago, Central Pacific had net income of $4.59 per share, which included a one-time accounting adjustment related to its participation in the Treasury Department's Troubled Asset Relief Program. Excluding that item, Central Pacific's year-ago net income was 18 cents per share.
Nonperforming assets fell 28%, to $205.6 million, from a year earlier. The company said net chargeoffs totaled $2.8 million, compared to $13.3 million a year ago. The improvements in credit quality allowed Central Pacific to reduce its allowance for loan and lease losses, President and Chief Executive John Dean said in a statement.
The Hawaii banking company said last month that the U.S. Treasury Department planned an offering on the remaining shares of Central Pacific it acquired through Tarp. Treasury last year sold about half of its $56.2 million investment in the company.