The following is a summary of the Central Pacific Financial Corp. (CPF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Central Pacific Financial Corp. reported a Q3 net income of $13.3 million and diluted earnings per share (EPS) of $0.49.

• Excluding one-time expenses, adjusted net income was $15.7 million, and adjusted EPS was $0.58.

• Net interest income for the quarter was $53.9 million, an increase from the previous quarter, with a net interest margin of 3.07%.

• Total deposits remained relatively stable, with a slight increase in core deposits and decrease in high-cost government time deposits.

• The effective tax rate for the quarter was 22%, benefiting from higher tax-exempt income and low income housing tax credits.

Business Progress:

• Opened a state-of-the-art branch in Kahului, Maui, enhancing service capabilities for both consumers and businesses.

• Despite broader economic challenges, the bank achieved meaningful net interest margin expansion and core deposit growth.

• Strong asset quality was maintained with net charge-offs of $3.6 million, demonstrating robust risk management.

Opportunities:

• The introduction of Ralph Mesick as Senior Executive Vice President and Chief Risk Officer is expected to further enhance the bank's risk management capabilities.

• Positive economic indicators in Hawaii, such as growth in the construction industry and strong real estate values, provide a stable environment for potential business expansion and financial stability.

Risks:

• Loan growth was affected by high interest rates, leading to a decline in the total loan portfolio by $41 million or 0.8%.

• Visitor arrivals in Hawaii saw a decline, especially on the island of Maui, which may impact sectors dependent on tourism.

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