Overview

• Hawaii regional bank's Q1 net income and EPS rose yr/yr but fell from prior qtr

• Company repurchased $10.5 mln of shares during Q1

• Net interest income declined 1.2% from prior qtr, mainly on lower loan and securities yields

Outlook

• Central Pacific Financial did not provide specific guidance for the current quarter or full year

Result Drivers

• LOWER YIELDS & LOAN BALANCES - Net interest income and margin declined from the prior qtr, mainly due to lower average yields on loans and investment securities, and a decrease in average loan balances and fewer days in the qtr

• LOWER NONINTEREST INCOME - Other operating income fell from the prior qtr, mainly due to lower bank-owned life insurance income and reduced mortgage banking income

• EXPENSE MANAGEMENT - Operating expenses decreased from the prior qtr, driven by lower salaries and benefits and reduced legal and professional services costs

Company press release: ID:nBw8YVPSma

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		$0.78
Q1 Net Income		$20.73 mln
Q1 Net Interest Income		$61.36 mln
Q1 Provision For Credit losses		$2.35 mln
Q1 ROE		13.90%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Central Pacific Financial Corp is $37.00, about 6.9% above its April 28 closing price of $34.61

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

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