Central Pacific Financial Q2 net interest income rises on higher loan yield
CPF•Key second-quarter figures
| Metric | Actual |
|---|---|
| Q2 EPS | $0.80 |
| Q2 net income | $20.82 million |
| Q2 net interest income | $62.83 million |
| Q2 provision for credit losses | $4.38 million |
| Q2 ROE | 13.94% |
Drivers and outlook were unchanged
- Loan and investment yields - The company said higher average balances and yields on loans and investment securities, along with lower deposit costs, drove increases in net interest income and margin.
- BOLI income - An increase in income from bank-owned life insurance due to favorable equity market performance boosted other operating income.
- Operating expenses - Higher salaries and employee benefits, mainly from increased deferred compensation expense tied to equity market performance, raised operating expenses.
The company did not provide specific guidance for future quarters or the full year in the press release.
Dividend and buybacks supported capital returns
The company raised its quarterly dividend and repurchased $11.3 million in shares during the quarter.
