News Column

CPB revises earnings upward

February 6, 2014

By Dave Segal, The Honolulu Star-Advertiser

Feb. 06 --The parent of Central Pacific Bank has revised upward its fourth-quarter and full-year net income after discovering an error in its loan-loss reserve following an internal review. The state's fourth-largest bank said it earned $10.3 million , or 23 cents a share, in the October-December period rather than the $9 million , or 21 cents a share, it announced Jan. 30 . Full-year earnings were revised to $172.1 million , or $4.07 a share, from $170.8 million , or $4.04 a share. Parent company Central Financial Corp. said Wednesday ahead of today's official news release that it determined third-party market data applied in the calculation of its allowance for loan and lease losses were not updated with recently available data. As a result of the error, the bank returned $1.3 million to the income statement that had been set aside for potential loan losses rather than booking a $777,000 expense for its loan-loss provision that it previously announced. Central Pacific said its management is assessing the implications of the error on the company's internal controls over financial reporting and that the bank's auditor, KPMG LLP , is conducting a further review of Central Pacific's allowance for loan and lease losses. The bank said it anticipates KPMG's review will be completed by the end of this month. ___ (c)2014 The Honolulu Star-Advertiser Visit The Honolulu Star-Advertiser at Distributed by MCT Information Services

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Source: Honolulu Star-Advertiser (HI)

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