Central Pacific Financial Corp. (NYSE:CPF) Q3 2019 Earnings Conference Call - Final Transcript
Oct 23, 2019 • 01:00 pm ET
Good afternoon, ladies and gentlemen. Thank you for standing by and welcome to the Central Pacific Financial Corp Third Quarter 2019 Conference Call. During today's presentation, all parties will be in listen-only mode. Following the presentation, the conference will be open for questions. This call is being recorded and will be available for replay shortly after its completion on the company's website at www.centralpacificbank.com.
I'd like to turn the call over to Mr. David Morimoto, Executive Vice President, Chief Financial Officer. Please go ahead.
David S. Morimoto
Thank you, Ivy, and thank you all for joining us as we review the financial results of the third quarter of 2019 for Central Pacific Financial Corp. With me this morning are Paul Yonamine, Chairman and Chief Executive Officer; Catherine Ngo, President; and Anna Hu, Executive Vice President and Chief Credit Officer.
During the course of today's call, management may make forward-looking statements. While we believe these statements are based on reasonable assumptions, they involve risks that may cause actual results to differ materially from those projected. For a complete discussion of the risks related to our forward-looking statements, please refer to our recent filings with the SEC.
And now, I'll turn the call over to Paul.
Paul K. Yonamine
Thanks, David and good morning, everyone. I'm pleased to report on the company's solid financial performance for the third quarter of this year as well as for the year-to-date performance over the past nine months. We continued to generate strong loan and core deposit growth and maintained solid asset quality and capital ratios, both on a sequential quarter and a year-over-year basis. On a nine-month year-to-date basis compared to last year, we improved our net interest income, net interest margin, non-interest income and efficiency ratio. David will be providing the details of our financial highlights later in this call.
Our profitability and strong capital position enabled us to repurchase 140,600 shares of CPF stock during the quarter. Year-to-date, we have repurchased 631,300 shares or roughly 2.2% of our common stock outstanding as of the end of 2018. Combined with cash dividends, we have returned $37.2 million in capital to our shareholders this year.
At our last earnings call, we announced RISE2020, a comprehensive initiative to enhance customer experience, drive stronger long-term growth and profitability and improve shareholder returns. Since the launch, we have heard positive and encouraging feedback from our customers and employees. While still early in the initiative, we did successfully outsource residential mortgage servicing in the third quarter. On deck for the fourth quarter are the launch of the new website under the cpb.bank domain name, the employee pilot phase of our upgraded online and mobile banking platforms and the implementation of an end-to-end commercial loan origination system. Efforts to hit our 2020 milestones in our branch modernization and digital banking initiatives are progressing very well.
The economic conditions and key leading indicators in Hawaii are projected to grow, but at a slower rate than in previous year. The bright spot may be in construction activity with a