Central Pacific Financial in Honolulu posted lower quarterly profit that reflected a decision to sell securities at a loss.
The $7.5 billion-asset company said in a press release that its fourth-quarter net income fell by 24% from a year earlier, to $11.3 million.
The company sold $106.5 million of debt securities at a $9.9 million pretax loss during the fourth quarter. The proceeds were reinvested in $101.6 million of higher-yielding securities.
The repositioning is expected to improve annual net interest income by $2.7 million starting this year. It should take between three and four years to earn back the loss from the securities sales.