Central Pacific Bank posted its 14th consecutive profitable quarter and increased its dividend but saw earnings decline 35.9 percent in the April-June period primarily due to a large gain on the sale of mainland foreclosure assets a year earlier.

The state’s fourth-largest bank, which was due to formally announce its earnings Thursday before the stock market opened, continues to make progress in the fourth year of its turnaround after nearly collapsing due to its loan exposure in the once-troubled mainland real estate market.

"Our core operating earnings continue to improve, so once you take out all the noise (such as the foreclosed asset sales), we’re continuing to show good quality earnings and good quality earnings growth," said Chairman and Chief Executive Officer John Dean, who attracted $345 million in investor capital less than a year after being hired in March 2010. Together with his management team the bank has turned around its fortunes since losing $703.1 million from 2008 to 2010.

Overall, parent Central Pacific Financial Corp. reported net income fell to $9.2 million, or 25 cents a share, compared with $14.3 million, or 34 cents a share, in the year-earlier period. That year-ago quarter included a $7.7 million gain on the sale of foreclosed assets, most of which was from a mainland residential development project that had stalled.

Central Pacific’s loans, which shrank during the initial stages of the turnaround as many were sold or restructured, jumped 17.7 percent to $2.79 billion from $2.37 billion in the year-­earlier quarter. And non­performing assets (loans delinquent for 90 days or more), which peaked at $494 million during the first quarter of 2010, were just $42.1 million last quarter, down 30.8 percent from $60.9 million in the year-­earlier period.

"The biggest drivers dollar-wise (in loans) was in our residential mortgages, consumer loans and some commercial real estate — some construction loans," Central Pacific co-President Lance Mizumoto said ahead of Thursday’s earnings report.

At the end of the second quarter, Central Pacific had $2.79 billion in outstanding loans. Of that amount, $2.4 billion was in Hawaii with $27 million nonperforming and $387 million was on the mainland with $15 million delinquent.

In the just-concluded quarter, Central Pacific realized a $600,000 gain from the foreclosure sale of multiple smaller properties on the mainland, far less than the $7.7 million foreclosure asset sale it realized a year ago.

Central Pacific, which suspended its dividend in the first quarter of 2009 before reinstating it a year ago at 8 cents a share, boosted it 25 percent to 10 cents a share. It will be payable Sept. 15 to shareholders of record at the close of business on Aug. 29. The yield based on Wednesday’s closing price of $18.94 is 2.1 percent.

"If you look at the payout and banks similar to ours, (the dividend yield) is a little bit below average," Dean said. "We’re kind of moving it up where you would find us among peers."

The bank also has repurchased about 15 percent of its common stock since the beginning of the year. Central Pacific bought back $68.8 million in stock from shareholders through a tender offer, purchased $56.2 million in shares from its two largest shareholders through separate agreements, and repurchased $3.4 million in stock under a $30 million repurchase program.

Dean said increasing the dividend and buying back shares is a testament to the bank’s improved financial condition.

"It reflects two things," he said. "It reflects a very strong capital position and it reflects very strong earnings that we’ve been able to achieve over the last three years."

Besides the sale of foreclosed assets, Central Pacific’s net income last quarter was affected by setting aside $2 million for potential loan losses compared with a $227,000 credit, or income returned to its income statement, in the second quarter of 2013.

Noninterest income, which includes service charges and fees, fell 32.6 percent to $12 million from $17.8 million primarily due to the sale of the foreclosed assets a year ago.

Net interest margin — the spread between loan and deposit rates — improved to 3.35 percent from 3.23 percent.

Net interest income rose 8.2 percent to $35.9 million from $33.2 million

Deposits edged up 3.8 percent to $4 billion from $3.86 billion and assets increased 0.5 percent to $4.73 billion from $4.71 billion.