The bank is helped by improvements in its credit portfolio after losing $98.8 million in the year-ago quarter
POSTED: 07:52 a.m. HST, Jan 28, 2011
Central Pacific Financial Corp., closing in on profitability and the completion of its $325 million capital-raising program, sharply cut its losses and finished just $2.1 million in the red during the fourth quarter.
The parent of Central Pacific Bank, which lost $98.8 million in the same period a year ago, said today it expects to finalize its recapitalization next month after receiving the required regulatory approvals. Central Pacific also plans to implement a previously announced 1-for-20 reverse stock split sometime next week.
Shares were down 2 cents at midday at $1.64.
“We are encouraged by our improved financial results, including significant reductions in credit costs, nonperforming assets, and our overall credit risk exposure,” Central Pacific Chairman John Dean said.
Central Pacific, the state’s fourth-largest bank in terms of assets, posted its seventh straight losing quarter but it was the bank’s best financial result since the first quarter of 2009 when it had a profit of $2.6 million.
The bank said the lower net loss last quarter was primarily due to reducing its credit costs to $4.6 million — most of which was set aside for potential loan losses — compared with $76.2 million in the third quarter and $109.5 million in the fourth quarter of 2009.
Central Pacific, which has been focusing on preserving cash, shedding riskier loans and closing its California loan operations, also decreased its nonperforming assets by $69.9 million, or about 17 percent, and its net loan charge-offs by $39 million, or about 60 percent.
Last quarter, the bank’s loss per share was 14 cents versus $3.33 a year ago. Two analysts surveyed by Thomson First Call were forecasting a loss per share of 32 cents.