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U.S. Treasury selling more than 5 million shares in Central Pacific Bank parent

By Star-Advertiser staff

LAST UPDATED: 11:38 a.m. HST, Jun 15, 2011

The U.S. Department of the Treasury will offer all 5,620,117 shares of stock it owns in Central Pacific Financial Corp., parent company of Central Pacific Bank, in an underwritten public offering, the company said. 

The department acquired the shares Feb. 18 as part of CPF's recapitalization. Based on today's stock price, the department's stake in the company is worth more than $69 million.

CPF will not receive any proceeds of the sale, according to the sale announcement. Four firms, two in New York City, one in Florida and one in Los Angeles, are handling prospectus queries for the sale, which has been registered with the U.S. Securities and Exchange Commission. Sandler O’Neill & Partners is the lead underwriter for the Treasury’s sale.

Stock in the Honolulu-based banking company fell to a 52-week low of $12.07 a share today before rebounding slightly, according to Bloomberg News. The stock closed at $12.42, down $1.71, or 12.1 percent.

Central Pacific, which earned $4.6 million last quarter in posting its first profit in two years, has been getting rid of troubled mortgages, mostly in California, and raising money to improve its financial position.

Last month, federal and state regulators lifted a consent order that had been placed upon the bank 17 months earlier that mandated that Central Pacific improve its capital ratio and other segments of its operations.

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