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Bank’s chief will go on tour to raise cash

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Central Pacific Bank’s executive chairman is hoping to raise more than $200 million for the financially strapped institution when he goes on a road show next month and meets with large investor groups around the country.

John Dean, who was appointed to his post in March, said he’s optimistic that the state’s fourth-largest bank in terms of assets will be able to raise the capital it needs by the end of the year to comply with capital ratio requirements mandated by the Federal Deposit Insurance Corp. and the state Division of Financial Institutions.

The bank, hurt by construction and commercial real estate loans — primarily in California — lost $102.7 million in the first quarter and nearly $293 million in 2009.

"I’m encouraged," Dean said. "There seems to be positive interest in the recaps (recapitalizations) and one of the institutions there’s growing interest in is Central Pacific Bank. I’m encouraged by the feedback I’m receiving in the marketplace."

New York-based investment banking adviser Sandler O’Neill + Partners LP is assisting Central Pacific in putting together stops on the road show, which Dean said could include New York, Boston, Chicago, Los Angeles and San Francisco.

"We’re looking for at least $200 million but it could be more," Dean said.

Dean also said the bank hopes to name a new chief financial officer and chief credit officer in the next 60 days. He said he’s hoping to take one of those new appointees on the road show, but if neither is in place by that time, "we have good, strong backups in this organization to help with that."

He said the markets recently have been more receptive to investing in financial institutions as evidenced by several recent transactions nationwide.

"This is positive for Central Pacific in that there seems to be momentum and market demand for financing community banks our size," Dean said.

 

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