Central Pacific Bank loses 72.5 millionNovember 11, 2010, 4:25 PM HST · Updated November 11, 4:25 PM 0 Comments
Although some economists have indicated that we are out of the recession, some companies, banks, and consumers would argue differently. While there have been increases in sales and while some companies have experienced profits noted on their quarterly statements, not all companies and banks are doing so well. However, despite some companies still bringing what are considered losses to some, the losses are actually reflective of increases in the companies’ progress – a loss in revenue does not always completely indicate a company that is still struggling.
One such company that is still suffering from a dower economy is Central Pacific Financial Corporation. However, brighter horizons are in Central Pacific Financial Corporations future. Despite a loss of seventy-two million dollars this is actually an increase from 2009.
Central Pacific Financial Corporation, which is the parent company of Central Pacific Bank, reported a loss of seventy-two million dollars in its third quarter report. While this is better than the one hundred and eighty-three million dollar loss reported in its 2009 third quarter report, it is still a loss that is hurting the company.
However, the company noted that it has worked to create some working room in the event that loans falter. Currently, Central Pacific Financial Corporation has set aside another almost eighty million dollars as a cushion for loan losses. This means that while the money is technically considered a loss, it is actually money that can be used to pay down debts, etc.
Central Pacific Financial Corporation is a bank holding company that offers thirty-seven bank branches, as well as almost one hundred and twenty automatic teller machines throughout Hawaii. Claiming over four billion dollars in assets, Central Pacific Financial Corporation also has a residential mortgage subsidiary in the state of Hawaii.
In other recent Central Pacific Financial Corporation news, the company announced that it has almost reached an agreement with The Carlyle group and Anchorage Capital Group, L.L.C. in which they have agreed to invest almost ninety-eight million dollars in common stock.
This ninety-eight million dollar investment is part of a larger three hundred and twenty-five million dollar capital raise that will, according to Executive Chairman of the Board John C. Dean, work to “improve CPF’s balance sheet and provide the Company with the capital necessary to address its near-term challenges and build for the longer-term.”
Dean went on to note that this support will allow Central Pacific Financial Corporation to “meet [its] longstanding commitment to the community, which [they] have served over the last 56 years.”
A partner of Anchorage Capital Group, L.L.C., Daniel Allen, noted that the company is “pleased to join in CPF’s recapitalization.” This recapitalization gives Anchorage Capital Group, L.L.C. an ownership of almost twenty-five percent of the common stock of the company.
Anchorage Capital Group, L.L.C. is a investment adviser that was founded in 2003. It manages private investment funds in North America and Europe. The Carlyle Group is an alternative asset manager that was founded in 1987, since investing over sixty billion dollars of equity, employing eight hundred and eighty people in almost twenty countries.