Successful Recap Returns Central Pacific to Profitability

By Sonia Isotov

Central Pacific Financial Corp., parent company of Central Pacific Bank, yesterday reported that its successful recapitalization has lead to net income for the first quarter of 2011.

 Central Pacific reported net income of $4.6 million for the first quarter 2011, compared to net losses in the first and fourth quarters of 2010 of $160.2 million and $2.1 million, respectively.  

“We are pleased with our first quarter results,” said John C. Dean, President and Chief Executive Officer.  “Our return to profitability was the result of lower credit costs driven by continued improvement in our asset quality.  With a solid capital foundation in place, we look forward to continuing our long standing commitment of service to our customers and are well positioned for growth in our Hawaii marketplace.”    

Net income per diluted share for the first quarter of 2011 was $4.58, which included the impact of a one-time accounting adjustment totaling $85.1 million resulting from the exchange of the Company’s preferred stock issued to the U.S. Department of Treasury for common stock as part of its recapitalization.

Excluding this one-time adjustment, which did not impact the Company’s reported net income of $4.6 million, the Company’s net income per diluted share for the first quarter of 2011 was $0.18.  During the first and fourth quarters of 2010, the Company’s net loss per diluted share was $107.23 and $2.78, respectively.