Regulators Lift Consent Order against Central Pacific Bank
By Sonia Isotov
Central Pacific Financial Corp. (CPF) announced today that the regulatory Consent Order placed on its primary subsidiary, Central Pacific Bank (CPB) on December 11, 2009 was terminated by the Federal Deposit Insurance Corporation (FDIC) and the Hawaii Division of Financial Institutions (HDFI) on May 11.
The termination of the formal Consent Order was replaced by an informal Memorandum of Understanding with the regulators, effective May 5, 2011. The Bank continues to strengthen its overall financial condition and management team, and the change is indicative of Bank’s improved balance sheet and capital position.
“We are pleased to have attained this important milestone as we continue to make progress in our Company’s recovery,” said John C. Dean, President and Chief Executive Officer of CPF and CPB. “With a solid capital foundation, we are well positioned to grow our institution and focus on profitability.”
Capital ratios in excess of the minimum requirements of the Consent Order were reached as a result of the recent completion of a $345 million capital raise from its private placement on February 18, 2011 and a recent rights offering. The Company also reported a net income of $4.6 million for the first quarter of this year driven by continued improvements in its asset quality and credit risk profile.
Recent management team changes have included the appointed of John C. Dean, who has significant experience with bank turnarounds, to Executive Chairman of CPF and CPB, on March of 2010. A new executive management team was assembled by Dean shortly after his arrival, including officers who later assumed the positions of Chief Financial Officer, Chief Credit Officer, and Chief Administrative Officer following receipt of regulatory approvals. These team changes came in conjunction with the appointment of Crystal K. Rose as Chair of the Boards of both organizations.