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Central Pacific posts $183.1M loss amid 2 big charges

By Dave Segal

POSTED: 06:58 a.m. HST, Oct 29, 2009

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Central Pacific Financial Corp. staggered to a $183.1 million loss in the third quarter as it took two big charges tied to its exposure to the struggling California and Hawaii commercials real estate markets.

The state’s third-largest bank in terms of assets took a non-cash goodwill impairment charge of $50 million and a non-cash charge related to the establishment of a valuation allowance against the company’s net deferred tax assets totaling $61.4 million.

"Our quarterly results continue to be adversely impacted by increased credit costs resulting from further deterioration in the Hawaii and California commercial real estate markets and the resultant decline in property values in those sectors," said Ron Migita, chairman, president and chief executive officer of Central Pacific.

"We continue to expect these challenging economic conditions to persist over the coming quarters and to result in further credit deterioration.

Central Pacific, which had a $3 million profit a year ago, had a net loss of $6.38 a share last quarter compared with earnings of 11 cents a share in the comparable period in 2008.

Excluding the charges, Central Pacific had a net loss last quarter of $71.7 million, or $2.54 a share.

Central Pacific Financial Corp. staggered to a $183.1 million loss in the third quarter as it took two big charges tied to its exposure to the struggling California and Hawaii commercials real estate markets.

The state’s third-largest bank in terms of assets took a non-cash goodwill impairment charge of $50 million and a non-cash charge related to the establishment of a valuation allowance against the company’s net deferred tax assets totaling $61.4 million.

"Our quarterly results continue to be adversely impacted by increased credit costs resulting from further deterioration in the Hawaii and California commercial real estate markets and the resultant decline in property values in those sectors," said Ron Migita, chairman, president and chief executive officer of Central Pacific.

"We continue to expect these challenging economic conditions to persist over the coming quarters and to result in further credit deterioration.

Central Pacific, which had a $3 million profit a year ago, had a net loss of $6.38 a share last quarter compared with earnings of 11 cents a share in the comparable period in 2008.

Excluding the charges, Central Pacific had a net loss last quarter of $71.7 million, or $2.54 a share.

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