Banking: Central Pacific Bank, Hawaii, sees lifting of 2009 Regulatory Order
Central Pacific Financial Corp. says that the regulatory Consent Order placed on its primary subsidiary, Central Pacific Bank (CPB, "the Bank"), on 11 December, 2009, was terminated by the Federal Deposit Insurance Corporation (FDIC) and the Hawaii Division of Financial Institutions (HDFI) on 11 May, 2011.
In place of the Consent Order, the Bank entered into a Memorandum of Understanding (MOU) with its regulators effective May 5, 2011.
"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."
The termination of the formal Consent Order and its replacement with an informal MOU are indicative of the Bank's improved balance sheet and capital position, as well as the strengthening of its overall financial condition and management team. The Company completed a USD345 million capital raising from its private placement on 18 February, 2011 and the recent rights offering and has capital ratios in excess of the minimum requirements of the Consent Order as of 31 March, 2011. The Company also reported a net income of USD4.6 million for the first quarter of this year driven by continued improvements in its asset quality and credit risk profile.
In March of 2010, John C. Dean, who has significant experience with bank turnarounds, was appointed Executive Chairman of CPF and CPB. 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.
Dean was recently appointed President and Chief Executive Officer of CPF and CPB, in conjunction with the appointment of Crystal K. Rose as Chair of the Boards of both organizations, both following receipt of regulatory approvals.
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