HONOLULU, Dec. 9 /PRNewswire-FirstCall/ -- In a move to focus on its core business in Hawaii, Central Pacific Bank announced its decision to exit the West Coast market and wind down its California loan operations. The bank has informed its 18 California staff members of its intention to close all of its West Coast operations by 2012.
"We have not made a loan in California in more than 18 months and have been diligent in reducing our loan portfolio there," said Ronald K. Migita, Chairman, President and CEO. "By the end of the third quarter, we've reduced our total loans and leases by $622.6 million, or 15.3% from a year ago, many of which were in California. Our mainland team continues to reduce our exposure in California as we shift gears to fully concentrate on the Hawaii market."
Migita said that the bank has accelerated its efforts to reduce credit risk by pursuing loan sales, including potential bulk sales, in addition to loan restructuring and pay downs. As of September 30, 2009, the bank's mainland construction and commercial real estate loans totaled $865.8 million.
"The economic conditions in Hawaii remain challenging," Migita said. "The ability to stay focused on our core business is part of an overall strategy to help the bank weather this prolonged downturn and position us to contribute to the recovery of the state's economy."
About Central Pacific Financial Corp.
Central Pacific Financial Corp. is a Hawaii based financial institution with $5.2 billion in assets. Central Pacific Bank, its primary subsidiary, operates 37 branches, a residential mortgage subsidiary, and more than 100 ATMs throughout the State of Hawaii. For additional information, please visit the Company's website at http://www.centralpacificbank.com/.
Central Pacific Financial Corp.
CONTACT: investors, David Morimoto, SVP & Treasurer, +1-808-544-3627,
david.morimoto@centralpacificbank.com, or media, Wayne Kirihara, SVP Corporate
Communications, +1-808-544-3687, wayne.kirihara@centralpacificbank.com, both
of Central Pacific Financial Corp.
Web Site: http://www.centralpacificbank.com/
