Central Pacific Financial Corp., a Honolulu-based bank holding company whose shares have been trading around a 33-month low, said its board of directors has boosted the number of its own shares the company can repurchase.

The parent company of Central Pacific Bank yesterday said the board authorized the repurchase of up to 1.5 million shares, or 4.5 percent of its outstanding common stock. The buyback can be made in open market transactions or in privately negotiated transactions.

"With this increase in our stock repurchase authorization, management will take advantage of market opportunities to enhance shareholder value, said Dean K. Hirata, Central Pacific vice chairman and chief financial officer, in a press statement.

It was the second time this year the company's board had authorized a share repurchase. A number of bank holding companies are seeking share buybacks to prop up share prices as the stocks sink on investor concerns about subprime mortgage defaults and a decline in lending activity as the economy slows. The Standard & Poor's Banks Composite Index slipped to a 52-week low on Tuesday.

In April, the board had authorized the repurchase of up to 600,000 shares of stock.

Central Pacific Financial said it still can buy back up to 238,200 shares with existing capacity under that authorization.

With the new capacity announced yesterday, the company can now buy back up to 1.74 million shares.

Central Pacific also yesterday boosted its third-quarter cash dividend to 25 cents a share.

That was a 4.2 percent increase over the 24-cent dividend paid in the second quarter. It is payable on Sept. 21 to shareholders of record as of Aug. 17.

The company is scheduled to release its earnings today.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.