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The Honolulu Advertiser
Posted on: Friday, April 30, 2010

CPF records $160M first-quarter loss after hefty goodwill writeoff

Rick Daysog
Advertiser Staff Writer

The parent of Central Pacific Bank reported a $160.2 million net loss for the first quarter after the company wiped out all of the goodwill on its books.

But John Dean, Central Pacific Financial Corp.'s Executive Chairman, believes that the company has gotten beyond its biggest difficulties.

"We still have some challenging quarters ahead of us," said Dean. "But the worst is behind us."

Shares of Central Pacific skidded 13.8 percent, or 35 cents, to close at $2.18 on the New York Stock Exchange yesterday.

Central Pacific Financial said its net loss of $160.2 million, or $5.36 per share, was the biggest for the first quarter and was its second largest loss behind third quarter 2009's $183.1 million.

It also compares with a net profit of $2.6 million, or 3 cents per share in the year-earlier period.

The quarterly loss includes a $102.7 million noncash, goodwill impairment charge. Minus the charge, the company reported an adjusted loss of $57.5 million, or $1.97 per share.

The goodwill impairment charge has no impact on Central Pacific's regulatory capital ratios, tangible equity or cash flows, the company said.

Goodwill is the value of a company above its book value. Central Pacific accumulated more than $300 million in goodwill as a result of its 2005 merger with the parent of City Bank.