Reeling from problem loans to California developers, Central Pacific Financial Corp. today named company chairman Ronald Migita as its new president and chief executive officer.

The 67-year-old Migita replaces high-profile chief executive officer Clint Arnoldus, who was the architect of the company's 2004 merger with CB Bancshares Inc.

News of Migita's appointment came several hours after Central Pacific announced an operating loss of $52 million for the second quarter due to losses from loans to California homebuilders hard hit by the subprime lending crisis.

"These are difficult times for financial institutions across the country. But during my career, I have seen difficult times before, and met every challenge head on," Migita said in a news release.

"My banking experience and my knowledge of the Hawai'i market will allow me to move quickly and decisively to tackle our current challenges."

Shares of Central Pacific were down 68 cents to $11.09 on the New York Stock Exchange today.

Migita's charismatic predecessor, Arnoldus, orchestrated Central Pacific's $420 million merger with City Bank's parent, which expanded the bank's balance sheets, added dozens of branches and allowed the company to better compete with Hawaii's larger banks.

Arnoldus' aggressive growth plan also resulted in losses in markets such as California which has been hard-hit by credit turmoil and the downturn in real estate values. Since January, the company has charged off more than $128 million due largely to problem loans to residential developers in Southern California.

Migita, whose appointment as CEO takes effect tomorrow, has served as Central Pacific's chairman since the 2004 merger with CB Bancshares and before that was president and chief executive officer of CB Bancshares. Prior to joining City Bank in 1995, Migita held various executive positions at the Bank of Hawaii.

Migita is a member of the University of Hawai' Board of Regents and is a trustee for the Public Schools of Hawaii Foundation. He will remain as Central Pacific's chairman.