The parent of Central Pacific Bank said today that it has agreed to the issuance of a formal consent order with the Federal Deposit Insurance Co. and the Hawaii Division of Financial Institutions to improve its asset quality and management oversight.
Central Pacific Financial Corp. said the consent order will require the company to improve its capital position and maintain adequate allowances for loan and lease losses.

Central Pacific added that it recently sold about $100 million of commercial real estate loans, improving its balance sheets.
Central Pacific is the state’s third largest financial institution. The company has been reeling from troubled loans to California homebuilders hard hit by the global economic turmoil.
Shares of Central Pacific were down 2 cents to $1.16 on the New York Stock Exchange today.