Central Pacific Financial Corp. said it has postponed plans to sell up to $100 million in new stock, citing the weak financial markets.

Central Pacific also reported a net loss of $34.5 million, or $1.27 per share, for the second quarter 2009.

The company warned investors earlier this month that it expected to report a net loss of $33 million to $37 million for the three months ending June 30.

"The current market conditions prevented us from completing our capital raising objectives at this time," said Ron Migita, Central Pacific's chairman and chief executive officer.

"While we remain well-capitalized for regulatory purposes, we continue to believe that proactively raising additional capital is appropriate and prudent."

Shares of Central Pacific rose 38 cents, or nearly 20 percent, to close at $2.29 on the New York Stock Exchange yesterday. News of the postponement was released after the nation's financial markets had closed.

The IPO wasn't popular on Wall Street because it diluted existing stockholders' shares.

Earlier this month, the company's stock suffered its largest one-day decline in at least two decades — 25 percent — after CPF announced it was conducting an offering and warned investors of the big second quarter loss.

Central Pacific said the stock price decline made it difficult to raise $100 million because the company had a limited amount of issued shares.

Bank officials said the company still plans go ahead with a public offering. They said they plan to seek shareholder approval to increase the number of authorized shares.

Central Pacific stressed that its capital ratios exceed regulators' definition of "well capitalized." The company said its Tier 1 risk-based capital is 13.28 percent while its total risk-based capital is 14.57 percent.

For the second quarter, Migita said the company's results were hurt by the "further deterioration in the Hawai'i and California commercial real estate markets."

The company said $91.8 million worth of loans — including 13 residential and commercial construction loans in Hawai'i and California — were placed on nonperforming status last quarter.

Deposits, meanwhile, increased 1.2 percent, or $45.9 million, to $4 billion but loans and leases fell 9.5 percent to $3.7 billion. Total assets dropped 2.2 percent to $5.5 billion.