Shares of Central Pacific Financial Corp. fell sharply today after the banking company reported a net loss of $183 million, or $6.38 per share, for the third quarter.

CPF, the parent of Central Pacific Bank, said rising credit costs resulting from loans it made in the the deteriorating Hawaii and California commercial real estate markets contributed to the loss, which included several one-time charges.
In the same quarter a year ago CPF reported a profit of $3 million, or 11 cents a share.
Excluding the one-time charges in the current quarter Central Pacific lost $71.1 million, of $2.54 a share in the current quarter. The one-time charges included a non-cash goodwill impairment charge of $50 million and a non-cash charge related to the establishment of a valuation allowance against the company's net deferred tax assets totaling $61.4 million.
The goodwill impairment charge had no impact on the company's regulatory capital, tangible equity, or cash flows and was directly attributable to the current quarter decline in the company's market capitalization, Central Pacific said in a news release.
"Our quarterly results continue to be adversely impacted by increased credit costs resulting from further deterioration in the Hawaii and California commercial real estate markets and the resultant decline in property values in those sectors," said Ronald K. Migita, Chairman, president, and chief executive officer.
"We continue to expect these challenging economic conditions to persist over the coming quarters and to result in further credit deterioration. As we navigate through this difficult period, we intend to accelerate the reduction of our credit risk by pursuing loan sales, including potential bulk sales. At the same time, we are pursuing all measures to increase our capital levels, while maintaining strong liquidity."
Central Pacific’s shares were down 85 cents at $1.50 in late trading on the New York Stock Exchange.