July 14, 2009 (FinancialWire) — Central Pacific Financial Corp. (NYSE: CPF) (Current Market Cap: US$ 78.46 Mil.) has launched a public offering of its common stock to raise gross proceeds of up to $100 million. The bank holding company also said it expects to report a net loss of around $33 million to $37 million, or around $1.22 to $1.35 per diluted common share, for the second quarter of 2009.

The company intends to grant the underwriters, led by Sandler O’Neill & Partners,  a 30 day option to purchase shares, representing gross proceeds of up to an additional $15.0 million, to cover over-allotments.

Central Pacific plans to use the net proceeds from this offering to further strengthen its capital position and for general corporate purposes.

Assuming gross proceeds of $100.0 million, the company’s proforma Tier 1 risk-based capital, total risk-based capital, and leverage capital ratios as of June 30 would have been around 15.6%, 16.9%, and 12.5%, respectively, and its tangible common equity ratio would have been around 7.5%.

In addition to the commencement of the stock offering, Central Pacific Financial also said it expects to report a net loss of around $33 million to $37 million, or around $1.22 to $1.35 per diluted common share, for the second quarter of 2009, compared to net income of $2.6 million, or $0.03 per diluted share, in the first quarter of 2009.

Central Pacific Financial said that it is suffering higher credit costs as the result of an increase in its allowance for loan and lease losses. Central Pacific Financial expects net loan charge-offs for the second quarter of 2009 to be around $28 million to $33 million compared to $24.3 million in the first quarter of 2009 and nonperforming assets to be around $256 million to $266 million at June 30, 2009 compared to $159.9 million at March 31, 2009.

The increase in nonperforming assets was primarily due to the addition of four Hawaii residential construction loans totaling $36.4 million, five Hawaii commercial construction loans totaling $30.3 million and four California commercial construction loans totaling $25.1 million, according to the company.

Central Pacific Financial also expects accruing loans delinquent for 30 days or more to decrease from $107.9 million at March 31 to around $20 million to $22 million at June 30.

Honolulu-based Central Pacific Financial is the parent of Central Pacific Bank, which operates 39 branches and more than 100 ATMs throughout Hawaii.

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