FDIC Swaps Enforcement Actions for Hawaii's Central Pacific

Central Pacific Financial (CPF) in Honolulu has had one enforcement action replaced with another.

Central Pacific said in a regulatory filing Tuesday that the Federal Deposit Insurance Corp. had lifted a memorandum of understanding that obligated the $4.3 billion-asset company’s bank to maintain adequate capital, improve asset quality, provide sufficiently for loan losses and reduce classified assets.

The FDIC lifted the memorandum on Oct. 26, the company said.

Central Pacific also said that it had entered into a separate memorandum of understanding with the FDIC on Oct. 9 that obligates the bank to improve its compliance management system. Among other things, the bank must review its compliance policies and procedures, develop an internal monitoring program and strengthen its compliance audit function.

The company also remains subject to an agreement with the Federal Reserve Board and its state regulator that bars Central Pacific from paying dividends, redeeming equity or debt, or borrowing money until its bank submits plans that detail capital needs and cash flow, among other requirements.