Plagued by bad residential construction loans in California, Central Pacific Financial Corp. in Honolulu said Wednesday that its first-quarter profit dropped more than 90% from a year earlier, to $1.7 million.
The loan-loss provision rose 22% from the fourth quarter and more than 1,200% from a year earlier, to $34.3 million.
Clint Arnoldus, the president and chief executive officer of the $5.8 billion-asset parent of Central Pacific Bank, said that despite the real estate issues in California, credit quality in Hawaii remains strong.
Central Pacific Financial said its nonperforming assets nearly doubled from the fourth quarter, to $118.8 million, or 2.05% of total assets. All but $5.4 million of the nonperformers were in California.
Shares of Central Pacific fell 5.7% Wednesday, to close at $18.36.
