Central Pacific posts higher Q1 profit

Central Pacific Bank
Central Pacific Bank

HONOLULU (HawaiiNewsNow) - Central Pacific Financial Corp. (NYSE: CPF) reports $13.5 million profit from the first quarter, triple what it made in the same quarter a year ago.

The parent company of Central Pacific Bank said Thursday it was able to slightly increase its lending even as it continued to shed older loans that had created problems for the bank during the recession. Its net credit position improved.

"Continued improvement in our credit risk profile resulted in a meaningful reduction in our allowance for loan and lease losses that contributed to our profitable quarter," said CEO John Dean.

The bank's loan portfolio is now back above $2 billion.

Deposits grew 11 percent to $3.5 billion and assets grew four percent to $4.2 billion.

In recent days both First Hawaiian Bank and Bank of Hawaii have reported higher earnings, higher deposits, and higher lending. Higher lending is considered important in a recovering economy, since businesses need access to capital to renovate or expand.

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