Central Pacific Bank receive TARP

source:  Pacific Business News

Us. Department of the Treasury officially took their stake in Central Pacific Bank int he form of $135 million of senior prefered stock.  The hope is that this will stabilze their balance sheet to allow the bank to makes more loans here in Hawaii.

Central Pacific Financial Corp. on Friday sold 135,000 shares of senior preferred stock to the U.S. Department of Treasury, yielding a 5 percent dividend, plus a 10-year warrant to purchase up to $20.2 million, or 1,585,748 shares of the company’s voting common stock at an exercise price of $12.77 per share.

The sale came 30 days after the bank holding company announced it received preliminary approval to receive $135 million from the government’s Troubled Assets Relief Program, or TARP.

Central Pacific’s executives said the capital injection will be used to focus on commercial and retail lending.

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