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Central Pacific Financial Notches Gain on $125 Million Share Buyback

  +Follow February 21, 2014 8:54AM
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The Honolulu-based bank Central Pacific Financial (CPF) ended the week with a solid gain after announcing a major share buyback program designed to increase shareholder value. The company’s stock had had a rough month leading up to the announcement, making the buyback that much moiré welcome.

The shares will be repurchased in a rolling Dutch auction. CPF President explained that this method, which values shares between $18 and $21, offers “an efficient way to sell all or some of their shares without the potential disruption in share price from market sales."

A rolling Dutch auction will allow shareholders some flexibility in selling. The method allows shareholders to indicate how many shares and at what price, or prices, they wish to tender their shares of the company.

Investors in Central Pacific have been on quite a ride over the last several years. While most all financial institutions were hit hard during the global recession, Central Pacific’s woes were especially pronounced. The company’s shares topped $787 apiece at the beginning of 2007 before tanking spectacularly.

The government was forced to bail out Central Pacific in January 2009 to keep them from going insolvent. After Central Pacific briefly recovery following the bailout, shares once again tumbled, and have since languished in the $10 to $20 range.

In 2012 it was announced that the US Treasury had provided $135 million in TARP funds, and was only able to recover $74 million, thus posting a $61 million in losses. Since then, Central Pacific has made strides to once again become profitable and return value to stockholders.

The buyback includes $68.8 million worth of shares from private investors, and $52.2 million from its two largest shareholders, Carlyle Financial Services Harbor L.P. and ACMO-CPF, LLC.

Central Pacific operates 35 branches throuhgout Hawaii. On Feb.  21 shares of Central Pacific climbed 6.29 percent to hit $19.76 a share.

operates 35 branches and 112 ATMs in the state of Hawaii, - See more at: http://www.noodls.com/view/26AA417C20872662BF2481AEAFAF0B5D5211F5D9#sthash.Zu65J9cP.dpufOn Feb. 21 shares of Central Pacific climbed 6.29 percent to hit $19.76 a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for CPF
15 Dec 14 18:46:15
The Most Popular in Twitter About $CPF (Central Pacific Finl symbol CPF) on 12/16/2014 http://t.co/8CmhEQAhPr
Pairs Trader
15 Dec 14 14:50:04
http://t.co/iwpX88fyI3 Buy $CPF & sell $IBCP exp. ret 5.6;
15 Dec 14 12:43:30
$CPF Central Pacific Financial Corp. Presentation: Sandler O'Neill Non-Deal Roadshow From our Stock News Alerts App
15 Dec 14 04:25:34
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12 Dec 14 23:58:34
CPF -1.22% Stock Charts $CPF Central Pacific Financial Corp. (NYSE) Last Updated: 12/13/2014 01:58:35 CPF Stoc http://t.co/V7vZFix463
11 Dec 14 07:52:02
Central Pacific Financial Corp. SVP Unloads $90,500 in Stock $CPF http://t.co/ojjWG41ufa
11 Dec 14 05:26:38
Central Pacific Financial Corp. (CPF) Drops 5.74% on December 10 $CPF http://t.co/LxTVKZ0HKl
Sleek Money
10 Dec 14 08:21:12
Insider Selling: Wayne Kirihara Sells 4,525 Shares of Central Pacific Financial Corp. Stock $CPF http://t.co/xpUuqhAGIR
10 Dec 14 08:15:05
$CPF: Insider Selling: Wayne Kirihara Sells 4525 Shares of Central Pacific ... http://t.co/VmemOuuXss http://t.co/WjGfQFpskl
9 Dec 14 21:29:02
$CPF CPF Stock year to date has changed -0.25% percent. +4.49% in the last 30 days. $CPF Central Pacific Financial http://t.co/FP8o8w6RIX
  +Follow February 21, 2014 8:54AM



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