Central Pacific Financial Corp., streamlining its operation under pressure from federal and state regulators to improve its financial position, posted a net loss of $160.2 million in the first quarter but said it is making progress on its recovery plan.

The parent of Central Pacific Bank said the financial results included a noncash goodwill impairment charge of $102.7 million to reflect the diminished value stemming from its September 2004 acquisition of rival City Bank. The company, which had a profit of $2.6 million in the year-earlier quarter, now has no goodwill remaining on its books.

John Dean, the turnaround specialist who was appointed executive chairman in March, said yesterday the bank, which lost nearly $293 million in 2009, is improving its situation even though it missed the regulator-imposed March 31 deadline to reach certain capital ratios. He said the bank is still looking for ways to get a cash infusion.

“;We're going to have to raise capital,”; he said. “;We've been very public about that, and we'll be back in the market later this year and we'll be testing the waters at the end of May and in early June to see the interest level in the private-equity market in terms of investing and helping to recapitalize the bank.”;

Dean, 62, said he still doesn't know how much the bank needs to raise, but said there have been a couple of positive signs this week from banks on the mainland that have been able to raise capital. He said he doesn't want to speculate what would happen if the bank doesn't attract the funds.

“;The way I look at it is that we'll be able to, so we want to remain positive,”; he said. “;We've got several qualities that will help us in raising capital. We've got excellent franchise value. In addition, our difficult situation is getting better, and we'll understand in the next five weeks the additional capital we'll need to fix that. With the (private equity) market's growing interest in recapitalization, I think we have a very good chance of raising the money.”;

Analyst Joseph Gladue of Haverford, Pa.-based B. Riley & Co. said he believes the bank has a good chance of righting itself.

“;It looks like they've made some good progress in bringing down the level of nonperforming assets,”; Gladue said. “;Their big problem is that they really need to raise capital soon, but John Dean does have a successful track record while turning around banks. There are people who have made money with him before that probably would be willing to invest with him again.”;

Central Pacific took several steps last quarter to comply with a December consent order from the Federal Deposit Insurance Corp. and the Hawaii Division of Financial Institutions that calls for the bank to improve its capital position, asset quality, liquidity and management oversight. Among them:

» Sold $439.4 million worth of investment securities for a net gain of $800,000, reducing total investment securities as a percentage of total assets to 10.1 percent as of March 31 from 19 percent as of Dec. 31, 2009.

» Reduced credit risk exposure in the mortgage-backed securities and municipal securities portfolios by $52.7 million and $37.3 million, respectively.

» Pared its total loans and leases to $2.8 billion as of March 31 from $3 billion as of Dec. 31.

» Increased its allowance for loan and lease losses, as a percentage of total loans and leases, to 7.4 percent as of March 31 from 6.8 percent as of Dec. 31.

» Reduced its credit costs to $66.5 million from $109.5 million in the fourth quarter.

» Recognized net charge-offs of $52.5 million compared with net charge-offs of $104.9 million in the fourth quarter.

» Improved its liquidity position with cash and cash equivalents of $865.4 million as of March 31 compared with $488.4 million as of Dec. 31.

» Reported tier 1 risk-based capital, total risk-based capital and leverage capital ratios as of March 31 of 8.99 percent, 10.32 percent and 5.78 percent, respectively, compared with 9.62 percent, 10.93 percent and 6.81 percent, respectively, as of Dec. 31.

» Originated $234.2 million in residential home loans in Hawaii.

In addition, the bank closed two California loan production offices during the quarter, with a third closure planned later this year and the remaining office to be shuttered by 2012. This month the bank also cut 90 positions, including 40 that were occupied, and consolidated its Bethel Street and Kapiolani branches into other branches.

Central Pacific also continued to shake up its management ranks since Dean was appointed on March 16 to replace Ron Migita, who resigned as chairman, president and chief executive officer. It announced yesterday that Mary Weisman, executive vice president and interim chief credit officer, had resigned, effective June 30. Earlier this month, Blenn Fujimoto, the president and CEO of Central Pacific HomeLoans Inc., had his vice chairmanship eliminated. And last month, Chief Financial Officer Dean Hirata resigned, effective May 31.