Central Pacific Financial Corp (NYSE: CPF)

Central Pacific Financial Corp. is a Hawaii corporation and a registered bank holding company that serves as the holding company for its principal subsidiary, Central Pacific Bank. The company provides full service commercial banking through 27 branches and 55 ATMs across the State of Hawaii, with 20 branches on Oahu, 4 on Maui, 2 on Hawaii Island and 1 on Kauai. Administrative offices are located in Honolulu. Central Pacific Bank offers demand, money market, savings, and time deposits as well as commercial and industrial, construction, commercial real estate, residential mortgage, home equity, and consumer loans. The bank also provides cash management, digital banking, fiduciary and investment management services. Deposits are insured by the FDIC up to applicable limits. In January 2025 the Bank became a member of the Federal Reserve System, making the Federal Reserve Bank its primary federal regulator. The company reports financial results on a fiscal year ending December 31 and operates as a single reportable segment: banking operations. As of December 31 2025 the company employed 763 individuals, including 722 full time and 41 part time employees, with an average tenure of 9 years and 33% of staff having been with the company for 10 years or more. The company relies on dividends received from the Bank for its operations and is publicly traded on the New York Stock Exchange under the ticker CPF.

Central Pacific Financial Corp. generates revenue primarily from interest and fees on loans, interest and dividends on investment securities, and fees related to deposit and other services. Interest income is derived from the bank’s loan portfolio which includes residential mortgage, commercial and industrial, commercial mortgage, construction and consumer loans, as well as from its holdings of investment securities. Fee income comes from deposit account charges, cash management services, digital banking platforms, and fiduciary and investment management activities. The bank sells a portion of its 1st mortgage originations to the secondary market while retaining the remainder in its loan portfolio. Relationship based Hawaii retail and small business deposits provide a stable low cost source of funding to support balance sheet growth and margin optimization. The company seeks to diversify its funding sources through strategic partnerships with customers in Japan and Korea. Major operating expenses consist of interest paid on deposits and borrowings, salaries and employee benefits, and general operating costs.

The company operates through the following segments:

• Banking operations: This segment encompasses all depository and lending activities including demand, money market, savings, and time deposits, commercial and industrial, commercial mortgage, construction, residential mortgage, home equity and consumer loans, investment securities holdings, and fee based services such as cash management, digital banking, fiduciary and investment management.

In Hawaii’s banking market, Central Pacific Bank ranks as the 4th largest depository institution by deposit market share among FDIC insured financial institutions as of December 31 2025. It competes with commercial and savings banks, securities and brokerage firms, fintech companies, mortgage companies, insurance companies, finance companies, credit unions, and other non bank financial service providers, including online mortgage lenders. The banking industry in Hawaii is highly competitive and is influenced by the strength of the real estate market and the tourism industry, as well as by fiscal and regulatory policies of federal and state governments. Central Pacific Bank’s competitive advantages stem from its strong personal relationships with customers, specialized services tailored to local needs, flexibility, superior customer service, competitive pricing, robust digital banking capabilities, and locally focused promotional activities. The company’s relationship based Hawaii retail and small business deposits provide a stable low cost funding base, while strategic partnerships with customers in Japan and Korea and U. S. Mainland lending activities help diversify the loan portfolio and manage interest rate risk. Integration of wealth management services further enhances the bank’s ability to meet the comprehensive financial needs of its clients.

The company serves a diverse customer base consisting of individual consumers, small and middle sized businesses, professionals, and commercial entities throughout the State of Hawaii. Its retail and relationship focused approach targets Hawaii residents and businesses seeking traditional banking products and personalized service. Customers include homeowners looking for mortgage financing, entrepreneurs needing commercial loans, and individuals seeking deposit accounts, home equity lines of credit, automobile loans and other consumer credit products. The bank also serves customers in Japan and Korea through strategic partnerships that provide additional funding sources, although its primary market remains the Hawaiian islands.