Here are 1-2 brief analogies for Central Pacific Financial (CPF):

• Central Pacific Financial is like a Hawaii-focused version of a regional bank like PNC or U.S. Bank.
• Imagine Central Pacific Financial as a smaller-scale M&T Bank or Comerica, with its operations concentrated solely in Hawaii.

• Deposit Services: Offers various accounts including checking, savings, money market, and certificates of deposit for individuals and businesses.
• Loan Products: Provides a range of financing options such as residential mortgages, commercial real estate loans, construction loans, consumer loans, and commercial and industrial loans.
• Treasury Management Services: Delivers solutions for businesses to optimize cash flow, manage payments, and mitigate financial risk.
• Wealth Management & Trust Services: Offers investment management, financial planning, and trust administration for individuals and institutions.

Central Pacific Financial (CPF) is a bank holding company, and its primary subsidiary, Central Pacific Bank, provides a wide range of financial services. As a bank, it serves a diverse customer base rather than having a few "major customers" in the traditional sense of a supplier-client relationship. The company primarily serves individuals and businesses within the state of Hawaii.

The three main categories of customers that Central Pacific Financial serves are:

1. Individuals/Consumers: This category includes individual residents who utilize personal banking services such as checking and savings accounts, credit cards, personal loans, mortgages, and wealth management services.
2. Small to Medium-sized Businesses: This segment comprises various businesses, from small enterprises to mid-sized companies, that require business banking services. These services include business checking and savings accounts, lines of credit, commercial loans, treasury management services, and merchant services.
3. Commercial and Corporate Clients: This category encompasses larger businesses and corporations, often seeking more complex financial solutions, including large-scale commercial real estate loans, corporate financing, specialized treasury management, and other comprehensive banking services tailored to corporate needs.

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Arnold Martines, Chairman, President and Chief Executive Officer

Arnold Martines was appointed President and Chief Executive Officer of Central Pacific Financial Corp. and Central Pacific Bank on January 1, 2023, and Chairman on June 10, 2024. He joined Central Pacific Bank in February 2004 and has held various executive leadership positions, including Chief Banking Officer and President and Chief Operating Officer. Mr. Martines began his banking career in 1995 at another Hawaii bank, gaining experience in small business, middle market, and corporate lending. During the COVID-19 pandemic, he led the bank's Paycheck Protection Program (PPP), which originated 11,833 PPP loans worth $870 million.

Dayna Matsumoto, Executive Vice President, Chief Financial Officer

Dayna Matsumoto was appointed Executive Vice President and Chief Financial Officer of Central Pacific Financial Corp. and Central Pacific Bank on March 1, 2025. She oversees the Controller, Treasury, and Financial Planning and Analysis divisions. Ms. Matsumoto has over 22 years of experience in finance and accounting. She started her career at KPMG as a Senior Audit Associate before joining Central Pacific Bank in 2006, where she has held several management positions, including Controller and Group Senior Vice President, Director of Finance and Accounting.

David Morimoto, Vice Chairman, Chief Operating Officer

David Morimoto has served as the Vice Chairman and Chief Operating Officer of Central Pacific Financial Corp. and Central Pacific Bank since March 1, 2025. As COO, he oversees Commercial Markets, Retail Markets, Wealth Markets, Real Estate, and Digital Strategy & Channel Management. Mr. Morimoto has over 30 years of banking experience, all with Central Pacific Bank, having started in 1991. He previously served as the Senior Executive Vice President and Chief Financial Officer from January 2022 to February 2025, and as Chief Financial Officer for nine years prior to that.

Anna Hu, Executive Vice President, Chief Credit Officer

Anna Hu is the Executive Vice President and Chief Credit Officer at Central Pacific Bank, a role in which she is responsible for the strategic direction and oversight of the bank's credit risk in loan portfolios. She has over 25 years of experience in the banking industry, with various leadership roles demonstrating expertise in credit risk management and commercial lending. Her career includes positions at Bank of Hawaii and Central Pacific Bank, where she has been a Senior Vice President and Interim Chief Credit Officer.

Ralph Mesick, Senior Executive Vice President, Chief Risk Officer

Ralph Mesick joined Central Pacific Bank in 2024 as the Senior Executive Vice President and Chief Risk Officer.

Key Risks:

1. Regulatory Compliance and Governmental Actions: Central Pacific Financial is subject to extensive and complex governmental regulations and regulatory actions. Non-compliance with statutes such as the Bank Secrecy Act and other anti-money laundering regulations, or failure to meet evolving regulatory capital standards, could significantly impair operations, restrict growth, and lead to enforcement actions.

2. Operational Risks, including Cybersecurity and Data Privacy: The company faces substantial operational risks, which include those associated with third-party vendors, information technology, information and cyber security, fraud, and business continuity. Cybersecurity and data privacy breaches represent a critical threat, potentially leading to financial losses, reputational damage, and legal liabilities. Central Pacific Financial actively monitors and assesses its information security risk posture through various programs and independent assessments.

3. Financial Risks (Interest Rate, Liquidity, and Credit): As a financial institution, CPF is exposed to significant financial risks. These include interest rate risk, which impacts net interest margin and funding costs; liquidity risk, related to the ability to meet financial obligations; and credit risk, associated with potential loan losses. The overall economic climate, prevailing interest rates, and investor confidence heavily influence the cost of capital and the bank's financial stability.

A clear emerging threat for Central Pacific Financial, and regional banks in general, is the accelerating digital disruption from **Fintech companies and large technology firms entering the financial services space.**

This threat manifests in several ways:

• Neobanks and Challenger Banks: Digital-only banks (e.g., Chime, Varo, Ally Bank) offer seamless mobile-first experiences, often with lower fees and more competitive interest rates on deposits. These entities directly compete for Central Pacific Financial's deposit base, particularly attracting younger, digitally native customers who prioritize convenience and cost over physical branch relationships. This erosion of core deposits necessitates higher funding costs or limits lending capacity for traditional banks.
• Big Tech in Financial Services: Companies like Apple (Apple Card, Apple Pay Later), Google (Google Pay), Amazon (lending to merchants), and Block (formerly Square) are leveraging their massive user bases, advanced data analytics, and user experience design expertise to offer a growing range of financial products and services. These offerings can disintermediate traditional banks from key customer touchpoints, such as payments, consumer credit, and small business lending, by integrating financial services directly into their existing platforms.

This trend is analogous to Netflix threatening Blockbuster by offering a fundamentally different, more convenient, and often more cost-effective service model, or Apple's iPhone redefining the mobile experience and leaving traditional players like BlackBerry struggling to adapt. For Central Pacific Financial, the combined force of these digital-first competitors challenges its traditional branch-based model, customer acquisition strategies, and necessitates significant and continuous investment in technology to remain competitive in a rapidly evolving financial landscape.

• Commercial Banking: The market size of the Commercial Banking industry in Hawaii is estimated to be $4.8 billion in 2025.
• Residential Mortgages: Null
• Deposits: Null
• SBA Loans: Null
• Wealth Management: Null

Expected Drivers of Future Revenue Growth for Central Pacific Financial (CPF)

Central Pacific Financial (CPF) is positioned for future revenue growth over the next two to three years, driven by several key factors highlighted in recent earnings reports and analyst commentary.

• Loan Growth: The company anticipates continued expansion in its loan portfolio. Management reported a healthy loan pipeline and expects net loan growth in 2025, with loans rising by $77 million in Q3 2025. The pace of loan portfolio decline has slowed, and increased demand suggests a positive trend for future loan origination.
• Net Interest Margin (NIM) Expansion and Improved Net Interest Income (NII): CPF has demonstrated an ability to improve its net interest margin and net interest income. In Q4 2024, the net interest margin improved to 3.17%, supported by a strategic investment portfolio repositioning that is estimated to increase annual net interest income by $2.7 million beginning in 2025. Furthermore, the net interest margin expanded to 3.49% in Q3 2025, primarily driven by higher average yields on loans, and is projected to increase by another 5 to 10 basis points in Q4 2025.
• Deposit Growth and Favorable Deposit Mix: Central Pacific Financial has experienced solid deposit growth, with total deposits reaching $6.6 billion in Q3 2025, reflecting successful business development efforts and deposit stabilization. A favorable shift in deposit mix, including increased demand deposits, also contributes to a more efficient funding structure.
• Strategic Partnerships and Technology Investments: The company is leveraging strategic initiatives to foster growth. A notable partnership with Kyoto Shinkin Bank aims to strengthen economic ties between Hawaii and Japan, which is expected to enhance business development opportunities for small and mid-sized customers. Additionally, CPF is investing in new technology to drive operational efficiencies, which can indirectly support revenue growth through improved service and cost management.
• Resilient Hawaii Economy and Housing Market Focus: The resilience of Hawaii's economy is a foundational driver for CPF's outlook. The bank also emphasizes its role as a "go-to lender" for housing solutions and an advocate for affordable housing in Hawaii, indicating a continued focus on leveraging growth opportunities within the local real estate and construction sectors.

Share Repurchases

• On January 28, 2025, the Board of Directors authorized a new share repurchase program of up to $30 million of its common stock.
• From April 1, 2025, to September 30, 2025, the company repurchased a total of 258,648 shares for $7.04 million under the January 2025 program.
• During the year ended December 31, 2024, Central Pacific Financial Corp. repurchased 49,960 shares of common stock at a total cost of $0.9 million.