Analogies for Central Pacific Financial (CPF):

• Essentially a regional version of JPMorgan Chase, serving the Hawaiian market.
• Like a Bank of America, but concentrated solely in Hawaii.

• Deposit Accounts: Offers various personal and business checking, savings, money market accounts, and time certificates of deposit.
• Loan Products: Provides a range of commercial, financial, agricultural, residential, construction, home equity, and consumer loans.
• Ancillary Banking Services: Includes debit cards, internet and mobile banking, cash management, foreign exchange, wire transfers, and safe deposit boxes.
• Wealth Management Services: Delivers non-deposit investment products, annuities, insurance, investment management, asset custody, and financial consultation.

Central Pacific Financial (CPF) operates as a commercial bank, serving a diverse customer base rather than a few major corporate clients. Its customer base is highly fragmented across both business and individual segments. Based on the company description, its major customer categories include:

• Businesses: Small and medium-sized companies, real estate investors and developers, and agricultural businesses operating within the state of Hawaii. The company provides commercial loans, financial and agricultural loans, commercial and residential mortgages, and construction loans to these entities.
• Business Professionals: Individuals identified as "business professionals" who utilize the bank's services for both their professional and potentially personal financial needs, including lending and wealth management services.
• Individuals and Homebuyers: General individuals and local homebuyers in Hawaii seeking a range of personal banking products and services, such as checking and savings accounts, money market accounts, time certificates of deposit, home equity and consumer loans, and wealth management products.

Arnold D. Martines Chairman, President and Chief Executive Officer

Arnold D. Martines was appointed President and Chief Executive Officer of Central Pacific Financial Corp. and Central Pacific Bank on January 1, 2023, and Chairman of both entities on June 10, 2024. His banking career began in 1995 at another Hawaii bank before he joined Central Pacific Bank in February 2004. He has held various executive leadership positions within the company, including Chief Banking Officer and President and Chief Operating Officer. Martines led the bank's Paycheck Protection Program during the pandemic, which originated 11,833 PPP loans worth $870 million, and also played a key role in the RISE 2020 renovation and rebranding program.

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 previously served as Group Senior Vice President and Director of Finance and Accounting from 2023 to 2025, and as Senior Vice President, Controller from 2013 to 2022. Ms. Matsumoto possesses over 22 years of experience in finance, accounting, and banking, with 16 of those years at Central Pacific Bank. She is a licensed certified public accountant in Hawaii and began her career as a Senior Audit Associate at KPMG.

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. Prior to this role, he was the Senior Executive Vice President and Chief Financial Officer from January 2022 to February 2025. Mr. Morimoto has over 32 years of experience in the banking industry, all of which have been with Central Pacific Bank, having started his career there in 1991. He has overseen the Technology, Operations, and Legal & Compliance Divisions and has extensive experience in asset/liability and investment portfolio management.

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.

Anna Hu Executive Vice President and Chief Credit Officer

Anna Hu is the Executive Vice President and Chief Credit Officer, responsible for the strategic direction and oversight of the bank's credit risk across its loan portfolios. She brings 30 years of professional financial experience, with over 13 years at Central Pacific Bank. Ms. Hu previously held the position of VP & Manager-Corporate Banking Relationship at Bank of Hawaii Corp. from 2009 to 2015.

The key risks to Central Pacific Financial (CPF) are:

1. Economic Conditions in Hawaii and Geographic Concentration: Central Pacific Financial's operations are heavily concentrated in the state of Hawaii, making its business results highly sensitive to the local economic environment. A significant portion of the company's loan portfolio, approximately 80%, is tied to real estate within Hawaii, making it vulnerable to downturns in the local property and tourism markets. Factors such as a decline in tourism, which directly impacts the state's economy, or adverse real estate market conditions, could significantly affect the bank's financial performance, loan quality, and deposit growth. For example, the 2023 Maui wildfires had a direct and significant impact on the state's economy, highlighting the risks of such localized events.
2. Credit Risk: As a commercial bank, Central Pacific Financial faces the inherent risk that borrowers may default on their loans. This risk is amplified by the bank's substantial exposure to real estate loans in Hawaii, which could be negatively impacted by declines in property values or a general economic contraction in the region. While the bank generally exhibits solid asset quality, past issues with a few large loans have been noted, and the adequacy of the allowance for credit losses is a continuous consideration. Furthermore, declining loan balances have been observed in recent years.
3. Interest Rate Risk: Central Pacific Financial is susceptible to fluctuations in interest rates, which directly impact its profitability. Changes in interest rates can affect the bank's net interest margin (NIM), which is a primary driver of its revenue. A high interest rate environment can decrease the market value of fixed-rate investment securities and loan portfolios, potentially affecting the bank's balance sheet and overall financial condition. Conversely, unfavorable interest rate movements could compress the bank's lending margins or increase its cost of funding deposits.

The clear emerging threat to Central Pacific Financial (CPF) is the proliferation and increasing adoption of digital-first financial technology companies (fintechs). These include neobanks, online lenders, and robo-advisors that offer banking, lending, and wealth management services primarily through digital platforms, often with lower operating costs, competitive rates, and more user-friendly interfaces than traditional branch-based banks like CPF. This digital disruption challenges CPF's core deposit, lending, and wealth management businesses by attracting customers who prioritize digital convenience and potentially lower fees, regardless of geographic location.

The addressable markets for Central Pacific Financial's main products and services primarily focus on the state of Hawaii.

Lending Products and Services (Hawaii)

• The total loans and leases held by commercial banks headquartered in Hawaii amounted to approximately $34.814 billion in 2024.
• For specific consumer lending categories in Hawaii:
  • Mortgage debt reached $73.1 billion in 2023.
  • Auto loan debt was $4.8 billion in 2023.
  • Credit card debt totaled $5.5 billion in 2023.
  • Student debt was approximately $4.7 billion in 2023.
• The market size for Real Estate Loans & Collateralized Debt in Hawaii is projected to be $553.5 million in 2026.
• New lending to small businesses (loans of $1 million or less) in Hawaii amounted to $1.1 billion in 2022.

Deposit Products and Services (Hawaii)

• The total deposits held by commercial banks headquartered in Hawaii were approximately $49.052 billion in 2024.

Wealth Management Products and Services

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Share Repurchases

• In January 2026, Central Pacific Financial's Board of Directors authorized a new share repurchase program of up to $55.0 million for 2026.
• The company repurchased 788,261 shares for $23.3 million during the full year 2025.
• For the full year 2024, Central Pacific Financial repurchased 49,960 shares at a total cost of $0.9 million.

Outbound Investments

• In 2021, the company committed $2.0 million to the JAM FINTOP Banktech Fund, L.P., an investment fund focused on developing and accelerating technology adoption at community banks.
• Central Pacific Financial completed an equity investment and is positioned to serve as a bank sponsor for Swell Financial, aligning with its Banking-as-a-Service (BaaS) strategy.
• Central Pacific Bank partnered with Korea Investment & Securities to expand its international reach to Korean customers.

Capital Expenditures

• Central Pacific Financial is strategically investing in technology, facilities, and personnel to enhance operational efficiency and drive revenue growth.
• Significant initiatives include implementing over 90 process automation improvements, enhancing branch systems, and upgrading to a new outsourced Data Center to boost resiliency and disaster recovery capabilities.
• The company realized annual savings of approximately $1 million by consolidating employees from its Operations Center and anticipates future annual savings of about $0.6 million from the sale and consolidation of real estate office space.