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1. Company Snapshot

1.a. Company Description

Central Pacific Financial Corp.operates as the holding company for Central Pacific Bank that provides commercial banking products and services to businesses, professionals, and individuals in the United States.It offers various deposit products and services, including personal and business checking and savings accounts, money market accounts, and time certificates of deposit.


The company's lending activities comprise commercial loans, financial and agricultural loans, commercial and residential mortgages, and construction loans to small and medium-sized companies, business professionals, and real estate investors and developers, as well as home equity, and consumer loans to local homebuyers and individuals.It also provides debit cards, internet and mobile banking, cash management, full-service ATMs, digital banking services, traveler's checks, safe deposit boxes, international banking services, night depository facilities, foreign exchange and wire transfers, trust services, and retail brokerage services.In addition, the company offers wealth management products and services, including non-deposit investment products, annuities, insurance, investment management, asset custody, and general consultation and planning services.


As of December 31, 2021, it operated 30 branches and 69 automated teller machines in the state of Hawaii.The company was incorporated in 1954 and is headquartered in Honolulu, Hawaii.

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1.b. Last Insights on CPF

Central Pacific Financial Corp.'s recent performance was negatively driven by a decline in net income, which fell 22% year-over-year to $11.3 million in Q4 2024. The company's fully diluted earnings per share (EPS) also declined to $0.42, down from $0.55 in the year-ago quarter. Despite beating earnings estimates, the decrease in EPS and net income may have contributed to the company's recent performance.

1.c. Company Highlights

2. Central Pacific Financial Corp. Delivers Strong Q4 2025 Results

Central Pacific Financial Corp. (CPF) reported a net income of $22.9 million or 85¢ per diluted share in Q4 2025, compared to $18.6 million or 69¢ per diluted share in Q3 2025. The company's net interest income rose 1.3% to $62.1 million, with a net interest margin expansion of seven basis points to 3.56%. The earnings per share (EPS) of $0.85 beat analyst estimates of $0.73. For the full 2025 year, net income was $77.5 million or $2.86 per diluted share, a 24% increase over 2024 non-GAAP net income. The return on average assets was 1.25%, and return on average equity was 15.41% in Q4 2025.

Publication Date: Mar -08

📋 Highlights
  • Q4 Net Income Growth: rose to $22.9M (85¢/share), up from $18.6M (69¢/share) in Q3 2025.
  • Full-Year 2025 Performance: reached $77.5M (24% increase) vs. 2024 non-GAAP $63.4M, with EPS of $2.86.
  • Return Metrics: showed ROA of 1.25% and ROE of 15.41% in Q4 2025, reflecting strong profitability.
  • Net Interest Income Growth: climbed 1.3% to $62.1M in Q4 2025, with NIM expanding 7 bps to 3.56%.
  • Capital Allocation: included $23.3M in share repurchases and a 3.6% dividend increase to 29¢ per share.

Guidance and Outlook

The company guided for a 4-6% increase in net interest income for 2026 and expects the net interest margin to expand, albeit at a slower pace than in 2025. They anticipate total other operating income to grow 1-2% in 2026 over 2025 normalized levels. Central Pacific is cautiously optimistic about low single-digit growth in loans and deposits for 2026, driven by initiatives such as disciplined calling efforts, a sales culture, and a focus on customer relationships.

Capital Management and Shareholder Returns

Central Pacific repurchased 788,000 shares at a total cost of $23.3 million and declared a first-quarter cash dividend of 29¢ per share, a 3.6% increase from the prior quarter. The board approved a new share repurchase authorization for up to $55 million in 2026. The company's CET1 ratio is targeted at 11-12%, and they plan to use capital for organic loan growth, dividends, and share repurchases.

Asset Quality and Credit Risk

The company's credit risk appetite remains focused on portfolio design, underwriting discipline, and risk-based pricing. Asset quality indicators were stable, with net charge-offs at $2.5 million or 18 basis points annualized on average loans. The company is focused on building the construction portfolio to reach critical mass, which will help offset paydowns with new construction draws.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 1.42, and a Dividend Yield of 3.52%, the stock appears to be reasonably valued. The company's return on equity (ROE) of 13.43% is also a positive indicator. Analysts estimate revenue growth at 4.4% for next year, which is in line with the company's guidance. Overall, Central Pacific Financial Corp.'s strong financial performance, stable asset quality, and attractive valuation make it an appealing investment opportunity in the financial sector.

3. NewsRoom

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American Century Companies Inc. Has $24.39 Million Position in CPB Inc. $CPF

Mar -09

Source: defenseworld.net

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CPB (NYSE:CPF) Stock Passes Above 200 Day Moving Average – Here’s Why

Feb -25

Source: defenseworld.net

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CPB (NYSE:CPF) Hits New 1-Year High on Earnings Beat

Jan -29

Source: defenseworld.net

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Central Pacific Financial Corp. (CPF) Q4 2025 Earnings Call Transcript

Jan -28

Source: seekingalpha.com

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Central Pacific Financial (CPF) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Jan -28

Source: zacks.com

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Central Pacific Financial (CPF) Q4 Earnings and Revenues Top Estimates

Jan -28

Source: zacks.com

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Central Pacific Financial Reports Fourth Quarter and Full Year 2025 Earnings

Jan -28

Source: businesswire.com

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Central Pacific Financial (CPF) Earnings Expected to Grow: Should You Buy?

Jan -21

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Banking and Related Activities

Expected Growth: 4.77%

Central Pacific Financial Corp.'s 4.77% growth in Banking and Related Activities is driven by increased loan demand, improved asset quality, and expanded deposit base. Additionally, strategic cost management, enhanced digital banking capabilities, and a favorable interest rate environment have contributed to the segment's growth.

7. Detailed Products

Consumer Banking

Provides personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Offers financial solutions for businesses, including cash management, commercial lending, and treasury management services.

Wealth Management

Provides investment and wealth management services, including brokerage, trust, and investment advisory services.

Mortgage Banking

Originates, sells, and services residential mortgage loans, as well as offers home equity loans and lines of credit.

Treasury Management

Provides cash management and treasury services, including account management, payment processing, and risk management solutions.

8. Central Pacific Financial Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Central Pacific Financial Corp. operates in a highly competitive market, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Central Pacific Financial Corp. has a large customer base, but the bargaining power of customers is high due to the availability of alternative financial services.

Bargaining Power Of Suppliers

Central Pacific Financial Corp. has a diversified supplier base, which reduces the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is moderate due to the regulatory barriers and capital requirements in the financial services industry.

Intensity Of Rivalry

The financial services industry is highly competitive, and Central Pacific Financial Corp. faces intense rivalry from established players and new entrants.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 24.02%
Debt Cost 6.85%
Equity Weight 75.98%
Equity Cost 9.52%
WACC 8.88%
Leverage 31.61%

11. Quality Control: Central Pacific Financial Corp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Value: 7.0

Growth: 5.6

Quality: 8.1

Yield: 7.0

Momentum: 4.0

Volatility: 8.0

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Growth: 5.1

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Yield: 7.0

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Central Pacific Financial

A-Score: 6.4/10

Value: 6.6

Growth: 4.9

Quality: 7.0

Yield: 7.0

Momentum: 5.0

Volatility: 7.7

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Value: 6.7

Growth: 6.4

Quality: 6.6

Yield: 6.0

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Volatility: 6.3

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A-Score: 5.5/10

Value: 6.5

Growth: 3.6

Quality: 6.2

Yield: 8.0

Momentum: 2.0

Volatility: 7.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.51$

Current Price

30.51$

Potential

-0.00%

Expected Cash-Flows