Company Profile
- Central Pacific Financial Corp. (NYSE: CPF) (“Central Pacific” or “the company”) is the BHC for main subsidiary, Central Pacific Bank (“the bank”), which operates 27 branches across Hawaii.
- The HI banking market is highly concentrated, with the top 4 local banks controlling ~92% of deposits; CPF holds a 12% share (4th). Management characterizes the market as deposit-rich but asset-generation poor, resulting in slower loan growth compared to much of the U.S. As such, CPF has pursued alternative strategies, including strategic hires to support continued expansion in U.S. mainland lending, with a target of 20%–22% of loans over time (~15% today). Locally, they remain focused on market share gains in areas where it can differentiate from larger peers, such as residential mortgage, SBA, and digital banking. Beyond its evenly split retail and commercial deposit base in HI, CPF benefits from a unique funding advantage through Asian client relationships,…