About Central Pacific Financial

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a broad range of banking products and financial services. Through the bank and its subsidiaries, the company offers full-service commercial banking with bank branches and ATMs located throughout the state of Hawaii. The company’s administrative and main offices are located in Honolulu and the company has branches on the island of Oahu. The company operates branches on the island of Maui, branches on the island of Hawaii and branches on the island of Kauai. Central Pacific Bank is a full-service commercial bank offering traditional deposit and lending products and services to consumer and business customers, such as accepting demand, money market, savings and time deposits, originating loans, including commercial loans, construction loans, commercial real estate loans, residential mortgage loans, and consumer loans and fiduciary and investment management services. The bank's deposits are insured by the Federal Deposit Insurance Corporation (‘FDIC’) up to applicable limits. The bank is not a member of the Federal Reserve System. Services The company offers a full range of banking services and products to businesses, professionals and individuals. The company provides its customers with an array of loan products, including residential mortgage loans, commercial and consumer loans and lines of credit, commercial real estate loans and construction loans. Through the bank, the company concentrates its lending activities in five principal areas: Residential Mortgage Lending. Residential mortgage loans include fixed-rate and adjustable-rate loans primarily secured by single-family, owner-occupied residences in Hawaii and home equity lines of credit and loans. A portion of the company’s first residential mortgage loan originations are sold in the secondary market and a portion is put into the company’s loan portfolio. Commercial and Industrial Lending. Loans in this category primarily consist of term loans and lines of credit to small and middle-market businesses and professionals in the state of Hawaii. Commercial Mortgage Lending. Loans in this category consist of loans secured by commercial real estate, including but not limited to, structures and facilities to support activities designated as multi-family residential properties, industrial, warehouse, general office, retail, health care and religious dwellings. Construction Lending. Loans in this category consist of construction, land development, and other land loans for residential and commercial construction projects. Consumer Lending. Loans in this category are generally either unsecured or secured by personal assets, such as automobiles, and the average loan size is generally small. Beyond the lending function described above, the company also offers a full range of deposit products and services, including checking, savings and time deposits, cash management and digital banking services, trust services and retail brokerage services. Subsidiaries Central Pacific Bank is the wholly-owned principal subsidiary of Central Pacific Financial Corp. As of December 31, 2023, other wholly-owned subsidiaries included CPB Capital Trust IV and CPB Statutory Trust V. In January 2020, the bank acquired a 50% ownership interest in a mortgage loan origination and brokerage company, Oahu HomeLoans, LLC. In March 2022, Oahu HomeLoans, LLC was terminated. Central Pacific Bank also owns 50% of Gentry HomeLoans, LLC, Haseko HomeLoans, LLC and Island Pacific HomeLoans, LLC. The company sponsors the Central Pacific Foundation. The company’s products and services primarily consist of the following: Loans: The company’s loans consist of commercial and industrial, commercial mortgage, and construction loans to small and medium-sized companies, business professionals, and real estate investors and developers, as well as residential mortgage, home equity, and consumer loans to local homeowners and individuals. The company’s lending activities contribute to a key component of its revenues reported in interest income. Deposits: The company offers a full range of deposit products and services, including checking, savings and time deposits, cash management, and digital banking services. The company also maintains a broad branch and ATM network in the state of Hawaii. Additionally, the company offers wealth management products and services, such as non-deposit investment products, annuities, investment management, asset custody and general consultation and planning services. Loan Portfolio The company’s lending activities are focused on commercial and industrial loans, commercial mortgages, and construction loans to small and medium-sized companies, business professionals, and real estate investors and developers, as well as residential mortgages, home equity and consumer loans to local home-buyers and individuals. The company’s strategy for generating commercial loans has traditionally relied upon teams of commercial real estate and commercial banking officers who are responsible for client prospecting and business development. Commercial and Industrial - Small Business Administration Payroll Protection Program Paycheck Protection Program (‘PPP’) loans, which were originated in 2020 and early 2021, are loans to qualified small businesses under the PPP administered by the Small Business Administration (‘SBA’) under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (‘the CARES Act’). The PPP loans, regardless of any forgiven amount, is guaranteed by the SBA. Commercial and Industrial - Other Loans in this category primarily consist of term loans and lines of credit to small and middle-market businesses and professionals. The company’s approach to commercial lending involves teams of lending and cash management personnel who focus on relationship development including loans, deposits and other bank services to new and existing commercial clients. Real Estate—Construction Construction loans include both residential and commercial development projects. Real Estate—Mortgage Residential Residential mortgage loans include fixed-rate and adjustable-rate loans primarily secured by single-family owner-occupied primary residences in Hawaii. Home Equity Home equity lines of credit (‘HELOCs’), which typically carry floating or fixed interest rates, are underwritten according to policy and guidelines reviewed and approved by the Board of Directors. Commercial Mortgage Real estate mortgage loans secured by commercial properties represent a sizable portion of the company’s loan portfolio. Investment Securities As of December 31, 2023, the company’s securities were debt securities - states and political subdivisions; debt securities – corporate; debt securities - U.S. Treasury obligations and direct obligations of U.S. government agencies; residential mortgage-backed securities - U.S. GSEs; residential mortgage-backed securities - non-government sponsored entities (‘Non-GSEs’); commercial mortgage-backed securities - U.S. GSEs and agencies; and commercial mortgage-backed securities - Non-GSEs. Supervision and Regulation As the bank holding company for the bank, the company is regulated under the Bank Holding Company Act of 1956, as amended (BHC Act) and is subject to inspection, examination and supervision by the Board of Governors of the Federal Reserve System (FRB). It is also subject to Hawaii's Code of Financial Institutions and is subject to inspection, examination and supervision by the Hawaii Division of Financial Institutions (‘DFI’). The company is subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (the ‘Exchange Act’), as administered by the SEC. The company’s common stock is listed on the New York Stock Exchange (‘NYSE’) under the trading symbol ‘CPF,’ and the company is subject to the rules of the NYSE for companies listed there. The company is also subject to the accounting oversight and corporate governance requirements of the Sarbanes-Oxley Act of 2002. The bank, as a Hawaii state-chartered bank, is subject to primary supervision, periodic examination and regulation by the DFI and FDIC. The company is also subject to certain regulations promulgated by the Consumer Financial Protection Bureau (‘CFPB’), Federal Trade Commission (‘FTC’), and FRB. As a Hawaii state-chartered bank whose deposits are insured by the FDIC, the bank is subject to regulation, supervision, and regular examination by the DFI, and by the FDIC, as the bank’s primary Federal regulator. The bank must comply with numerous federal and state anti-money laundering and consumer protection and privacy statutes and implementing regulations, including the USA Patriot Act of 2001, GLBA, the bank Secrecy Act, the Foreign Account Tax Compliance Act, the CRA, the Fair Debt Collection Practices Act, the Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act, the Equal Credit Opportunity Act, the Truth in Lending Act, the Fair Housing Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the National Flood Insurance Act, and various federal and state privacy protection laws, including the Telephone Consumer Protection Act and the CAN-SPAM Act. The bank received an ‘Outstanding’ rating in the FDIC's 2022 Community Reinvestment Act Performance Evaluation that measures how financial institutions support their communities in the areas of lending, investment and service. History Central Pacific Financial Corp. was founded in 1954. The company was incorporated in 1982.