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Central Pacific Financial Corp (CPF)
NYSE:CPF
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Central Pacific Financial (CPF) AI Stock Analysis

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CPF

Central Pacific Financial

(NYSE:CPF)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
$44.00
â–²(26.26% Upside)
Action:Reiterated
Date:07/03/26
CPF scores well primarily on solid financial performance (notably improved leverage and healthy profitability) and a constructive earnings outlook with continued capital return. Technicals support the uptrend, but overbought signals temper the score, while valuation is reasonable with a supportive dividend yield.
Positive Factors
Conservative balance sheet and capital
Very low leverage and a healthy risk-based capital ratio provide durable loss-absorbing capacity and flexibility. This conservatism supports sustained lending through cycles, underpins regulatory headroom for dividends/buybacks, and reduces refinancing and solvency risk over the next 2–6 months.
Negative Factors
Moderation in new loan yields
Significant quarter-to-quarter erosion in new loan yields reflects competitive pressure and repricing headwinds. Persistently narrower new-loan spreads can compress future net interest income growth and NIM unless offset by higher-yield securities purchases or an improving loan mix.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet and capital
Very low leverage and a healthy risk-based capital ratio provide durable loss-absorbing capacity and flexibility. This conservatism supports sustained lending through cycles, underpins regulatory headroom for dividends/buybacks, and reduces refinancing and solvency risk over the next 2–6 months.
Read all positive factors

Central Pacific Financial (CPF) vs. SPDR S&P 500 ETF (SPY)

Central Pacific Financial Business Overview & Revenue Model

Company Description
Central Pacific Financial Corporation functions as the parent company of Central Pacific Bank, delivering a comprehensive suite of commercial banking services and financial solutions. This institution caters to businesses, professionals, and indiv...
How the Company Makes Money
CPF primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is earned from the spread between interest income generated on loans and other interest-earning assets (such as investment securities and int...

Central Pacific Financial Earnings Call Summary

Earnings Call Date:Apr 29, 2026
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call conveyed generally positive results driven by strong earnings, solid capital and liquidity positions, loan and deposit growth, and low credit stress. Offsetting items included moderation in new loan yields, some sequential decline in other operating income (BOLI-related), and modest expected expense growth. These negatives were described as manageable and mostly isolated, while management maintained constructive guidance for net interest income and capital deployment (dividends and buybacks).
Positive Updates
Solid Quarterly Earnings and EPS Growth
Net income of $20.7 million and diluted EPS of $0.78, representing a 20% increase in EPS year-over-year; return on average assets 1.12% and return on average equity 13.9%.
Negative Updates
Moderation in New Loan Yields
Weighted average new loan yield declined to 6.0% in Q1 from 6.8% in Q4 (down ~80 basis points), reflecting competitive pressure and moderating repricing.
Read all updates
Q1-2026 Updates
Negative
Solid Quarterly Earnings and EPS Growth
Net income of $20.7 million and diluted EPS of $0.78, representing a 20% increase in EPS year-over-year; return on average assets 1.12% and return on average equity 13.9%.
Read all positive updates
Company Guidance
Management guided Q2 NIM of 3.50%–3.55% and reiterated full‑year net interest income growth of 4%–6% versus the prior year, with full‑year loan and deposit growth maintained in the low single‑digit percentage range and NIM expected to remain in the mid‑3% area; deposit cost was ~0.90% (March spot) with modest CD repricing potential as about $480M (just under 50% of CDs) matures in Q2 at a 2.8% WAC versus blended new CD rates of ~2.5%, and management expects continued positive lift from back‑book loan repricing and securities (Q1 average loan yield 4.93%, Q1 new loan yield 6%, typical loan runoff ~$200–250M/quarter, securities cash flows ~$30M/quarter at ~2.8% with new purchase yields ~5%). They forecast modest full‑year other operating income growth, operating expense growth of roughly 2.5%–3.5% from 2025 normalized, a normalized effective tax rate near 22%–23%, and unchanged capital priorities — a $0.29/share quarterly dividend (Q1 paid $0.29; Q2 declared $0.29), continued share repurchases (Q1 repurchases ~321k shares for $10.5M; $44.5M remaining authorization) and $100M–$150M of excess liquidity available to deploy.

Central Pacific Financial Financial Statement Overview

Summary
Financials are solid overall: revenue is growing (about +6% in 2025 and +12% TTM) and profitability remains healthy (TTM net margin ~22%, EBIT margin ~29%). The balance sheet is a key strength with sharply improved leverage (debt-to-equity down to ~0.17 in 2025 and ~0.04 TTM) and rising ROE (~13%+). The main offsets are margin normalization versus 2021–2022 peaks and volatile/less-consistent free cash flow trends in the provided data.
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
63
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue362.75M362.32M340.48M319.63M277.04M259.86M
Gross Profit281.84M275.80M236.47M231.71M261.50M267.00M
EBITDA113.05M108.62M77.15M84.47M106.93M116.10M
Net Income80.44M77.48M53.41M58.67M73.93M79.89M
Balance Sheet
Total Assets7.50B7.41B7.47B7.64B7.43B7.42B
Cash, Cash Equivalents and Short-Term Investments893.71M910.62M924.80M1.17B783.84M1.96B
Total Debt101.62M102.10M188.37M186.74M146.75M146.35M
Total Liabilities6.90B6.82B6.93B7.14B6.98B6.86B
Stockholders Equity593.88M592.58M538.38M503.81M452.87M558.22M
Cash Flow
Free Cash Flow90.02M92.30M75.43M92.46M95.68M88.33M
Operating Cash Flow95.35M97.47M90.52M105.11M114.12M110.49M
Investing Cash Flow47.45M67.19M654.00K179.66M-384.48M-662.30M
Financing Cash Flow-13.10M-166.94M-232.67M125.62M53.50M776.65M

Central Pacific Financial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price34.85
Price Trends
50DMA
35.08
Positive
100DMA
33.68
Positive
200DMA
31.86
Positive
Market Momentum
MACD
1.00
Negative
RSI
67.50
Neutral
STOCH
89.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPF, the sentiment is Positive. The current price of 34.85 is below the 20-day moving average (MA) of 36.62, below the 50-day MA of 35.08, and above the 200-day MA of 31.86, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 89.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPF.

Central Pacific Financial Risk Analysis

Central Pacific Financial disclosed 96 risk factors in its most recent earnings report. Central Pacific Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Central Pacific Financial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$1.38B13.2313.37%1.70%6.23%2.16%
77
Outperform
$1.22B11.9710.95%0.38%9.48%37.91%
76
Outperform
$1.22B14.427.58%3.91%8.28%37.82%
75
Outperform
$999.16M12.6813.73%3.39%5.37%40.00%
70
Outperform
$1.17B14.7610.87%3.21%4.14%-9.04%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
56
Neutral
$1.02B-6.22-20.89%3.50%-71.38%-406.48%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CPF
Central Pacific Financial
38.28
9.68
33.83%
HFWA
Heritage Financial
29.70
5.08
20.62%
HBNC
Horizon Bancorp
19.78
3.99
25.24%
MCB
Metropolitan Bank Holding
98.53
24.32
32.77%
AMAL
Amalgamated Bank
46.04
13.30
40.62%
HBT
HBT Financial
32.18
6.48
25.22%

Central Pacific Financial Corporate Events

Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Central Pacific Updates Executive Change-in-Control Agreements
Positive
Jul 2, 2026
On June 30, 2026, Central Pacific Financial Corp. entered into new Change in Control Agreements with its executive officers, including CEO Arnold D. Martines, establishing an initial term through June 30, 2029, with automatic one-year renewals the...
Executive/Board ChangesShareholder Meetings
Central Pacific Financial Shareholders Back Board and Governance
Positive
May 4, 2026
On April 30, 2026, Central Pacific Financial shareholders re-elected ten directors to the company’s board, reaffirming the existing leadership structure at the bank holding company. Investors also backed, on an advisory basis, the compensati...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Central Pacific Financial Reports Solid First-Quarter 2026 Results
Positive
Apr 29, 2026
Central Pacific Financial reported first-quarter 2026 net income of $20.7 million, or $0.78 per diluted share, on April 29, 2026, with returns on average assets and equity of 1.12% and 13.90%, respectively, supported by a 3.53% net interest margin...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2026