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Central Pacific Financial
(NYSE:CPF)
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Rating:76Outperform
Price Target:
$44.00
â–²(13.84% Upside)
Action:Reiterated
Date:07/24/26
CPF scores well primarily on financial performance, led by a significantly strengthened leverage profile and improving returns, with profitability and revenue growth remaining healthy. Technicals add support via a clear uptrend and positive momentum, while valuation is reasonable. Earnings call takeaways are broadly constructive (maintained NII/NIM outlook, strong capital returns), tempered by competitive margin pressure and some credit-risk monitoring points.
Positive Factors
Balance-sheet strength
CPF’s materially lower leverage and rising ROE reflect a conservatively structured balance sheet that reduces solvency risk and increases strategic optionality. This durable capital strength supports lending flexibility, capacity for credit stress absorption, and sustained shareholder returns over the medium term.
Negative Factors
Weak near-term loan growth
Lagging loan origination constrains the primary engine for net interest income expansion. If loan fundings remain muted amid competitive pricing, revenue scalability will be limited and the bank may need to lean on margin expansion or noninterest income to sustain earnings growth over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
CPF’s materially lower leverage and rising ROE reflect a conservatively structured balance sheet that reduces solvency risk and increases strategic optionality. This durable capital strength supports lending flexibility, capacity for credit stress absorption, and sustained shareholder returns over the medium term.
Read all positive factors
Central Pacific Financial (CPF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.03B
Dividend Yield2.87%
Average Volume (3M)159.72K
Price to Earnings (P/E)12.5
Beta (1Y)0.89
Revenue Growth5.05%
EPS Growth39.76%
CountryUS
Employees763
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.14
Shares Outstanding26,101,229
10 Day Avg. Volume241,833
30 Day Avg. Volume159,718
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)1.40
Price to Sales (P/S)2.30
P/FCF Ratio9.01
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$43.00Price Target Upside11.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.3
Revenue Forecast (FY)$305.36M
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:Jul 24, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented a generally positive operational and financial picture: solid earnings growth (19% YoY EPS), modest NIM expansion, strong capital ratios, active capital return via dividends and buybacks, and stable asset quality. Headwinds include flat loan growth in the quarter (timing-related), a rise in criticized loans concentrated in a few Hawaii credits, higher operating expenses due to deferred compensation and ongoing technology investments, and limited near-term NIM upside due to competitive pressure. Overall, the positives (strong earnings, capital strength, shareholder returns, and constructive outlook for H2 loan fundings) outweigh the moderate challenges.Positive Updates
Strong Quarterly Earnings and EPS Growth
Net income of $20.8 million, or $0.80 per diluted share, representing a 19% increase year-over-year on a diluted share basis.
Negative Updates
Flat Loan Growth in the Quarter
Total loans ended the quarter relatively flat at $5.3 billion; loan growth was impacted by several closings slipping into Q3 and expected CRE payoffs, with management forecasting low-single-digit loan growth for the full year.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Earnings and EPS Growth
Net income of $20.8 million, or $0.80 per diluted share, representing a 19% increase year-over-year on a diluted share basis.
Read all positive updates
Company Guidance
Management reiterated FY2026 guidance calling for full‑year net interest income growth of 4%–6% vs. prior year and a net interest margin that should remain relatively steady to edge slightly higher in H2 (NIM was 3.57%, +4 bps QoQ), with deposit costs expected to stay fairly stable (spot total deposit cost 90 bps) assuming the Fed is on hold and the balance sheet is neutral to slightly asset‑sensitive; they forecast low‑single‑digit loan and deposit growth for the year (loans $5.3B, deposits $6.7B, L/D ~79% vs. a 80%–85% target), other operating expenses to rise roughly 2.5%–3.5% (likely on the lower end), continued capital returns (Q2 buybacks ~322k shares for $11.3M with $33.2M remaining and a Q3 dividend of $0.30 vs. $0.29 in Q2), and maintain strong capital buffers (CET1 12.7%, total risk‑based capital 14.8%).Central Pacific Financial Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 314.85M | 362.32M | 340.48M | 319.63M | 277.04M | 259.86M |
| Gross Profit | 239.21M | 275.80M | 236.47M | 231.71M | 261.50M | 267.00M |
| EBITDA | 84.43M | 108.62M | 77.15M | 84.47M | 106.93M | 116.10M |
| Net Income | 83.00M | 77.48M | 53.41M | 58.67M | 73.93M | 79.89M |
Balance Sheet | ||||||
| Total Assets | 7.50B | 7.41B | 7.47B | 7.64B | 7.43B | 7.42B |
| Cash, Cash Equivalents and Short-Term Investments | 1.76B | 910.62M | 924.80M | 1.17B | 783.84M | 1.96B |
| Total Debt | 100.61M | 102.10M | 188.37M | 186.74M | 146.75M | 146.35M |
| Total Liabilities | 6.90B | 6.82B | 6.93B | 7.14B | 6.98B | 6.86B |
| Stockholders Equity | 596.33M | 592.58M | 538.38M | 503.81M | 452.87M | 558.22M |
Cash Flow | ||||||
| Free Cash Flow | 57.74M | 92.30M | 75.43M | 92.46M | 95.68M | 88.33M |
| Operating Cash Flow | 61.08M | 97.47M | 90.52M | 105.11M | 114.12M | 110.49M |
| Investing Cash Flow | -19.27M | 67.19M | 654.00K | 179.66M | -384.48M | -662.30M |
| Financing Cash Flow | 47.82M | -166.94M | -232.67M | 125.62M | 53.50M | 776.65M |
Central Pacific Financial Technical Analysis
Positive
38.65
Price Trends
37.05
Positive
34.90
Positive
32.80
Positive
Market Momentum
0.66
Positive
57.19
Neutral
41.32
Neutral
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 38.65 is below the 20-day moving average (MA) of 38.79, above the 50-day MA of 37.05, and above the 200-day MA of 32.80, indicating a bullish trend. The MACD of 0.66 indicates Positive momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 41.32 is Neutral, 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $1.48B | 13.03 | 14.12% | 1.25% | 9.56% | 12.20% | |
76 Outperform | $1.03B | 12.55 | 14.00% | 2.92% | 5.05% | 39.76% | |
75 Outperform | $1.23B | 14.02 | 7.69% | 3.22% | 17.16% | 47.28% | |
75 Outperform | $1.30B | 15.32 | 11.40% | 2.64% | 13.29% | -4.08% | |
69 Neutral | $1.15B | 11.56 | 10.22% | 0.82% | 10.54% | 28.24% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $1.05B | -6.47 | -20.76% | 3.19% | -72.31% | -366.87% |
* Financial Sector Average
CPF
Central Pacific Financial
39.40
13.69
53.27%
HFWA
Heritage Financial
29.73
8.10
37.44%
HBNC
Horizon Bancorp
20.45
5.80
39.61%
MCB
Metropolitan Bank Holding
92.48
24.06
35.16%
AMAL
Amalgamated Bank
49.38
21.02
74.11%
HBT
HBT Financial
35.84
11.96
50.09%
Central Pacific Financial Corporate Events
Stock BuybackDividendsFinancial Disclosures
Central Pacific Financial Reports Strong Second-Quarter 2026 Results
Positive
Jul 24, 2026
Central Pacific Financial reported second-quarter 2026 net income of $20.8 million, or $0.80 per diluted share, up slightly from the prior quarter and year-ago period. Key profitability metrics improved, with return on average assets at 1.12%, ret...
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...
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.