Central Pacific Financial Corp (CPF)
NYSE:CPF
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Central Pacific Financial
(NYSE:CPF)
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Rating:76Outperform
Price Target:
$38.00
â–²(9.04% Upside)
Action:Reiterated
Date:05/05/26
The score is driven primarily by solid underlying financials (profitability, improving leverage, and decent ROE) and a constructive earnings outlook for NIM/NII with ongoing capital returns. Valuation adds support via a low P/E and solid dividend yield, while technicals are supportive but not strongly bullish given mixed momentum indicators.
Positive Factors
Conservative Balance Sheet
Very low leverage and rising ROE provide durable financial flexibility. A debt-to-equity near 0.04 plus mid-teens ROE allows the bank to absorb shocks, fund modest loan growth, repurchase shares and sustain dividends without needing immediate external capital in most stress scenarios.
Negative Factors
Moderating New Loan Yields
Persistent downward pressure on newly originated loan spreads reduces future NII upside. If competitive dynamics keep new-loan yields below prior levels, repricing of back-book loans and securities may not fully offset margin erosion, constraining sustainable net interest income growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage and rising ROE provide durable financial flexibility. A debt-to-equity near 0.04 plus mid-teens ROE allows the bank to absorb shocks, fund modest loan growth, repurchase shares and sustain dividends without needing immediate external capital in most stress scenarios.
Read all positive factors
Central Pacific Financial (CPF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$893.18M
Dividend Yield3.39%
Average Volume (3M)159.72K
Price to Earnings (P/E)10.1
Beta (1Y)0.89
Revenue Growth5.37%
EPS Growth40.00%
CountryUS
Employees697
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.02
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 Cap0.65
Enterprise Value/Revenue1.61
Enterprise Value/Gross Profit2.07
Enterprise Value/Ebitda5.25
Forecast
1Y Price Target
$37.00Price Target Upside6.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.25
Revenue Forecast (FY)$304.54M
Central Pacific Financial Business Overview & Revenue Model
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 ...
How the Company Makes Money
CPF primarily makes money through its banking subsidiary by (1) earning net interest income and (2) generating noninterest income. Net interest income is the largest driver for many banks and is earned from the spread between interest received on ...
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
Positive
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
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 | 362.75M | 362.32M | 340.48M | 319.63M | 277.04M | 259.86M |
| Gross Profit | 281.84M | 275.80M | 236.47M | 231.71M | 261.50M | 267.00M |
| EBITDA | 111.06M | 100.68M | 77.15M | 84.47M | 106.93M | 116.10M |
| Net Income | 80.44M | 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 | 893.71M | 910.62M | 924.80M | 1.17B | 783.84M | 1.96B |
| Total Debt | 101.62M | 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 | 593.88M | 592.58M | 538.38M | 503.81M | 452.87M | 558.22M |
Cash Flow | ||||||
| Free Cash Flow | 87.64M | 92.30M | 75.43M | 92.46M | 95.68M | 88.33M |
| Operating Cash Flow | 95.35M | 97.47M | 90.52M | 105.11M | 114.12M | 110.49M |
| Investing Cash Flow | 47.45M | 67.19M | 654.00K | 179.66M | -384.48M | -662.30M |
| Financing Cash Flow | -13.10M | -166.94M | -232.67M | 125.62M | 53.50M | 776.65M |
Central Pacific Financial Technical Analysis
Positive
34.85
Price Trends
33.04
Positive
32.67
Positive
31.03
Positive
Market Momentum
0.18
Positive
51.21
Neutral
35.93
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 34.85 is above the 20-day moving average (MA) of 34.17, above the 50-day MA of 33.04, and above the 200-day MA of 31.03, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 51.21 is Neutral, neither overbought nor oversold. The STOCH value of 35.93 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.09B | 7.07 | 10.95% | 0.38% | 9.48% | 37.91% | |
77 Outperform | $1.21B | 11.49 | 13.37% | 1.70% | 6.23% | 2.16% | |
76 Outperform | $1.10B | 13.27 | 7.58% | 3.91% | 8.28% | 37.82% | |
76 Outperform | $893.18M | 10.13 | 13.73% | 3.39% | 5.37% | 40.00% | |
72 Outperform | $1.00B | 19.79 | 10.87% | 3.21% | 4.14% | -9.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $918.80M | 8.07 | -20.89% | 3.50% | -71.38% | -406.48% |
* Financial Sector Average
CPF
Central Pacific Financial
34.01
7.60
28.76%
HFWA
Heritage Financial
26.55
3.47
15.01%
HBNC
Horizon Bancorp
17.92
2.83
18.76%
MCB
Metropolitan Bank Holding
88.33
22.11
33.38%
AMAL
Amalgamated Bank
40.05
9.51
31.13%
HBT
HBT Financial
27.61
3.82
16.05%
Central Pacific Financial Corporate Events
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.