Central Pacific Financial Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Central Pacific Financial Corp. has submitted its 2023 annual 10-K filing, detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

CENTRAL PACIFIC FINANCIAL CORP (CPF) filed a Annual Report (10-K) with the SEC on February 21, 2024. Central Pacific Financial Corp. filed its annual report for the fiscal year ending December 31, 2023. The report covers the period from January 1, 2023, to December 31, 2023. The company's principal business is commercial banking. The filing includes financial data for the fiscal years 2023, 2022, and 2021. The company is incorporated in Hawaii (HI).

Why It Matters

For investors and stakeholders tracking CENTRAL PACIFIC FINANCIAL CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Central Pacific Financial Corp.'s financial health, operational results, and strategic positioning for the past fiscal year, crucial for investors and stakeholders to assess performance and future outlook. As a publicly traded entity, the timely and accurate disclosure of financial information in this 10-K is mandated by the SEC, ensuring transparency and compliance with securities regulations.

Risk Assessment

Risk Level: medium — CENTRAL PACIFIC FINANCIAL CORP shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not inherently signal immediate positive or negative developments beyond routine reporting, thus presenting a medium level of risk associated with the inherent uncertainties of financial markets and business operations.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Central Pacific Financial Corp.'s performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-21 — Filing Date (Filed as of date)
• 144 — Public Document Count (Number of documents in the filing)
• 001-31567 — SEC File Number (SEC file number for the company)

Key Players & Entities

• CENTRAL PACIFIC FINANCIAL CORP (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240221 (date) — Filed as of date
• HI (location) — State of incorporation
• 6022 (industry_code) — Standard Industrial Classification
• HONOLULU (location) — Business address city
• 8085440500 (phone_number) — Business phone
• CPB INC (company) — Former company name

FAQ

Industry Context

Central Pacific Financial Corp. operates within the commercial banking industry, providing a range of financial services.

Regulatory Implications

The filing is made in accordance with the Securities Exchange Act of 1934, requiring public companies to submit annual reports to the SEC.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and asset growth.
2. Review the Management's Discussion and Analysis (MD&A) for insights into business strategy and outlook.
3. Examine the risk factors section for potential challenges and mitigation strategies.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-21: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the period, so a comparison to a previous filing is not available within this data.

Key Financial Figures

• $7.64 b — cember 31, 2023, we had total assets of $7.64 billion, total loans of $5.44 billion, to
• $5.44 b — assets of $7.64 billion, total loans of $5.44 billion, total deposits of $6.85 billion
• $6.85 billion — ans of $5.44 billion, total deposits of $6.85 billion and shareholders' equity of $503.8 mill
• $503.8 million — .85 billion and shareholders' equity of $503.8 million. When we refer to "the Company," "we,
• $0.6 million — loan origination size of approximately $0.6 million and marketable collateral. Changes in i
• $15 billion — g companies like us that have less than $15 billion in total consolidat

Filing Documents

• cpf-20231231.htm (10-K) — 4946KB
• exhibit21123123.htm (EX-21.1) — 9KB
• exhibit231123123.htm (EX-23.1) — 3KB
• exhibit311123123.htm (EX-31.1) — 12KB
• exhibit312123123.htm (EX-31.2) — 13KB
• exhibit321123123.htm (EX-32.1) — 8KB
• exhibit322123123.htm (EX-32.2) — 8KB
• exhibit971recoverypolicy.htm (EX-97.1) — 33KB
• cpf-20231231_g1.jpg (GRAPHIC) — 111KB
• 0000701347-24-000006.txt (&nbsp;) — 24957KB
• cpf-20231231.xsd (EX-101.SCH) — 110KB
• cpf-20231231_cal.xml (EX-101.CAL) — 225KB
• cpf-20231231_def.xml (EX-101.DEF) — 733KB
• cpf-20231231_lab.xml (EX-101.LAB) — 1546KB
• cpf-20231231_pre.xml (EX-101.PRE) — 1106KB
• cpf-20231231_htm.xml (XML) — 5491KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 34 Item 1C. Cybersecurity 34 Item 2

Properties

Properties 35 Item 3

Legal Proceedings

Legal Proceedings 35 Item 4 Mine Safety Disclosures 35 Part II. Item 5 Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 36 Item 6 [Reserved] 37 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 72 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 73 Item 9 Changes In and Disagreements with Accountants on Accounting and Financial Disclosure 141 Item 9A

Controls and Procedures

Controls and Procedures 141 Item 9B Other Information 141 Item 9C Disclosure Regarding Foreign Jurisdictions That Prevent Inspections 141 Part III. Item 10 Directors, Executive Officers and Corporate Governance 142 Item 11

Executive Compensation

Executive Compensation 142 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 142 Item 13 Certain Relationships and Related Transactions, and Director Independence 142 Item 14 Principal Accountant Fees and Services 142 Part IV. Item 15 Exhibits and Financial Statement Schedules 143 Exhibits 144 Item 16 Form 10-K Summary 147

Signatures

Signatures 148 2 PART I

Forward-Looking Statements and Factors that Could Affect Future Results

Forward-Looking Statements and Factors that Could Affect Future Results Certain statements contained in this annual report on Form 10-K that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), notwithstanding that such statements are not specifically identified. In addition, certain statements may be contained in our future filings with the U.S. Securities and Exchange Commission ("SEC"), in press releases and in oral and written statements made by us or with our approval that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include but are not limited to: (i) projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, the payment or nonpayment of dividends, capital position, credit losses, net interest margin or other financial items; (ii) statements of plans, objectives and expectations of Central Pacific Financial Corp. or its management or Board of Directors, including those relating to business plans, use of capital resources, products or services and regulatory developments and regulatory actions; (iii) statements of future economic performance; and (iv) statements of assumptions underlying or relating to any of the foregoing. Words such as "believe," "plan," "anticipate," "seek", "expect," "intend," "forecast," "hope," "target," "continue," "remain," "estimate," "will," "should," "may" and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. While we believe that our forward-looking statements and the assumptions underlying them are reasonably based, such statements and assumptions are by their nature subject to risks and uncertainties, and thus could later prove to be inaccurate or incorrect. Accordingly, actual resul

BUSINESS

ITEM 1. BUSINESS General Central Pacific Financial Corp., a Hawaii corporation and bank holding company registered under the Bank Holding Company Act of 1956, as amended (the "BHC Act"), was organized on February 1, 1982. Our principal business is to serve as a holding company for our bank subsidiary, Central Pacific Bank, which was incorporated in its present form in the State of Hawaii on March 16, 1982 in connection with the holding company reorganization. Its predecessor entity was incorporated in the State of Hawaii on January 15, 1954. We provide financial results based on a fiscal year ending December 31 as a single reportable segment. As of December 31, 2023, we had total assets of $7.64 billion, total loans of $5.44 billion, total deposits of $6.85 billion and shareholders' equity of $503.8 million. When we refer to "the Company," "we," "us" or "our," we mean Central Pacific Financial Corp. and its subsidiaries on a consolidated basis. When we refer to "Central Pacific Financial Corp.," "CPF" or to the holding company, we are referring to the parent company on a standalone basis. We refer to Central Pacific Bank herein as "our Bank" or "the Bank." Through our Bank and its subsidiaries, we offer full-service commercial banking with 27 bank branches and 58 ATMs located throughout the State of Hawaii. Our administrative and main offices are located in Honolulu and we have 19 branches on the island of Oahu. We operate four branches on the island of Maui, two branches on the island of Hawaii and two 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. Our Bank's de

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