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Central Pacific Financial Corp (CPF)
NYSE:CPF
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Central Pacific Financial
(NYSE:CPF)
65Neutral
Central Pacific Financial (CPF) vs. S&P 500 (SPY)
Market Cap
$719.93M
Dividend Yield3.96%
Average Volume (3M)191.35K
Price to Earnings (P/E)13.5
Beta (1Y)1.17
Revenue Growth6.13%
EPS Growth-9.06%
CountryUS
Employees737
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)1.97
Shares Outstanding27,115,849
10 Day Avg. Volume176,247
30 Day Avg. Volume191,355
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.91
Price to Cash Flow (P/CF)6.80
P/FCF Ratio4.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$32.00Price Target Upside19.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Central Pacific Financial Business Overview & Revenue Model
Company DescriptionCentral Pacific Financial Corp. (CPF) is a bank holding company headquartered in Honolulu, Hawaii. It operates primarily through its wholly owned subsidiary, Central Pacific Bank, which provides a range of financial products and services. The company focuses on serving the financial needs of individuals, businesses, and institutions across Hawaii. Its core offerings include retail and commercial banking services, such as checking and savings accounts, loans, mortgages, and credit cards, as well as investment and wealth management services.
How the Company Makes MoneyCentral Pacific Financial makes money primarily through its subsidiary, Central Pacific Bank, by offering a wide range of banking and financial services. The company earns revenue from interest income derived from loans and mortgages issued to customers, including individuals and businesses. Additionally, CPF generates non-interest income through service charges, fees for banking services, and commissions from wealth management and investment services. The bank benefits from its strategic location and long-standing relationships in the Hawaiian market, which contribute to its stable customer base and steady revenue streams. Partnerships with local businesses and community organizations further enhance its market presence and financial performance.
Central Pacific Financial Financial Statement Overview
Summary
Central Pacific Financial shows a stable financial position with strong liquidity and minimal debt. However, its revenue growth has been inconsistent, and operational inefficiencies are indicated by decreasing margins. Cash flow management is strong, though there is volatility in free cash flow growth.Income Statement
Central Pacific Financial demonstrated a fluctuating revenue trend, with a recent decline from 2022 to 2023 but recovery in 2024. The gross profit margin remained strong, as expected in the banking industry, given the nature of its revenues. However, the net profit margin has seen variability, highlighting some potential inefficiencies or increased costs. EBIT and EBITDA margins exhibit a decreasing trend, reflecting potential operational inefficiencies or increased expenses.65
Positive
Balance Sheet
The balance sheet shows robust liquidity with a strong cash position. The equity ratio is healthy, indicating a solid financial foundation. The absence of debt in 2024 suggests an improved financial structure, reducing leverage risk. However, the prior years had noticeable debt levels, signaling past reliance on leverage.70
Positive
Cash Flow
Operating cash flow remains positive, indicating good cash generation from operations. However, free cash flow growth has been inconsistent, suggesting potential volatility in capital expenditures or cash flow management. The free cash flow to net income ratio is favorable, indicating effective conversion of net income to cash.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 306.10M | 240.95M | 263.48M | 254.11M | 238.47M | Gross Profit |
| 306.10M | 240.95M | 263.48M | 254.11M | 238.47M | EBIT |
| 38.72M | 102.18M | 115.86M | 105.65M | 49.03M | EBITDA |
| 0.00 | 0.00 | 47.92M | 43.06M | 45.20M | Net Income Common Stockholders |
| 53.41M | 58.67M | 73.93M | 79.89M | 37.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 815.43M | 763.39M | 783.84M | 1.96B | 1.29B | Total Assets |
| 7.47B | 7.64B | 7.43B | 7.42B | 6.59B | Total Debt |
| 188.37M | 186.74M | 146.75M | 146.35M | 174.58M | Net Debt |
| -192.57M | -335.70M | 34.70M | -182.56M | 70.51M | Total Liabilities |
| 6.93B | 7.14B | 6.98B | 146.35M | 6.05B | Stockholders Equity |
| 538.38M | 503.81M | 452.87M | 558.22M | 546.68M |
| Cash Flow | Free Cash Flow | |||
| 90.52M | 92.46M | 95.68M | 88.33M | 50.80M | Operating Cash Flow |
| 90.52M | 105.11M | 114.12M | 110.49M | 76.79M | Investing Cash Flow |
| 654.00K | 179.66M | -384.48M | -662.30M | -596.95M | Financing Cash Flow |
| -232.67M | 125.62M | 53.50M | 776.65M | 521.25M |
Central Pacific Financial Technical Analysis
Negative
26.74
Price Trends
28.35
Negative
29.01
Negative
26.49
Positive
Market Momentum
-0.50
Positive
31.81
Neutral
10.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPF, the sentiment is Negative. The current price of 26.74 is below the 20-day moving average (MA) of 28.41, below the 50-day MA of 28.35, and above the 200-day MA of 26.49, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 31.81 is Neutral, neither overbought nor oversold. The STOCH value of 10.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPF.
Central Pacific Financial Risk Analysis
Central Pacific Financial disclosed 47 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.52B | 9.48 | 10.44% | ― | -3.61% | -29.58% | |
71 Outperform | $3.12B | 14.19 | 9.02% | 4.09% | 3.53% | -2.18% | |
69 Neutral | $7.00B | 9.54 | 13.15% | 3.56% | 7.91% | 13.79% | |
68 Neutral | $2.68B | 19.81 | 9.73% | 4.16% | 4.63% | -16.29% | |
65 Neutral | $719.93M | 13.48 | 10.25% | 3.96% | 6.13% | -9.06% | |
64 Neutral | $13.79B | 10.52 | 9.20% | 4.24% | 17.25% | -7.60% | |
60 Neutral | $8.13B | 10.25 | 12.32% | 2.06% | 13.60% | 8.85% |
* Financial Sector Average
Performance Comparison
CPF
Central Pacific Financial
26.74
8.53
46.84%
BOH
Bank Of Hawaii
66.51
7.63
12.96%
ZION
Zions Bancorporation National Association
47.94
8.22
20.69%
WAL
Western Alliance
75.80
18.03
31.21%
CUBI
Customers Bancorp
49.81
-2.11
-4.06%
FHB
First Hawaiian
24.53
4.15
20.36%
Central Pacific Financial Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -5.51% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a generally positive outlook with strong net interest margin expansion, core deposit growth, and a resilient Hawaiian economy. However, challenges such as a significant investment securities loss, Maui's ongoing recovery issues, and a slight loan portfolio decline were highlighted.Highlights
Net Interest Margin Expansion
Net interest margin increased by 10 basis points to 3.17% in Q4, driven by reduced funding costs.
Core Deposit Growth
Core deposits grew by $74.2 million in Q4, with demand deposits increasing by $50.9 million.
Hawaii Economic Resilience
Hawaii's unemployment rate remained low at 3%, outperforming the national rate. Real estate values were strong, with the median home price in Oahu increasing by 5.8% year-over-year.
Investment Repositioning for Future Gains
Completed investment portfolio repositioning projected to increase annualized net interest income by $2.7 million.
Dividend Increase
Quarterly cash dividend increased by $0.01 or 3.8% from the prior quarter.
Lowlights
Investment Securities Loss
Recognized a pretax loss of $9.9 million from selling $106.5 million in securities.
Maui Recovery Challenges
Maui's visitor arrivals and housing needs remain challenges despite recovery efforts.
Loan Portfolio Decline
Loan portfolio decreased by $9.8 million or 0.2% sequentially in Q4.
Intangible Asset Impairment
Fourth quarter expenses included a $1.4 million impairment charge on intangible assets related to the 12 FinTech app developed in 2022.
Company Guidance
During the Central Pacific Financial Corp fourth-quarter 2024 conference call, the company expressed optimism for 2025, highlighting significant metrics and strategic moves. The net income for the quarter was $11.3 million, or $0.42 per diluted share, affected by an investment portfolio repositioning resulting in a pretax loss of $9.9 million. Excluding this, adjusted net income was $19 million, or $0.70 per share. The net interest margin expanded to 3.17%, driven by reduced funding costs, with a year-over-year increase of 10 basis points. Total deposits grew by $61 million, with core deposits increasing by $74.2 million. The company maintained strong asset quality, with nonperforming assets at 15 basis points of total assets and a robust capital position, including a total risk-based capital ratio of 15.4%. Looking ahead, Central Pacific Financial Corp anticipates loan growth in commercial and real estate segments and a favorable economic outlook in Hawaii. The Board declared a quarterly cash dividend of $0.27 per share, reflecting confidence in the company's earnings and capital position.Central Pacific Financial Corporate Events
Business Operations and StrategyFinancial Disclosures
Central Pacific Financial Highlights Resilience in 2025 Presentation
Positive
Mar 10, 2025
Central Pacific Financial Corp. presented a slide presentation in March 2025, highlighting forward-looking statements regarding its financial projections and strategic plans. The presentation emphasized the company’s resilience amid economic challenges, with a net income of $11.3 million in Q4 and $53.4 million for the full year 2024, supported by a strong real estate market, low unemployment, and robust construction activity in Hawaii.
Executive/Board ChangesBusiness Operations and Strategy
Central Pacific Financial Announces Key Executive Promotions
Positive
Feb 27, 2025
On February 25, 2025, Central Pacific Financial Corp. and Central Pacific Bank announced the promotion of David Morimoto to Vice Chairman and Chief Operating Officer, and Dayna Matsumoto to Executive Vice President and Chief Financial Officer, effective March 1, 2025. These appointments are part of the company’s strategy to align its executive team with strategic, financial, and business objectives, enhancing leadership depth and experience. Morimoto, with over 30 years at the bank, and Matsumoto, with 18 years, bring extensive experience to their new roles, which is expected to positively impact the company’s operations and strategic positioning.
Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Central Pacific Financial Announces 2024 Financial Results
Positive
Jan 29, 2025
Central Pacific Financial Corp. reported its financial results for the fourth quarter and full year 2024, noting a net income of $11.3 million for the quarter and $53.4 million for the year. The company completed an investment portfolio repositioning, incurring a pre-tax loss of $9.9 million in the fourth quarter, but expects improved net interest income. The board approved a dividend increase and a share repurchase program for 2025. The bank also became a member of the Federal Reserve System, reflecting its strategic positioning and operational strength.
Executive/Board ChangesBusiness Operations and Strategy
Central Pacific Financial Appoints New Board Director
Positive
Jan 29, 2025
On January 28, 2025, Dr. Diane S.L. Paloma was appointed to the Boards of Directors of Central Pacific Financial Corp. and Central Pacific Bank, increasing the board size to twelve directors. Dr. Paloma, currently the President and CEO of Hawaii Dental Service, brings extensive experience in healthcare and business, which is expected to provide valuable insights to the board. This appointment is part of the company’s strategy to strengthen its leadership and enhance its service to the Hawaiian community, as Dr. Paloma is well-respected in local business and non-profit sectors.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.