Central Pacific Financial Corp. (CPF): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico do Pacífico Regional Banking, a Central Pacific Financial Corp. (CPF) navega em um complexo ecossistema de desafios e oportunidades interconectados. Das margens ensolaradas do Havaí ao mundo intrincado dos serviços financeiros, essa análise de pilões revela as forças multifacetadas que moldam a trajetória estratégica da CPF. Mergulhe em uma exploração abrangente que revela como fatores políticos, econômicos, sociológicos, tecnológicos, legais e ambientais se entrelaçam para definir a resiliência, a inovação e o potencial do crescimento do banco em um mercado financeiro em constante evolução.

Central Pacific Financial Corp. (CPF) - Análise de Pestle: Fatores Políticos

Ambiente regulatório pró-negócios do Havaí

O Legislativo do Estado do Havaí mantém um Taxa de imposto corporativo de 4,4% para instituições financeiras. A estrutura regulatória do estado apóia o crescimento do setor bancário por meio de incentivos direcionados.

Métrica regulatória	Status atual
Taxa de imposto corporativo estadual	4.4%
Custo de conformidade regulatória do setor bancário	US $ 1,2 milhão anualmente para CPF
Índice de complexidade da regulação bancária do estado	Moderado (6.3/10)

Impacto da política do governo local

O governo local do Havaí mantém Políticas estáveis ​​de desenvolvimento bancário.

• O Conselho de Regulamentação Bancária do Havaí apoia instituições financeiras regionais
• A política local incentiva a expansão bancária da comunidade
• Processos de aprovação simplificados para desenvolvimentos de infraestrutura bancária

Regulamentos bancários federais

CPF deve cumprir com Regulamentos do Federal Reserve, incluindo:

Requisito regulatório	Custo de conformidade
Requisitos de capital Basileia III	US $ 18,5 milhões para investimento anual
Conformidade de lavagem de dinheiro	Despesas anuais de US $ 3,2 milhões
Conformidade com testes de estresse	Custo anual de US $ 2,7 milhões

Implicações da política monetária federal

A atual postura monetária da Federal Reserve afeta diretamente o planejamento estratégico da CPF.

• Taxa atual de fundos federais: 5,25% - 5,50%
• Custos de conformidade regulatória projetados: US $ 24,4 milhões em 2024
• Mudanças de política potenciais podem exigir realinhamento estratégico

Central Pacific Financial Corp. (CPF) - Análise de pilão: Fatores econômicos

A economia orientada pelo turismo do Havaí influencia a demanda de serviços financeiros

A receita turística do Havaí atingiu US $ 17,75 bilhões em 2022, impactando diretamente a demanda de serviços financeiros. O setor de turismo contribuiu com 21,2% para o PIB total do Havaí em 2023. A Central Pacific Financial Corp. experimenta correlação direta com os indicadores econômicos do turismo.

Indicador econômico	2022 Valor	2023 Projeção
Receita de turismo	US $ 17,75 bilhões	US $ 18,3 bilhões
Contribuição do PIB do turismo	20.5%	21.2%
Gastos com visitantes	US $ 16,2 bilhões	US $ 16,8 bilhões

Baixa taxa de juros

As taxas de juros do Federal Reserve permaneceram em 5,25 a 5,50% no quarto trimestre 2023, criando um cenário de lucratividade desafiador. A margem de juros líquidos da CPF ficou em 3,12% no terceiro trimestre de 2023, refletindo a pressão econômica.

Métrica financeira	2022 Valor	2023 valor
Margem de juros líquidos	2.85%	3.12%
Taxa de fundos federais	4.25-4.50%	5.25-5.50%

A recuperação econômica regional pós-pandêmica apóia oportunidades de empréstimos

A recuperação econômica do Havaí demonstrou crescimento de 4,2% no PIB em 2023. Os empréstimos comerciais aumentaram 6,5% para a Central Pacific Financial Corp. durante o mesmo período.

Indicador de recuperação	2022 Valor	2023 valor
Crescimento do PIB do Havaí	3.7%	4.2%
Crescimento de empréstimos comerciais	5.3%	6.5%

O crescimento econômico moderado na região do Pacífico afeta o desempenho financeiro

O crescimento econômico da Região do Pacífico se projetou em 3,8% em 2024. A Central Pacific Financial Corp. reportou US $ 512,3 milhões no total de ativos no terceiro trimestre de 2023, refletindo a dinâmica econômica regional.

Métrica econômica	2023 valor	2024 Projeção
Crescimento da região do Pacífico	3.5%	3.8%
CPF Total de ativos	US $ 498,7 milhões	US $ 512,3 milhões

Central Pacific Financial Corp. (CPF) - Análise de Pestle: Fatores sociais

A população envelhecida no Havaí aumenta as necessidades de serviço financeiro de aposentadoria

De acordo com o Bureau do Censo dos EUA, a população de mais de 65 anos do Havaí foi de 17,3% em 2020, projetada para atingir 21,6% até 2030. Idade média no Havaí: 39,7 anos.

Faixa etária	Percentagem	Necessidades financeiras de aposentadoria
65-74 anos	9.2%	Alta demanda de conta de aposentadoria
75 anos ou mais	8.1%	Serviços financeiros especializados necessários

Preferências bancárias digitais crescentes entre dados demográficos mais jovens

O Pew Research Center relata 79% dos americanos de 18 a 49 anos usam bancos móveis. Taxa de adoção bancária digital do Havaí: 72%.

Faixa etária	Uso bancário móvel
18-29 anos	85%
30-49 anos	76%

A base de clientes multiculturais requer diversas ofertas de produtos financeiros

Composição demográfica do Havaí: 37,6% White, 37,1% asiático, 10,1% ilhas havaianas nativas/Pacífico, 10,7% de raça mista.

Grupo étnico	Percentagem	Necessidades financeiras únicas
Asiático	37.1%	Produtos focados em investimento
Nativo havaiano	10.1%	Empréstimos específicos da comunidade

Aumentar o foco do consumidor em práticas bancárias sustentáveis ​​e éticas

Os ativos de investimento da ESG nos EUA atingiram US $ 17,1 trilhões em 2020, representando 33% do total de ativos dos EUA sob gestão profissional.

Métrica bancária sustentável	Percentagem
Consumidores preferindo bancos éticos	73%
Millennials investindo em ESG	85%

Central Pacific Financial Corp. (CPF) - Análise de Pestle: Fatores tecnológicos

Investimento significativo em plataformas bancárias digitais e aplicativos móveis

No quarto trimestre 2023, a Central Pacific Financial Corp. investiu US $ 3,2 milhões em atualizações de tecnologia bancária digital. Os downloads de aplicativos bancários móveis aumentaram 27% ano a ano, atingindo 145.000 usuários ativos. A plataforma digital processou 3,8 milhões de transações on -line em 2023, representando um aumento de 35% em relação ao ano anterior.

Métricas de investimento digital	2023 dados
Investimento de tecnologia digital total	US $ 3,2 milhões
Usuários ativos de aplicativos móveis	145,000
Transações on -line processadas	3,8 milhões

Aprimoramento da segurança cibernética crítica para proteger os dados financeiros do cliente

A CPF alocou US $ 1,7 milhão à infraestrutura de segurança cibernética em 2023. O banco implementou sistemas avançados de detecção de ameaças com uma taxa de eficácia de 99,8%. Zero grandes violações de dados foram relatadas durante o ano fiscal.

Métricas de segurança cibernética	2023 desempenho
Investimento de segurança cibernética	US $ 1,7 milhão
Eficácia da detecção de ameaças	99.8%
Violações de dados	0

Inteligência artificial e aprendizado de máquina Melhorando a avaliação de risco

Modelos de avaliação de risco orientados pela IA Erros de previsão de inadimplência de crédito reduzidos em 42%. Os algoritmos de aprendizado de máquina analisaram 1,2 milhão de pontos de dados do cliente para aprimorar a precisão da pontuação do crédito. O banco relatou uma melhoria de 15% na eficiência da aprovação de empréstimos usando tecnologias de IA.

Métricas de avaliação de risco de IA	2023 desempenho
Redução de erros de previsão	42%
Pontos de dados analisados	1,2 milhão
Melhoria da eficiência de aprovação de empréstimo	15%

Inovações em blockchain e fintech, transformando serviços bancários tradicionais

A CPF investiu US $ 2,5 milhões em pesquisa e desenvolvimento de blockchain e fintech. O banco iniciou programas piloto para verificação de transações baseadas em blockchain com três parceiros de tecnologia. Tempo de processamento de transação transfronteiriço foi reduzido em 67% usando tecnologias de blockchain.

Métricas de inovação em blockchain	2023 dados
Fintech R&D Investment	US $ 2,5 milhões
Blockchain Pilot Partners	3
Redução de tempo de transação transfronteiriça	67%

Central Pacific Financial Corp. (CPF) - Análise de Pestle: Fatores Legais

Conformidade estrita com os regulamentos bancários federais

O CPF mantém a conformidade com os seguintes regulamentos bancários federais:

Regulamento	Detalhes da conformidade	Custo anual de conformidade
Lei de Sigilo Banco (BSA)	100% relatando adesão	US $ 1,2 milhão
Lei Dodd-Frank	Implementação completa	US $ 2,4 milhões
Requisitos de capital Basileia III	Tier 1 Capital Ratio: 12,5%	US $ 3,7 milhões

Adaptação contínua às leis de proteção ao consumidor

Métricas de conformidade com proteção ao consumidor -chave:

• Taxa de Resolução de Reclamação de Reclamação de Proteção Financeira do Consumidor (CFPB): 98,6%
• Orçamento legal anual para conformidade de proteção ao consumidor: US $ 1,5 milhão
• Número de funcionários jurídicos dedicados à proteção do consumidor: 7 advogados em tempo integral

Requisitos de relatório aprimorados

Requisito de relatório	Freqüência	Custo de conformidade
Relatórios de atividades suspeitas (SARS)	Trimestral	$650,000
Relatórios de transação em moeda	Mensal	$450,000
Relatórios anuais de teste de estresse	Anualmente	US $ 1,1 milhão

Possíveis desafios legais

Litígios e métricas de risco legal:

• Casos legais pendentes totais: 3
• Orçamento anual de defesa legal: US $ 2,8 milhões
• Custo médio de liquidação por caso: US $ 425.000
• Retentor de consultoria jurídica externa: US $ 1,2 milhão anualmente

Central Pacific Financial Corp. (CPF) - Análise de Pestle: Fatores Ambientais

Compromisso com práticas bancárias sustentáveis ​​na região do Pacífico

A Central Pacific Financial Corp. registrou US $ 42,3 milhões investidos em iniciativas bancárias sustentáveis ​​em 2023. A carteira de sustentabilidade ambiental do banco aumentou 17,6% em comparação com o ano anterior.

Métrica de sustentabilidade	2023 valor	Mudança de ano a ano
Portfólio de investimentos verdes	US $ 215,7 milhões	+22.4%
Investimentos de redução de carbono	US $ 63,5 milhões	+15.9%
Custos operacionais bancários sustentáveis	US $ 18,2 milhões	+11.3%

Iniciativas de financiamento verde apoiando projetos de energia renovável

Portfólio de empréstimo de energia renovável: US $ 387,6 ​​milhões alocados para projetos de energia verde no Havaí e na região do Pacífico para 2023.

Tipo de energia renovável	Investimento total	Número de projetos
Energia solar	US $ 176,3 milhões	42 projetos
Energia eólica	US $ 89,7 milhões	15 projetos
Energia geotérmica	US $ 121,6 milhões	8 projetos

Riscos de mudanças climáticas que afetam estratégias de empréstimos e investimentos

Orçamento de avaliação de risco climático: US $ 7,4 milhões em 2023. Impacto financeiro potencial dos riscos climáticos estimados em US $ 129,5 milhões.

• Cobertura de avaliação de risco de aumento do nível do mar: 92% da carteira de empréstimos costeiros
• Investimento de adaptação climática: US $ 22,6 milhões
• Redução de empréstimos de zona climática de alto risco: 14,3%

Relatórios de sustentabilidade corporativa e responsabilidade ambiental

Despesas de conformidade ambiental: US $ 5,9 milhões em 2023. A cobertura do relatório de sustentabilidade expandiu -se para 98% das operações corporativas.

Métrica de relatório de sustentabilidade	2023 desempenho
Redução de emissões de gases de efeito estufa	23,7% de redução
Taxa de reciclagem de resíduos	76.4%
Uso de energia renovável	41,2% do consumo total de energia

Central Pacific Financial Corp. (CPF) - PESTLE Analysis: Social factors

Deep community ties and a focus on small businesses are a core pillar of the bank's strategy.

You're looking at a bank whose social contract with Hawaii is defintely a strategic asset. Central Pacific Financial Corp. (CPF) was founded in 1954 by Japanese-American World War II veterans specifically to serve families and small businesses that were historically excluded from mainstream financial services. This legacy translates into a strong, community-centric focus today, which drives customer loyalty and brand strength.

The bank's commitment to the local market is a key differentiator, and it's why they were named the Best Bank in Hawaii by Forbes Magazine in 2025 for the fourth consecutive year. This reputation is backed by tangible community investment, which led to an Outstanding rating in their most recent Community Reinvestment Act (CRA) evaluation. That's a clear signal to investors that the bank's social mission is deeply integrated with its business model.

The bank is a market leader in residential mortgage and Small Business Administration (SBA) loan originations.

Central Pacific Bank is a leading force in supporting homeownership and small businesses across Hawaii. This focus isn't just marketing; it's a measurable market position, especially in federal lending programs. We are talking about being a top-tier lender in a highly competitive regional market.

For the 2024 fiscal year, Central Pacific Bank was recognized as the top SBA lender in Hawaii, approving more SBA loans than all other Hawaii banks combined in both number and dollar amount. This includes the prestigious SBA Lender of the Year, Category II award for Hawaii, which the bank has won 16 times since 2004.

Here's the quick math on their recent SBA performance, which shows a significant commitment to small business growth:

SBA Loan Category (2024 Fiscal Year)	Number of Approvals	Total Dollar Amount
SBA 7(a) Loans	113	More than $9.5 million
SBA 504 Loans	3 (Led Hawaii and Guam)	Included in total SBA loan value
Total SBA 7(a) and 504 Loans	116+	Approximately $11.9 million

Plus, their digital platform, Business Express, is the first and only online lending portal offered by a local bank in Hawaii, providing approval in as little as three business days for loans up to $50,000 with minimal paperwork. That's a huge tactical advantage for busy entrepreneurs.

Employee support includes a hybrid work environment to promote better work-life balance.

A strong social factor for any service-based company is its internal culture and employee support. Central Pacific Bank has proactively adopted a hybrid work environment. This supports better work-life balance for employees, which is crucial for retention in a high-cost-of-living state like Hawaii.

The bank is also a leader in workforce diversity, which mirrors the communities it serves. At the end of 2024, the workforce was over 92% ethnically diverse, with 64% female and 55% of all management staff being female. This internal diversity strengthens their ability to understand and serve a broad customer base.

• Workforce is over 92% ethnically diverse (end of 2024).
• 64% of employees are female.
• 55% of management staff are female.
• Hybrid work promotes healthy work-life balance.

Targeting products to various income brackets helps address Hawaii's wealth distribution challenges.

Hawaii faces significant wealth distribution challenges, particularly around housing affordability. Central Pacific Bank addresses this directly by offering products and services designed for low- and moderate-income (LMI) individuals and very small businesses, which is a key component of their outstanding CRA performance.

They make extensive use of innovative and flexible lending practices to serve these credit needs. For instance, they offer no-cost retail checking accounts to help previously unbanked or underbanked customers gain access to the financial system. This is a clear, actionable step to improve financial inclusion.

For small businesses, their Business Exceptional Checking Account offers significant value, including 325 free deposits or checks paid per period and cash bonuses. During promotions in the second half of 2025, a business could receive a bonus of up to $1,200 for depositing $75,000 in new funds, a direct incentive to support local business cash flow. They also run the 'WE by Rising Tide' program to support female entrepreneurs, which helps close the gender gap in business financing.

Central Pacific Financial Corp. (CPF) - PESTLE Analysis: Technological factors

Expansion of digital channels (mobile apps, enhanced ATMs) improves customer access and efficiency.

You're seeing Central Pacific Financial Corp. (CPF) make smart, targeted moves to digitize, which is defintely a necessity when competing with larger national banks. It's not just about having an app; it's about making the digital experience so good that customers prefer it, which drives down the bank's cost-to-serve. The bank's improved efficiency ratio tells the story here: it dropped from 61.16% in the first quarter of 2025 to 60.36% by the second quarter of 2025. That improvement is a direct result of operational effectiveness, much of which is powered by technology.

While the physical footprint remains important in a local market like Hawaii-CPF still operates 27 branches and 55 ATMs as of September 30, 2025-the focus is clearly on digital expansion to enhance customer convenience and access. You need to offer a seamless experience from mobile to branch, or you lose the customer entirely.

• Drive down operational costs.
• Improve the customer experience.
• Maintain relevance against mainland competitors.

Launched 'Business Express,' the state's only online loan portal offered by a local bank.

This is a game-changer for the local small business market. Central Pacific Bank launched 'Business Express' on February 18, 2025, making it the first and only local bank in Hawaii to offer a comprehensive online small business lending solution. This platform directly addresses the need for speed and simplicity for busy entrepreneurs who can't afford to spend days on paperwork.

The value proposition is clear and quantifiable. Here's the quick math on the speed advantage: for loans up to $50,000, small business owners can receive approval in as little as three business days with minimal or no financials required. The platform supports a wide range of financing, from lines of credit to Small Business Administration (SBA) products, with loan amounts ranging from $10,000 to $500,000. This move positions CPF as a technology-forward leader in local small business support.

Cybersecurity spending is rising due to new regulations, a necessary cost to manage risk.

The cost of doing business in a digital world is cybersecurity, and that expense is non-negotiable, especially with increasing regulatory pressure. CPF has a formal Information Security Program, including a Threat Intelligence Program and annual penetration tests, to maintain a strong security posture. This isn't a profit center, but a critical expense to protect the bank's $7.42 billion in assets and its customer data as of September 30, 2025.

While a specific 2025 cybersecurity budget isn't public, we can see the upward pressure on costs. The bank's computer software expense alone increased by $0.6 million quarter-over-quarter in the second quarter of 2025, which is a clear indicator of rising technology-related investment. This is a necessary 'tax' on digital operations to mitigate the risk of data breaches, which can be far more costly than the preventative spending. For context on the risk, consumer card-related fraud losses were $681 thousand in the 2024 calendar year.

Continued investment in digital banking is defintely needed to compete with national players.

The need for sustained investment is evident in the bank's financial guidance. Management is focused on driving operational efficiencies by investing in new technology, and this is reflected in the projected rise in non-interest expenses. The guidance for total other operating expenses-which includes technology, compliance, and other non-interest costs-is projected to be between $45 million to $46 million for the fourth quarter of 2025. This is up from $42.1 million in Q1 2025 and $43.9 million in Q2 2025, illustrating a clear, quarter-by-quarter escalation in the cost of maintaining a competitive digital edge.

To keep pace with the huge technology budgets of national banks, CPF has to be highly selective and strategic with its spending. The success of targeted platforms like 'Business Express' shows they can compete effectively by focusing on local market needs and leveraging technology for a superior customer experience. The alternative is becoming a slow-moving target.

Metric (2025 Fiscal Year Data)	Q1 2025 Value	Q2 2025 Value	Q4 2025 Guidance/Status
Total Other Operating Expense	$42.1 million	$43.9 million	$45 million to $46 million
Efficiency Ratio (Improved Efficiency)	61.16%	60.36%	Trend: Improving
Computer Software Expense (QoQ Increase)	N/A	Increased by $0.6 million from Q1 2025	Rising Cost Driver
'Business Express' Max Loan (No Financials)	N/A (Launched Feb 2025)	N/A	Up to $50,000

Central Pacific Financial Corp. (CPF) - PESTLE Analysis: Legal factors

Strong capital position helps navigate regulatory requirements, with a Common Equity Tier 1 ratio of 12.6% in Q3 2025

In the highly regulated banking sector, a strong capital base is your first line of defense against both economic shocks and the stringent demands of federal oversight. Central Pacific Financial Corp. (CPF) maintains a capital position that significantly exceeds the minimums required for a 'well-capitalized' institution, which is defintely a strategic advantage. As of September 30, 2025, the company reported a Common Equity Tier 1 (CET1) ratio of 12.6%.

This ratio, which measures core capital against risk-weighted assets, is well above the company's own target range of 11% to 12% [cite: 6 from first search], providing a substantial buffer. A higher CET1 ratio means the bank can absorb unexpected losses without jeopardizing its solvency, which helps it navigate new or evolving regulatory requirements like the potential for Basel III endgame rules without needing to scramble for capital. This strength also supports capital deployment actions, such as the share repurchases of 78,255 shares for $2.3 million in Q3 2025.

Here's the quick math on regulatory strength as of Q3 2025:

Regulatory Capital Ratio	Value (as of Sep 30, 2025)	Regulatory Status
Common Equity Tier 1 (CET1) Ratio	12.6%	Exceeds Well-Capitalized Threshold
Tier 1 Risk-Based Capital Ratio	13.5%	Exceeds Well-Capitalized Threshold
Total Risk-Based Capital Ratio	15.7%	Exceeds Well-Capitalized Threshold
Leverage Ratio	9.7%	Exceeds Well-Capitalized Threshold

The Board provides formal oversight of the Environmental, Social, and Governance (ESG) program

ESG is no longer a soft-focus initiative; it's a core component of risk management and legal compliance, especially for publicly traded institutions. Central Pacific Financial Corp. has formalized its governance structure to reflect this reality. The full Board of Directors holds the ultimate responsibility for the oversight of the entire ESG program [cite: 2 from first search].

More specifically, the Board Risk Committee has been assigned formal oversight of the ESG program, its initiatives, and all related reporting [cite: 2 from first search]. This ensures ESG risks-from climate-related lending exposure to data privacy-are treated with the same rigor as traditional financial and operational risks. ESG-related initiatives have been integrated directly into the Company's 2025 Strategic Plan and Business Plan [cite: 2 from first search].

This structure is critical because it ties long-term sustainability and social responsibility directly to shareholder value and legal due diligence. The Board, which is comprised of 12 directors with 75% being independent as of early 2025, is positioned to provide objective oversight [cite: 2 from first search].

Operations are subject to intense federal and state regulatory scrutiny (e.g., CRA, HMDA)

As a regulated financial institution, Central Pacific Financial Corp. operates under constant, intense scrutiny from federal and state bodies, including the Federal Deposit Insurance Corporation (FDIC). Compliance with consumer protection laws is paramount, especially the Community Reinvestment Act (CRA) and the Home Mortgage Disclosure Act (HMDA) [cite: 4 from first search].

The company's track record here is a significant competitive and legal advantage. Central Pacific Bank has received an Outstanding rating from the FDIC for its CRA performance since 2005 [cite: 4 from first search]. This rating is not just a badge; it demonstrates a deep, sustained commitment to serving the credit needs of its entire community, which is a key factor in regulatory approval for mergers or expansion.

Specific examples of this performance include:

• Excelling at serving the credit needs of economically disadvantaged areas and low-income individuals [cite: 4 from first search].
• Being a leader in making community development loans [cite: 4 from first search].
• Originating more Small Business Administration (SBA) loans to small businesses in 2024 than the other major banks in Hawai'i combined [cite: 4 from first search].

Furthermore, the bank maintains a Fair Banking Policy and robust procedures to ensure nondiscriminatory mortgage origination, directly addressing the requirements of HMDA [cite: 4 from first search]. The company also engages independent third parties to test and audit its programs, which provides an extra layer of assurance against compliance failures that could result in significant legal and financial penalties [cite: 4 from first search].

Central Pacific Financial Corp. (CPF) - PESTLE Analysis: Environmental factors

Mortgage underwriting explicitly incorporates Hawaii-specific risks like sea-level rise, lava, and hurricane threats.

You need to know how Central Pacific Financial Corp. (CPF) manages the unique physical risks of operating in an island state, and the answer is through explicit, localized underwriting (risk assessment before approving a loan). CPF's mortgage origination and underwriting processes specifically account for flood, lava, sea-level rise, hurricane, and tsunami risks, going beyond standard federal requirements. This is a critical risk mitigation step, especially as climate change accelerates.

The exposure is significant, so this due diligence is defintely warranted. As of December 31, 2024, the company's portfolio had a quantifiable exposure to 100-year flood zones, which the U.S. Federal Emergency Management Authority (FEMA) designates as Special Flood Hazard Areas (SFHAs). This exposure is manageable relative to the company's total assets of $7.41 billion as of March 31, 2025.

Here's the quick math on the flood zone exposure as of year-end 2024:

Loan Category	Number of Loans in Flood Zones	Loan Commitments in Flood Zones (USD)
Residential Mortgage Portfolio Loans	630	$284 million
HELOC Loans (Home Equity Line of Credit)	327	$97 million
Total Commitments in 100-Year Flood Zones	957	$381 million

The company is setting targets to increase financing for renewable energy and climate adaptation projects.

CPF recognizes that supporting climate-resilient development in Hawaii is both a community imperative and a smart, long-term business strategy. The company is actively setting targets to increase its financing for projects in the renewable energy and climate change adaptation sectors. This is a clear opportunity to grow the loan portfolio in a high-demand, government-supported sector.

As of December 31, 2024, the company's baseline for this green financing was already substantial, particularly in residential solar. This shows a commitment to the state's clean energy goals.

• Financed 2,414 loans for residential photovoltaic (PV) systems, with roughly $75.9 million outstanding.
• Supported 74 renewable energy customers with total loans outstanding of $9.9 million.
• Helped 361 agricultural sector customers with $3.5 million in loans, aligning with Hawaii's sustainability plan to boost local food production.

Operational practices focus on energy efficiency and 'green' initiatives across the organization.

The bank is also focused on its own footprint, prioritizing energy efficiency to save money and reduce its environmental impact. This isn't just a marketing story; it translates to real operational savings. CPF was even recognized with the prestigious Hawaii Green Business Award on Earth Day 2024.

The most concrete example is the use of solar power at key facilities. PV panels are installed at four Central Pacific Financial Corp. facilities, which cover approximately 28% of the total annual energy usage of those specific locations. The annual average energy produced by these panels is about 480,000 kWh, which translates to approximately $214,000 in cost savings per year. That's a clean one-liner on cost-cutting. Beyond solar, the company is continuously monitoring energy efficiency across all 27 branches, looking for opportunities like LED retrofits and HVAC modifications. Plus, they use green cleaning products and sustainable forest certified paper, reducing the environmental impact of daily operations.

Climate change and extreme weather events pose a direct threat to infrastructure and the tourism economy.

For a Hawaii-based bank, climate change is a core business risk, not a peripheral issue. The physical risks from extreme weather events-hurricanes, tsunamis, and volcanic activity-pose a direct threat to the infrastructure, real estate collateral, and the tourism-dependent economy that drives CPF's loan and deposit base. A major event could trigger a spike in loan defaults (Loss Given Default, or LGD) and non-performing assets, which were already at $11.1 million as of March 31, 2025.

CPF's Board Risk Committee has formal oversight of the Environmental, Social, and Governance (ESG) program, which includes assessing the potential impact of climate events on its owned and leased properties. The biggest near-term risk remains the tourism sector, which accounts for a significant portion of the state's economy. Any major climate event that disrupts air travel or hotel operations will immediately impact the cash flow of commercial customers, leading to a rise in credit risk across the entire portfolio. The company has to keep its business continuity planning (BCP) sharp because a single hurricane could temporarily wipe out a significant portion of its operating capacity.