Central Pacific Financial
Annual Report 2006

Plain-text annual report

Our Service Commitment We arc coniinitted to delivering superior scrvicc to our custmiers by consistently exceeding expuctationc arid providing the “uiiexpected extra” a t every opportunity. Clhairiiian arid I) rc s i d c 11 t / Chi e f M e s s age Executive 0 ffi c c r 's Koilald K. Migita, Chairman of the Board, and Cliiit Arnoldus, President a n d Chief Executive CXEccr, Ceiitral l'acitic Bank and its parent corripany, Central Ricific Fin:uicial Gorp. Extraordinarily inspiring . . . that i s the bcst way to describe our rmployces arid their coirimitmerit to serving our customers.'The results of their dcdic-ation a n d loyalty 1i;ivve been treniondous. As cvideiicc, in the fourth qiiarter of 2OO6, Bank Director magazine ranked LIS No. 17 among the 150 largest U.S. banks aiid thrifts in terms of profitability, capitalization and asset quality. 'That kind of siicccss c:m only come about when you liavc great employees who are focused on a n d coriirrijtted to providilig the best for our CLlStotiierS. Working alongside our ell-iployccs is constantly inspiring. It takes a total team efTort to continue to grow our business in an extremely competitive market. We are therefore proud to aririourice that in 2006 our total assets grew by 4.7 percent, including a 5.6 percerit increase in deposits and an 8.3 percent increase i r i loans. Our market capitalization at year-end grew to $1.2 billion, m d wt' realized a 2 1 .01 percent return on avrrage tangible shareholders' equity with a 1.50 percent return on average assets. Our employees have worked hard to achicve this success. After all, firlaricial institutions arc easily broken down into the products arid services they offer, which arc for the most part quite siniilar. The differentiating bctor is scrvice, arid that is how Central Pacific has always defined itself, O u r history is one of service. So the emphasis throughout o u r con-ipany continues t o he a n uncoriipromisiing corrimitl-nent to service at the highest level. It is most gratifying to have customers conic up to LIS t o say what a great experience they have with Ccntr;il Pacific. However, what's most irriportant is that they always mention our loan oficers and bankers by name. We do a lot of customer surveys, but we will never find a greater tileasure of S ~ I C C C S S than having people go out of their way to say how iriucli they appreciate what individuals at oiir bank are doing for them. It's that kind of mutual cffbrt and support on the parr of our eiiiployees arid customers that continue to keep our bank moving forward. Outstariding service is prized within o ~ i r company whether it is o f k e d in the back offices or at our branches, because both contribute to the overall experience of our customers. Our qiiarterly Service Pride awards arc presented at a special luncheon with grcat fanfare to recogiiizc eiqloyccs norninatcd by their peers for s;iles arid service cxcellencc. Central Pacific's best of the best are then honored at our mnual Pinnacle Awards banquet. These arc ciiergizirig anti uplifting everits that riiotivatc our erriployees to strive for even greater at:coriiplishmel-its. Our scnior management team meets quarterly to d i s c u s s c'ustorner surveys in depth. It is a time when wc bewriic extrenicly self-critical.We believe that our bank can never be good enough.We riiean that in a positive way. If we hit 100 percent in custonicr approval ratings, we'll then want 100 perccnt with a n exclaination point! We ;ilways have to makc it better, because there's nevu a service level that can't be iniproved upon. 1 Any organization can have a checklist fix customer service, such as addressiiig custonicrs by name, and employces can robotically go through it. But it’s the sincerity arid gen~~ineness of the service that really difrerentiates us, enabling our custoniers to really fecl it. It’s not a program we’re pushing for this year only. It’s something that C O ~ O S from within - frorii the attitudes of our eiiiployccs - arid our exceptional performers always have that quality. They’re quite simply service people, no matter what they t o , cvcn away from their +jobs. Those are the kinds of people we hire. They make working at our bank filii and exciting, which contributed in large measurc to Central Pacific being named one of the Best Coiupariics To Work For In I Iawaii according to Hawaii Business magazine. We arc also very proud to have been named the Srrdl Business Adr~ii~iistratioii’s Txndcr of theyear for Hawaii Category 11 lerlders. Our Business Banking team has worked hard to achieve this honor for the third consccutive year. ‘The award is A testament to the services provided by our Worncii’s Business Central, a free rescxmx for entrepreneurs established iri 2004; oiir Business Banking Approval l ~ e p a r t m c ~ i t , a n enhancement irriplcrrierited last year to expcditc loan applications; arid our Cash Marlagemerit program, which we enhanced this year to improvc business efliciency. Our flagship Exceptional Plan contii-lues to introdtice new customers to Central Pacific. Our Business Exceptional l’lari enables busincss owners to also enjoy the henefits of combining their savings, checking and loan accounts into (me unibrella account for iiiaxiiiiiim liquidity and earnings. This unique product underscorcs our coiiimitnicnt to serving the irrirriediate financial rieeds of our customers as well as their future financial growth. In the area of Wealth Management, Central Pacific’s Trust division coritiriiies to build relationships with both individual and corporate customers. In 2006, the division cxceeded its goals with a 28 percent increase in its account base and a nearly 20 percent greater contribution tu the bank’s revenues.Ycar after year, they arc beconiing a significant part of our business. Similarly, Private I3anking has grown from a start-up five years ago to another significant contributor to our business. Combincd with the expertise and fiiiancial guidance of our Investment Services group, our Wealth Management te;m provides service beyond coiripare in thc industry. Their siiccess is built upon the trust arid loyalty they have estahlishcd over the years with their clients. In the area of Coiiirncrcial Real Estate, we have further solidified our leadership role in the marketplace using service as our difh-entiator. We are recognized by developers in Hawaii as the No. 1 team bccause our peoplc have the expericricc to serve as consultants, are easy to deal with, and can turn things around quickly. They are passionate about their busincss, arid they add value to a project because of what they bring to tlic table. The S L I C C ~ S S of Island Pacific Academy in Wcst Oaliu is just one example of the exciting possibilities that can bccorrie reality when we work together with our partners in the comniunity. L L We steypcd forward on this project - knowing how important education is to our coimirrnitics - mid to sce thc school’s Working with He;idiiiastcr Dr. 1 h i i e l White a t i d Director of Fiiiancl- Stuart Hirstein ;it Island Pacific Academy has been a labor of love for Ryan Harada. The indcpcndent, non-profit, iioii-scctariari collcgo prepxitory school located in Kapolei on Oahu first opened in 2004 to serve children in pre-kindcrgnrte1-i through grade 7. Central Pacific provided the finaIicirig - its first relationship involving the cnristruction of a school - arid had its cnrrirrlitnient rcwartled as cnrollment quickly swelled. Last year, the bank stepped in again to help thc d i o o l fiirid the addition of its $15 niilliori high school. Today, 550 studerits arc cnrolled a t Island Pacific Academy and its future is promisiiig. I n Hawaii, C:enrral Pacific’s C:oirinicrcial Kea1 Estate team chalked up 60 project starts in 2006. The miount final-iced totaled $575 million, a 53 percent increase over the previous yew. Highlights of the team’s work on Oahu in 2001 include two affcxdablc rental prqjccts for the elderly, Piikoi Vista a n d TLisitala Vista, wl-iich added 154 units to a highly sought aftcr a n d n-iucti-nccded segment of the islarid’s rcrital inveiitory. In adciitiori, the bank fiiiaricod the :icqiiisition and corivcrsion of several apartment biddings t o cnridorriiniun-is. I.kvclopcrs first o f h c d the condominiunis to existing tenants, giving then1 an opportunity to own tl-ieir iiriit instead of rcriting. Ccntral Pacific also c:ontiiiucd its strong presence on the Big Island, Maui and Kauai, providing fiinds for numerous rcsidcntial coiiirnunities, retail ccritcrs and iridtistrial subdivisioiis. ‘rhe Neighbor Islands I-lave shown steady growth il-i recent years, and Ccntrril Pxific is proud t o be a Iiaiids-ol-I partner in these coriiniunitizs by incrcasing the opportunities for home :uid business ownership a n d creating additioi-i:il eiiiployment. As part of Central I’acific’s diversification strategy, its Coirimerc-i;il llcal Estate-Mainland team coritiriiics to grow its operations ;is welL’I‘hc division was inivolved in 70 prqjects i t i 2OO6, prini;irily in Californili. Originations totalccl $625 million, a 26 percent iricrcase ovei- 2005. Chriibined, the Hawaii :uid Mainhicl teaiiis generated $1.2 billion i n loans, a n d e:ich of its respective portfolios exceeds $1 billion. ( h t r a l Pacific’s success on the Miiiiilarid helps the bank fund iiiiprovcrricnts t o the products and services it offers Hawaii customers. This soiircc of iilcoriic cns1ires the lmik car1 contintie to serve local customers even if the pace of I Iawaiii robust cconon-ty shoiild change. Central I’acific’s Conimcrcial Ked Lstatc teams have used their years of cxprrierice in the industry arid committiieiit to service excellence to build a solid reputation with develop Pacific bccausc of its flexibility, quick tiirflaroiifid and the d d i t y of. the (:oiiiiricrcial Kea1 Estate te:inis to structure finnnc-ing so that every feasible pmjcct is hroiight to market oii t h e a n d 0 1 1 tmdgct. By assessirig mat-ket coiiditioris arid cnvicioiiiiig how projects will fit into the coiii~iiiinity, ( h i t i - a 1 Pacific’s (hill-iiercial Rcal Estate tcariis are :hie t o bririg business siicccss a n d the fulfillrricnt of. wtmnuiiity riccds together. Many developers choose t o work with Central L L B ~ ~ i n e ~ ~ ventures often take us into expansive new areas, such as making Hawaii inore energy independent.” As a senior lender in a four-bank syndication with three European institutions, Central Pacific is helping to finance Hawaii’s largest state-of-the-art, cotnnlercial-scale wind farm, Kahrawa Wind Power, which is aimed at making Hawaii more energy efficient atid less dependent on irnportcd fossil fuels, such as coal and oj1.A~ a Central Pacific relationship officer, Garrett Grace becomes the quarterback for such projects by fulfilling custonier needs and helping them reach their objectives. Garrett’s responsibilities can start at settirig up 401 (k) plans to help e~riployees at a business save for the futurc, and can go as far as coordinating loans and leases that eiiable operations such as Kaheawa Wind Power to save Maui ratepayers morc than $13.4 tiiillion annually on their electricity bills. Thc bank’s employees enjoy relationships with a wide variety of businesses throughout the islands. From marine operators to mushrocmi growers, irrigation systems to bakeries €or dogs, Central Pacific helps Hawaii businesses grow year after year. Its employees particularly enjoy the opportunity to begin new relationships with customcrs, and this year the bank welcomed Pornare, better known throughout the islands as Hilo Hattie, to its esteemed client ohana. Just as the Hilo Hattie brand has becorne synonymous with the islands, Central Pacific hopes the bank will continue to be synonymous with successful Hawaii businesses. To this end, Ceritral Pacific has been upgrading the services of its Cash Managemerit team C;oing online with iBusiriess Central erlables customers t o access their balance information, get detailed transaction reports, and take advantage of wire services arid the bank’s Positive Pay check fraud prevention feature. Lockbox service has Central Pacific functioning as the customer’s agent to receive, prc>ccss arid automatically make deposits. Automated Clearing House is a seciire transfer payyment system used for payroll direct deposit, collectiori of rccurring payments, and tax and vendor p;iyyments. This year, Central Pacific became the first commercial financial institution in Hawaii to offer Remote Deposit Central as a Cash Management tool. Custotners me a scanrier provided by Central Pacific to electronically transfer their check deposits to their (Ientral Pacific account, which eliminates trips to the bank and additional time away from their businesses. J3y utilizing Remote Deposit Central and all the other features of Cash Management, business customers can manage their furids more cft-iciently and utilizc their time arid staff resources more effectively. Leasing is another area that helps cii~toniers enhance their bottom line. Central Pacific’s Leasing division provides finaricing for oftice, industrial and construction equipment as well as specialized trucks and executive cars to help businesses operate at peak cficicncy and optimize their cash flow. In another banner year, the Leasing division was able to increase its cust(mier base by 15 percent and grow its portfolio by 11 percent. In 2007, Central Pacific’s banking teams and executive ofliccrs will be meeting with more customers in regularly scheduled visits. Learrlirig how custotncrs’ riceds change as the state economy changes will help the bank maintain its high scrvice level. Central Pacific is just beginning to capitalize on the synergies it has built internally between its divisions, arid customers arc surc to see the benefits throughout the corning year. l e worked with DK on his personal business accounts for years, and he’s savvy, dow 11- to - earth b mi ness m a n whom I really adinire.” Whcn award-winning chef and restaurateur DK Kodama turned to Central Pacific’s Kyle Sakamoto o n Maui for financing to renovate his restaurants, Kyle was happy to offer DK a full menu of financial solutions. When DK subsequently decided to open two more restaurants in Waikiki, he again turned to Central Pacific for help. UK is onc of Hawaii’s most compelling success stories. His crcativity, natural business instincts and passion have built a succcssfd chain of seven restaurants - and counting. Like DK Kodama, who is no stranger to hard work and long hours on the job, Hawaii’s small business entrepreneurs are all hoping to experience the sweet taste of success.They remain at the heart of our state econorny - providing the islands with goods and services, employing rnany residents, and driving the state’s current and future growth. Central Pacific is a dynamic contributor to that growth, serving the needs of- srnall businesses whethcr they are brand new start-ups or expansions by scaoned pros. In fact, in 2006, Central Pacific was named the Small Business Administration’s Lender of theyear for Hawaii Category I1 lenders. This is the third consecutive year that the bank w a s recognized for this honor. The credit goes to Central Pacific’s sinal1 business banking specialists who go the extra rriilc to assist novice entrepreneurs in turning their business plans into reality. The bank also encourages leaders among small business, and this past year, Central Pacific had nine of its norriinees recognized as Srriall Business Champions. Many Hawaii businesses took advantage of the bank’s launch of its new Business Exceptional Plan. Like its consurrier counterpart, Business Exceptional enables business owners to corrbine their Central Pacific accounts for greatcr liquidity and higher interest earnings. The account also featurcs a list of cost-saving benefits, toppcd by frce nationwide ATM access for business people who do a lot of traveling. Additional benefits include an array of free bank products and services as well as discount offers. Worneri still make up the largest segment of the sniall business community, arid Central Pacific continues to adjust thc offerings of its Wornen’s Business Central to fit their needs. An exclusive bank prograrri, Wornen’s Business Central sponsors seminars, holds networking opportunities and provides inentors to put new busiricss owricrs on the fast track to success. As this program matures and owners become niorc sophisticated in operating their businesses, Central Pacific will be looking at additional ways to provide meaningful assistance to this group of entreprencurs. Central Pacific’s latest innovative concept to serve businesses better is the Financial Center, the first of which opened in Kahului it1 October. The center brings togcther Central Pacific’s professional services under one roof for greatcr customer convenience. “Harry Matsuki and his family inspire me to go the extra iiiile and wow’ every siiiglc customer.” L Ninety-two-year-old Harry Matsuki, a 442nd Regimental Combat Team veteran, has been banking with Central Pacific Bank for 48 years. He and Charlotte H i p at the bank’s Kainluki Branch have known cach other for 20 of thosc years. Since he lives close to the branch, Charlotte often visits Mr. Matsuki at his home. Each time, he shakes Charlotte’s hand arid thanks hcr for the great service he arid his family receive from Central Pacific. Offering products that help customers achieve their personal goals is a major part of the servicc Central Pacific provides. Five checking accounts fit every customer’s needs, from the popular Totally Free Checking to the bank’s Interest Checking to Checking Five-0 for pcaplr who are 50 years old or better. Gold Checking is a value-added account unveiled this past year, offering no minimum balance, u r h i i t e d check writing, daily compounded interest, free checks arid identity theft protection, free online bankitlg plus shopping, travel ;ind entertainment discounts. Central Pacific’s flagship Exceptional Plan is always a winner. Allowing customers to combine their deposit and loan accounts provides greater liquidity with higher earnings and an impressive list of valuable benefits. With reimbursed ATM surcharge fres nationwide, free checks and traveler’s checks, frce notary servicc, plus identity theft and payment card protection and discount offers, the Exceptional Plan saves customers inore while providing greater convenience. This year the bank also increased the convenience o f its onliric hanking service with the latest technology upgrades. Central Pacific custoiners can use online banking day or riight to download thcir account activity, view check images, re-order checks and pay bills - all without leaving their home or even picking up the phone! And all transactions are coinpleted quickly arid securely. Central Pacific will continue to integrate high-tech innovatioils into its operations while also remaining comrrlitted to high touch through its branches and people. The bank maintains a Call Ccnter fully staffed by service-oriented employees who help custoniers with questioiis on their accounts or any of Central Pacific’s prodticts arid services. Although high tech has its place, custorriers still appreciate having a friendly bank representative provide them with truly personalized assistance. At the branches, cniployees look forward to putting a “WOW” into serving every customer.This year Central Pacific tested a pilot program called “Create Magic” at five of its branches.The staff was commissioned with rriaking visits more memorable for custorncrs - like having coloring sheets for childreri waiting for their parents to do their banking, or offering senior citizens a cool drink on a hot day. When “Create Magic” was announced, every brarich waritcd to be part of it. In 2007, all employees will get their chance when the program rolls out systemwide to demonstrate Central Pacific’s appreciation for its customers. The rriagic of the bank’s network wjll soon have a wider reach with the opening of new branches in Pearl City, Oahu and Lahaina, Maui. And LO add to customer convenience, Central Pacific also plans to expand its ATM network with more locations during the coining year. 6 6 It is rewarding when our clients return for repeat business whether it is to finance the purchase of a larger home or an investment property.” w r ~ i ) ~ P A N G S ~ l l I i ~ l I 1 1 1 I’ll \ I d 1 F l f - l ’ l c l / c c t 1 ~ l l l / l l l ~ , ~ ~ l ~ ~ l i ~ i l l l ’ i U I / I i IIi~llllLll~ltl~ Sheree and Andrew Stewart wercn’t just looking for a new residence, they wcre looking for a home that would accommodate their busy lifestyles as attorneys and be pet friendly, too.They found the perfect setting in late Noveniber at Ko‘olani condominium in Honolulu and called upon Wendy Parig at Central Pacific HomcLoans to help them with the financing. Wendy had first helped the Stewarts four years ago as first-time honiebuyers. Wendy not only matched them up with the perfect mortgage product, she expedited processing of the paperwork s o the Stewarts could move into their new home by mid-December - in plenty of time for the holidays! One full year after acquiring Hawaii HorrieLoans, Central Pacific has successfully grown its marketshare arid gcnerated higher loan volume by funding new honies for customers or refinancing their current hollies. Most importantly, Central Pacific HorrieLoaiis was able to achicve this with a 90 perccnt or better custonicr satisfaction rating in t e r m of loan approval rates and responding to customers in a tiniely manner. Central Pacific HomeLoans continues to expand its offerings to the bank’s customers with an experiericcd staff that stays up to date with the wide range of products available in today’s niarket.They know about the latest conventional and adjustable rate loans, first-tirnc buyer and interest-only loans, Hula Mae arid FHA loans, and everything in between. Central Pacific HomeLoans is managed by people with a long history in the business - more longevity than any management team in Hawaii’s mortgage market. With this kind of track record, the conipany is able to cultivate a level of expertisc and service that can place large numbers of the islands’ people into the horrics of their dreains. To increase this ability of providing customers with the best in products and services, Central l’acific HorneLoans opericd four additional joint venture mortgage brokerage corripanies during 2006, which now brings this total to six. By joining forces with local horriebuilders aiid real estate corripanics in this way, Central Pacific HomeLoans was able to fund more than $825 million in mortgages in 2006 even as tlie iiiarkct slowed. The company also serviced n o r e than $1 billion for other lenders, including Farinie Mac and Freddie Mac. However, the most important goal continues to be putting people into homes. In 2005, Central Pacific HonieLoans launched its successful Home Possible seminar, geared for first-time homebuyers looking for affordable homes. Thc program crnphasizes the company’s ability to help prospective buyers in virtually all circunistanccs, inaking homeownership a truly possible dream.Those who may not qualify for a rriortgagc loan today are placed into programs that will eriablc them to qualify down the road. “Service is ;I frame of mind, k and spirit, arid we strive to help stomers like Jason as we would own parents, fiiinily a i d fiiieiids.” - is cine of thrce partners behind TalkStory l’roductioiis, the first local Entrepreneur arid irivcstor Jason L ~ u indeperiderit film company to pursue funding for mainstream theatrical releases. Keith Masuda and Central Pacific are cxcitcd to be behind-the-scenes players, hoping to bring about many h;ippy endings. In doing its part t o geiicrate riiore intcrest in Hawaii’s film industry and promoting the islands through ‘KdkStory’s releases, the bark also gained the privilege of servicing Jason’s personal financial portfolio as well as thc production company’s ii’lvcstinent funds. Central Pacific’s Wealth Management tea111 works diligeritly to earn the trust arid respect of its customers. Thc team realizes the fiirids they deal with frequently represent years of personal effbrt and rrieticulous financial rimiagement. They often also represent the legacy of previous gcneratioiis as well as the prtlinise that the future holds. The team custorriizes its pruducts and services to hclp custoiiiers achieve thcir goals. Central Pacific’s Trust division has been providing educatjori oii the value of placing assets into trust accounts arid developing successiori plaiis to protect arid preserve financial legacies. New personal trusts, institutional custody accounts and btlsiness cash sweep accoiiiits helped the divisiori cxcecd its goals in 2006 with assets growing 13.7 perccnt to $2.24 billion. Working with the bank’s branch stafi, biisiriess bankers, rid representatives from its leasing aiid cash rrianagcrnent operatioiis has helped Central Pacific’s Trust specialists share their expertise with more of Central Pacific’s custoincrs. Partners are a n essential part of the bank’s success, I n inid-2004, Central Pacific entered into a strategic alliarice with Affinity Iiivestrneiit Advisors, LLC to niariage custoiners’ large cap core portfolios. Nationally raiiked sub- advisors will continue to be added to brcladen the bank’s money rnanagetiient capabilities. T h e Investment Services division also achieved another year of- solid growth. In-tiouse experts iitilizc a broad raiige of products to diversify custoiricr portfolios. They also call upon tlie adv;mced plaiiiiing capabilities of Ll’L Finailcia1 Services, America’s leading independent brokerage firm, to provide the bank’s custor-iiers with sourid irivestnient advice. By weighing risk tolerance arid customers’ short and long-term goals with expcrienced advice arid consistent high-performing investments, Central Pacific remains focused on creating a better a n d worry-firc fiiture for our custorncrs. During the past year, Central Pacific’s Private Banking grew total assets to nearly $200 million, which il-icluded a 110 perceiit increase in deposits and a 45h percent increase in i t s loan portfolio. What sets Ccntral Pacific apart in this area once again is the time the staff takes to really get to know its customers s o needs are ;inticipated and there is complete assurance that trarisactioris arc complcted with efkiency and attcntion to detail. Ckntral Pacific has established a tradition of going beyond the service it providcs to customers each day by reaching out into the cornrnunity with its corporate giving efforts. The hank’s philanthropy benefits people with different needs on every island in every age bracket, s o to have the Outstanding Corporation Award preserited to Central Pacific hy the Aloha Chapter of the Association of Fundraising Professionals was especially rrleaningful to the bank and its employees. More than 350 noli-profit organizations are helped each year through Central Pacific’s statewidc community-giving efforts. A few of the recipicnts in 2006 included: Hawaii Island Economic 13evelopnient Board, Hilo Medical Center Foundation, U H Foundation-Tmiloa Astronorny Ccnter of Hawaii as wcll as the American Cancer Society’s Taste of T3ig Island and Innovations Public Charter School Foundation in Rona on the Big Island; J. Walter Carrieron Center, the Maui Adult Care Center, Maui Economic Development Board and tlic Maui Memorial Medical Centcr Foundation Inc. or1 tlicvalley 1sle;ARC of Kauai, Kauai Hospice Inc. and Kauai United Way on tlic Garden Isle; arid C;oodwill Industries of Hawaii Inc., Hawaii Meals on Wheels, Pacific Gateway Center, Public Schools of Hawaii Foundation,W;iianac Coast Corriprehensivc Health Ccriter arid Waikiki Health Center on Chhu. In 2006, Central Pacific once again niadc its branch network available for thc annual Lokahi Chirig l’roject. Branchcs collected donations of funds arid gifts that would be presented to less fortunatc firnilies i n Hawaii during the holidays. Angie Higa and her teaiii, along with many bank employees, get personally involved with the project each year by adopting deserving farriilies and adding their own coiitribu tions to the drive. This year the bank raiscd over $183,000, thanks to the generosity of our crriployees and customers. Another example of Central Pacific’s community involvemel-it is its title sponsorship of the “Ked Cross True Blue Heroes” program. Teal-ning with tlie Arricrican Red Cross - Hawaii Chapter, the bank recognizes individuals in the community for their kind arld heroic acts to hclp others. Nominations are solicited throughout the year from the corrirnunity, and winners are recognized during a reiriote broadcast of KSSK’s Perry arld Price Saturday morning breakfast radio show at John nominis restaurant. The bank is also proud of its 12-year afriliatiori with Perry and Price, who use their No. 1 rated weekhy l-riornirig show to enlist civic-minded listeners in a n irnprorriptu “posse” to put a stop to crirrie as it happens. Whenever a perpetrator is caught, Central Pacific donates $1,000 to its C.A.T.C.H. (Citizens Against Troublemakers arld C:rirninals in Hawaii) Fund. This year, $5,000 grants from the furid were presented to Kokua Kalihi Valley h r a coiiiiiiunity gardening pavilion in Kalihi Valley Nature Park and to Chholic Chritics to build a much-needed children’s playground at a tiorlieless shelter on the Big Island. Bank representatives and ciistonicrs also got into the spirit of giving, teeing it up in 2006 for a couplc of charity golf tournaments. O n theValley Isle, tlie 1Xth Annual Central Pacific Hank Maui Arts & Cultural Center Beiiefit Golf Tournament raised $37,000 for thc Center, which is a focal point for major events on Maui. This year’s tournament brought the bank’s total contributions to the Center to iriore than $410,000. Noxt year, the tournament will be rcnarricd aftcr Pundy Yokouchi, one of Central Pacific’s senior advisors from the island of Maui w h o passed away in 2006. On Oahu, the 29th Annual Central Pacific Bank Charity Golf Tournament raised niorc than $40,500, which will be used for capital irriprovuriicnts to Shriricrs Hospitals for Children - Honolulu. “DoiiAtiiig blood is a small way I can make a big difference in someoiie’s life - just imagine, sonleone’s life!” Pearl Mori aiid Alex Battad are two more examples of the spirit of aloha that exists within the ranks of Central Pacific’s wonderful employees. I h t h Pearl arid Alex were recognized as Supcr Donors at last ycar’s Blood Bank of Hawaii annual donor luncheon. Pearl, who has donated blocid for 30 years, has 129 pints to her credit. Alex has given 125 pints since 1968. These two employees know that 60 percent of Hawaii’s population will need blood during their liGtirric, and they are happy to help in this very valuable way. Central Pacific is proud of the way the bank’s erriployees respond to the needs of others. Employees at each branch often take the initiative to participate in evcnts within their communities. An example is the Waikiki Branch, which joined thc Waikiki Ohana Workforce of the Waikiki Improvement Association to clean up the beach. O n the Big Island, the bank’s Hilo Branch proved big hearts exist in srriall towns. Eiiiployees threw 110 percent of their best efforts intc) participating in their island’s Food Drive to fight hunger. Their enthusiasm resulted in the collection of 480 pornids of food, which contributed to the bulk of the Food Drive’s total collections of 552 pounds. The bank’s conmiitrrient to the March of Dimes would not be successful each year without the support of our erriployees. Thc therrie this past year was “Walk for Someone Yoti Love,” arid Central Pacific set a fundraising goal of $65,000 to help prevent premature births and birth defects. With 76 teams participating, the bank well exceeded its goal by raising rriorc than $93,000 and walked away as the top fundraising team in Hawaii. Central Pacific also turned out the largest teams with 350 employees, family rricinbers and friends participating on Oahu and 420 walkers statewide. Making sure C‘enti-Jl I’acitk I \ wcll represeticed at culcui-a1 Cesrivdc througli- (.)ut rhc state I C mothei- way baik employees Ict their CorporJtr pridc ihlnc. Diiring the )‘e.u, their prescnie d t the Filipino. Kureati aiid O k i n ; n v x i fcscivah was 3 credit IO the b.irik. Foi- the rndivi- duals involved, the t‘e5tivdls prcsented :in opporrunity t o riot just celebrarc their ~ M ’ I I cirlrure but d s u t o Irmi abour arid enjoy the color a i i d custom\ of other cchnic groups that havc m;idr their i r q w t o i l l i k in H~\vait. Our islands are also wcll served by the hours arid efforts Central Pacific erriployees devote to favorite organizations in their home communities. Once the workday is over, rriany of them head for Little League Baseball, AYSO Soccer or Pop Warner Football practices. Thcy serve on parcnt-teacher boards, lead scout troops, volunteer fcjr nonprofit organizations and help organize church activities. Corririiuriity involveiiient is also irriportant to senior management who frequently serve as ofticers, board members or financial advisors for civic organizations. One iiiissiori has united Pearl, Alex and all the eriiployces of Ceritral hcific in 2006, and that is being rccognized as the nest Cnrrirriunity Bank Serving Hawaii. lnspired by Ccritral Pacific’s legacy of service, the bank’s el-riployecs are continuing to build long and trusted relationships in the comrritinity. These persorial stories of corririiiiriity volunteerism arc just a handful arnong many at a bank that earned honors as one of the Hest Companies To Work For In Hawaii. Being corrirnitted to each Other, to custorncrs and the coirirriunity is what keeps Central Pacific employees reaching beyond today to bring quality to each and every relationship. C: or p ora t e L3 i rc c t ory AS OF DECEMBER 3 1 , 2006 Board of Directors Clint Arnoldus President & Chiet FxeCUtlVc Offlcer Central Paufic Fiwencial Cnrp. Richard J. Blangiardi Senior Vice Presideiil & General Manager Finniis Cummunications C w Christine H. H. Camp Friedman Priricipal & Managing Director Avalon Oeveloprnent Cornpany, L LC Earl E. Fry Executive Vice President, Chiet Financial Officer and Secretary lnformatica Corporation Dennis I. Hirota, Ph.D. President Sam 0. Hirota, Inc Clayton K. Honbo, M.D. Rctired Paul J. Kosasa President & Chief ExeCUtiVO Officer MNS Ltd dba ARC Stores Duane K. Kurisu Chairman of the Board & Chief Executive Officer aio group, Partner, Kurisu R Fergus Colbert M. Matsumoto Chairman & Chiet Fxecutive Officer Island IiiSurancc Company, Ltd. Ronald K. Migita Chairman ot the Board Ccriiral Pacific Finanr:ial Gorp Crystal K. Rose, J.D. Panner Bays Deaver L.ung Rose & Holm3 Mike K. Sayama, Ph.D. Vicc President, Customer Relations Hawaii Medir:al Service Association Maurice H. Yamasato President Yainasato, Fuliwara, Higa & Associales, lnc. Dwight L. Yoshimura Senior Vice President & Seriinr General Manayer GGP Liinited Partnership Executive Managei-nent Clint Arnoldus President & Chlef Executive Mficer Dean K. Hirata Vice Chairman & Chief Financial Officer Blenn A. Fujirnoto Vice Chairman. Hawaii Market Advisors Senior Neighbor Islands Island of Kauai Joichi Saito, Chairman Emeritus Yoshiharu Satoh, Chairman Emeritus Paul Owens Alice F. Guild Daniel K. Inouye, US. Senator Eaton Magoon, Jr. Minoru Ueda Harold K. Yamanaka Lester B.K. Yee. M.O. Island of Hawaii (Hilo) Tsuneo Akiyama Roland Higashi Thomas Hirano James T. Larnbeth. M.D Rex Matsuno Ernest A. Sakamoto Lindbergh Akita Dennis M. Esaki Richard Maeda Carolyn A. Nit, C.P.A. Frank Nonaka Allan A. Smith Roy Tanaka Dennis R. Yamada, Esq. Island of Hawaii (Kailua-Kona) Island of Maui James W. Higgins Wally K. lchishita William Kimi, Jr. Jean A. Murphy, GRI. ClPS Hilario A. Aquilizan, M.D. Hitoshi Hirayama Lawrence N. C . Ing, Esq. Howard Miyamoto, I3.D.S Maria A. Unemori. C.P.A. Firmicia1 Highlights CENTRAL PACIHC FINANCIAL CDRP AND SllBSlDlAHlFS (Dollars in thousands, except per share data) ~ - ~ ~ ~- ~ .~ 2006 2005 Change ~ ~~~ $ $ $79,180 2.60 2 57 0.88 5,487,192 3,844,483 3,793,724 738,139 24.04 38.76 3051 1 $ $ ~ 72,459 2.42 2.38 0.73 5,239,139 3,642,244 3,499,813 676,234 22 22 35 92 29,956 1.50% 11.16 21.01 49 67 ~ 1.48% 11.16 22 88 49.59 9.3% 7.4 8.0 20.5 4.7% 5.6 8.4 9.2 8.2 7.9 1.9 .- - For thP fiur Net Income Basic Earnings Per Share Diluted Earnings Per Share Cash Dividends Declared Per Share - At Dtwn~bev .j 1 Assets Deposits Net Loans and Leases Shareholders’ Equity Book Value Per Share Market Value Per Share Average - - Number of Shares Outstanding . - binuncial Ratio, Return on Average Assets Return on Average Equity Return on Average Tangible Equity Efficiency Ratio ~. Return 011 Average ‘higible Equity 02 03 04 05 06 Diluted Earnings Per Share 02 03 04 05 06 E f i c i m c y Ratio 02 03 04 05 06 21 01% $2 JU 912 57 67 77% 4R ti7% Refer to tho Company’s Annual Report on Forr IO-K for the fiscal year ended December 31, 2006 for the Consolidated Financial Statements. including Report of Independent Registered Public Accounting Firm thereori C o 11s oli d 3 t t'd F i I I a 11 cia1 Hi ghli gh t s CENTRAL PACIFIC FINANCIAL CORP AND SUBSIDIARIES The selected consolidated financial highlights set forth with respect to Central Pacific Financial Corp.'s consolidated statements of income and consolidated balance sheets are derived from consolidated financial statements not presented herein. (Dollars in thousands, except per share data) 2006 2005 2002 __ ------ -- 2003 2004 ~ $ Stattwcwt oj' l n c o r ~ ~ Data Total interest income Total interest expense Net interest income Provision for loan and lease losses Net interest income after provlslon for loan losses Other operating income Other operating expense Income before income taxes Income taxes Net income (1) 320,381 109,532 210,849 1,350 209,499 43,156 132,163 120,492 41,312 79.180 Balunct, S h w t Data (Yt-ar-twd) Interest-bearing deposits in other banks Investment securities (2) Loans Allowance for loan and lease losses Goodwill Core deposit premium Total assets Core deposits (3) Total deposits Long-term debt Total shareholders' equity - $ 5,933 898,358 3,846,004 52,280 297,883 31,898 5,487,192 2,860,926 3,844,483 740,189 738,139 . ~. $ $ 150,389 30,217 120,172 2,083 1 18,089 22,018 86,131 53,976 16,582 37,394 $ 110,231 20,178 90,053 700 89,353 15,834 55,578 49,609 15,669 33,940 52,978 850,821 3,099,830 50,703 284,712 49,188 4,651,902 2,716,973 3,327,026 587,380 567,862 $ 5,145 540,785 1,443,154 24,774 - - 2,170,268 1,419,100 1,753,284 184,184 194,599 $ 118,462 29,483 88,979 1,000 87,979 15,282 55,023 48,238 14,955 33,283 $ 39,358 527,512 1,289,892 24,197 L I 2,028,163 1,280,471 1,641,101 147,155 173,443 $ 263,250 66,577 196,673 3,917 192,756 41,002 124,772 108,986 36,527 72,459 9,813 925,285 3,552,749 52,936 303,358 35,795 5,239,139 2,814,435 3,642,244 749,258 676,234 $ $ Per S h m n a t a (4) Basic earnings per share Diluted earnings per share Cash dividends declared Book value Weighted average shares outstanding (in thousands) $ 2.60 2.57 0.88 24.04 30,511 ~ 2.42 2.38 0.73 22.22 29,956 $ $ 1.90 1.87 0.64 20.17 19,637 $ 2.12 2.07 0.64 12.11 16,027 2.09 2.04 0.40 10.86 15,931 Finanrid Ratios Return on average assets Return on average shareholders' equity Return on average tangible equity Efficiency ratio (5) Net interest margin (6) Net charge-offs to average loans Nonpettorming assets to year-end loans and other real estate (7) Allowance for loan losses to year-end loans Allowance for loan losses to nonaccrual loans Dividend payout ratio 1.50% 11.16% 21.01 % 49.67% 4.55% 0.05% 0.23% 1.36% 583.61 % 33.85% _ . ~ . 1.48% 11.16% 22.88% 49.59% 4.63% 0.05% 0.35% 1.49% 421.77% 30.17% _ 1.25% 12.37% 18.45% 57.77% 4.51 % 0.06% 0.35% 1.64% 492.79% 33.68% 1.64% 18.33% 18.33% 51.94% 4.79% 0.01 % 0.25% 1.72% 688.74% 30.19% 1.74% 20.55% 20.55% 52.17% 5.11% 0.04% 0.18% 1.88% 5,511 1.85% 19.14% ( 1 ) Net iiicome for 2006 includes the recognition of share-based cornpensatton under the provisions of SFAS 123 (R), "Share Based Payment." (2) Held-to-maturity SBCUritiBS at amortized cost, available-for-sale securities at fair value. (3) Noninterest-bearing demand, interest-bearing demand and savings deposits, and time deposits under $1oO,ooO. (4) Restated to reflect a two-for-one stock split eff8cied November 8. 2002. (5) Efficiency ratio IS derived by dividing other operating expense excluding amortization of intangible assets by net operating revenue (nel interest income on a taxable eqiiivalent basis plus other operating income before securities transactions). (6) Computed on a taxable equivalent bass using an assumed income tax rate of 35%. (7) Nonpetforming assets include nonaccrud loans and other real estate. Refer to the Company's Annual Report on Form 10°K for the fiscal year ended December 31, 2M)6 for the Consolidated Financial Statements. including Report of Independent RegiStered Public Accounting Firm thereon. t C o iisolida t t" d l3 ala 11 c e S h c c ts CENTHAL PACIFIC FINANCIAL COUP AND SUBSlUlARlES - LJECEMBEH 3 1 , 200G 8 2 0 0 5 (Dollars in thousands) Assets Cash and due from banks Interest-bearing deposits in other banks Investment securities: Held to maturity, at amortized cost (fair value of $64,249 at December 31, 2006 and $70,651 at December 31, 2005) Available for sale, at fair value Total investment securities Loans held for sale Loans and leases Less allowance for loan and lease losses Net loans and leases Premises and equipment Accrued interest receivable Investment in unconsolidated subsidiaries Due from customers on acceptances Goodwill Gore deposit premium Modgage servicing rights Bank-owned life insurance Federal Horne Loan Bank stock Other assets Total assets Lididitits a r i d thliurc.lro/d~vs ' Equity Deposits: Noninterest-bearing demand Interest-bearing demand Savings arid money market Time Total deposits Short-term borrowings Long-term debt Bank acceptances outstanding Minority interest Other liabilities Total liabilities Shareholders' equity: Preferred stock, no par value, authorized 1,000,000 shares, none issired Common stock, no par value, authorized 100.000.0OO shares, issued and outstanding 30,709,389 shares at December 31, 2006 and 30,436,862 shares at December 31, 2005 Surplus Retained earnings Deferred stock awards Accurnulated other comprehensive loss Total shareholders' equity Total liabilities and shareholders' equity Refer to the Company's Annual Report or1 Furrri 10 K for ltic fiscal year ended Deceniher 31, 2006 for the Cnrisolidcried Financial Statements. including Report of Independent Rcgistcrcd Putilic Awuiinliiiy Firm Ilweoll. ('CI1t1..11 l).lCIf\C 1111.1111 ,,/I ( ' { V , , 211110 24 ~ $ 2006 2005 129,715 5.933 $ 154,927 9,813 65,204 833,154 - - - 898,358 .. 26,669 3,846,004 52,280 - 3,793,724 77,341 26,269 12,957 453 297,883 31,898 11,640 102,394 48,797 23,161 - 71,843 853,442 ~ 925,205 60,538 3,552,749 52,936 3,499,813 72,568 22,006 12,417 530 303,358 35,795 11,820 68,325 48,797 13,147 -. $ 5,487,192 $ 5,239,139 $ ~. $ 661,027 438,943 1,205,271 1,539,242 3,844,483 79,308 740,189 453 13,130 71,490 730,952 442,879 1,091,057 1,377,356 3,642,244 82,734 749,258 530 13,157 74,982 .~ 4,749,053 4,562,905 430,904 51,756 270,624 I (1 5,145) 738,139 428,012 46,432 218,341 (612) (1 5,939) 676,234 $ 5,487,192 $ 5,239,139 C: on soli 11 ;it c' d Stat eiiieii ts of I iic oiiit' CENTRAL PACIFIC FINANCIAL CORP AND S U U S l D l A R l t S - YEAHS ENDED DECEMBER 31 2000 2005 R 2004 (Dollars in thousands, except per share data) 1nttro.sf I~K(JWW Interest and fees on loans Interest and dividends on investment securities: Taxable interest Tax-exempt interest Dividends Interest on deposits in other banks Interest on Federal funds sold and securities purchased under agreements to resell Dividends on Federal Home Loan Bank stock ~ $ 2006 ~ .- ~ - - ~- 2005 2004 279,246 $ 222,841 $ 120,684 34,775 5,080 538 550 34,058 5,281 278 349 143 49 171 272 ~- ~ 24,181 4,466 203 289 90 476 Total interest income 61 tcrest Fxpcnse Interest on deposits: Demand Savings and money market Time Interest on short-term borrowings Interest on long-term debt Total interest expense Net interest income Provision for loan and lease losses Net interest income after provision for loan and lease losses Otlw Operutirv Iwornt Income from fiduciary activities Service charges on deposit accounts Other service charges and fees Equity in earnings of unconsolidated subsidiaries Fees on foreign exchange Loan placement fees Gains on sales of loans Investment securities gains (losses) Income from bank-owned life insurance Other Total other operating income O l h i v Optrating Expense Salaries and employee benefits Net occupancy Equipment Amortization of core deposit premium Communication Legal and professional services Computer software services Advertising Other Total other operating expense Income before income taxes Income taxes Net income I+r Share Datii Basic earnings per share Diluted earnings per share Cash dividends declared 320,381 ~ 263,250 150,389 566 17,684 53,419 2,197 35,666 ~ 109,532 .~ 210,849 1,350 209,499 -~ - 730 7,859 29,797 1,858 26,333 66,577 196,673 3,917 192,756 381 3,795 12,687 735 12,619 - 30,217 ~. - 120,172 2,083 -~ 118,089 ~ 2,915 14,408 12,188 576 765 1,767 4,863 (1 5 1 0) 3,989 3,195 43,156 73,211 9,218 4,864 3,897 4,642 8,575 2,818 2,569 22,369 132,163 120,492 41,312 79.180 2.60 2.57 0.88 ~~ - - ~. _- $ $ 2,431 11,782 1 1,234 767 787 1,780 4,913 1,550 2,205 3,553 2,224 7,150 6,737 173 648 288 1,651 (1 9) 1,687 1.479 -. - 41,002 22.01 8 64,963 9,666 4,873 6,266 4,174 8,014 2,798 2,347 21,671 124,772 108,986 36,527 72.459 2.42 2.38 0.73 $ $ .. - - $ $ 43,252 6,550 3,151 2,581 2,267 8,660 2,450 2,885 1 4 , 3 3 5 86,131 53,976 16,582 -~ 37,394 1.90 1.87 0.64 Refer Io the Company's Annual Report on Form 10-K fur the fiscal year ended Docemher 31, 2006 for the Consulidatd Financial Statements, including Report of Indeperident Registered Public Accounting Firm thereorr. c Corporate Infornution Common Stock Information Corporate Headquarters 220 South King Street Honolulu, Hawaii Listing of Common Stock NYSE: CPF Mailing Address P.O. Box 3590 9 Honolulu, Hawaii 9681 1-3590 Annual Meeting 6:OO p.m. (Hawaii Standard Time) Tuesday, May 22, 2007 Ala Moana Hotel (Carnation Room) 41 0 Atkinson Drive Honolulu, HI 96814 All shareholders are invited to attend. Independent Registered Public Accounting Firm KPMG LLP On December 31, 2002, Central Pacific Financial Corp.'s common stock began trading on the New York Stock Exchange under the ticker symbol "CPF". Shareholders of Record and Dividend Declaration & Stock Price Information As of December 31, 2006, there were 30,709,389 shares of common stock outstanding held by 3,488 shareholders of record, excluding individuals and institutions for whom shares were held in the names of nominees and brokerage firms. Set forth below are the high and low sales prices and the cash dividends declared on common stock for each quarter. Shareholder Inquiries Wells Fargo Bank, stock transfer agent for Central Pacific Financial Corp. common stock, maintains shareholder records and can assist with address changes, corrections in Social Security or tax identification numbers and reissuance of stock certificates. Contact information for Wells Fargo Bank: Address: Wells Fargo Bank Shareowner Services P.O. Box 64874 St Paul, MN 55164-0874 Phone: Toll Free: 800-468-971 6 Monday - Friday, 7 a.m. to 7 p.m. (Central Standard Time) Direct Dial: 651 -450-4064 Web site: www.wellsfargo.com Forward-Looking statements (these statemonts apply to Contra1 Pacific Firiaricial Corp and all of its respective subsidiaries and affliates, to include, without liniitation, Central Pacific Bank, all of which are collectively referred to herein as the '"company"). This document may contain torward-looking statements concerning projections of revenues, income, expenses. earnings per share, capital expenditures, dividends. capital structure. or other financial itoms or mattors, c0nr:erniriy future ecorrornic perforrrrancc, concernlng merger-related synergies or matters, concerning growth, concerriirrg cornpany operations, activities, initiatives, projects, products and sewicos. or concerning any of the assumptioris iiriderlyiny (ir relating to any of the forayoiriy Forward-I(ioking statements can be identified by the fact that they do not relate strictly to lhistorical or current facts, and generally include the words '"believes". "plans", "intends". "expects", "estimates". "hopes", "envisions", "targets", "goals", strives" or words of similar meanirig o r expressiorr While we believe that our forward-looking statements and the assuinptions underlying them are reasonably based, such statoments and assumptions, aro by thoir naturc subject to risks arid uncertainties, ;ind thus could later prove to be ifiaccurate or incorrect Accordinyly, actual results could materially differ from projections for a variety of reasons, to include. but not limited to: the impact of local, national. and international economies and events (including national disasters) on tho company's husiness and operations and on tourism. the military, the real estate market and industry, and other major industries operating within the Hawaii market and other regional markets in which the company conducts its business: the impact of legislation and regulation affecting the banking and financial services industry: the impact of competitive products. sewices, pricing, and other competitive forces within the banking and financial sewices industry: movements in interest rates: loan delinquency rates: and trading of Central Pacitic financial Corp. stock. For further information on factors which could cai~se actual results to materially differ trom pmjections, please see Central Pacific Financial Corp.'s publicly available Securitios and Exchange Commission filings. including its most recent Form 10-K. The company does not update any of its forward-looking statements. Stock Price High Low $40.15 39.79 39.48 40.15 39.33 $ 38.79 38.28 37.02 37.68 38.79 $33.30 35.50 34.34 33.30 33.55 $ 31.10 31 .a7 33.10 31.10 33.20 Cash Dividends Declared $ 0.88 0.23 0.23 0.21 0.21 $ 0.73 0.19 0.19 0.19 0.16 2006 Fourth Quarter Third Quarter Second Quarter First Quarter 2005 Fourth Quarter Third Quarter Second Quarter First Quarter Financial Information For additional financial information, analysts, investors and others can obtain a copy of Form IO-K by writing or e-mailing: Central Pacific Financial Corp. Investor Relations P.O. Box 3590 Honolulu, Hawaii 9681 1-3590 E-mail: investor@centralpacificbank.com A copy of the Company's Annual Report and Form 10-K are also available on the Company's web site. Contact Information Phone: Fax: Web site: www.centralpacificbank.com E-mail: info@centralpacificbank.com (808) 544-0500 (808) 531 -2875 SWIFT: CEPBUS77 FEDWIRE:CENT PAC HONO 121301 578 Products and Services & l3ranch Locations Products and Serviccs Central Pacific Bank is a full-service commercial bank with a multitude of services as generally listed below: Deposit Services Loans Electronic Banking Trust & Investments Other Internet Banking / Rill Payment SetVlCES Phone Banking CheckGard Merchant Bankcard Services Personal Checking Business Checking Money Market Accounts 9 Sweep Accounts 9 Savings Accounts 9 Certificates of Deposit Individual Retirement Accounts IOLTNIRE-TA Accounts Lockbox Armored Gar Deposit Pick-ups Commercial Loans Construction Loans S B.A. Loans Leasing Services Credit Lines Mortgage Loans Homo Equity Loans Letters of Credit Credit Cards 9 Consumer Loans Credit Life and Disability Insurance Branch Locations Private Banking Savings Bonds Traveler's Checks Notary Services wire Transfers Financial Planning Custodial . Asset Management 9 Annuities (Fixed & Variable Rates) Securities International Banking Mutual Funds Bonds Brokerage Services Through a network of 38 branches statewide, including four supermarket branches and over 90 ATMs, the company brings convenience to its customers. There are 32 branches on the island of Oahu, three branches on the island of Maui, two branches on the island of Hawaii, and a branch on the island of Kauai. Island of Oahu Island of Maui Main Branch 220 South King Street Kalihi Gulick Branch 21 19 North King Street Moiliili Branch 2615 South King Street Kahului Branch 85 West Kaahumanu Avenue Beretania Branch 1338 South Beretania Street Kaneohe Branch 45-1 054 Kamehameha Highway Bethel Branch 1018 Bethel Street Kaneohe Windward Branch 45-1 151 Kamehameha Highway Hawaii Kai Branch 6600 Kalanianaole Highway Kapahulu Branch 909 Kapahulu Avenue Kahala Branch 421 1 Waialae Avenue Kahala lnstore Branch 1 173 21 st Avenue (in Times Supermarket) Kaheka lnstore Branch 801 Kaheka Street (in Don Quijote) Kailua Branch 419 Kuulei Road Kailua lnstore Branch 345 Hahani Street Kaimuki Branch 3465 Waialae Avenue Kalihi Branch 2024 North King Street Kapalama Branch 1535 Oillingham Boulevard Kapiolani Branch 1600 Kapiolani Boulevard Kapolei Branch 680 Kamokila Boulevard Keeaumoku Branch 81 8 Keeaumoku Street Mapunapuna Branch 960 Mapunapuna Street McCully Branch 2002 South King Street Mililani Branch 95-720 Lanikuhana Avenue Pearl City lnstore Branch 850 Kamehameha Highway (in Don Quijote) Pearlridge Branch 98-150 Kaonohi Street Royal Kunia lnstore Branch 94-615 Kupuohi Street (in Times Supermarket) Wahiawa Branch 935 California Avenue Waikiki Branch 105 Uluniu Avenue Waikiki Shopping Plaza Branch 2250 Kalakaua Avenue (on Seaside Avenue) Kihei Branch 207 Piikea Avenue Wailuku Branch 2061 Wells Street Island of Hawaii Hilo Branch 525 Kilauea Avenue Kailua-Kona Branch 75-1 01 0 Henry Street Island of Kauai Lihue Branch 4364 Rice Street Waimalu Branch 98-1 247 Kaahumanu Street Waipahu Branch 94-210 Pupukahi Street e CENTRAL PACIFIC BANK Member FDIC GI [DBRi Ward Branch 505 Ward Avenue 

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