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Central Pacific Financial Corp.

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Industry Banks - Regional
Employees 697
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FY2006 Annual Report · Central Pacific Financial Corp.
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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