SCHEDULE: HoldCo Asset Management Takes 5.7% Stake in Central Pacific Financial

HoldCo Asset Management and its affiliates have disclosed a 5.7% beneficial ownership stake in Central Pacific Financial Corp., citing the shares as undervalued and an attractive investment opportunity.

Summary

• HoldCo Asset Management, along with its affiliates and managing members Michael Zaitzeff and Vikaran Ghei, has reported a collective beneficial ownership of 1,526,651 shares of Central Pacific Financial Corp. common stock.
• This stake represents 5.7% of the Issuer's 26,981,436 outstanding shares as of July 31, 2025.
• The Reporting Persons acquired the shares believing they were undervalued and presented an attractive investment opportunity.
• HoldCo Opportunities Fund V, L.P. purchased 1,459,055 shares for approximately $39,976,531, using working capital.
• VM GP VII LLC acquired 67,596 shares through an in-kind distribution, with an approximate value of $172,229.
• The Reporting Persons intend to engage with Central Pacific Financial's management and Board of Directors to explore opportunities to enhance stockholder value.
• Future actions may include discussions on capitalization, ownership structure, board composition, potential business combinations, and improving financial or operational performance.

Sentiment

Score: 7

Explanation: The Reporting Persons explicitly state their belief that the shares were "undervalued and represented an attractive investment opportunity," indicating a positive outlook on the company's potential, albeit with an intent to drive change.

Positives

• Reporting Persons view Central Pacific Financial Corp. shares as "undervalued and represented an attractive investment opportunity."
• The investment group intends to engage with management and the Board to enhance stockholder value, potentially leading to positive strategic changes.
• The acquisition of a significant stake (5.7%) by an investment manager signals confidence in the company's long-term potential.

Risks

• The Reporting Persons may increase or decrease their position, including selling some or all shares, engaging in short selling, or hedging, which could impact share price volatility.
• There is no guarantee that the Reporting Persons' engagement with management and the Board will lead to the desired enhancements in stockholder value.
• The Reporting Persons may propose changes to capitalization, ownership structure, or board composition, which could lead to internal disagreements or strategic shifts that may not be universally supported by all shareholders.

Future Outlook

The Reporting Persons intend to continuously review their investment and may engage with Central Pacific Financial's management and Board to enhance stockholder value. They may propose changes to the company's capitalization, ownership structure, board composition, or suggest improvements to financial and operational performance. Depending on market conditions and other factors, they may also adjust their investment position by purchasing or selling shares.

Industry Context

The filing of a Schedule 13D by an investment firm like HoldCo Asset Management, indicating a significant stake and an intent to engage with management to enhance shareholder value, is characteristic of activist investing. This trend is prevalent across various industries, including financial services, where investors seek to unlock perceived value in companies they believe are underperforming or mismanaged. Such actions often aim to drive strategic changes, improve operational efficiency, or influence capital allocation decisions.

Corporate Governance

Legal Proceedings

• No Reporting Person has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) in the last five years.
• No Reporting Person has been party to a civil proceeding resulting in a judgment, decree, or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws in the last five years.

Stakeholder Impact

• Shareholders: Potential for enhanced stockholder value if the Reporting Persons' strategic engagement and proposals are successful. Conversely, potential for volatility if the Reporting Persons significantly alter their position or if their proposals are met with resistance.
• Management/Board: Increased scrutiny and potential pressure to implement strategic changes or improve performance.

Next Steps

• Continue to review the investment in Central Pacific Financial Corp. on an ongoing basis.
• Engage in communications with the Issuer's management team and Board of Directors regarding opportunities to enhance stockholder value.
• Potentially make recommendations or proposals concerning changes to the Issuer's capitalization, ownership structure, board structure (including board composition), potential business combinations or dispositions, or suggestions for improving financial and/or operational performance.
• Adjust investment position by purchasing additional shares, selling existing shares, or engaging in hedging transactions, depending on market conditions and other factors.

Key Dates

Recommendation

The filing indicates an activist investor has taken a significant stake, believing the shares are undervalued and seeing opportunities to enhance shareholder value. While this could be a catalyst for future price appreciation, the outcome of activist engagement is uncertain. A "hold" recommendation is appropriate for existing investors to observe the developments from this engagement, while potential new investors might consider a "buy" if they have high conviction in the activist's ability to unlock value. Given the general nature of the filing, "hold" is a balanced approach.

Keywords

Central Pacific Financial Corp, HoldCo Asset Management, Schedule 13D, Activist Investor, Shareholder Value, Corporate Governance, Investment Opportunity, Undervalued Stock, Bank, Financial Services