SCHEDULE: HoldCo Increases Stake in Central Pacific Financial to 8.2%

HoldCo Asset Management and its affiliates have significantly increased their beneficial ownership in Central Pacific Financial Corp. to 8.2% of outstanding common stock.

Summary

• HoldCo Asset Management, LP and its affiliated entities, including HoldCo Opportunities Fund V, L.P., VM GP VII LLC, VM GP X LLC, VM GP II LLC, Michael Zaitzeff, and Vikaran Ghei, collectively reported beneficial ownership of 2,219,189 shares of Central Pacific Financial Corp. common stock.
• This aggregate ownership represents 8.2% of the Issuer's 26,981,436 shares outstanding as of July 31, 2025.
• HoldCo Opportunities Fund V, L.P. acquired 2,151,593 shares with an aggregate purchase price of approximately $61,453,167, funded by working capital and potentially held in margin accounts.
• VM GP VII LLC acquired 67,596 shares through an in-kind distribution of carried interest, with an approximate purchase price of $172,229.
• Numerous open market purchases of common stock by HoldCo Opportunities Fund V, L.P. occurred between September 9, 2025, and September 25, 2025, at prices ranging from $29.9909 to $31.2902 per share.
• The filing is an Amendment No. 2 to the Schedule 13D, updating beneficial ownership information and recent transactions.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. A significant increase in institutional ownership by an investment firm like HoldCo Asset Management can be viewed favorably by the market, suggesting confidence in the company's valuation or future prospects. While no activist intent is declared, the substantial stake indicates a strong investment thesis.

Positives

• Increased institutional ownership by HoldCo Asset Management and its affiliates may signal confidence in Central Pacific Financial Corp.'s future prospects.
• The significant investment of over $61 million by HoldCo Opportunities Fund V, L.P. demonstrates a substantial commitment to the Issuer.

Risks

• Securities positions held in margin accounts, including the shares, may be pledged as collateral security for the repayment of debit balances, introducing leverage risk for the reporting person.

Future Outlook

The filing does not contain any forward-looking statements or guidance from the Issuer or the reporting persons regarding the Issuer's future performance or strategic direction, beyond the reporting of beneficial ownership.

Industry Context

This filing indicates a significant increase in institutional ownership in Central Pacific Financial Corp., a regional bank. Such increased stakes by investment firms can sometimes precede calls for strategic changes or board representation, though this filing does not explicitly state such intentions. It reflects an investment decision by HoldCo Asset Management within the financial services sector.

Stakeholder Impact

• Shareholders: Increased institutional ownership may lead to greater scrutiny of management and potentially influence share price positively due to perceived institutional confidence.
• Management: A large institutional stake could lead to increased engagement or pressure from the new significant shareholder regarding company strategy or performance.

Key Dates

Recommendation

The filing indicates a significant increase in institutional ownership, which is generally a positive signal as it suggests a sophisticated investor sees value. However, a Schedule 13D/A primarily reports ownership changes and does not provide a comprehensive view of the company's financial health or strategic direction. Without further information on the investor's intentions (e.g., activist agenda) or the company's fundamentals, a 'hold' recommendation is prudent for existing investors, while potential investors should conduct further due diligence beyond this ownership update.

Keywords

Central Pacific Financial Corp, HoldCo Asset Management, Beneficial Ownership, Schedule 13D/A, Institutional Investment, Common Stock, Financial Services, Banking