Toggle SGML Header (+)


Section 1: 11-K (11-K)

Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
______________________

FORM 11-K
______________________

(Mark One)

ý
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017

or

o
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number 001-31567

A.
Full title of the plan and the address of the plan, if different from that of issuer named below:

CENTRAL PACIFIC BANK
401(k) RETIREMENT SAVINGS PLAN

B.
Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

CENTRAL PACIFIC FINANCIAL CORP.
220 South King Street
Honolulu, Hawaii 96813






Table of Contents
 
 
Page
 
 
Report of Independent Registered Public Accounting Firm
 
 
Financial Statements:
 
 
 
Statements of Assets Available for Benefits
 
 
Statements of Changes in Assets Available for Benefits
 
 
Notes to Financial Statements
 
 
Supplemental Schedule:
 
 
 
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
 
 
Exhibit Index
 
 
Exhibit 23 - Consent of Independent Registered Public Accounting Firm
 


2




Report of Independent Registered Public Accounting Firm


To the Plan Participants and Plan Administrator
Central Pacific Bank 401(k) Retirement Savings Plan:

Opinion on the Financial Statements

We have audited the accompanying statements of assets available for benefits of the Central Pacific Bank 401(k) Retirement Savings Plan (the Plan) as of December 31, 2017 and 2016, the related statement of changes in assets available for benefits for the years then ended, and the related notes (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the assets available for benefits of the Plan as of December 31, 2017 and 2016, and the changes in assets available for benefits for the years then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Accompanying Supplemental Information

The supplemental information in the accompany schedule of schedule H, line 4i - schedule of assets (held at end of year) as of December 31, 2017 has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.

/s/ KPMG LLP

We have not been able to determine the specific year that we began serving as the Plan’s auditor, however we are aware that we have served as the Plan’s auditor since at least 1990.

Honolulu, Hawaii
June 25, 2018


3


















CENTRAL PACIFIC BANK
401(k) RETIREMENT SAVINGS PLAN
 
Financial Statements and Supplemental Schedule
 
December 31, 2017 and 2016
 
(With Report of Independent Registered Public Accounting Firm Thereon)
































4



CENTRAL PACIFIC BANK
401(k) RETIREMENT SAVINGS PLAN
Statements of Assets Available for Benefits
December 31, 2017 and 2016
 
 
2017
 
2016
Investments:
 
 
 
 
Mutual funds, at fair value
 
$
116,182,277

 
$
98,045,344

Common stock fund, at fair value
 
1,975,309

 
2,260,739

Collective trust funds, at net asset value
 
17,284,057

 
18,861,403

Total investments
 
135,441,643

 
119,167,486

 
 
 
 
 
Notes receivable from participants
 
1,909,916

 
2,008,953

 
 
 
 
 
Assets available for benefits
 
$
137,351,559

 
$
121,176,439

 
 
 
 
 
 
 
 
 
 
See accompanying notes to financial statements.



5



CENTRAL PACIFIC BANK
401(k) RETIREMENT SAVINGS PLAN
Statements of Changes in Assets Available for Benefits
December 31, 2017 and 2016
 
 
2017
 
2016
Investment income:
 
 
 
 
Net appreciation in fair value of investments
 
$
13,946,633

 
$
5,806,908

Dividend income
 
4,754,639

 
3,835,353

Interest income
 
333,455

 
370,781

Total investment income
 
19,034,727

 
10,013,042

 
 
 
 
 
Interest income on notes receivable from participants
 
62,801

 
62,966

 
 
 
 
 
Contributions:
 
 
 
 
Participants
 
4,597,476

 
4,311,681

Employer
 
2,174,081

 
2,084,211

Rollovers
 
324,481

 
117,574

Total contributions
 
7,096,038

 
6,513,466

 
 
 
 
 
Benefits paid to participants
 
(9,963,931
)
 
(9,414,739
)
Administrative expenses, net
 
(54,515
)
 
(59,241
)
Total deductions
 
(10,018,446
)
 
(9,473,980
)
 
 
 
 
 
Net increase in assets available for benefits
 
16,175,120

 
7,115,494

 
 
 
 
 
Assets available for benefits:
 
 
 
 
Beginning of year
 
121,176,439

 
114,060,945

End of year
 
$
137,351,559

 
$
121,176,439

 
 
 
 
 
 
 
 
 
 
See accompanying notes to financial statements.


6



 CENTRAL PACIFIC BANK
401(k) RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2017 and 2016
 

(1)
Description of the Plan
The following brief description of the Central Pacific Bank 401(k) Retirement Savings Plan (the "Plan") provides only general information. Participants should refer to the plan documents for a more complete description of the Plan's provisions.
(a)
General
The Plan is a defined contribution retirement savings plan covering all employees of Central Pacific Bank and subsidiaries (the "Bank"), a wholly owned subsidiary of Central Pacific Financial Corp. (the "Company"), and certain other affiliated companies. The Plan permits employees to make participant contributions and receive base matching contributions after six months of service. Additionally, employees who have completed one year of employment and 1,000 hours of service during the year are entitled to share in any excess matching, discretionary profit sharing, and Employee Stock Ownership Plan ("ESOP") contributions. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"), as amended.
(b)
Participant Contributions
Participant contributions to the Plan are based on an elected percentage of 1% to 100% of participant compensation up to the limit set by the Internal Revenue Service ("IRS") of $18,500 and $18,000 in 2017 and 2016, respectively. Participants who have attained age 50 before the end of the plan year are eligible to make additional catch-up contributions up to the IRS limit of $6,000 in 2017 and 2016.
Effective January 4, 2016, the Plan adopted an automatic contribution arrangement ("auto-enrollment") under which newly eligible Plan participants are automatically enrolled in the Plan with a 4% pre-tax contribution rate and in a default investment (an age-appropriate Target Retirement Fund) unless the participants opt out or otherwise make a different election for their Plan contributions and investments. The 4% contribution rate allows participants to receive the maximum Company match on their contributions. As part of the initial roll out of the auto-enrollment, current Plan participants who were already eligible but not contributing, or contributing less than 4%, to the Plan were included in the automatic enrollment. Participants can change their Plan contribution and investments at any time regardless of when or what elections were previously made.
In April 2017, the Plan added an auto-increase feature which, unless opted out of, automatically increases the pre-tax contributions of certain Plan participants by 1% annually until a contribution cap of 10% is reached. Participants subject to the auto-increase each year are those who: (1) contribute less than 10%, (2) have not opted out of auto-increase, (3) have not opted out of auto-enrollment, and (4) have been a participant for more than 3 months. Certain other participants are excluded from the program, such as those who make only Roth contributions, or have elected Vanguard to manage their account for them. Participants can opt out of the program at anytime.

(c)
Employer Contributions - 401(k)
The Bank makes matching contributions to the Plan out of its own funds equal to 100% of the elective deferrals made by eligible participants, up to a limit of 4% of the participant's eligible compensation (the "Base Matching Contribution"). The Bank may also make additional matching contributions ("Excess Matching Contributions") at its discretion. The Bank did not make any Excess Matching Contributions in 2017 and 2016. There were no employer contributions receivable related to Base and Excess Matching Contributions at December 31, 2017 and 2016.
(d)
Employer Contributions - Profit Sharing
The Bank's annual profit sharing contribution is at the discretion of the Bank's board of directors. The annual contribution is limited to the maximum allowed deduction for federal income tax purposes and may not exceed 25% of the compensation earned by eligible participants during the plan year. The participant must be employed on the last day of the plan year to be eligible to share in any profit sharing contribution. The Bank did not make any profit sharing contributions in 2017 or 2016.
(e)
Employer Contributions - Employee Stock Ownership Plan
The Bank may also make ESOP contributions in the form of company stock to the Plan at the discretion of the Bank's board of directors. The annual contribution is limited to the maximum allowed deduction for federal income tax

7



purposes and may not exceed 25% of the compensation earned by eligible participants during the plan year. The Bank did not make any ESOP contributions in 2017 or 2016.
(f)
Participants' Accounts and Forfeitures
Each participant's account is credited with the participant's contribution, the employer matching contribution, and any specified discretionary contributions, and is credited or charged with an allocation of plan net earnings or losses and plan administrative expenses. Daily allocations of plan net earnings or losses are based on participants' account balances at the end of the previous day. Forfeitures of employer contributions may be: (1) reallocated to participants, (2) used to reduce employer contributions, or (3) used to offset plan expenses. The Bank uses forfeitures to offset plan expenses as allowed in the plan document. At December 31, 2017, there were $102 of forfeited non-vested employer matching contributions and $405 of forfeited non-vested profit sharing contributions to be used to offset plan expenses. At December 31, 2016, there were $215 of forfeited non-vested employer matching contributions and $6,476 of forfeited non-vested profit sharing contributions to be used to offset plan expenses. In 2017 and 2016, plan expenses were paid by the application of forfeited non-vested accounts totaling $6,792 and $22,263, respectively.
(g)
Vesting
Participant contributions and employer Base Matching Contributions plus actual earnings thereon are immediately vested. A participant's balance of his or her employer Excess Matching Contributions and discretionary profit-sharing and ESOP contributions are vested based on the participant's years of service, at a rate of 20% per year.
(h)
Notes Receivable from Participants
Participants may borrow from their account up to 50% of their vested 401(k) account balance up to a maximum of $50,000, provided that the loan is paid back with interest within 5 years (or 15 years for the purchase of a primary residence). The loans are secured by the balance in the participant's account and bear interest at prevailing rates. Participant loans may be granted for any personal reason. At December 31, 2017, notes receivable from participants bear interest at various rates ranging from 2.37% to 8.375% and mature in years beginning in 2018 through 2032. Delinquent participant loans are reclassified as distributions based upon the terms of the Plan document.
(i)
Payment of Benefits
Upon a participant's death, disability, retirement, or other termination of employment with the Bank, the participant will elect to be paid either a lump-sum amount, periodic installments over a fixed period, a direct rollover to another qualified plan or traditional individual retirement account, or a combination of these options equal to the value of his or her account. If a participant's vested interest in his or her account is $1,000 or less, the participant's vested interest may be distributed to the participant in a lump sum as soon as practicable after the participant's severance from employment. No consent of the participant is required for this involuntary cash-out to be made.
(j)
Administration
The Plan is administered by an administrative committee, which is composed of certain appointed employees of the Bank. The administrative committee has the responsibility of selecting the investment options of the trust into which participants can direct their contributions.
Vanguard Fiduciary Trust Company (the "Trustee") is the trustee of the Plan. The Trustee has the responsibilities of investing, holding, collecting, distributing, and accounting for the assets of the trust.
All expenses incurred in the administration of the Plan have been paid by the Bank to the extent not paid by the Plan. These expenses paid by the Bank totaled $89,031 and $75,396 in December 31, 2017 and 2016, respectively
(2)
Summary of Significant Accounting Policies
(a)
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis of accounting.
(b)
Use of Estimates
The preparation of the financial statements in accordance with U.S. generally accepted accounting principles requires management of the Plan to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

8



(c)
Investment Valuation and Income Recognition
The Plan's investments are stated at fair value in accordance with ASC 820, "Fair Value Measurements and Disclosures". Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 discusses acceptable valuation techniques and the related valuation inputs used. These inputs are assumptions market participants use in pricing investments. ASC 820 establishes a fair value hierarchy that prioritizes the inputs, which are summarized as follows:
Level 1 - Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities traded in active markets. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.
Level 2 - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
Level 3 - Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Plan's own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of discounted cash flow models and similar techniques that require the use of significant judgment or estimation.
The Plan's investment in the Company's stock is included in a unitized stock fund. The Central Pacific Financial Corp. Stock Fund (the "stock fund") consists of shares of Company stock, measured at fair value, and a small investment in a money market fund for liquidity purposes, and is divided into units (rather than shares of stock) for the purpose of valuing assets of the Plan and the members' accounts. A unit represents a proportionate ownership interest in investments of the stock fund. A unit value is calculated daily by dividing the total value of Company stock and the money market fund by the number of units credited to members. Common stock is valued at its year-end unit closing price (based on year-end market price). Quoted market prices in active markets are used to value the money market fund. Mutual funds are valued based on quoted market prices in active markets.
The collective trust funds invest primarily in synthetic investment contracts backed by high-credit-quality fixed income investments and traditional investments issued by insurance companies and banks. These investments are presented at the net asset value of units held by the Plan based on the fair value of the underlying assets as of December 31 in the statements of assets available for benefits. The net asset value is used as a practical expedient to estimate fair value. This practical expedient would not be used if it is determined to be probable that the fund will sell the investment for an amount different from the reported net asset value.
The following tables set forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2017 and 2016:
 
 
Total
 
Level 1
 
Level 2
 
Level 3
December 31, 2017:
 
 
 
 
 
 
 
 
Mutual funds
 
$
116,182,277

 
$
116,182,277

 
$

 
$

Common stock fund:
 
 
 
 
 
 
 
 
Common stock
 
1,956,162

 
1,956,162

 

 

Money market fund
 
19,147

 
19,147

 

 

Total common stock fund
 
1,975,309

 
1,975,309

 

 

Total Plan assets in fair value hierarchy
 
118,157,586

 
118,157,586

 

 

 
 
 
 
 
 
 
 
 
Collective trust funds, at net asset value (*)
 
17,284,057

 


 


 


Total investments
 
$
135,441,643

 


 


 




9



 
 
Total
 
Level 1
 
Level 2
 
Level 3
December 31, 2016:
 
 
 
 
 
 
 
 
Mutual funds
 
$
98,045,344

 
$
98,045,344

 
$

 
$

Common stock fund:
 
 
 
 
 
 
 
 
Common stock
 
2,237,670

 
2,237,670

 

 

Money market fund
 
23,069

 
23,069

 

 

Total common stock fund
 
2,260,739

 
2,260,739

 

 

Total Plan assets in fair value hierarchy
 
100,306,083

 
100,306,083

 

 

 
 
 
 
 
 
 
 
 
Collective trust funds, at net asset value (*)
 
18,861,403

 


 


 


Total investments
 
$
119,167,486

 


 


 


 
 
 
 
 
 
 
 
 
(*) In accordance with ASC 820-10, certain investments that are measured at net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the statements of assets available for benefits.

There were no transfers in or out of levels 1, 2, or 3 during the years ended December 31, 2017 and 2016.

Net appreciation in fair value of investments includes realized and unrealized changes in the values of investments bought, sold, and held during the year.
Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.
(d)
Notes Receivable from Participants
Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Interest income is recorded on the accrual basis. No allowance for credit losses has been recorded as of December 31, 2017 and 2016.
(e)
Payment of Benefits
Benefits are recorded when paid.
(f)
Risks and Uncertainties
The Plan may invest in various types of investment securities, including shares of Central Pacific Financial Corp. common stock held in the Central Pacific Financial Corp. Stock Fund. Investment securities are exposed to various risks, such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants' account balances and the amounts reported in the statements of assets available for benefits.
(g)
Impact of Other Recently Issued Accounting Pronouncements on Future Filings
In February 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-06, "Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965), Employee Benefit Plan Master Trust Reporting." ASU 2017-06 relates to the presentation and disclosure reporting requirements by an employee benefit plan for its interest in a master trust. The guidance will require, for each master trust in which a plan holds an interest, a plan’s interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. Additionally, the guidance removes the requirement to disclose the percentage interest in the master trust for plans with divided interests and requires that all plans disclose the dollar amount of their interest in each of those general types of investments. Lastly, the guidance requires all plans to disclose (1) their master trust’s other asset and liability balances and (2) the dollar amount of the plan’s interest in each of those balances. ASU 2017-06 is effective for the Plan's reporting period beginning on January 1, 2019 and applies retrospectively for each period the financial statements are presented. Early adoption is permissible. The Plan's management is currently evaluating the timing of adoption and the impact this guidance will have on the Plan's financial statements.

10



(3)
Related-Party Transactions
Plan investments include shares of mutual funds and shares of a collective trust fund managed by an affiliate of the Trustee. Therefore, these transactions qualify as exempt party-in-interest transactions. Administrative expenses paid to the Trustee by the Plan amounted to $54,515 and $59,241 for the years ended December 31, 2017 and 2016, respectively. Participant loans also qualify as exempt party-in-interest transactions.
Plan investments also include 65,577 and 71,218 shares of Central Pacific Financial Corp. common stock held in the Central Pacific Financial Corp. Stock Fund as of December 31, 2017 and 2016, respectively.

The Plan purchased $211,586 and $312,033 in shares of the Central Pacific Financial Corp. Stock Fund during the years ended December 31, 2017 and 2016, respectively. The Plan sold $339,603 and $158,081 in shares of the Central Pacific Financial Corp. Stock Fund during the years ended December 31, 2017 and 2016, respectively.

(4)
Plan Termination
Although it has not expressed any intent to do so, the Bank has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of plan termination, participants will become 100% vested in their employer contributions.
(5)
Tax Status
The Plan obtained its latest determination letter dated September 30, 2013, in which the IRS stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code (the "Code"). The Plan has been amended since receiving the determination letter. However, the plan administrator and the Plan's tax counsel believe that the Plan is currently designated and being operated in compliance with the applicable requirements of the Code. The Plan is exempt from income tax and therefore no provision for income taxes has been included in the Plan's financial statements.
Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2017 and 2016, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2014.

(6)
Subsequent Events
There were no material subsequent events that have occurred which would require recognition or disclosure in the financial statements.





 
 
 
 
Schedule H

CENTRAL PACIFIC BANK
401(k) RETIREMENT SAVINGS PLAN
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
December 31, 2017
 
 
 
 
 
 
(b)
(c)
 
 
Identity of issue,
Description of investment including
(e)
 
borrower, lessor,
maturity date, rate of interest,
Current
(a)
or similar party
collateral, par, or maturity value
value **
 
Mutual funds:
 
 
 
*
Vanguard PRIMECAP Fund
Mutual fund
159,493 shares
$
20,557,059

*
Vanguard Total Stock Market Index Fund
Mutual fund
216,686 shares
14,459,463

*
Vanguard Total International Stock Index Fund
Mutual fund
82,921 shares
10,118,819

*
Vanguard Target Retirement 2020 Fund
Mutual fund
307,213 shares
9,640,359

*
Vanguard Growth and Income Fund
Mutual fund
172,822 shares
8,164,111

*
Vanguard Windsor II Fund: Investor Shares
Mutual fund
210,795 shares
7,974,373

*
Vanguard Long-Term Investment Grade Fund
Mutual fund
633,562 shares
6,747,439

*
Vanguard Target Retirement 2025 Fund
Mutual fund
354,936 shares
6,566,311

*
Vanguard Target Retirement 2030 Fund
Mutual fund
156,669 shares
5,268,785

*
Hartford Schroders U.S. Small Cap Opportunities Fund
Mutual fund
176,698 shares
4,809,725

*
Vanguard Target Retirement 2015 Fund
Mutual fund
276,997 shares
4,246,370

*
Vanguard Target Retirement 2035 Fund
Mutual fund
191,433 shares
3,960,747

*
Vanguard Total Bond Market Index Fund
Mutual fund
346,020 shares
3,719,713

*
Vanguard Target Retirement Income Fund
Mutual fund
247,391 shares
3,352,149

*
Vanguard Target Retirement 2040 Fund
Mutual fund
77,220 shares
2,762,167

*
Vanguard Target Retirement 2045 Fund
Mutual fund
62,623 shares
1,409,014

*
Vanguard Target Retirement 2050 Fund
Mutual fund
35,600 shares
1,288,721

*
Vanguard Target Retirement 2055 Fund
Mutual fund
13,186 shares
517,292

*
Vanguard Target Retirement 2060 Fund
Mutual fund
12,554 shares
434,876

*
Vanguard Total International Bond Index Fund
Mutual fund
7,659 shares
166,197

*
Vanguard Federal Money Market Fund
Mutual fund
17,700 shares
17,700

*
Vanguard Target Retirement 2065 Fund
Mutual fund
41 shares
887

 
Total mutual funds, at fair value
 
 
116,182,277

 
 
 
 
 


Common stock fund:
 
 
 
*
Central Pacific Financial Corp.
Common stock
65,577 shares
1,956,162

*
Vanguard Federal Money Market Fund
Money market fund
19,147 shares
19,147

 
Total common stock fund, at fair value
 
3,850,504 units
1,975,309

 
 
 
 
 
*
Collective trust fund: Vanguard Retirement Savings Trust III
Collective trust fund
17,283,615 units
17,283,615

*
Collective trust fund: Vanguard Retirement Savings Trust
Collective trust fund
442 units
442

 
Total collective trust funds, at net asset value
 
 
17,284,057

 
 
 
 
*
Participant loans
228 notes receivable from participants, with interest rates ranging from 2.37% to 8.375%, maturing in years beginning in 2018 through 2032
1,909,916

 
Total
 
 
$
137,351,559

 
 
 
 
 
*
Party-in-interest.
**
Related cost information is not required for participant-directed investments.
 
 
 
 
 

See accompanying report of independent registered public accounting firm.

12



Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, Central Pacific Financial Corporation who administers the employee benefit plan has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
CENTRAL PACIFIC BANK 401(k) RETIREMENT SAVINGS PLAN
 
 
 
 
 
 
 
 
Date:
June 25, 2018
By:
/s/ Patricia Foley
 
 
 
Patricia Foley
 
 
 
Executive Vice President, Human Resources


13



Exhibit Index
 
Exhibit No.
Description
 
 
23


14
(Back To Top)

Section 2: EX-23 (EXHIBIT 23)

Exhibit



Exhibit 23

Consent of Independent Registered Public Accounting Firm
The Central Pacific Bank Retirement Plans Administrative Committee
Central Pacific Bank 401(k) Retirement Savings Plan:

We consent to the incorporation by reference in the Registration Statements (No. 333-141232 and No. 333-196873) on Form S-8 of Central Pacific Financial Corp. of our report dated June 25, 2018, with respect to the statements of assets available for benefits of the Central Pacific Bank 401(k) Retirement Savings Plan as of December 31, 2017 and 2016, the related statements of changes in assets available for benefits for the years then ended, and the supplemental schedule of Schedule H, line 4i - schedule of assets (held at end of year) as of December 31, 2017, which report appears in the December 31, 2017 annual report on Form 11-K of the Central Pacific Bank 401(k) Retirement Savings Plan.

/s/ KPMG LLP

Honolulu, Hawaii
June 25, 2018


(Back To Top)