Central Pacific Financial Corporation and American Savings Bank Agree to Merge in a Deal Valued at $1.3 Billion

Merger Creates Hawaii's Largest Financial Institution

Central Pacific Financial Corporation (NYSE: CPF) announced today that it has entered into a definitive agreement to acquire American Savings Bank (ASB) in an all-stock transaction valued at approximately $1.3 billion. The combined company will operate as Central Pacific Bank, a wholly-owned subsidiary of CPF.

Transaction Highlights

• CPF will acquire all of the outstanding shares of ASB for 0.496 shares of CPF common stock per ASB share.
• The transaction is expected to close in the fourth quarter of 2023, subject to regulatory approvals and other customary closing conditions.
• The combined company will have approximately $20 billion in assets, $15 billion in deposits, and $12 billion in loans.
• CPF President and CEO Paul Yonamine will serve as President and CEO of the combined company.
• ASB President and CEO Rich Wacker will become Vice Chairman of the combined company.

The merger will create Hawaii's largest financial institution, with a strong presence in all of the state's major markets. The combined company will offer a comprehensive suite of financial products and services to individuals, businesses, and non-profit organizations.

CPF and ASB have a shared commitment to providing excellent customer service and supporting the communities they serve. The combined company will continue to invest in technology and innovation to enhance the customer experience.

"This merger is a transformative event for CPF and ASB, and we are excited about the opportunities it will create for our customers, employees, and shareholders," said Paul Yonamine, CPF President and CEO. "Together, we will build a stronger, more competitive financial institution that will be well-positioned to serve the growing needs of Hawaii's economy."

"The merger with CPF is a great opportunity for ASB to continue to grow and serve our customers," said Rich Wacker, ASB President and CEO. "We are confident that the combined company will be a leader in the Hawaii financial services market."

Evercore acted as financial advisor to CPF, and Sullivan & Cromwell LLP acted as legal counsel. J.P. Morgan Securities LLC acted as financial advisor to ASB, and Davis Polk & Wardwell LLP acted as legal counsel.