...Ratings Well Situated: Fitch Ratings' affirmation of Central Pacific Financial Corp's (CPF) Long-Term IDR at `BBB¡' and the Stable Rating Outlook reflect our view that CPF's ratings are well situated and reflect a continued demonstration of a sound risk appetite and risk management framework. Fitch anticipates that despite loan growth, asset quality will remain in line with or stronger than similarly rated banks. Earnings Improving but Lag Peers: CPF's earnings quality has continually improved, driven by loan growth, expense control and other revenue initiatives. Core earnings remain relatively weaker than the peer group but compare favorably to similarly rated institutions. Fitch views the relatively lower level of core earnings as a key ratings constraint. No Benefit Realized from Rising Rates: CPF has yet to materially realize benefits from a rising rate environment, which is somewhat outside of Fitch's expectations. Since interest rates began rising at the end of 2015, CPF has experienced...
