US Market News
2 months ago
Central Pacific Financial Reports First Quarter 2026 Earnings of $20.7 MillionApril 29, 2026 6:30 AM
Business Wire
First Quarter Highlights:
Net income of $20.7 million, or $0.78 per diluted share
Return on average assets of 1.12% and return on average equity of 13.90%
Net interest margin of 3.53% and efficiency ratio of 59.87%
Total loans of $5.32 billion, increased by $31.3 million from the prior quarter
Total deposits of $6.70 billion, increased by $89.6 million from the prior quarter
Repurchased 321,396 shares of common stock at a total cost of $10.5 million during the quarter
Other Highlights:
CPF Board of Directors approved a second quarter cash dividend of $0.29 per share
Central Pacific Bank was named the U.S. Small Business Administration (SBA) Lender of the Year in Hawaii (Category II) for 2025
Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), today reported net income of $20.7 million, or $0.78 per fully diluted earnings share ("EPS"), for the first quarter of 2026. This compares to net income of $22.9 million, or EPS of $0.85, in the prior quarter and $17.8 million, or EPS of $0.65, in the first quarter last year.
"We delivered strong net income in the first quarter, marked by balance sheet growth, healthy net interest margin, and disciplined expense management,” said Arnold Martines, Chairman, President and CEO. “We are proud to be named as Hawaii SBA lender of the year for the 17th time, reflecting our ongoing commitment to supporting small businesses in our community. I want to express my sincere appreciation to our employees and customers for their continued dedication and partnership."
Earnings Highlights
Net interest income for the first quarter of 2026 totaled $61.4 million, which decreased by $0.7 million, or 1.2% from the prior quarter, and increased by $3.7 million, or 6.3%, compared to the same quarter last year. Net interest margin ("NIM") for the first quarter of 2026 was 3.53%, a decrease of 3 basis points ("bp" or "bps") from the prior quarter, and an increase of 22 bps from the same quarter last year. The sequential quarter decrease in net interest income and NIM was primarily driven by lower average yields earned on loans, down 6 bps, and investment securities, down 5 bps, partially offset by a 6 bps decrease in average rates paid on interest-bearing deposits. The sequential quarter decrease in net interest income was also due to a $60.0 million decrease in average loans and two less days in the current quarter.
The Company recorded a provision for credit losses of $2.4 million in the first quarter of 2026, compared to a provision of $2.4 million in the prior quarter, and a provision of $4.2 million in the same quarter last year. The current quarter provision for credit losses included $2.7 million for credit losses on loans offset by a $0.3 million credit for off-balance sheet credit exposures. The decrease from the year ago quarter was primarily driven by lower loan balances and changes in the economic forecast used in our current expected credit losses model.
Other operating income for the first quarter of 2026 totaled $11.6 million, compared to $14.2 million in the prior quarter, and $11.1 million in the same quarter last year. The sequential quarter decrease was primarily due to a decrease in income from bank-owned life insurance of $2.4 million and lower mortgage banking income of $0.5 million, partially offset by income related to a debit card program contract extension consideration of $0.7 million (included in other income). The decrease in income from bank-owned life insurance was largely driven by $1.4 million in death benefits recognized in the prior quarter, combined with equity market volatility and the impact on corporate-owned life insurance ("COLI") policies used to hedge deferred compensation expense.
Other operating expense for the first quarter of 2026 totaled $43.7 million, compared to $45.7 million in the prior quarter, and $42.1 million in the same quarter last year. The decrease from the prior quarter was primarily attributable to lower salaries and employee benefits of $1.4 million due to lower incentive accruals and lower deferred compensation expense, along with a reduction in legal and professional services of $0.5 million.
The efficiency ratio was 59.87% in the first quarter of 2026, compared to 59.88% in the prior quarter and 61.16% in the same quarter last year.
The effective tax rate for the first quarter of 2026 was 23.0%, compared to 18.9% in the prior quarter, and 21.2% in the same quarter last year. The increase in the Company's effective tax rate was primarily attributable to additional tax credits recognized in the previous quarter and a decrease in tax-exempt income.
Balance Sheet Highlights
As of March 31, 2026, total assets were $7.50 billion, which increased by $86.1 million, or 1.2% from $7.41 billion at December 31, 2025, and an increase of $90.1 million, or 1.22% from $7.41 billion at March 31, 2025.
Total loans, net of deferred fees and costs, were $5.32 billion at March 31, 2026, which increased by $31.3 million, or 0.6% from $5.29 billion at December 31, 2025, and decreased by $14.2 million, or 0.3% from $5.33 billion at March 31, 2025. The average yield earned on loans during the first quarter of 2026 was 4.93%, compared to 4.99% in the prior quarter and 4.88% in the same quarter last year.
Total deposits were $6.70 billion at March 31, 2026, which increased by $89.6 million or 1.4% from $6.61 billion at December 31, 2025, and increased by $103.3 million, or 1.6% from $6.60 billion at March 31, 2025. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $6.13 billion at March 31, 2026. Core deposits increased by $74.9 million, or 1.2% from $6.06 billion at December 31, 2025, and increased by $158.7 million, or 2.7% from $5.98 billion at March 31, 2025. The average rate paid on total deposits during the first quarter of 2026 was 0.90%, compared to 0.94% in the prior quarter, and 1.08% in the same quarter last year.
Asset Quality
Nonperforming assets totaled $14.5 million, or 0.19% of total assets at March 31, 2026, compared to $14.4 million, or 0.19% of total assets at December 31, 2025 and $11.1 million, or 0.15% of total assets at March 31, 2025.
Net charge-offs in the first quarter of 2026 totaled $2.4 million, compared to net charge-offs of $2.5 million in the prior quarter, and net charge-offs of $2.6 million in the same quarter last year. On an annualized basis, net charge-offs as a percentage of average loans was 0.18% in the first quarter of 2026, compared to 0.18% in the prior quarter, and 0.20% in the same quarter last year.
The allowance for credit losses on loans was 1.13% of total loans as of March 31, 2026, and remained unchanged from 1.13% at December 31, 2025 and March 31, 2025.
Capital
Total shareholders' equity at March 31, 2026 was $593.9 million, compared to $592.6 million at December 31, 2025 and $557.4 million at March 31, 2025.
During the first quarter of 2026, the Company repurchased 321,396 shares of common stock at a total cost of $10.5 million, or an average price of $32.75 per share. As of March 31, 2026, $44.5 million remained available under the Company's share repurchase authorization.
The Company's regulatory capital ratios remained strong, with a leverage ratio of 9.7%, a Common Equity Tier 1 ratio of 12.6%, a Tier 1 risk-based capital ratio of 13.5%, and a total risk-based capital ratio of 14.7% at March 31, 2026.
On April 28, 2026, the Board of Directors declared a quarterly cash dividend of $0.29 per share. The dividend will be payable on June 15, 2026, to shareholders of record as of May 29, 2026.
Conference Call
The Company's management will host a conference call today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time) to discuss its first quarter of 2026 financial results. Individuals are encouraged to listen to the live webcast of the presentation by visiting the investor relations page of the Company's website at http://ir.cpb.bank. Alternatively, investors may participate in the live call by dialing 1-800-715-9871 and entering the conference ID: 6299769.
A replay of the call will be available through May 29, 2026, by dialing 1-800-770-2030 and entering the same conference ID: 6299769, and on the Company's website. Information which may be discussed in the conference call is provided in an earnings supplement presentation on the Company's website at http://ir.cpb.bank.
About Central Pacific Financial Corp.
Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $7.50 billion in assets as of March 31, 2026. Its primary subsidiary, Central Pacific Bank, operates 27 branches and 55 ATMs in the State of Hawaii. Central Pacific Financial Corp. is listed on the New York Stock Exchange under the symbol "CPF." For additional information, please visit: cpb.bank.
Equal Housing Lender
Member FDIC
NYSE Listed: CPF
Forward-Looking Statements
This document may contain forward-looking statements ("FLS") concerning, among other things: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, payment or nonpayment of dividends, net interest income, capital position, credit losses, net interest margin, or other financial items. These statements may also include the plans, objectives, and expectations of Central Pacific Financial Corp. (the "Company") or its management or Board of Directors, including those relating to business plans, use of capital resources, products or services, and regulatory developments or actions. In addition, such statements may address anticipated economic performance, the expected impact of business initiatives, and the assumptions underlying any of the foregoing.
Words such as "believe," "plan," "anticipate," "aim," "seek," "expect," "intend," "forecast," "hope," "target," "continue," "remain," "estimate," "will," "should," "may," and other similar expressions are intended to identify FLS, although such terminology is not the exclusive means of doing so.
While we believe that our FLS and their underlying assumptions are reasonably based, such statements are inherently subject to risks and uncertainties that may cause actual results to differ materially from expectations. Factors that may lead to such differences, include, but are not limited to: the persistence or resurgence of inflationary pressures in the United States and our market areas, and their effect on market interest rates, economic conditions, and credit quality; the impact of the current U.S. administration’s economic policies, including potential international tariffs, geopolitical instability, trade tensions, and other cost-cutting or fiscal initiatives; the adverse effects of bank failures on customer confidence, deposit behavior, liquidity, and regulatory responses; the effects of pandemics, epidemics, and other public health emergencies, including their impact on Hawaii's tourism and construction sectors and on our borrowers, customers, vendors and employees; supply chain disruptions, labor contract disputes, strikes; adverse trends in the real estate or construction industries, including rising inventory levels or declining property values; deterioration in borrowers' financial performance leading to increased loan delinquencies, asset quality issues, or loan losses; the impact of local, national, and international economic conditions and natural disasters (such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, floods, or earthquakes) on our markets and major industries within Hawaii; weakness in domestic economic conditions, including instability in the financial industry, deterioration in real estate markets, and declines in consumer or business confidence; revisions to estimates of reserve requirements under applicable regulatory and accounting standards; the impact of legislative and regulatory developments, including the Dodd-Frank Act, changing capital and consumer protection rules, and new regulations affecting our operations and competitiveness; the costs and effects of legal and regulatory proceedings, including actual or threatened litigation and the efforts of governmental and regulatory exams and orders, as well as the costs of ongoing or potential compliance efforts; the effect of accounting standard changes adopted by regulatory agencies, the PCAOB, or the FASB, and the cost and resources associated with implementation; changes in trade, monetary, or fiscal policy, including actions by the Federal Reserve; market volatility and monetary fluctuations, including the transition away from the LIBOR Index; declines in our market capitalization or the price of our common stock; the effects and cost of acquisitions, dispositions, or strategic transactions we may make or evaluate; political instability, acts of war or terrorism, or other geopolitical conflicts; shifts in consumer spending, borrowing, and savings behaviors; technological changes and developments; cybersecurity incidents, data privacy breaches, or fraud involving us or third-party vendors; deficiencies in internal control over financial reporting or disclosure controls and procedures, and our ability to remediate them; increased competition among financial institutions and other financial service providers; our ability to achieve efficiency ratio improvement goals; our ability to attract and retain key personnel; changes in our personnel, organization, compensation and benefit plans; and related reputational or regulatory exposures; and risks related to the United States fiscal debt, deficit, and budget uncertainties.
For further information on factors that could cause actual results to differ materially from the expectations or projections expressed in our FLS, please refer to the Company's filings with the U.S. Securities and Exchange Commission, including the Company's most recent Form 10-K, particularly, the discussion of "Risk Factors" set forth therein.
We urge investors to consider all of these factors carefully in evaluating the FLS contained in this document. FLS speak only as of the date on which such statements are made. We undertake no obligation to update any FLS to reflect events or circumstances occurring after the date on which such statements are made, or to reflect the occurrence of unanticipated events, except as required by law.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
TABLE 1
Three Months Ended
(Dollars in thousands,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
except for per share amounts)
2026
2025
2025
2025
2025
CONDENSED INCOME STATEMENT
Net interest income
$
61,358
$
62,087
$
61,301
$
59,796
$
57,699
Provision for credit losses
2,353
2,396
4,157
4,987
4,172
Total other operating income
11,574
14,201
13,507
13,013
11,096
Total other operating expense
43,666
45,680
47,009
43,946
42,072
Income tax expense
6,188
5,337
5,068
5,605
4,791
Net income
20,725
22,875
18,574
18,271
17,760
Basic earnings per share
$
0.79
$
0.86
$
0.69
$
0.68
$
0.66
Diluted earnings per share
0.78
0.85
0.69
0.67
0.65
Dividends declared per share
0.29
0.28
0.27
0.27
0.27
PERFORMANCE RATIOS
Return on average assets (ROA) [1]
1.12
%
1.25
%
1.01
%
1.00
%
0.96
%
Return on average equity (ROE) [1]
13.90
15.41
12.89
13.04
13.04
Average equity to average assets
8.07
8.12
7.85
7.66
7.37
Efficiency ratio [2]
59.87
59.88
62.84
60.36
61.16
Net interest margin (NIM) [1]
3.53
3.56
3.49
3.44
3.31
Dividend payout ratio [3]
37.18
32.94
39.13
40.30
41.54
SELECTED AVERAGE BALANCES
Average loans, including loans held for sale
$
5,268,482
$
5,328,499
$
5,332,656
$
5,307,946
$
5,311,610
Average interest-earning assets
7,022,759
6,964,796
7,011,753
6,985,097
7,054,488
Average assets
7,396,084
7,310,098
7,341,281
7,314,144
7,388,783
Average deposits
6,592,361
6,499,119
6,509,692
6,503,463
6,561,100
Average interest-bearing liabilities
4,846,057
4,757,686
4,807,225
4,807,669
4,914,398
Average equity
596,524
593,750
576,531
560,248
544,888
[1] ROA and ROE are annualized based on a 30/360 day convention. Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual).
[2] Efficiency ratio is defined as total other operating expense divided by total revenue (net interest income and total other operating income).
[3] Dividend payout ratio is defined as dividends declared per share divided by diluted earnings per share.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
TABLE 1 (CONTINUED)
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
2026
2025
2025
2025
2025
REGULATORY CAPITAL RATIOS
Central Pacific Financial Corp.
Leverage ratio
9.7
%
9.8
%
9.7
%
9.6
%
9.4
%
Common equity tier 1 capital ratio
12.6
12.7
12.6
12.6
12.4
Tier 1 risk-based capital ratio
13.5
13.6
13.5
13.5
13.4
Total risk-based capital ratio
14.7
14.8
15.7
15.8
15.6
Central Pacific Bank
Leverage ratio
9.6
9.7
10.2
10.1
9.8
Common equity tier 1 capital ratio
13.4
13.5
14.1
14.1
14.0
Tier 1 risk-based capital ratio
13.4
13.5
14.1
14.1
14.0
Total risk-based capital ratio
14.6
14.7
15.3
15.3
15.2
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(dollars in thousands, except for per share amounts)
2026
2025
2025
2025
2025
BALANCE SHEET
Total loans, net of deferred fees and costs
$
5,320,349
$
5,289,096
$
5,367,202
$
5,289,809
$
5,334,547
Total assets
7,495,363
7,409,241
7,421,478
7,369,567
7,405,239
Total deposits
6,699,354
6,609,764
6,577,684
6,544,989
6,596,048
Long-term debt
76,547
76,547
131,527
131,466
131,405
Total equity
593,879
592,581
588,066
568,874
557,376
Tangible common equity to tangible assets [4]
7.92
%
8.00
%
7.92
%
7.72
%
7.53
%
ASSET QUALITY
Allowance for credit losses (ACL)
$
59,933
$
59,621
$
60,393
$
59,611
$
60,469
Nonaccrual loans
14,524
14,386
14,319
14,895
11,085
Non-performing assets (NPA)
14,524
14,386
14,319
14,895
11,085
Ratio of ACL to total loans
1.13
%
1.13
%
1.13
%
1.13
%
1.13
%
Ratio of NPA to total assets
0.19
%
0.19
%
0.19
%
0.20
%
0.15
%
PER SHARE OF COMMON STOCK OUTSTANDING
Book value per common share
$
22.74
$
22.47
$
21.86
$
21.08
$
20.60
Closing market price per common share
31.96
31.16
30.34
28.03
27.04
[4] The tangible common equity ratio is a non-GAAP measure which should be read in conjunction with the Company’s GAAP financial information. Comparison of our ratio with those of other companies may not be possible because other companies may calculate the ratio differently. See Reconciliation of Non-GAAP Financial Measures in Table 9.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
TABLE 2
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(Dollars in thousands, except share data)
2026
2025
2025
2025
2025
ASSETS
Cash and due from financial institutions
$
88,880
$
88,200
$
102,859
$
110,935
$
106,670
Interest-bearing deposits in other financial institutions
317,716
290,453
207,034
206,035
170,226
Investment securities:
Debt securities available-for-sale, at fair value
779,156
748,212
758,683
765,213
780,379
Debt securities held-to-maturity, at amortized cost; fair value of: $486,018 at March 31, 2026, $495,845 at December 31, 2025, $500,859 at September 30, 2025, $499,833 at June 30, 2025, and $511,717 at March 31, 2025
554,548
562,391
570,886
580,476
589,688
Total investment securities
1,333,704
1,310,603
1,329,569
1,345,689
1,370,067
Loans held for sale
2,536
1,084
1,557
—
2,788
Loans, net of deferred fees and costs
5,320,349
5,289,096
5,367,202
5,289,809
5,334,547
Less: allowance for credit losses
(59,933
)
(59,621
)
(60,393
)
(59,611
)
(60,469
)
Loans, net of allowance for credit losses
5,260,416
5,229,475
5,306,809
5,230,198
5,274,078
Premises and equipment, net
99,942
100,620
100,992
103,657
103,490
Accrued interest receivable
24,320
23,559
25,232
23,518
24,743
Investment in unconsolidated entities
59,548
61,349
52,987
49,370
50,885
Mortgage servicing rights
8,520
8,672
8,459
8,436
8,418
Bank-owned life insurance
181,298
180,717
179,743
177,639
176,846
Federal Home Loan Bank of Des Moines ("FHLB") and Federal Reserve Bank ("FRB") stock
24,682
25,836
25,215
24,816
24,163
Right-of-use lease assets
24,320
24,822
25,570
30,693
29,829
Other assets
69,481
63,851
55,452
58,581
63,036
Total assets
$
7,495,363
$
7,409,241
$
7,421,478
$
7,369,567
$
7,405,239
LIABILITIES
Deposits:
Noninterest-bearing demand
$
1,897,593
$
1,891,198
$
1,903,614
$
1,938,226
$
1,854,241
Interest-bearing demand
1,428,323
1,388,107
1,340,725
1,336,620
1,368,519
Savings and money market
2,378,834
2,346,522
2,292,881
2,242,122
2,316,416
Time
994,604
983,937
1,040,464
1,028,021
1,056,872
Total deposits
6,699,354
6,609,764
6,577,684
6,544,989
6,596,048
Long-term debt, net of unamortized debt issuance costs
76,547
76,547
131,527
131,466
131,405
Lease liabilities
25,073
25,549
26,288
31,981
31,057
Accrued interest payable
6,433
7,068
8,604
8,755
8,757
Other liabilities
94,077
97,732
89,309
83,502
80,596
Total liabilities
6,901,484
6,816,660
6,833,412
6,800,693
6,847,863
EQUITY
Shareholders' equity:
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025
—
—
—
—
—
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 26,115,229 at March 31, 2026, 26,374,967 at December 31, 2025, 26,903,512 at September 30, 2025, 26,981,436 at June 30, 2025, and 27,061,589 at March 31, 2025
370,633
381,158
397,479
399,823
402,400
Additional paid-in capital
106,501
107,308
106,675
106,033
104,849
Retained earnings
204,494
191,383
175,968
164,676
153,692
Accumulated other comprehensive loss
(87,749
)
(87,268
)
(92,056
)
(101,658
)
(103,565
)
Total equity
593,879
592,581
588,066
568,874
557,376
Total liabilities and equity
$
7,495,363
$
7,409,241
$
7,421,478
$
7,369,567
$
7,405,239
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
TABLE 3
Three Months Ended
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(Dollars in thousands, except per share data)
2026
2025
2025
2025
2025
Interest income:
Interest and fees on loans
$
64,323
$
66,897
$
67,222
$
65,668
$
64,119
Interest and dividends on investment securities:
Taxable investment securities
9,210
9,401
9,776
9,871
9,801
Tax-exempt investment securities
682
696
709
709
708
Interest on deposits in other financial institutions
2,500
1,501
1,857
1,484
2,254
Dividend income on FHLB and FRB stock
381
382
395
388
324
Total interest income
77,096
78,877
79,959
78,120
77,206
Interest expense:
Interest on deposits:
Interest-bearing demand
522
441
490
443
452
Savings and money market
7,502
8,004
8,898
8,414
8,862
Time
6,665
6,999
7,410
7,616
8,107
Interest on long-term debt
1,049
1,346
1,860
1,851
2,086
Total interest expense
15,738
16,790
18,658
18,324
19,507
Net interest income
61,358
62,087
61,301
59,796
57,699
Provision for credit losses
2,353
2,396
4,157
4,987
4,172
Net interest income after provision for credit losses
59,005
59,691
57,144
54,809
53,527
Other operating income:
Mortgage banking income
649
1,186
958
744
597
Service charges on deposit accounts
2,299
2,423
2,330
2,124
2,147
Other service charges and fees
5,789
5,570
6,472
5,957
5,766
Income from fiduciary activities
1,423
1,529
1,547
1,501
1,624
Income from bank-owned life insurance
399
2,816
1,879
2,260
497
Net loss on sales of investment securities
—
—
(30
)
—
—
Other
1,015
677
351
427
465
Total other operating income
11,574
14,201
13,507
13,013
11,096
Other operating expense:
Salaries and employee benefits
23,085
24,490
24,749
22,696
21,819
Net occupancy
4,322
4,432
4,598
4,253
4,392
Computer software
5,045
5,442
5,151
5,320
4,714
Legal and professional services
2,384
2,878
2,669
2,873
2,798
Equipment
807
825
867
950
1,082
Advertising
997
943
730
832
887
Communication
823
495
791
901
1,033
Other
6,203
6,175
7,454
6,121
5,347
Total other operating expense
43,666
45,680
47,009
43,946
42,072
Income before income taxes
26,913
28,212
23,642
23,876
22,551
Income tax expense
6,188
5,337
5,068
5,605
4,791
Net income
$
20,725
$
22,875
$
18,574
$
18,271
$
17,760
Per common share data:
Basic earnings per share
$
0.79
$
0.86
$
0.69
$
0.68
$
0.66
Diluted earnings per share
0.78
0.85
0.69
0.67
0.65
Cash dividends declared
0.29
0.28
0.27
0.27
0.27
Basic weighted average shares outstanding
26,277,749
26,687,551
26,968,163
26,988,169
27,087,154
Diluted weighted average shares outstanding
26,414,880
26,827,551
27,083,280
27,069,677
27,213,406
Note: Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)
(Unaudited)
TABLE 4
Three Months Ended
Three Months Ended
Three Months Ended
March 31, 2026
December 31, 2025
March 31, 2025
Average
Average
Average
Average
Average
Average
(Dollars in thousands)
Balance
Yield/Rate
Interest
Balance
Yield/Rate
Interest
Balance
Yield/Rate
Interest
ASSETS
Interest-earning assets:
Interest-bearing deposits in other financial institutions
$
274,885
3.69
%
$
2,500
$
151,826
3.92
%
$
1,501
$
206,108
4.44
%
$
2,254
Investment securities:
Taxable [1]
1,318,722
2.80
9,210
1,322,341
2.84
9,401
1,376,687
2.85
9,801
Tax-exempt [1] [3]
135,519
2.55
863
136,530
2.58
881
139,589
2.57
896
Total investment securities
1,454,241
2.77
10,073
1,458,871
2.82
10,282
1,516,276
2.82
10,697
Loans, including loans held for sale [2]
5,268,482
4.93
64,323
5,328,499
4.99
66,897
5,311,610
4.88
64,119
FHLB and FRB stock
25,151
6.07
381
25,600
5.96
382
20,494
6.32
324
Total interest-earning assets
7,022,759
4.44
77,277
6,964,796
4.52
79,062
7,054,488
4.43
77,394
Noninterest-earning assets
373,325
345,302
334,295
Total assets
$
7,396,084
$
7,310,098
$
7,388,783
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits
$
1,407,877
0.15
%
$
522
$
1,358,436
0.13
%
$
441
$
1,355,360
0.14
%
$
452
Savings and money market deposits
2,371,217
1.28
7,502
2,297,826
1.38
8,004
2,345,445
1.53
8,862
Time deposits up to $250,000
432,745
2.18
2,331
433,911
2.21
2,422
457,473
2.51
2,832
Time deposits over $250,000
557,671
3.15
4,334
571,240
3.18
4,577
603,919
3.54
5,275
Total interest-bearing deposits
4,769,510
1.25
14,689
4,661,413
1.31
15,444
4,762,197
1.48
17,421
Long-term debt
76,547
5.56
1,049
96,273
5.55
1,346
152,201
5.56
2,086
Total interest-bearing liabilities
4,846,057
1.32
15,738
4,757,686
1.40
16,790
4,914,398
1.61
19,507
Noninterest-bearing deposits
1,822,851
1,837,706
1,798,903
Other liabilities
130,652
120,956
130,594
Total liabilities
6,799,560
6,716,348
6,843,895
Total equity
596,524
593,750
544,888
Total liabilities and equity
$
7,396,084
$
7,310,098
$
7,388,783
Net interest income (taxable-equivalent)
61,539
62,272
57,887
Taxable-equivalent adjustment [3]
(181
)
(185
)
(188
)
Net interest income (GAAP)
$
61,358
$
62,087
$
57,699
Interest rate spread
3.12
%
3.12
%
2.82
%
Net interest margin (taxable-equivalent) [4]
3.53
%
3.56
%
3.31
%
[1] At amortized cost.
[2] Includes nonaccrual loans.
[3] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.
[4] Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual).
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Loans
(Unaudited)
TABLE 5
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(Dollars in thousands)
2026
2025
2025
2025
2025
Commercial and industrial
$
590,810
$
594,592
$
608,814
$
608,130
$
634,620
Construction
204,368
213,191
217,610
190,008
160,092
Residential mortgage
1,806,965
1,839,191
1,839,535
1,851,690
1,870,239
Home equity
582,380
600,082
610,889
627,834
655,237
Commercial mortgage
1,703,760
1,594,433
1,613,187
1,540,523
1,552,439
Consumer
432,066
447,607
477,167
471,624
461,920
Total loans, net of deferred fees and costs
5,320,349
5,289,096
5,367,202
5,289,809
5,334,547
Less: Allowance for credit losses
(59,933
)
(59,621
)
(60,393
)
(59,611
)
(60,469
)
Loans, net of allowance for credit losses
$
5,260,416
$
5,229,475
$
5,306,809
$
5,230,198
$
5,274,078
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Deposits
(Unaudited)
TABLE 6
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(Dollars in thousands)
2026
2025
2025
2025
2025
Noninterest-bearing demand
$
1,897,593
$
1,891,198
$
1,903,614
$
1,938,226
$
1,854,241
Interest-bearing demand
1,428,323
1,388,107
1,340,725
1,336,620
1,368,519
Savings and money market
2,378,834
2,346,522
2,292,881
2,242,122
2,316,416
Time deposits up to $250,000
429,564
433,629
444,005
439,687
436,437
Core deposits
6,134,314
6,059,456
5,981,225
5,956,655
5,975,613
Other time deposits greater than $250,000
431,013
412,188
458,339
459,945
475,861
Government time deposits
134,027
138,120
138,120
128,389
144,574
Total time deposits greater than $250,000
565,040
550,308
596,459
588,334
620,435
Total deposits
$
6,699,354
$
6,609,764
$
6,577,684
$
6,544,989
$
6,596,048
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Nonperforming Assets and Accruing Loans 90+ Days Past Due
(Unaudited)
TABLE 7
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(Dollars in thousands)
2026
2025
2025
2025
2025
Nonaccrual loans:
Commercial and industrial
$
490
$
591
$
357
$
110
$
531
Real estate:
Residential mortgage
10,518
10,572
11,413
12,327
9,199
Home equity
2,986
2,608
2,119
1,889
746
Consumer
530
615
430
569
609
Total nonaccrual loans
14,524
14,386
14,319
14,895
11,085
Other real estate owned ("OREO")
—
—
—
—
—
Total nonperforming assets ("NPAs")
14,524
14,386
14,319
14,895
11,085
Accruing loans 90+ days past due:
Real estate:
Residential mortgage
—
664
1,159
1,625
—
Home equity
—
485
—
21
87
Consumer
290
403
349
418
670
Total accruing loans 90+ days past due
290
1,552
1,508
2,064
757
Total NPAs and accruing loans 90+ days past due
$
14,814
$
15,938
$
15,827
$
16,959
$
11,842
Ratio of total nonaccrual loans to total loans
0.27
%
0.27
%
0.27
%
0.28
%
0.21
%
Ratio of total NPAs to total assets
0.19
0.19
0.19
0.20
0.15
Ratio of total NPAs to total loans and OREO
0.27
0.27
0.27
0.28
0.21
Ratio of total NPAs and accruing loans 90+ days past due to total loans and OREO
0.28
0.30
0.29
0.32
0.22
Quarter-to-quarter changes in NPAs:
Balance at beginning of quarter
$
14,386
$
14,319
$
14,895
$
11,085
$
11,018
Additions
2,094
2,549
838
5,879
2,397
Reductions:
Payments
(284
)
(397
)
(286
)
(585
)
(614
)
Return to accrual status
(883
)
(1,098
)
(821
)
(861
)
(558
)
Charge-offs, valuation adjustments and other reductions
(789
)
(987
)
(307
)
(623
)
(1,158
)
Total reductions
(1,956
)
(2,482
)
(1,414
)
(2,069
)
(2,330
)
Balance at end of quarter
$
14,524
$
14,386
$
14,319
$
14,895
$
11,085
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Allowance for Credit Losses on Loans
(Unaudited)
TABLE 8
Three Months Ended
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
(Dollars in thousands)
2026
2025
2025
2025
2025
Allowance for credit losses ("ACL") on loans:
Balance at beginning of period
$
59,621
$
60,393
$
59,611
$
60,469
$
59,182
Provision for credit losses on loans
2,724
1,685
3,440
3,810
3,905
Charge-offs:
Commercial and industrial
(1,056
)
(678
)
(1,071
)
(2,858
)
(580
)
Real estate:
Consumer
(2,301
)
(2,831
)
(2,824
)
(2,864
)
(2,977
)
Total charge-offs
(3,357
)
(3,509
)
(3,895
)
(5,722
)
(3,557
)
Recoveries:
Commercial and industrial
175
266
204
195
171
Real estate:
Construction
2
1
—
3
—
Residential mortgage
8
9
8
7
10
Home equity
6
9
9
9
3
Consumer
754
767
1,016
840
755
Total recoveries
945
1,052
1,237
1,054
939
Net charge-offs
(2,412
)
(2,457
)
(2,658
)
(4,668
)
(2,618
)
Balance at end of period
$
59,933
$
59,621
$
60,393
$
59,611
$
60,469
Average loans, net of deferred fees and costs
$
5,268,482
$
5,328,499
$
5,332,656
$
5,307,946
$
5,311,610
Ratio of annualized net charge-offs to average loans
0.18
%
0.18
%
0.20
%
0.35
%
0.20
%
Ratio of ACL to total loans
1.13
1.13
1.13
1.13
1.13
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
TABLE 9
To supplement its consolidated financial information, the Company utilizes certain non-GAAP financial measures. These measures are not intended to be considered in isolation or as a substitute for comparable GAAP results. The Company believes these non-GAAP financial measures provide meaningful insight to investors and other stakeholders in understanding its financial performance and position, by excluding certain transactions that may be non-recurring, non-operational, or not indicative of ongoing results. The Company believes that these non-GAAP measures offer a useful perspective for evaluating performance trends over time and are intended to support period-to-period comparisons. The Company believes they are valuable tools for both investors and management in assessing historical results and forecasting future performance. Non-GAAP financial measures may not be comparable to similarly entitled measures reported by other companies. The results for the three months ended March 31, 2026 were not materially impacted by items outside of the normal course of business.
The Company believes that pre-provision net revenue ("PPNR"), a non-GAAP financial measure, is useful as a tool to help evaluate the ability to provide for credit costs through operations. The following table presents a recalculation of the PPNR for the periods presented.
Three Months Ended
(dollars in thousands)
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
GAAP net income
$
20,725
$
22,875
$
18,574
$
18,271
$
17,760
Add: Income tax expense
6,188
5,337
5,068
5,605
4,791
GAAP pre-tax income
26,913
28,212
23,642
23,876
22,551
Add: Provision for credit losses
2,353
2,396
4,157
4,987
4,172
Pre-provision net revenue ("PPNR") (non-GAAP)
29,266
30,608
27,799
28,863
26,723
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
TABLE 9 (CONTINUED)
A key measure of operating efficiency monitored by the Company is the efficiency ratio, which is derived from GAAP-based amounts. It is calculated by dividing total other operating expenses by total pre-provision revenue (defined as net interest income plus total other operating income). The Company believes that the efficiency ratio, a non-GAAP financial measure, provides a useful supplemental metric that enhances understanding of its business performance and operating efficiency. However, this ratio should not be viewed as a substitute for GAAP results and may not be comparable to similarly titled measures reported by other companies. The following table presents the Company's efficiency ratio for the periods indicated:
Three Months Ended
(dollars in thousands)
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Total other operating expense
$
43,666
$
45,680
$
47,009
$
43,946
$
42,072
Net interest income
$
61,358
$
62,087
$
61,301
$
59,796
$
57,699
Total other operating income
11,574
14,201
13,507
13,013
11,096
Total revenue
$
72,932
$
76,288
$
74,808
$
72,809
$
68,795
Efficiency ratio (non-GAAP)
59.87
%
59.88
%
62.84
%
60.36
%
61.16
%
The table below presents the Tangible Common Equity ("TCE") ratio, a non-GAAP financial measure, as of the dates indicated. The TCE ratio is calculated by dividing tangible common equity by tangible assets.
(dollars in thousands)
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Total equity
$
593,879
$
592,581
$
588,066
$
568,874
$
557,376
Less: Intangible assets
—
—
—
—
—
TCE
$
593,879
$
592,581
$
588,066
$
568,874
$
557,376
Total assets
$
7,495,363
$
7,409,241
$
7,421,478
$
7,369,567
$
7,405,239
Less: Intangible assets
—
—
—
—
—
Tangible assets
$
7,495,363
$
7,409,241
$
7,421,478
$
7,369,567
$
7,405,239
TCE ratio (non-GAAP)
7.92
%
8.00
%
7.92
%
7.72
%
7.53
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260429601083/en/
Investor Contact:
Jayrald Rabago
Senior Strategic Financial Officer
(808) 544-3556
jayrald.rabago@cpb.bank
Media Contact:
Tim Sakahara
Corporate Communications Manager
(808) 544-5125
tim.sakahara@cpb.bank
Original: Central Pacific Financial Reports First Quarter 2026 Earnings of $20.7 Million
US Market News
5 months ago
Central Pacific Financial Reports Fourth Quarter and Full Year 2025 EarningsJanuary 28, 2026 10:30 AM
Business Wire
Fourth Quarter and Full Year 2025 Highlights:
Net income of $22.9 million, or $0.85 per diluted share for the quarter; net income of $77.5 million, or $2.86 per diluted share for the year.
Return on average assets (ROA) of 1.25% for the quarter; ROA of 1.06% for the year.
Return on average equity (ROE) of 15.41% for the quarter; ROE of 13.62% for the year.
Efficiency ratio improved to 59.88%, compared to 62.84% in the prior quarter; 61.05% for the year.
Net interest margin (NIM) of 3.56%, up 7 bps from the prior quarter; NIM of 3.45% for the year.
Repurchased 529,613 shares of common stock at a total cost of $16.3 million during the quarter; 788,261 shares at $23.3 million during the year.
Other Highlights:
Board of Directors authorized a new share repurchase program of $55 million for 2026.
Board of Directors increased the quarterly cash dividend by 3.6% to $0.29 per share.
Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), today reported net income of $22.9 million, or $0.85 per fully diluted share ("EPS"), for the fourth quarter of 2025. This compares to net income of $18.6 million, or EPS of $0.69, in the prior quarter and $11.3 million, or EPS of $0.42, in the same quarter last year. For the 2025 year, net income and EPS was $77.5 million and $2.86, respectively, compared to net income and EPS of $53.4 million and $1.97, respectively, in 2024.
"Central Pacific Financial achieved strong fourth-quarter and 2025 year-end results thanks to strong balance sheet management and meaningful progress on our strategic and business priorities," said Arnold Martines, Chairman, President and CEO. "In the fourth-quarter, our profitability strengthened further, underscoring the success of our disciplined approach. Looking ahead, we remain focused on supporting our customers and the communities we serve, while continuing to create long-term value for our shareholders."
Earnings Highlights
Net interest income for the fourth quarter of 2025 totaled $62.1 million, which increased by $0.8 million, or 1.3% from the prior quarter, and increased by $6.3 million, or 11.3%, compared to the same quarter last year. Net interest margin ("NIM") for the fourth quarter of 2025 was 3.56%, an increase of 7 basis points ("bp" or "bps") from the prior quarter, and an increase of 39 bps from the same quarter last year. The sequential quarter increase in net interest income and NIM was primarily driven by a 12 bps decrease in average rates paid on interest-bearing deposits, which outpaced the declines in average yields earned on loans, down 2 bps, and investment securities, down 5 bps.
The Company recorded a provision for credit losses of $2.4 million in the fourth quarter of 2025, compared to a provision of $4.2 million in the prior quarter, and a provision of $0.8 million in the same quarter last year. The current quarter provision for credit losses included $1.7 million for credit losses on loans and $0.7 million for off-balance sheet exposures. The decrease from prior quarter was primarily driven by a decline in loan balances and improvements in the macro-economic forecast used in our estimate of the allowance for credit losses.
Other operating income for the fourth quarter of 2025 totaled $14.2 million, compared to $13.5 million in the prior quarter, and $2.6 million in the same quarter last year. The sequential quarter increase was largely driven by a $0.9 million increase in income from bank-owned life insurance, primarily related to a death benefit recognized in the fourth quarter of 2025. The increase from the year-ago was largely attributable to a $9.9 million pre-tax loss related to an investment portfolio repositioning in the fourth quarter of 2024.
Other operating expense for the fourth quarter of 2025 totaled $45.7 million, compared to $47.0 million in the prior quarter, and $44.2 million in the same quarter last year. The sequential quarter decrease was primarily attributable to a one-time expense of $1.5 million related to the operations center consolidation in the third quarter of 2025. The increase from the year-ago quarter was primarily due to higher salaries and employee benefits of $2.8 million, partially offset by an impairment charge on intangible assets of $1.4 million (included in other) during the fourth quarter of 2024.
The efficiency ratio was 59.88% in the fourth quarter of 2025, compared to 62.84% in the prior quarter and 75.65% in the same quarter last year. The prior quarter was impacted by $1.5 million in expenses related to the operations center consolidation in the third quarter of 2025. The year-ago quarter was impacted by a $9.9 million pre-tax loss related to an investment portfolio repositioning in the fourth quarter of 2024. Excluding these items, the adjusted efficiency ratio (non-GAAP) was 60.81% and 64.65% for the third quarter of 2025 and fourth quarter of 2024, respectively. The improvement in the adjusted efficiency ratio was attributable to higher net interest income and other operating income, combined with lower other operating expense.
The effective tax rate for the fourth quarter of 2025 was 18.9%, compared to 21.4% in the prior quarter, and 15.4% in the same quarter last year. The sequential quarter decrease in the Company's effective tax rate was primarily attributable to additional tax credits and an increase in tax-exempt income. The increase in the effective tax rate compared with the year-ago quarter was primarily driven by higher pre-tax income in the current quarter, largely resulting from the loss on investment securities repositioning in the fourth quarter of 2024, as well as provision adjustments recorded in the year-ago quarter.
Balance Sheet Highlights
As of December 31, 2025, total assets were $7.41 billion, which decreased by $12.2 million, or 0.2% from $7.42 billion at September 30, 2025, and a decrease of $62.9 million, or 0.8% from $7.47 billion at December 31, 2024.
Total loans, net of deferred fees and costs, were $5.29 billion at December 31, 2025, which decreased by $78.1 million, or 1.5% from $5.37 billion at September 30, 2025, and decreased by $43.8 million, or 0.8% from $5.33 billion at December 31, 2024. The average yield earned on loans during the fourth quarter of 2025 was 4.99%, compared to 5.01% in the prior quarter and 4.91% in the same quarter last year.
Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $6.06 billion at December 31, 2025. Core deposits increased by $78.2 million, or 1.3% from $5.98 billion at September 30, 2025, and increased by $19.3 million, or 0.3% from $6.04 billion at December 31, 2024. Total deposits were $6.61 billion at December 31, 2025, which increased by $32.1 million or 0.5% from $6.58 billion at September 30, 2025, and decreased by $34.2 million, or 0.5% from $6.64 billion at December 31, 2024. The average rate paid on total deposits during the fourth quarter of 2025 was 0.94%, compared to 1.02% in the prior quarter, and 1.21% in the same quarter last year.
Asset Quality
Nonperforming assets totaled $14.4 million, or 0.19% of total assets at December 31, 2025, compared to $14.3 million, or 0.19% of total assets at September 30, 2025 and $11.0 million, or 0.15% of total assets at December 31, 2024.
Net charge-offs in the fourth quarter of 2025 totaled $2.5 million, compared to net charge-offs of $2.7 million in the prior quarter, and net charge-offs of $3.8 million in the same quarter last year. On an annualized basis, net charge-offs as a percentage of average loans improved to 0.18% in the fourth quarter of 2025, compared to 0.20% in the prior quarter, and 0.29% in the same quarter last year.
The allowance for credit losses on loans was 1.13% of total loans as of December 31, 2025, compared to 1.13% at September 30, 2025, and 1.11% at December 31, 2024.
Capital
Total shareholders' equity at December 31, 2025 was $592.6 million, compared to $588.1 million at September 30, 2025 and $538.4 million at December 31, 2024.
The Company's regulatory capital ratios remained strong, with leverage ratio of 9.8%, a Common Equity Tier 1 ratio of 12.7%, a Tier 1 risk-based capital ratio of 13.6%, and a total risk-based capital ratio of 14.8% at December 31, 2025.
The Company redeemed in full at par its $55.0 million of 4.75% fixed-to-floating rate subordinated notes due 2030 on its November 1, 2025 call date.
During the fourth quarter of 2025, the Company repurchased 529,613 shares of common stock at a total cost of $16.3 million, representing an average price of $30.82 per share. For the year ended December 31, 2025, the Company repurchased 788,261 shares at a total cost of $23.3 million, or an average price of $29.60 per share. In total, the Company returned $52.7 million to shareholders during 2025 through cash dividends and share repurchases.
On January 27, 2026, the Board of Directors authorized a new share repurchase program (the "2026 Repurchase Plan") permitting the Company to repurchase up to $55 million of its common stock from time to time in the open market or through privately negotiated transactions. The 2026 Repurchase Plan replaces and supersedes the prior share repurchase program previously approved by the Board.
On January 27, 2026, the Board of Directors also declared a quarterly cash dividend of $0.29 per share. This represents an increase of 3.6% from the dividend paid in the fourth quarter of 2025 of $0.28 per share. The dividend will be payable on March 16, 2026, to shareholders of record as of February 27, 2026.
Conference Call
The Company's management will host a conference call today at 1:00 p.m. Eastern Time (8:00 a.m. Hawaii Time) to discuss its fourth quarter of 2025 financial results. Individuals are encouraged to listen to the live webcast of the presentation by visiting the investor relations page of the Company's website at http://ir.cpb.bank. Alternatively, investors may participate in the live call by dialing 1-800-715-9871 and entering the conference ID: 6299769.
A replay of the call will be available through February 27, 2026, by dialing 1-800-770-2030 and entering the same conference ID: 6299769, and on the Company's website. Information which may be discussed in the conference call is provided in an earnings supplement presentation on the Company's website at http://ir.cpb.bank.
About Central Pacific Financial Corp.
Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $7.41 billion in assets as of December 31, 2025. Its primary subsidiary, Central Pacific Bank, operates 27 branches and 55 ATMs in the State of Hawaii. Central Pacific Financial Corp. is listed on the New York Stock Exchange under the symbol "CPF." For additional information, please visit: cpb.bank.
Equal Housing Lender
Member FDIC
NYSE Listed: CPF
Forward-Looking Statements
This document may contain forward-looking statements ("FLS") concerning, among other things: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, payment or nonpayment of dividends, net interest income, capital position, credit losses, net interest margin, or other financial items. These statements may also include the plans, objectives, and expectations of Central Pacific Financial Corp. (the "Company") or its management or Board of Directors, including those relating to business plans, use of capital resources, products or services, and regulatory developments or actions. In addition, such statements may address anticipated economic performance, the expected impact of business initiatives, and the assumptions underlying any of the foregoing.
Words such as "believe," "plan," "anticipate," "aim," "seek," "expect," "intend," "forecast," "hope," "target," "continue," "remain," "estimate," "will," "should," "may," and other similar expressions are intended to identify FLS, although such terminology is not the exclusive means of doing so.
While we believe that our FLS and their underlying assumptions are reasonably based, such statements are inherently subject to risks and uncertainties that may cause actual results to differ materially from expectations. Factors that may lead to such differences, include, but are not limited to: the persistence or resurgence of inflationary pressures in the United States and our market areas, and their effect on market interest rates, economic conditions, and credit quality; the impact of the current U.S. administration’s economic policies, including potential international tariffs, and other cost cutting initiatives; the adverse effects of bank failures on customer confidence, deposit behavior, liquidity, and regulatory responses; the effects of pandemics, epidemics, and other public health emergencies, including their impact on Hawaii's tourism and construction sectors and on our borrowers, customers, vendors and employees; supply chain disruptions, labor contract disputes, strikes; adverse trends in the real estate or construction industries, including rising inventory levels or declining property values; deterioration in borrowers' financial performance leading to increased loan delinquencies, asset quality issues, or loan losses; the impact of local, national, and international economic conditions and natural disasters (such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, or earthquakes) on our markets and major industries within Hawaii; weakness in domestic economic conditions, including instability in the financial industry, deterioration in real estate markets, and declines in consumer or business confidence; revisions to estimates of reserve requirements under applicable regulatory and accounting standards; the impact of legislative and regulatory developments, including the Dodd-Frank Act, changing capital and consumer protection rules, and new regulations affecting our operations and competitiveness; legal and regulatory proceedings, including actual or threatened litigation and the efforts of governmental and regulatory exams and orders, as well as the costs of ongoing or potential compliance efforts; the effects of accounting standard changes adopted by regulatory agencies, the PCAOB, or the FASB, and the cost and resources associated with implementation; changes in trade, monetary, or fiscal policy, including actions by the Federal Reserve; market volatility and monetary fluctuations, including the transition away from the LIBOR Index; declines in our market capitalization or the price of our common stock; the effects and cost of acquisitions, dispositions, or strategic transactions we may make or evaluate; political instability, acts of war, terrorism, or other geopolitical conflicts; shifts in consumer spending, borrowing, and savings behaviors; technological changes and developments; cybersecurity incidents, data privacy breaches, or fraud involving us or third-party vendors; deficiencies in internal control over financial reporting or disclosure controls, and our ability to remediate them; increased competition among financial institutions and other financial service providers; our ability to achieve efficiency ratio improvement goals; our ability to attract and retain key personnel; changes in our personnel, organization, compensation and benefit plans; and related reputational or regulatory exposures; and risks related to the United States fiscal debt, deficit, and budget uncertainties.
For further information on factors that could cause actual results to differ materially from the expectations or projections expressed in our FLS, please refer to the Company's filings with the U.S. Securities and Exchange Commission, including the Company's most recent Forms 10-Q and 10-K, particularly, the discussion of "Risk Factors" set forth therein.
We urge investors to consider all of these factors carefully in evaluating the FLS contained in this document. FLS speak only as of the date on which such statements are made. We undertake no obligation to update any FLS to reflect events or circumstances occurring after the date on which such statements are made, or to reflect the occurrence of unanticipated events, except as required by law.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
TABLE 1
Three Months Ended
Year Ended
(Dollars in thousands,
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Dec 31,
except for per share amounts)
2025
2025
2025
2025
2024
2025
2024
CONDENSED INCOME STATEMENT
Net interest income
$
62,087
$
61,301
$
59,796
$
57,699
$
55,774
$
240,883
$
211,733
Provision for credit losses
2,396
4,157
4,987
4,172
818
15,712
9,826
Total other operating income
14,201
13,507
13,013
11,096
2,624
51,817
38,723
Total other operating expense
45,680
47,009
43,946
42,072
44,177
178,707
172,591
Income tax expense
5,337
5,068
5,605
4,791
2,058
20,801
14,627
Net income
22,875
18,574
18,271
17,760
11,345
77,480
53,412
Basic earnings per share
$
0.86
$
0.69
$
0.68
$
0.66
$
0.42
$
2.88
$
1.97
Diluted earnings per share
0.85
0.69
0.67
0.65
0.42
2.86
1.97
Dividends declared per share
0.28
0.27
0.27
0.27
0.26
1.09
1.04
PERFORMANCE RATIOS
Return on average assets (ROA) [1]
1.25
%
1.01
%
1.00
%
0.96
%
0.62
%
1.06
%
0.72
%
Return on average equity (ROE) [1]
15.41
12.89
13.04
13.04
8.37
13.62
10.25
Average equity to average assets
8.12
7.85
7.66
7.37
7.35
7.75
7.06
Efficiency ratio [2]
59.88
62.84
60.36
61.16
75.65
61.05
68.91
Net interest margin (NIM) [1]
3.56
3.49
3.44
3.31
3.17
3.45
3.01
Dividend payout ratio [3]
32.94
39.13
40.30
41.54
61.90
38.11
52.79
SELECTED AVERAGE BALANCES
Average loans, including loans held for sale
$
5,328,499
$
5,332,656
$
5,307,946
$
5,311,610
$
5,315,802
$
5,320,258
$
5,358,059
Average interest-earning assets
6,964,796
7,011,753
6,985,097
7,054,488
7,052,296
7,003,809
7,061,864
Average assets
7,310,098
7,341,281
7,314,144
7,388,783
7,377,398
7,338,368
7,378,207
Average deposits
6,499,119
6,509,692
6,503,463
6,561,100
6,546,616
6,518,150
6,570,990
Average interest-bearing liabilities
4,757,686
4,807,225
4,807,669
4,914,398
4,906,623
4,821,276
4,932,757
Average equity
593,750
576,531
560,248
544,888
542,135
569,009
521,008
[1] ROA and ROE are annualized based on a 30/360 day convention. Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual).
[2] Efficiency ratio is defined as total other operating expense divided by total revenue (net interest income and total other operating income).
[3] Dividend payout ratio is defined as dividends declared per share divided by diluted earnings per share.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
TABLE 1 (CONTINUED)
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
2025
2025
2025
2025
2024
REGULATORY CAPITAL RATIOS
Central Pacific Financial Corp.
Leverage ratio
9.8
%
9.7
%
9.6
%
9.4
%
9.3
%
Common equity tier 1 capital ratio
12.7
12.6
12.6
12.4
12.3
Tier 1 risk-based capital ratio
13.6
13.5
13.5
13.4
13.2
Total risk-based capital ratio
14.8
15.7
15.8
15.6
15.4
Central Pacific Bank
Leverage ratio
9.7
10.2
10.1
9.8
9.7
Common equity tier 1 capital ratio
13.5
14.1
14.1
14.0
13.8
Tier 1 risk-based capital ratio
13.5
14.1
14.1
14.0
13.8
Total risk-based capital ratio
14.7
15.3
15.3
15.2
14.9
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
(dollars in thousands, except for per share amounts)
2025
2025
2025
2025
2024
BALANCE SHEET
Total loans, net of deferred fees and costs
$
5,289,096
$
5,367,202
$
5,289,809
$
5,334,547
$
5,332,852
Total assets
7,409,241
7,421,478
7,369,567
7,405,239
7,472,096
Total deposits
6,609,764
6,577,684
6,544,989
6,596,048
6,644,011
Long-term debt
76,547
131,527
131,466
131,405
156,345
Total equity
592,581
588,066
568,874
557,376
538,385
Tangible common equity to tangible assets [4]
8.00
%
7.92
%
7.72
%
7.53
%
7.21
%
ASSET QUALITY
Allowance for credit losses (ACL)
$
59,621
$
60,393
$
59,611
$
60,469
$
59,182
Nonaccrual loans
14,386
14,319
14,895
11,085
11,018
Non-performing assets (NPA)
14,386
14,319
14,895
11,085
11,018
Ratio of ACL to total loans
1.13
%
1.13
%
1.13
%
1.13
%
1.11
%
Ratio of NPA to total assets
0.19
%
0.19
%
0.20
%
0.15
%
0.15
%
PER SHARE OF COMMON STOCK OUTSTANDING
Book value per common share
$
22.47
$
21.86
$
21.08
$
20.60
$
19.89
Closing market price per common share
31.16
30.34
28.03
27.04
29.05
[4] The tangible common equity ratio is a non-GAAP measure which should be read in conjunction with the Company’s GAAP financial information. Comparison of our ratio with those of other companies may not be possible because other companies may calculate the ratio differently. See Reconciliation of Non-GAAP Financial Measures in Table 10.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
TABLE 2
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
(Dollars in thousands, except share data)
2025
2025
2025
2025
2024
ASSETS
Cash and due from financial institutions
$
88,200
$
102,859
$
110,935
$
106,670
$
77,774
Interest-bearing deposits in other financial institutions
290,453
207,034
206,035
170,226
303,167
Investment securities:
Debt securities available-for-sale, at fair value
748,212
758,683
765,213
780,379
737,658
Debt securities held-to-maturity, at amortized cost; fair value of: $495,845 at December 31, 2025, $500,859 at September 30, 2025, $499,833 at June 30, 2025, $511,717 at March 31, 2025, and $506,681 at December 31, 2024
562,391
570,886
580,476
589,688
596,930
Total investment securities
1,310,603
1,329,569
1,345,689
1,370,067
1,334,588
Loans held for sale
1,084
1,557
—
2,788
5,662
Loans, net of deferred fees and costs
5,289,096
5,367,202
5,289,809
5,334,547
5,332,852
Less: allowance for credit losses
(59,621
)
(60,393
)
(59,611
)
(60,469
)
(59,182
)
Loans, net of allowance for credit losses
5,229,475
5,306,809
5,230,198
5,274,078
5,273,670
Premises and equipment, net
100,620
100,992
103,657
103,490
104,342
Accrued interest receivable
23,559
25,232
23,518
24,743
23,378
Investment in unconsolidated entities
61,349
52,987
49,370
50,885
52,417
Mortgage servicing rights
8,672
8,459
8,436
8,418
8,473
Bank-owned life insurance
180,717
179,743
177,639
176,846
176,216
Federal Home Loan Bank of Des Moines ("FHLB") and Federal Reserve Bank ("FRB") stock
25,836
25,215
24,816
24,163
6,929
Right-of-use lease assets
24,822
25,570
30,693
29,829
30,824
Other assets
63,851
55,452
58,581
63,036
74,656
Total assets
$
7,409,241
$
7,421,478
$
7,369,567
$
7,405,239
$
7,472,096
LIABILITIES
Deposits:
Noninterest-bearing demand
$
1,891,198
$
1,903,614
$
1,938,226
$
1,854,241
$
1,888,937
Interest-bearing demand
1,388,107
1,340,725
1,336,620
1,368,519
1,338,719
Savings and money market
2,346,522
2,292,881
2,242,122
2,316,416
2,329,170
Time
983,937
1,040,464
1,028,021
1,056,872
1,087,185
Total deposits
6,609,764
6,577,684
6,544,989
6,596,048
6,644,011
Long-term debt, net of unamortized debt issuance costs
76,547
131,527
131,466
131,405
156,345
Lease liabilities
25,549
26,288
31,981
31,057
32,025
Accrued interest payable
7,068
8,604
8,755
8,757
10,051
Other liabilities
97,732
89,309
83,502
80,596
91,279
Total liabilities
6,816,660
6,833,412
6,800,693
6,847,863
6,933,711
EQUITY
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024
—
—
—
—
—
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 26,374,967 at December 31, 2025, 26,903,512 at September 30, 2025, 26,981,436 at June 30, 2025, 27,061,589 at March 31, 2025, and 27,065,570 at December 31, 2024
381,158
397,479
399,823
402,400
404,494
Additional paid-in capital
107,308
106,675
106,033
104,849
105,054
Retained earnings
191,383
175,968
164,676
153,692
143,259
Accumulated other comprehensive loss
(87,268
)
(92,056
)
(101,658
)
(103,565
)
(114,422
)
Total equity
592,581
588,066
568,874
557,376
538,385
Total liabilities and equity
$
7,409,241
$
7,421,478
$
7,369,567
$
7,405,239
$
7,472,096
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
TABLE 3
Three Months Ended
Year Ended
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Dec 31,
(Dollars in thousands, except per share data)
2025
2025
2025
2025
2024
2025
2024
Interest income:
Interest and fees on loans
$
66,897
$
67,222
$
65,668
$
64,119
$
65,482
$
263,906
$
258,192
Interest and dividends on investment securities:
Taxable investment securities
9,401
9,776
9,871
9,801
8,626
38,849
33,278
Tax-exempt investment securities
696
709
709
708
723
2,822
2,527
Interest on deposits in other financial institutions
1,501
1,857
1,484
2,254
3,004
7,096
11,593
Dividend income on FHLB and FRB stock
382
395
388
324
125
1,489
509
Total interest income
78,877
79,959
78,120
77,206
77,960
314,162
306,099
Interest expense:
Interest on deposits:
Interest-bearing demand
441
490
443
452
686
1,826
2,159
Savings and money market
8,004
8,898
8,414
8,862
9,388
34,178
37,043
Time
6,999
7,410
7,616
8,107
9,881
30,132
46,084
Interest on FHLB advances and other short-term borrowings
—
—
—
—
—
—
1
Interest on long-term debt
1,346
1,860
1,851
2,086
2,231
7,143
9,079
Total interest expense
16,790
18,658
18,324
19,507
22,186
73,279
94,366
Net interest income
62,087
61,301
59,796
57,699
55,774
240,883
211,733
Provision for credit losses
2,396
4,157
4,987
4,172
818
15,712
9,826
Net interest income after provision for credit losses
59,691
57,144
54,809
53,527
54,956
225,171
201,907
Other operating income:
Mortgage banking income
1,186
958
744
597
913
3,485
3,388
Service charges on deposit accounts
2,423
2,330
2,124
2,147
2,251
9,024
8,656
Other service charges and fees
5,570
6,472
5,957
5,766
5,476
23,765
22,553
Income from fiduciary activities
1,529
1,547
1,501
1,624
1,430
6,201
5,761
Income from bank-owned life insurance
2,816
1,879
2,260
497
1,966
7,452
6,619
Net loss on sales of investment securities
—
(30
)
—
—
(9,934
)
(30
)
(9,934
)
Other
677
351
427
465
522
1,920
1,680
Total other operating income
14,201
13,507
13,013
11,096
2,624
51,817
38,723
Other operating expense:
Salaries and employee benefits
24,490
24,749
22,696
21,819
21,661
93,754
85,941
Net occupancy
4,432
4,598
4,253
4,392
4,192
17,675
18,001
Computer software
5,442
5,151
5,320
4,714
4,757
20,627
18,015
Legal and professional services
2,878
2,669
2,873
2,798
2,504
11,218
9,790
Equipment
825
867
950
1,082
904
3,724
3,881
Advertising
943
730
832
887
911
3,392
3,615
Communication
495
791
901
1,033
943
3,220
3,177
Other
6,175
7,454
6,121
5,347
8,305
25,097
30,171
Total other operating expense
45,680
47,009
43,946
42,072
44,177
178,707
172,591
Income before income taxes
28,212
23,642
23,876
22,551
13,403
98,281
68,039
Income tax expense
5,337
5,068
5,605
4,791
2,058
20,801
14,627
Net income
$
22,875
$
18,574
$
18,271
$
17,760
$
11,345
$
77,480
$
53,412
Per common share data:
Basic earnings per share
$
0.86
$
0.69
$
0.68
$
0.66
$
0.42
$
2.88
$
1.97
Diluted earnings per share
0.85
0.69
0.67
0.65
0.42
2.86
1.97
Cash dividends declared
0.28
0.27
0.27
0.27
0.26
1.09
1.04
Basic weighted average shares outstanding
26,687,551
26,968,163
26,988,169
27,087,154
27,065,047
26,931,761
27,057,329
Diluted weighted average shares outstanding
26,827,551
27,083,280
27,069,677
27,213,406
27,221,121
27,045,170
27,157,120
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)
(Unaudited)
TABLE 4
Three Months Ended
Three Months Ended
Three Months Ended
December 31, 2025
September 30, 2025
December 31, 2024
Average
Average
Average
Average
Average
Average
(Dollars in thousands)
Balance
Yield/Rate
Interest
Balance
Yield/Rate
Interest
Balance
Yield/Rate
Interest
ASSETS
Interest-earning assets:
Interest-bearing deposits in other financial institutions
$
151,826
3.92
%
$
1,501
$
167,247
4.41
%
$
1,857
$
250,493
4.77
%
$
3,004
Investment securities:
Taxable
1,322,341
2.84
9,401
1,348,314
2.90
9,776
1,338,569
2.58
8,626
Tax-exempt [1]
136,530
2.58
881
138,470
2.59
898
140,503
2.60
915
Total investment securities
1,458,871
2.82
10,282
1,486,784
2.87
10,674
1,479,072
2.58
9,541
Loans, including loans held for sale
5,328,499
4.99
66,897
5,332,656
5.01
67,222
5,315,802
4.91
65,482
FHLB and FRB stock
25,600
5.96
382
25,066
6.30
395
6,929
7.23
125
Total interest-earning assets
6,964,796
4.52
79,062
7,011,753
4.55
80,148
7,052,296
4.42
78,152
Noninterest-earning assets
345,302
329,528
325,102
Total assets
$
7,310,098
$
7,341,281
$
7,377,398
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits
$
1,358,436
0.13
%
$
441
$
1,358,837
0.14
%
$
490
$
1,312,561
0.21
%
$
686
Savings and money market deposits
2,297,826
1.38
8,004
2,293,452
1.54
8,898
2,313,293
1.61
9,388
Time deposits up to $250,000
433,911
2.21
2,422
437,192
2.28
2,509
518,540
2.99
3,900
Time deposits over $250,000
571,240
3.18
4,577
586,251
3.32
4,901
605,920
3.93
5,981
Total interest-bearing deposits
4,661,413
1.31
15,444
4,675,732
1.43
16,798
4,750,314
1.67
19,955
Federal funds purchased and securities sold
—
—
—
—
—
—
2
5.57
—
FHLB advances and other short-term borrowings
—
—
—
—
—
—
2
5.04
—
Long-term debt
96,273
5.55
1,346
131,493
5.61
1,860
156,305
5.68
2,231
Total interest-bearing liabilities
4,757,686
1.40
16,790
4,807,225
1.54
18,658
4,906,623
1.80
22,186
Noninterest-bearing deposits
1,837,706
1,833,960
1,796,302
Other liabilities
120,956
123,565
132,338
Total liabilities
6,716,348
6,764,750
6,835,263
Total equity
593,750
576,531
542,135
Total liabilities and equity
$
7,310,098
$
7,341,281
$
7,377,398
Taxable-equivalent net interest income (non-GAAP)
62,272
61,490
55,966
Taxable-equivalent adjustment [1]
(185
)
(189
)
(192
)
Net interest income (GAAP)
$
62,087
$
61,301
$
55,774
Interest rate spread
3.12
%
3.01
%
2.62
%
Net interest margin (taxable-equivalent)
3.56
%
3.49
%
3.17
%
[1] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)
(Unaudited)
TABLE 5
Year Ended
Year Ended
December 31, 2025
December 31, 2024
Average
Average
Average
Average
(Dollars in thousands)
Balance
Yield/Rate
Interest
Balance
Yield/Rate
Interest
ASSETS
Interest-earning assets:
Interest-bearing deposits in other financial institutions
$
164,721
4.31
%
$
7,096
$
220,526
5.26
%
$
11,593
Investment securities:
Taxable
1,356,467
2.86
38,849
1,334,695
2.49
33,278
Tax-exempt [1]
138,415
2.58
3,572
141,688
2.26
3,199
Total investment securities
1,494,882
2.84
42,421
1,476,383
2.47
36,477
Loans, including loans held for sale
5,320,258
4.96
263,906
5,358,059
4.82
258,192
FHLB and FRB stock
23,948
6.22
1,489
6,896
7.38
509
Total interest-earning assets
7,003,809
4.50
314,912
7,061,864
4.34
306,771
Noninterest-earning assets
334,559
316,343
Total assets
$
7,338,368
$
7,378,207
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits
$
1,357,433
0.13
%
$
1,826
$
1,287,628
0.17
%
$
2,159
Savings and money market deposits
2,302,973
1.48
34,178
2,263,273
1.64
37,043
Time deposits up to $250,000
442,001
2.33
10,309
538,216
3.16
17,025
Time deposits over $250,000
591,162
3.35
19,823
687,404
4.23
29,059
Total interest-bearing deposits
4,693,569
1.41
66,136
4,776,521
1.79
85,286
Federal funds purchased and securities sold
—
—
—
1
5.57
—
FHLB advances and other short-term borrowings
—
—
—
17
5.58
1
Long-term debt
127,707
5.59
7,143
156,218
5.81
9,079
Total interest-bearing liabilities
4,821,276
1.52
73,279
4,932,757
1.91
94,366
Noninterest-bearing deposits
1,824,581
1,794,469
Other liabilities
123,502
129,973
Total liabilities
6,769,359
6,857,199
Total equity
569,009
521,008
Total liabilities and equity
$
7,338,368
$
7,378,207
Taxable-equivalent net interest income (non-GAAP)
241,633
212,405
Taxable-equivalent adjustment [1]
(750
)
(672
)
Net interest income (GAAP)
$
240,883
$
211,733
Interest rate spread
2.98
%
2.43
%
Net interest margin (taxable-equivalent)
3.45
%
3.01
%
[1] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Loans by Class
(Unaudited)
TABLE 6
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
(Dollars in thousands)
2025
2025
2025
2025
2024
Commercial and industrial
$
594,592
$
608,814
$
608,130
$
634,620
$
606,936
Construction
213,191
217,610
190,008
160,092
145,211
Residential mortgage
1,839,191
1,839,535
1,851,690
1,870,239
1,892,520
Home equity
600,082
610,889
627,834
655,237
676,982
Commercial mortgage
1,594,433
1,613,187
1,540,523
1,552,439
1,500,680
Consumer
447,607
477,167
471,624
461,920
510,523
Total loans, net of deferred fees and costs
$
5,289,096
$
5,367,202
$
5,289,809
$
5,334,547
$
5,332,852
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Deposits by Category
(Unaudited)
TABLE 7
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
(Dollars in thousands)
2025
2025
2025
2025
2024
Noninterest-bearing demand
$
1,891,198
$
1,903,614
$
1,938,226
$
1,854,241
$
1,888,937
Interest-bearing demand
1,388,107
1,340,725
1,336,620
1,368,519
1,338,719
Savings and money market
2,346,522
2,292,881
2,242,122
2,316,416
2,329,170
Time deposits up to $250,000
433,629
444,005
439,687
436,437
483,378
Core deposits
6,059,456
5,981,225
5,956,655
5,975,613
6,040,204
Other time deposits greater than $250,000
412,188
458,339
459,945
475,861
500,693
Government time deposits
138,120
138,120
128,389
144,574
103,114
Total time deposits greater than $250,000
550,308
596,459
588,334
620,435
603,807
Total deposits
$
6,609,764
$
6,577,684
$
6,544,989
$
6,596,048
$
6,644,011
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Nonperforming Assets and Accruing Loans 90+ Days Past Due
(Unaudited)
TABLE 8
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
(Dollars in thousands)
2025
2025
2025
2025
2024
Nonaccrual loans:
Commercial and industrial
$
591
$
357
$
110
$
531
$
414
Residential mortgage
10,572
11,413
12,327
9,199
9,044
Home equity
2,608
2,119
1,889
746
952
Consumer
615
430
569
609
608
Total nonaccrual loans
14,386
14,319
14,895
11,085
11,018
Other real estate owned ("OREO")
—
—
—
—
—
Total nonperforming assets ("NPAs")
14,386
14,319
14,895
11,085
11,018
Accruing loans 90+ days past due:
Residential mortgage
664
1,159
1,625
—
323
Home equity
485
—
21
87
78
Consumer
403
349
418
670
373
Total accruing loans 90+ days past due
1,552
1,508
2,064
757
774
Total NPAs and accruing loans 90+ days past due
$
15,938
$
15,827
$
16,959
$
11,842
$
11,792
Ratio of total nonaccrual loans to total loans
0.27
%
0.27
%
0.28
%
0.21
%
0.21
%
Ratio of total NPAs to total assets
0.19
0.19
0.20
0.15
0.15
Ratio of total NPAs to total loans and OREO
0.27
0.27
0.28
0.21
0.21
Ratio of total NPAs and accruing loans 90+ days past due to total loans and OREO
0.30
0.29
0.32
0.22
0.22
Quarter-to-quarter changes in NPAs:
Balance at beginning of quarter
$
14,319
$
14,895
$
11,085
$
11,018
$
11,597
Additions
2,549
838
5,879
2,397
1,436
Reductions:
Payments
(397
)
(286
)
(585
)
(614
)
(763
)
Return to accrual status
(1,098
)
(821
)
(861
)
(558
)
(71
)
Charge-offs, valuation adjustments and other reductions
(987
)
(307
)
(623
)
(1,158
)
(1,181
)
Total reductions
(2,482
)
(1,414
)
(2,069
)
(2,330
)
(2,015
)
Balance at end of quarter
$
14,386
$
14,319
$
14,895
$
11,085
$
11,018
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Allowance for Credit Losses on Loans
(Unaudited)
TABLE 9
Three Months Ended
Year Ended
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Dec 31,
(Dollars in thousands)
2025
2025
2025
2025
2024
2025
2024
Allowance for credit losses ("ACL") on loans:
Balance at beginning of period
$
60,393
$
59,611
$
60,469
$
59,182
$
61,647
$
59,182
$
63,934
Provision for credit losses on loans
1,685
3,440
3,810
3,905
1,353
12,840
10,962
Charge-offs:
Commercial and industrial
(678
)
(1,071
)
(2,858
)
(580
)
(1,113
)
(5,187
)
(2,977
)
Residential mortgage
—
—
—
—
—
—
(383
)
Consumer
(2,831
)
(2,824
)
(2,864
)
(2,977
)
(3,727
)
(11,496
)
(16,866
)
Total charge-offs
(3,509
)
(3,895
)
(5,722
)
(3,557
)
(4,840
)
(16,683
)
(20,226
)
Recoveries:
Commercial and industrial
266
204
195
171
158
836
536
Construction
1
—
3
—
—
4
—
Residential mortgage
9
8
7
10
11
34
36
Home equity
9
9
9
3
—
30
6
Consumer
767
1,016
840
755
853
3,378
3,934
Total recoveries
1,052
1,237
1,054
939
1,022
4,282
4,512
Net charge-offs
(2,457
)
(2,658
)
(4,668
)
(2,618
)
(3,818
)
(12,401
)
(15,714
)
Balance at end of period
$
59,621
$
60,393
$
59,611
$
60,469
$
59,182
$
59,621
$
59,182
Average loans, net of deferred fees and costs
$
5,328,499
$
5,332,656
$
5,307,946
$
5,311,610
$
5,315,802
$
5,320,258
$
5,358,059
Ratio of annualized net charge-offs to average loans
0.18
%
0.20
%
0.35
%
0.20
%
0.29
%
0.23
%
0.29
%
Ratio of ACL to total loans
1.13
1.13
1.13
1.13
1.11
1.13
1.11
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
TABLE 10
To supplement its consolidated financial information, the Company utilizes certain non-GAAP financial measures. These measures are not intended to be considered in isolation or as a substitute for comparable GAAP results. The Company believes these non-GAAP financial measures provide meaningful insight to investors and other stakeholders in understanding its financial performance and position, by excluding certain transactions that may be non-recurring, non-operational, or not indicative of ongoing results. The Company believes that these non-GAAP measures offer a useful perspective for evaluating performance trends over time and are intended to support period-to-period comparisons. The Company believes they are valuable tools for both investors and management in assessing historical results and forecasting future performance.
Non-GAAP financial measures may not be comparable to similarly entitled measures reported by other companies. The following reconciling adjustments from GAAP to non-GAAP adjusted financial measures are limited to: (1) net pre-tax expenses of $1.5 million related to the consolidation of the Company's former operations center into its main office in the three months ended September 30, 2025, (2) net pre-tax loss on sales of investment securities related to an investment portfolio repositioning of $9.9 million in the fourth quarter of 2024, and (3) pre-tax expenses of $3.1 million related to the evaluation and assessment of a strategic opportunity in the three months ended September 30, 2024.
Management does not consider these transactions to be representative of the Company's core operating performance. The related income tax effects were calculated using an assumed effective tax rate of 23%.
Three Months Ended
December 31, 2025
September 30, 2025
December 31, 2024
(dollars in thousands,
GAAP
Non-GAAP
Non-GAAP
GAAP
Non-GAAP
Non-GAAP
GAAP
Non-GAAP
Non-GAAP
except per share data)
Reported
Adjustment
Adjusted
Reported
Adjustment
Adjusted
Reported
Adjustment
Adjusted
Financial measures:
Net income
$
22,875
$
—
$
22,875
$
18,574
$
1,167
$
19,741
$
11,345
$
7,649
$
18,994
Diluted EPS
$
0.85
$
—
$
0.85
$
0.69
$
0.04
$
0.73
$
0.42
$
0.28
$
0.70
Efficiency ratio (non-GAAP)
59.88
%
—
%
59.88
%
62.84
%
(2.03
)%
60.81
%
75.65
%
(11.00
)%
64.65
%
ROA
1.25
%
—
%
1.25
%
1.01
%
0.07
%
1.08
%
0.62
%
0.41
%
1.03
%
ROE
15.41
%
—
%
15.41
%
12.89
%
0.78
%
13.67
%
8.37
%
5.45
%
13.82
%
As of period ended:
TCE ratio (non-GAAP)
8.00
%
0.01
%
8.01
%
7.92
%
0.02
%
7.94
%
7.21
%
0.12
%
7.33
%
Year Ended December 31, 2025
Year Ended December 31, 2024
(dollars in thousands,
GAAP
Non-GAAP
Non-GAAP
GAAP
Non-GAAP
Non-GAAP
except per share data)
Reported
Adjustment
Adjusted
Reported
Adjustment
Adjusted
Financial measures:
Net income
$
77,480
$
1,167
$
78,647
$
53,412
$
10,011
$
63,423
Diluted EPS
$
2.86
$
0.05
$
2.91
$
1.97
$
0.37
$
2.34
Efficiency ratio (non-GAAP)
61.05
%
(0.51
)%
60.54
%
68.91
%
(3.81
)%
65.10
%
ROA
1.06
%
0.01
%
1.07
%
0.72
%
0.14
%
0.86
%
ROE
13.62
%
0.19
%
13.81
%
10.25
%
1.85
%
12.10
%
As of December 31, 2025 and 2024:
TCE ratio (non-GAAP)
8.00
%
0.01
%
8.01
%
7.21
%
0.12
%
7.33
%
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
TABLE 10 (CONTINUED)
The following table presents a reconciliation of the non-GAAP adjusted net income and adjusted diluted EPS for the periods indicated, excluding the reconciling adjustments discussed above.
Three Months Ended
Year Ended
(dollars in thousands, except per share data)
Dec 31, 2025
Sep 30, 2025
Dec 31, 2024
Dec 31, 2025
Dec 31, 2024
GAAP net income
$
22,875
$
18,574
$
11,345
$
77,480
$
53,412
Add: Net loss related to an investment portfolio repositioning
—
—
9,934
—
9,934
Add: Expenses related to the consolidation of operations center
—
1,516
—
1,516
—
Add: Expenses related to a strategic opportunity
—
—
—
—
3,068
Non-GAAP pre-tax adjustments
—
1,516
9,934
1,516
13,002
Less: Income tax effect (assumes 23% ETR)
—
(349
)
(2,285
)
(349
)
(2,991
)
Non-GAAP adjustments, net of tax
—
1,167
7,649
1,167
10,011
Adjusted net income (non-GAAP)
$
22,875
$
19,741
$
18,994
$
78,647
$
63,423
Diluted weighted average shares outstanding
26,827,551
27,083,280
27,221,121
27,045,170
27,157,120
GAAP diluted EPS
$
0.85
$
0.69
$
0.42
$
2.86
$
1.97
Add: Non-GAAP adjustments, net of tax
—
0.04
0.28
0.05
0.37
Adjusted diluted EPS (non-GAAP)
$
0.85
$
0.73
$
0.70
$
2.91
$
2.34
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
TABLE 10 (CONTINUED)
A key measure of operating efficiency monitored by the Company is the efficiency ratio, which is derived from GAAP-based amounts. It is calculated by dividing total other operating expenses by total pre-provision revenue (defined as net interest income plus total other operating income). The Company believes that the efficiency ratio, a non-GAAP financial measure, provides a useful supplemental metric that enhances understanding of its business performance and operating efficiency. However, this ratio should not be viewed as a substitute for GAAP results and may not be comparable to similarly titled measures reported by other companies. The following table presents the Company's efficiency ratio and adjusted efficiency ratio for the periods indicated:
Three Months Ended
Year Ended
(dollars in thousands)
Dec 31, 2025
Sep 30, 2025
Dec 31, 2024
Dec 31, 2025
Dec 31, 2024
Total other operating expense
$
45,680
$
47,009
$
44,177
$
178,707
$
172,591
Less: Expenses related to the consolidation of operations center
—
(1,516
)
—
(1,516
)
—
Less: Expenses related to a strategic opportunity
—
—
—
—
(3,068
)
Non-GAAP other operating expense adjustments
—
(1,516
)
—
(1,516
)
(3,068
)
Adjusted total other operating expense (non-GAAP)
$
45,680
$
45,493
$
44,177
$
177,191
$
169,523
Total other operating income
$
14,201
$
13,507
$
2,624
$
51,817
$
38,723
Add: Net loss related to an investment portfolio repositioning
—
—
9,934
—
9,934
Adjusted total other operating income (non-GAAP)
$
14,201
$
13,507
$
12,558
51,817
48,657
Net interest income
$
62,087
$
61,301
$
55,774
$
240,883
$
211,733
Total other operating income
14,201
13,507
2,624
51,817
38,723
Total revenue
$
76,288
$
74,808
$
58,398
$
292,700
$
250,456
Efficiency ratio (non-GAAP)
59.88
%
62.84
%
75.65
%
61.05
%
68.91
%
Less: Non-GAAP pre-tax adjustments
—
%
(2.03
)%
(11.00
)%
(0.51
)%
(3.81
)%
Adjusted efficiency ratio (non-GAAP)
59.88
%
60.81
%
64.65
%
60.54
%
65.10
%
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
TABLE 10 (CONTINUED)
The table below provides a recalculation of the non-GAAP adjusted ROA and adjusted ROE for the periods indicated, excluding the reconciling adjustments discussed above.
Three Months Ended
Year Ended
(dollars in thousands)
Dec 31, 2025
Sep 30, 2025
Dec 31, 2024
Dec 31, 2025
Dec 31, 2024
Average assets
$
7,310,098
$
7,341,281
$
7,377,398
$
7,338,368
$
7,378,207
Add: Non-GAAP adjustments, net of tax
—
1,167
7,649
584
3,093
Adjusted average assets (non-GAAP)
$
7,310,098
$
7,342,448
$
7,385,047
$
7,338,952
$
7,381,300
ROA
1.25
%
1.01
%
0.62
%
1.06
%
0.72
%
Add: Non-GAAP adjustments, net of tax
—
0.07
0.41
0.01
0.14
Adjusted ROA (non-GAAP)
1.25
%
1.08
%
1.03
%
1.07
%
0.86
%
Average equity
$
593,750
$
576,531
$
542,135
$
569,009
$
521,008
Add: Non-GAAP adjustments, net of tax
—
1,167
7,649
584
3,093
Adjusted average equity (non-GAAP)
$
593,750
$
577,698
$
549,784
$
569,593
$
524,101
ROE
15.41
%
12.89
%
8.37
%
13.62
%
10.25
%
Add: Non-GAAP adjustments, net of tax
—
0.78
5.45
0.19
1.85
Adjusted ROE (non-GAAP)
15.41
%
13.67
%
13.82
%
13.81
%
12.10
%
The table below presents the Tangible Common Equity ("TCE") ratio and adjusted TCE ratio, both of which are non-GAAP financial measures, as of the dates indicated. The TCE ratio is calculated by dividing tangible common equity by tangible assets.
(dollars in thousands)
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
Total equity
$
592,581
$
588,066
$
568,874
$
557,376
$
538,385
Less: Intangible assets
—
—
—
—
—
TCE
$
592,581
$
588,066
$
568,874
$
557,376
$
538,385
Add: Non-GAAP adjustments, net of tax
1,167
1,167
—
—
10,011
Adjusted TCE (non-GAAP)
$
593,748
$
589,233
$
568,874
$
557,376
$
548,396
Total assets
$
7,409,241
$
7,421,478
$
7,369,567
$
7,405,239
$
7,472,096
Less: Intangible assets
—
—
—
—
—
Tangible assets
$
7,409,241
$
7,421,478
$
7,369,567
$
7,405,239
$
7,472,096
Add: Non-GAAP adjustments, net of tax
1,167
1,167
—
—
10,011
Adjusted tangible assets (non-GAAP)
$
7,410,408
$
7,422,645
$
7,369,567
$
7,405,239
$
7,482,107
TCE ratio (non-GAAP)
8.00
%
7.92
%
7.72
%
7.53
%
7.21
%
Add: Non-GAAP adjustments, net of tax
0.01
0.02
—
—
0.12
Adjusted TCE ratio (non-GAAP)
8.01
%
7.94
%
7.72
%
7.53
%
7.33
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260128471248/en/
Investor Contact:
Jayrald Rabago
Senior Strategic Financial Officer
(808) 544-3556
jayrald.rabago@cpb.bank
Media Contact:
Tim Sakahara
Corporate Communications Manager
(808) 544-5125
tim.sakahara@cpb.bank
Original: Central Pacific Financial Reports Fourth Quarter and Full Year 2025 Earnings
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