Central Pacific Financial Corp (CPF)

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