Open the filing on EDGARCENTRAL PACIFIC FINANCIAL REPORTS THIRD QUARTER 2025 EARNINGS OF $18.6 MILLION
3rd Quarter Highlights:
- Net income of $18.6 million, or $0.69 per diluted share.
- Adjusted net income (non-GAAP), excluding $1.5 million in pre-tax expenses related to the consolidation of the Company's operations center, was $19.7 million, or $0.73 per diluted share.
- Return on average assets of 1.01%; return on average equity of 12.89%
- Net interest margin of 3.49%, increased by 5 bps from 3.44% in the prior quarter
- Total loans of $5.37 billion, increased by $77.4 million from the prior quarter
- Total deposits of $6.58 billion, increased by $32.7 million from the prior quarter
- Repurchased 78,255 shares of common stock at a total cost of $2.3 million during the quarter, and 258,648 shares at a total cost of $7.0 million year-to-date
Other Highlights:
- Central Pacific partnered with The Kyoto Shinkin Bank to expand its presence in Japan by fostering relationship-building opportunities among small to mid-sized customers of both institutions
- Central Pacific to redeem $55.0 million in subordinated notes at par during the fourth quarter
- CPF Board of Directors approved an increase in the quarterly cash dividend to $0.28 per share
HONOLULU, HI, October 29, 2025 - Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), today reported net income of $18.6 million, or $0.69 per fully diluted earnings share ("EPS"), for the third quarter of 2025. This compares to net income of $18.3 million, or EPS of $0.67, in the prior quarter and $13.3 million, or EPS of $0.49, in the same quarter last year. Results for the third quarter of 2025 included $1.5 million in pre-tax expenses related to the consolidation of the Company's former operations center into its main office. Excluding this item, adjusted net income (non-GAAP) for the third quarter of 2025 was $19.7 million, or EPS (non-GAAP) of $0.73.
"Central Pacific delivered another strong quarter, highlighted by continued margin expansion, solid earnings, and growth in both loans and deposits," said Arnold Martines, Chairman, President and CEO. "Our net interest margin increased to 3.49%, reflecting disciplined balance sheet management and improved asset yields. With our strong earnings and capital position, in the fourth quarter we will redeem our subordinated debt and increase our quarterly cash dividend. Additionally, our new partnership with Kyoto Shinkin Bank marks an exciting step forward in deepening Hawaii - Japan business ties and expanding our international reach. These achievements reflect our continued positive momentum and commitment to providing exceptional service to our customers, and delivering long-term value to our shareholders."
Earnings Highlights
Net interest income for the third quarter of 2025 totaled $61.3 million, which increased by $1.5 million, or 2.5% from the prior quarter, and increased by $7.5 million, or 13.8%, compared to the same quarter last year. Net interest margin ("NIM") for the third quarter of 2025 was 3.49%, an increase of 5 basis points ("bp" or "bps") from the prior quarter, and an increase of 42 bps from the same quarter last year. The sequential quarter increase in net interest income and NIM was primarily driven by higher average yields earned on loans, up 5 bps, and investment securities, up 3 bps, partially offset by a 2 bps increase in average rates paid on interest-bearing deposits.
The Company recorded a provision for credit losses of $4.2 million in the third quarter of 2025, compared to a provision of $5.0 million in the prior quarter, and a provision of $2.8 million in the same quarter last year. The current quarter provision for credit losses included $3.4 million for credit losses on loans and $0.8 million for off-balance sheet exposures. The decrease from prior quarter was primarily driven by lower net charge-offs.
Other operating income for the third quarter of 2025 totaled $13.5 million, compared to $13.0 million in the prior quarter, and $12.7 million in the same quarter last year. The increase was largely driven by a $0.5 million increase in investment services income, included in other service charges and fees.
Other operating expense for the third quarter of 2025 totaled $47.0 million, compared to $43.9 million in the prior quarter, and $46.7 million in the same quarter last year. The increase was primarily attributable to higher salaries and employee benefits of $2.1 million related to incentive accruals and commissions, and $1.5 million in one-time expenses related to the operations center consolidation.
The efficiency ratio was 62.84% in the third quarter of 2025, compared to 60.36% in the prior quarter and 70.12% in the same quarter last year. Excluding the $1.5 million in expenses related to the operations center consolidation, the adjusted efficiency ratio (non-GAAP) was 60.81% for the third quarter of 2025.
The effective tax rate for the third quarter of 2025 was 21.4%, compared to 23.5% in the prior quarter, and 22.0% in the same quarter last year. The decrease in the Company's effective tax rate in the third quarter of 2025 was primarily attributable to the impact of the donation of real estate in connection with the consolidation of its operations center, and an increase in projected tax-exempt income.
Balance Sheet Highlights
As of September 30, 2025, total assets were $7.42 billion, which increased by $51.9 million, or 0.7% from $7.37 billion at June 30, 2025, and an increase of $6.0 million, or 0.08% from $7.42 billion at September 30, 2024.
Total loans, net of deferred fees and costs, were $5.37 billion at September 30, 2025, which increased by $77.4 million, or 1.5% from $5.29 billion at June 30, 2025, and increased by $24.6 million, or 0.5% from $5.34 billion at September 30, 2024. The average yield earned on loans during the third quarter of 2025 was 5.01%, compared to 4.96% in the prior quarter and 4.89% in the same quarter last year.
Total deposits were $6.58 billion at September 30, 2025, which increased by $32.7 million or 0.5% from $6.54 billion at June 30, 2025, and decreased by $5.3 million, or 0.1% from $6.58 billion at September 30, 2024. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $5.98 billion at September 30, 2025. Core deposits increased by $24.6 million, or 0.4% from $5.96 billion at June 30, 2025, and increased by $15.2 million, or 0.3% from $5.97 billion at September 30, 2024. The average rate paid on total deposits during the third quarter of 2025 was 1.02%, compared to 1.02% in the prior quarter, and 1.32% in the same quarter last year.
Asset Quality
Nonperforming assets totaled $14.3 million, or 0.19% of total assets at September 30, 2025, compared to $14.9 million, or 0.20% of total assets at June 30, 2025 and $11.6 million, or 0.16% of total assets at September 30, 2024.
Net charge-offs in the third quarter of 2025 totaled $2.7 million, compared to net charge-offs of $4.7 million in the prior quarter, and net charge-offs of $3.6 million in the same quarter last year. The decrease in net charge-offs was primarily due to a $2.0 million full charge-off of a commercial and industrial loan during the second quarter of 2025. On an annualized basis, net charge-offs as a percentage of average loans was 0.20% in the third quarter of 2025, compared to 0.35% in the prior quarter, and 0.27% in the same quarter last year.
The allowance for credit losses on loans was 1.13% of total loans as of September 30, 2025, compared to 1.13% at June 30, 2025, and 1.15% at September 30, 2024.
Capital
Total shareholders' equity at September 30, 2025 was $588.1 million, compared to $568.9 million at June 30, 2025 and $543.7 million at September 30, 2024.
During the third quarter of 2025, the Company repurchased 78,255 shares of common stock at a total cost of $2.3 million, or an average price of $29.95 per share. As of September 30, 2025, $23.0 million remained available under the Company's share repurchase authorization.
The Company's regulatory capital ratios remained strong, with 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 15.7% at September 30, 2025.
On October 1, 2025, the Company notified holders of its 4.75% fixed-to-floating rate subordinated notes due 2030, that it would be redeeming the notes in full on the November 1, 2025 call date. These notes, which currently total $55.0 million in principal outstanding, will be redeemed at par.
On October 28, 2025, the Board of Directors declared a quarterly cash dividend of $0.28 per share. The dividend represents an increase of 3.7% from $0.27 per share in the third quarter of 2025 and will be payable on December 15, 2025, to shareholders of record as of November 28, 2025.
Strategic Partnership
On October 6, 2025, Central Pacific Bank ("CPB") entered into a strategic partnership with The Kyoto Shinkin Bank ("KSB"), with the signing of a Memorandum of Understanding, to create a stronger economic bridge between Hawaii and Japan. The partnership will expand business opportunities and connect customers of both institutions across the Pacific for the benefit of both banks.
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 third 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 November 28, 2025, 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 $7.42 billion in assets as of September 30, 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.
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 statement 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
TABLE 1
| Three Months Ended | Nine Months Ended |
|---|
| (Dollars in thousands, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Sep 30, |
| except for per share amounts) | | 2025 | | 2025 | | 2025 | | 2024 | | 2024 | | 2025 | | 2024 |
| CONDENSED INCOME STATEMENT | | | | | | | |
| Net interest income | $61,301 | | $59,796 | | $57,699 | | $55,774 | | $53,851 | | $178,796 | | $155,959 | |
| Provision for credit losses | 4,157 | | 4,987 | | 4,172 | | 818 | | 2,833 | | 13,316 | | 9,008 | |
| Total other operating income | 13,507 | | 13,013 | | 11,096 | | 2,624 | | 12,734 | | 37,616 | | 36,099 | |
| Total other operating expense | 47,009 | | 43,946 | | 42,072 | | 44,177 | | 46,687 | | 133,027 | | 128,414 | |
| Income tax expense | 5,068 | | 5,605 | | 4,791 | | 2,058 | | 3,760 | | 15,464 | | 12,569 | |
| Net income | 18,574 | | 18,271 | | 17,760 | | 11,345 | | 13,305 | | 54,605 | | 42,067 | |
| Basic earnings per share | $0.69 | | $0.68 | | $0.66 | | $0.42 | | $0.49 | | $2.02 | | $1.55 | |
| Diluted earnings per share | 0.69 | | 0.67 | | 0.65 | | 0.42 | | 0.49 | | 2.01 | | 1.55 | |
| Dividends declared per share | 0.27 | | 0.27 | | 0.27 | | 0.26 | | 0.26 | | 0.81 | | 0.78 | |
| PERFORMANCE RATIOS | | | | | | | |
| Return on average assets (ROA) [1] | 1.01% | | 1.00% | | 0.96% | | 0.62% | | 0.72% | | 0.99% | | 0.76% | |
| Return on average equity (ROE) [1] | 12.89 | | 13.04 | | 13.04 | | 8.37 | | 10.02 | | 12.99 | | 10.91 | |
| Average equity to average assets | 7.85 | | 7.66 | | 7.37 | | 7.35 | | 7.23 | | 7.63 | | 6.97 | |
| Efficiency ratio [2] | 62.84 | | 60.36 | | 61.16 | | 75.65 | | 70.12 | | 61.47 | | 66.86 | |
| Net interest margin (NIM) [1] | 3.49 | | 3.44 | | 3.31 | | 3.17 | | 3.07 | | 3.41 | | 2.95 | |
| Dividend payout ratio [3] | 39.13 | | 40.30 | | 41.54 | | 61.90 | | 53.06 | | 40.30 | | 50.32 | |
| SELECTED AVERAGE BALANCES | | | | | | | |
| Average loans, including loans held for sale | $5,332,656 | | $5,307,946 | | $5,311,610 | | $5,315,802 | | $5,330,810 | | $5,317,481 | | $5,372,247 | |
| Average interest-earning assets | 7,011,753 | | 6,985,097 | | 7,054,488 | | 7,052,296 | | 7,022,910 | | 7,016,957 | | 7,065,075 | |
| Average assets | 7,341,281 | | 7,314,144 | | 7,388,783 | | 7,377,398 | | 7,347,403 | | 7,347,895 | | 7,378,479 | |
| Average deposits | 6,509,692 | | 6,503,463 | | 6,561,100 | | 6,546,616 | | 6,535,422 | | 6,524,563 | | 6,579,174 | |
| Average interest-bearing liabilities | 4,807,225 | | 4,807,669 | | 4,914,398 | | 4,906,623 | | 4,904,460 | | 4,842,703 | | 4,941,530 | |
| Average equity | 576,531 | | 560,248 | | 544,888 | | 542,135 | | 530,928 | | 560,671 | | 513,914 | |
| [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
TABLE 1 (CONTINUED)
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, |
|---|
| 2025 | 2025 | 2025 | 2024 | 2024 |
|---|
| REGULATORY CAPITAL RATIOS | | | | | |
| Central Pacific Financial Corp. | | | | | |
| Leverage ratio | 9.7% | | 9.6% | | 9.4% | | 9.3% | | 9.5% | |
| Common equity tier 1 capital ratio | 12.6 | | 12.6 | | 12.4 | | 12.3 | | 12.1 | |
| Tier 1 risk-based capital ratio | 13.5 | | 13.5 | | 13.4 | | 13.2 | | 13.1 | |
| Total risk-based capital ratio | 15.7 | | 15.8 | | 15.6 | | 15.4 | | 15.3 | |
| Central Pacific Bank | | | | | |
| Leverage ratio | 10.2 | | 10.1 | | 9.8 | | 9.7 | | 9.8 | |
| Common equity tier 1 capital ratio | 14.1 | | 14.1 | | 14.0 | | 13.8 | | 13.6 | |
| Tier 1 risk-based capital ratio | 14.1 | | 14.1 | | 14.0 | | 13.8 | | 13.6 | |
| Total risk-based capital ratio | 15.3 | | 15.3 | | 15.2 | | 14.9 | | 14.8 | |
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, |
|---|
| (dollars in thousands, except for per share amounts) | | 2025 | | 2025 | | 2025 | | 2024 | | 2024 |
| BALANCE SHEET | | | | | |
| Total loans, net of deferred fees and costs | $5,367,202 | | $5,289,809 | | $5,334,547 | | $5,332,852 | | $5,342,609 | |
| Total assets | 7,421,478 | | 7,369,567 | | 7,405,239 | | 7,472,096 | | 7,415,430 | |
| Total deposits | 6,577,684 | | 6,544,989 | | 6,596,048 | | 6,644,011 | | 6,583,013 | |
| Long-term debt | 131,527 | | 131,466 | | 131,405 | | 156,345 | | 156,284 | |
| Total equity | 588,066 | | 568,874 | | 557,376 | | 538,385 | | 543,725 | |
| Total equity to total assets | 7.92% | | 7.72% | | 7.53% | | 7.21% | | 7.33% | |
| Tangible common equity to tangible assets [4] | 7.92% | | 7.72% | | 7.53% | | 7.21% | | 7.31% | |
| ASSET QUALITY | | | | | |
| Allowance for credit losses (ACL) | $60,393 | | $59,611 | | $60,469 | | $59,182 | | $61,647 | |
| Nonaccrual loans | 14,319 | | 14,895 | | 11,085 | | 11,018 | | 11,597 | |
| Non-performing assets (NPA) | 14,319 | | 14,895 | | 11,085 | | 11,018 | | 11,597 | |
| Ratio of ACL to total loans | 1.13% | | 1.13% | | 1.13% | | 1.11% | | 1.15% | |
| Ratio of NPA to total assets | 0.19% | | 0.20% | | 0.15% | | 0.15% | | 0.16% | |
| PER SHARE OF COMMON STOCK OUTSTANDING | | | | | |
| Book value per common share | $21.86 | | $21.08 | | $20.60 | | $19.89 | | $20.09 | |
| Closing market price per common share | 30.34 | | 28.03 | | 27.04 | | 29.05 | | 29.51 | |
| [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
TABLE 2
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, |
|---|
| (Dollars in thousands, except share data) | | 2025 | | 2025 | | 2025 | | 2024 | | 2024 |
| ASSETS | | | | | |
| Cash and due from financial institutions | $102,859 | | $110,935 | | $106,670 | | $77,774 | | $100,064 | |
| Interest-bearing deposits in other financial institutions | 207,034 | | 206,035 | | 170,226 | | 303,167 | | 226,505 | |
| Investment securities: | | | | | |
| Debt securities available-for-sale, at fair value | 758,683 | | 765,213 | | 780,379 | | 737,658 | | 723,453 | |
| Debt securities held-to-maturity, at amortized cost; fair value of: $500,859 at September 30, 2025, $499,833 at June 30, 2025, $511,717 at March 31, 2025, $506,681 at December 31, 2024, and $546,990 at September 30, 2024 | 570,886 | | 580,476 | | 589,688 | | 596,930 | | 606,117 | |
| Total investment securities | 1,329,569 | | 1,345,689 | | 1,370,067 | | 1,334,588 | | 1,329,570 | |
| Loans held for sale | 1,557 | | - | | 2,788 | | 5,662 | | 1,609 | |
| Loans, net of deferred fees and costs | 5,367,202 | | 5,289,809 | | 5,334,547 | | 5,332,852 | | 5,342,609 | |
| Less: allowance for credit losses | (60,393) | | (59,611) | | (60,469) | | (59,182) | | (61,647) | |
| Loans, net of allowance for credit losses | 5,306,809 | | 5,230,198 | | 5,274,078 | | 5,273,670 | | 5,280,962 | |
| Premises and equipment, net | 100,992 | | 103,657 | | 103,490 | | 104,342 | | 104,575 | |
| Accrued interest receivable | 25,232 | | 23,518 | | 24,743 | | 23,378 | | 23,942 | |
| Investment in unconsolidated entities | 52,987 | | 49,370 | | 50,885 | | 52,417 | | 54,836 | |
| Mortgage servicing rights | 8,459 | | 8,436 | | 8,418 | | 8,473 | | 8,513 | |
| Bank-owned life insurance | 179,743 | | 177,639 | | 176,846 | | 176,216 | | 175,914 | |
| Federal Home Loan Bank of Des Moines ("FHLB") and Federal Reserve Bank ("FRB") stock | 25,215 | | 24,816 | | 24,163 | | 6,929 | | 6,929 | |
| Right-of-use lease assets | 25,570 | | 30,693 | | 29,829 | | 30,824 | | 32,192 | |
| Other assets | 55,452 | | 58,581 | | 63,036 | | 74,656 | | 69,819 | |
| Total assets | $7,421,478 | | $7,369,567 | | $7,405,239 | | $7,472,096 | | $7,415,430 | |
| LIABILITIES | | | | | |
| Deposits: | | | | | |
| Noninterest-bearing demand | $1,903,614 | | $1,938,226 | | $1,854,241 | | $1,888,937 | | $1,838,009 | |
| Interest-bearing demand | 1,340,725 | | 1,336,620 | | 1,368,519 | | 1,338,719 | | 1,255,382 | |
| Savings and money market | 2,292,881 | | 2,242,122 | | 2,316,416 | | 2,329,170 | | 2,336,323 | |
| Time | 1,040,464 | | 1,028,021 | | 1,056,872 | | 1,087,185 | | 1,153,299 | |
| Total deposits | 6,577,684 | | 6,544,989 | | 6,596,048 | | 6,644,011 | | 6,583,013 | |
| Long-term debt, net of unamortized debt issuance costs | 131,527 | | 131,466 | | 131,405 | | 156,345 | | 156,284 | |
| Lease liabilities | 26,288 | | 31,981 | | 31,057 | | 32,025 | | 33,807 | |
| Accrued interest payable | 8,604 | | 8,755 | | 8,757 | | 10,051 | | 12,980 | |
| Other liabilities | 89,309 | | 83,502 | | 80,596 | | 91,279 | | 85,621 | |
| Total liabilities | 6,833,412 | | 6,800,693 | | 6,847,863 | | 6,933,711 | | 6,871,705 | |
| EQUITY | | | | | |
| Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024 | - | | - | | - | | - | | - | |
| Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 26,903,512 at September 30, 2025, 26,981,436 at June 30, 2025, 27,061,589 at March 31, 2025, 27,065,570 at December 31, 2024, and 27,064,501 at September 30, 2024 | 397,479 | | 399,823 | | 402,400 | | 404,494 | | 404,494 | |
| Additional paid-in capital | 106,675 | | 106,033 | | 104,849 | | 105,054 | | 104,794 | |
| Retained earnings | 175,968 | | 164,676 | | 153,692 | | 143,259 | | 138,951 | |
| Accumulated other comprehensive loss | (92,056) | | (101,658) | | (103,565) | | (114,422) | | (104,514) | |
| Total equity | 588,066 | | 568,874 | | 557,376 | | 538,385 | | 543,725 | |
| Total liabilities and equity | $7,421,478 | | $7,369,567 | | $7,405,239 | | $7,472,096 | | $7,415,430 | |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Statements of Income
TABLE 3
| Three Months Ended | Nine Months Ended |
|---|
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Sep 30, |
|---|
| (Dollars in thousands, except per share data) | | 2025 | | 2025 | | 2025 | | 2024 | | 2024 | | 2025 | | 2024 |
| Interest income: | | | | | | | |
| Interest and fees on loans | $67,222 | | $65,668 | | $64,119 | | $65,482 | | $65,469 | | $197,009 | | $192,710 | |
| Interest and dividends on investment securities: | | | | | | | |
| Taxable investment securities | 9,776 | | 9,871 | | 9,801 | | 8,626 | | 8,975 | | 29,448 | | 24,652 | |
| Tax-exempt investment securities | 709 | | 709 | | 708 | | 723 | | 551 | | 2,126 | | 1,804 | |
| Interest on deposits in other financial institutions | 1,857 | | 1,484 | | 2,254 | | 3,004 | | 2,775 | | 5,595 | | 8,589 | |
| Dividend income on FHLB and FRB stock | 395 | | 388 | | 324 | | 125 | | 127 | | 1,107 | | 384 | |
| Total interest income | 79,959 | | 78,120 | | 77,206 | | 77,960 | | 77,897 | | 235,285 | | 228,139 | |
| Interest expense: | | | | | | | |
| Interest on deposits: | | | | | | | |
| Interest-bearing demand | 490 | | 443 | | 452 | | 686 | | 484 | | 1,385 | | 1,473 | |
| Savings and money market | 8,898 | | 8,414 | | 8,862 | | 9,388 | | 10,235 | | 26,174 | | 27,655 | |
| Time | 7,410 | | 7,616 | | 8,107 | | 9,881 | | 11,040 | | 23,133 | | 36,203 | |
| Interest on FHLB advances and other short-term borrowings | - | | - | | - | | - | | - | | - | | 1 | |
| Interest on long-term debt | 1,860 | | 1,851 | | 2,086 | | 2,231 | | 2,287 | | 5,797 | | 6,848 | |
| Total interest expense | 18,658 | | 18,324 | | 19,507 | | 22,186 | | 24,046 | | 56,489 | | 72,180 | |
| Net interest income | 61,301 | | 59,796 | | 57,699 | | 55,774 | | 53,851 | | 178,796 | | 155,959 | |
| Provision for credit losses | 4,157 | | 4,987 | | 4,172 | | 818 | | 2,833 | | 13,316 | | 9,008 | |
| Net interest income after provision for credit losses | 57,144 | | 54,809 | | 53,527 | | 54,956 | | 51,018 | | 165,480 | | 146,951 | |
| Other operating income: | | | | | | | |
| Mortgage banking income | 958 | | 744 | | 597 | | 913 | | 822 | | 2,299 | | 2,475 | |
| Service charges on deposit accounts | 2,330 | | 2,124 | | 2,147 | | 2,251 | | 2,167 | | 6,601 | | 6,405 | |
| Other service charges and fees | 6,472 | | 5,957 | | 5,766 | | 5,476 | | 5,947 | | 18,195 | | 17,077 | |
| Income from fiduciary activities | 1,547 | | 1,501 | | 1,624 | | 1,430 | | 1,447 | | 4,672 | | 4,331 | |
| Income from bank-owned life insurance | 1,879 | | 2,260 | | 497 | | 1,966 | | 1,897 | | 4,636 | | 4,653 | |
| Net loss on sales of investment securities | (30) | | - | | - | | (9,934) | | - | | (30) | | - | |
| Other | 351 | | 427 | | 465 | | 522 | | 454 | | 1,243 | | 1,158 | |
| Total other operating income | 13,507 | | 13,013 | | 11,096 | | 2,624 | | 12,734 | | 37,616 | | 36,099 | |
| Other operating expense: | | | | | | | |
| Salaries and employee benefits | 24,749 | | 22,696 | | 21,819 | | 21,661 | | 22,299 | | 69,264 | | 64,280 | |
| Net occupancy | 4,598 | | 4,253 | | 4,392 | | 4,192 | | 4,612 | | 13,243 | | 13,809 | |
| Computer software | 5,151 | | 5,320 | | 4,714 | | 4,757 | | 4,590 | | 15,185 | | 13,258 | |
| Legal and professional services | 2,669 | | 2,873 | | 2,798 | | 2,504 | | 2,460 | | 8,340 | | 7,286 | |
| Equipment | 867 | | 950 | | 1,082 | | 904 | | 972 | | 2,899 | | 2,977 | |
| Advertising | 730 | | 832 | | 887 | | 911 | | 889 | | 2,449 | | 2,704 | |
| Communication | 791 | | 901 | | 1,033 | | 943 | | 740 | | 2,725 | | 2,234 | |
| Other | 7,454 | | 6,121 | | 5,347 | | 8,305 | | 10,125 | | 18,922 | | 21,866 | |
| Total other operating expense | 47,009 | | 43,946 | | 42,072 | | 44,177 | | 46,687 | | 133,027 | | 128,414 | |
| Income before income taxes | 23,642 | | 23,876 | | 22,551 | | 13,403 | | 17,065 | | 70,069 | | 54,636 | |
| Income tax expense | 5,068 | | 5,605 | | 4,791 | | 2,058 | | 3,760 | | 15,464 | | 12,569 | |
| Net income | $18,574 | | $18,271 | | $17,760 | | $11,345 | | $13,305 | | $54,605 | | $42,067 | |
| Per common share data: | | | | | | | |
| Basic earnings per share | $0.69 | | $0.68 | | $0.66 | | $0.42 | | $0.49 | | $2.02 | | $1.55 | |
| Diluted earnings per share | 0.69 | | 0.67 | | 0.65 | | 0.42 | | 0.49 | | 2.01 | | 1.55 | |
| Cash dividends declared | 0.27 | | 0.27 | | 0.27 | | 0.26 | | 0.26 | | 0.81 | | 0.78 | |
| Basic weighted average shares outstanding | 26,968,163 | | 26,988,169 | | 27,087,154 | | 27,065,047 | | 27,064,035 | | 27,014,059 | | 27,054,737 | |
| Diluted weighted average shares outstanding | 27,083,280 | | 27,069,677 | | 27,213,406 | | 27,221,121 | | 27,194,625 | | 27,118,824 | | 27,137,985 | |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)
TABLE 4
| Three Months Ended | Three Months Ended | Three Months Ended |
|---|
| September 30, 2025 | June 30, 2025 | September 30, 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 | $167,247 | 4.41% | $1,857 | $134,270 | 4.43% | $1,484 | $203,657 | 5.42% | $2,775 |
| Investment securities: | | | | | | | | | |
| Taxable | 1,348,314 | 2.90 | 9,776 | 1,379,213 | 2.86 | 9,871 | 1,340,347 | 2.68 | 8,975 |
| Tax-exempt [1] | 138,470 | 2.59 | 898 | 139,103 | 2.58 | 897 | 141,168 | 1.98 | 697 |
| Total investment securities | 1,486,784 | 2.87 | 10,674 | 1,518,316 | 2.84 | 10,768 | 1,481,515 | 2.61 | 9,672 |
| Loans, including loans held for sale | 5,332,656 | 5.01 | 67,222 | 5,307,946 | 4.96 | 65,668 | 5,330,810 | 4.89 | 65,469 |
| FHLB and FRB stock | 25,066 | 6.30 | 395 | 24,565 | 6.33 | 388 | 6,928 | 7.31 | 127 |
| Total interest-earning assets | 7,011,753 | 4.55 | 80,148 | 6,985,097 | 4.49 | 78,308 | 7,022,910 | 4.43 | 78,043 |
| Noninterest-earning assets | 329,528 | | | 329,047 | | | 324,493 | | |
| Total assets | $7,341,281 | | | $7,314,144 | | | $7,347,403 | | |
| LIABILITIES AND EQUITY |
| Interest-bearing liabilities: | | | | | | | | | |
| Interest-bearing demand deposits | $1,358,837 | 0.14% | $490 | $1,357,049 | 0.13% | $443 | $1,267,135 | 0.15% | $484 |
| Savings and money market deposits | 2,293,452 | 1.54 | 8,898 | 2,275,799 | 1.48 | 8,414 | 2,298,853 | 1.77 | 10,235 |
| Time deposits up to $250,000 | 437,192 | 2.28 | 2,509 | 439,738 | 2.32 | 2,546 | 534,497 | 3.15 | 4,238 |
| Time deposits over $250,000 | 586,251 | 3.32 | 4,901 | 603,652 | 3.37 | 5,070 | 647,728 | 4.18 | 6,802 |
| Total interest-bearing deposits | 4,675,732 | 1.43 | 16,798 | 4,676,238 | 1.41 | 16,473 | 4,748,213 | 1.82 | 21,759 |
| Long-term debt | 131,493 | 5.61 | 1,860 | 131,431 | 5.65 | 1,851 | 156,247 | 5.82 | 2,287 |
| Total interest-bearing liabilities | 4,807,225 | 1.54 | 18,658 | 4,807,669 | 1.53 | 18,324 | 4,904,460 | 1.95 | 24,046 |
| Noninterest-bearing deposits | 1,833,960 | | | 1,827,225 | | | 1,787,209 | | |
| Other liabilities | 123,565 | | | 119,002 | | | 124,806 | | |
| Total liabilities | 6,764,750 | | | 6,753,896 | | | 6,816,475 | | |
| Total equity | 576,531 | | | 560,248 | | | 530,928 | | |
| Total liabilities and equity | $7,341,281 | | | $7,314,144 | | | $7,347,403 | | |
| Net interest income (taxable-equivalent) | | | 61,490 | | | 59,984 | | | 53,997 |
| Taxable-equivalent adjustment | | | (189) | | | (188) | | | (146) |
| Net interest income (GAAP) | | | $61,301 | | | $59,796 | | | $53,851 |
| Interest rate spread | | 3.01% | | | 2.96% | | | 2.48% | |
| Net interest margin (taxable-equivalent) | | 3.49% | | | 3.44% | | | 3.07% | |
| [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)
TABLE 5
| Nine Months Ended | Nine Months Ended |
|---|
| September 30, 2025 | September 30, 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 | $169,066 | 4.42% | $5,595 | $210,464 | 5.45% | $8,589 |
| Investment securities: | | | | | | |
| Taxable | 1,367,968 | 2.87 | 29,448 | 1,333,394 | 2.47 | 24,652 |
| Tax-exempt [1] | 139,050 | 2.58 | 2,691 | 142,085 | 2.14 | 2,284 |
| Total investment securities | 1,507,018 | 2.84 | 32,139 | 1,475,479 | 2.43 | 26,936 |
| Loans, including loans held for sale | 5,317,481 | 4.95 | 197,009 | 5,372,247 | 4.79 | 192,710 |
| FHLB and FRB stock | 23,392 | 6.31 | 1,107 | 6,885 | 7.43 | 384 |
| Total interest-earning assets | 7,016,957 | 4.49 | 235,850 | 7,065,075 | 4.32 | 228,619 |
| Noninterest-earning assets | 330,938 | | | 313,404 | | |
| Total assets | $7,347,895 | | | $7,378,479 | | |
| LIABILITIES AND EQUITY |
| Interest-bearing liabilities: | | | | | | |
| Interest-bearing demand deposits | $1,357,095 | 0.14% | $1,385 | $1,279,256 | 0.15% | $1,473 |
| Savings and money market deposits | 2,304,708 | 1.52 | 26,174 | 2,246,478 | 1.64 | 27,655 |
| Time deposits up to $250,000 | 444,726 | 2.37 | 7,887 | 544,823 | 3.22 | 13,125 |
| Time deposits over $250,000 | 597,876 | 3.41 | 15,246 | 714,763 | 4.31 | 23,078 |
| Total interest-bearing deposits | 4,704,405 | 1.44 | 50,692 | 4,785,320 | 1.82 | 65,331 |
| FHLB advances and other short-term borrowings | - | - | - | 22 | 5.60 | 1 |
| Long-term debt | 138,298 | 5.60 | 5,797 | 156,188 | 5.86 | 6,848 |
| Total interest-bearing liabilities | 4,842,703 | 1.56 | 56,489 | 4,941,530 | 1.95 | 72,180 |
| Noninterest-bearing deposits | 1,820,158 | | | 1,793,854 | | |
| Other liabilities | 124,363 | | | 129,181 | | |
| Total liabilities | 6,787,224 | | | 6,864,565 | | |
| Total equity | 560,671 | | | 513,914 | | |
| Total liabilities and equity | $7,347,895 | | | $7,378,479 | | |
| Net interest income (taxable-equivalent) | | | 179,361 | | | 156,439 |
| Taxable-equivalent adjustment | | | (565) | | | (480) |
| Net interest income (GAAP) | | | $178,796 | | | $155,959 |
| Interest rate spread | | 2.93% | | | 2.37% | |
| Net interest margin (taxable-equivalent) | | 3.41% | | | 2.95% | |
| [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 Geographic Distribution
TABLE 6
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, |
|---|
| (Dollars in thousands) | | 2025 | | 2025 | | 2025 | | 2024 | | 2024 |
| HAWAII: | | | | | |
| Commercial and industrial | $464,797 | | $455,372 | | $461,020 | | $430,167 | | $411,209 | |
| Construction | 176,067 | | 172,382 | | 159,081 | | 145,182 | | 134,043 | |
| Residential mortgage | 1,839,535 | | 1,851,690 | | 1,870,239 | | 1,892,520 | | 1,897,919 | |
| Home equity | 610,889 | | 627,834 | | 655,237 | | 676,982 | | 697,123 | |
| Commercial mortgage | 1,169,568 | | 1,161,244 | | 1,174,573 | | 1,165,060 | | 1,157,625 | |
| Consumer | 223,065 | | 224,085 | | 219,941 | | 274,712 | | 277,849 | |
| Total loans, net of deferred fees and costs | 4,483,921 | | 4,492,607 | | 4,540,091 | | 4,584,623 | | 4,575,768 | |
| Less: Allowance for credit losses | (44,762) | | (44,372) | | (45,937) | | (45,967) | | (47,789) | |
| Loans, net of allowance for credit losses | $4,439,159 | | $4,448,235 | | $4,494,154 | | $4,538,656 | | $4,527,979 | |
| U.S. MAINLAND: [1] | | | | | |
| Commercial and industrial | $144,017 | | $152,758 | | $173,600 | | $176,769 | | $188,238 | |
| Construction | 41,543 | | 17,626 | | 1,011 | | 29 | | 24,083 | |
| Commercial mortgage | 443,619 | | 379,279 | | 377,866 | | 335,620 | | 312,685 | |
| Consumer | 254,102 | | 247,539 | | 241,979 | | 235,811 | | 241,835 | |
| Total loans, net of deferred fees and costs | 883,281 | | 797,202 | | 794,456 | | 748,229 | | 766,841 | |
| Less: Allowance for credit losses | (15,631) | | (15,239) | | (14,532) | | (13,215) | | (13,858) | |
| Loans, net of allowance for credit losses | $867,650 | | $781,963 | | $779,924 | | $735,014 | | $752,983 | |
| TOTAL: | | | | | |
| Commercial and industrial | $608,814 | | $608,130 | | $634,620 | | $606,936 | | $599,447 | |
| Construction | 217,610 | | 190,008 | | 160,092 | | 145,211 | | 158,126 | |
| Residential mortgage | 1,839,535 | | 1,851,690 | | 1,870,239 | | 1,892,520 | | 1,897,919 | |
| Home equity | 610,889 | | 627,834 | | 655,237 | | 676,982 | | 697,123 | |
| Commercial mortgage | 1,613,187 | | 1,540,523 | | 1,552,439 | | 1,500,680 | | 1,470,310 | |
| Consumer | 477,167 | | 471,624 | | 461,920 | | 510,523 | | 519,684 | |
| Total loans, net of deferred fees and costs | 5,367,202 | | 5,289,809 | | 5,334,547 | | 5,332,852 | | 5,342,609 | |
| Less: Allowance for credit losses | (60,393) | | (59,611) | | (60,469) | | (59,182) | | (61,647) | |
| Loans, net of allowance for credit losses | $5,306,809 | | $5,230,198 | | $5,274,078 | | $5,273,670 | | $5,280,962 | |
| [1] U.S. Mainland includes territories of the United States. |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Deposits
TABLE 7
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, |
|---|
| (Dollars in thousands) | | 2025 | | 2025 | | 2025 | | 2024 | | 2024 |
| Noninterest-bearing demand | $1,903,614 | | $1,938,226 | | $1,854,241 | | $1,888,937 | | $1,838,009 | |
| Interest-bearing demand | 1,340,725 | | 1,336,620 | | 1,368,519 | | 1,338,719 | | 1,255,382 | |
| Savings and money market | 2,292,881 | | 2,242,122 | | 2,316,416 | | 2,329,170 | | 2,336,323 | |
| Time deposits up to $250,000 | 444,005 | | 439,687 | | 436,437 | | 483,378 | | 536,316 | |
| Core deposits | 5,981,225 | | 5,956,655 | | 5,975,613 | | 6,040,204 | | 5,966,030 | |
| Other time deposits greater than $250,000 | 458,339 | | 459,945 | | 475,861 | | 500,693 | | 492,221 | |
| Government time deposits | 138,120 | | 128,389 | | 144,574 | | 103,114 | | 124,762 | |
| Total time deposits greater than $250,000 | 596,459 | | 588,334 | | 620,435 | | 603,807 | | 616,983 | |
| Total deposits | $6,577,684 | | $6,544,989 | | $6,596,048 | | $6,644,011 | | $6,583,013 | |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Nonperforming Assets and Accruing Loans 90+ Days Past Due
TABLE 8
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, |
|---|
| (Dollars in thousands) | | 2025 | | 2025 | | 2025 | | 2024 | | 2024 |
| Nonaccrual loans: | | | | | |
| Commercial and industrial | $357 | | $110 | | $531 | | $414 | | $376 | |
| Real estate: | | | | | |
| Residential mortgage | 11,413 | | 12,327 | | 9,199 | | 9,044 | | 9,680 | |
| Home equity | 2,119 | | 1,889 | | 746 | | 952 | | 915 | |
| Commercial mortgage | - | | - | | - | | - | | - | |
| Consumer | 430 | | 569 | | 609 | | 608 | | 626 | |
| Total nonaccrual loans | 14,319 | | 14,895 | | 11,085 | | 11,018 | | 11,597 | |
| Other real estate owned ("OREO") | - | | - | | - | | - | | - | |
| Total nonperforming assets ("NPAs") | 14,319 | | 14,895 | | 11,085 | | 11,018 | | 11,597 | |
| Accruing loans 90+ days past due: | | | | | |
| Real estate: | | | | | |
| Residential mortgage | 1,159 | | 1,625 | | - | | 323 | | 13 | |
| Home equity | - | | 21 | | 87 | | 78 | | 135 | |
| Consumer | 349 | | 418 | | 670 | | 373 | | 481 | |
| Total accruing loans 90+ days past due | 1,508 | | 2,064 | | 757 | | 774 | | 629 | |
| Total NPAs and accruing loans 90+ days past due | $15,827 | | $16,959 | | $11,842 | | $11,792 | | $12,226 | |
| Ratio of total nonaccrual loans to total loans | 0.27% | | 0.28% | | 0.21% | | 0.21% | | 0.22% | |
| Ratio of total NPAs to total assets | 0.19 | | 0.20 | | 0.15 | | 0.15 | | 0.16 | |
| Ratio of total NPAs to total loans and OREO | 0.27 | | 0.28 | | 0.21 | | 0.21 | | 0.22 | |
| Ratio of total NPAs and accruing loans 90+ days past due to total loans and OREO | 0.29 | | 0.32 | | 0.22 | | 0.22 | | 0.23 | |
| Quarter-to-quarter changes in NPAs: | | | | | |
| Balance at beginning of quarter | $14,895 | | $11,085 | | $11,018 | | $11,597 | | $10,257 | |
| Additions | 838 | | 5,879 | | 2,397 | | 1,436 | | 3,484 | |
| Reductions: | | | | | |
| Payments | (286) | | (585) | | (614) | | (763) | | (602) | |
| Return to accrual status | (821) | | (861) | | (558) | | (71) | | (354) | |
| Charge-offs, valuation adjustments and other reductions | (307) | | (623) | | (1,158) | | (1,181) | | (1,188) | |
| Total reductions | (1,414) | | (2,069) | | (2,330) | | (2,015) | | (2,144) | |
| Balance at end of quarter | $14,319 | | $14,895 | | $11,085 | | $11,018 | | $11,597 | |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Allowance for Credit Losses on Loans
TABLE 9
| Three Months Ended | Nine Months Ended |
|---|
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | Sep 30, |
|---|
| (Dollars in thousands) | | 2025 | | 2025 | | 2025 | | 2024 | | 2024 | | 2025 | | 2024 |
| Allowance for credit losses ("ACL") on loans: | | | | | | | |
| Balance at beginning of period | $59,611 | | $60,469 | | $59,182 | | $61,647 | | $62,225 | | $59,182 | | $63,934 | |
| Provision for credit losses on loans | 3,440 | | 3,810 | | 3,905 | | 1,353 | | 3,040 | | 11,155 | | 9,609 | |
| Charge-offs: | | | | | | | |
| Commercial and industrial | (1,071) | | (2,858) | | (580) | | (1,113) | | (663) | | (4,509) | | (1,864) | |
| Real estate: | | | | | | | |
| Residential mortgage | - | | - | | - | | - | | (99) | | - | | (383) | |
| Consumer | (2,824) | | (2,864) | | (2,977) | | (3,727) | | (3,956) | | (8,665) | | (13,139) | |
| Total charge-offs | (3,895) | | (5,722) | | (3,557) | | (4,840) | | (4,718) | | (13,174) | | (15,386) | |
| Recoveries: | | | | | | | |
| Commercial and industrial | 204 | | 195 | | 171 | | 158 | | 158 | | 570 | | 378 | |
| Real estate: | | | | | | | |
| Construction | - | | 3 | | - | | - | | - | | 3 | | - | |
| Residential mortgage | 8 | | 7 | | 10 | | 11 | | 8 | | 25 | | 25 | |
| Home equity | 9 | | 9 | | 3 | | - | | - | | 21 | | 6 | |
| Consumer | 1,016 | | 840 | | 755 | | 853 | | 934 | | 2,611 | | 3,081 | |
| Total recoveries | 1,237 | | 1,054 | | 939 | | 1,022 | | 1,100 | | 3,230 | | 3,490 | |
| Net charge-offs | (2,658) | | (4,668) | | (2,618) | | (3,818) | | (3,618) | | (9,944) | | (11,896) | |
| Balance at end of period | $60,393 | | $59,611 | | $60,469 | | $59,182 | | $61,647 | | $60,393 | | $61,647 | |
| Average loans, net of deferred fees and costs | $5,332,656 | | $5,307,946 | | $5,311,610 | | $5,315,802 | | $5,330,810 | | $5,317,481 | | $5,372,247 | |
| Ratio of annualized net charge-offs to average loans | 0.20% | | 0.35% | | 0.20% | | 0.29% | | 0.27% | | 0.25% | | 0.30% | |
| Ratio of ACL to total loans | 1.13 | | 1.13 | | 1.13 | | 1.11 | | 1.15 | | 1.13 | | 1.15 | |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
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 during the three months ended September 30, 2025, and (2) pre-tax expenses of $3.1 million related to the evaluation and assessment of a strategic opportunity during 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 | |
|---|
| September 30, 2025 | September 30, 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 | $18,574 | $1,167 | $19,741 | $13,305 | $2,362 | $15,667 |
| Diluted earnings per share ("EPS") | $0.69 | $0.04 | $0.73 | $0.49 | $0.09 | $0.58 |
| Efficiency ratio (non-GAAP) | 62.84% | (2.03)% | 60.81% | 70.12% | (4.61)% | 65.51% |
| Return on average assets ("ROA") | 1.01% | 0.07% | 1.08% | 0.72% | 0.13% | 0.85% |
| Return on average equity ("ROE") | 12.89% | 0.78% | 13.67% | 10.02% | 1.73% | 11.75% |
| As of September 30, 2025 and 2024: | | | | | | |
| Tangible common equity ("TCE") ratio (non-GAAP) | 7.92% | 0.02% | 7.94% | 7.31% | 0.03% | 7.34% |
| Nine Months Ended September 30, 2025 | Nine Months Ended September 30, 2024 |
|---|
| (dollars in thousands, | | | Non-GAAP | | | Non-GAAP |
| except per share data) | Reported | Adjustment | Adjusted | Reported | Adjustment | Adjusted |
| Financial measures: | | | | | | |
| Net income | $54,605 | $1,167 | $55,772 | $42,067 | $2,362 | $44,429 |
| EPS | $2.01 | $0.05 | $2.06 | $1.55 | $0.09 | $1.64 |
| Efficiency ratio (non-GAAP) | 61.47% | (0.70)% | 60.77% | 66.86% | (1.60)% | 65.26% |
| ROA | 0.99% | 0.02% | 1.01% | 0.76% | 0.04% | 0.80% |
| ROE | 12.99% | 0.26% | 13.25% | 10.91% | 0.61% | 11.52% |
| As of September 30, 2025 and 2024: | | | | | | |
| TCE ratio (non-GAAP) | 7.92% | 0.02% | 7.94% | 7.31% | 0.03% | 7.34% |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
TABLE 10 (CONTINUED)
The following table presents a reconciliation of the non-GAAP adjusted net income and adjusted EPS for the periods indicated, excluding the reconciling adjustments discussed above.
| Three Months Ended | Nine Months Ended | |
|---|
| (dollars in thousands, except per share data) | September 30, 2025 | | September 30, 2024 | September 30, 2025 | September 30, 2024 |
| GAAP net income | $18,574 | | $13,305 | $54,605 | $42,067 |
| Add: Expenses related to the consolidation of operations center | 1,516 | | - | 1,516 | - |
| Add: Expenses related to a strategic opportunity | - | | 3,068 | - | 3,068 |
| Non-GAAP pre-tax adjustments | 1,516 | | 3,068 | 1,516 | 3,068 |
| Less: Income tax effect (assumes 23% ETR) | (349) | | (706) | (349) | (706) |
| Non-GAAP adjustments, net of tax | 1,167 | | 2,362 | 1,167 | 2,362 |
| Adjusted net income (non-GAAP) | $19,741 | | $15,667 | $55,772 | $44,429 |
| Diluted weighted average shares outstanding | 27,083,280 | | 27,194,625 | 27,118,824 | 27,137,985 |
| GAAP EPS | $0.69 | | $0.49 | $2.01 | $1.55 |
| Add: Non-GAAP adjustments, net of tax | 0.04 | | 0.09 | 0.05 | 0.09 |
| Adjusted EPS (non-GAAP) | $0.73 | | $0.58 | $2.06 | $1.64 |
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 | Nine Months Ended | |
|---|
| (dollars in thousands) | Sep 30, 2025 | | Sep 30, 2024 | Sep 30, 2025 | Sep 30, 2024 |
| Total other operating expense | $47,009 | | $46,687 | $133,027 | $128,414 |
| Less: Expenses related to the consolidation of operations center | (1,516) | | - | (1,516) | - |
| Less: Expenses related to a strategic opportunity | - | | (3,068) | - | (3,068) |
| Non-GAAP other operating expense adjustments | (1,516) | | (3,068) | (1,516) | (3,068) |
| Adjusted total other operating expense (non-GAAP) | $45,493 | | $43,619 | $131,511 | $125,346 |
| Net interest income | $61,301 | | $53,851 | $178,796 | $155,959 |
| Total other operating income | 13,507 | | 12,734 | 37,616 | 36,099 |
| Total revenue | $74,808 | | $66,585 | $216,412 | $192,058 |
| Efficiency ratio (non-GAAP) | 62.84% | | 70.12% | 61.47% | 66.86% |
| Less: Non-GAAP pre-tax adjustments | (2.03)% | | (4.61)% | (0.70)% | (1.60)% |
| Adjusted efficiency ratio (non-GAAP) | 60.81% | | 65.51% | 60.77% | 65.26% |
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
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 | Nine Months Ended | |
|---|
| (dollars in thousands) | September 30, 2025 | | September 30, 2024 | September 30, 2025 | September 30, 2024 |
| Average assets | $7,341,281 | | $7,347,403 | $7,347,895 | $7,378,479 |
| Add: Non-GAAP adjustments, net of tax | 1,167 | | 2,362 | 389 | 787 |
| Adjusted average assets (non-GAAP) | $7,342,448 | | $7,349,765 | $7,348,284 | $7,379,266 |
| ROA | 1.01% | | 0.72% | 0.99% | 0.76% |
| Add: Non-GAAP adjustments, net of tax | 0.07 | | 0.13 | 0.02 | 0.04 |
| Adjusted ROA (non-GAAP) | 1.08% | | 0.85% | 1.01% | 0.80% |
| Average equity | $576,531 | | $530,928 | $560,671 | $513,914 |
| Add: Non-GAAP adjustments, net of tax | 1,167 | | 2,362 | 389 | 787 |
| Adjusted average equity (non-GAAP) | $577,698 | | $533,290 | $561,060 | $514,701 |
| ROE | 12.89% | | 10.02% | 12.99% | 10.91% |
| Add: Non-GAAP adjustments, net of tax | 0.78 | | 1.73 | 0.26 | 0.61 |
| Adjusted ROE (non-GAAP) | 13.67% | | 11.75% | 13.25% | 11.52% |
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) | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 |
| Total equity | $588,066 | $568,874 | $557,376 | $538,385 | $543,725 |
| Less: Intangible assets | - | - | - | - | (1,390) |
| TCE | $588,066 | $568,874 | $557,376 | $538,385 | $542,335 |
| Add: Non-GAAP adjustments, net of tax | 1,167 | - | - | 10,011 | 2,362 |
| Adjusted TCE (non-GAAP) | $589,233 | $568,874 | $557,376 | $548,396 | $544,697 |
| Total assets | $7,421,478 | $7,369,567 | $7,405,239 | $7,472,096 | $7,415,430 |
| Less: Intangible assets | - | - | - | - | (1,390) |
| Tangible assets | $7,421,478 | $7,369,567 | $7,405,239 | $7,472,096 | $7,414,040 |
| Add: Non-GAAP adjustments, net of tax | 1,167 | - | - | 10,011 | 2,362 |
| Adjusted tangible assets (non-GAAP) | $7,422,645 | $7,369,567 | $7,405,239 | $7,482,107 | $7,416,402 |
| TCE ratio (non-GAAP) | 7.92% | 7.72% | 7.53% | 7.21% | 7.31% |
| Add: Non-GAAP adjustments, net of tax | 0.02 | - | - | 0.12 | 0.03 |
| Adjusted TCE ratio (non-GAAP) | 7.94% | 7.72% | 7.53% | 7.33% | 7.34% |
Contacts
Jayrald Rabago · Senior Strategic Financial Officer · (808) 544-3556 · jayrald.rabago@cpb.bank
Tim Sakahara · Corporate Communications Manager · (808) 544-5125 · tim.sakahara@cpb.bank