CENTRAL PACIFIC FINANCIAL REPORTS SECOND QUARTER 2025 EARNINGS OF $18.3 MILLION
Highlights include:
•Net income of $18.3 million, or $0.67 per diluted share
•Return on average assets of 1.00% and return on average equity of 13.04%
•Efficiency ratio improved to 60.36%
•Net interest margin of 3.44% increased by 13 bps from 3.31% in the previous quarter
•Total risk-based capital and common equity tier 1 ratios of 15.8% and 12.6%, respectively
•The CPF Board of Directors approved a quarterly cash dividend of $0.27 per share
•CPB was named Best Bank In Hawaii by Forbes Magazine in 2025. This is the fourth consecutive year the Bank has made the Forbes list.
HONOLULU, HI, July 25, 2025 – Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), today reported net income of $18.3 million, or fully diluted earnings per share ("EPS") of $0.67 for the second quarter of 2025, compared to net income of $17.8 million, or EPS of $0.65 in the previous quarter and net income of $15.8 million, or EPS of $0.58 in the year-ago quarter.
"Our second quarter financial results demonstrate the continued strength of our core business and ability to execute effectively in a dynamic market environment," stated Arnold Martines, Chairman, President and CEO. "The bank's strong asset quality, capital, and liquidity positions will enable us to grow our business by continuing to support the needs of our customers and the markets we serve. I want to thank our dedicated employees, customers and community for your continued support of our bank."
Earnings Highlights
Net interest income was $59.8 million for the second quarter of 2025, which increased by $2.1 million, or 3.6% from the previous quarter, and increased by $7.9 million, or 15.2% from the year-ago quarter. Net interest margin ("NIM") was 3.44% for the second quarter of 2025, an increase of 13 basis points ("bp" or "bps") from the previous quarter and an increase of 47 bps from the year-ago quarter. The sequential quarter increase in net interest income and NIM was primarily due to higher average yields earned on loans of 8 bps and investment securities of 2 bps, combined with a 7 bps decline in average rates paid on interest-bearing deposits. Interest income on investment securities also included $0.7 million in income from an interest rate swap in both the first and second quarters of 2025.
Central Pacific Financial Reports Second Quarter 2025 Earnings of $18.3 Million
Page 2
The Company recorded a provision for credit losses of $5.0 million in the second quarter of 2025, compared to a provision of $4.2 million in the previous quarter and a provision of $2.2 million in the year-ago quarter. The provision in the current quarter consisted of a provision for credit losses on loans of $3.8 million and a provision for off-balance sheet exposures of $1.2 million. The increase in the provision from the previous quarter was primarily driven by higher off-balance sheet credit exposure related to new unfunded loan commitments.
Other operating income totaled $13.0 million for the second quarter of 2025, compared to $11.1 million in the previous quarter and $12.1 million in the year-ago quarter. The increase in other operating income from the previous quarter was primarily due to higher income from bank-owned life insurance of $1.8 million.
Other operating expense totaled $43.9 million for the second quarter of 2025, compared to $42.1 million in the previous quarter and $41.2 million in the year-ago quarter. The increase in other operating expense from the previous quarter was primarily due to higher salaries and employee benefits of $0.9 million, higher computer software expense of $0.6 million, and higher directors' deferred compensation plan expense of $0.5 million (included in other).
The efficiency ratio improved to 60.36% for the second quarter of 2025, compared to 61.16% in the previous quarter and 64.26% in the year-ago quarter.
The effective tax rate was 23.5% for the second quarter of 2025, compared to 21.2% in the previous quarter and 23.4% in the year-ago quarter. The increase in the effective tax rate in the second quarter of 2025 was primarily attributable to discrete items that lowered the rate in the prior quarter.
Balance Sheet Highlights
Total assets of $7.37 billion at June 30, 2025 reflected a decrease of $35.7 million, or 0.5% from $7.41 billion at March 31, 2025, and a decrease of $17.4 million, or 0.2% from $7.39 billion at June 30, 2024.
Total loans, net of deferred fees and costs, of $5.29 billion at June 30, 2025 decreased by $44.7 million, or 0.8% from $5.33 billion at March 31, 2025, and decreased by $93.8 million, or 1.7% from $5.38 billion at June 30, 2024. Average yield earned on loans during the second quarter of 2025 was 4.96%, compared to 4.88% in the previous quarter and 4.80% in the year-ago quarter.
Total deposits of $6.54 billion at June 30, 2025 decreased by $51.1 million or 0.8% from $6.60 billion at March 31, 2025, and decreased by $37.5 million, or 0.6% from $6.58 billion at June 30, 2024. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $5.96 billion at June 30, 2025, and decreased by $19.0 million, or 0.3% from $5.98 billion at March 31, 2025, and increased by $44.5 million, or 0.8% from $5.91 billion at June 30, 2024. Average rate paid on total deposits during the second quarter of 2025 was 1.02%, compared to 1.08% in the previous quarter and 1.33% in the year-ago quarter.
Asset Quality
Nonperforming assets totaled $14.9 million, or 0.20% of total assets at June 30, 2025, compared to $11.1 million, or 0.15% of total assets at March 31, 2025 and $10.3 million, or 0.14% of total assets at June 30, 2024.
Net charge-offs totaled $4.7 million in the second quarter of 2025, compared to net charge-offs of $2.6 million in the previous quarter, and net charge-offs of $3.8 million in the year-ago quarter. The increase in net charge-offs during the second quarter of 2025 was primarily due to a $2.0 million full charge-off of a commercial and industrial loan. Annualized net charge-offs as a percentage of average loans was 0.35%, 0.20% and 0.28% during the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
The allowance for credit losses, as a percentage of total loans was 1.13% at June 30, 2025, compared to 1.13% at March 31, 2025, and 1.16% at June 30, 2024.
Capital
Total shareholders' equity was $568.9 million at June 30, 2025, compared to $557.4 million and $518.6 million at March 31, 2025 and June 30, 2024, respectively.
During the second quarter of 2025, the Company repurchased 103,077 shares of common stock at a total cost of $2.6 million, or $25.00 per share. As of June 30, 2025, $25.3 million in share repurchase authorization remained available under the Company's share repurchase program.
Central Pacific Financial Reports Second Quarter 2025 Earnings of $18.3 Million
Page 3
The Company's leverage, common equity tier 1, tier 1 risk-based capital, and total risk-based capital ratios were 9.6%, 12.6%, 13.5%, and 15.8%, respectively, at June 30, 2025, compared to 9.4%, 12.4%, 13.4%, and 15.6%, respectively, at March 31, 2025.
On July 24, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.27 per share on its outstanding common shares. The dividend will be payable on September 15, 2025 to shareholders of record at the close of business on August 29, 2025.
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 the quarterly 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 (conference ID: 6299769). A playback of the call will be available through August 24, 2025 by dialing 1-800-770-2030 (playback 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 $7.37 billion in assets as of June 30, 2025. Central Pacific Bank, its primary subsidiary, operates 27 branches and 55 ATMs in the State of Hawaii. Central Pacific Financial Corp. is traded on the New York Stock Exchange (NYSE) under the symbol "CPF." For additional information, please visit: cpb.bank
**********
Central Pacific Financial Reports Second Quarter 2025 Earnings of $18.3 Million
Page 4
Forward-Looking Statements
This document may contain forward-looking statements ("FLS") concerning: 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; statements of 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 and regulatory actions; statements of future economic performance including anticipated performance results from our business initiatives; or any statements of the assumptions underlying or relating to any of the foregoing. Words such as "believe," "plan," "anticipate," "seek," "expect," "intend," "forecast," "hope," "target," "continue," "remain," "estimate," "will," "should," "may" and other similar expressions are intended to identify FLS but are not the exclusive means of identifying such statements.
While we believe that our FLS and the assumptions underlying them are reasonably based, such statements and assumptions are by their nature subject to risks and uncertainties, thus could later prove to be inaccurate or incorrect. Accordingly, actual results could differ materially from those statements or projections for a variety of reasons, including, but not limited to: the effects of the persistence of current inflationary pressures, or the resurgence of elevated levels of inflation in the United States and our market areas, and its impact on market interest rates, the economy and credit quality; the impact of the current U.S. administration’s recent economic policies, including potential international tariffs and other cost cutting initiatives; the adverse effects of bank failures and the potential impact of such developments on customer confidence, deposit behavior, liquidity and regulatory responses thereto; the adverse effects of pandemic viruses (and their variants), epidemics and other public health emergencies on local, national and international economies, including, but not limited to, the adverse impact on tourism and construction in the State of Hawaii, our borrowers, customers, third-party contractors, vendors and employees, as well as the effects of government programs and initiatives in response thereto; supply chain disruptions; labor contract disputes and potential strikes; the increase in inventory or adverse conditions in the real estate market and deterioration in the construction industry; adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality, and losses in our loan portfolio; the impact of local, national, and international economies and events (including natural disasters such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, and earthquakes) on the Company's business and operations and on tourism, the military, and other major industries operating within the Hawaii market and any other markets in which the Company does business; deterioration or malaise in domestic economic conditions, including any destabilization in the financial industry and deterioration of the real estate market, as well as the impact of declining levels of consumer and business confidence in the state of the economy in general and in financial institutions in particular; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, changes in capital standards, other regulatory reform and federal and state legislation, including but not limited to regulations promulgated by the Consumer Financial Protection Bureau, government-sponsored enterprise reform, and any related rules and regulations which affect our business operations and competitiveness; the costs and effects of legal and regulatory developments, including legal proceedings and lawsuits we are or may become subject to, or regulatory or other governmental inquiries and proceedings and the resolution thereof; the results of regulatory examinations or reviews and the effect of, and our ability to comply with, any regulations or regulatory orders or actions we are or may become subject to, and the effect of any recurring or special FDIC assessments; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the PCAOB, the FASB and other accounting standard setters and the cost and resources required to implement such changes; the effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System; securities market and monetary fluctuations, including the impact resulting from the elimination of the LIBOR Index; negative trends in our market capitalization and adverse changes in the price of the Company's common stock; the effects of any potential or actual acquisitions or dispositions we may make or evaluate, and the related costs associated therewith; political instability; acts of war or terrorism or military conflicts domestically or internationally; changes in consumer spending, borrowings and savings habits; technological changes and developments; cybersecurity and data privacy breaches and the consequence therefrom, including those involving our third-party vendors or other service providers; susceptibility of fraud on our business; failure to maintain effective internal control over financial reporting or disclosure controls and procedures; our ability to address deficiencies in our internal controls over financial reporting or disclosure controls and procedures; changes in the competitive environment among financial holding companies and other financial service providers; our ability to successfully implement our initiatives to lower our efficiency ratio; our ability to attract and retain key personnel; changes in our personnel, organization, compensation and benefit plans; our ability to successfully implement and achieve the objectives of our BaaS initiatives, including adoption of the initiatives by customers and risks faced by any of our bank collaborations including reputational and regulatory risk; uncertainty regarding United States fiscal debt, deficit and budget matters; and our success at managing the risks involved in the foregoing items.
For further information with respect to factors that could cause actual results to materially differ from the expectations or projections stated in the FLS, please see the Company's publicly available SEC filings, including the Company's Forms 10-Q and
Central Pacific Financial Reports Second Quarter 2025 Earnings of $18.3 Million
Page 5
10-K for the last fiscal quarter and year and, in particular, 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 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
Six Months Ended
(Dollars in thousands,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Jun 30,
except for per share amounts)
2025
2025
2024
2024
2024
2025
2024
CONDENSED INCOME STATEMENT
Net interest income
$
59,796
$
57,699
$
55,774
$
53,851
$
51,921
$
117,495
$
102,108
Provision for credit losses
4,987
4,172
818
2,833
2,239
9,159
6,175
Total other operating income
13,013
11,096
2,624
12,734
12,121
24,109
23,365
Total other operating expense
43,946
42,072
44,177
46,687
41,151
86,018
81,727
Income tax expense
5,605
4,791
2,058
3,760
4,835
10,396
8,809
Net income
18,271
17,760
11,345
13,305
15,817
36,031
28,762
Basic earnings per share
$
0.68
$
0.66
$
0.42
$
0.49
$
0.58
$
1.33
$
1.06
Diluted earnings per share
0.67
0.65
0.42
0.49
0.58
1.33
1.06
Dividends declared per share
0.27
0.27
0.26
0.26
0.26
0.54
0.52
PERFORMANCE RATIOS
Return on average assets (ROA) [1]
1.00
%
0.96
%
0.62
%
0.72
%
0.86
%
0.98
%
0.78
%
Return on average equity (ROE) [1]
13.04
13.04
8.37
10.02
12.42
13.04
11.38
Average equity to average assets
7.66
7.37
7.35
7.23
6.94
7.52
6.83
Efficiency ratio [2]
60.36
61.16
75.65
70.12
64.26
60.75
65.14
Net interest margin (NIM) [1]
3.44
3.31
3.17
3.07
2.97
3.37
2.90
Dividend payout ratio [3]
40.30
41.54
61.90
53.06
44.83
40.60
49.06
SELECTED AVERAGE BALANCES
Average loans, including loans held for sale
$
5,307,946
$
5,311,610
$
5,315,802
$
5,330,810
$
5,385,829
$
5,309,768
$
5,393,193
Average interest-earning assets
6,985,097
7,054,488
7,052,296
7,022,910
7,032,515
7,019,602
7,086,389
Average assets
7,314,144
7,388,783
7,377,398
7,347,403
7,338,714
7,351,257
7,394,188
Average deposits
6,503,463
6,561,100
6,546,616
6,535,422
6,542,767
6,532,122
6,601,290
Average interest-bearing liabilities
4,807,669
4,914,398
4,906,623
4,904,460
4,910,998
4,860,738
4,960,270
Average equity
560,248
544,888
542,135
530,928
509,507
552,610
505,314
[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)
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
2025
2025
2024
2024
2024
REGULATORY CAPITAL RATIOS
Central Pacific Financial Corp.
Leverage ratio
9.6
%
9.4
%
9.3
%
9.5
%
9.3
%
Common equity tier 1 capital ratio
12.6
12.4
12.3
12.1
11.9
Tier 1 risk-based capital ratio
13.5
13.4
13.2
13.1
12.8
Total risk-based capital ratio
15.8
15.6
15.4
15.3
15.1
Central Pacific Bank
Leverage ratio
10.1
9.8
9.7
9.8
9.6
Common equity tier 1 capital ratio
14.1
14.0
13.8
13.6
13.3
Tier 1 risk-based capital ratio
14.1
14.0
13.8
13.6
13.3
Total risk-based capital ratio
15.3
15.2
14.9
14.8
14.5
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(dollars in thousands, except for per share amounts)
2025
2025
2024
2024
2024
BALANCE SHEET
Total loans, net of deferred fees and costs
$
5,289,809
$
5,334,547
$
5,332,852
$
5,342,609
$
5,383,644
Total assets
7,369,567
7,405,239
7,472,096
7,415,430
7,386,952
Total deposits
6,544,989
6,596,048
6,644,011
6,583,013
6,582,455
Long-term debt
131,466
131,405
156,345
156,284
156,223
Total equity
568,874
557,376
538,385
543,725
518,647
Total equity to total assets
7.72
%
7.53
%
7.21
%
7.33
%
7.02
%
Tangible common equity to tangible assets [4]
7.72
%
7.53
%
7.21
%
7.31
%
7.00
%
ASSET QUALITY
Allowance for credit losses (ACL)
$
59,611
$
60,469
$
59,182
$
61,647
$
62,225
Nonaccrual loans
14,895
11,085
11,018
11,597
10,257
Non-performing assets (NPA)
14,895
11,085
11,018
11,597
10,257
Ratio of ACL to total loans
1.13
%
1.13
%
1.11
%
1.15
%
1.16
%
Ratio of NPA to total assets
0.20
%
0.15
%
0.15
%
0.16
%
0.14
%
PER SHARE OF COMMON STOCK OUTSTANDING
Book value per common share
$
21.08
$
20.60
$
19.89
$
20.09
$
19.16
Closing market price per common share
28.03
27.04
29.05
29.51
21.20
[4] The tangible common equity ratio is a non-GAAP measure which should be read in conjunction with the Company’s GAAP financial information. Comparison of our ratio with those of other companies may not be possible because other companies may calculate the ratio differently. See Reconciliation of Non-GAAP Financial Measures in Table 10.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
TABLE 2
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(Dollars in thousands, except share data)
2025
2025
2024
2024
2024
ASSETS
Cash and due from financial institutions
$
110,935
$
106,670
$
77,774
$
100,064
$
103,829
Interest-bearing deposits in other financial institutions
206,035
170,226
303,167
226,505
195,062
Investment securities:
Debt securities available-for-sale, at fair value
765,213
780,379
737,658
723,453
676,719
Debt securities held-to-maturity, at amortized cost; fair value of: $499,833 at June 30, 2025, $511,717 at March 31, 2025, $506,681 at December 31, 2024, $546,990 at September 30, 2024, and $528,088 at June 30, 2024
580,476
589,688
596,930
606,117
615,867
Total investment securities
1,345,689
1,370,067
1,334,588
1,329,570
1,292,586
Loans held for sale
—
2,788
5,662
1,609
3,950
Loans, net of deferred fees and costs
5,289,809
5,334,547
5,332,852
5,342,609
5,383,644
Less: allowance for credit losses
(59,611)
(60,469)
(59,182)
(61,647)
(62,225)
Loans, net of allowance for credit losses
5,230,198
5,274,078
5,273,670
5,280,962
5,321,419
Premises and equipment, net
103,657
103,490
104,342
104,575
100,646
Accrued interest receivable
23,518
24,743
23,378
23,942
23,184
Investment in unconsolidated entities
49,370
50,885
52,417
54,836
40,155
Mortgage servicing rights
8,436
8,418
8,473
8,513
8,636
Bank-owned life insurance
177,639
176,846
176,216
175,914
173,716
Federal Home Loan Bank of Des Moines ("FHLB") and Federal Reserve Bank ("FRB") stock
24,816
24,163
6,929
6,929
6,925
Right-of-use lease assets
30,693
29,829
30,824
32,192
32,081
Other assets
58,581
63,036
74,656
69,819
84,763
Total assets
$
7,369,567
$
7,405,239
$
7,472,096
$
7,415,430
$
7,386,952
LIABILITIES
Deposits:
Noninterest-bearing demand
$
1,938,226
$
1,854,241
$
1,888,937
$
1,838,009
$
1,847,173
Interest-bearing demand
1,336,620
1,368,519
1,338,719
1,255,382
1,283,669
Savings and money market
2,242,122
2,316,416
2,329,170
2,336,323
2,234,111
Time
1,028,021
1,056,872
1,087,185
1,153,299
1,217,502
Total deposits
6,544,989
6,596,048
6,644,011
6,583,013
6,582,455
Long-term debt, net of unamortized debt issuance costs
131,466
131,405
156,345
156,284
156,223
Lease liabilities
31,981
31,057
32,025
33,807
33,422
Accrued interest payable
8,755
8,757
10,051
12,980
14,998
Other liabilities
83,502
80,596
91,279
85,621
81,207
Total liabilities
6,800,693
6,847,863
6,933,711
6,871,705
6,868,305
EQUITY
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024
—
—
—
—
—
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 26,981,436 at June 30, 2025, 27,061,589 at March 31, 2025, 27,065,570 at December 31, 2024, 27,064,501 at September 30, 2024, and 27,063,644 at June 30, 2024
399,823
402,400
404,494
404,494
404,494
Additional paid-in capital
106,033
104,849
105,054
104,794
104,161
Retained earnings
164,676
153,692
143,259
138,951
132,683
Accumulated other comprehensive loss
(101,658)
(103,565)
(114,422)
(104,514)
(122,691)
Total equity
568,874
557,376
538,385
543,725
518,647
Total liabilities and equity
$
7,369,567
$
7,405,239
$
7,472,096
$
7,415,430
$
7,386,952
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
TABLE 3
Three Months Ended
Six Months Ended
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Jun 30,
(Dollars in thousands, except per share data)
2025
2025
2024
2024
2024
2025
2024
Interest income:
Interest and fees on loans
$
65,668
$
64,119
$
65,482
$
65,469
$
64,422
$
129,787
$
127,241
Interest and dividends on investment securities:
Taxable investment securities
9,871
9,801
8,626
8,975
8,466
19,672
15,677
Tax-exempt investment securities
709
708
723
551
598
1,417
1,253
Interest on deposits in other financial institutions
1,484
2,254
3,004
2,775
2,203
3,738
5,814
Dividend income on FHLB and FRB stock
388
324
125
127
151
712
257
Total interest income
78,120
77,206
77,960
77,897
75,840
155,326
150,242
Interest expense:
Interest on deposits:
Interest-bearing demand
443
452
686
484
490
895
989
Savings and money market
8,414
8,862
9,388
10,235
8,977
17,276
17,420
Time
7,616
8,107
9,881
11,040
12,173
15,723
25,163
Interest on FHLB advances and other short-term borrowings
—
—
—
—
1
—
1
Interest on long-term debt
1,851
2,086
2,231
2,287
2,278
3,937
4,561
Total interest expense
18,324
19,507
22,186
24,046
23,919
37,831
48,134
Net interest income
59,796
57,699
55,774
53,851
51,921
117,495
102,108
Provision for credit losses
4,987
4,172
818
2,833
2,239
9,159
6,175
Net interest income after provision for credit losses
54,809
53,527
54,956
51,018
49,682
108,336
95,933
Other operating income:
Mortgage banking income
744
597
913
822
1,040
1,341
1,653
Service charges on deposit accounts
2,124
2,147
2,251
2,167
2,135
4,271
4,238
Other service charges and fees
5,957
5,766
5,476
5,947
5,869
11,723
11,130
Income from fiduciary activities
1,501
1,624
1,430
1,447
1,449
3,125
2,884
Income from bank-owned life insurance
2,260
497
1,966
1,897
1,234
2,757
2,756
Net loss on sales of investment securities
—
—
(9,934)
—
—
—
—
Other
427
465
522
454
394
892
704
Total other operating income
13,013
11,096
2,624
12,734
12,121
24,109
23,365
Other operating expense:
Salaries and employee benefits
22,696
21,819
21,661
22,299
21,246
44,515
41,981
Net occupancy
4,253
4,392
4,192
4,612
4,597
8,645
9,197
Computer software
5,320
4,714
4,757
4,590
4,381
10,034
8,668
Legal and professional services
2,873
2,798
2,504
2,460
2,506
5,671
4,826
Equipment
950
1,082
904
972
995
2,032
2,005
Advertising
832
887
911
889
901
1,719
1,815
Communication
901
1,033
943
740
657
1,934
1,494
Other
6,121
5,347
8,305
10,125
5,868
11,468
11,741
Total other operating expense
43,946
42,072
44,177
46,687
41,151
86,018
81,727
Income before income taxes
23,876
22,551
13,403
17,065
20,652
46,427
37,571
Income tax expense
5,605
4,791
2,058
3,760
4,835
10,396
8,809
Net income
$
18,271
$
17,760
$
11,345
$
13,305
$
15,817
$
36,031
$
28,762
Per common share data:
Basic earnings per share
$
0.68
$
0.66
$
0.42
$
0.49
$
0.58
$
1.33
$
1.06
Diluted earnings per share
0.67
0.65
0.42
0.49
0.58
1.33
1.06
Cash dividends declared
0.27
0.27
0.26
0.26
0.26
0.54
0.52
Basic weighted average shares outstanding
26,988,169
27,087,154
27,065,047
27,064,035
27,053,549
27,037,388
27,050,037
Diluted weighted average shares outstanding
27,069,677
27,213,406
27,221,121
27,194,625
27,116,349
27,139,969
27,106,267
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
June 30, 2025
March 31, 2025
June 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
$
134,270
4.43
%
$
1,484
$
206,108
4.44
%
$
2,254
$
162,393
5.46
%
$
2,203
Investment securities:
Taxable
1,379,213
2.86
9,871
1,376,687
2.85
9,801
1,335,100
2.54
8,466
Tax-exempt [1]
139,103
2.58
897
139,589
2.57
896
142,268
2.13
757
Total investment securities
1,518,316
2.84
10,768
1,516,276
2.82
10,697
1,477,368
2.50
9,223
Loans, including loans held for sale
5,307,946
4.96
65,668
5,311,610
4.88
64,119
5,385,829
4.80
64,422
FHLB and FRB stock
24,565
6.33
388
20,494
6.32
324
6,925
8.71
151
Total interest-earning assets
6,985,097
4.49
78,308
7,054,488
4.43
77,394
7,032,515
4.34
75,999
Noninterest-earning assets
329,047
334,295
306,199
Total assets
$
7,314,144
$
7,388,783
$
7,338,714
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits
$
1,357,049
0.13
%
$
443
$
1,355,360
0.14
%
$
452
$
1,273,901
0.15
%
$
490
Savings and money market deposits
2,275,799
1.48
8,414
2,345,445
1.53
8,862
2,221,754
1.63
8,977
Time deposits up to $250,000
439,738
2.32
2,546
457,473
2.51
2,832
555,809
3.29
4,548
Time deposits over $250,000
603,652
3.37
5,070
603,919
3.54
5,275
703,280
4.36
7,625
Total interest-bearing deposits
4,676,238
1.41
16,473
4,762,197
1.48
17,421
4,754,744
1.83
21,640
FHLB advances and other short-term borrowings
—
—
—
—
—
—
66
5.60
1
Long-term debt
131,431
5.65
1,851
152,201
5.56
2,086
156,188
5.86
2,278
Total interest-bearing liabilities
4,807,669
1.53
18,324
4,914,398
1.61
19,507
4,910,998
1.96
23,919
Noninterest-bearing deposits
1,827,225
1,798,903
1,788,023
Other liabilities
119,002
130,594
130,186
Total liabilities
6,753,896
6,843,895
6,829,207
Total equity
560,248
544,888
509,507
Total liabilities and equity
$
7,314,144
$
7,388,783
$
7,338,714
Net interest income (taxable-equivalent)
59,984
57,887
52,080
Taxable-equivalent adjustment
(188)
(188)
(159)
Net interest income (GAAP)
$
59,796
$
57,699
$
51,921
Interest rate spread
2.96
%
2.82
%
2.38
%
Net interest margin (taxable-equivalent)
3.44
%
3.31
%
2.97
%
[1] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)
(Unaudited)
TABLE 5
Six Months Ended
Six Months Ended
June 30, 2025
June 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
$
169,991
4.43
%
$
3,738
$
213,905
5.47
%
$
5,814
Investment securities:
Taxable
1,377,957
2.86
19,672
1,329,879
2.36
15,677
Tax-exempt [1]
139,345
2.57
1,794
142,549
2.23
1,586
Total investment securities
1,517,302
2.83
21,466
1,472,428
2.34
17,263
Loans, including loans held for sale
5,309,768
4.92
129,787
5,393,193
4.74
127,241
FHLB and FRB stock
22,541
6.32
712
6,863
7.49
257
Total interest-earning assets
7,019,602
4.46
155,703
7,086,389
4.26
150,575
Noninterest-earning assets
331,655
307,799
Total assets
$
7,351,257
$
7,394,188
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits
$
1,356,209
0.13
%
$
895
$
1,285,383
0.15
%
$
989
Savings and money market deposits
2,310,429
1.51
17,276
2,220,002
1.58
17,420
Time deposits up to $250,000
448,557
2.42
5,377
550,044
3.25
8,887
Time deposits over $250,000
603,785
3.46
10,346
748,649
4.37
16,276
Total interest-bearing deposits
4,718,980
1.45
33,894
4,804,078
1.82
43,572
FHLB advances and other short-term borrowings
—
—
—
33
5.60
1
Long-term debt
141,758
5.60
3,937
156,159
5.87
4,561
Total interest-bearing liabilities
4,860,738
1.57
37,831
4,960,270
1.95
48,134
Noninterest-bearing deposits
1,813,142
1,797,212
Other liabilities
124,767
131,392
Total liabilities
6,798,647
6,888,874
Total equity
552,610
505,314
Total liabilities and equity
$
7,351,257
$
7,394,188
Net interest income (taxable-equivalent)
117,872
102,441
Taxable-equivalent adjustment
(377)
(333)
Net interest income (GAAP)
$
117,495
$
102,108
Interest rate spread
2.89
%
2.31
%
Net interest margin (taxable-equivalent)
3.37
%
2.90
%
[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
(Unaudited)
TABLE 6
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(Dollars in thousands)
2025
2025
2024
2024
2024
HAWAII:
Commercial and industrial
$
455,372
$
461,020
$
430,167
$
411,209
$
415,538
Real estate:
Construction
172,382
159,081
145,182
134,043
147,657
Residential mortgage
1,851,690
1,870,239
1,892,520
1,897,919
1,913,177
Home equity
627,834
655,237
676,982
697,123
706,811
Commercial mortgage
1,161,244
1,174,573
1,165,060
1,157,625
1,150,703
Consumer
224,085
219,941
274,712
277,849
287,295
Total loans, net of deferred fees and costs
4,492,607
4,540,091
4,584,623
4,575,768
4,621,181
Less: Allowance for credit losses
(44,372)
(45,937)
(45,967)
(47,789)
(47,902)
Loans, net of allowance for credit losses
$
4,448,235
$
4,494,154
$
4,538,656
$
4,527,979
$
4,573,279
U.S. MAINLAND: [1]
Commercial and industrial
$
152,758
$
173,600
$
176,769
$
188,238
$
169,318
Real estate:
Construction
17,626
1,011
29
24,083
23,865
Commercial mortgage
379,279
377,866
335,620
312,685
314,667
Consumer
247,539
241,979
235,811
241,835
254,613
Total loans, net of deferred fees and costs
797,202
794,456
748,229
766,841
762,463
Less: Allowance for credit losses
(15,239)
(14,532)
(13,215)
(13,858)
(14,323)
Loans, net of allowance for credit losses
$
781,963
$
779,924
$
735,014
$
752,983
$
748,140
TOTAL:
Commercial and industrial
$
608,130
$
634,620
$
606,936
$
599,447
$
584,856
Real estate:
Construction
190,008
160,092
145,211
158,126
171,522
Residential mortgage
1,851,690
1,870,239
1,892,520
1,897,919
1,913,177
Home equity
627,834
655,237
676,982
697,123
706,811
Commercial mortgage
1,540,523
1,552,439
1,500,680
1,470,310
1,465,370
Consumer
471,624
461,920
510,523
519,684
541,908
Total loans, net of deferred fees and costs
5,289,809
5,334,547
5,332,852
5,342,609
5,383,644
Less: Allowance for credit losses
(59,611)
(60,469)
(59,182)
(61,647)
(62,225)
Loans, net of allowance for credit losses
$
5,230,198
$
5,274,078
$
5,273,670
$
5,280,962
$
5,321,419
[1] U.S. Mainland includes territories of the United States.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Deposits
(Unaudited)
TABLE 7
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(Dollars in thousands)
2025
2025
2024
2024
2024
Noninterest-bearing demand
$
1,938,226
$
1,854,241
$
1,888,937
$
1,838,009
$
1,847,173
Interest-bearing demand
1,336,620
1,368,519
1,338,719
1,255,382
1,283,669
Savings and money market
2,242,122
2,316,416
2,329,170
2,336,323
2,234,111
Time deposits up to $250,000
439,687
436,437
483,378
536,316
547,212
Core deposits
5,956,655
5,975,613
6,040,204
5,966,030
5,912,165
Other time deposits greater than $250,000
459,945
475,861
500,693
492,221
476,457
Government time deposits
128,389
144,574
103,114
124,762
193,833
Total time deposits greater than $250,000
588,334
620,435
603,807
616,983
670,290
Total deposits
$
6,544,989
$
6,596,048
$
6,644,011
$
6,583,013
$
6,582,455
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Nonperforming Assets and Accruing Loans 90+ Days Past Due
(Unaudited)
TABLE 8
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(Dollars in thousands)
2025
2025
2024
2024
2024
Nonaccrual loans:
Commercial and industrial
$
110
$
531
$
414
$
376
$
355
Real estate:
Residential mortgage
12,327
9,199
9,044
9,680
7,991
Home equity
1,889
746
952
915
1,247
Commercial mortgage
—
—
—
—
77
Consumer
569
609
608
626
587
Total nonaccrual loans
14,895
11,085
11,018
11,597
10,257
Other real estate owned ("OREO")
—
—
—
—
—
Total nonperforming assets ("NPAs")
14,895
11,085
11,018
11,597
10,257
Accruing loans 90+ days past due:
Real estate:
Residential mortgage
1,625
—
323
13
1,273
Home equity
21
87
78
135
135
Consumer
418
670
373
481
896
Total accruing loans 90+ days past due
2,064
757
774
629
2,304
Total NPAs and accruing loans 90+ days past due
$
16,959
$
11,842
$
11,792
$
12,226
$
12,561
Ratio of total nonaccrual loans to total loans
0.28
%
0.21
%
0.21
%
0.22
%
0.19
%
Ratio of total NPAs to total assets
0.20
0.15
0.15
0.16
0.14
Ratio of total NPAs to total loans and OREO
0.28
0.21
0.21
0.22
0.19
Ratio of total NPAs and accruing loans 90+ days past due to total loans and OREO
0.32
0.22
0.22
0.23
0.23
Quarter-to-quarter changes in NPAs:
Balance at beginning of quarter
$
11,085
$
11,018
$
11,597
$
10,257
$
10,132
Additions
5,879
2,397
1,436
3,484
1,920
Reductions:
Payments
(585)
(614)
(763)
(602)
(363)
Return to accrual status
(861)
(558)
(71)
(354)
(27)
Charge-offs, valuation and other adjustments
(623)
(1,158)
(1,181)
(1,188)
(1,405)
Total reductions
(2,069)
(2,330)
(2,015)
(2,144)
(1,795)
Balance at end of quarter
$
14,895
$
11,085
$
11,018
$
11,597
$
10,257
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Allowance for Credit Losses on Loans
(Unaudited)
TABLE 9
Three Months Ended
Six Months Ended
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Jun 30,
(Dollars in thousands)
2025
2025
2024
2024
2024
2025
2024
Allowance for credit losses ("ACL") on loans:
Balance at beginning of period
$
60,469
$
59,182
$
61,647
$
62,225
$
63,532
$
59,182
$
63,934
Provision for credit losses on loans
3,810
3,905
1,353
3,040
2,448
7,715
6,569
Charge-offs:
Commercial and industrial
(2,858)
(580)
(1,113)
(663)
(519)
(3,438)
(1,201)
Real estate:
Residential mortgage
—
—
—
(99)
(284)
—
(284)
Consumer
(2,864)
(2,977)
(3,727)
(3,956)
(4,345)
(5,841)
(9,183)
Total charge-offs
(5,722)
(3,557)
(4,840)
(4,718)
(5,148)
(9,279)
(10,668)
Recoveries:
Commercial and industrial
195
171
158
158
130
366
220
Real estate:
Construction
3
—
—
—
—
3
—
Residential mortgage
7
10
11
8
9
17
17
Home equity
9
3
—
—
—
12
6
Consumer
840
755
853
934
1,254
1,595
2,147
Total recoveries
1,054
939
1,022
1,100
1,393
1,993
2,390
Net charge-offs
(4,668)
(2,618)
(3,818)
(3,618)
(3,755)
(7,286)
(8,278)
Balance at end of period
$
59,611
$
60,469
$
59,182
$
61,647
$
62,225
$
59,611
$
62,225
Average loans, net of deferred fees and costs
$
5,307,946
$
5,311,610
$
5,315,802
$
5,330,810
$
5,385,829
$
5,309,768
$
5,393,193
Ratio of annualized net charge-offs to average loans
0.35
%
0.20
%
0.29
%
0.27
%
0.28
%
0.27
%
0.31
%
Ratio of ACL to total loans
1.13
1.13
1.11
1.15
1.16
1.13
1.16
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
TABLE 10
To supplement our consolidated financial information, the Company uses certain non-GAAP financial measures, which are not meant to be considered in isolation or as a substitute for comparable GAAP. The Company believes these non-GAAP financial measures provide useful information to investors and others, which excludes transactions that are not meaningful in comparison to our past operating performance or not reflective of ongoing financial results. The Company believes that these measures offer a supplemental measure for period-to-period comparisons and can be used to evaluate our historical and prospective financial performance. These non-GAAP financial measures may not be comparable to similarly entitled measures reported by other companies.
A key measure of operating efficiency tracked by the Company is the efficiency ratio, which is derived from GAAP-based amounts, and is calculated by dividing total other operating expenses by total pre-provision revenue (net interest income plus total other operating income). The Company believes that the efficiency ratio, a non-GAAP financial measure, provides useful supplemental information that is important to a proper understanding of its business results and operating efficiency. The Company's efficiency ratio should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to the efficiency ratio presented by other companies. The following table sets forth our efficiency ratio for the periods presented:
Three Months Ended
Six Months Ended
(dollars in thousands)
Jun 30, 2025
Mar 31, 2025
Jun 30, 2024
Jun 30, 2025
Jun 30, 2024
Total other operating expense
$
43,946
$
42,072
$
41,151
$
86,018
$
81,727
Net interest income
$
59,796
$
57,699
$
51,921
$
117,495
$
102,108
Total other operating income
13,013
11,096
12,121
24,109
23,365
Total revenue
$
72,809
$
68,795
$
64,042
$
141,604
$
125,473
Efficiency ratio (non-GAAP)
60.36
%
61.16
%
64.26
%
60.75
%
65.14
%
The following table presents our tangible common equity ("TCE") ratio, a non-GAAP financial measure, which is calculated by dividing tangible common equity by tangible assets, as of the dates presented.
