CENTRAL PACIFIC FINANCIAL REPORTS SECOND QUARTER 2026 EARNINGS OF $20.8 MILLION
Highlights:
•Net income of $20.8 million, or $0.80 per diluted share
•Return on average assets of 1.12% and return on average equity of 13.94%
•Net interest margin increased by 4 bps to 3.57% from the prior quarter
•Repurchased 321,858 shares of common stock at a total cost of $11.3 million during the quarter
•Board of Directors declared a third quarter cash dividend of $0.30 per share, an increase of 3.4% from prior quarter
•Central Pacific Bank was the highest-ranked company in Hawaii on America's Best Companies 2026 list, published by TIME magazine, and named Best Bank in Hawaii by Forbes Magazine in 2026 for the third consecutive year
HONOLULU, HI, July 24, 2026 – Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), today reported net income of $20.8 million, or $0.80 diluted earnings per share ("EPS"), for the second quarter of 2026. This compares to net income of $20.7 million, or EPS of $0.78, in the prior quarter and $18.3 million, or EPS of $0.67, in the same period last year.
“We delivered another strong quarter of performance, backed by our team’s dedication and commitment," said Arnold Martines, Chairman, President and CEO. "Our robust capital position supports future organic growth, while returning value to shareholders through our increased dividend and continued share repurchases. We are also honored to be the highest-ranked company in Hawaii on America’s Best Companies 2026 list, published by TIME magazine, and recognized by Forbes as the Best Bank in Hawaii for the third consecutive year. We are grateful for the support of our customers and the communities we serve.”
Earnings Highlights
Net interest income for the second quarter of 2026 totaled $62.8 million, which increased by $1.5 million, or 2.4% from the prior quarter, and increased by $3.0 million, or 5.1%, compared to the same quarter last year. Net interest margin ("NIM") for the second quarter of 2026 was 3.57%, an increase of 4 basis points ("bp" or "bps") from the prior quarter, and an increase of 13 bps from the same quarter last year. The sequential quarter increase in net interest income and NIM was primarily driven by higher average balances and yields earned on loans and investment securities, combined with a decline in average rates paid on interest-bearing deposits.
The Company recorded a provision for credit losses of $4.4 million in the second quarter of 2026, compared to a provision of $2.4 million in the prior quarter, and a provision of $5.0 million in the same quarter last year. The current quarter provision included a
Central Pacific Financial Reports Second Quarter 2026 Earnings of $20.8 Million
Page 2
provision for credit loss on loans of $3.3 million and a $1.1 million reserve for off-balance sheet credit exposures. The increase from the prior quarter was primarily driven by changes in the economic forecast used in our current expected credit losses model, combined with higher unfunded loan commitments.
Other operating income for the second quarter of 2026 totaled $14.6 million, compared to $11.6 million in the prior quarter, and $13.0 million in the same quarter last year. The sequential quarter increase was primarily due to a $2.6 million increase in income from bank-owned life insurance ("BOLI") due to favorable equity market performance.
Other operating expense for the second quarter of 2026 totaled $46.2 million, compared to $43.7 million in the prior quarter, and $43.9 million in the same quarter last year. The increase from the prior quarter was primarily attributable to higher salaries and employee benefits of $2.3 million due to higher deferred compensation expense and incentive accruals. The increase in deferred compensation expense was related to equity market performance.
The efficiency ratio was 59.62% in the second quarter of 2026, compared to 59.87% in the prior quarter and 60.36% in the same quarter last year.
The effective tax rate for the second quarter of 2026 was 22.6%, compared to 23.0% in the prior quarter, and 23.5% in the same quarter last year. The decrease in the Company's effective tax rate was primarily attributable to an increase in tax-exempt income.
Balance Sheet Highlights
As of June 30, 2026, total assets were $7.50 billion, generally consistent with $7.50 billion at March 31, 2026, and increased $131.5 million, or 1.8% from $7.37 billion at June 30, 2025.
Total loans, net of deferred fees and costs, were $5.31 billion at June 30, 2026, and remained relatively stable compared to $5.32 billion at March 31, 2026, and $5.29 billion at June 30, 2025. The average yield earned on loans during the second quarter of 2026 was 4.96%, compared to 4.93% in the prior quarter and 4.96% in the same quarter last year.
Total deposits were $6.70 billion at June 30, 2026, relatively unchanged from $6.70 billion at March 31, 2026, and increased by $150.8 million, or 2.3% from $6.54 billion at June 30, 2025. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $6.12 billion at June 30, 2026, generally consistent with $6.13 billion at March 31, 2026, and increased by $167.1 million, or 2.8% from $5.96 billion at June 30, 2025. The average rate paid on total deposits during the second quarter of 2026 was 0.90%, consistent with 0.90% in the prior quarter, and decreased from 1.02% in the same quarter last year.
Asset Quality
Nonperforming assets totaled $16.5 million, or 0.22% of total assets at June 30, 2026, compared to $14.5 million, or 0.19% of total assets at March 31, 2026 and $14.9 million, or 0.20% of total assets at June 30, 2025.
Net charge-offs in the second quarter of 2026 totaled $2.7 million, compared to net charge-offs of $2.4 million in the prior quarter, and net charge-offs of $4.7 million in the same quarter last year. On an annualized basis, net charge-offs as a percentage of average loans was 0.20% in the second quarter of 2026, compared to 0.18% in the prior quarter, and 0.35% in the same quarter last year.
The allowance for credit losses on loans was 1.14% of total loans as of June 30, 2026, compared to 1.13% at March 31, 2026 and June 30, 2025.
Capital
Total shareholders' equity at June 30, 2026 was $596.3 million, compared to $593.9 million at March 31, 2026 and $568.9 million at June 30, 2025.
During the second quarter of 2026, the Company repurchased 321,858 shares of common stock at a total cost of $11.3 million, or an average price of $35.01 per share. As of June 30, 2026, $33.2 million remained available under the Company's share repurchase authorization.
The Company's regulatory capital ratios remained strong, with a leverage ratio of 9.7%, a Common Equity Tier 1 ratio of 12.7%, a Tier 1 risk-based capital ratio of 13.6%, and a total risk-based capital ratio of 14.8% at June 30, 2026.
Central Pacific Financial Reports Second Quarter 2026 Earnings of $20.8 Million
Page 3
On July 23, 2026, the Board of Directors increased its quarterly cash dividend by 3.4% to $0.30 per share. The dividend will be payable on September 15, 2026, to shareholders of record as of August 31, 2026.
Conference Call
The Company's management will host a conference call today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time) to discuss its second quarter of 2026 financial results. Interested parties may listen to the conference by calling 1-833-461-5787 and entering the meeting ID: 719 331 929 or by registering for the webcast at the following link: https://events.q4inc.com/attendee/719331929. The Company’s investor relations website, https://ir.cpb.bank, will also include a link to the webcast and a slide presentation.
A replay of the call will be available on the Company's investor relations website until July 24, 2027.
About Central Pacific Financial Corp.
Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $7.50 billion in assets as of June 30, 2026. Its primary subsidiary, Central Pacific Bank, operates 27 branches and 56 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.
**********
Central Pacific Financial Reports Second Quarter 2026 Earnings of $20.8 Million
Page 4
Forward-Looking Statements
This document may contain forward-looking statements ("FLS") concerning, among other things: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, payment or nonpayment of dividends, net interest income, capital position, credit losses, net interest margin, or other financial items. These statements may also include the plans, objectives, and expectations of Central Pacific Financial Corp. (the "Company") or its management or Board of Directors, including those relating to business plans, use of capital resources, products or services, and regulatory developments or actions. In addition, such statements may address anticipated economic performance, the expected impact of business initiatives, and the assumptions underlying any of the foregoing.
Words such as "believe," "plan," "anticipate," "aim," "seek," "expect," "intend," "forecast," "hope," "target," "continue," "remain," "estimate," "will," "should," "may," and other similar expressions are intended to identify FLS, although such terminology is not the exclusive means of doing so.
While we believe that our FLS and their underlying assumptions are reasonably based, such statements are inherently subject to risks and uncertainties that may cause actual results to differ materially from expectations. Factors that may lead to such differences, include, but are not limited to: the persistence or resurgence of inflationary pressures in the United States and our market areas, and their effect on market interest rates, economic conditions, and credit quality; the impact of the current U.S. administration’s economic policies, including potential international tariffs, geopolitical instability, trade tensions,and other cost-cutting or fiscal initiatives; the adverse effects of bank failures on customer confidence, deposit behavior, liquidity, and regulatory responses; the effects of pandemics, epidemics, and other public health emergencies, including their impact on Hawaii's tourism and construction sectors and on our borrowers, customers, vendors and employees; supply chain disruptions, labor contract disputes, strikes; adverse trends in the real estate or construction industries, including rising inventory levels or declining property values; deterioration in borrowers' financial performance leading to increased loan delinquencies, asset quality issues, or loan losses; the impact of local, national, and international economic conditions and natural disasters (such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, floods, or earthquakes) on our markets and major industries within Hawaii; weakness in domestic economic conditions, including instability in the financial industry, deterioration in real estate markets, and declines in consumer or business confidence; revisions to estimates of reserve requirements under applicable regulatory and accounting standards; the impact of legislative and regulatory developments, changing capital and consumer protection rules, and new regulations affecting our operations and competitiveness; the costs and effects of legal and regulatory proceedings, including actual or threatened litigation and the results of governmental and regulatory exams and orders, as well as the costs of ongoing or potential compliance efforts; the effect of accounting standard changes adopted by regulatory agencies, the PCAOB, or the FASB, and the cost and resources associated with implementation; changes in trade, monetary, or fiscal policy, including actions by the Federal Reserve; market volatility and monetary fluctuations, including the transition away from the LIBOR Index; declines in our market capitalization or the price of our common stock; the effects and cost of acquisitions, dispositions, or strategic transactions we may make or evaluate; political instability, acts of war or terrorism, or other geopolitical conflicts; shifts in consumer spending, borrowing, and savings behaviors; technological changes and developments; cybersecurity incidents, data privacy breaches, or fraud involving us or third-party vendors; deficiencies in internal control over financial reporting or disclosure controls and procedures, and our ability to remediate them; increased competition among financial institutions and other financial service providers; our ability to achieve efficiency ratio improvement goals; our ability to attract and retain key personnel; changes in our personnel, organization, compensation and benefit plans; and related reputational or regulatory exposures; and risks related to the United States fiscal debt, deficit, and budget uncertainties.
For further information on factors that could cause actual results to differ materially from the expectations or projections expressed in our FLS, please refer to the Company's filings with the U.S. Securities and Exchange Commission, including the Company's most recent Form 10-K, particularly, the discussion of "Risk Factors" set forth therein.
We urge investors to consider all of these factors carefully in evaluating the FLS contained in this document. FLS speak only as of the date on which such statements are made. We undertake no obligation to update any FLS to reflect events or circumstances occurring after the date on which such statements are made, or to reflect the occurrence of unanticipated events, except as required by law.
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)
TABLE 1
Three Months Ended
Six Months Ended
(Dollars in thousands,
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
Jun 30,
except for per share amounts)
2026
2026
2025
2025
2025
2026
2025
CONDENSED INCOME STATEMENT
Net interest income
$
62,834
$
61,358
$
62,087
$
61,301
$
59,796
$
124,192
$
117,495
Provision for credit losses
4,382
2,353
2,396
4,157
4,987
6,735
9,159
Total other operating income
14,620
11,574
14,201
13,507
13,013
26,194
24,109
Total other operating expense
46,180
43,666
45,680
47,009
43,946
89,846
86,018
Income tax expense
6,070
6,188
5,337
5,068
5,605
12,258
10,396
Net income
20,822
20,725
22,875
18,574
18,271
41,547
36,031
Basic earnings per share
$
0.80
$
0.79
$
0.86
$
0.69
$
0.68
$
1.59
$
1.33
Diluted earnings per share
0.80
0.78
0.85
0.69
0.67
1.58
1.33
Dividends declared per share
0.29
0.29
0.28
0.27
0.27
0.58
0.54
PERFORMANCE RATIOS
Return on average assets (ROA) [1]
1.12
%
1.12
%
1.25
%
1.01
%
1.00
%
1.12
%
0.98
%
Return on average equity (ROE) [1]
13.94
13.90
15.41
12.89
13.04
13.92
13.04
Average equity to average assets
8.03
8.07
8.12
7.85
7.66
8.05
7.52
Efficiency ratio [2]
59.62
59.87
59.88
62.84
60.36
59.74
60.75
Net interest margin (NIM) [1]
3.57
3.53
3.56
3.49
3.44
3.55
3.37
Dividend payout ratio [3]
36.25
37.18
32.94
39.13
40.30
36.71
40.60
SELECTED AVERAGE BALANCES
Average loans, including loans held for sale
$
5,300,949
$
5,268,482
$
5,328,499
$
5,332,656
$
5,307,946
$
5,284,805
$
5,309,768
Average interest-earning assets
7,076,331
7,022,759
6,964,796
7,011,753
6,985,097
7,049,694
7,019,602
Average assets
7,433,822
7,396,084
7,310,098
7,341,281
7,314,144
7,415,057
7,351,257
Average deposits
6,630,910
6,592,361
6,499,119
6,509,692
6,503,463
6,611,742
6,532,122
Average interest-bearing liabilities
4,876,776
4,846,057
4,757,686
4,807,225
4,807,669
4,861,501
4,860,738
Average equity
597,299
596,524
593,750
576,531
560,248
596,913
552,610
[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,
2026
2026
2025
2025
2025
REGULATORY CAPITAL RATIOS
Central Pacific Financial Corp.
Leverage ratio
9.7
%
9.7
%
9.8
%
9.7
%
9.6
%
Common equity tier 1 capital ratio
12.7
12.6
12.7
12.6
12.6
Tier 1 risk-based capital ratio
13.6
13.5
13.6
13.5
13.5
Total risk-based capital ratio
14.8
14.7
14.8
15.7
15.8
Central Pacific Bank
Leverage ratio
9.6
9.6
9.7
10.2
10.1
Common equity tier 1 capital ratio
13.4
13.4
13.5
14.1
14.1
Tier 1 risk-based capital ratio
13.4
13.4
13.5
14.1
14.1
Total risk-based capital ratio
14.7
14.6
14.7
15.3
15.3
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(dollars in thousands, except for per share amounts)
2026
2026
2025
2025
2025
BALANCE SHEET
Total loans, net of deferred fees and costs
$
5,308,322
$
5,320,349
$
5,289,096
$
5,367,202
$
5,289,809
Total assets
7,501,060
7,495,363
7,409,241
7,421,478
7,369,567
Total deposits
6,695,754
6,699,354
6,609,764
6,577,684
6,544,989
Long-term debt
76,547
76,547
76,547
131,527
131,466
Total equity
596,331
593,879
592,581
588,066
568,874
Tangible common equity to tangible assets [4]
7.95
%
7.92
%
8.00
%
7.92
%
7.72
%
ASSET QUALITY
Allowance for credit losses (ACL)
$
60,581
$
59,933
$
59,621
$
60,393
$
59,611
Nonaccrual loans
15,622
14,524
14,386
14,319
14,895
Non-performing assets (NPA)
16,546
14,524
14,386
14,319
14,895
Ratio of ACL to total loans
1.14
%
1.13
%
1.13
%
1.13
%
1.13
%
Ratio of NPA to total assets
0.22
%
0.19
%
0.19
%
0.19
%
0.20
%
PER SHARE OF COMMON STOCK OUTSTANDING
Book value per common share
$
23.11
$
22.74
$
22.47
$
21.86
$
21.08
Closing market price per common share
38.20
31.96
31.16
30.34
28.03
[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)
2026
2026
2025
2025
2025
ASSETS
Cash and due from financial institutions
$
96,678
$
88,880
$
88,200
$
102,859
$
110,935
Interest-bearing deposits in other financial institutions
286,593
317,716
290,453
207,034
206,035
Investment securities:
Debt securities available-for-sale, at fair value
835,378
779,156
748,212
758,683
765,213
Debt securities held-to-maturity, at amortized cost; fair value of: $474,928 at June 30, 2026, $486,018 at March 31, 2026, $495,845 at December 31, 2025, $500,859 at September 30, 2025, and $499,833 at June 30, 2025
545,215
554,548
562,391
570,886
580,476
Total investment securities
1,380,593
1,333,704
1,310,603
1,329,569
1,345,689
Loans held for sale
2,364
2,536
1,084
1,557
—
Loans, net of deferred fees and costs
5,308,322
5,320,349
5,289,096
5,367,202
5,289,809
Less: allowance for credit losses
(60,581)
(59,933)
(59,621)
(60,393)
(59,611)
Loans, net of allowance for credit losses
5,247,741
5,260,416
5,229,475
5,306,809
5,230,198
Premises and equipment, net
100,231
99,942
100,620
100,992
103,657
Accrued interest receivable
23,419
24,320
23,559
25,232
23,518
Investment in unconsolidated entities
57,738
59,548
61,349
52,987
49,370
Other real estate owned
924
—
—
—
—
Mortgage servicing rights
8,364
8,520
8,672
8,459
8,436
Bank-owned life insurance
185,134
181,298
180,717
179,743
177,639
Federal Home Loan Bank of Des Moines ("FHLB") and Federal Reserve Bank ("FRB") stock
24,744
24,682
25,836
25,215
24,816
Right-of-use lease assets
23,311
24,320
24,822
25,570
30,693
Other assets
63,226
69,481
63,851
55,452
58,581
Total assets
$
7,501,060
$
7,495,363
$
7,409,241
$
7,421,478
$
7,369,567
LIABILITIES
Deposits:
Noninterest-bearing demand
$
1,917,502
$
1,897,593
$
1,891,198
$
1,903,614
$
1,938,226
Interest-bearing demand
1,407,574
1,428,323
1,388,107
1,340,725
1,336,620
Savings and money market
2,376,831
2,378,834
2,346,522
2,292,881
2,242,122
Time
993,847
994,604
983,937
1,040,464
1,028,021
Total deposits
6,695,754
6,699,354
6,609,764
6,577,684
6,544,989
Long-term debt, net of unamortized debt issuance costs
76,547
76,547
76,547
131,527
131,466
Lease liabilities
24,063
25,073
25,549
26,288
31,981
Accrued interest payable
6,044
6,433
7,068
8,604
8,755
Other liabilities
102,321
94,077
97,732
89,309
83,502
Total liabilities
6,904,729
6,901,484
6,816,660
6,833,412
6,800,693
EQUITY
Shareholders' equity:
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025
—
—
—
—
—
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 25,806,418 at June 30, 2026, 26,115,229 at March 31, 2026, 26,374,967 at December 31, 2025, 26,903,512 at September 30, 2025, and 26,981,436 at June 30, 2025
359,364
370,633
381,158
397,479
399,823
Additional paid-in capital
107,534
106,501
107,308
106,675
106,033
Retained earnings
217,789
204,494
191,383
175,968
164,676
Accumulated other comprehensive loss
(88,356)
(87,749)
(87,268)
(92,056)
(101,658)
Total equity
596,331
593,879
592,581
588,066
568,874
Total liabilities and equity
$
7,501,060
$
7,495,363
$
7,409,241
$
7,421,478
$
7,369,567
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)
2026
2026
2025
2025
2025
2026
2025
Interest income:
Interest and fees on loans
$
65,553
$
64,323
$
66,897
$
67,222
$
65,668
$
129,876
$
129,787
Interest and dividends on investment securities:
Taxable investment securities
9,732
9,210
9,401
9,776
9,871
18,942
19,672
Tax-exempt investment securities
684
682
696
709
709
1,366
1,417
Interest on deposits in other financial institutions
2,331
2,500
1,501
1,857
1,484
4,831
3,738
Dividend income on FHLB and FRB stock
389
381
382
395
388
770
712
Total interest income
78,689
77,096
78,877
79,959
78,120
155,785
155,326
Interest expense:
Interest on deposits:
Interest-bearing demand
757
522
441
490
443
1,279
895
Savings and money market
7,554
7,502
8,004
8,898
8,414
15,056
17,276
Time
6,488
6,665
6,999
7,410
7,616
13,153
15,723
Interest on long-term debt
1,056
1,049
1,346
1,860
1,851
2,105
3,937
Total interest expense
15,855
15,738
16,790
18,658
18,324
31,593
37,831
Net interest income
62,834
61,358
62,087
61,301
59,796
124,192
117,495
Provision for credit losses
4,382
2,353
2,396
4,157
4,987
6,735
9,159
Net interest income after provision for credit losses
58,452
59,005
59,691
57,144
54,809
117,457
108,336
Other operating income:
Mortgage banking income
693
649
1,186
958
744
1,342
1,341
Service charges on deposit accounts
2,250
2,299
2,423
2,330
2,124
4,549
4,271
Other service charges and fees
6,330
5,789
5,570
6,472
5,957
12,119
11,723
Income from fiduciary activities
1,580
1,423
1,529
1,547
1,501
3,003
3,125
Income from bank-owned life insurance
2,999
399
2,816
1,879
2,260
3,398
2,757
Net loss on sales of investment securities
—
—
—
(30)
—
—
—
Other
768
1,015
677
351
427
1,783
892
Total other operating income
14,620
11,574
14,201
13,507
13,013
26,194
24,109
Other operating expense:
Salaries and employee benefits
25,372
23,085
24,490
24,749
22,696
48,457
44,515
Net occupancy
4,299
4,322
4,432
4,598
4,253
8,621
8,645
Computer software
4,952
5,045
5,442
5,151
5,320
9,997
10,034
Legal and professional services
2,607
2,384
2,878
2,669
2,873
4,991
5,671
Equipment
822
807
825
867
950
1,629
2,032
Advertising
762
997
943
730
832
1,759
1,719
Communication
840
823
495
791
901
1,663
1,934
Other
6,526
6,203
6,175
7,454
6,121
12,729
11,468
Total other operating expense
46,180
43,666
45,680
47,009
43,946
89,846
86,018
Income before income taxes
26,892
26,913
28,212
23,642
23,876
53,805
46,427
Income tax expense
6,070
6,188
5,337
5,068
5,605
12,258
10,396
Net income
$
20,822
$
20,725
$
22,875
$
18,574
$
18,271
$
41,547
$
36,031
Per common share data:
Basic earnings per share
$
0.80
$
0.79
$
0.86
$
0.69
$
0.68
$
1.59
$
1.33
Diluted earnings per share
0.80
0.78
0.85
0.69
0.67
1.58
1.33
Cash dividends declared
0.29
0.29
0.28
0.27
0.27
0.58
0.54
Basic weighted average shares outstanding
25,999,122
26,277,749
26,687,551
26,968,163
26,988,169
26,137,665
27,037,388
Diluted weighted average shares outstanding
26,109,241
26,414,880
26,827,551
27,083,280
27,069,677
26,261,252
27,139,969
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, 2026
March 31, 2026
June 30, 2025
Average
Average
Average
Average
Average
Average
(Dollars in thousands)
Balance
Yield/Rate
Interest
Balance
Yield/Rate
Interest
Balance
Yield/Rate
Interest
ASSETS
Interest-earning assets:
Interest-bearing deposits in other financial institutions
$
253,598
3.69
%
$
2,331
$
274,885
3.69
%
$
2,500
$
134,270
4.43
%
$
1,484
Investment securities:
Taxable [1]
1,362,100
2.86
9,732
1,318,722
2.80
9,210
1,379,213
2.86
9,871
Tax-exempt [1] [3]
134,964
2.56
866
135,519
2.55
863
139,103
2.58
897
Total investment securities
1,497,064
2.83
10,598
1,454,241
2.77
10,073
1,518,316
2.84
10,768
Loans, including loans held for sale [2]
5,300,949
4.96
65,553
5,268,482
4.93
64,323
5,307,946
4.96
65,668
FHLB and FRB stock
24,720
6.28
389
25,151
6.07
381
24,565
6.33
388
Total interest-earning assets
7,076,331
4.47
78,871
7,022,759
4.44
77,277
6,985,097
4.49
78,308
Noninterest-earning assets
357,491
373,325
329,047
Total assets
$
7,433,822
$
7,396,084
$
7,314,144
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits
$
1,442,933
0.21
%
$
757
$
1,407,877
0.15
%
$
522
$
1,357,049
0.13
%
$
443
Savings and money market deposits
2,367,169
1.28
7,554
2,371,217
1.28
7,502
2,275,799
1.48
8,414
Time deposits up to $250,000
428,642
2.14
2,290
432,745
2.18
2,331
439,738
2.32
2,546
Time deposits over $250,000
561,485
3.00
4,198
557,671
3.15
4,334
603,652
3.37
5,070
Total interest-bearing deposits
4,800,229
1.24
14,799
4,769,510
1.25
14,689
4,676,238
1.41
16,473
Long-term debt
76,547
5.53
1,056
76,547
5.56
1,049
131,431
5.65
1,851
Total interest-bearing liabilities
4,876,776
1.30
15,855
4,846,057
1.32
15,738
4,807,669
1.53
18,324
Noninterest-bearing deposits
1,830,681
1,822,851
1,827,225
Other liabilities
129,066
130,652
119,002
Total liabilities
6,836,523
6,799,560
6,753,896
Total equity
597,299
596,524
560,248
Total liabilities and equity
$
7,433,822
$
7,396,084
$
7,314,144
Net interest income (taxable-equivalent)
63,016
61,539
59,984
Taxable-equivalent adjustment [3]
(182)
(181)
(188)
Net interest income (GAAP)
$
62,834
$
61,358
$
59,796
Interest rate spread
3.17
%
3.12
%
2.96
%
Net interest margin (taxable-equivalent) [4]
3.57
%
3.53
%
3.44
%
[1] At amortized cost.
[2] Includes nonaccrual loans.
[3] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.
[4] Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual).
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)
(Unaudited)
TABLE 5
Six Months Ended
Six Months Ended
June 30, 2026
June 30, 2025
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
$
264,183
3.69
%
$
4,831
$
169,991
4.43
%
$
3,738
Investment securities:
Taxable [1]
1,340,531
2.83
18,942
1,377,957
2.86
19,672
Tax-exempt [1] [3]
135,240
2.55
1,729
139,345
2.57
1,794
Total investment securities
1,475,771
2.80
20,671
1,517,302
2.83
21,466
Loans, including loans held for sale [2]
5,284,805
4.94
129,876
5,309,768
4.92
129,787
FHLB and FRB stock
24,935
6.17
770
22,541
6.32
712
Total interest-earning assets
7,049,694
4.45
156,148
7,019,602
4.46
155,703
Noninterest-earning assets
365,363
331,655
Total assets
$
7,415,057
$
7,351,257
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits
$
1,425,501
0.18
%
$
1,279
$
1,356,209
0.13
%
$
895
Savings and money market deposits
2,369,182
1.28
15,056
2,310,429
1.51
17,276
Time deposits up to $250,000
430,682
2.16
4,621
448,557
2.42
5,377
Time deposits over $250,000
559,589
3.07
8,532
603,785
3.46
10,346
Total interest-bearing deposits
4,784,954
1.24
29,488
4,718,980
1.45
33,894
Long-term debt
76,547
5.55
2,105
141,758
5.60
3,937
Total interest-bearing liabilities
4,861,501
1.31
31,593
4,860,738
1.57
37,831
Noninterest-bearing deposits
1,826,788
1,813,142
Other liabilities
129,855
124,767
Total liabilities
6,818,144
6,798,647
Total equity
596,913
552,610
Total liabilities and equity
$
7,415,057
$
7,351,257
Net interest income (taxable-equivalent)
124,555
117,872
Taxable-equivalent adjustment [3]
(363)
(377)
Net interest income (GAAP)
$
124,192
$
117,495
Interest rate spread
3.14
%
2.89
%
Net interest margin (taxable-equivalent) [4]
3.55
%
3.37
%
[1] At amortized cost.
[2] Includes nonaccrual loans.
[3] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.
[4] Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual).
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Loans
(Unaudited)
TABLE 6
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(Dollars in thousands)
2026
2026
2025
2025
2025
Commercial and industrial
$
590,404
$
590,810
$
594,592
$
608,814
$
608,130
Construction
211,007
204,368
213,191
217,610
190,008
Residential mortgage
1,815,342
1,806,965
1,839,191
1,839,535
1,851,690
Home equity
577,283
582,380
600,082
610,889
627,834
Commercial mortgage
1,686,361
1,703,760
1,594,433
1,613,187
1,540,523
Consumer
427,925
432,066
447,607
477,167
471,624
Total loans, net of deferred fees and costs
5,308,322
5,320,349
5,289,096
5,367,202
5,289,809
Less: Allowance for credit losses
(60,581)
(59,933)
(59,621)
(60,393)
(59,611)
Loans, net of allowance for credit losses
$
5,247,741
$
5,260,416
$
5,229,475
$
5,306,809
$
5,230,198
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Deposits
(Unaudited)
TABLE 7
Jun 30,
Mar 31,
Dec 31,
Sep 30,
Jun 30,
(Dollars in thousands)
2026
2026
2025
2025
2025
Noninterest-bearing demand
$
1,917,502
$
1,897,593
$
1,891,198
$
1,903,614
$
1,938,226
Interest-bearing demand
1,407,574
1,428,323
1,388,107
1,340,725
1,336,620
Savings and money market
2,376,831
2,378,834
2,346,522
2,292,881
2,242,122
Time deposits up to $250,000
421,811
429,564
433,629
444,005
439,687
Core deposits
6,123,718
6,134,314
6,059,456
5,981,225
5,956,655
Other time deposits greater than $250,000
441,059
431,013
412,188
458,339
459,945
Government time deposits
130,977
134,027
138,120
138,120
128,389
Total time deposits greater than $250,000
572,036
565,040
550,308
596,459
588,334
Total deposits
$
6,695,754
$
6,699,354
$
6,609,764
$
6,577,684
$
6,544,989
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)
2026
2026
2025
2025
2025
Nonaccrual loans:
Commercial and industrial
$
192
$
490
$
591
$
357
$
110
Real estate:
Residential mortgage
9,268
10,518
10,572
11,413
12,327
Home equity
5,619
2,986
2,608
2,119
1,889
Consumer
543
530
615
430
569
Total nonaccrual loans
15,622
14,524
14,386
14,319
14,895
Other real estate owned ("OREO"):
Real estate:
Residential mortgage
924
—
—
—
—
Total OREO
924
—
—
—
—
Total nonperforming assets ("NPAs")
16,546
14,524
14,386
14,319
14,895
Accruing loans 90+ days past due:
Real estate:
Residential mortgage
—
—
664
1,159
1,625
Home equity
—
—
485
—
21
Consumer
286
290
403
349
418
Total accruing loans 90+ days past due
286
290
1,552
1,508
2,064
Total NPAs and accruing loans 90+ days past due
$
16,832
$
14,814
$
15,938
$
15,827
$
16,959
Ratio of total nonaccrual loans to total loans
0.29
%
0.27
%
0.27
%
0.27
%
0.28
%
Ratio of total NPAs to total assets
0.22
0.19
0.19
0.19
0.20
Ratio of total NPAs to total loans and OREO
0.31
0.27
0.27
0.27
0.28
Ratio of total NPAs and accruing loans 90+ days past due to total loans and OREO
0.32
0.28
0.30
0.29
0.32
Quarter-to-quarter changes in NPAs:
Balance at beginning of quarter
$
14,524
$
14,386
$
14,319
$
14,895
$
11,085
Additions
4,202
2,094
2,549
838
5,879
Reductions:
Payments
(782)
(284)
(397)
(286)
(585)
Return to accrual status
(16)
(883)
(1,098)
(821)
(861)
Charge-offs, valuation adjustments and other reductions
(1,382)
(789)
(987)
(307)
(623)
Total reductions
(2,180)
(1,956)
(2,482)
(1,414)
(2,069)
Balance at end of quarter
$
16,546
$
14,524
$
14,386
$
14,319
$
14,895
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)
2026
2026
2025
2025
2025
2026
2025
Allowance for credit losses ("ACL") on loans:
Balance at beginning of period
$
59,933
$
59,621
$
60,393
$
59,611
$
60,469
$
59,621
$
59,182
Provision for credit losses on loans
3,304
2,724
1,685
3,440
3,810
6,028
7,715
Charge-offs:
Commercial and industrial
(1,353)
(1,056)
(678)
(1,071)
(2,858)
(2,409)
(3,438)
Real estate:
Residential mortgage
(23)
—
—
—
—
(23)
—
Consumer
(2,283)
(2,301)
(2,831)
(2,824)
(2,864)
(4,584)
(5,841)
Total charge-offs
(3,659)
(3,357)
(3,509)
(3,895)
(5,722)
(7,016)
(9,279)
Recoveries:
Commercial and industrial
198
175
266
204
195
373
366
Real estate:
Construction
—
2
1
—
3
2
3
Residential mortgage
10
8
9
8
7
18
17
Home equity
6
6
9
9
9
12
12
Consumer
789
754
767
1,016
840
1,543
1,595
Total recoveries
1,003
945
1,052
1,237
1,054
1,948
1,993
Net charge-offs
(2,656)
(2,412)
(2,457)
(2,658)
(4,668)
(5,068)
(7,286)
Balance at end of period
$
60,581
$
59,933
$
59,621
$
60,393
$
59,611
$
60,581
$
59,611
Average loans, net of deferred fees and costs
$
5,300,949
$
5,268,482
$
5,328,499
$
5,332,656
$
5,307,946
$
5,284,805
$
5,309,768
Ratio of annualized net charge-offs to average loans
0.20
%
0.18
%
0.18
%
0.20
%
0.35
%
0.19
%
0.27
%
Ratio of ACL to total loans
1.14
1.13
1.13
1.13
1.13
1.14
1.13
CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)
TABLE 10
To supplement its consolidated financial information, the Company utilizes certain non-GAAP financial measures. These measures are not intended to be considered in isolation or as a substitute for comparable GAAP results. The Company believes these non-GAAP financial measures provide meaningful insight to investors and other stakeholders in understanding its financial performance and position, by excluding certain transactions that may be non-recurring, non-operational, or not indicative of ongoing results. The Company believes that these non-GAAP measures offer a useful perspective for evaluating performance trends over time and are intended to support period-to-period comparisons. The Company believes they are valuable tools for both investors and management in assessing historical results and forecasting future performance. Non-GAAP financial measures may not be comparable to similarly entitled measures reported by other companies. The results for the three months ended June 30, 2026 were not materially impacted by items outside of the normal course of business.
A key measure of operating efficiency monitored by the Company is the efficiency ratio, which is derived from GAAP-based amounts. It is calculated by dividing total other operating expenses by total pre-provision revenue (defined as net interest income plus total other operating income). The Company believes that the efficiency ratio, a non-GAAP financial measure, provides a useful supplemental metric that enhances understanding of its business performance and operating efficiency. However, this ratio should not be viewed as a substitute for GAAP results and may not be comparable to similarly titled measures reported by other companies. The following table presents the Company's efficiency ratio for the periods indicated:
Three Months Ended
Six Months Ended
(dollars in thousands)
Jun 30, 2026
Dec 31, 2025
Jun 30, 2025
Jun 30, 2026
Jun 30, 2025
Total other operating expense
$
46,180
$
45,680
$
43,946
$
89,846
$
86,018
Net interest income
$
62,834
$
62,087
$
59,796
$
124,192
$
117,495
Total other operating income
14,620
14,201
13,013
26,194
24,109
Total revenue
$
77,454
$
76,288
$
72,809
$
150,386
$
141,604
Efficiency ratio (non-GAAP)
59.62
%
59.88
%
60.36
%
59.74
%
60.75
%
The table below presents the Tangible Common Equity ("TCE") ratio, a non-GAAP financial measure, as of the dates indicated. The TCE ratio is calculated by dividing tangible common equity by tangible assets.
