CPF · Central Pacific Financial Corp.

Central Pacific Financial Corp. reported first quarter 2026 net income of $20.7 million ($0.78 per diluted share), down from $22.9 million ($0.85) in the prior quarter but up from $17.8 million ($0.65) in the same quarter last year. The sequential decline was driven by lower net interest income ($61.4 million vs. $62.1 million) due to a 3 bps compression in net interest margin to 3.53%, reflecting lower average loan yields and two fewer days in the quarter, partially offset by lower deposit costs. Other operating income fell to $11.6 million from $14.2 million, primarily due to a $2.4 million decrease in bank-owned life insurance income (including $1.4 million death benefits in prior quarter) and lower mortgage banking income. Operating expenses decreased to $43.7 million from $45.7 million, aided by lower salaries and benefits. The efficiency ratio improved to 59.87% from 59.88% sequentially and 61.16% year-over-year. Provision for credit losses was stable at $2.4 million. Balance sheet growth was evident: total loans increased $31.3 million to $5.32 billion, total deposits rose $89.6 million to $6.70 billion, and core deposits grew $74.9 million. Asset quality remained sound with nonperforming assets at 0.19% of total assets and net charge-offs annualized at 0.18%. The company repurchased 321,396 shares for $10.5 million and declared a $0.29 quarterly dividend. Management highlighted strong net income, balance sheet growth, healthy NIM, and disciplined expense management. The company was named SBA Lender of the Year in Hawaii for 2025.