8-K
Central Pacific Financial Corp (CPF)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
April 23, 2025
Date of Report (date of earliest event reported)
___________________________________
Central Pacific Financial Corp.
(Exact name of registrant as specified in its charter)
___________________________________
| Hawaii | 001-31567 | 99-0212597 |
|---|---|---|
| (State or other jurisdiction of<br>incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
220 South King Street, Honolulu, Hawaii 96813
(Address of principal executive offices and zip code)
(808) 544-0500
(Registrant’s telephone number, including area code)
___________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:Title of each classTrading Symbol(s)Name of each exchange on which registeredCommon stock, No Par ValueCPFNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On April 23, 2025, Central Pacific Financial Corp. (the "Company") issued a press release regarding its results of operations and financial condition for the quarter ended March 31, 2025. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.
ITEM 7.01. REGULATION FD DISCLOSURE
On April 23, 2025, Central Pacific Financial Corp. will hold an investor conference call and webcast to discuss financial results for the quarter ended March 31, 2025, including the attached press release and other matters relating to the Company.
The Company has also made available on its website a slide presentation containing certain additional information about the Company's financial results for the quarter ended March 31, 2025 (the "Earnings Supplement"). The Earnings Supplement is furnished herewith as Exhibit 99.2 and is incorporated herein by reference. All information in Exhibit 99.2 is presented as of the particular date or dates referenced therein, and the Company does not undertake any obligation to, and disclaims any duty to, update any of the information provided except as required by law.
The Earnings Supplement contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act and, as such, may involve known and unknown risks, uncertainties and assumptions. These forward-looking statements relate to the Company’s current expectations and are subject to the limitations and qualifications set forth in the attached presentation as well as in the Company’s other documents filed with the Securities and Exchange Commission, including, without limitation, that actual events and/or results may differ materially from those projected in such forward-looking statements.
The information provided in Items 2.02 and 7.01 of this Current Report, including Exhibits 99.1 and 99.2, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall the information in Exhibits 99.1 and 99.2 be deemed incorporated by reference in any filings under the Securities Act of 1933, as amended.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
| (d) | Exhibits | |
|---|---|---|
| 99.1 | Press release dated April 23, 2025 | |
| 99.2 | Earnings Supplement | |
| 104 | Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Central Pacific Financial Corp. | ||
|---|---|---|
| (Registrant) | ||
| Date: | April 23, 2025 | /s/ Dayna N. Matsumoto |
| Dayna N. Matsumoto | ||
| Executive Vice President and Chief Financial Officer |
Document
Exhibit 99.1
| FOR IMMEDIATE RELEASE | |||
|---|---|---|---|
| Investor Contact: | Ian Tanaka | Media Contact: | Tim Sakahara |
| SVP, Treasurer | AVP, Corporate Communications Manager | ||
| (808) 544-3646 | (808) 544-5125 | ||
| ian.tanaka@cpb.bank | tim.sakahara@cpb.bank |
NEWS RELEASE
CENTRAL PACIFIC FINANCIAL REPORTS FIRST QUARTER 2025 EARNINGS OF $17.8 MILLION
Highlights include:
•Net income of $17.8 million, or $0.65 per diluted share
•Return on average assets of 0.96% and return on average equity of 13.04%
•Efficiency ratio improved to 61.16%
•Net interest margin of 3.31% increased by 14 bps from 3.17% in the previous quarter
•Total loans of $5.33 billion increased by $1.7 million from the previous quarter
•Total deposits of $6.60 billion decreased by $48.0 million from the previous quarter. Core deposits of $5.98 billion decreased by $64.6 million from the previous quarter.
•Total risk-based capital and common equity tier 1 ratios of 15.6% and 12.4%, respectively
•The CPF Board of Directors approved a quarterly cash dividend of $0.27 per share
HONOLULU, HI, April 23, 2025 – Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), today reported net income of $17.8 million, or fully diluted earnings per share ("EPS") of $0.65 for the first quarter of 2025, compared to net income of $11.3 million, or EPS of $0.42 in the previous quarter and net income of $12.9 million, or EPS of $0.48 in the year-ago quarter. Results for the previous quarter were impacted by a pre-tax loss related to an investment portfolio repositioning of $9.9 million, as previously reported.
"Our first quarter financial results were solid and continue to trend favorably. Through our balance sheet optimization and strong focus on meeting the needs of our customers, we were successful in continuing to meaningfully grow net interest income and net interest margin. Our asset quality has improved further with a decline in net charge-offs and continued low levels of non-performing assets. With our strong capital, liquidity and credit positions, we believe we are well positioned to navigate the current operating environment," said Arnold Martines, Chairman, President and Chief Executive Officer.
Earnings Highlights
Net interest income was $57.7 million for the first quarter of 2025, which increased by $1.9 million, or 3.5% from the previous quarter, and increased by $7.5 million, or 15.0% from the year-ago quarter. Net interest margin ("NIM") was 3.31% for the first quarter of 2025, an increase of 14 basis points ("bp" or "bps") from the previous quarter and an increase of 48 bps from the year-ago quarter. The sequential quarter increase in net interest income and NIM was primarily due to a 19 bps decline in average rates paid on interest-bearing deposits, combined with a higher average yield earned on investment securities of 24 bps, partially offset by a decline in the average yield earned on loans of 3 bps. The higher average yield earned on investment securities in the first quarter of
Central Pacific Financial Reports First Quarter 2025 Earnings of $17.8 Million
Page 2
2025 was primarily due to the investment securities portfolio repositioning completed in the fourth quarter of 2024. Interest income on investment securities also included $0.7 million in income from an interest rate swap, compared to $0.6 million in the fourth quarter of 2024.
The Company recorded a provision for credit losses of $4.2 million in the first quarter of 2025, compared to a provision of $0.8 million in the previous quarter and a provision of $3.9 million in the year-ago quarter. The provision in the current quarter consisted of a provision for credit losses on loans of $3.9 million and a provision for off-balance sheet exposures of $0.3 million. The increase in the provision from the previous quarter was primarily driven by the macro-economic forecast used in our current expected credit losses model.
Other operating income totaled $11.1 million for the first quarter of 2025, compared to $2.6 million in the previous quarter and $11.2 million in the year-ago quarter. The increase in other operating income from the previous quarter was primarily due to the aforementioned $9.9 million pre-tax loss on an investment securities portfolio repositioning completed in the previous quarter, partially offset by lower income from bank-owned life insurance of $1.5 million.
Other operating expense totaled $42.1 million for the first quarter of 2025, compared to $44.2 million in the previous quarter and $40.6 million in the year-ago quarter. The decrease in other operating expense from the previous quarter was primarily due to an impairment charge on intangible assets of $1.4 million (included in other) recorded in the previous quarter.
The efficiency ratio improved to 61.16% for the first quarter of 2025, compared to 75.65% in the previous quarter and 66.05% in the year-ago quarter. Excluding the aforementioned pre-tax loss related to an investment portfolio repositioning of $9.9 million, the adjusted efficiency ratio (non-GAAP) for the previous quarter was 64.65%.
The effective tax rate was 21.2% for the first quarter of 2025, compared to 15.4% in the previous quarter and 23.5% in the year-ago quarter. The effective tax rate in the fourth quarter of 2024 included additional tax credits recognized and tax return to provision adjustments.
Balance Sheet Highlights
Total assets of $7.41 billion at March 31, 2025 decreased by $66.9 million, or 0.9% from $7.47 billion at December 31, 2024, and was relatively flat compared to $7.41 billion at March 31, 2024. The Company had $276.9 million in cash on its balance sheet and $2.54 billion in total other liquidity sources, including available borrowing capacity and unpledged investment securities at March 31, 2025.
Total loans, net of deferred fees and costs, of $5.33 billion at March 31, 2025 was relatively flat compared to $5.33 billion at December 31, 2024, and decreased by $66.9 million, or 1.2% from $5.40 billion at March 31, 2024. Average yields earned on loans during the first quarter of 2025 was 4.88%, compared to 4.91% in the previous quarter and 4.67% in the year-ago quarter.
Total deposits of $6.60 billion at March 31, 2025 decreased by $48.0 million or 0.72% from $6.64 billion at December 31, 2024, and decreased by $22.8 million, or 0.3% from $6.62 billion at March 31, 2024. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $5.98 billion at March 31, 2025, and decreased by $64.6 million, or 1.1% from $6.04 billion at December 31, 2024 and increased by $80.2 million, or 1.4% from $5.90 billion at March 31, 2024. Average rates paid on total deposits during the first quarter of 2025 was 1.08%, compared to 1.21% in the previous quarter and 1.32% in the year-ago quarter.
Asset Quality
Nonperforming assets totaled $11.1 million, or 0.15% of total assets at March 31, 2025, compared to $11.0 million, or 0.15% of total assets at December 31, 2024 and $10.1 million, or 0.14% of total assets at March 31, 2024.
Net charge-offs totaled $2.6 million in the first quarter of 2025, compared to net charge-offs of $3.8 million in the previous quarter, and net charge-offs of $4.5 million in the year-ago quarter. Annualized net charge-offs as a percentage of average loans was 0.20%, 0.29% and 0.34% during the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
The allowance for credit losses, as a percentage of total loans was 1.13% at March 31, 2025, compared to 1.11% at December 31, 2024, and 1.18% at March 31, 2024.
Central Pacific Financial Reports First Quarter 2025 Earnings of $17.8 Million
Page 3
Capital
Total shareholders' equity was $557.4 million at March 31, 2025, compared to $538.4 million and $507.2 million at December 31, 2024 and March 31, 2024, respectively.
During the first quarter of 2025, the Company repurchased 77,316 shares of common stock at a total cost of $2.1 million, or $27.09 per share. As of March 31, 2025, $27.9 million in share repurchase authorization remained available under the Company's share repurchase program.
The Company's leverage, common equity tier 1, tier 1 risk-based capital, and total risk-based capital ratios were 9.4%, 12.4%, 13.4%, and 15.6%, respectively, at March 31, 2025, compared to 9.3%, 12.3%, 13.2%, and 15.4%, respectively, at December 31, 2024.
On April 22, 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 June 16, 2025 to shareholders of record at the close of business on May 30, 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 May 23, 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 $7.41 billion in assets as of March 31, 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 First Quarter 2025 Earnings of $17.8 Million
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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 inflation and interest rate fluctuations; the effects of trade policy and tariffs and other executive orders; 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 the COVID-19 pandemic virus (and its variants) and other pandemic viruses 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; political instability; acts of war or terrorism; changes in consumer spending, borrowings and savings habits; technological changes and developments; cybersecurity and data privacy breaches and the consequence therefrom; 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; 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 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 | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| (Dollars in thousands, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | ||||||||||||||||
| except for per share amounts) | 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| CONDENSED INCOME STATEMENT | |||||||||||||||||||||
| Net interest income | $ | 57,699 | $ | 55,774 | $ | 53,851 | $ | 51,921 | $ | 50,187 | |||||||||||
| Provision for credit losses | 4,172 | 818 | 2,833 | 2,239 | 3,936 | ||||||||||||||||
| Total other operating income | 11,096 | 2,624 | 12,734 | 12,121 | 11,244 | ||||||||||||||||
| Total other operating expense | 42,072 | 44,177 | 46,687 | 41,151 | 40,576 | ||||||||||||||||
| Income tax expense | 4,791 | 2,058 | 3,760 | 4,835 | 3,974 | ||||||||||||||||
| Net income | 17,760 | 11,345 | 13,305 | 15,817 | 12,945 | ||||||||||||||||
| Basic earnings per share | $ | 0.66 | $ | 0.42 | $ | 0.49 | $ | 0.58 | $ | 0.48 | |||||||||||
| Diluted earnings per share | 0.65 | 0.42 | 0.49 | 0.58 | 0.48 | ||||||||||||||||
| Dividends declared per share | 0.27 | 0.26 | 0.26 | 0.26 | 0.26 | ||||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||||
| Return on average assets (ROA) [1] | 0.96 | % | 0.62 | % | 0.72 | % | 0.86 | % | 0.70 | % | |||||||||||
| Return on average equity (ROE) [1] | 13.04 | 8.37 | 10.02 | 12.42 | 10.33 | ||||||||||||||||
| Average equity to average assets | 7.37 | 7.35 | 7.23 | 6.94 | 6.73 | ||||||||||||||||
| Efficiency ratio [2] | 61.16 | 75.65 | 70.12 | 64.26 | 66.05 | ||||||||||||||||
| Net interest margin (NIM) [1] | 3.31 | 3.17 | 3.07 | 2.97 | 2.83 | ||||||||||||||||
| Dividend payout ratio [3] | 41.54 | 61.90 | 53.06 | 44.83 | 54.17 | ||||||||||||||||
| SELECTED AVERAGE BALANCES | |||||||||||||||||||||
| Average loans, including loans held for sale | $ | 5,311,610 | $ | 5,315,802 | $ | 5,330,810 | $ | 5,385,829 | $ | 5,400,558 | |||||||||||
| Average interest-earning assets | 7,054,488 | 7,052,296 | 7,022,910 | 7,032,515 | 7,140,264 | ||||||||||||||||
| Average assets | 7,388,783 | 7,377,398 | 7,347,403 | 7,338,714 | 7,449,661 | ||||||||||||||||
| Average deposits | 6,561,100 | 6,546,616 | 6,535,422 | 6,542,767 | 6,659,812 | ||||||||||||||||
| Average interest-bearing liabilities | 4,914,398 | 4,906,623 | 4,904,460 | 4,910,998 | 5,009,542 | ||||||||||||||||
| Average equity | 544,888 | 542,135 | 530,928 | 509,507 | 501,120 | ||||||||||||||||
| [1] ROA and ROE are annualized based on a 30/360 day convention. Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual). | |||||||||||||||||||||
| [2] Efficiency ratio is defined as total other operating expense divided by total revenue (net interest income and total other operating income). | |||||||||||||||||||||
| [3] Dividend payout ratio is defined as dividends declared per share divided by diluted earnings per share. | |||||||||||||||||||||
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| Financial Highlights | |||||||||||||||||||||
| (Unaudited) | TABLE 1 (CONTINUED) | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||||
| REGULATORY CAPITAL RATIOS | |||||||||||||||||||||
| Central Pacific Financial Corp. | |||||||||||||||||||||
| Leverage ratio | 9.4 | % | 9.3 | % | 9.5 | % | 9.3 | % | 9.0 | % | |||||||||||
| Common equity tier 1 capital ratio | 12.4 | 12.3 | 12.1 | 11.9 | 11.6 | ||||||||||||||||
| Tier 1 risk-based capital ratio | 13.4 | 13.2 | 13.1 | 12.8 | 12.6 | ||||||||||||||||
| Total risk-based capital ratio | 15.6 | 15.4 | 15.3 | 15.1 | 14.8 | ||||||||||||||||
| Central Pacific Bank | |||||||||||||||||||||
| Leverage ratio | 9.8 | 9.7 | 9.8 | 9.6 | 9.4 | ||||||||||||||||
| Common equity tier 1 capital ratio | 14.0 | 13.8 | 13.6 | 13.3 | 13.1 | ||||||||||||||||
| Tier 1 risk-based capital ratio | 14.0 | 13.8 | 13.6 | 13.3 | 13.1 | ||||||||||||||||
| Total risk-based capital ratio | 15.2 | 14.9 | 14.8 | 14.5 | 14.3 | ||||||||||||||||
| Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| (dollars in thousands, except for per share amounts) | 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| BALANCE SHEET | |||||||||||||||||||||
| Total loans, net of deferred fees and costs | $ | 5,334,547 | $ | 5,332,852 | $ | 5,342,609 | $ | 5,383,644 | $ | 5,401,417 | |||||||||||
| Total assets | 7,405,239 | 7,472,096 | 7,415,430 | 7,386,952 | 7,409,999 | ||||||||||||||||
| Total deposits | 6,596,048 | 6,644,011 | 6,583,013 | 6,582,455 | 6,618,854 | ||||||||||||||||
| Long-term debt | 131,405 | 156,345 | 156,284 | 156,223 | 156,163 | ||||||||||||||||
| Total equity | 557,376 | 538,385 | 543,725 | 518,647 | 507,203 | ||||||||||||||||
| Total equity to total assets | 7.53 | % | 7.21 | % | 7.33 | % | 7.02 | % | 6.84 | % | |||||||||||
| ASSET QUALITY | |||||||||||||||||||||
| Allowance for credit losses (ACL) | $ | 60,469 | $ | 59,182 | $ | 61,647 | $ | 62,225 | $ | 63,532 | |||||||||||
| Nonaccrual loans | 11,085 | 11,018 | 11,597 | 10,257 | 10,132 | ||||||||||||||||
| Non-performing assets (NPA) | 11,085 | 11,018 | 11,597 | 10,257 | 10,132 | ||||||||||||||||
| Ratio of ACL to total loans | 1.13 | % | 1.11 | % | 1.15 | % | 1.16 | % | 1.18 | % | |||||||||||
| Ratio of NPA to total assets | 0.15 | % | 0.15 | % | 0.16 | % | 0.14 | % | 0.14 | % | |||||||||||
| PER SHARE OF COMMON STOCK OUTSTANDING | |||||||||||||||||||||
| Book value per common share | $ | 20.60 | $ | 19.89 | $ | 20.09 | $ | 19.16 | $ | 18.76 | |||||||||||
| Closing market price per common share | 27.04 | 29.05 | 29.51 | 21.20 | 19.75 | ||||||||||||||||
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| Consolidated Balance Sheets | |||||||||||||||||||||
| (Unaudited) | TABLE 2 | ||||||||||||||||||||
| Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| (Dollars in thousands, except share data) | 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| ASSETS | |||||||||||||||||||||
| Cash and due from financial institutions | $ | 106,670 | $ | 77,774 | $ | 100,064 | $ | 103,829 | $ | 98,410 | |||||||||||
| Interest-bearing deposits in other financial institutions | 170,226 | 303,167 | 226,505 | 195,062 | 214,472 | ||||||||||||||||
| Investment securities: | |||||||||||||||||||||
| Debt securities available-for-sale, at fair value | 780,379 | 737,658 | 723,453 | 676,719 | 660,833 | ||||||||||||||||
| Debt securities held-to-maturity, at amortized cost; fair value of: $511,717 at March 31, 2025, $506,681 at December 31, 2024, $546,990 at September 30, 2024, $528,088 at June 30, 2024, and $541,685 at March 31, 2024 | 589,688 | 596,930 | 606,117 | 615,867 | 624,948 | ||||||||||||||||
| Total investment securities | 1,370,067 | 1,334,588 | 1,329,570 | 1,292,586 | 1,285,781 | ||||||||||||||||
| Loans held for sale | 2,788 | 5,662 | 1,609 | 3,950 | 755 | ||||||||||||||||
| Loans, net of deferred fees and costs | 5,334,547 | 5,332,852 | 5,342,609 | 5,383,644 | 5,401,417 | ||||||||||||||||
| Less: allowance for credit losses | (60,469) | (59,182) | (61,647) | (62,225) | (63,532) | ||||||||||||||||
| Loans, net of allowance for credit losses | 5,274,078 | 5,273,670 | 5,280,962 | 5,321,419 | 5,337,885 | ||||||||||||||||
| Premises and equipment, net | 103,490 | 104,342 | 104,575 | 100,646 | 97,688 | ||||||||||||||||
| Accrued interest receivable | 24,743 | 23,378 | 23,942 | 23,184 | 21,957 | ||||||||||||||||
| Investment in unconsolidated entities | 50,885 | 52,417 | 54,836 | 40,155 | 40,780 | ||||||||||||||||
| Mortgage servicing rights | 8,418 | 8,473 | 8,513 | 8,636 | 8,599 | ||||||||||||||||
| Bank-owned life insurance | 176,846 | 176,216 | 175,914 | 173,716 | 172,228 | ||||||||||||||||
| Federal Home Loan Bank of Des Moines ("FHLB") and Federal Reserve Bank ("FRB") stock | 24,163 | 6,929 | 6,929 | 6,925 | 6,921 | ||||||||||||||||
| Right-of-use lease assets | 29,829 | 30,824 | 32,192 | 32,081 | 32,079 | ||||||||||||||||
| Other assets | 63,036 | 74,656 | 69,819 | 84,763 | 92,444 | ||||||||||||||||
| Total assets | $ | 7,405,239 | $ | 7,472,096 | $ | 7,415,430 | $ | 7,386,952 | $ | 7,409,999 | |||||||||||
| LIABILITIES | |||||||||||||||||||||
| Deposits: | |||||||||||||||||||||
| Noninterest-bearing demand | $ | 1,854,241 | $ | 1,888,937 | $ | 1,838,009 | $ | 1,847,173 | $ | 1,848,554 | |||||||||||
| Interest-bearing demand | 1,368,519 | 1,338,719 | 1,255,382 | 1,283,669 | 1,290,321 | ||||||||||||||||
| Savings and money market | 2,316,416 | 2,329,170 | 2,336,323 | 2,234,111 | 2,211,966 | ||||||||||||||||
| Time | 1,056,872 | 1,087,185 | 1,153,299 | 1,217,502 | 1,268,013 | ||||||||||||||||
| Total deposits | 6,596,048 | 6,644,011 | 6,583,013 | 6,582,455 | 6,618,854 | ||||||||||||||||
| Long-term debt, net of unamortized debt issuance costs of: $142 at March 31, 2025, $202 at December 31, 2024, $263 at September 30, 2024, $324 at June 30, 2024, and $384 at March 31, 2024 | 131,405 | 156,345 | 156,284 | 156,223 | 156,163 | ||||||||||||||||
| Lease liabilities | 31,057 | 32,025 | 33,807 | 33,422 | 33,169 | ||||||||||||||||
| Accrued interest payable | 8,757 | 10,051 | 12,980 | 14,998 | 16,654 | ||||||||||||||||
| Other liabilities | 80,596 | 91,279 | 85,621 | 81,207 | 77,956 | ||||||||||||||||
| Total liabilities | 6,847,863 | 6,933,711 | 6,871,705 | 6,868,305 | 6,902,796 | ||||||||||||||||
| EQUITY | |||||||||||||||||||||
| Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024 | — | — | — | — | — | ||||||||||||||||
| Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 27,061,589 at March 31, 2025, 27,065,570 at December 31, 2024, 27,064,501 at September 30, 2024, 27,063,644 at June 30, 2024, and 27,042,326 at March 31, 2024 | 402,400 | 404,494 | 404,494 | 404,494 | 404,494 | ||||||||||||||||
| Additional paid-in capital | 104,849 | 105,054 | 104,794 | 104,161 | 103,130 | ||||||||||||||||
| Retained earnings | 153,692 | 143,259 | 138,951 | 132,683 | 123,902 | ||||||||||||||||
| Accumulated other comprehensive loss | (103,565) | (114,422) | (104,514) | (122,691) | (124,323) | ||||||||||||||||
| Total equity | 557,376 | 538,385 | 543,725 | 518,647 | 507,203 | ||||||||||||||||
| Total liabilities and equity | $ | 7,405,239 | $ | 7,472,096 | $ | 7,415,430 | $ | 7,386,952 | $ | 7,409,999 | |||||||||||
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||||||
| (Unaudited) | TABLE 3 | Three Months Ended | |||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||||||||
| (Dollars in thousands, except per share data) | 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| Interest income: | |||||||||||||||||||||
| Interest and fees on loans | $ | 64,119 | $ | 65,482 | $ | 65,469 | $ | 64,422 | $ | 62,819 | |||||||||||
| Interest and dividends on investment securities: | |||||||||||||||||||||
| Taxable investment securities | 9,801 | 8,626 | 8,975 | 8,466 | 7,211 | ||||||||||||||||
| Tax-exempt investment securities | 708 | 723 | 551 | 598 | 655 | ||||||||||||||||
| Interest on deposits in other financial institutions | 2,254 | 3,004 | 2,775 | 2,203 | 3,611 | ||||||||||||||||
| Dividend income on FHLB and FRB stock | 324 | 125 | 127 | 151 | 106 | ||||||||||||||||
| Total interest income | 77,206 | 77,960 | 77,897 | 75,840 | 74,402 | ||||||||||||||||
| Interest expense: | |||||||||||||||||||||
| Interest on deposits: | |||||||||||||||||||||
| Interest-bearing demand | 452 | 686 | 484 | 490 | 499 | ||||||||||||||||
| Savings and money market | 8,862 | 9,388 | 10,235 | 8,977 | 8,443 | ||||||||||||||||
| Time | 8,107 | 9,881 | 11,040 | 12,173 | 12,990 | ||||||||||||||||
| Interest on short-term borrowings | — | — | — | 1 | — | ||||||||||||||||
| Interest on long-term debt | 2,086 | 2,231 | 2,287 | 2,278 | 2,283 | ||||||||||||||||
| Total interest expense | 19,507 | 22,186 | 24,046 | 23,919 | 24,215 | ||||||||||||||||
| Net interest income | 57,699 | 55,774 | 53,851 | 51,921 | 50,187 | ||||||||||||||||
| Provision for credit losses | 4,172 | 818 | 2,833 | 2,239 | 3,936 | ||||||||||||||||
| Net interest income after provision for credit losses | 53,527 | 54,956 | 51,018 | 49,682 | 46,251 | ||||||||||||||||
| Other operating income: | |||||||||||||||||||||
| Mortgage banking income | 597 | 913 | 822 | 1,040 | 613 | ||||||||||||||||
| Service charges on deposit accounts | 2,147 | 2,251 | 2,167 | 2,135 | 2,103 | ||||||||||||||||
| Other service charges and fees | 5,766 | 5,476 | 5,947 | 5,869 | 5,261 | ||||||||||||||||
| Income from fiduciary activities | 1,624 | 1,430 | 1,447 | 1,449 | 1,435 | ||||||||||||||||
| Income from bank-owned life insurance | 497 | 1,966 | 1,897 | 1,234 | 1,522 | ||||||||||||||||
| Net loss on sales of investment securities | — | (9,934) | — | — | — | ||||||||||||||||
| Other | 465 | 522 | 454 | 394 | 310 | ||||||||||||||||
| Total other operating income | 11,096 | 2,624 | 12,734 | 12,121 | 11,244 | ||||||||||||||||
| Other operating expense: | |||||||||||||||||||||
| Salaries and employee benefits | 21,819 | 21,661 | 22,299 | 21,246 | 20,735 | ||||||||||||||||
| Net occupancy | 4,392 | 4,192 | 4,612 | 4,597 | 4,600 | ||||||||||||||||
| Computer software | 4,714 | 4,757 | 4,590 | 4,381 | 4,287 | ||||||||||||||||
| Legal and professional services | 2,798 | 2,504 | 2,460 | 2,506 | 2,320 | ||||||||||||||||
| Equipment | 1,082 | 904 | 972 | 995 | 1,010 | ||||||||||||||||
| Advertising | 887 | 911 | 889 | 901 | 914 | ||||||||||||||||
| Communication | 1,033 | 943 | 740 | 657 | 837 | ||||||||||||||||
| Other | 5,347 | 8,305 | 10,125 | 5,868 | 5,873 | ||||||||||||||||
| Total other operating expense | 42,072 | 44,177 | 46,687 | 41,151 | 40,576 | ||||||||||||||||
| Income before income taxes | 22,551 | 13,403 | 17,065 | 20,652 | 16,919 | ||||||||||||||||
| Income tax expense | 4,791 | 2,058 | 3,760 | 4,835 | 3,974 | ||||||||||||||||
| Net income | $ | 17,760 | $ | 11,345 | $ | 13,305 | $ | 15,817 | $ | 12,945 | |||||||||||
| Per common share data: | |||||||||||||||||||||
| Basic earnings per share | $ | 0.66 | $ | 0.42 | $ | 0.49 | $ | 0.58 | $ | 0.48 | |||||||||||
| Diluted earnings per share | 0.65 | 0.42 | 0.49 | 0.58 | 0.48 | ||||||||||||||||
| Cash dividends declared | 0.27 | 0.26 | 0.26 | 0.26 | 0.26 | ||||||||||||||||
| Basic weighted average shares outstanding | 27,087,154 | 27,065,047 | 27,064,035 | 27,053,549 | 27,046,525 | ||||||||||||||||
| Diluted weighted average shares outstanding | 27,213,406 | 27,221,121 | 27,194,625 | 27,116,349 | 27,099,101 | ||||||||||||||||
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent) | |||||||||||||||||||||
| (Unaudited) | TABLE 4 | Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||
| March 31, 2025 | December 31, 2024 | March 31, 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 | $ | 206,108 | 4.44 | % | $ | 2,254 | $ | 250,493 | 4.77 | % | $ | 3,004 | $ | 265,418 | 5.47 | % | $ | 3,611 | |||
| Investment securities: | |||||||||||||||||||||
| Taxable | 1,376,687 | 2.85 | 9,801 | 1,338,569 | 2.58 | 8,626 | 1,324,657 | 2.18 | 7,211 | ||||||||||||
| Tax-exempt [1] | 139,589 | 2.57 | 896 | 140,503 | 2.60 | 915 | 142,830 | 2.32 | 829 | ||||||||||||
| Total investment securities | 1,516,276 | 2.82 | 10,697 | 1,479,072 | 2.58 | 9,541 | 1,467,487 | 2.19 | 8,040 | ||||||||||||
| Loans, including loans held for sale | 5,311,610 | 4.88 | 64,119 | 5,315,802 | 4.91 | 65,482 | 5,400,558 | 4.67 | 62,819 | ||||||||||||
| FHLB and FRB stock | 20,494 | 6.32 | 324 | 6,929 | 7.23 | 125 | 6,801 | 6.24 | 106 | ||||||||||||
| Total interest-earning assets | 7,054,488 | 4.43 | 77,394 | 7,052,296 | 4.42 | 78,152 | 7,140,264 | 4.19 | 74,576 | ||||||||||||
| Noninterest-earning assets | 334,295 | 325,102 | 309,397 | ||||||||||||||||||
| Total assets | $ | 7,388,783 | $ | 7,377,398 | $ | 7,449,661 | |||||||||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||
| Interest-bearing demand deposits | $ | 1,355,360 | 0.14 | % | $ | 452 | $ | 1,312,561 | 0.21 | % | $ | 686 | $ | 1,296,865 | 0.15 | % | $ | 499 | |||
| Savings and money market deposits | 2,345,445 | 1.53 | 8,862 | 2,313,293 | 1.61 | 9,388 | 2,218,250 | 1.53 | 8,443 | ||||||||||||
| Time deposits up to $250,000 | 457,473 | 2.51 | 2,832 | 518,540 | 2.99 | 3,900 | 544,279 | 3.21 | 4,339 | ||||||||||||
| Time deposits over $250,000 | 603,919 | 3.54 | 5,275 | 605,920 | 3.93 | 5,981 | 794,019 | 4.38 | 8,651 | ||||||||||||
| Total interest-bearing deposits | 4,762,197 | 1.48 | 17,421 | 4,750,314 | 1.67 | 19,955 | 4,853,413 | 1.82 | 21,932 | ||||||||||||
| Federal funds purchased and securities sold | — | — | — | 2 | 5.57 | — | — | — | — | ||||||||||||
| FHLB advances and other short-term borrowings | — | — | — | 2 | 5.04 | — | — | — | — | ||||||||||||
| Long-term debt | 152,201 | 5.56 | 2,086 | 156,305 | 5.68 | 2,231 | 156,129 | 5.88 | 2,283 | ||||||||||||
| Total interest-bearing liabilities | 4,914,398 | 1.61 | 19,507 | 4,906,623 | 1.80 | 22,186 | 5,009,542 | 1.94 | 24,215 | ||||||||||||
| Noninterest-bearing deposits | 1,798,903 | 1,796,302 | 1,806,399 | ||||||||||||||||||
| Other liabilities | 130,594 | 132,338 | 132,600 | ||||||||||||||||||
| Total liabilities | 6,843,895 | 6,835,263 | 6,948,541 | ||||||||||||||||||
| Total equity | 544,888 | 542,135 | 501,120 | ||||||||||||||||||
| Total liabilities and equity | $ | 7,388,783 | $ | 7,377,398 | $ | 7,449,661 | |||||||||||||||
| Net interest income (taxable-equivalent) | 57,887 | 55,966 | 50,361 | ||||||||||||||||||
| Taxable-equivalent adjustment | (188) | (192) | (174) | ||||||||||||||||||
| Net interest income (GAAP) | $ | 57,699 | $ | 55,774 | $ | 50,187 | |||||||||||||||
| Interest rate spread | 2.82 | % | 2.62 | % | 2.25 | % | |||||||||||||||
| Net interest margin (taxable-equivalent) | 3.31 | % | 3.17 | % | 2.83 | % | |||||||||||||||
| [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 5 | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| HAWAII: | |||||||||||||||||||||
| Commercial and industrial | $ | 461,020 | $ | 430,167 | $ | 411,209 | $ | 415,538 | $ | 420,009 | |||||||||||
| Real estate: | |||||||||||||||||||||
| Construction | 159,081 | 145,182 | 134,043 | 147,657 | 145,213 | ||||||||||||||||
| Residential mortgage | 1,870,239 | 1,892,520 | 1,897,919 | 1,913,177 | 1,924,889 | ||||||||||||||||
| Home equity | 655,237 | 676,982 | 697,123 | 706,811 | 729,210 | ||||||||||||||||
| Commercial mortgage | 1,174,573 | 1,165,060 | 1,157,625 | 1,150,703 | 1,103,174 | ||||||||||||||||
| Consumer | 219,941 | 274,712 | 277,849 | 287,295 | 306,563 | ||||||||||||||||
| Total loans, net of deferred fees and costs | 4,540,091 | 4,584,623 | 4,575,768 | 4,621,181 | 4,629,058 | ||||||||||||||||
| Less: Allowance for credit losses | (45,937) | (45,967) | (47,789) | (47,902) | (48,739) | ||||||||||||||||
| Loans, net of allowance for credit losses | $ | 4,494,154 | $ | 4,538,656 | $ | 4,527,979 | $ | 4,573,279 | $ | 4,580,319 | |||||||||||
| U.S. MAINLAND: [1] | |||||||||||||||||||||
| Commercial and industrial | $ | 173,600 | $ | 176,769 | $ | 188,238 | $ | 169,318 | $ | 156,087 | |||||||||||
| Real estate: | |||||||||||||||||||||
| Construction | 1,011 | 29 | 24,083 | 23,865 | 23,356 | ||||||||||||||||
| Commercial mortgage | 377,866 | 335,620 | 312,685 | 314,667 | 319,088 | ||||||||||||||||
| Consumer | 241,979 | 235,811 | 241,835 | 254,613 | 273,828 | ||||||||||||||||
| Total loans, net of deferred fees and costs | 794,456 | 748,229 | 766,841 | 762,463 | 772,359 | ||||||||||||||||
| Less: Allowance for credit losses | (14,532) | (13,215) | (13,858) | (14,323) | (14,793) | ||||||||||||||||
| Loans, net of allowance for credit losses | $ | 779,924 | $ | 735,014 | $ | 752,983 | $ | 748,140 | $ | 757,566 | |||||||||||
| TOTAL: | |||||||||||||||||||||
| Commercial and industrial | $ | 634,620 | $ | 606,936 | $ | 599,447 | $ | 584,856 | $ | 576,096 | |||||||||||
| Real estate: | |||||||||||||||||||||
| Construction | 160,092 | 145,211 | 158,126 | 171,522 | 168,569 | ||||||||||||||||
| Residential mortgage | 1,870,239 | 1,892,520 | 1,897,919 | 1,913,177 | 1,924,889 | ||||||||||||||||
| Home equity | 655,237 | 676,982 | 697,123 | 706,811 | 729,210 | ||||||||||||||||
| Commercial mortgage | 1,552,439 | 1,500,680 | 1,470,310 | 1,465,370 | 1,422,262 | ||||||||||||||||
| Consumer | 461,920 | 510,523 | 519,684 | 541,908 | 580,391 | ||||||||||||||||
| Total loans, net of deferred fees and costs | 5,334,547 | 5,332,852 | 5,342,609 | 5,383,644 | 5,401,417 | ||||||||||||||||
| Less: Allowance for credit losses | (60,469) | (59,182) | (61,647) | (62,225) | (63,532) | ||||||||||||||||
| Loans, net of allowance for credit losses | $ | 5,274,078 | $ | 5,273,670 | $ | 5,280,962 | $ | 5,321,419 | $ | 5,337,885 | |||||||||||
| [1] U.S. Mainland includes territories of the United States. | |||||||||||||||||||||
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| Deposits | |||||||||||||||||||||
| (Unaudited) | TABLE 6 | ||||||||||||||||||||
| Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| Noninterest-bearing demand | $ | 1,854,241 | $ | 1,888,937 | $ | 1,838,009 | $ | 1,847,173 | $ | 1,848,554 | |||||||||||
| Interest-bearing demand | 1,368,519 | 1,338,719 | 1,255,382 | 1,283,669 | 1,290,321 | ||||||||||||||||
| Savings and money market | 2,316,416 | 2,329,170 | 2,336,323 | 2,234,111 | 2,211,966 | ||||||||||||||||
| Time deposits up to $250,000 | 436,437 | 483,378 | 536,316 | 547,212 | 544,600 | ||||||||||||||||
| Core deposits | 5,975,613 | 6,040,204 | 5,966,030 | 5,912,165 | 5,895,441 | ||||||||||||||||
| Other time deposits greater than $250,000 | 475,861 | 500,693 | 492,221 | 476,457 | 487,950 | ||||||||||||||||
| Government time deposits | 144,574 | 103,114 | 124,762 | 193,833 | 235,463 | ||||||||||||||||
| Total time deposits greater than $250,000 | 620,435 | 603,807 | 616,983 | 670,290 | 723,413 | ||||||||||||||||
| Total deposits | $ | 6,596,048 | $ | 6,644,011 | $ | 6,583,013 | $ | 6,582,455 | $ | 6,618,854 | |||||||||||
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| Nonperforming Assets and Accruing Loans 90+ Days Past Due | |||||||||||||||||||||
| (Unaudited) | TABLE 7 | Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| Nonaccrual loans: | |||||||||||||||||||||
| Commercial and industrial | $ | 531 | $ | 414 | $ | 376 | $ | 355 | $ | 357 | |||||||||||
| Real estate: | |||||||||||||||||||||
| Residential mortgage | 9,199 | 9,044 | 9,680 | 7,991 | 7,979 | ||||||||||||||||
| Home equity | 746 | 952 | 915 | 1,247 | 929 | ||||||||||||||||
| Commercial mortgage | — | — | — | 77 | 77 | ||||||||||||||||
| Consumer | 609 | 608 | 626 | 587 | 790 | ||||||||||||||||
| Total nonaccrual loans | 11,085 | 11,018 | 11,597 | 10,257 | 10,132 | ||||||||||||||||
| Other real estate owned ("OREO") | — | — | — | — | — | ||||||||||||||||
| Total nonperforming assets ("NPAs") | 11,085 | 11,018 | 11,597 | 10,257 | 10,132 | ||||||||||||||||
| Accruing loans 90+ days past due: | |||||||||||||||||||||
| Real estate: | |||||||||||||||||||||
| Construction | — | — | — | — | 588 | ||||||||||||||||
| Residential mortgage | — | 323 | 13 | 1,273 | 386 | ||||||||||||||||
| Home equity | 87 | 78 | 135 | 135 | 560 | ||||||||||||||||
| Consumer | 670 | 373 | 481 | 896 | 924 | ||||||||||||||||
| Total accruing loans 90+ days past due | 757 | 774 | 629 | 2,304 | 2,458 | ||||||||||||||||
| Total NPAs and accruing loans 90+ days past due | $ | 11,842 | $ | 11,792 | $ | 12,226 | $ | 12,561 | $ | 12,590 | |||||||||||
| Ratio of total nonaccrual loans to total loans | 0.21 | % | 0.21 | % | 0.22 | % | 0.19 | % | 0.19 | % | |||||||||||
| Ratio of total NPAs to total assets | 0.15 | 0.15 | 0.16 | 0.14 | 0.14 | ||||||||||||||||
| Ratio of total NPAs to total loans and OREO | 0.21 | 0.21 | 0.22 | 0.19 | 0.19 | ||||||||||||||||
| Ratio of total NPAs and accruing loans 90+ days past due to total loans and OREO | 0.22 | 0.22 | 0.23 | 0.23 | 0.23 | ||||||||||||||||
| Quarter-to-quarter changes in NPAs: | |||||||||||||||||||||
| Balance at beginning of quarter | $ | 11,018 | $ | 11,597 | $ | 10,257 | $ | 10,132 | $ | 7,008 | |||||||||||
| Additions | 2,397 | 1,436 | 3,484 | 1,920 | 4,792 | ||||||||||||||||
| Reductions: | |||||||||||||||||||||
| Payments | (614) | (763) | (602) | (363) | (263) | ||||||||||||||||
| Return to accrual status | (558) | (71) | (354) | (27) | (198) | ||||||||||||||||
| Charge-offs, valuation and other adjustments | (1,158) | (1,181) | (1,188) | (1,405) | (1,207) | ||||||||||||||||
| Total reductions | (2,330) | (2,015) | (2,144) | (1,795) | (1,668) | ||||||||||||||||
| Balance at end of quarter | $ | 11,085 | $ | 11,018 | $ | 11,597 | $ | 10,257 | $ | 10,132 | |||||||||||
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| Allowance for Credit Losses on Loans | |||||||||||||||||||||
| (Unaudited) | TABLE 8 | ||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||||||||
| (Dollars in thousands) | 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| Allowance for credit losses ("ACL") on loans: | |||||||||||||||||||||
| Balance at beginning of period | $ | 59,182 | $ | 61,647 | $ | 62,225 | $ | 63,532 | $ | 63,934 | |||||||||||
| Provision for credit losses on loans | 3,905 | 1,353 | 3,040 | 2,448 | 4,121 | ||||||||||||||||
| Charge-offs: | |||||||||||||||||||||
| Commercial and industrial | (580) | (1,113) | (663) | (519) | (682) | ||||||||||||||||
| Real estate: | |||||||||||||||||||||
| Residential mortgage | — | — | (99) | (284) | — | ||||||||||||||||
| Consumer | (2,977) | (3,727) | (3,956) | (4,345) | (4,838) | ||||||||||||||||
| Total charge-offs | (3,557) | (4,840) | (4,718) | (5,148) | (5,520) | ||||||||||||||||
| Recoveries: | |||||||||||||||||||||
| Commercial and industrial | 171 | 158 | 158 | 130 | 90 | ||||||||||||||||
| Real estate: | |||||||||||||||||||||
| Residential mortgage | 10 | 11 | 8 | 9 | 8 | ||||||||||||||||
| Home equity | 3 | — | — | — | 6 | ||||||||||||||||
| Consumer | 755 | 853 | 934 | 1,254 | 893 | ||||||||||||||||
| Total recoveries | 939 | 1,022 | 1,100 | 1,393 | 997 | ||||||||||||||||
| Net charge-offs | (2,618) | (3,818) | (3,618) | (3,755) | (4,523) | ||||||||||||||||
| Balance at end of period | $ | 60,469 | $ | 59,182 | $ | 61,647 | $ | 62,225 | $ | 63,532 | |||||||||||
| Average loans, net of deferred fees and costs | $ | 5,311,610 | $ | 5,315,802 | $ | 5,330,810 | $ | 5,385,829 | $ | 5,400,558 | |||||||||||
| Ratio of annualized net charge-offs to average loans | 0.20 | % | 0.29 | % | 0.27 | % | 0.28 | % | 0.34 | % | |||||||||||
| Ratio of ACL to total loans | 1.13 | 1.11 | 1.15 | 1.16 | 1.18 | ||||||||||||||||
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||||||||||||
| --- | --- | ||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||
| (Unaudited) | TABLE 9 |
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.
The following reconciling adjustment from GAAP or reported financial measures to non-GAAP adjusted financial measures is limited to the pre-tax loss on sales of investment securities related to an investment portfolio repositioning of $9.9 million in the three months ended December 31, 2024. Management does not consider the transaction to be representative of the Company's core operating performance. The income tax effect was calculated assuming a 23% effective tax rate. There were no reconciling adjustments from GAAP to non-GAAP during the three months ended March 31, 2025 and 2024.
| Three Months Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, 2025 | December 31, 2024 | March 31, 2024 | |||||||||||
| (dollars in thousands, | GAAP | GAAP | Non-GAAP | GAAP | |||||||||
| except per share data) | Reported | Reported | Adjusted | Reported | |||||||||
| Financial measures: | |||||||||||||
| Net income | $ | 17,760 | $ | 11,345 | $ | 18,994 | $ | 12,945 | |||||
| Diluted earnings per share ("EPS") | $ | 0.65 | $ | 0.42 | $ | 0.70 | $ | 0.48 | |||||
| Pre-provision net revenue (non-GAAP) | $ | 26,723 | $ | 14,221 | $ | 24,155 | $ | 20,855 | |||||
| Efficiency ratio (non-GAAP) | 61.16 | % | 75.65 | % | 64.65 | % | 66.05 | % | |||||
| Return on average assets ("ROA") | 0.96 | % | 0.62 | % | 1.03 | % | 0.70 | % | |||||
| Return on average shareholders' equity ("ROE") | 13.04 | % | 8.37 | % | 13.82 | % | 10.33 | % | |||||
| As of March 31, 2025, December 31, 2024, and March 31, 2024: | |||||||||||||
| Tangible common equity ("TCE") ratio (non-GAAP) | 7.53 | % | 7.21 | % | 7.33 | % | 6.83 | % | |||||
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |||||||||||||
| --- | --- | ||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||
| (Unaudited) | TABLE 9 (CONTINUED) |
The following table presents a recalculation of the non-GAAP adjusted net income and adjusted EPS, which excludes the aforementioned reconciling adjustments, for the periods presented.
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| (dollars in thousands, except per share data) | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||
| GAAP net income | $ | 17,760 | $ | 11,345 | $ | 12,945 |
| Add: Pre-tax net loss related to an investment portfolio repositioning | — | 9,934 | — | |||
| Less: Income tax effect (assumes 23% ETR) | — | (2,285) | — | |||
| Adjusted net income (non-GAAP) | $ | 17,760 | $ | 18,994 | $ | 12,945 |
| Diluted weighted average shares outstanding | 27,213,406 | 27,221,121 | 27,099,101 | |||
| GAAP EPS | $ | 0.65 | $ | 0.42 | $ | 0.48 |
| Add: Total adjustments, net of tax (non-GAAP) | — | 0.28 | — | |||
| Adjusted EPS (non-GAAP) | $ | 0.65 | $ | 0.70 | $ | 0.48 |
The Company believes that pre-provision net revenue ("PPNR"), a non-GAAP financial measure, is useful as a tool to help evaluate the ability to provide for credit costs through operations. The following table presents a recalculation of the PPNR and non-GAAP adjusted PPNR for the periods presented.
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| (dollars in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | |||
| GAAP net income | $ | 17,760 | $ | 11,345 | $ | 12,945 |
| Add: Income tax expense | 4,791 | 2,058 | 3,974 | |||
| GAAP pre-tax income | 22,551 | 13,403 | 16,919 | |||
| Add: Provision for credit losses | 4,172 | 818 | 3,936 | |||
| Pre-provision net revenue ("PPNR") (non-GAAP) | 26,723 | 14,221 | 20,855 | |||
| Add: Total pre-tax adjustments (non-GAAP) | — | 9,934 | — | |||
| Adjusted PPNR (non-GAAP) | $ | 26,723 | $ | 24,155 | $ | 20,855 |
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | ||||||
| --- | --- | |||||
| Reconciliation of Non-GAAP Financial Measures | ||||||
| (Unaudited) | TABLE 9 (CONTINUED) |
A key measure of operating efficiency tracked by the Company is the efficiency ratio, which 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 a reconciliation to our efficiency ratio and adjusted efficiency ratio, which excludes the aforementioned reconciling adjustments, for the periods presented:
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||
| Total other operating expense | $ | 42,072 | $ | 44,177 | $ | 40,576 | |||
| Total other operating income | $ | 11,096 | $ | 2,624 | $ | 11,244 | |||
| Add: Net loss related to an investment portfolio repositioning | — | 9,934 | — | ||||||
| Adjusted total other operating income (non-GAAP) | $ | 11,096 | $ | 12,558 | $ | 11,244 | |||
| Net interest income | $ | 57,699 | $ | 55,774 | $ | 50,187 | |||
| Total other operating income | 11,096 | 2,624 | 11,244 | ||||||
| Total revenue | $ | 68,795 | $ | 58,398 | $ | 61,431 | |||
| Net interest income | $ | 57,699 | $ | 55,774 | $ | 50,187 | |||
| Adjusted total other operating income (non-GAAP) | 11,096 | 12,558 | 11,244 | ||||||
| Adjusted total revenue (non-GAAP) | $ | 68,795 | $ | 68,332 | $ | 61,431 | |||
| Efficiency ratio (non-GAAP) | 61.16 | % | 75.65 | % | 66.05 | % | |||
| Less: Total pre-tax adjustments (non-GAAP) | — | % | (11.00) | % | — | % | |||
| Adjusted efficiency ratio (non-GAAP) | 61.16 | % | 64.65 | % | 66.05 | % | |||
| CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES | |||||||||
| --- | --- | ||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||
| (Unaudited) | TABLE 9 (CONTINUED) |
The following table presents a recalculation of the non-GAAP adjusted ROA and adjusted ROE, which excludes the aforementioned reconciling adjustments, for the periods presented.
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||
| Average assets | $ | 7,388,783 | $ | 7,377,398 | $ | 7,449,661 | |||
| Add: Total adjustments, net of tax (non-GAAP) | — | 7,649 | — | ||||||
| Adjusted average assets (non-GAAP) | $ | 7,388,783 | $ | 7,385,047 | $ | 7,449,661 | |||
| ROA (GAAP net income to average assets) | 0.96 | % | 0.62 | % | 0.70 | % | |||
| Add: Total adjustments, net of tax (non-GAAP) | — | 0.41 | — | ||||||
| Adjusted ROA (non-GAAP) | 0.96 | % | 1.03 | % | 0.70 | % | |||
| Average shareholders' equity | $ | 544,888 | $ | 542,135 | $ | 501,120 | |||
| Add: Total adjustments, net of tax (non-GAAP) | — | 7,649 | — | ||||||
| Adjusted average shareholders' equity (non-GAAP) | $ | 544,888 | $ | 549,784 | $ | 501,120 | |||
| ROE (GAAP net income to average shareholders' equity) | 13.04 | % | 8.37 | % | 10.33 | % | |||
| Add: Total adjustments, net of tax (non-GAAP) | — | 5.45 | — | ||||||
| Adjusted ROE (non-GAAP) | 13.04 | % | 13.82 | % | 10.33 | % |
The following table presents a recalculation of the tangible common equity ("TCE") ratio, a non-GAAP financial measure, which is calculated by dividing tangible common equity by tangible assets, and the non-GAAP TCE ratio, which excludes the aforementioned reconciling adjustments, as of the dates presented.
| (dollars in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Total shareholders' equity | $ | 557,376 | $ | 538,385 | $ | 507,203 | |||
| Less: Intangible assets | — | — | (1,437) | ||||||
| TCE | 557,376 | 538,385 | 505,766 | ||||||
| Add: Total adjustments, net of tax (non-GAAP) | — | 10,011 | — | ||||||
| Adjusted TCE (non-GAAP) | $ | 557,376 | $ | 548,396 | $ | 505,766 | |||
| Total assets | $ | 7,405,239 | $ | 7,472,096 | $ | 7,409,999 | |||
| Less: Intangible assets | — | — | (1,437) | ||||||
| Tangible assets | 7,405,239 | 7,472,096 | 7,408,562 | ||||||
| Add: Total adjustments, net of tax (non-GAAP) | — | 10,011 | — | ||||||
| Adjusted tangible assets (non-GAAP) | $ | 7,405,239 | $ | 7,482,107 | $ | 7,408,562 | |||
| TCE ratio (non-GAAP) (TCE to tangible assets) | 7.53 | % | 7.21 | % | 6.83 | % | |||
| Add: Total adjustments, net of tax (non-GAAP) | — | 0.12 | — | ||||||
| Adjusted TCE ratio (non-GAAP) | 7.53 | % | 7.33 | % | 6.83 | % |
cpf_1q25earningssuppleme
1st Quarter 2025 Earnings Supplement April 23, 2025
2Central Pacific Financial Corp. Forward-Looking Statements This document and the accompanying oral presentation 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 inflation and interest rate fluctuations; the effect of trade policy and tariffs and other executive orders; 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 the COVID-19 pandemic virus (and its variants) and other pandemic viruses 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; political instability; acts of war or terrorism; changes in consumer spending, borrowings and savings habits; technological changes and developments; cybersecurity and data privacy breaches and the consequence therefrom; 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; 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 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.
3Central Pacific Financial Corp. • Net income of $17.8 million in the first quarter and fully diluted EPS of $0.65 • NIM expansion of 14 bps on a sequential quarter basis; expanded every quarter for the last four quarters • Tangible Common Equity2 improved to 7.53% from the prior quarter • Quarterly cash dividend maintained at $0.27 • Repurchased 77.3K shares of CPF common stock for $2.1 million, or $27.09 per share Solid 1st Quarter 2025 1Q25 Actual 4Q24 Actual 4Q24 Non-GAAP 1 NET INCOME DILUTED EPS $17.8MM $0.65 $11.3MM $0.42 $19.0MM $0.70 PRE-PROVISION NET REVENUE (PPNR) 2 $26.7MM $14.2MM $24.2MM RETURN ON ASSETS (ROA) 0.96% 0.62% 1.03% RETURN ON EQUITY (ROE) 13.04% 8.37% 13.82% TANGIBLE COMMON EQUITY (TCE) 7.53% 7.21% 7.33% NET INTEREST MARGIN (NIM) 3.31% 3.17% 3.17% 1 Excludes $9.9MM pre-tax loss on investment portfolio repositioning in 4Q24. Refer to non- GAAP table in the Appendix. 2 Tangible Common Equity and PPNR are non-GAAP financial measures.
4Central Pacific Financial Corp. Tourism YTD Visitor arrivals compared to pre-pandemic 96% 1 Employment Unemployment Rate March 2025 2.9% 1 FOR A FAVORABLE HAWAII OUTLOOK • Low unemployment • Strong real estate market • Visitor industry continues to have year-over-year growth in arrivals and spending over the last five months of 2024 and into 2025, despite slower Maui and Japan visitor recovery • Substantial Federal government contracts and military investments; 9.2%3 of state GDP amounting to $10.0 billion3 in FY2023 • Record levels of construction activity; estimated annualized value of completed construction for 2024 could be over ~$14.0 billion1 which will surpass 2023 value of $11.8 billion1 1 Source: State of Hawaii Department of Business, Economic Development & Tourism. Tourism represents average daily total visitors YTD February 2025 compared to YTD February 2019. 2 Source: Honolulu Board of Realtors. 3 Source: U.S. Department of Defense, Office of Local Defense Community Cooperation. Spending comprised of total contract, grant, and payroll. Resilient Hawaii Economy Provides a Favorable Environment Housing Oahu Median Single-Family Home Price March 2025 $1.16MM 2
5Central Pacific Financial Corp. 3.77 4.08 4.45 4.96 5.10 5.56 5.44 5.33 5.33 3.00 3.50 4.00 4.50 5.00 5.50 6.00 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 $ B il li o n s Loan Balances Outstanding as of period end Commercial & Industrial 12% Construction 3% Residential Mortgage 35% Home Equity 12% Commercial Mortgage 29% Consumer 9% Loan Portfolio Composition as of March 31, 2025 Diversified Loan Portfolio • Strong and diverse loan portfolio, with over 75% secured by real estate • Focused on growing market share in our primary market in Hawaii supplemented by targeted opportunities in mainland markets
6Central Pacific Financial Corp. 4.96 4.95 5.12 5.80 6.64 6.74 6.85 6.64 6.60 4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50 8.00 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 $ B il li o n s Total Deposits as of period end Noninterest Bearing Demand 28% Interest Bearing Demand 21% Savings & Money Market 35% Time 16% Deposit Portfolio Composition as of March 31, 2025 Low-Cost Deposits Driven by Valuable Franchise Data as of March 31, 2025 • 58% of deposits FDIC insured; 63% including collateralized deposits • Well-diversified and granular: 51%1 Commercial (Average account balance of ~$104,000) 49%1 Consumer (Average account balance of ~$19,000) • 53% Long-tenured customers with CPB 10 years or longer • Low reliance on public time deposits • No brokered deposits 1 Excludes Sundry and Escrow deposit balances.
7Central Pacific Financial Corp. 1.30% 1.08% 1.72% 2.36% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 Total Deposit Cost CPF HI Peers Nat'l Peers • Deposit costs represented for full year unless otherwise noted • HI Peers comprised of BOH and FHB • Nat’l Peers includes publicly traded banks with total assets of $3-10 billion as of 12/31/24, data updated on 4/14/25 • Source: S&P Global Low rate-sensitive, relationship-based deposit portfolio provides significant cost advantage CPF total deposit cost declined 13 bps to 1.08% from 4Q24 to 1Q25 CPF Deposit Cost Advantage
8Central Pacific Financial Corp. 40.6 44.2 42.1 0.0 10.0 20.0 30.0 40.0 50.0 60.0 1Q24 4Q24 1Q25 $ M il li o n s Noninterest Expense 11.2 2.6 11.1 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 1Q24 4Q24 1Q25 $ M il li o n s Noninterest Income Noninterest Income and Expense • Adjustment in 4Q24 includes $9.9 million pre- tax loss on investment portfolio repositioning • Opportunity to increase fee income through a growing Wealth management business, and customer swap program • Maintained relatively flat non-interest expenses in light of an inflationary environment • Priority on process improvements and expense management $9.9MM in pre-tax loss on investment repositioning 12.6 Note: Totals may not sum due to rounding.
9Central Pacific Financial Corp. 0.10% 0.08% 0.07% 0.10% 0.06% 0.24% 0.20% 0.20% 0.19% 0.14% 0.34% 0.28% 0.27% 0.29% 0.20% 1Q24 2Q24 3Q24 4Q24 1Q25 Annualized NCO/Avg Loans All Other NCO/Avg Loans Mainland Consumer NCO/Avg Loans 0.19% 0.19% 0.22% 0.21% 0.21% 1Q24 2Q24 3Q24 4Q24 1Q25 NPAs/Total Loans 0.56% 0.66% 0.62% 0.62% 0.82% 1Q24 2Q24 3Q24 4Q24 1Q25 Criticized/Total Loans 0.05% 0.04% 0.01% 0.01% 0.01% 1Q24 2Q24 3Q24 4Q24 1Q25 Delinquencies 90+Days/Total Loans 5 Strong credit risk management continues to drive low levels of problem assets Solid Credit Profile
10Central Pacific Financial Corp. $ Millions 1Q24 2Q24 3Q24 4Q24 1Q25 Beginning Balance 63.9 63.5 62.2 61.6 59.2 Net Charge-offs (4.5) (3.7) (3.6) (3.8) (2.6) Provision for Credit Losses 4.1 2.4 3.0 1.4 3.9 Ending Balance 63.5 62.2 61.6 59.2 60.5 Coverage Ratio (ACL to Total Loans) 1.18% 1.16% 1.15% 1.11% 1.13% • $3.9 million provision for credit loss on loans in 1Q25, plus additional $0.3 million for off-balance sheet exposures, for a total provision for credit loss of $4.2 million. Increase to provision primarily driven by macro-economic model assumptions • Strong ACL coverage ratio of 1.13% for 1Q25 Note: Totals may not sum due to rounding. Allowance for Credit Losses
11Central Pacific Financial Corp. U.S. Treasury & Gov't Agency 8% Municipals 12% Agency CMBS/RMBS 76% Non-Agency CMBS/RMBS 2% Collateralized loan obligations 2% Investment Portfolio Composition as of March 31, 2025 High Quality Securities Portfolio • $1.4 billion or 18.5% of total assets • 95% AAA rated • Portfolio mix: AFS 57% / HTM 43% Strategic Activity • Interest rate swap on $115.5 million of municipal securities; added $0.7 million to interest income in 1Q25 (pay fixed at 2.1%, receive float at Fed Funds).
12Central Pacific Financial Corp. Strong Liquidity Position With Ample Alternative Sources $ Millions March 31, 2025 Cash on Balance Sheet 277$ Other Funding Sources: Unpledged Securities 582 FHLB Available Borrowing Capacity 1,655 FRB Available Borrowing Capacity 232 Other Funding Lines 75 Total 2,544$ Total Sources of Liquidity 2,821$
131Central Pacific Financial Corp. 9.4% 12.4% 15.6% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Tier 1 Leverage CET1 Total Capital Regulatory Capital Ratios As March 31, 2025 Regulatory Minimum Well-Capitalized CPF $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 2017 2018 2019 2020 2021 2022 2023 2024 2025* Cash Dividends Declared per Common Share Strong Capital and Shareholder Return • Regulatory capital ratios meaningfully above the well-capitalized minimums • Approved quarterly cash dividend of $0.27 per share which will be payable on June 16, 2025 • 77,316 shares repurchased in 1Q25 at a total cost of $2.1 million or $27.09 per share $297 million capital cushion to well capitalized minimum * Annualized
14Central Pacific Financial Corp. Appendix
15Central Pacific Financial Corp. Non-GAAP Disclosure 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 financial measures. 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. The following reconciling adjustments from GAAP or reported financial measures to non-GAAP adjusted financial measures are limited to a pre-tax loss on sales of investment securities of $9.9 million related to an investment portfolio repositioning in the fourth quarter of 2024. Management does not consider this transaction to be representative of the Company's core operating performance. The income tax effect was calculated assuming a 23% effective tax rate. 1Q25 Actual 4Q24 Actual 4Q24 Adj 4Q24 Non-GAAP NET INCOME $17.8MM $11.3MM +$7.6MM $19.0MM DILUTED EARNINGS PER SHARE (EPS) $0.65 $0.42 +$0.28 $0.70 PRE-PROVISION NET REVENUE (PPNR)1 $26.7MM $14.2MM +$9.9MM $24.2MM EFFICIENCY RATIO1 61.16% 75.65% -11.00% 64.65% RETURN ON ASSETS (ROA) 0.96% 0.62% +0.41% 1.03% RETURN ON EQUITY (ROE) 13.04% 8.37% +5.45% 13.82% TANGIBLE COMMON EQUITY (TCE) 7.53% 7.21% +0.12% 7.33% Note: Totals may not sum due to rounding. 1 Non-GAAP financial measures.
16Central Pacific Financial Corp. Commercial Real Estate Portfolio OFFICE RETAIL TOTAL BALANCE $205.3MM $286.8MM % OF TOTAL CRE 13% 18% % OF TOTAL LOANS 4% 5% WA LTV 57% 65% WA MONTHS TO MATURITY 65 64 INVESTOR / OWNER- OCCUPIED $132.1MM / $73.2MM $209.5MM / $77.3MM• Hawaii 76% / Mainland 24% • Investor 76% / Owner-Occupied 24% Industrial/ Warehouse 30% Retail 18% Apartment 19% Office 13% Hotel 11% Other 4% Shopping Center 3% Storage 2% CRE Portfolio Composition as of March 31, 2025
17Central Pacific Financial Corp. HI Auto 32% HI Other 16%Mainland Home Improvement 20% Mainland Unsecured 7% Mainland Auto 25% Consumer Portfolio Composition as of March 31, 2025 ($ Millions) • Total Hawaii Consumer $219.9 million • Total Mainland Consumer $242.0 million • Weighted average origination FICO: • 745 for Hawaii Consumer • 738 for Mainland Consumer • Consumer net charge-offs peaked in 4Q23 and declined for 5 consecutive quarters Consumer Loan Portfolio
18Central Pacific Financial Corp. CPB Named Best Bank in Hawaii by Newsweek, Forbes, and Honolulu Star-Advertiser • Newsweek’s America’s Best Regional Banks 2025 • Forbes’ Best-In-State Banks 2024 • Forbes’ America’s Best Banks 2025 • Honolulu Star-Advertiser’s Best Bank in Hawaii 2024
19Central Pacific Financial Corp. Caring for our Land and People Source: 2024 ESG Report available on our Investor Relations site, “Caring for Our Aina and People”
20Central Pacific Financial Corp. Mahalo