Central Pacific Financial Reports Fourth Quarter and Full Year 2025 Earnings

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

efficiency ratio financial

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

basis points financial

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

provision for credit losses financial

Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.

nonperforming assets financial

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

net charge-offs financial

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

Common Equity Tier 1 ratio regulatory

The common equity tier 1 ratio is a measure of a bank's financial strength, showing how much high-quality core capital it has compared to its total risk-weighted assets. Think of it as a safety buffer or cushion that helps ensure the bank can withstand economic shocks. For investors, a higher ratio indicates a stronger, more resilient bank, making it a key indicator of its financial health.

Fourth Quarter and Full Year 2025 Highlights:

• Net income of $22.9 million, or $0.85 per diluted share for the quarter; net income of $77.5 million, or $2.86 per diluted share for the year.
• Return on average assets (ROA) of 1.25% for the quarter; ROA of 1.06% for the year.
• Return on average equity (ROE) of 15.41% for the quarter; ROE of 13.62% for the year.
• Efficiency ratio improved to 59.88%, compared to 62.84% in the prior quarter; 61.05% for the year.
• Net interest margin (NIM) of 3.56%, up 7 bps from the prior quarter; NIM of 3.45% for the year.
• Repurchased 529,613 shares of common stock at a total cost of $16.3 million during the quarter; 788,261 shares at $23.3 million during the year.

Other Highlights:

• Board of Directors authorized a new share repurchase program of $55 million for 2026.
• Board of Directors increased the quarterly cash dividend by 3.6% to $0.29 per share.

HONOLULU--(BUSINESS WIRE)-- Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), today reported net income of $22.9 million, or $0.85 per fully diluted share ("EPS"), for the fourth quarter of 2025. This compares to net income of $18.6 million, or EPS of $0.69, in the prior quarter and $11.3 million, or EPS of $0.42, in the same quarter last year. For the 2025 year, net income and EPS was $77.5 million and $2.86, respectively, compared to net income and EPS of $53.4 million and $1.97, respectively, in 2024.

"Central Pacific Financial achieved strong fourth-quarter and 2025 year-end results thanks to strong balance sheet management and meaningful progress on our strategic and business priorities," said Arnold Martines, Chairman, President and CEO. "In the fourth-quarter, our profitability strengthened further, underscoring the success of our disciplined approach. Looking ahead, we remain focused on supporting our customers and the communities we serve, while continuing to create long-term value for our shareholders."

Earnings Highlights

Net interest income for the fourth quarter of 2025 totaled $62.1 million, which increased by $0.8 million, or 1.3% from the prior quarter, and increased by $6.3 million, or 11.3%, compared to the same quarter last year. Net interest margin ("NIM") for the fourth quarter of 2025 was 3.56%, an increase of 7 basis points ("bp" or "bps") from the prior quarter, and an increase of 39 bps from the same quarter last year. The sequential quarter increase in net interest income and NIM was primarily driven by a 12 bps decrease in average rates paid on interest-bearing deposits, which outpaced the declines in average yields earned on loans, down 2 bps, and investment securities, down 5 bps.

The Company recorded a provision for credit losses of $2.4 million in the fourth quarter of 2025, compared to a provision of $4.2 million in the prior quarter, and a provision of $0.8 million in the same quarter last year. The current quarter provision for credit losses included $1.7 million for credit losses on loans and $0.7 million for off-balance sheet exposures. The decrease from prior quarter was primarily driven by a decline in loan balances and improvements in the macro-economic forecast used in our estimate of the allowance for credit losses.

Other operating income for the fourth quarter of 2025 totaled $14.2 million, compared to $13.5 million in the prior quarter, and $2.6 million in the same quarter last year. The sequential quarter increase was largely driven by a $0.9 million increase in income from bank-owned life insurance, primarily related to a death benefit recognized in the fourth quarter of 2025. The increase from the year-ago was largely attributable to a $9.9 million pre-tax loss related to an investment portfolio repositioning in the fourth quarter of 2024.

Other operating expense for the fourth quarter of 2025 totaled $45.7 million, compared to $47.0 million in the prior quarter, and $44.2 million in the same quarter last year. The sequential quarter decrease was primarily attributable to a one-time expense of $1.5 million related to the operations center consolidation in the third quarter of 2025. The increase from the year-ago quarter was primarily due to higher salaries and employee benefits of $2.8 million, partially offset by an impairment charge on intangible assets of $1.4 million (included in other) during the fourth quarter of 2024.

The efficiency ratio was 59.88% in the fourth quarter of 2025, compared to 62.84% in the prior quarter and 75.65% in the same quarter last year. The prior quarter was impacted by $1.5 million in expenses related to the operations center consolidation in the third quarter of 2025. The year-ago quarter was impacted by a $9.9 million pre-tax loss related to an investment portfolio repositioning in the fourth quarter of 2024. Excluding these items, the adjusted efficiency ratio (non-GAAP) was 60.81% and 64.65% for the third quarter of 2025 and fourth quarter of 2024, respectively. The improvement in the adjusted efficiency ratio was attributable to higher net interest income and other operating income, combined with lower other operating expense.

The effective tax rate for the fourth quarter of 2025 was 18.9%, compared to 21.4% in the prior quarter, and 15.4% in the same quarter last year. The sequential quarter decrease in the Company's effective tax rate was primarily attributable to additional tax credits and an increase in tax-exempt income. The increase in the effective tax rate compared with the year-ago quarter was primarily driven by higher pre-tax income in the current quarter, largely resulting from the loss on investment securities repositioning in the fourth quarter of 2024, as well as provision adjustments recorded in the year-ago quarter.

Balance Sheet Highlights

As of December 31, 2025, total assets were $7.41 billion, which decreased by $12.2 million, or 0.2% from $7.42 billion at September 30, 2025, and a decrease of $62.9 million, or 0.8% from $7.47 billion at December 31, 2024.

Total loans, net of deferred fees and costs, were $5.29 billion at December 31, 2025, which decreased by $78.1 million, or 1.5% from $5.37 billion at September 30, 2025, and decreased by $43.8 million, or 0.8% from $5.33 billion at December 31, 2024. The average yield earned on loans during the fourth quarter of 2025 was 4.99%, compared to 5.01% in the prior quarter and 4.91% in the same quarter last year.

Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $6.06 billion at December 31, 2025. Core deposits increased by $78.2 million, or 1.3% from $5.98 billion at September 30, 2025, and increased by $19.3 million, or 0.3% from $6.04 billion at December 31, 2024. Total deposits were $6.61 billion at December 31, 2025, which increased by $32.1 million or 0.5% from $6.58 billion at September 30, 2025, and decreased by $34.2 million, or 0.5% from $6.64 billion at December 31, 2024. The average rate paid on total deposits during the fourth quarter of 2025 was 0.94%, compared to 1.02% in the prior quarter, and 1.21% in the same quarter last year.

Asset Quality

Nonperforming assets totaled $14.4 million, or 0.19% of total assets at December 31, 2025, compared to $14.3 million, or 0.19% of total assets at September 30, 2025 and $11.0 million, or 0.15% of total assets at December 31, 2024.

Net charge-offs in the fourth quarter of 2025 totaled $2.5 million, compared to net charge-offs of $2.7 million in the prior quarter, and net charge-offs of $3.8 million in the same quarter last year. On an annualized basis, net charge-offs as a percentage of average loans improved to 0.18% in the fourth quarter of 2025, compared to 0.20% in the prior quarter, and 0.29% in the same quarter last year.

The allowance for credit losses on loans was 1.13% of total loans as of December 31, 2025, compared to 1.13% at September 30, 2025, and 1.11% at December 31, 2024.

Capital

Total shareholders' equity at December 31, 2025 was $592.6 million, compared to $588.1 million at September 30, 2025 and $538.4 million at December 31, 2024.

The Company's regulatory capital ratios remained strong, with leverage ratio of 9.8%, 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 December 31, 2025.

The Company redeemed in full at par its $55.0 million of 4.75% fixed-to-floating rate subordinated notes due 2030 on its November 1, 2025 call date.

During the fourth quarter of 2025, the Company repurchased 529,613 shares of common stock at a total cost of $16.3 million, representing an average price of $30.82 per share. For the year ended December 31, 2025, the Company repurchased 788,261 shares at a total cost of $23.3 million, or an average price of $29.60 per share. In total, the Company returned $52.7 million to shareholders during 2025 through cash dividends and share repurchases.

On January 27, 2026, the Board of Directors authorized a new share repurchase program (the "2026 Repurchase Plan") permitting the Company to repurchase up to $55 million of its common stock from time to time in the open market or through privately negotiated transactions. The 2026 Repurchase Plan replaces and supersedes the prior share repurchase program previously approved by the Board.

On January 27, 2026, the Board of Directors also declared a quarterly cash dividend of $0.29 per share. This represents an increase of 3.6% from the dividend paid in the fourth quarter of 2025 of $0.28 per share. The dividend will be payable on March 16, 2026, to shareholders of record as of February 27, 2026.

Conference Call

The Company's management will host a conference call today at 1:00 p.m. Eastern Time (8:00 a.m. Hawaii Time) to discuss its fourth quarter of 2025 financial results. Individuals are encouraged to listen to the live webcast of the presentation by visiting the investor relations page of the Company's website at http://ir.cpb.bank. Alternatively, investors may participate in the live call by dialing 1-800-715-9871 and entering the conference ID: 6299769.

A replay of the call will be available through February 27, 2026, by dialing 1-800-770-2030 and entering the same conference ID: 6299769, and on the Company's website. Information which may be discussed in the conference call is provided in an earnings supplement presentation on the Company's website at http://ir.cpb.bank.

About Central Pacific Financial Corp.

Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $7.41 billion in assets as of December 31, 2025. Its primary subsidiary, Central Pacific Bank, operates 27 branches and 55 ATMs in the State of Hawaii. Central Pacific Financial Corp. is listed on the New York Stock Exchange under the symbol "CPF." For additional information, please visit: cpb.bank.

Equal Housing Lender
Member FDIC
NYSE Listed: CPF

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, and other cost cutting initiatives; the adverse effects of bank failures on customer confidence, deposit behavior, liquidity, and regulatory responses; the effects of pandemics, epidemics, and other public health emergencies, including their impact on Hawaii's tourism and construction sectors and on our borrowers, customers, vendors and employees; supply chain disruptions, labor contract disputes, strikes; adverse trends in the real estate or construction industries, including rising inventory levels or declining property values; deterioration in borrowers' financial performance leading to increased loan delinquencies, asset quality issues, or loan losses; the impact of local, national, and international economic conditions and natural disasters (such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, or earthquakes) on our markets and major industries within Hawaii; weakness in domestic economic conditions, including instability in the financial industry, deterioration in real estate markets, and declines in consumer or business confidence; revisions to estimates of reserve requirements under applicable regulatory and accounting standards; the impact of legislative and regulatory developments, including the Dodd-Frank Act, changing capital and consumer protection rules, and new regulations affecting our operations and competitiveness; legal and regulatory proceedings, including actual or threatened litigation and the efforts of governmental and regulatory exams and orders, as well as the costs of ongoing or potential compliance efforts; the effects of accounting standard changes adopted by regulatory agencies, the PCAOB, or the FASB, and the cost and resources associated with implementation; changes in trade, monetary, or fiscal policy, including actions by the Federal Reserve; market volatility and monetary fluctuations, including the transition away from the LIBOR Index; declines in our market capitalization or the price of our common stock; the effects and cost of acquisitions, dispositions, or strategic transactions we may make or evaluate; political instability, acts of war, terrorism, or other geopolitical conflicts; shifts in consumer spending, borrowing, and savings behaviors; technological changes and developments; cybersecurity incidents, data privacy breaches, or fraud involving us or third-party vendors; deficiencies in internal control over financial reporting or disclosure controls, and our ability to remediate them; increased competition among financial institutions and other financial service providers; our ability to achieve efficiency ratio improvement goals; our ability to attract and retain key personnel; changes in our personnel, organization, compensation and benefit plans; and related reputational or regulatory exposures; and risks related to the United States fiscal debt, deficit, and budget uncertainties.

For further information on factors that could cause actual results to differ materially from the expectations or projections expressed in our FLS, please refer to the Company's filings with the U.S. Securities and Exchange Commission, including the Company's most recent Forms 10-Q and 10-K, particularly, the discussion of "Risk Factors" set forth therein.

We urge investors to consider all of these factors carefully in evaluating the FLS contained in this document. FLS speak only as of the date on which such statements are made. We undertake no obligation to update any FLS to reflect events or circumstances occurring after the date on which such statements are made, or to reflect the occurrence of unanticipated events, except as required by law.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)	TABLE 1

		Three Months Ended																				Year Ended
(Dollars in thousands,		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Dec 31,
except for per share amounts)			2025				2025				2025				2025				2024				2025				2024
CONDENSED INCOME STATEMENT
Net interest income		$	62,087			$	61,301			$	59,796			$	57,699			$	55,774			$	240,883			$	211,733
Provision for credit losses			2,396				4,157				4,987				4,172				818				15,712				9,826
Total other operating income			14,201				13,507				13,013				11,096				2,624				51,817				38,723
Total other operating expense			45,680				47,009				43,946				42,072				44,177				178,707				172,591
Income tax expense			5,337				5,068				5,605				4,791				2,058				20,801				14,627
Net income			22,875				18,574				18,271				17,760				11,345				77,480				53,412
Basic earnings per share		$	0.86			$	0.69			$	0.68			$	0.66			$	0.42			$	2.88			$	1.97
Diluted earnings per share			0.85				0.69				0.67				0.65				0.42				2.86				1.97
Dividends declared per share			0.28				0.27				0.27				0.27				0.26				1.09				1.04
PERFORMANCE RATIOS
Return on average assets (ROA) [1]			1.25	%			1.01	%			1.00	%			0.96	%			0.62	%			1.06	%			0.72	%
Return on average equity (ROE) [1]			15.41				12.89				13.04				13.04				8.37				13.62				10.25
Average equity to average assets			8.12				7.85				7.66				7.37				7.35				7.75				7.06
Efficiency ratio [2]			59.88				62.84				60.36				61.16				75.65				61.05				68.91
Net interest margin (NIM) [1]			3.56				3.49				3.44				3.31				3.17				3.45				3.01
Dividend payout ratio [3]			32.94				39.13				40.30				41.54				61.90				38.11				52.79
SELECTED AVERAGE BALANCES
Average loans, including loans held for sale		$	5,328,499			$	5,332,656			$	5,307,946			$	5,311,610			$	5,315,802			$	5,320,258			$	5,358,059
Average interest-earning assets			6,964,796				7,011,753				6,985,097				7,054,488				7,052,296				7,003,809				7,061,864
Average assets			7,310,098				7,341,281				7,314,144				7,388,783				7,377,398				7,338,368				7,378,207
Average deposits			6,499,119				6,509,692				6,503,463				6,561,100				6,546,616				6,518,150				6,570,990
Average interest-bearing liabilities			4,757,686				4,807,225				4,807,669				4,914,398				4,906,623				4,821,276				4,932,757
Average equity			593,750				576,531				560,248				544,888				542,135				569,009				521,008
[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)

		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
		2025				2025				2025				2025				2024
REGULATORY CAPITAL RATIOS
Central Pacific Financial Corp.
Leverage ratio		9.8	%			9.7	%			9.6	%			9.4	%			9.3	%
Common equity tier 1 capital ratio		12.7				12.6				12.6				12.4				12.3
Tier 1 risk-based capital ratio		13.6				13.5				13.5				13.4				13.2
Total risk-based capital ratio		14.8				15.7				15.8				15.6				15.4
Central Pacific Bank
Leverage ratio		9.7				10.2				10.1				9.8				9.7
Common equity tier 1 capital ratio		13.5				14.1				14.1				14.0				13.8
Tier 1 risk-based capital ratio		13.5				14.1				14.1				14.0				13.8
Total risk-based capital ratio		14.7				15.3				15.3				15.2				14.9

	Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
(dollars in thousands, except for per share amounts)		2025				2025				2025				2025				2024
BALANCE SHEET
Total loans, net of deferred fees and costs	$	5,289,096			$	5,367,202			$	5,289,809			$	5,334,547			$	5,332,852
Total assets		7,409,241				7,421,478				7,369,567				7,405,239				7,472,096
Total deposits		6,609,764				6,577,684				6,544,989				6,596,048				6,644,011
Long-term debt		76,547				131,527				131,466				131,405				156,345
Total equity		592,581				588,066				568,874				557,376				538,385
Tangible common equity to tangible assets [4]		8.00	%			7.92	%			7.72	%			7.53	%			7.21	%
ASSET QUALITY
Allowance for credit losses (ACL)	$	59,621			$	60,393			$	59,611			$	60,469			$	59,182
Nonaccrual loans		14,386				14,319				14,895				11,085				11,018
Non-performing assets (NPA)		14,386				14,319				14,895				11,085				11,018
Ratio of ACL to total loans		1.13	%			1.13	%			1.13	%			1.13	%			1.11	%
Ratio of NPA to total assets		0.19	%			0.19	%			0.20	%			0.15	%			0.15	%
PER SHARE OF COMMON STOCK OUTSTANDING
Book value per common share	$	22.47			$	21.86			$	21.08			$	20.60			$	19.89
Closing market price per common share		31.16				30.34				28.03				27.04				29.05
[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

		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
(Dollars in thousands, except share data)			2025				2025				2025				2025				2024
ASSETS
Cash and due from financial institutions		$	88,200			$	102,859			$	110,935			$	106,670			$	77,774
Interest-bearing deposits in other financial institutions			290,453				207,034				206,035				170,226				303,167
Investment securities:
Debt securities available-for-sale, at fair value			748,212				758,683				765,213				780,379				737,658
Debt securities held-to-maturity, at amortized cost; fair value of: $495,845 at December 31, 2025, $500,859 at September 30, 2025, $499,833 at June 30, 2025, $511,717 at March 31, 2025, and $506,681 at December 31, 2024			562,391				570,886				580,476				589,688				596,930
Total investment securities			1,310,603				1,329,569				1,345,689				1,370,067				1,334,588
Loans held for sale			1,084				1,557				—				2,788				5,662
Loans, net of deferred fees and costs			5,289,096				5,367,202				5,289,809				5,334,547				5,332,852
Less: allowance for credit losses			(59,621	)			(60,393	)			(59,611	)			(60,469	)			(59,182	)
Loans, net of allowance for credit losses			5,229,475				5,306,809				5,230,198				5,274,078				5,273,670
Premises and equipment, net			100,620				100,992				103,657				103,490				104,342
Accrued interest receivable			23,559				25,232				23,518				24,743				23,378
Investment in unconsolidated entities			61,349				52,987				49,370				50,885				52,417
Mortgage servicing rights			8,672				8,459				8,436				8,418				8,473
Bank-owned life insurance			180,717				179,743				177,639				176,846				176,216
Federal Home Loan Bank of Des Moines ("FHLB") and Federal Reserve Bank ("FRB") stock			25,836				25,215				24,816				24,163				6,929
Right-of-use lease assets			24,822				25,570				30,693				29,829				30,824
Other assets			63,851				55,452				58,581				63,036				74,656
Total assets		$	7,409,241			$	7,421,478			$	7,369,567			$	7,405,239			$	7,472,096
LIABILITIES
Deposits:
Noninterest-bearing demand		$	1,891,198			$	1,903,614			$	1,938,226			$	1,854,241			$	1,888,937
Interest-bearing demand			1,388,107				1,340,725				1,336,620				1,368,519				1,338,719
Savings and money market			2,346,522				2,292,881				2,242,122				2,316,416				2,329,170
Time			983,937				1,040,464				1,028,021				1,056,872				1,087,185
Total deposits			6,609,764				6,577,684				6,544,989				6,596,048				6,644,011
Long-term debt, net of unamortized debt issuance costs			76,547				131,527				131,466				131,405				156,345
Lease liabilities			25,549				26,288				31,981				31,057				32,025
Accrued interest payable			7,068				8,604				8,755				8,757				10,051
Other liabilities			97,732				89,309				83,502				80,596				91,279
Total liabilities			6,816,660				6,833,412				6,800,693				6,847,863				6,933,711
EQUITY
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at December 31, 2025, September 30, 2025, June 30, 2025, March 31, 2025, and December 31, 2024			—				—				—				—				—
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 26,374,967 at December 31, 2025, 26,903,512 at September 30, 2025, 26,981,436 at June 30, 2025, 27,061,589 at March 31, 2025, and 27,065,570 at December 31, 2024			381,158				397,479				399,823				402,400				404,494
Additional paid-in capital			107,308				106,675				106,033				104,849				105,054
Retained earnings			191,383				175,968				164,676				153,692				143,259
Accumulated other comprehensive loss			(87,268	)			(92,056	)			(101,658	)			(103,565	)			(114,422	)
Total equity			592,581				588,066				568,874				557,376				538,385
Total liabilities and equity		$	7,409,241			$	7,421,478			$	7,369,567			$	7,405,239			$	7,472,096

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)	TABLE 3

		Three Months Ended																				Year Ended
		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Dec 31,
(Dollars in thousands, except per share data)			2025				2025				2025				2025				2024				2025				2024
Interest income:
Interest and fees on loans		$	66,897			$	67,222			$	65,668			$	64,119			$	65,482			$	263,906			$	258,192
Interest and dividends on investment securities:
Taxable investment securities			9,401				9,776				9,871				9,801				8,626				38,849				33,278
Tax-exempt investment securities			696				709				709				708				723				2,822				2,527
Interest on deposits in other financial institutions			1,501				1,857				1,484				2,254				3,004				7,096				11,593
Dividend income on FHLB and FRB stock			382				395				388				324				125				1,489				509
Total interest income			78,877				79,959				78,120				77,206				77,960				314,162				306,099
Interest expense:
Interest on deposits:
Interest-bearing demand			441				490				443				452				686				1,826				2,159
Savings and money market			8,004				8,898				8,414				8,862				9,388				34,178				37,043
Time			6,999				7,410				7,616				8,107				9,881				30,132				46,084
Interest on FHLB advances and other short-term borrowings			—				—				—				—				—				—				1
Interest on long-term debt			1,346				1,860				1,851				2,086				2,231				7,143				9,079
Total interest expense			16,790				18,658				18,324				19,507				22,186				73,279				94,366
Net interest income			62,087				61,301				59,796				57,699				55,774				240,883				211,733
Provision for credit losses			2,396				4,157				4,987				4,172				818				15,712				9,826
Net interest income after provision for credit losses			59,691				57,144				54,809				53,527				54,956				225,171				201,907
Other operating income:
Mortgage banking income			1,186				958				744				597				913				3,485				3,388
Service charges on deposit accounts			2,423				2,330				2,124				2,147				2,251				9,024				8,656
Other service charges and fees			5,570				6,472				5,957				5,766				5,476				23,765				22,553
Income from fiduciary activities			1,529				1,547				1,501				1,624				1,430				6,201				5,761
Income from bank-owned life insurance			2,816				1,879				2,260				497				1,966				7,452				6,619
Net loss on sales of investment securities			—				(30	)			—				—				(9,934	)			(30	)			(9,934	)
Other			677				351				427				465				522				1,920				1,680
Total other operating income			14,201				13,507				13,013				11,096				2,624				51,817				38,723
Other operating expense:
Salaries and employee benefits			24,490				24,749				22,696				21,819				21,661				93,754				85,941
Net occupancy			4,432				4,598				4,253				4,392				4,192				17,675				18,001
Computer software			5,442				5,151				5,320				4,714				4,757				20,627				18,015
Legal and professional services			2,878				2,669				2,873				2,798				2,504				11,218				9,790
Equipment			825				867				950				1,082				904				3,724				3,881
Advertising			943				730				832				887				911				3,392				3,615
Communication			495				791				901				1,033				943				3,220				3,177
Other			6,175				7,454				6,121				5,347				8,305				25,097				30,171
Total other operating expense			45,680				47,009				43,946				42,072				44,177				178,707				172,591
Income before income taxes			28,212				23,642				23,876				22,551				13,403				98,281				68,039
Income tax expense			5,337				5,068				5,605				4,791				2,058				20,801				14,627
Net income		$	22,875			$	18,574			$	18,271			$	17,760			$	11,345			$	77,480			$	53,412
Per common share data:
Basic earnings per share		$	0.86			$	0.69			$	0.68			$	0.66			$	0.42			$	2.88			$	1.97
Diluted earnings per share			0.85				0.69				0.67				0.65				0.42				2.86				1.97
Cash dividends declared			0.28				0.27				0.27				0.27				0.26				1.09				1.04
Basic weighted average shares outstanding			26,687,551				26,968,163				26,988,169				27,087,154				27,065,047				26,931,761				27,057,329
Diluted weighted average shares outstanding			26,827,551				27,083,280				27,069,677				27,213,406				27,221,121				27,045,170				27,157,120

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
		December 31, 2025										September 30, 2025										December 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		$	151,826		3.92	%		$	1,501			$	167,247		4.41	%		$	1,857			$	250,493		4.77	%		$	3,004
Investment securities:
Taxable			1,322,341		2.84				9,401				1,348,314		2.90				9,776				1,338,569		2.58				8,626
Tax-exempt [1]			136,530		2.58				881				138,470		2.59				898				140,503		2.60				915
Total investment securities			1,458,871		2.82				10,282				1,486,784		2.87				10,674				1,479,072		2.58				9,541
Loans, including loans held for sale			5,328,499		4.99				66,897				5,332,656		5.01				67,222				5,315,802		4.91				65,482
FHLB and FRB stock			25,600		5.96				382				25,066		6.30				395				6,929		7.23				125
Total interest-earning assets			6,964,796		4.52				79,062				7,011,753		4.55				80,148				7,052,296		4.42				78,152
Noninterest-earning assets			345,302										329,528										325,102
Total assets		$	7,310,098									$	7,341,281									$	7,377,398
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits		$	1,358,436		0.13	%		$	441			$	1,358,837		0.14	%		$	490			$	1,312,561		0.21	%		$	686
Savings and money market deposits			2,297,826		1.38				8,004				2,293,452		1.54				8,898				2,313,293		1.61				9,388
Time deposits up to $250,000			433,911		2.21				2,422				437,192		2.28				2,509				518,540		2.99				3,900
Time deposits over $250,000			571,240		3.18				4,577				586,251		3.32				4,901				605,920		3.93				5,981
Total interest-bearing deposits			4,661,413		1.31				15,444				4,675,732		1.43				16,798				4,750,314		1.67				19,955
Federal funds purchased and securities sold			—		—				—				—		—				—				2		5.57				—
FHLB advances and other short-term borrowings			—		—				—				—		—				—				2		5.04				—
Long-term debt			96,273		5.55				1,346				131,493		5.61				1,860				156,305		5.68				2,231
Total interest-bearing liabilities			4,757,686		1.40				16,790				4,807,225		1.54				18,658				4,906,623		1.80				22,186
Noninterest-bearing deposits			1,837,706										1,833,960										1,796,302
Other liabilities			120,956										123,565										132,338
Total liabilities			6,716,348										6,764,750										6,835,263
Total equity			593,750										576,531										542,135
Total liabilities and equity		$	7,310,098									$	7,341,281									$	7,377,398
Taxable-equivalent net interest income (non-GAAP)									62,272										61,490										55,966
Taxable-equivalent adjustment [1]									(185	)									(189	)									(192	)
Net interest income (GAAP)								$	62,087									$	61,301									$	55,774
Interest rate spread					3.12	%									3.01	%									2.62	%
Net interest margin (taxable-equivalent)					3.56	%									3.49	%									3.17	%
[1] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)
(Unaudited)	TABLE 5

		Year Ended										Year Ended
		December 31, 2025										December 31, 2024
		Average			Average							Average			Average
(Dollars in thousands)		Balance			Yield/Rate			Interest				Balance			Yield/Rate			Interest
ASSETS
Interest-earning assets:
Interest-bearing deposits in other financial institutions		$	164,721		4.31	%		$	7,096			$	220,526		5.26	%		$	11,593
Investment securities:
Taxable			1,356,467		2.86				38,849				1,334,695		2.49				33,278
Tax-exempt [1]			138,415		2.58				3,572				141,688		2.26				3,199
Total investment securities			1,494,882		2.84				42,421				1,476,383		2.47				36,477
Loans, including loans held for sale			5,320,258		4.96				263,906				5,358,059		4.82				258,192
FHLB and FRB stock			23,948		6.22				1,489				6,896		7.38				509
Total interest-earning assets			7,003,809		4.50				314,912				7,061,864		4.34				306,771
Noninterest-earning assets			334,559										316,343
Total assets		$	7,338,368									$	7,378,207
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits		$	1,357,433		0.13	%		$	1,826			$	1,287,628		0.17	%		$	2,159
Savings and money market deposits			2,302,973		1.48				34,178				2,263,273		1.64				37,043
Time deposits up to $250,000			442,001		2.33				10,309				538,216		3.16				17,025
Time deposits over $250,000			591,162		3.35				19,823				687,404		4.23				29,059
Total interest-bearing deposits			4,693,569		1.41				66,136				4,776,521		1.79				85,286
Federal funds purchased and securities sold			—		—				—				1		5.57				—
FHLB advances and other short-term borrowings			—		—				—				17		5.58				1
Long-term debt			127,707		5.59				7,143				156,218		5.81				9,079
Total interest-bearing liabilities			4,821,276		1.52				73,279				4,932,757		1.91				94,366
Noninterest-bearing deposits			1,824,581										1,794,469
Other liabilities			123,502										129,973
Total liabilities			6,769,359										6,857,199
Total equity			569,009										521,008
Total liabilities and equity		$	7,338,368									$	7,378,207
Taxable-equivalent net interest income (non-GAAP)									241,633										212,405
Taxable-equivalent adjustment [1]									(750	)									(672	)
Net interest income (GAAP)								$	240,883									$	211,733
Interest rate spread					2.98	%									2.43	%
Net interest margin (taxable-equivalent)					3.45	%									3.01	%
[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 Class
(Unaudited)	TABLE 6

		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
(Dollars in thousands)			2025				2025				2025				2025				2024
Commercial and industrial		$	594,592			$	608,814			$	608,130			$	634,620			$	606,936
Construction			213,191				217,610				190,008				160,092				145,211
Residential mortgage			1,839,191				1,839,535				1,851,690				1,870,239				1,892,520
Home equity			600,082				610,889				627,834				655,237				676,982
Commercial mortgage			1,594,433				1,613,187				1,540,523				1,552,439				1,500,680
Consumer			447,607				477,167				471,624				461,920				510,523
Total loans, net of deferred fees and costs		$	5,289,096			$	5,367,202			$	5,289,809			$	5,334,547			$	5,332,852

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Deposits by Category
(Unaudited)	TABLE 7

		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
(Dollars in thousands)			2025				2025				2025				2025				2024
Noninterest-bearing demand		$	1,891,198			$	1,903,614			$	1,938,226			$	1,854,241			$	1,888,937
Interest-bearing demand			1,388,107				1,340,725				1,336,620				1,368,519				1,338,719
Savings and money market			2,346,522				2,292,881				2,242,122				2,316,416				2,329,170
Time deposits up to $250,000			433,629				444,005				439,687				436,437				483,378
Core deposits			6,059,456				5,981,225				5,956,655				5,975,613				6,040,204
Other time deposits greater than $250,000			412,188				458,339				459,945				475,861				500,693
Government time deposits			138,120				138,120				128,389				144,574				103,114
Total time deposits greater than $250,000			550,308				596,459				588,334				620,435				603,807
Total deposits		$	6,609,764			$	6,577,684			$	6,544,989			$	6,596,048			$	6,644,011

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Nonperforming Assets and Accruing Loans 90+ Days Past Due
(Unaudited)	TABLE 8

		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,
(Dollars in thousands)			2025				2025				2025				2025				2024
Nonaccrual loans:
Commercial and industrial		$	591			$	357			$	110			$	531			$	414
Residential mortgage			10,572				11,413				12,327				9,199				9,044
Home equity			2,608				2,119				1,889				746				952
Consumer			615				430				569				609				608
Total nonaccrual loans			14,386				14,319				14,895				11,085				11,018
Other real estate owned ("OREO")			—				—				—				—				—
Total nonperforming assets ("NPAs")			14,386				14,319				14,895				11,085				11,018
Accruing loans 90+ days past due:
Residential mortgage			664				1,159				1,625				—				323
Home equity			485				—				21				87				78
Consumer			403				349				418				670				373
Total accruing loans 90+ days past due			1,552				1,508				2,064				757				774
Total NPAs and accruing loans 90+ days past due		$	15,938			$	15,827			$	16,959			$	11,842			$	11,792
Ratio of total nonaccrual loans to total loans			0.27	%			0.27	%			0.28	%			0.21	%			0.21	%
Ratio of total NPAs to total assets			0.19				0.19				0.20				0.15				0.15
Ratio of total NPAs to total loans and OREO			0.27				0.27				0.28				0.21				0.21
Ratio of total NPAs and accruing loans 90+ days past due to total loans and OREO			0.30				0.29				0.32				0.22				0.22
Quarter-to-quarter changes in NPAs:
Balance at beginning of quarter		$	14,319			$	14,895			$	11,085			$	11,018			$	11,597
Additions			2,549				838				5,879				2,397				1,436
Reductions:
Payments			(397	)			(286	)			(585	)			(614	)			(763	)
Return to accrual status			(1,098	)			(821	)			(861	)			(558	)			(71	)
Charge-offs, valuation adjustments and other reductions			(987	)			(307	)			(623	)			(1,158	)			(1,181	)
Total reductions			(2,482	)			(1,414	)			(2,069	)			(2,330	)			(2,015	)
Balance at end of quarter		$	14,386			$	14,319			$	14,895			$	11,085			$	11,018

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Allowance for Credit Losses on Loans
(Unaudited)	TABLE 9

		Three Months Ended																				Year Ended
		Dec 31,				Sep 30,				Jun 30,				Mar 31,				Dec 31,				Dec 31,
(Dollars in thousands)			2025				2025				2025				2025				2024				2025				2024
Allowance for credit losses ("ACL") on loans:
Balance at beginning of period		$	60,393			$	59,611			$	60,469			$	59,182			$	61,647			$	59,182			$	63,934
Provision for credit losses on loans			1,685				3,440				3,810				3,905				1,353				12,840				10,962
Charge-offs:
Commercial and industrial			(678	)			(1,071	)			(2,858	)			(580	)			(1,113	)			(5,187	)			(2,977	)
Residential mortgage			—				—				—				—				—				—				(383	)
Consumer			(2,831	)			(2,824	)			(2,864	)			(2,977	)			(3,727	)			(11,496	)			(16,866	)
Total charge-offs			(3,509	)			(3,895	)			(5,722	)			(3,557	)			(4,840	)			(16,683	)			(20,226	)
Recoveries:
Commercial and industrial			266				204				195				171				158				836				536
Construction			1				—				3				—				—				4				—
Residential mortgage			9				8				7				10				11				34				36
Home equity			9				9				9				3				—				30				6
Consumer			767				1,016				840				755				853				3,378				3,934
Total recoveries			1,052				1,237				1,054				939				1,022				4,282				4,512
Net charge-offs			(2,457	)			(2,658	)			(4,668	)			(2,618	)			(3,818	)			(12,401	)			(15,714	)
Balance at end of period		$	59,621			$	60,393			$	59,611			$	60,469			$	59,182			$	59,621			$	59,182
Average loans, net of deferred fees and costs		$	5,328,499			$	5,332,656			$	5,307,946			$	5,311,610			$	5,315,802			$	5,320,258			$	5,358,059
Ratio of annualized net charge-offs to average loans			0.18	%			0.20	%			0.35	%			0.20	%			0.29	%			0.23	%			0.29	%
Ratio of ACL to total loans			1.13				1.13				1.13				1.13				1.11				1.13				1.11

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 following reconciling adjustments from GAAP to non-GAAP adjusted financial measures are limited to: (1) net pre-tax expenses of $1.5 million related to the consolidation of the Company's former operations center into its main office in the three months ended September 30, 2025, (2) net pre-tax loss on sales of investment securities related to an investment portfolio repositioning of $9.9 million in the fourth quarter of 2024, and (3) pre-tax expenses of $3.1 million related to the evaluation and assessment of a strategic opportunity in the three months ended September 30, 2024.

Management does not consider these transactions to be representative of the Company's core operating performance. The related income tax effects were calculated using an assumed effective tax rate of 23%.

		Three Months Ended
		December 31, 2025												September 30, 2025												December 31, 2024
(dollars in thousands,		GAAP				Non-GAAP				Non-GAAP				GAAP				Non-GAAP				Non-GAAP				GAAP				Non-GAAP				Non-GAAP
except per share data)		Reported				Adjustment				Adjusted				Reported				Adjustment				Adjusted				Reported				Adjustment				Adjusted
Financial measures:
Net income		$	22,875			$	—			$	22,875			$	18,574			$	1,167			$	19,741			$	11,345			$	7,649			$	18,994
Diluted EPS		$	0.85			$	—			$	0.85			$	0.69			$	0.04			$	0.73			$	0.42			$	0.28			$	0.70
Efficiency ratio (non-GAAP)			59.88	%			—	%			59.88	%			62.84	%			(2.03	)%			60.81	%			75.65	%			(11.00	)%			64.65	%
ROA			1.25	%			—	%			1.25	%			1.01	%			0.07	%			1.08	%			0.62	%			0.41	%			1.03	%
ROE			15.41	%			—	%			15.41	%			12.89	%			0.78	%			13.67	%			8.37	%			5.45	%			13.82	%
As of period ended:
TCE ratio (non-GAAP)			8.00	%			0.01	%			8.01	%			7.92	%			0.02	%			7.94	%			7.21	%			0.12	%			7.33	%

		Year Ended December 31, 2025												Year Ended December 31, 2024
(dollars in thousands,		GAAP				Non-GAAP				Non-GAAP				GAAP				Non-GAAP				Non-GAAP
except per share data)		Reported				Adjustment				Adjusted				Reported				Adjustment				Adjusted
Financial measures:
Net income		$	77,480			$	1,167			$	78,647			$	53,412			$	10,011			$	63,423
Diluted EPS		$	2.86			$	0.05			$	2.91			$	1.97			$	0.37			$	2.34
Efficiency ratio (non-GAAP)			61.05	%			(0.51	)%			60.54	%			68.91	%			(3.81	)%			65.10	%
ROA			1.06	%			0.01	%			1.07	%			0.72	%			0.14	%			0.86	%
ROE			13.62	%			0.19	%			13.81	%			10.25	%			1.85	%			12.10	%
As of December 31, 2025 and 2024:
TCE ratio (non-GAAP)			8.00	%			0.01	%			8.01	%			7.21	%			0.12	%			7.33	%

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)	TABLE 10 (CONTINUED)

The following table presents a reconciliation of the non-GAAP adjusted net income and adjusted diluted EPS for the periods indicated, excluding the reconciling adjustments discussed above.

		Three Months Ended												Year Ended
(dollars in thousands, except per share data)		Dec 31, 2025				Sep 30, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
GAAP net income		$	22,875			$	18,574			$	11,345			$	77,480			$	53,412
Add: Net loss related to an investment portfolio repositioning			—				—				9,934				—				9,934
Add: Expenses related to the consolidation of operations center			—				1,516				—				1,516				—
Add: Expenses related to a strategic opportunity			—				—				—				—				3,068
Non-GAAP pre-tax adjustments			—				1,516				9,934				1,516				13,002
Less: Income tax effect (assumes 23% ETR)			—				(349	)			(2,285	)			(349	)			(2,991	)
Non-GAAP adjustments, net of tax			—				1,167				7,649				1,167				10,011
Adjusted net income (non-GAAP)		$	22,875			$	19,741			$	18,994			$	78,647			$	63,423
Diluted weighted average shares outstanding			26,827,551				27,083,280				27,221,121				27,045,170				27,157,120
GAAP diluted EPS		$	0.85			$	0.69			$	0.42			$	2.86			$	1.97
Add: Non-GAAP adjustments, net of tax			—				0.04				0.28				0.05				0.37
Adjusted diluted EPS (non-GAAP)		$	0.85			$	0.73			$	0.70			$	2.91			$	2.34

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)	TABLE 10 (CONTINUED)

A key measure of operating efficiency monitored by the Company is the efficiency ratio, which is derived from GAAP-based amounts. It is calculated by dividing total other operating expenses by total pre-provision revenue (defined as net interest income plus total other operating income). The Company believes that the efficiency ratio, a non-GAAP financial measure, provides a useful supplemental metric that enhances understanding of its business performance and operating efficiency. However, this ratio should not be viewed as a substitute for GAAP results and may not be comparable to similarly titled measures reported by other companies. The following table presents the Company's efficiency ratio and adjusted efficiency ratio for the periods indicated:

		Three Months Ended												Year Ended
(dollars in thousands)		Dec 31, 2025				Sep 30, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
Total other operating expense		$	45,680			$	47,009			$	44,177			$	178,707			$	172,591
Less: Expenses related to the consolidation of operations center			—				(1,516	)			—				(1,516	)			—
Less: Expenses related to a strategic opportunity			—				—				—				—				(3,068	)
Non-GAAP other operating expense adjustments			—				(1,516	)			—				(1,516	)			(3,068	)
Adjusted total other operating expense (non-GAAP)		$	45,680			$	45,493			$	44,177			$	177,191			$	169,523
Total other operating income		$	14,201			$	13,507			$	2,624			$	51,817			$	38,723
Add: Net loss related to an investment portfolio repositioning			—				—				9,934				—				9,934
Adjusted total other operating income (non-GAAP)		$	14,201			$	13,507			$	12,558				51,817				48,657
Net interest income		$	62,087			$	61,301			$	55,774			$	240,883			$	211,733
Total other operating income			14,201				13,507				2,624				51,817				38,723
Total revenue		$	76,288			$	74,808			$	58,398			$	292,700			$	250,456
Efficiency ratio (non-GAAP)			59.88	%			62.84	%			75.65	%			61.05	%			68.91	%
Less: Non-GAAP pre-tax adjustments			—	%			(2.03	)%			(11.00	)%			(0.51	)%			(3.81	)%
Adjusted efficiency ratio (non-GAAP)			59.88	%			60.81	%			64.65	%			60.54	%			65.10	%

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)	TABLE 10 (CONTINUED)

The table below provides a recalculation of the non-GAAP adjusted ROA and adjusted ROE for the periods indicated, excluding the reconciling adjustments discussed above.

		Three Months Ended												Year Ended
(dollars in thousands)		Dec 31, 2025				Sep 30, 2025				Dec 31, 2024				Dec 31, 2025				Dec 31, 2024
Average assets		$	7,310,098			$	7,341,281			$	7,377,398			$	7,338,368			$	7,378,207
Add: Non-GAAP adjustments, net of tax			—				1,167				7,649				584				3,093
Adjusted average assets (non-GAAP)		$	7,310,098			$	7,342,448			$	7,385,047			$	7,338,952			$	7,381,300
ROA			1.25	%			1.01	%			0.62	%			1.06	%			0.72	%
Add: Non-GAAP adjustments, net of tax			—				0.07				0.41				0.01				0.14
Adjusted ROA (non-GAAP)			1.25	%			1.08	%			1.03	%			1.07	%			0.86	%
Average equity		$	593,750			$	576,531			$	542,135			$	569,009			$	521,008
Add: Non-GAAP adjustments, net of tax			—				1,167				7,649				584				3,093
Adjusted average equity (non-GAAP)		$	593,750			$	577,698			$	549,784			$	569,593			$	524,101
ROE			15.41	%			12.89	%			8.37	%			13.62	%			10.25	%
Add: Non-GAAP adjustments, net of tax			—				0.78				5.45				0.19				1.85
Adjusted ROE (non-GAAP)			15.41	%			13.67	%			13.82	%			13.81	%			12.10	%

The table below presents the Tangible Common Equity ("TCE") ratio and adjusted TCE ratio, both of which are non-GAAP financial measures, as of the dates indicated. The TCE ratio is calculated by dividing tangible common equity by tangible assets.

(dollars in thousands)		Dec 31, 2025				Sep 30, 2025				Jun 30, 2025				Mar 31, 2025				Dec 31, 2024
Total equity		$	592,581			$	588,066			$	568,874			$	557,376			$	538,385
Less: Intangible assets			—				—				—				—				—
TCE		$	592,581			$	588,066			$	568,874			$	557,376			$	538,385
Add: Non-GAAP adjustments, net of tax			1,167				1,167				—				—				10,011
Adjusted TCE (non-GAAP)		$	593,748			$	589,233			$	568,874			$	557,376			$	548,396
Total assets		$	7,409,241			$	7,421,478			$	7,369,567			$	7,405,239			$	7,472,096
Less: Intangible assets			—				—				—				—				—
Tangible assets		$	7,409,241			$	7,421,478			$	7,369,567			$	7,405,239			$	7,472,096
Add: Non-GAAP adjustments, net of tax			1,167				1,167				—				—				10,011
Adjusted tangible assets (non-GAAP)		$	7,410,408			$	7,422,645			$	7,369,567			$	7,405,239			$	7,482,107
TCE ratio (non-GAAP)			8.00	%			7.92	%			7.72	%			7.53	%			7.21	%
Add: Non-GAAP adjustments, net of tax			0.01				0.02				—				—				0.12
Adjusted TCE ratio (non-GAAP)			8.01	%			7.94	%			7.72	%			7.53	%			7.33	%

 

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Investor Contact:

Jayrald Rabago

Senior Strategic Financial Officer

(808) 544-3556

jayrald.rabago@cpb.bank

Media Contact:

Tim Sakahara

Corporate Communications Manager

(808) 544-5125

tim.sakahara@cpb.bank

Source: Central Pacific Financial Corp.