Central Pacific Financial Reports Second Quarter 2026 Earnings of $20.8 Million

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.

bank-owned life insurance financial

Bank-owned life insurance (BOLI) is a life insurance policy that a bank purchases with itself as the beneficiary, typically on the lives of selected employees, so the bank receives the payout when a covered person dies. Investors care because these policies show up as assets on a bank’s balance sheet and generate tax-advantaged income and cash flow that can help offset employee benefit costs and smooth reported earnings—think of it as a low-profile savings vehicle that also provides a death benefit, which affects a bank’s reported profitability and risk profile.

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.

common equity tier 1 regulatory

Common Equity Tier 1 is the highest-quality capital a bank holds—mainly common shares and retained profits—that acts as the primary cushion against losses. Investors use the CET1 level and ratio to judge a bank’s financial strength and regulatory standing: a bigger cushion means the bank is better able to absorb shocks, sustain payouts and borrow cheaply, much like an emergency fund for a household.

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.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Highlights:

• Net income of $20.8 million, or $0.80 per diluted share
• Return on average assets of 1.12% and return on average equity of 13.94%
• Net interest margin increased by 4 bps to 3.57% from the prior quarter
• Repurchased 321,858 shares of common stock at a total cost of $11.3 million during the quarter
• Board of Directors declared a third quarter cash dividend of $0.30 per share, an increase of 3.4% from prior quarter
• Central Pacific Bank was the highest-ranked company in Hawaii on America's Best Companies 2026 list, published by TIME magazine, and named Best Bank in Hawaii by Forbes Magazine in 2026 for the third consecutive year

HONOLULU--(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 $20.8 million, or $0.80 diluted earnings per share ("EPS"), for the second quarter of 2026. This compares to net income of $20.7 million, or EPS of $0.78, in the prior quarter and $18.3 million, or EPS of $0.67, in the same period last year.

“We delivered another strong quarter of performance, backed by our team’s dedication and commitment," said Arnold Martines, Chairman, President and CEO. "Our robust capital position supports future organic growth, while returning value to shareholders through our increased dividend and continued share repurchases. We are also honored to be the highest-ranked company in Hawaii on America’s Best Companies 2026 list, published by TIME magazine, and recognized by Forbes as the Best Bank in Hawaii for the third consecutive year. We are grateful for the support of our customers and the communities we serve.”

Earnings Highlights

Net interest income for the second quarter of 2026 totaled $62.8 million, which increased by $1.5 million, or 2.4% from the prior quarter, and increased by $3.0 million, or 5.1%, compared to the same quarter last year. Net interest margin ("NIM") for the second quarter of 2026 was 3.57%, an increase of 4 basis points ("bp" or "bps") from the prior quarter, and an increase of 13 bps from the same quarter last year. The sequential quarter increase in net interest income and NIM was primarily driven by higher average balances and yields earned on loans and investment securities, combined with a decline in average rates paid on interest-bearing deposits.

The Company recorded a provision for credit losses of $4.4 million in the second quarter of 2026, compared to a provision of $2.4 million in the prior quarter, and a provision of $5.0 million in the same quarter last year. The current quarter provision included a provision for credit loss on loans of $3.3 million and a $1.1 million reserve for off-balance sheet credit exposures. The increase from the prior quarter was primarily driven by changes in the economic forecast used in our current expected credit losses model, combined with higher unfunded loan commitments.

Other operating income for the second quarter of 2026 totaled $14.6 million, compared to $11.6 million in the prior quarter, and $13.0 million in the same quarter last year. The sequential quarter increase was primarily due to a $2.6 million increase in income from bank-owned life insurance ("BOLI") due to favorable equity market performance.

Other operating expense for the second quarter of 2026 totaled $46.2 million, compared to $43.7 million in the prior quarter, and $43.9 million in the same quarter last year. The increase from the prior quarter was primarily attributable to higher salaries and employee benefits of $2.3 million due to higher deferred compensation expense and incentive accruals. The increase in deferred compensation expense was related to equity market performance.

The efficiency ratio was 59.62% in the second quarter of 2026, compared to 59.87% in the prior quarter and 60.36% in the same quarter last year.

The effective tax rate for the second quarter of 2026 was 22.6%, compared to 23.0% in the prior quarter, and 23.5% in the same quarter last year. The decrease in the Company's effective tax rate was primarily attributable to an increase in tax-exempt income.

Balance Sheet Highlights

As of June 30, 2026, total assets were $7.50 billion, generally consistent with $7.50 billion at March 31, 2026, and increased $131.5 million, or 1.8% from $7.37 billion at June 30, 2025.

Total loans, net of deferred fees and costs, were $5.31 billion at June 30, 2026, and remained relatively stable compared to $5.32 billion at March 31, 2026, and $5.29 billion at June 30, 2025. The average yield earned on loans during the second quarter of 2026 was 4.96%, compared to 4.93% in the prior quarter and 4.96% in the same quarter last year.

Total deposits were $6.70 billion at June 30, 2026, relatively unchanged from $6.70 billion at March 31, 2026, and increased by $150.8 million, or 2.3% from $6.54 billion at June 30, 2025. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $6.12 billion at June 30, 2026, generally consistent with $6.13 billion at March 31, 2026, and increased by $167.1 million, or 2.8% from $5.96 billion at June 30, 2025. The average rate paid on total deposits during the second quarter of 2026 was 0.90%, consistent with 0.90% in the prior quarter, and decreased from 1.02% in the same quarter last year.

Asset Quality

Nonperforming assets totaled $16.5 million, or 0.22% of total assets at June 30, 2026, compared to $14.5 million, or 0.19% of total assets at March 31, 2026 and $14.9 million, or 0.20% of total assets at June 30, 2025.

Net charge-offs in the second quarter of 2026 totaled $2.7 million, compared to net charge-offs of $2.4 million in the prior quarter, and net charge-offs of $4.7 million in the same quarter last year. On an annualized basis, net charge-offs as a percentage of average loans was 0.20% in the second quarter of 2026, compared to 0.18% in the prior quarter, and 0.35% in the same quarter last year.

The allowance for credit losses on loans was 1.14% of total loans as of June 30, 2026, compared to 1.13% at March 31, 2026 and June 30, 2025.

Capital

Total shareholders' equity at June 30, 2026 was $596.3 million, compared to $593.9 million at March 31, 2026 and $568.9 million at June 30, 2025.

During the second quarter of 2026, the Company repurchased 321,858 shares of common stock at a total cost of $11.3 million, or an average price of $35.01 per share. As of June 30, 2026, $33.2 million remained available under the Company's share repurchase authorization.

The Company's regulatory capital ratios remained strong, with a leverage ratio of 9.7%, a Common Equity Tier 1 ratio of 12.7%, a Tier 1 risk-based capital ratio of 13.6%, and a total risk-based capital ratio of 14.8% at June 30, 2026.

On July 23, 2026, the Board of Directors increased its quarterly cash dividend by 3.4% to $0.30 per share. The dividend will be payable on September 15, 2026, to shareholders of record as of August 31, 2026.

Conference Call

The Company's management will host a conference call today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time) to discuss its second quarter of 2026 financial results. Interested parties may listen to the conference by calling 1-833-461-5787 and entering the meeting ID: 719 331 929 or by registering for the webcast at the following link: https://events.q4inc.com/attendee/719331929. The Company’s investor relations website, https://ir.cpb.bank, will also include a link to the webcast and a slide presentation.

A replay of the call will be available on the Company's investor relations website until July 24, 2027.

About Central Pacific Financial Corp.

Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $7.50 billion in assets as of June 30, 2026. Its primary subsidiary, Central Pacific Bank, operates 27 branches and 56 ATMs in the State of Hawaii. Central Pacific Financial Corp. is listed on the New York Stock Exchange under the symbol "CPF." For additional information, please visit: cpb.bank.

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

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

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

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

		Three Months Ended																				Six Months Ended
(Dollars in thousands, except for per share amounts)		Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,				Jun 30,
		2026				2026				2025				2025				2025				2026				2025
CONDENSED INCOME STATEMENT
Net interest income		$	62,834			$	61,358			$	62,087			$	61,301			$	59,796			$	124,192			$	117,495
Provision for credit losses			4,382				2,353				2,396				4,157				4,987				6,735				9,159
Total other operating income			14,620				11,574				14,201				13,507				13,013				26,194				24,109
Total other operating expense			46,180				43,666				45,680				47,009				43,946				89,846				86,018
Income tax expense			6,070				6,188				5,337				5,068				5,605				12,258				10,396
Net income			20,822				20,725				22,875				18,574				18,271				41,547				36,031
Basic earnings per share		$	0.80			$	0.79			$	0.86			$	0.69			$	0.68			$	1.59			$	1.33
Diluted earnings per share			0.80				0.78				0.85				0.69				0.67				1.58				1.33
Dividends declared per share			0.29				0.29				0.28				0.27				0.27				0.58				0.54
PERFORMANCE RATIOS
Return on average assets (ROA) [1]			1.12	%			1.12	%			1.25	%			1.01	%			1.00	%			1.12	%			0.98	%
Return on average equity (ROE) [1]			13.94				13.90				15.41				12.89				13.04				13.92				13.04
Average equity to average assets			8.03				8.07				8.12				7.85				7.66				8.05				7.52
Efficiency ratio [2]			59.62				59.87				59.88				62.84				60.36				59.74				60.75
Net interest margin (NIM) [1]			3.57				3.53				3.56				3.49				3.44				3.55				3.37
Dividend payout ratio [3]			36.25				37.18				32.94				39.13				40.30				36.71				40.60
SELECTED AVERAGE BALANCES
Average loans, including loans held for sale		$	5,300,949			$	5,268,482			$	5,328,499			$	5,332,656			$	5,307,946			$	5,284,805			$	5,309,768
Average interest-earning assets			7,076,331				7,022,759				6,964,796				7,011,753				6,985,097				7,049,694				7,019,602
Average assets			7,433,822				7,396,084				7,310,098				7,341,281				7,314,144				7,415,057				7,351,257
Average deposits			6,630,910				6,592,361				6,499,119				6,509,692				6,503,463				6,611,742				6,532,122
Average interest-bearing liabilities			4,876,776				4,846,057				4,757,686				4,807,225				4,807,669				4,861,501				4,860,738
Average equity			597,299				596,524				593,750				576,531				560,248				596,913				552,610
[1] ROA and ROE are annualized based on a 30/360 day convention. Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual).
[2] Efficiency ratio is defined as total other operating expense divided by total revenue (net interest income and total other operating income).
[3] Dividend payout ratio is defined as dividends declared per share divided by diluted earnings per share.

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

		Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
		2026			2026			2025			2025			2025
REGULATORY CAPITAL RATIOS
Central Pacific Financial Corp.
Leverage ratio		9.7	%		9.7	%		9.8	%		9.7	%		9.6	%
Common equity tier 1 capital ratio		12.7			12.6			12.7			12.6			12.6
Tier 1 risk-based capital ratio		13.6			13.5			13.6			13.5			13.5
Total risk-based capital ratio		14.8			14.7			14.8			15.7			15.8
Central Pacific Bank
Leverage ratio		9.6			9.6			9.7			10.2			10.1
Common equity tier 1 capital ratio		13.4			13.4			13.5			14.1			14.1
Tier 1 risk-based capital ratio		13.4			13.4			13.5			14.1			14.1
Total risk-based capital ratio		14.7			14.6			14.7			15.3			15.3

		Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
(dollars in thousands, except for per share amounts)		2026				2026				2025				2025				2025
BALANCE SHEET
Total loans, net of deferred fees and costs		$	5,308,322			$	5,320,349			$	5,289,096			$	5,367,202			$	5,289,809
Total assets			7,501,060				7,495,363				7,409,241				7,421,478				7,369,567
Total deposits			6,695,754				6,699,354				6,609,764				6,577,684				6,544,989
Long-term debt			76,547				76,547				76,547				131,527				131,466
Total equity			596,331				593,879				592,581				588,066				568,874
Tangible common equity to tangible assets [4]			7.95	%			7.92	%			8.00	%			7.92	%			7.72	%
ASSET QUALITY
Allowance for credit losses (ACL)		$	60,581			$	59,933			$	59,621			$	60,393			$	59,611
Nonaccrual loans			15,622				14,524				14,386				14,319				14,895
Non-performing assets (NPA)			16,546				14,524				14,386				14,319				14,895
Ratio of ACL to total loans			1.14	%			1.13	%			1.13	%			1.13	%			1.13	%
Ratio of NPA to total assets			0.22	%			0.19	%			0.19	%			0.19	%			0.20	%
PER SHARE OF COMMON STOCK OUTSTANDING
Book value per common share		$	23.11			$	22.74			$	22.47			$	21.86			$	21.08
Closing market price per common share			38.20				31.96				31.16				30.34				28.03
[4] The tangible common equity ratio is a non-GAAP measure which should be read in conjunction with the Company’s GAAP financial information. Comparison of our ratio with those of other companies may not be possible because other companies may calculate the ratio differently. See Reconciliation of Non-GAAP Financial Measures in Table 10.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)		TABLE 2

		Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
(Dollars in thousands, except share data)		2026				2026				2025				2025				2025
ASSETS
Cash and due from financial institutions		$	96,678			$	88,880			$	88,200			$	102,859			$	110,935
Interest-bearing deposits in other financial institutions			286,593				317,716				290,453				207,034				206,035
Investment securities:
Debt securities available-for-sale, at fair value			835,378				779,156				748,212				758,683				765,213
Debt securities held-to-maturity, at amortized cost; fair value of: $474,928 at June 30, 2026, $486,018 at March 31, 2026, $495,845 at December 31, 2025, $500,859 at September 30, 2025, and $499,833 at June 30, 2025			545,215				554,548				562,391				570,886				580,476
Total investment securities			1,380,593				1,333,704				1,310,603				1,329,569				1,345,689
Loans held for sale			2,364				2,536				1,084				1,557				—
Loans, net of deferred fees and costs			5,308,322				5,320,349				5,289,096				5,367,202				5,289,809
Less: allowance for credit losses			(60,581	)			(59,933	)			(59,621	)			(60,393	)			(59,611	)
Loans, net of allowance for credit losses			5,247,741				5,260,416				5,229,475				5,306,809				5,230,198
Premises and equipment, net			100,231				99,942				100,620				100,992				103,657
Accrued interest receivable			23,419				24,320				23,559				25,232				23,518
Investment in unconsolidated entities			57,738				59,548				61,349				52,987				49,370
Other real estate owned			924				—				—				—				—
Mortgage servicing rights			8,364				8,520				8,672				8,459				8,436
Bank-owned life insurance			185,134				181,298				180,717				179,743				177,639
Federal Home Loan Bank of Des Moines ("FHLB") and Federal Reserve Bank ("FRB") stock			24,744				24,682				25,836				25,215				24,816
Right-of-use lease assets			23,311				24,320				24,822				25,570				30,693
Other assets			63,226				69,481				63,851				55,452				58,581
Total assets		$	7,501,060			$	7,495,363			$	7,409,241			$	7,421,478			$	7,369,567
LIABILITIES
Deposits:
Noninterest-bearing demand		$	1,917,502			$	1,897,593			$	1,891,198			$	1,903,614			$	1,938,226
Interest-bearing demand			1,407,574				1,428,323				1,388,107				1,340,725				1,336,620
Savings and money market			2,376,831				2,378,834				2,346,522				2,292,881				2,242,122
Time			993,847				994,604				983,937				1,040,464				1,028,021
Total deposits			6,695,754				6,699,354				6,609,764				6,577,684				6,544,989
Long-term debt, net of unamortized debt issuance costs			76,547				76,547				76,547				131,527				131,466
Lease liabilities			24,063				25,073				25,549				26,288				31,981
Accrued interest payable			6,044				6,433				7,068				8,604				8,755
Other liabilities			102,321				94,077				97,732				89,309				83,502
Total liabilities			6,904,729				6,901,484				6,816,660				6,833,412				6,800,693
EQUITY
Shareholders' equity:
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025			—				—				—				—				—
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 25,806,418 at June 30, 2026, 26,115,229 at March 31, 2026, 26,374,967 at December 31, 2025, 26,903,512 at September 30, 2025, and 26,981,436 at June 30, 2025			359,364				370,633				381,158				397,479				399,823
Additional paid-in capital			107,534				106,501				107,308				106,675				106,033
Retained earnings			217,789				204,494				191,383				175,968				164,676
Accumulated other comprehensive loss			(88,356	)			(87,749	)			(87,268	)			(92,056	)			(101,658	)
Total equity			596,331				593,879				592,581				588,066				568,874
Total liabilities and equity		$	7,501,060			$	7,495,363			$	7,409,241			$	7,421,478			$	7,369,567

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

		Three Months Ended																Six Months Ended
		Jun 30,			Mar 31,			Dec 31,			Sep 30,				Jun 30,			Jun 30,
(Dollars in thousands, except per share data)		2026			2026			2025			2025				2025			2026			2025
Interest income:
Interest and fees on loans		$	65,553		$	64,323		$	66,897		$	67,222			$	65,668		$	129,876		$	129,787
Interest and dividends on investment securities:
Taxable investment securities			9,732			9,210			9,401			9,776				9,871			18,942			19,672
Tax-exempt investment securities			684			682			696			709				709			1,366			1,417
Interest on deposits in other financial institutions			2,331			2,500			1,501			1,857				1,484			4,831			3,738
Dividend income on FHLB and FRB stock			389			381			382			395				388			770			712
Total interest income			78,689			77,096			78,877			79,959				78,120			155,785			155,326
Interest expense:
Interest on deposits:
Interest-bearing demand			757			522			441			490				443			1,279			895
Savings and money market			7,554			7,502			8,004			8,898				8,414			15,056			17,276
Time			6,488			6,665			6,999			7,410				7,616			13,153			15,723
Interest on long-term debt			1,056			1,049			1,346			1,860				1,851			2,105			3,937
Total interest expense			15,855			15,738			16,790			18,658				18,324			31,593			37,831
Net interest income			62,834			61,358			62,087			61,301				59,796			124,192			117,495
Provision for credit losses			4,382			2,353			2,396			4,157				4,987			6,735			9,159
Net interest income after provision for credit losses			58,452			59,005			59,691			57,144				54,809			117,457			108,336
Other operating income:
Mortgage banking income			693			649			1,186			958				744			1,342			1,341
Service charges on deposit accounts			2,250			2,299			2,423			2,330				2,124			4,549			4,271
Other service charges and fees			6,330			5,789			5,570			6,472				5,957			12,119			11,723
Income from fiduciary activities			1,580			1,423			1,529			1,547				1,501			3,003			3,125
Income from bank-owned life insurance			2,999			399			2,816			1,879				2,260			3,398			2,757
Net loss on sales of investment securities			—			—			—			(30	)			—			—			—
Other			768			1,015			677			351				427			1,783			892
Total other operating income			14,620			11,574			14,201			13,507				13,013			26,194			24,109
Other operating expense:
Salaries and employee benefits			25,372			23,085			24,490			24,749				22,696			48,457			44,515
Net occupancy			4,299			4,322			4,432			4,598				4,253			8,621			8,645
Computer software			4,952			5,045			5,442			5,151				5,320			9,997			10,034
Legal and professional services			2,607			2,384			2,878			2,669				2,873			4,991			5,671
Equipment			822			807			825			867				950			1,629			2,032
Advertising			762			997			943			730				832			1,759			1,719
Communication			840			823			495			791				901			1,663			1,934
Other			6,526			6,203			6,175			7,454				6,121			12,729			11,468
Total other operating expense			46,180			43,666			45,680			47,009				43,946			89,846			86,018
Income before income taxes			26,892			26,913			28,212			23,642				23,876			53,805			46,427
Income tax expense			6,070			6,188			5,337			5,068				5,605			12,258			10,396
Net income		$	20,822		$	20,725		$	22,875		$	18,574			$	18,271		$	41,547		$	36,031
Per common share data:
Basic earnings per share		$	0.80		$	0.79		$	0.86		$	0.69			$	0.68		$	1.59		$	1.33
Diluted earnings per share			0.80			0.78			0.85			0.69				0.67			1.58			1.33
Cash dividends declared			0.29			0.29			0.28			0.27				0.27			0.58			0.54
Basic weighted average shares outstanding			25,999,122			26,277,749			26,687,551			26,968,163				26,988,169			26,137,665			27,037,388
Diluted weighted average shares outstanding			26,109,241			26,414,880			26,827,551			27,083,280				27,069,677			26,261,252			27,139,969

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)
(Unaudited)		TABLE 4

		Three Months Ended										Three Months Ended										Three Months Ended
		June 30, 2026										March 31, 2026										June 30, 2025
		Average			Average							Average			Average							Average			Average
(Dollars in thousands)		Balance			Yield/Rate			Interest				Balance			Yield/Rate			Interest				Balance			Yield/Rate			Interest
ASSETS
Interest-earning assets:
Interest-bearing deposits in other financial institutions		$	253,598		3.69	%		$	2,331			$	274,885		3.69	%		$	2,500			$	134,270		4.43	%		$	1,484
Investment securities:
Taxable [1]			1,362,100		2.86				9,732				1,318,722		2.80				9,210				1,379,213		2.86				9,871
Tax-exempt [1] [3]			134,964		2.56				866				135,519		2.55				863				139,103		2.58				897
Total investment securities			1,497,064		2.83				10,598				1,454,241		2.77				10,073				1,518,316		2.84				10,768
Loans, including loans held for sale [2]			5,300,949		4.96				65,553				5,268,482		4.93				64,323				5,307,946		4.96				65,668
FHLB and FRB stock			24,720		6.28				389				25,151		6.07				381				24,565		6.33				388
Total interest-earning assets			7,076,331		4.47				78,871				7,022,759		4.44				77,277				6,985,097		4.49				78,308
Noninterest-earning assets			357,491										373,325										329,047
Total assets		$	7,433,822									$	7,396,084									$	7,314,144
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits		$	1,442,933		0.21	%		$	757			$	1,407,877		0.15	%		$	522			$	1,357,049		0.13	%		$	443
Savings and money market deposits			2,367,169		1.28				7,554				2,371,217		1.28				7,502				2,275,799		1.48				8,414
Time deposits up to $250,000			428,642		2.14				2,290				432,745		2.18				2,331				439,738		2.32				2,546
Time deposits over $250,000			561,485		3.00				4,198				557,671		3.15				4,334				603,652		3.37				5,070
Total interest-bearing deposits			4,800,229		1.24				14,799				4,769,510		1.25				14,689				4,676,238		1.41				16,473
Long-term debt			76,547		5.53				1,056				76,547		5.56				1,049				131,431		5.65				1,851
Total interest-bearing liabilities			4,876,776		1.30				15,855				4,846,057		1.32				15,738				4,807,669		1.53				18,324
Noninterest-bearing deposits			1,830,681										1,822,851										1,827,225
Other liabilities			129,066										130,652										119,002
Total liabilities			6,836,523										6,799,560										6,753,896
Total equity			597,299										596,524										560,248
Total liabilities and equity		$	7,433,822									$	7,396,084									$	7,314,144
Net interest income (taxable-equivalent)									63,016										61,539										59,984
Taxable-equivalent adjustment [3]									(182	)									(181	)									(188	)
Net interest income (GAAP)								$	62,834									$	61,358									$	59,796
Interest rate spread					3.17	%									3.12	%									2.96	%
Net interest margin (taxable-equivalent) [4]					3.57	%									3.53	%									3.44	%
[1] At amortized cost.
[2] Includes nonaccrual loans.
[3] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.
[4] Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual).

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

		Six Months Ended										Six Months Ended
		June 30, 2026										June 30, 2025
		Average			Average							Average			Average
(Dollars in thousands)		Balance			Yield/Rate			Interest				Balance			Yield/Rate			Interest
ASSETS
Interest-earning assets:
Interest-bearing deposits in other financial institutions		$	264,183		3.69	%		$	4,831			$	169,991		4.43	%		$	3,738
Investment securities:
Taxable [1]			1,340,531		2.83				18,942				1,377,957		2.86				19,672
Tax-exempt [1] [3]			135,240		2.55				1,729				139,345		2.57				1,794
Total investment securities			1,475,771		2.80				20,671				1,517,302		2.83				21,466
Loans, including loans held for sale [2]			5,284,805		4.94				129,876				5,309,768		4.92				129,787
FHLB and FRB stock			24,935		6.17				770				22,541		6.32				712
Total interest-earning assets			7,049,694		4.45				156,148				7,019,602		4.46				155,703
Noninterest-earning assets			365,363										331,655
Total assets		$	7,415,057									$	7,351,257
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits		$	1,425,501		0.18	%		$	1,279			$	1,356,209		0.13	%		$	895
Savings and money market deposits			2,369,182		1.28				15,056				2,310,429		1.51				17,276
Time deposits up to $250,000			430,682		2.16				4,621				448,557		2.42				5,377
Time deposits over $250,000			559,589		3.07				8,532				603,785		3.46				10,346
Total interest-bearing deposits			4,784,954		1.24				29,488				4,718,980		1.45				33,894
Long-term debt			76,547		5.55				2,105				141,758		5.60				3,937
Total interest-bearing liabilities			4,861,501		1.31				31,593				4,860,738		1.57				37,831
Noninterest-bearing deposits			1,826,788										1,813,142
Other liabilities			129,855										124,767
Total liabilities			6,818,144										6,798,647
Total equity			596,913										552,610
Total liabilities and equity		$	7,415,057									$	7,351,257
Net interest income (taxable-equivalent)									124,555										117,872
Taxable-equivalent adjustment [3]									(363	)									(377	)
Net interest income (GAAP)								$	124,192									$	117,495
Interest rate spread					3.14	%									2.89	%
Net interest margin (taxable-equivalent) [4]					3.55	%									3.37	%
[1] At amortized cost.
[2] Includes nonaccrual loans.
[3] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.
[4] Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual).

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Loans
(Unaudited)		TABLE 6

		Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
(Dollars in thousands)		2026				2026				2025				2025				2025
Commercial and industrial		$	590,404			$	590,810			$	594,592			$	608,814			$	608,130
Construction			211,007				204,368				213,191				217,610				190,008
Residential mortgage			1,815,342				1,806,965				1,839,191				1,839,535				1,851,690
Home equity			577,283				582,380				600,082				610,889				627,834
Commercial mortgage			1,686,361				1,703,760				1,594,433				1,613,187				1,540,523
Consumer			427,925				432,066				447,607				477,167				471,624
Total loans, net of deferred fees and costs			5,308,322				5,320,349				5,289,096				5,367,202				5,289,809
Less: Allowance for credit losses			(60,581	)			(59,933	)			(59,621	)			(60,393	)			(59,611	)
Loans, net of allowance for credit losses		$	5,247,741			$	5,260,416			$	5,229,475			$	5,306,809			$	5,230,198

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

		Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
(Dollars in thousands)		2026			2026			2025			2025			2025
Noninterest-bearing demand		$	1,917,502		$	1,897,593		$	1,891,198		$	1,903,614		$	1,938,226
Interest-bearing demand			1,407,574			1,428,323			1,388,107			1,340,725			1,336,620
Savings and money market			2,376,831			2,378,834			2,346,522			2,292,881			2,242,122
Time deposits up to $250,000			421,811			429,564			433,629			444,005			439,687
Core deposits			6,123,718			6,134,314			6,059,456			5,981,225			5,956,655
Other time deposits greater than $250,000			441,059			431,013			412,188			458,339			459,945
Government time deposits			130,977			134,027			138,120			138,120			128,389
Total time deposits greater than $250,000			572,036			565,040			550,308			596,459			588,334
Total deposits		$	6,695,754		$	6,699,354		$	6,609,764		$	6,577,684		$	6,544,989

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

		Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,
(Dollars in thousands)		2026				2026				2025				2025				2025
Nonaccrual loans:
Commercial and industrial		$	192			$	490			$	591			$	357			$	110
Real estate:
Residential mortgage			9,268				10,518				10,572				11,413				12,327
Home equity			5,619				2,986				2,608				2,119				1,889
Consumer			543				530				615				430				569
Total nonaccrual loans			15,622				14,524				14,386				14,319				14,895
Other real estate owned ("OREO"):
Real estate:
Residential mortgage			924				—				—				—				—
Total OREO			924				—				—				—				—
Total nonperforming assets ("NPAs")			16,546				14,524				14,386				14,319				14,895
Accruing loans 90+ days past due:
Real estate:
Residential mortgage			—				—				664				1,159				1,625
Home equity			—				—				485				—				21
Consumer			286				290				403				349				418
Total accruing loans 90+ days past due			286				290				1,552				1,508				2,064
Total NPAs and accruing loans 90+ days past due		$	16,832			$	14,814			$	15,938			$	15,827			$	16,959
Ratio of total nonaccrual loans to total loans			0.29	%			0.27	%			0.27	%			0.27	%			0.28	%
Ratio of total NPAs to total assets			0.22				0.19				0.19				0.19				0.20
Ratio of total NPAs to total loans and OREO			0.31				0.27				0.27				0.27				0.28
Ratio of total NPAs and accruing loans 90+ days past due to total loans and OREO			0.32				0.28				0.30				0.29				0.32
Quarter-to-quarter changes in NPAs:
Balance at beginning of quarter		$	14,524			$	14,386			$	14,319			$	14,895			$	11,085
Additions			4,202				2,094				2,549				838				5,879
Reductions:
Payments			(782	)			(284	)			(397	)			(286	)			(585	)
Return to accrual status			(16	)			(883	)			(1,098	)			(821	)			(861	)
Charge-offs, valuation adjustments and other reductions			(1,382	)			(789	)			(987	)			(307	)			(623	)
Total reductions			(2,180	)			(1,956	)			(2,482	)			(1,414	)			(2,069	)
Balance at end of quarter		$	16,546			$	14,524			$	14,386			$	14,319			$	14,895

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

		Three Months Ended																				Six Months Ended
		Jun 30,				Mar 31,				Dec 31,				Sep 30,				Jun 30,				Jun 30,
(Dollars in thousands)		2026				2026				2025				2025				2025				2026				2025
Allowance for credit losses ("ACL") on loans:
Balance at beginning of period		$	59,933			$	59,621			$	60,393			$	59,611			$	60,469			$	59,621			$	59,182
Provision for credit losses on loans			3,304				2,724				1,685				3,440				3,810				6,028				7,715
Charge-offs:
Commercial and industrial			(1,353	)			(1,056	)			(678	)			(1,071	)			(2,858	)			(2,409	)			(3,438	)
Real estate:
Residential mortgage			(23	)			—				—				—				—				(23	)			—
Consumer			(2,283	)			(2,301	)			(2,831	)			(2,824	)			(2,864	)			(4,584	)			(5,841	)
Total charge-offs			(3,659	)			(3,357	)			(3,509	)			(3,895	)			(5,722	)			(7,016	)			(9,279	)
Recoveries:
Commercial and industrial			198				175				266				204				195				373				366
Real estate:
Construction			—				2				1				—				3				2				3
Residential mortgage			10				8				9				8				7				18				17
Home equity			6				6				9				9				9				12				12
Consumer			789				754				767				1,016				840				1,543				1,595
Total recoveries			1,003				945				1,052				1,237				1,054				1,948				1,993
Net charge-offs			(2,656	)			(2,412	)			(2,457	)			(2,658	)			(4,668	)			(5,068	)			(7,286	)
Balance at end of period		$	60,581			$	59,933			$	59,621			$	60,393			$	59,611			$	60,581			$	59,611
Average loans, net of deferred fees and costs		$	5,300,949			$	5,268,482			$	5,328,499			$	5,332,656			$	5,307,946			$	5,284,805			$	5,309,768
Ratio of annualized net charge-offs to average loans			0.20	%			0.18	%			0.18	%			0.20	%			0.35	%			0.19	%			0.27	%
Ratio of ACL to total loans			1.14				1.13				1.13				1.13				1.13				1.14				1.13

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

To supplement its consolidated financial information, the Company utilizes certain non-GAAP financial measures. These measures are not intended to be considered in isolation or as a substitute for comparable GAAP results. The Company believes these non-GAAP financial measures provide meaningful insight to investors and other stakeholders in understanding its financial performance and position, by excluding certain transactions that may be non-recurring, non-operational, or not indicative of ongoing results. The Company believes that these non-GAAP measures offer a useful perspective for evaluating performance trends over time and are intended to support period-to-period comparisons. The Company believes they are valuable tools for both investors and management in assessing historical results and forecasting future performance. Non-GAAP financial measures may not be comparable to similarly entitled measures reported by other companies. The results for the three months ended June 30, 2026 were not materially impacted by items outside of the normal course of business.

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

		Three Months Ended												Six Months Ended
(dollars in thousands)		Jun 30, 2026				Dec 31, 2025				Jun 30, 2025				Jun 30, 2026				Jun 30, 2025
Total other operating expense		$	46,180			$	45,680			$	43,946			$	89,846			$	86,018
Net interest income		$	62,834			$	62,087			$	59,796			$	124,192			$	117,495
Total other operating income			14,620				14,201				13,013				26,194				24,109
Total revenue		$	77,454			$	76,288			$	72,809			$	150,386			$	141,604
Efficiency ratio (non-GAAP)			59.62	%			59.88	%			60.36	%			59.74	%			60.75	%

The table below presents the Tangible Common Equity ("TCE") ratio, a non-GAAP financial measure, as of the dates indicated. The TCE ratio is calculated by dividing tangible common equity by tangible assets.

(dollars in thousands)		Jun 30, 2026				Mar 31, 2026				Dec 31, 2025				Sep 30, 2025				Jun 30, 2025
Total equity		$	596,331			$	593,879			$	592,581			$	588,066			$	568,874
Less: Intangible assets			—				—				—				—				—
TCE		$	596,331			$	593,879			$	592,581			$	588,066			$	568,874
Total assets		$	7,501,060			$	7,495,363			$	7,409,241			$	7,421,478			$	7,369,567
Less: Intangible assets			—				—				—				—				—
Tangible assets		$	7,501,060			$	7,495,363			$	7,409,241			$	7,421,478			$	7,369,567
TCE ratio (non-GAAP)			7.95	%			7.92	%			8.00	%			7.92	%			7.72	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260724040698/en/

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.