EX-99.1 2 exhibit99-1erxq12025.htm EX-99.1 Document

Exhibit 99.1
cpfmidnight.jpg
 
  FOR IMMEDIATE RELEASE
   
Investor Contact:Ian TanakaMedia Contact:Tim Sakahara
 SVP, TreasurerAVP, Corporate Communications Manager
 (808) 544-3646(808) 544-5125
 ian.tanaka@cpb.banktim.sakahara@cpb.bank
 
NEWS RELEASE

CENTRAL PACIFIC FINANCIAL REPORTS FIRST QUARTER 2025 EARNINGS OF $17.8 MILLION

Highlights include:
•Net income of $17.8 million, or $0.65 per diluted share
•Return on average assets of 0.96% and return on average equity of 13.04%
•Efficiency ratio improved to 61.16%
•Net interest margin of 3.31% increased by 14 bps from 3.17% in the previous quarter
•Total loans of $5.33 billion increased by $1.7 million from the previous quarter
•Total deposits of $6.60 billion decreased by $48.0 million from the previous quarter. Core deposits of $5.98 billion decreased by $64.6 million from the previous quarter.
•Total risk-based capital and common equity tier 1 ratios of 15.6% and 12.4%, respectively
•The CPF Board of Directors approved a quarterly cash dividend of $0.27 per share

HONOLULU, HI, April 23, 2025 – Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), today reported net income of $17.8 million, or fully diluted earnings per share ("EPS") of $0.65 for the first quarter of 2025, compared to net income of $11.3 million, or EPS of $0.42 in the previous quarter and net income of $12.9 million, or EPS of $0.48 in the year-ago quarter. Results for the previous quarter were impacted by a pre-tax loss related to an investment portfolio repositioning of $9.9 million, as previously reported.

"Our first quarter financial results were solid and continue to trend favorably. Through our balance sheet optimization and strong focus on meeting the needs of our customers, we were successful in continuing to meaningfully grow net interest income and net interest margin. Our asset quality has improved further with a decline in net charge-offs and continued low levels of non-performing assets. With our strong capital, liquidity and credit positions, we believe we are well positioned to navigate the current operating environment," said Arnold Martines, Chairman, President and Chief Executive Officer.

Earnings Highlights
Net interest income was $57.7 million for the first quarter of 2025, which increased by $1.9 million, or 3.5% from the previous quarter, and increased by $7.5 million, or 15.0% from the year-ago quarter. Net interest margin ("NIM") was 3.31% for the first quarter of 2025, an increase of 14 basis points ("bp" or "bps") from the previous quarter and an increase of 48 bps from the year-ago quarter. The sequential quarter increase in net interest income and NIM was primarily due to a 19 bps decline in average rates paid on interest-bearing deposits, combined with a higher average yield earned on investment securities of 24 bps, partially offset by a decline in the average yield earned on loans of 3 bps. The higher average yield earned on investment securities in the first quarter of


Central Pacific Financial Reports First Quarter 2025 Earnings of $17.8 Million
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2025 was primarily due to the investment securities portfolio repositioning completed in the fourth quarter of 2024. Interest income on investment securities also included $0.7 million in income from an interest rate swap, compared to $0.6 million in the fourth quarter of 2024.

The Company recorded a provision for credit losses of $4.2 million in the first quarter of 2025, compared to a provision of $0.8 million in the previous quarter and a provision of $3.9 million in the year-ago quarter. The provision in the current quarter consisted of a provision for credit losses on loans of $3.9 million and a provision for off-balance sheet exposures of $0.3 million. The increase in the provision from the previous quarter was primarily driven by the macro-economic forecast used in our current expected credit losses model.

Other operating income totaled $11.1 million for the first quarter of 2025, compared to $2.6 million in the previous quarter and $11.2 million in the year-ago quarter. The increase in other operating income from the previous quarter was primarily due to the aforementioned $9.9 million pre-tax loss on an investment securities portfolio repositioning completed in the previous quarter, partially offset by lower income from bank-owned life insurance of $1.5 million.

Other operating expense totaled $42.1 million for the first quarter of 2025, compared to $44.2 million in the previous quarter and $40.6 million in the year-ago quarter. The decrease in other operating expense from the previous quarter was primarily due to an impairment charge on intangible assets of $1.4 million (included in other) recorded in the previous quarter.

The efficiency ratio improved to 61.16% for the first quarter of 2025, compared to 75.65% in the previous quarter and 66.05% in the year-ago quarter. Excluding the aforementioned pre-tax loss related to an investment portfolio repositioning of $9.9 million, the adjusted efficiency ratio (non-GAAP) for the previous quarter was 64.65%.

The effective tax rate was 21.2% for the first quarter of 2025, compared to 15.4% in the previous quarter and 23.5% in the year-ago quarter. The effective tax rate in the fourth quarter of 2024 included additional tax credits recognized and tax return to provision adjustments.

Balance Sheet Highlights
Total assets of $7.41 billion at March 31, 2025 decreased by $66.9 million, or 0.9% from $7.47 billion at December 31, 2024, and was relatively flat compared to $7.41 billion at March 31, 2024. The Company had $276.9 million in cash on its balance sheet and $2.54 billion in total other liquidity sources, including available borrowing capacity and unpledged investment securities at March 31, 2025.

Total loans, net of deferred fees and costs, of $5.33 billion at March 31, 2025 was relatively flat compared to $5.33 billion at December 31, 2024, and decreased by $66.9 million, or 1.2% from $5.40 billion at March 31, 2024. Average yields earned on loans during the first quarter of 2025 was 4.88%, compared to 4.91% in the previous quarter and 4.67% in the year-ago quarter.

Total deposits of $6.60 billion at March 31, 2025 decreased by $48.0 million or 0.72% from $6.64 billion at December 31, 2024, and decreased by $22.8 million, or 0.3% from $6.62 billion at March 31, 2024. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $5.98 billion at March 31, 2025, and decreased by $64.6 million, or 1.1% from $6.04 billion at December 31, 2024 and increased by $80.2 million, or 1.4% from $5.90 billion at March 31, 2024. Average rates paid on total deposits during the first quarter of 2025 was 1.08%, compared to 1.21% in the previous quarter and 1.32% in the year-ago quarter.

Asset Quality
Nonperforming assets totaled $11.1 million, or 0.15% of total assets at March 31, 2025, compared to $11.0 million, or 0.15% of total assets at December 31, 2024 and $10.1 million, or 0.14% of total assets at March 31, 2024.

Net charge-offs totaled $2.6 million in the first quarter of 2025, compared to net charge-offs of $3.8 million in the previous quarter, and net charge-offs of $4.5 million in the year-ago quarter. Annualized net charge-offs as a percentage of average loans was 0.20%, 0.29% and 0.34% during the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

The allowance for credit losses, as a percentage of total loans was 1.13% at March 31, 2025, compared to 1.11% at December 31, 2024, and 1.18% at March 31, 2024.



Central Pacific Financial Reports First Quarter 2025 Earnings of $17.8 Million
Page 3

Capital
Total shareholders' equity was $557.4 million at March 31, 2025, compared to $538.4 million and $507.2 million at December 31, 2024 and March 31, 2024, respectively.

During the first quarter of 2025, the Company repurchased 77,316 shares of common stock at a total cost of $2.1 million, or $27.09 per share. As of March 31, 2025, $27.9 million in share repurchase authorization remained available under the Company's share repurchase program.

The Company's leverage, common equity tier 1, tier 1 risk-based capital, and total risk-based capital ratios were 9.4%, 12.4%, 13.4%, and 15.6%, respectively, at March 31, 2025, compared to 9.3%, 12.3%, 13.2%, and 15.4%, respectively, at December 31, 2024.

On April 22, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.27 per share on its outstanding common shares. The dividend will be payable on June 16, 2025 to shareholders of record at the close of business on May 30, 2025.

Conference Call
The Company's management will host a conference call today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time) to discuss the quarterly results. Individuals are encouraged to listen to the live webcast of the presentation by visiting the investor relations page of the Company's website at http://ir.cpb.bank. Alternatively, investors may participate in the live call by dialing 1-800-715-9871 (conference ID: 6299769). A playback of the call will be available through May 23, 2025 by dialing 1-800-770-2030 (playback ID: 6299769) and on the Company's website. Information which may be discussed in the conference call is provided in an earnings supplement presentation on the Company's website at http://ir.cpb.bank.

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


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Central Pacific Financial Reports First Quarter 2025 Earnings of $17.8 Million
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Forward-Looking Statements
This document may contain forward-looking statements ("FLS") concerning: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, payment or nonpayment of dividends, net interest income, capital position, credit losses, net interest margin or other financial items; statements of plans, objectives and expectations of Central Pacific Financial Corp. (the "Company") or its management or Board of Directors, including those relating to business plans, use of capital resources, products or services and regulatory developments and regulatory actions; statements of future economic performance including anticipated performance results from our business initiatives; or any statements of the assumptions underlying or relating to any of the foregoing. Words such as "believe," "plan," "anticipate," "seek," "expect," "intend," "forecast," "hope," "target," "continue," "remain," "estimate," "will," "should," "may" and other similar expressions are intended to identify FLS but are not the exclusive means of identifying such statements.

While we believe that our FLS and the assumptions underlying them are reasonably based, such statements and assumptions are by their nature subject to risks and uncertainties, thus could later prove to be inaccurate or incorrect. Accordingly, actual results could differ materially from those statements or projections for a variety of reasons, including, but not limited to: the effects of inflation and interest rate fluctuations; the effects of trade policy and tariffs and other executive orders; the adverse effects of bank failures and the potential impact of such developments on customer confidence, deposit behavior, liquidity and regulatory responses thereto; the adverse effects of the COVID-19 pandemic virus (and its variants) and other pandemic viruses on local, national and international economies, including, but not limited to, the adverse impact on tourism and construction in the State of Hawaii, our borrowers, customers, third-party contractors, vendors and employees, as well as the effects of government programs and initiatives in response thereto; supply chain disruptions; labor contract disputes and potential strikes; the increase in inventory or adverse conditions in the real estate market and deterioration in the construction industry; adverse changes in the financial performance and/or condition of our borrowers and, as a result, increased loan delinquency rates, deterioration in asset quality, and losses in our loan portfolio; the impact of local, national, and international economies and events (including natural disasters such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, and earthquakes) on the Company's business and operations and on tourism, the military, and other major industries operating within the Hawaii market and any other markets in which the Company does business; deterioration or malaise in domestic economic conditions, including any destabilization in the financial industry and deterioration of the real estate market, as well as the impact of declining levels of consumer and business confidence in the state of the economy in general and in financial institutions in particular; changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act, changes in capital standards, other regulatory reform and federal and state legislation, including but not limited to regulations promulgated by the Consumer Financial Protection Bureau, government-sponsored enterprise reform, and any related rules and regulations which affect our business operations and competitiveness; the costs and effects of legal and regulatory developments, including legal proceedings and lawsuits we are or may become subject to, or regulatory or other governmental inquiries and proceedings and the resolution thereof; the results of regulatory examinations or reviews and the effect of, and our ability to comply with, any regulations or regulatory orders or actions we are or may become subject to, and the effect of any recurring or special FDIC assessments; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the PCAOB, the FASB and other accounting standard setters and the cost and resources required to implement such changes; the effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System; securities market and monetary fluctuations, including the impact resulting from the elimination of the LIBOR Index; negative trends in our market capitalization and adverse changes in the price of the Company's common stock; the effects of any potential or actual acquisitions or dispositions we may make or evaluate, and the related costs; political instability; acts of war or terrorism; changes in consumer spending, borrowings and savings habits; technological changes and developments; cybersecurity and data privacy breaches and the consequence therefrom; failure to maintain effective internal control over financial reporting or disclosure controls and procedures; our ability to address deficiencies in our internal controls over financial reporting or disclosure controls and procedures; changes in the competitive environment among financial holding companies and other financial service providers; our ability to successfully implement our initiatives to lower our efficiency ratio; our ability to attract and retain key personnel; changes in our personnel, organization, compensation and benefit plans; our ability to successfully implement and achieve the objectives of our BaaS initiatives, including adoption of the initiatives by customers and risks faced by any of our bank collaborations including reputational and regulatory risk; and our success at managing the risks involved in the foregoing items.

For further information with respect to factors that could cause actual results to materially differ from the expectations or projections stated in the FLS, please see the Company's publicly available SEC filings, including the Company's Forms 10-Q and 10-K for the last fiscal quarter and year and, in particular, the discussion of "Risk Factors" set forth therein. We urge investors to consider all of these factors carefully in evaluating the FLS contained in this document. FLS speak only as of the date on which such statements are made. We undertake no obligation to update any FLS to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events except as required by law.


CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)TABLE 1
 
 Three Months Ended
(Dollars in thousands, Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,
except for per share amounts)20252024202420242024
CONDENSED INCOME STATEMENT   
Net interest income$57,699 $55,774 $53,851 $51,921 $50,187 
Provision for credit losses 4,172 818 2,833 2,239 3,936 
Total other operating income11,096 2,624 12,734 12,121 11,244 
Total other operating expense 42,072 44,177 46,687 41,151 40,576 
Income tax expense4,791 2,058 3,760 4,835 3,974 
Net income17,760 11,345 13,305 15,817 12,945 
Basic earnings per share$0.66 $0.42 $0.49 $0.58 $0.48 
Diluted earnings per share0.65 0.42 0.49 0.58 0.48 
Dividends declared per share0.27 0.26 0.26 0.26 0.26 
PERFORMANCE RATIOS     
Return on average assets (ROA) [1]0.96 %0.62 %0.72 %0.86 %0.70 %
Return on average equity (ROE) [1]13.04 8.37 10.02 12.42 10.33 
Average equity to average assets7.37 7.35 7.23 6.94 6.73 
Efficiency ratio [2]61.16 75.65 70.12 64.26 66.05 
Net interest margin (NIM) [1]3.31 3.17 3.07 2.97 2.83 
Dividend payout ratio [3]41.54 61.90 53.06 44.83 54.17 
SELECTED AVERAGE BALANCES     
Average loans, including loans held for sale$5,311,610 $5,315,802 $5,330,810 $5,385,829 $5,400,558 
Average interest-earning assets7,054,488 7,052,296 7,022,910 7,032,515 7,140,264 
Average assets7,388,783 7,377,398 7,347,403 7,338,714 7,449,661 
Average deposits6,561,100 6,546,616 6,535,422 6,542,767 6,659,812 
Average interest-bearing liabilities4,914,398 4,906,623 4,904,460 4,910,998 5,009,542 
Average equity544,888 542,135 530,928 509,507 501,120 
[1] ROA and ROE are annualized based on a 30/360 day convention. Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual).
[2] Efficiency ratio is defined as total other operating expense divided by total revenue (net interest income and total other operating income).
[3] Dividend payout ratio is defined as dividends declared per share divided by diluted earnings per share.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Financial Highlights
(Unaudited)TABLE 1 (CONTINUED)
 Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,
20252024202420242024
REGULATORY CAPITAL RATIOS
Central Pacific Financial Corp.
Leverage ratio9.4 %9.3 %9.5 %9.3 %9.0 %
Common equity tier 1 capital ratio12.4 12.3 12.1 11.9 11.6 
Tier 1 risk-based capital ratio13.4 13.2 13.1 12.8 12.6 
Total risk-based capital ratio15.6 15.4 15.3 15.1 14.8 
Central Pacific Bank
Leverage ratio9.8 9.7 9.8 9.6 9.4 
Common equity tier 1 capital ratio14.0 13.8 13.6 13.3 13.1 
Tier 1 risk-based capital ratio14.0 13.8 13.6 13.3 13.1 
Total risk-based capital ratio15.2 14.9 14.8 14.5 14.3 


Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,
(dollars in thousands, except for per share amounts)20252024202420242024
BALANCE SHEET   
Total loans, net of deferred fees and costs$5,334,547 $5,332,852 $5,342,609 $5,383,644 $5,401,417 
Total assets7,405,239 7,472,096 7,415,430 7,386,952 7,409,999 
Total deposits6,596,048 6,644,011 6,583,013 6,582,455 6,618,854 
Long-term debt131,405 156,345 156,284 156,223 156,163 
Total equity557,376 538,385 543,725 518,647 507,203 
Total equity to total assets7.53 %7.21 %7.33 %7.02 %6.84 %
ASSET QUALITY     
Allowance for credit losses (ACL)$60,469 $59,182 $61,647 $62,225 $63,532 
Nonaccrual loans11,085 11,018 11,597 10,257 10,132 
Non-performing assets (NPA)11,085 11,018 11,597 10,257 10,132 
Ratio of ACL to total loans1.13 %1.11 %1.15 %1.16 %1.18 %
Ratio of NPA to total assets0.15 %0.15 %0.16 %0.14 %0.14 %
PER SHARE OF COMMON STOCK OUTSTANDING     
Book value per common share$20.60 $19.89 $20.09 $19.16 $18.76 
Closing market price per common share27.04 29.05 29.51 21.20 19.75 



CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)TABLE 2
 
 Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,
(Dollars in thousands, except share data)20252024202420242024
ASSETS   
Cash and due from financial institutions$106,670 $77,774 $100,064 $103,829 $98,410 
Interest-bearing deposits in other financial institutions170,226 303,167 226,505 195,062 214,472 
Investment securities:  
Debt securities available-for-sale, at fair value780,379 737,658 723,453 676,719 660,833 
Debt securities held-to-maturity, at amortized cost; fair value of: $511,717 at March 31, 2025, $506,681 at December 31, 2024, $546,990 at September 30, 2024, $528,088 at June 30, 2024, and $541,685 at March 31, 2024589,688 596,930 606,117 615,867 624,948 
Total investment securities1,370,067 1,334,588 1,329,570 1,292,586 1,285,781 
Loans held for sale2,788 5,662 1,609 3,950 755 
Loans, net of deferred fees and costs5,334,547 5,332,852 5,342,609 5,383,644 5,401,417 
Less: allowance for credit losses(60,469)(59,182)(61,647)(62,225)(63,532)
Loans, net of allowance for credit losses5,274,078 5,273,670 5,280,962 5,321,419 5,337,885 
Premises and equipment, net103,490 104,342 104,575 100,646 97,688 
Accrued interest receivable24,743 23,378 23,942 23,184 21,957 
Investment in unconsolidated entities50,885 52,417 54,836 40,155 40,780 
Mortgage servicing rights8,418 8,473 8,513 8,636 8,599 
Bank-owned life insurance176,846 176,216 175,914 173,716 172,228 
Federal Home Loan Bank of Des Moines ("FHLB") and Federal Reserve Bank ("FRB") stock24,163 6,929 6,929 6,925 6,921 
Right-of-use lease assets29,829 30,824 32,192 32,081 32,079 
Other assets63,036 74,656 69,819 84,763 92,444 
Total assets$7,405,239 $7,472,096 $7,415,430 $7,386,952 $7,409,999 
LIABILITIES     
Deposits:     
Noninterest-bearing demand$1,854,241 $1,888,937 $1,838,009 $1,847,173 $1,848,554 
Interest-bearing demand1,368,519 1,338,719 1,255,382 1,283,669 1,290,321 
Savings and money market2,316,416 2,329,170 2,336,323 2,234,111 2,211,966 
Time1,056,872 1,087,185 1,153,299 1,217,502 1,268,013 
Total deposits6,596,048 6,644,011 6,583,013 6,582,455 6,618,854 
Long-term debt, net of unamortized debt issuance costs of: $142 at March 31, 2025, $202 at December 31, 2024, $263 at September 30, 2024, $324 at June 30, 2024, and $384 at March 31, 2024131,405 156,345 156,284 156,223 156,163 
Lease liabilities31,057 32,025 33,807 33,422 33,169 
Accrued interest payable8,757 10,051 12,980 14,998 16,654 
Other liabilities80,596 91,279 85,621 81,207 77,956 
Total liabilities6,847,863 6,933,711 6,871,705 6,868,305 6,902,796 
EQUITY
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024— — — — — 
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 27,061,589 at March 31, 2025, 27,065,570 at December 31, 2024, 27,064,501 at September 30, 2024, 27,063,644 at June 30, 2024, and 27,042,326 at March 31, 2024402,400 404,494 404,494 404,494 404,494 
Additional paid-in capital104,849 105,054 104,794 104,161 103,130 
Retained earnings153,692 143,259 138,951 132,683 123,902 
Accumulated other comprehensive loss(103,565)(114,422)(104,514)(122,691)(124,323)
Total equity557,376 538,385 543,725 518,647 507,203 
Total liabilities and equity$7,405,239 $7,472,096 $7,415,430 $7,386,952 $7,409,999 



CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES 
Consolidated Statements of Income 
(Unaudited)TABLE 3
 Three Months Ended
 Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,
(Dollars in thousands, except per share data)20252024202420242024
Interest income:   
Interest and fees on loans$64,119 $65,482 $65,469 $64,422 $62,819 
Interest and dividends on investment securities:
Taxable investment securities9,801 8,626 8,975 8,466 7,211 
Tax-exempt investment securities708 723 551 598 655 
Interest on deposits in other financial institutions2,254 3,004 2,775 2,203 3,611 
Dividend income on FHLB and FRB stock324 125 127 151 106 
Total interest income77,206 77,960 77,897 75,840 74,402 
Interest expense:     
Interest on deposits:     
Interest-bearing demand452 686 484 490 499 
Savings and money market8,862 9,388 10,235 8,977 8,443 
Time8,107 9,881 11,040 12,173 12,990 
Interest on short-term borrowings— — — 1 — 
Interest on long-term debt2,086 2,231 2,287 2,278 2,283 
Total interest expense19,507 22,186 24,046 23,919 24,215 
Net interest income57,699 55,774 53,851 51,921 50,187 
Provision for credit losses4,172 818 2,833 2,239 3,936 
Net interest income after provision for credit losses53,527 54,956 51,018 49,682 46,251 
Other operating income:     
Mortgage banking income597 913 822 1,040 613 
Service charges on deposit accounts2,147 2,251 2,167 2,135 2,103 
Other service charges and fees5,766 5,476 5,947 5,869 5,261 
Income from fiduciary activities1,624 1,430 1,447 1,449 1,435 
Income from bank-owned life insurance497 1,966 1,897 1,234 1,522 
Net loss on sales of investment securities— (9,934)— — — 
Other465 522 454 394 310 
Total other operating income11,096 2,624 12,734 12,121 11,244 
Other operating expense:     
Salaries and employee benefits21,819 21,661 22,299 21,246 20,735 
Net occupancy4,392 4,192 4,612 4,597 4,600 
Computer software4,714 4,757 4,590 4,381 4,287 
Legal and professional services2,798 2,504 2,460 2,506 2,320 
Equipment1,082 904 972 995 1,010 
Advertising887 911 889 901 914 
Communication1,033 943 740 657 837 
Other5,347 8,305 10,125 5,868 5,873 
Total other operating expense42,072 44,177 46,687 41,151 40,576 
Income before income taxes22,551 13,403 17,065 20,652 16,919 
Income tax expense4,791 2,058 3,760 4,835 3,974 
Net income$17,760 $11,345 $13,305 $15,817 $12,945 
Per common share data:     
Basic earnings per share$0.66 $0.42 $0.49 $0.58 $0.48 
Diluted earnings per share0.65 0.42 0.49 0.58 0.48 
Cash dividends declared0.27 0.26 0.26 0.26 0.26 
Basic weighted average shares outstanding27,087,154 27,065,047 27,064,035 27,053,549 27,046,525 
Diluted weighted average shares outstanding27,213,406 27,221,121 27,194,625 27,116,349 27,099,101 



CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES 
Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent) 
(Unaudited)TABLE 4
 Three Months EndedThree Months EndedThree Months Ended
March 31, 2025December 31, 2024March 31, 2024
 AverageAverage AverageAverage AverageAverage 
(Dollars in thousands)BalanceYield/RateInterestBalanceYield/RateInterestBalanceYield/RateInterest
ASSETS
Interest-earning assets:         
Interest-bearing deposits in other financial institutions$206,108 4.44 %$2,254 $250,493 4.77 %$3,004 $265,418 5.47 %$3,611 
Investment securities:
Taxable1,376,687 2.85 9,801 1,338,569 2.58 8,626 1,324,657 2.18 7,211 
Tax-exempt [1]139,589 2.57 896 140,503 2.60 915 142,830 2.32 829 
Total investment securities1,516,276 2.82 10,697 1,479,072 2.58 9,541 1,467,487 2.19 8,040 
Loans, including loans held for sale5,311,610 4.88 64,119 5,315,802 4.91 65,482 5,400,558 4.67 62,819 
FHLB and FRB stock20,494 6.32 324 6,929 7.23 125 6,801 6.24 106 
Total interest-earning assets7,054,488 4.43 77,394 7,052,296 4.42 78,152 7,140,264 4.19 74,576 
Noninterest-earning assets334,295   325,102   309,397   
Total assets$7,388,783   $7,377,398   $7,449,661   
LIABILITIES AND EQUITY
Interest-bearing liabilities:        
Interest-bearing demand deposits$1,355,360 0.14 %$452 $1,312,561 0.21 %$686 $1,296,865 0.15 %$499 
Savings and money market deposits2,345,445 1.53 8,862 2,313,293 1.61 9,388 2,218,250 1.53 8,443 
Time deposits up to $250,000457,473 2.51 2,832 518,540 2.99 3,900 544,279 3.21 4,339 
Time deposits over $250,000603,919 3.54 5,275 605,920 3.93 5,981 794,019 4.38 8,651 
Total interest-bearing deposits4,762,197 1.48 17,421 4,750,314 1.67 19,955 4,853,413 1.82 21,932 
Federal funds purchased and securities sold— — — 2 5.57 — — — — 
FHLB advances and other short-term borrowings— — — 2 5.04 — — — — 
Long-term debt152,201 5.56 2,086 156,305 5.68 2,231 156,129 5.88 2,283 
Total interest-bearing liabilities4,914,398 1.61 19,507 4,906,623 1.80 22,186 5,009,542 1.94 24,215 
Noninterest-bearing deposits1,798,903   1,796,302   1,806,399   
Other liabilities130,594   132,338   132,600   
Total liabilities6,843,895   6,835,263   6,948,541   
Total equity544,888   542,135   501,120   
Total liabilities and equity$7,388,783   $7,377,398   $7,449,661   
Net interest income (taxable-equivalent)  57,887   55,966   50,361 
Taxable-equivalent adjustment(188)(192)(174)
Net interest income (GAAP)$57,699 $55,774 $50,187 
Interest rate spread2.82 %2.62 %2.25 %
Net interest margin (taxable-equivalent) 3.31 %  3.17 %  2.83 % 
[1] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.



CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Loans by Geographic Distribution
(Unaudited)TABLE 5
 Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,
(Dollars in thousands)20252024202420242024
HAWAII:     
Commercial and industrial$461,020 $430,167 $411,209 $415,538 $420,009 
Real estate:
Construction159,081 145,182 134,043 147,657 145,213 
Residential mortgage1,870,239 1,892,520 1,897,919 1,913,177 1,924,889 
Home equity655,237 676,982 697,123 706,811 729,210 
Commercial mortgage1,174,573 1,165,060 1,157,625 1,150,703 1,103,174 
Consumer219,941 274,712 277,849 287,295 306,563 
Total loans, net of deferred fees and costs4,540,091 4,584,623 4,575,768 4,621,181 4,629,058 
Less: Allowance for credit losses(45,937)(45,967)(47,789)(47,902)(48,739)
Loans, net of allowance for credit losses$4,494,154 $4,538,656 $4,527,979 $4,573,279 $4,580,319 
U.S. MAINLAND: [1]     
Commercial and industrial$173,600 $176,769 $188,238 $169,318 $156,087 
Real estate:
Construction1,011 29 24,083 23,865 23,356 
Commercial mortgage377,866 335,620 312,685 314,667 319,088 
Consumer241,979 235,811 241,835 254,613 273,828 
Total loans, net of deferred fees and costs794,456 748,229 766,841 762,463 772,359 
Less: Allowance for credit losses(14,532)(13,215)(13,858)(14,323)(14,793)
Loans, net of allowance for credit losses$779,924 $735,014 $752,983 $748,140 $757,566 
TOTAL:     
Commercial and industrial$634,620 $606,936 $599,447 $584,856 $576,096 
Real estate:
Construction160,092 145,211 158,126 171,522 168,569 
Residential mortgage1,870,239 1,892,520 1,897,919 1,913,177 1,924,889 
Home equity655,237 676,982 697,123 706,811 729,210 
Commercial mortgage1,552,439 1,500,680 1,470,310 1,465,370 1,422,262 
Consumer461,920 510,523 519,684 541,908 580,391 
Total loans, net of deferred fees and costs5,334,547 5,332,852 5,342,609 5,383,644 5,401,417 
Less: Allowance for credit losses(60,469)(59,182)(61,647)(62,225)(63,532)
Loans, net of allowance for credit losses$5,274,078 $5,273,670 $5,280,962 $5,321,419 $5,337,885 
[1] U.S. Mainland includes territories of the United States.



CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Deposits
(Unaudited)TABLE 6
 
 Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,
(Dollars in thousands)20252024202420242024
Noninterest-bearing demand$1,854,241 $1,888,937 $1,838,009 $1,847,173 $1,848,554 
Interest-bearing demand1,368,519 1,338,719 1,255,382 1,283,669 1,290,321 
Savings and money market2,316,416 2,329,170 2,336,323 2,234,111 2,211,966 
Time deposits up to $250,000436,437 483,378 536,316 547,212 544,600 
Core deposits5,975,613 6,040,204 5,966,030 5,912,165 5,895,441 
Other time deposits greater than $250,000475,861 500,693 492,221 476,457 487,950 
Government time deposits144,574 103,114 124,762 193,833 235,463 
Total time deposits greater than $250,000620,435 603,807 616,983 670,290 723,413 
Total deposits$6,596,048 $6,644,011 $6,583,013 $6,582,455 $6,618,854 



CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Nonperforming Assets and Accruing Loans 90+ Days Past Due
(Unaudited)TABLE 7
 Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,
(Dollars in thousands)20252024202420242024
Nonaccrual loans:
Commercial and industrial$531 $414 $376 $355 $357 
Real estate:
Residential mortgage9,199 9,044 9,680 7,991 7,979 
Home equity746 952 915 1,247 929 
Commercial mortgage— — — 77 77 
Consumer609 608 626 587 790 
Total nonaccrual loans11,085 11,018 11,597 10,257 10,132 
Other real estate owned ("OREO")— — — — — 
Total nonperforming assets ("NPAs")11,085 11,018 11,597 10,257 10,132 
Accruing loans 90+ days past due:     
Real estate:  
Construction— — — — 588 
Residential mortgage— 323 13 1,273 386 
Home equity87 78 135 135 560 
Consumer670 373 481 896 924 
Total accruing loans 90+ days past due757 774 629 2,304 2,458 
Total NPAs and accruing loans 90+ days past due$11,842 $11,792 $12,226 $12,561 $12,590 
Ratio of total nonaccrual loans to total loans0.21 %0.21 %0.22 %0.19 %0.19 %
Ratio of total NPAs to total assets0.15 0.15 0.16 0.14 0.14 
Ratio of total NPAs to total loans and OREO0.21 0.21 0.22 0.19 0.19 
Ratio of total NPAs and accruing loans 90+ days past due to total loans and OREO0.22 0.22 0.23 0.23 0.23 
Quarter-to-quarter changes in NPAs:    
Balance at beginning of quarter$11,018 $11,597 $10,257 $10,132 $7,008 
Additions2,397 1,436 3,484 1,920 4,792 
Reductions:  
Payments(614)(763)(602)(363)(263)
Return to accrual status(558)(71)(354)(27)(198)
Charge-offs, valuation and other adjustments(1,158)(1,181)(1,188)(1,405)(1,207)
Total reductions(2,330)(2,015)(2,144)(1,795)(1,668)
Balance at end of quarter$11,085 $11,018 $11,597 $10,257 $10,132 



CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Allowance for Credit Losses on Loans
(Unaudited)TABLE 8
 
 Three Months Ended
 Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,
(Dollars in thousands)20252024202420242024
Allowance for credit losses ("ACL") on loans:   
Balance at beginning of period$59,182 $61,647 $62,225 $63,532 $63,934 
Provision for credit losses on loans3,905 1,353 3,040 2,448 4,121 
Charge-offs:
Commercial and industrial(580)(1,113)(663)(519)(682)
Real estate:
Residential mortgage— — (99)(284)— 
Consumer(2,977)(3,727)(3,956)(4,345)(4,838)
Total charge-offs(3,557)(4,840)(4,718)(5,148)(5,520)
Recoveries:   
Commercial and industrial171 158 158 130 90 
Real estate:
Residential mortgage10 11 8 9 8 
Home equity3 — — — 6 
Consumer755 853 934 1,254 893 
Total recoveries939 1,022 1,100 1,393 997 
Net charge-offs
(2,618)(3,818)(3,618)(3,755)(4,523)
Balance at end of period$60,469 $59,182 $61,647 $62,225 $63,532 
Average loans, net of deferred fees and costs$5,311,610 $5,315,802 $5,330,810 $5,385,829 $5,400,558 
Ratio of annualized net charge-offs to average loans0.20 %0.29 %0.27 %0.28 %0.34 %
Ratio of ACL to total loans1.13 1.11 1.15 1.16 1.18 



CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)TABLE 9

To supplement our consolidated financial information, the Company uses certain non-GAAP financial measures, which are not meant to be considered in isolation or as a substitute for comparable GAAP. The Company believes these non-GAAP financial measures provide useful information to investors and others, which excludes transactions that are not meaningful in comparison to our past operating performance or not reflective of ongoing financial results. The Company believes that these measures offer a supplemental measure for period-to-period comparisons and can be used to evaluate our historical and prospective financial performance. These non-GAAP financial measures may not be comparable to similarly entitled measures reported by other companies.

The following reconciling adjustment from GAAP or reported financial measures to non-GAAP adjusted financial measures is limited to the pre-tax loss on sales of investment securities related to an investment portfolio repositioning of $9.9 million in the three months ended December 31, 2024. Management does not consider the transaction to be representative of the Company's core operating performance. The income tax effect was calculated assuming a 23% effective tax rate. There were no reconciling adjustments from GAAP to non-GAAP during the three months ended March 31, 2025 and 2024.

Three Months Ended
March 31, 2025December 31, 2024March 31, 2024
(dollars in thousands,GAAPGAAPNon-GAAPGAAP
except per share data)ReportedReportedAdjustedReported
Financial measures:
Net income$17,760 $11,345 $18,994 $12,945 
Diluted earnings per share ("EPS")$0.65 $0.42 $0.70 $0.48 
Pre-provision net revenue (non-GAAP)$26,723 $14,221 $24,155 $20,855 
Efficiency ratio (non-GAAP)61.16 %75.65 %64.65 %66.05 %
Return on average assets ("ROA")0.96 %0.62 %1.03 %0.70 %
Return on average shareholders' equity ("ROE")13.04 %8.37 %13.82 %10.33 %
As of March 31, 2025, December 31, 2024, and March 31, 2024:
Tangible common equity ("TCE") ratio (non-GAAP)7.53 %7.21 %7.33 %6.83 %



CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)TABLE 9 (CONTINUED)

The following table presents a recalculation of the non-GAAP adjusted net income and adjusted EPS, which excludes the aforementioned reconciling adjustments, for the periods presented.

Three Months Ended
(dollars in thousands, except per share data)March 31, 2025December 31, 2024March 31, 2024
GAAP net income$17,760 $11,345 $12,945 
Add: Pre-tax net loss related to an investment portfolio repositioning— 9,934 — 
Less: Income tax effect (assumes 23% ETR)— (2,285)— 
Adjusted net income (non-GAAP)$17,760 $18,994 $12,945 
Diluted weighted average shares outstanding27,213,406 27,221,121 27,099,101 
GAAP EPS$0.65 $0.42 $0.48 
Add: Total adjustments, net of tax (non-GAAP)— 0.28 — 
Adjusted EPS (non-GAAP)$0.65 $0.70 $0.48 

The Company believes that pre-provision net revenue ("PPNR"), a non-GAAP financial measure, is useful as a tool to help evaluate the ability to provide for credit costs through operations. The following table presents a recalculation of the PPNR and non-GAAP adjusted PPNR for the periods presented.

Three Months Ended
(dollars in thousands)March 31, 2025December 31, 2024March 31, 2024
GAAP net income$17,760 $11,345 $12,945 
Add: Income tax expense4,791 2,058 3,974 
GAAP pre-tax income22,551 13,403 16,919 
Add: Provision for credit losses4,172 818 3,936 
Pre-provision net revenue ("PPNR") (non-GAAP)26,723 14,221 20,855 
Add: Total pre-tax adjustments (non-GAAP)— 9,934 — 
Adjusted PPNR (non-GAAP)$26,723 $24,155 $20,855 



CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)TABLE 9 (CONTINUED)

A key measure of operating efficiency tracked by the Company is the efficiency ratio, which is calculated by dividing total other operating expenses by total pre-provision revenue (net interest income plus total other operating income). The Company believes that the efficiency ratio, a non-GAAP financial measure, provides useful supplemental information that is important to a proper understanding of its business results and operating efficiency. The Company's efficiency ratio should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to the efficiency ratio presented by other companies. The following table sets forth a reconciliation to our efficiency ratio and adjusted efficiency ratio, which excludes the aforementioned reconciling adjustments, for the periods presented:

Three Months Ended
(dollars in thousands)March 31, 2025December 31, 2024March 31, 2024
Total other operating expense$42,072 $44,177 $40,576 
Total other operating income$11,096 $2,624 $11,244 
Add: Net loss related to an investment portfolio repositioning— 9,934 — 
Adjusted total other operating income (non-GAAP)$11,096 $12,558 $11,244 
Net interest income$57,699 $55,774 $50,187 
Total other operating income11,096 2,624 11,244 
Total revenue$68,795 $58,398 $61,431 
Net interest income$57,699 $55,774 $50,187 
Adjusted total other operating income (non-GAAP)11,096 12,558 11,244 
Adjusted total revenue (non-GAAP)$68,795 $68,332 $61,431 
Efficiency ratio (non-GAAP)61.16 %75.65 %66.05 %
Less: Total pre-tax adjustments (non-GAAP)— %(11.00)%— %
Adjusted efficiency ratio (non-GAAP)61.16 %64.65 %66.05 %



CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES
Reconciliation of Non-GAAP Financial Measures
(Unaudited)TABLE 9 (CONTINUED)

The following table presents a recalculation of the non-GAAP adjusted ROA and adjusted ROE, which excludes the aforementioned reconciling adjustments, for the periods presented.

Three Months Ended
(dollars in thousands)March 31, 2025December 31, 2024March 31, 2024
Average assets$7,388,783 $7,377,398 $7,449,661 
Add: Total adjustments, net of tax (non-GAAP)— 7,649 — 
Adjusted average assets (non-GAAP)$7,388,783 $7,385,047 $7,449,661 
ROA (GAAP net income to average assets)0.96 %0.62 %0.70 %
Add: Total adjustments, net of tax (non-GAAP)— 0.41 — 
Adjusted ROA (non-GAAP)0.96 %1.03 %0.70 %
Average shareholders' equity$544,888 $542,135 $501,120 
Add: Total adjustments, net of tax (non-GAAP)— 7,649 — 
Adjusted average shareholders' equity (non-GAAP)$544,888 $549,784 $501,120 
ROE (GAAP net income to average shareholders' equity)13.04 %8.37 %10.33 %
Add: Total adjustments, net of tax (non-GAAP)— 5.45 — 
Adjusted ROE (non-GAAP)13.04 %13.82 %10.33 %

The following table presents a recalculation of the tangible common equity ("TCE") ratio, a non-GAAP financial measure, which is calculated by dividing tangible common equity by tangible assets, and the non-GAAP TCE ratio, which excludes the aforementioned reconciling adjustments, as of the dates presented.

(dollars in thousands)March 31, 2025December 31, 2024March 31, 2024
Total shareholders' equity$557,376 $538,385 $507,203 
Less: Intangible assets— — (1,437)
TCE557,376 538,385 505,766 
Add: Total adjustments, net of tax (non-GAAP)— 10,011 — 
Adjusted TCE (non-GAAP)$557,376 $548,396 $505,766 
Total assets$7,405,239 $7,472,096 $7,409,999 
Less: Intangible assets— — (1,437)
Tangible assets7,405,239 7,472,096 7,408,562 
Add: Total adjustments, net of tax (non-GAAP)— 10,011 — 
Adjusted tangible assets (non-GAAP)$7,405,239 $7,482,107 $7,408,562 
TCE ratio (non-GAAP) (TCE to tangible assets)7.53 %7.21 %6.83 %
Add: Total adjustments, net of tax (non-GAAP)— 0.12 — 
Adjusted TCE ratio (non-GAAP)7.53 %7.33 %6.83 %