Central Pacific Financial Reports Third Quarter 2025 Earnings of $18.6 Million

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 $18.6 million, or $0.69 per fully diluted earnings share ("EPS"), for the third quarter of 2025. This compares to net income of $18.3 million, or EPS of $0.67, in the prior quarter and $13.3 million, or EPS of $0.49, in the same quarter last year. Results for the third quarter of 2025 included $1.5 million in pre-tax expenses related to the consolidation of the Company's former operations center into its main office. Excluding this item, adjusted net income (non-GAAP) for the third quarter of 2025 was $19.7 million, or EPS (non-GAAP) of $0.73.

“Central Pacific delivered another strong quarter, highlighted by continued margin expansion, solid earnings, and growth in both loans and deposits,” said Arnold Martines, Chairman, President and CEO. “Our net interest margin increased to 3.49%, reflecting disciplined balance sheet management and improved asset yields. With our strong earnings and capital position, in the fourth quarter we will redeem our subordinated debt and increase our quarterly cash dividend. Additionally, our new partnership with Kyoto Shinkin Bank marks an exciting step forward in deepening Hawaii–Japan business ties and expanding our international reach. These achievements reflect our continued positive momentum and commitment to providing exceptional service to our customers, and delivering long-term value to our shareholders.”

Earnings Highlights

Net interest income for the third quarter of 2025 totaled $61.3 million, which increased by $1.5 million, or 2.5% from the prior quarter, and increased by $7.5 million, or 13.8%, compared to the same quarter last year. Net interest margin ("NIM") for the third quarter of 2025 was 3.49%, an increase of 5 basis points ("bp" or "bps") from the prior quarter, and an increase of 42 bps from the same quarter last year. The sequential quarter increase in net interest income and NIM was primarily driven by higher average yields earned on loans, up 5 bps, and investment securities, up 3 bps, partially offset by a 2 bps increase in average rates paid on interest-bearing deposits.

The Company recorded a provision for credit losses of $4.2 million in the third quarter of 2025, compared to a provision of $5.0 million in the prior quarter, and a provision of $2.8 million in the same quarter last year. The current quarter provision for credit losses included $3.4 million for credit losses on loans and $0.8 million for off-balance sheet exposures. The decrease from prior quarter was primarily driven by lower net charge-offs.

Other operating income for the third quarter of 2025 totaled $13.5 million, compared to $13.0 million in the prior quarter, and $12.7 million in the same quarter last year. The increase was largely driven by a $0.5 million increase in investment services income, included in other service charges and fees.

Other operating expense for the third quarter of 2025 totaled $47.0 million, compared to $43.9 million in the prior quarter, and $46.7 million in the same quarter last year. The increase was primarily attributable to higher salaries and employee benefits of $2.1 million related to incentive accruals and commissions, and $1.5 million in one-time expenses related to the operations center consolidation.

The efficiency ratio was 62.84% in the third quarter of 2025, compared to 60.36% in the prior quarter and 70.12% in the same quarter last year. Excluding the $1.5 million in expenses related to the operations center consolidation, the adjusted efficiency ratio (non-GAAP) was 60.81% for the third quarter of 2025.

The effective tax rate for the third quarter of 2025 was 21.4%, compared to 23.5% in the prior quarter, and 22.0% in the same quarter last year. The decrease in the Company's effective tax rate in the third quarter of 2025 was primarily attributable to the impact of the donation of real estate in connection with the consolidation of its operations center, and an increase in projected tax-exempt income.

Balance Sheet Highlights

As of September 30, 2025, total assets were $7.42 billion, which increased by $51.9 million, or 0.7% from $7.37 billion at June 30, 2025, and an increase of $6.0 million, or 0.08% from $7.42 billion at September 30, 2024.

Total loans, net of deferred fees and costs, were $5.37 billion at September 30, 2025, which increased by $77.4 million, or 1.5% from $5.29 billion at June 30, 2025, and increased by $24.6 million, or 0.5% from $5.34 billion at September 30, 2024. The average yield earned on loans during the third quarter of 2025 was 5.01%, compared to 4.96% in the prior quarter and 4.89% in the same quarter last year.

Total deposits were $6.58 billion at September 30, 2025, which increased by $32.7 million or 0.5% from $6.54 billion at June 30, 2025, and decreased by $5.3 million, or 0.1% from $6.58 billion at September 30, 2024. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $5.98 billion at September 30, 2025. Core deposits increased by $24.6 million, or 0.4% from $5.96 billion at June 30, 2025, and increased by $15.2 million, or 0.3% from $5.97 billion at September 30, 2024. The average rate paid on total deposits during the third quarter of 2025 was 1.02%, compared to 1.02% in the prior quarter, and 1.32% in the same quarter last year.

Asset Quality

Nonperforming assets totaled $14.3 million, or 0.19% of total assets at September 30, 2025, compared to $14.9 million, or 0.20% of total assets at June 30, 2025 and $11.6 million, or 0.16% of total assets at September 30, 2024.

Net charge-offs in the third quarter of 2025 totaled $2.7 million, compared to net charge-offs of $4.7 million in the prior quarter, and net charge-offs of $3.6 million in the same quarter last year. The decrease in net charge-offs was primarily due to a $2.0 million full charge-off of a commercial and industrial loan during the second quarter of 2025. On an annualized basis, net charge-offs as a percentage of average loans was 0.20% in the third quarter of 2025, compared to 0.35% in the prior quarter, and 0.27% in the same quarter last year.

The allowance for credit losses on loans was 1.13% of total loans as of September 30, 2025, compared to 1.13% at June 30, 2025, and 1.15% at September 30, 2024.

Capital

Total shareholders' equity at September 30, 2025 was $588.1 million, compared to $568.9 million at June 30, 2025 and $543.7 million at September 30, 2024.

During the third quarter of 2025, the Company repurchased 78,255 shares of common stock at a total cost of $2.3 million, or an average price of $29.95 per share. As of September 30, 2025, $23.0 million remained available under the Company's share repurchase authorization.

The Company's regulatory capital ratios remained strong, with leverage ratio of 9.7%, a Common Equity Tier 1 ratio of 12.6%, a Tier 1 risk-based capital ratio of 13.5%, and a total risk-based capital ratio of 15.7% at September 30, 2025.

On October 1, 2025, the Company notified holders of its 4.75% fixed-to-floating rate subordinated notes due 2030, that it would be redeeming the notes in full on the November 1, 2025 call date. These notes, which currently total $55.0 million in principal outstanding, will be redeemed at par.

On October 28, 2025, the Board of Directors declared a quarterly cash dividend of $0.28 per share. The dividend represents an increase of 3.7% from $0.27 per share in the third quarter of 2025 and will be payable on December 15, 2025, to shareholders of record as of November 28, 2025.

Strategic Partnership

On October 6, 2025, Central Pacific Bank ("CPB") entered into a strategic partnership with The Kyoto Shinkin Bank ("KSB"), with the signing of a Memorandum of Understanding, to create a stronger economic bridge between Hawaii and Japan. The partnership will expand business opportunities and connect customers of both institutions across the Pacific for the benefit of both banks.

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 third 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 November 28, 2025, 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 $7.42 billion in assets as of September 30, 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

CPF Listed NYSE

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 statement 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

Nine Months Ended

(Dollars in thousands,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

except for per share amounts)

2025

2024

2025

2024

CONDENSED INCOME STATEMENT

Net interest income

61,301

59,796

57,699

55,774

53,851

178,796

155,959

Provision for credit losses

4,157

4,987

4,172

818

2,833

13,316

9,008

Total other operating income

13,507

13,013

11,096

2,624

12,734

37,616

36,099

Total other operating expense

47,009

43,946

42,072

44,177

46,687

133,027

128,414

Income tax expense

5,068

5,605

4,791

2,058

3,760

15,464

12,569

Net income

18,574

18,271

17,760

11,345

13,305

54,605

42,067

Basic earnings per share

0.69

0.68

0.66

0.42

0.49

2.02

1.55

Diluted earnings per share

0.69

0.67

0.65

0.42

0.49

2.01

1.55

Dividends declared per share

0.27

0.26

0.81

0.78

PERFORMANCE RATIOS

Return on average assets (ROA) [1]

1.01

1.00

0.96

0.62

0.72

0.99

0.76

Return on average equity (ROE) [1]

12.89

13.04

8.37

10.02

12.99

10.91

Average equity to average assets

7.85

7.66

7.37

7.35

7.23

7.63

6.97

Efficiency ratio [2]

62.84

60.36

61.16

75.65

70.12

61.47

66.86

Net interest margin (NIM) [1]

3.49

3.44

3.31

3.17

3.07

3.41

2.95

Dividend payout ratio [3]

39.13

40.30

41.54

61.90

53.06

40.30

50.32

SELECTED AVERAGE BALANCES

Average loans, including loans held for sale

5,332,656

5,307,946

5,311,610

5,315,802

5,330,810

5,317,481

5,372,247

Average interest-earning assets

7,011,753

6,985,097

7,054,488

7,052,296

7,022,910

7,016,957

7,065,075

Average assets

7,341,281

7,314,144

7,388,783

7,377,398

7,347,403

7,347,895

7,378,479

Average deposits

6,509,692

6,503,463

6,561,100

6,546,616

6,535,422

6,524,563

6,579,174

Average interest-bearing liabilities

4,807,225

4,807,669

4,914,398

4,906,623

4,904,460

4,842,703

4,941,530

Average equity

576,531

560,248

544,888

542,135

530,928

560,671

513,914

[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)

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

2025

2024

REGULATORY CAPITAL RATIOS

Central Pacific Financial Corp.

Leverage ratio

9.7

9.6

9.4

9.3

9.5

Common equity tier 1 capital ratio

12.6

12.4

12.3

12.1

Tier 1 risk-based capital ratio

13.5

13.4

13.2

13.1

Total risk-based capital ratio

15.7

15.8

15.6

15.4

15.3

Central Pacific Bank

Leverage ratio

10.2

10.1

9.8

9.7

9.8

Common equity tier 1 capital ratio

14.1

14.0

13.8

13.6

Tier 1 risk-based capital ratio

14.1

14.0

13.8

13.6

Total risk-based capital ratio

15.3

15.2

14.9

14.8

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(dollars in thousands, except for per share amounts)

2025

2024

BALANCE SHEET

Total loans, net of deferred fees and costs

5,367,202

5,289,809

5,334,547

5,332,852

5,342,609

Total assets

7,421,478

7,369,567

7,405,239

7,472,096

7,415,430

Total deposits

6,577,684

6,544,989

6,596,048

6,644,011

6,583,013

Long-term debt

131,527

131,466

131,405

156,345

156,284

Total equity

588,066

568,874

557,376

538,385

543,725

Total equity to total assets

7.92

7.72

7.53

7.21

7.33

Tangible common equity to tangible assets [4]

7.92

7.72

7.53

7.21

7.31

ASSET QUALITY

Allowance for credit losses (ACL)

60,393

59,611

60,469

59,182

61,647

Nonaccrual loans

14,319

14,895

11,085

11,018

11,597

Non-performing assets (NPA)

14,319

14,895

11,085

11,018

11,597

Ratio of ACL to total loans

1.13

1.11

1.15

Ratio of NPA to total assets

0.19

0.20

0.15

0.16

PER SHARE OF COMMON STOCK OUTSTANDING

Book value per common share

21.86

21.08

20.60

19.89

20.09

Closing market price per common share

30.34

28.03

27.04

29.05

29.51

[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

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(Dollars in thousands, except share data)

2025

2024

ASSETS

Cash and due from financial institutions

102,859

110,935

106,670

77,774

100,064

Interest-bearing deposits in other financial institutions

207,034

206,035

170,226

303,167

226,505

Investment securities:

Debt securities available-for-sale, at fair value

758,683

765,213

780,379

737,658

723,453

Debt securities held-to-maturity, at amortized cost; fair value of: $500,859 at September 30, 2025, $499,833 at June 30, 2025, $511,717 at March 31, 2025, $506,681 at December 31, 2024, and $546,990 at September 30, 2024

570,886

580,476

589,688

596,930

606,117

Total investment securities

1,329,569

1,345,689

1,370,067

1,334,588

1,329,570

Loans held for sale

1,557

—

2,788

5,662

1,609

Loans, net of deferred fees and costs

5,367,202

5,289,809

5,334,547

5,332,852

5,342,609

Less: allowance for credit losses

(60,393

)

(59,611

)

(60,469

)

(59,182

)

(61,647

)

Loans, net of allowance for credit losses

5,306,809

5,230,198

5,274,078

5,273,670

5,280,962

Premises and equipment, net

100,992

103,657

103,490

104,342

104,575

Accrued interest receivable

25,232

23,518

24,743

23,378

23,942

Investment in unconsolidated entities

52,987

49,370

50,885

52,417

54,836

Mortgage servicing rights

8,459

8,436

8,418

8,473

8,513

Bank-owned life insurance

179,743

177,639

176,846

176,216

175,914

Federal Home Loan Bank of Des Moines ("FHLB") and Federal Reserve Bank ("FRB") stock

25,215

24,816

24,163

6,929

Right-of-use lease assets

25,570

30,693

29,829

30,824

32,192

Other assets

55,452

58,581

63,036

74,656

69,819

Total assets

7,421,478

7,369,567

7,405,239

7,472,096

7,415,430

LIABILITIES

Deposits:

Noninterest-bearing demand

1,903,614

1,938,226

1,854,241

1,888,937

1,838,009

Interest-bearing demand

1,340,725

1,336,620

1,368,519

1,338,719

1,255,382

Savings and money market

2,292,881

2,242,122

2,316,416

2,329,170

2,336,323

Time

1,040,464

1,028,021

1,056,872

1,087,185

1,153,299

Total deposits

6,577,684

6,544,989

6,596,048

6,644,011

6,583,013

Long-term debt, net of unamortized debt issuance costs

131,527

131,466

131,405

156,345

156,284

Lease liabilities

26,288

31,981

31,057

32,025

33,807

Accrued interest payable

8,604

8,755

8,757

10,051

12,980

Other liabilities

89,309

83,502

80,596

91,279

85,621

Total liabilities

6,833,412

6,800,693

6,847,863

6,933,711

6,871,705

EQUITY

Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024, and September 30, 2024

—

Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 26,903,512 at September 30, 2025, 26,981,436 at June 30, 2025, 27,061,589 at March 31, 2025, 27,065,570 at December 31, 2024, and 27,064,501 at September 30, 2024

397,479

399,823

402,400

404,494

Additional paid-in capital

106,675

106,033

104,849

105,054

104,794

Retained earnings

175,968

164,676

153,692

143,259

138,951

Accumulated other comprehensive loss

(92,056

)

(101,658

)

(103,565

)

(114,422

)

(104,514

)

Total equity

588,066

568,874

557,376

538,385

543,725

Total liabilities and equity

7,421,478

7,369,567

7,405,239

7,472,096

7,415,430

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

TABLE 3

Three Months Ended

Nine Months Ended

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(Dollars in thousands, except per share data)

2025

2024

2025

2024

Interest income:

Interest and fees on loans

67,222

65,668

64,119

65,482

65,469

197,009

192,710

Interest and dividends on investment securities:

Taxable investment securities

9,776

9,871

9,801

8,626

8,975

29,448

24,652

Tax-exempt investment securities

709

708

723

551

2,126

1,804

Interest on deposits in other financial institutions

1,857

1,484

2,254

3,004

2,775

5,595

8,589

Dividend income on FHLB and FRB stock

395

388

324

125

127

1,107

384

Total interest income

79,959

78,120

77,206

77,960

77,897

235,285

228,139

Interest expense:

Interest on deposits:

Interest-bearing demand

490

443

452

686

484

1,385

1,473

Savings and money market

8,898

8,414

8,862

9,388

10,235

26,174

27,655

Time

7,410

7,616

8,107

9,881

11,040

23,133

36,203

Interest on FHLB advances and other short-term borrowings

—

Interest on long-term debt

1,860

1,851

2,086

2,231

2,287

5,797

6,848

Total interest expense

18,658

18,324

19,507

22,186

24,046

56,489

72,180

Net interest income

61,301

59,796

57,699

55,774

53,851

178,796

155,959

Provision for credit losses

4,157

4,987

4,172

818

2,833

13,316

9,008

Net interest income after provision for credit losses

57,144

54,809

53,527

54,956

51,018

165,480

146,951

Other operating income:

Mortgage banking income

958

744

597

913

822

2,299

2,475

Service charges on deposit accounts

2,330

2,124

2,147

2,251

2,167

6,601

6,405

Other service charges and fees

6,472

5,957

5,766

5,476

5,947

18,195

17,077

Income from fiduciary activities

1,547

1,501

1,624

1,430

1,447

4,672

4,331

Income from bank-owned life insurance

1,879

2,260

497

1,966

1,897

4,636

4,653

Net loss on sales of investment securities

(30

)

—

(9,934

)

—

(30

)

—

Other

351

427

465

522

454

1,243

1,158

Total other operating income

13,507

13,013

11,096

2,624

12,734

37,616

36,099

Other operating expense:

Salaries and employee benefits

24,749

22,696

21,819

21,661

22,299

69,264

64,280

Net occupancy

4,598

4,253

4,392

4,192

4,612

13,243

13,809

Computer software

5,151

5,320

4,714

4,757

4,590

15,185

13,258

Legal and professional services

2,669

2,873

2,798

2,504

2,460

8,340

7,286

Equipment

867

950

1,082

904

972

2,899

2,977

Advertising

730

832

887

911

889

2,449

2,704

Communication

791

901

1,033

943

740

2,725

2,234

Other

7,454

6,121

5,347

8,305

10,125

18,922

21,866

Total other operating expense

47,009

43,946

42,072

44,177

46,687

133,027

128,414

Income before income taxes

23,642

23,876

22,551

13,403

17,065

70,069

54,636

Income tax expense

5,068

5,605

4,791

2,058

3,760

15,464

12,569

Net income

18,574

18,271

17,760

11,345

13,305

54,605

42,067

Per common share data:

Basic earnings per share

0.69

0.68

0.66

0.42

0.49

2.02

1.55

Diluted earnings per share

0.69

0.67

0.65

0.42

0.49

2.01

1.55

Cash dividends declared

0.27

0.26

0.81

0.78

Basic weighted average shares outstanding

26,968,163

26,988,169

27,087,154

27,065,047

27,064,035

27,014,059

27,054,737

Diluted weighted average shares outstanding

27,083,280

27,069,677

27,213,406

27,221,121

27,194,625

27,118,824

27,137,985

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Average Balances, Interest Income & Expense, Yields and Rates (Taxable Equivalent)

(Unaudited)

TABLE 4

Three Months Ended

September 30, 2025

June 30, 2025

September 30, 2024

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

167,247

4.41

1,857

134,270

4.43

1,484

203,657

5.42

2,775

Investment securities:

Taxable

1,348,314

2.90

9,776

1,379,213

2.86

9,871

1,340,347

2.68

8,975

Tax-exempt [1]

138,470

2.59

898

139,103

2.58

897

141,168

1.98

697

Total investment securities

1,486,784

2.87

10,674

1,518,316

2.84

10,768

1,481,515

2.61

9,672

Loans, including loans held for sale

5,332,656

5.01

67,222

5,307,946

4.96

65,668

5,330,810

4.89

65,469

FHLB and FRB stock

25,066

6.30

395

24,565

6.33

388

6,928

7.31

127

Total interest-earning assets

7,011,753

4.55

80,148

6,985,097

4.49

78,308

7,022,910

4.43

78,043

Noninterest-earning assets

329,528

329,047

324,493

Total assets

7,341,281

7,314,144

7,347,403

LIABILITIES AND EQUITY

Interest-bearing liabilities:

Interest-bearing demand deposits

1,358,837

0.14

490

1,357,049

0.13

443

1,267,135

0.15

484

Savings and money market deposits

2,293,452

1.54

8,898

2,275,799

1.48

8,414

2,298,853

1.77

10,235

Time deposits up to $250,000

437,192

2.28

2,509

439,738

2.32

2,546

534,497

3.15

4,238

Time deposits over $250,000

586,251

3.32

4,901

603,652

3.37

5,070

647,728

4.18

6,802

Total interest-bearing deposits

4,675,732

1.43

16,798

4,676,238

1.41

16,473

4,748,213

1.82

21,759

Long-term debt

131,493

5.61

1,860

131,431

5.65

1,851

156,247

5.82

2,287

Total interest-bearing liabilities

4,807,225

1.54

18,658

4,807,669

1.53

18,324

4,904,460

1.95

24,046

Noninterest-bearing deposits

1,833,960

1,827,225

1,787,209

Other liabilities

123,565

119,002

124,806

Total liabilities

6,764,750

6,753,896

6,816,475

Total equity

576,531

560,248

530,928

Total liabilities and equity

7,341,281

7,314,144

7,347,403

Net interest income (taxable-equivalent)

61,490

59,984

53,997

Taxable-equivalent adjustment

(189

)

(188

)

(146

)

Net interest income (GAAP)

61,301

59,796

53,851

Interest rate spread

3.01

2.96

2.48

Net interest margin (taxable-equivalent)

3.49

3.44

3.07

[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

Nine Months Ended

September 30, 2025

September 30, 2024

Average

(Dollars in thousands)

Balance

Yield/Rate

Interest

Balance

Yield/Rate

Interest

ASSETS

Interest-earning assets:

Interest-bearing deposits in other financial institutions

169,066

4.42

5,595

210,464

5.45

8,589

Investment securities:

Taxable

1,367,968

2.87

29,448

1,333,394

2.47

24,652

Tax-exempt [1]

139,050

2.58

2,691

142,085

2.14

2,284

Total investment securities

1,507,018

2.84

32,139

1,475,479

2.43

26,936

Loans, including loans held for sale

5,317,481

4.95

197,009

5,372,247

4.79

192,710

FHLB and FRB stock

23,392

6.31

1,107

6,885

7.43

384

Total interest-earning assets

7,016,957

4.49

235,850

7,065,075

4.32

228,619

Noninterest-earning assets

330,938

313,404

Total assets

7,347,895

7,378,479

LIABILITIES AND EQUITY

Interest-bearing liabilities:

Interest-bearing demand deposits

1,357,095

0.14

1,385

1,279,256

0.15

1,473

Savings and money market deposits

2,304,708

1.52

26,174

2,246,478

1.64

27,655

Time deposits up to $250,000

444,726

2.37

7,887

544,823

3.22

13,125

Time deposits over $250,000

597,876

3.41

15,246

714,763

4.31

23,078

Total interest-bearing deposits

4,704,405

1.44

50,692

4,785,320

1.82

65,331

FHLB advances and other short-term borrowings

—

5.60

Long-term debt

138,298

5.60

5,797

156,188

5.86

6,848

Total interest-bearing liabilities

4,842,703

1.56

56,489

4,941,530

1.95

72,180

Noninterest-bearing deposits

1,820,158

1,793,854

Other liabilities

124,363

129,181

Total liabilities

6,787,224

6,864,565

Total equity

560,671

513,914

Total liabilities and equity

7,347,895

7,378,479

Net interest income (taxable-equivalent)

179,361

156,439

Taxable-equivalent adjustment

(565

)

(480

)

Net interest income (GAAP)

178,796

155,959

Interest rate spread

2.93

2.37

Net interest margin (taxable-equivalent)

3.41

2.95

[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 6

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(Dollars in thousands)

2025

2024

HAWAII:

Commercial and industrial

464,797

455,372

461,020

430,167

411,209

Construction

176,067

172,382

159,081

145,182

134,043

Residential mortgage

1,839,535

1,851,690

1,870,239

1,892,520

1,897,919

Home equity

610,889

627,834

655,237

676,982

697,123

Commercial mortgage

1,169,568

1,161,244

1,174,573

1,165,060

1,157,625

Consumer

223,065

224,085

219,941

274,712

277,849

Total loans, net of deferred fees and costs

4,483,921

4,492,607

4,540,091

4,584,623

4,575,768

Less: Allowance for credit losses

(44,762

)

(44,372

)

(45,937

)

(45,967

)

(47,789

)

Loans, net of allowance for credit losses

4,439,159

4,448,235

4,494,154

4,538,656

4,527,979

U.S. MAINLAND: [1]

Commercial and industrial

144,017

152,758

173,600

176,769

188,238

Construction

41,543

17,626

1,011

24,083

Commercial mortgage

443,619

379,279

377,866

335,620

312,685

Consumer

254,102

247,539

241,979

235,811

241,835

Total loans, net of deferred fees and costs

883,281

797,202

794,456

748,229

766,841

Less: Allowance for credit losses

(15,631

)

(15,239

)

(14,532

)

(13,215

)

(13,858

)

Loans, net of allowance for credit losses

867,650

781,963

779,924

735,014

752,983

TOTAL:

Commercial and industrial

608,814

608,130

634,620

606,936

599,447

Construction

217,610

190,008

160,092

145,211

158,126

Residential mortgage

1,839,535

1,851,690

1,870,239

1,892,520

1,897,919

Home equity

610,889

627,834

655,237

676,982

697,123

Commercial mortgage

1,613,187

1,540,523

1,552,439

1,500,680

1,470,310

Consumer

477,167

471,624

461,920

510,523

519,684

Total loans, net of deferred fees and costs

5,367,202

5,289,809

5,334,547

5,332,852

5,342,609

Less: Allowance for credit losses

(60,393

)

(59,611

)

(60,469

)

(59,182

)

(61,647

)

Loans, net of allowance for credit losses

5,306,809

5,230,198

5,274,078

5,273,670

5,280,962

[1] U.S. Mainland includes territories of the United States.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Deposits

(Unaudited)

TABLE 7

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(Dollars in thousands)

2025

2024

Noninterest-bearing demand

1,903,614

1,938,226

1,854,241

1,888,937

1,838,009

Interest-bearing demand

1,340,725

1,336,620

1,368,519

1,338,719

1,255,382

Savings and money market

2,292,881

2,242,122

2,316,416

2,329,170

2,336,323

Time deposits up to $250,000

444,005

439,687

436,437

483,378

536,316

Core deposits

5,981,225

5,956,655

5,975,613

6,040,204

5,966,030

Other time deposits greater than $250,000

458,339

459,945

475,861

500,693

492,221

Government time deposits

138,120

128,389

144,574

103,114

124,762

Total time deposits greater than $250,000

596,459

588,334

620,435

603,807

616,983

Total deposits

6,577,684

6,544,989

6,596,048

6,644,011

6,583,013

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Nonperforming Assets and Accruing Loans 90+ Days Past Due

(Unaudited)

TABLE 8

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(Dollars in thousands)

2025

2024

Nonaccrual loans:

Commercial and industrial

357

110

531

414

376

Real estate:

Residential mortgage

11,413

12,327

9,199

9,044

9,680

Home equity

2,119

1,889

746

952

915

Commercial mortgage

—

Consumer

430

569

609

608

626

Total nonaccrual loans

14,319

14,895

11,085

11,018

11,597

Other real estate owned ("OREO")

—

Total nonperforming assets ("NPAs")

14,319

14,895

11,085

11,018

11,597

Accruing loans 90+ days past due:

Real estate:

Residential mortgage

1,159

1,625

—

323

Home equity

—

135

Consumer

349

418

670

373

481

Total accruing loans 90+ days past due

1,508

2,064

757

774

629

Total NPAs and accruing loans 90+ days past due

15,827

16,959

11,842

11,792

12,226

Ratio of total nonaccrual loans to total loans

0.27

0.28

0.21

0.22

Ratio of total NPAs to total assets

0.19

0.20

0.15

0.16

Ratio of total NPAs to total loans and OREO

0.27

0.28

0.21

0.22

Ratio of total NPAs and accruing loans 90+ days past due to total loans and OREO

0.29

0.32

0.22

0.23

Quarter-to-quarter changes in NPAs:

Balance at beginning of quarter

14,895

11,085

11,018

11,597

10,257

Additions

838

5,879

2,397

1,436

3,484

Reductions:

Payments

(286

)

(585

)

(614

)

(763

)

(602

)

Return to accrual status

(821

)

(861

)

(558

)

(71

)

(354

)

Charge-offs, valuation adjustments and other reductions

(307

)

(623

)

(1,158

)

(1,181

)

(1,188

)

Total reductions

(1,414

)

(2,069

)

(2,330

)

(2,015

)

(2,144

)

Balance at end of quarter

14,319

14,895

11,085

11,018

11,597

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Allowance for Credit Losses on Loans

(Unaudited)

TABLE 9

Three Months Ended

Nine Months Ended

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(Dollars in thousands)

2025

2024

2025

2024

Allowance for credit losses ("ACL") on loans:

Balance at beginning of period

59,611

60,469

59,182

61,647

62,225

59,182

63,934

Provision for credit losses on loans

3,440

3,810

3,905

1,353

3,040

11,155

9,609

Charge-offs:

Commercial and industrial

(1,071

)

(2,858

)

(580

)

(1,113

)

(663

)

(4,509

)

(1,864

)

Real estate:

Residential mortgage

—

(99

)

—

(383

)

Consumer

(2,824

)

(2,864

)

(2,977

)

(3,727

)

(3,956

)

(8,665

)

(13,139

)

Total charge-offs

(3,895

)

(5,722

)

(3,557

)

(4,840

)

(4,718

)

(13,174

)

(15,386

)

Recoveries:

Commercial and industrial

204

195

171

158

570

378

Real estate:

Construction

—

Residential mortgage

Home equity

—

Consumer

1,016

840

755

853

934

2,611

3,081

Total recoveries

1,237

1,054

939

1,022

1,100

3,230

3,490

Net charge-offs

(2,658

)

(4,668

)

(2,618

)

(3,818

)

(3,618

)

(9,944

)

(11,896

)

Balance at end of period

60,393

59,611

60,469

59,182

61,647

60,393

61,647

Average loans, net of deferred fees and costs

5,332,656

5,307,946

5,311,610

5,315,802

5,330,810

5,317,481

5,372,247

Ratio of annualized net charge-offs to average loans

0.20

0.35

0.20

0.29

0.27

0.25

0.30

Ratio of ACL to total loans

1.13

1.11

1.15

1.13

1.15

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 during the three months ended September 30, 2025, and (2) pre-tax expenses of $3.1 million related to the evaluation and assessment of a strategic opportunity during 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

September 30, 2025

September 30, 2024

(dollars in thousands,

GAAP

Non-GAAP

GAAP

Non-GAAP

except per share data)

Reported

Adjustment

Adjusted

Reported

Adjustment

Adjusted

Financial measures:

Net income

18,574

1,167

19,741

13,305

2,362

15,667

Diluted earnings per share ("EPS")

0.69

0.04

0.73

0.49

0.09

0.58

Efficiency ratio (non-GAAP)

62.84

(2.03

60.81

70.12

(4.61

65.51

Return on average assets ("ROA")

1.01

0.07

1.08

0.72

0.13

0.85

Return on average equity ("ROE")

12.89

0.78

13.67

10.02

1.73

11.75

As of September 30, 2025 and 2024:

Tangible common equity ("TCE") ratio (non-GAAP)

7.92

0.02

7.94

7.31

0.03

7.34

Nine Months Ended September 30, 2025

Nine Months Ended September 30, 2024

(dollars in thousands,

Non-GAAP

except per share data)

Reported

Adjustment

Adjusted

Reported

Adjustment

Adjusted

Financial measures:

Net income

54,605

1,167

55,772

42,067

2,362

44,429

EPS

2.01

0.05

2.06

1.55

0.09

1.64

Efficiency ratio (non-GAAP)

61.47

(0.70

60.77

66.86

(1.60

65.26

ROA

0.99

0.02

1.01

0.76

0.04

0.80

ROE

12.99

0.26

13.25

10.91

0.61

11.52

As of September 30, 2025 and 2024:

TCE ratio (non-GAAP)

7.92

0.02

7.94

7.31

0.03

7.34

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 EPS for the periods indicated, excluding the reconciling adjustments discussed above.

Three Months Ended

Nine Months Ended

(dollars in thousands, except per share data)

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

GAAP net income

18,574

13,305

54,605

42,067

Add: Expenses related to the consolidation of operations center

1,516

—

1,516

—

Add: Expenses related to a strategic opportunity

—

3,068

—

3,068

Non-GAAP pre-tax adjustments

1,516

3,068

1,516

3,068

Less: Income tax effect (assumes 23% ETR)

(349

)

(706

)

(349

)

(706

)

Non-GAAP adjustments, net of tax

1,167

2,362

1,167

2,362

Adjusted net income (non-GAAP)

19,741

15,667

55,772

44,429

Diluted weighted average shares outstanding

27,083,280

27,194,625

27,118,824

27,137,985

GAAP EPS

0.69

0.49

2.01

1.55

Add: Non-GAAP adjustments, net of tax

0.04

0.09

0.05

0.09

Adjusted EPS (non-GAAP).

0.73

0.58

2.06

1.64

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

Nine Months Ended

(dollars in thousands)

Sep 30, 2025

Sep 30, 2024

Sep 30, 2025

Sep 30, 2024

Total other operating expense

47,009

46,687

133,027

128,414

Less: Expenses related to the consolidation of operations center

(1,516

)

—

(1,516

)

—

Less: Expenses related to a strategic opportunity

—

(3,068

)

—

(3,068

)

Non-GAAP other operating expense adjustments

(1,516

)

(3,068

)

(1,516

)

(3,068

)

Adjusted total other operating expense (non-GAAP)

45,493

43,619

131,511

125,346

Net interest income

61,301

53,851

178,796

155,959

Total other operating income

13,507

12,734

37,616

36,099

Total revenue

74,808

66,585

216,412

192,058

Efficiency ratio (non-GAAP)

62.84

70.12

61.47

66.86

Less: Non-GAAP pre-tax adjustments

(2.03

(4.61

(0.70

(1.60

Adjusted efficiency ratio (non-GAAP)

60.81

65.51

60.77

65.26

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

Nine Months Ended

(dollars in thousands)

September 30, 2025

September 30, 2024

September 30, 2025

September 30, 2024

Average assets

7,341,281

7,347,403

7,347,895

7,378,479

Add: Non-GAAP adjustments, net of tax

1,167

2,362

389

787

Adjusted average assets (non-GAAP)

7,342,448

7,349,765

7,348,284

7,379,266

ROA

1.01

0.72

0.99

0.76

Add: Non-GAAP adjustments, net of tax

0.07

0.13

0.02

0.04

Adjusted ROA (non-GAAP)

1.08

0.85

1.01

0.80

Average equity

576,531

530,928

560,671

513,914

Add: Non-GAAP adjustments, net of tax

1,167

2,362

389

787

Adjusted average equity (non-GAAP)

577,698

533,290

561,060

514,701

ROE

12.89

10.02

12.99

10.91

Add: Non-GAAP adjustments, net of tax

0.78

1.73

0.26

0.61

Adjusted ROE (non-GAAP)

13.67

11.75

13.25

11.52

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)

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Sep 30, 2024

Total equity

588,066

568,874

557,376

538,385

543,725

Less: Intangible assets

—

(1,390

)

TCE

588,066

568,874

557,376

538,385

542,335

Add: Non-GAAP adjustments, net of tax

1,167

—

10,011

2,362

Adjusted TCE (non-GAAP)

589,233

568,874

557,376

548,396

544,697

Total assets

7,421,478

7,369,567

7,405,239

7,472,096

7,415,430

Less: Intangible assets

—

(1,390

)

Tangible assets

7,421,478

7,369,567

7,405,239

7,472,096

7,414,040

Add: Non-GAAP adjustments, net of tax

1,167

—

10,011

2,362

Adjusted tangible assets (non-GAAP)

7,422,645

7,369,567

7,405,239

7,482,107

7,416,402

TCE ratio (non-GAAP)

7.92

7.72

7.53

7.21

7.31

Add: Non-GAAP adjustments, net of tax

0.02

—

0.12

0.03

Adjusted TCE ratio (non-GAAP)

7.94

7.72

7.53

7.33

7.34