Central Pacific Financial Reports Fourth Quarter and Full Year 2025 Earnings

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

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

Earnings Highlights

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

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

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

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

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

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

Balance Sheet Highlights

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

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

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

Asset Quality

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

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

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

Capital

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

The Company's regulatory capital ratios remained strong, with leverage ratio of 9.8%, a Common Equity Tier 1 ratio of 12.7%, a Tier 1 risk-based capital ratio of 13.6%, and a total risk-based capital ratio of 14.8% at December 31, 2025.

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

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

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

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

Conference Call

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

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

About Central Pacific Financial Corp.

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

Equal Housing Lender

Member FDIC

NYSE Listed: CPF

Forward-Looking Statements

This document may contain forward-looking statements ("FLS") concerning, among other things: projections of revenues, expenses, income or loss, earnings or loss per share, capital expenditures, payment or nonpayment of dividends, net interest income, capital position, credit losses, net interest margin, or other financial items. These statements may also include the plans, objectives, and expectations of Central Pacific Financial Corp. (the "Company") or its management or Board of Directors, including those relating to business plans, use of capital resources, products or services, and regulatory developments or actions. In addition, such statements may address anticipated economic performance, the expected impact of business initiatives, and the assumptions underlying any of the foregoing.

Words such as "believe," "plan," "anticipate," "aim," "seek," "expect," "intend," "forecast," "hope," "target," "continue," "remain," "estimate," "will," "should," "may," and other similar expressions are intended to identify FLS, although such terminology is not the exclusive means of doing so.

While we believe that our FLS and their underlying assumptions are reasonably based, such statements are inherently subject to risks and uncertainties that may cause actual results to differ materially from expectations. Factors that may lead to such differences, include, but are not limited to: the persistence or resurgence of inflationary pressures in the United States and our market areas, and their effect on market interest rates, economic conditions, and credit quality; the impact of the current U.S. administration’s economic policies, including potential international tariffs, and other cost cutting initiatives; the adverse effects of bank failures on customer confidence, deposit behavior, liquidity, and regulatory responses; the effects of pandemics, epidemics, and other public health emergencies, including their impact on Hawaii's tourism and construction sectors and on our borrowers, customers, vendors and employees; supply chain disruptions, labor contract disputes, strikes; adverse trends in the real estate or construction industries, including rising inventory levels or declining property values; deterioration in borrowers' financial performance leading to increased loan delinquencies, asset quality issues, or loan losses; the impact of local, national, and international economic conditions and natural disasters (such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, or earthquakes) on our markets and major industries within Hawaii; weakness in domestic economic conditions, including instability in the financial industry, deterioration in real estate markets, and declines in consumer or business confidence; revisions to estimates of reserve requirements under applicable regulatory and accounting standards; the impact of legislative and regulatory developments, including the Dodd-Frank Act, changing capital and consumer protection rules, and new regulations affecting our operations and competitiveness; legal and regulatory proceedings, including actual or threatened litigation and the efforts of governmental and regulatory exams and orders, as well as the costs of ongoing or potential compliance efforts; the effects of accounting standard changes adopted by regulatory agencies, the PCAOB, or the FASB, and the cost and resources associated with implementation; changes in trade, monetary, or fiscal policy, including actions by the Federal Reserve; market volatility and monetary fluctuations, including the transition away from the LIBOR Index; declines in our market capitalization or the price of our common stock; the effects and cost of acquisitions, dispositions, or strategic transactions we may make or evaluate; political instability, acts of war, terrorism, or other geopolitical conflicts; shifts in consumer spending, borrowing, and savings behaviors; technological changes and developments; cybersecurity incidents, data privacy breaches, or fraud involving us or third-party vendors; deficiencies in internal control over financial reporting or disclosure controls, and our ability to remediate them; increased competition among financial institutions and other financial service providers; our ability to achieve efficiency ratio improvement goals; our ability to attract and retain key personnel; changes in our personnel, organization, compensation and benefit plans; and related reputational or regulatory exposures; and risks related to the United States fiscal debt, deficit, and budget uncertainties.

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

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

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

TABLE 1

Three Months Ended

Year Ended

(Dollars in thousands,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

except for per share amounts)

2025

2024

2025

2024

CONDENSED INCOME STATEMENT

Net interest income

62,087

61,301

59,796

57,699

55,774

240,883

211,733

Provision for credit losses

2,396

4,157

4,987

4,172

818

15,712

9,826

Total other operating income

14,201

13,507

13,013

11,096

2,624

51,817

38,723

Total other operating expense

45,680

47,009

43,946

42,072

44,177

178,707

172,591

Income tax expense

5,337

5,068

5,605

4,791

2,058

20,801

14,627

Net income

22,875

18,574

18,271

17,760

11,345

77,480

53,412

Basic earnings per share

0.86

0.69

0.68

0.66

0.42

2.88

1.97

Diluted earnings per share

0.85

0.69

0.67

0.65

0.42

2.86

1.97

Dividends declared per share

0.28

0.27

0.26

1.09

1.04

PERFORMANCE RATIOS

Return on average assets (ROA) [1]

1.25

1.01

1.00

0.96

0.62

1.06

0.72

Return on average equity (ROE) [1]

15.41

12.89

13.04

8.37

13.62

10.25

Average equity to average assets

8.12

7.85

7.66

7.37

7.35

7.75

7.06

Efficiency ratio [2]

59.88

62.84

60.36

61.16

75.65

61.05

68.91

Net interest margin (NIM) [1]

3.56

3.49

3.44

3.31

3.17

3.45

3.01

Dividend payout ratio [3]

32.94

39.13

40.30

41.54

61.90

38.11

52.79

SELECTED AVERAGE BALANCES

Average loans, including loans held for sale

5,328,499

5,332,656

5,307,946

5,311,610

5,315,802

5,320,258

5,358,059

Average interest-earning assets

6,964,796

7,011,753

6,985,097

7,054,488

7,052,296

7,003,809

7,061,864

Average assets

7,310,098

7,341,281

7,314,144

7,388,783

7,377,398

7,338,368

7,378,207

Average deposits

6,499,119

6,509,692

6,503,463

6,561,100

6,546,616

6,518,150

6,570,990

Average interest-bearing liabilities

4,757,686

4,807,225

4,807,669

4,914,398

4,906,623

4,821,276

4,932,757

Average equity

593,750

576,531

560,248

544,888

542,135

569,009

521,008

[1] ROA and ROE are annualized based on a 30/360 day convention. Annualized net interest income and expense in the NIM calculation are based on the day count interest payment conventions at the interest-earning asset or interest-bearing liability level (i.e. 30/360, actual/actual).

[2] Efficiency ratio is defined as total other operating expense divided by total revenue (net interest income and total other operating income).

[3] Dividend payout ratio is defined as dividends declared per share divided by diluted earnings per share.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

TABLE 1 (CONTINUED)

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

2025

2024

REGULATORY CAPITAL RATIOS

Central Pacific Financial Corp.

Leverage ratio

9.8

9.7

9.6

9.4

9.3

Common equity tier 1 capital ratio

12.7

12.6

12.4

12.3

Tier 1 risk-based capital ratio

13.6

13.5

13.4

13.2

Total risk-based capital ratio

14.8

15.7

15.8

15.6

15.4

Central Pacific Bank

Leverage ratio

9.7

10.2

10.1

9.8

9.7

Common equity tier 1 capital ratio

13.5

14.1

14.0

13.8

Tier 1 risk-based capital ratio

13.5

14.1

14.0

13.8

Total risk-based capital ratio

14.7

15.3

15.2

14.9

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

(dollars in thousands, except for per share amounts)

2025

2024

BALANCE SHEET

Total loans, net of deferred fees and costs

5,289,096

5,367,202

5,289,809

5,334,547

5,332,852

Total assets

7,409,241

7,421,478

7,369,567

7,405,239

7,472,096

Total deposits

6,609,764

6,577,684

6,544,989

6,596,048

6,644,011

Long-term debt

76,547

131,527

131,466

131,405

156,345

Total equity

592,581

588,066

568,874

557,376

538,385

Tangible common equity to tangible assets [4]

8.00

7.92

7.72

7.53

7.21

ASSET QUALITY

Allowance for credit losses (ACL)

59,621

60,393

59,611

60,469

59,182

Nonaccrual loans

14,386

14,319

14,895

11,085

11,018

Non-performing assets (NPA)

14,386

14,319

14,895

11,085

11,018

Ratio of ACL to total loans

1.13

1.11

Ratio of NPA to total assets

0.19

0.20

0.15

PER SHARE OF COMMON STOCK OUTSTANDING

Book value per common share

22.47

21.86

21.08

20.60

19.89

Closing market price per common share

31.16

30.34

28.03

27.04

29.05

[4] The tangible common equity ratio is a non-GAAP measure which should be read in conjunction with the Company’s GAAP financial information. Comparison of our ratio with those of other companies may not be possible because other companies may calculate the ratio differently. See Reconciliation of Non-GAAP Financial Measures in Table 10.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Consolidated Balance Sheets

(Unaudited)

TABLE 2

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

(Dollars in thousands, except share data)

2025

2024

ASSETS

Cash and due from financial institutions

88,200

102,859

110,935

106,670

77,774

Interest-bearing deposits in other financial institutions

290,453

207,034

206,035

170,226

303,167

Investment securities:

Debt securities available-for-sale, at fair value

748,212

758,683

765,213

780,379

737,658

Debt securities held-to-maturity, at amortized cost; fair value of: $495,845 at December 31, 2025, $500,859 at September 30, 2025, $499,833 at June 30, 2025, $511,717 at March 31, 2025, and $506,681 at December 31, 2024

562,391

570,886

580,476

589,688

596,930

Total investment securities

1,310,603

1,329,569

1,345,689

1,370,067

1,334,588

Loans held for sale

1,084

1,557

—

2,788

5,662

Loans, net of deferred fees and costs

5,289,096

5,367,202

5,289,809

5,334,547

5,332,852

Less: allowance for credit losses

(59,621

)

(60,393

)

(59,611

)

(60,469

)

(59,182

)

Loans, net of allowance for credit losses

5,229,475

5,306,809

5,230,198

5,274,078

5,273,670

Premises and equipment, net

100,620

100,992

103,657

103,490

104,342

Accrued interest receivable

23,559

25,232

23,518

24,743

23,378

Investment in unconsolidated entities

61,349

52,987

49,370

50,885

52,417

Mortgage servicing rights

8,672

8,459

8,436

8,418

8,473

Bank-owned life insurance

180,717

179,743

177,639

176,846

176,216

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

25,836

25,215

24,816

24,163

6,929

Right-of-use lease assets

24,822

25,570

30,693

29,829

30,824

Other assets

63,851

55,452

58,581

63,036

74,656

Total assets

7,409,241

7,421,478

7,369,567

7,405,239

7,472,096

LIABILITIES

Deposits:

Noninterest-bearing demand

1,891,198

1,903,614

1,938,226

1,854,241

1,888,937

Interest-bearing demand

1,388,107

1,340,725

1,336,620

1,368,519

1,338,719

Savings and money market

2,346,522

2,292,881

2,242,122

2,316,416

2,329,170

Time

983,937

1,040,464

1,028,021

1,056,872

1,087,185

Total deposits

6,609,764

6,577,684

6,544,989

6,596,048

6,644,011

Long-term debt, net of unamortized debt issuance costs

76,547

131,527

131,466

131,405

156,345

Lease liabilities

25,549

26,288

31,981

31,057

32,025

Accrued interest payable

7,068

8,604

8,755

8,757

10,051

Other liabilities

97,732

89,309

83,502

80,596

91,279

Total liabilities

6,816,660

6,833,412

6,800,693

6,847,863

6,933,711

EQUITY

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

—

Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 26,374,967 at December 31, 2025, 26,903,512 at September 30, 2025, 26,981,436 at June 30, 2025, 27,061,589 at March 31, 2025, and 27,065,570 at December 31, 2024

381,158

397,479

399,823

402,400

404,494

Additional paid-in capital

107,308

106,675

106,033

104,849

105,054

Retained earnings

191,383

175,968

164,676

153,692

143,259

Accumulated other comprehensive loss

(87,268

)

(92,056

)

(101,658

)

(103,565

)

(114,422

)

Total equity

592,581

588,066

568,874

557,376

538,385

Total liabilities and equity

7,409,241

7,421,478

7,369,567

7,405,239

7,472,096

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

TABLE 3

Three Months Ended

Year Ended

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

(Dollars in thousands, except per share data)

2025

2024

2025

2024

Interest income:

Interest and fees on loans

66,897

67,222

65,668

64,119

65,482

263,906

258,192

Interest and dividends on investment securities:

Taxable investment securities

9,401

9,776

9,871

9,801

8,626

38,849

33,278

Tax-exempt investment securities

696

709

708

723

2,822

2,527

Interest on deposits in other financial institutions

1,501

1,857

1,484

2,254

3,004

7,096

11,593

Dividend income on FHLB and FRB stock

382

395

388

324

125

1,489

509

Total interest income

78,877

79,959

78,120

77,206

77,960

314,162

306,099

Interest expense:

Interest on deposits:

Interest-bearing demand

441

490

443

452

686

1,826

2,159

Savings and money market

8,004

8,898

8,414

8,862

9,388

34,178

37,043

Time

6,999

7,410

7,616

8,107

9,881

30,132

46,084

Interest on FHLB advances and other short-term borrowings

—

Interest on long-term debt

1,346

1,860

1,851

2,086

2,231

7,143

9,079

Total interest expense

16,790

18,658

18,324

19,507

22,186

73,279

94,366

Net interest income

62,087

61,301

59,796

57,699

55,774

240,883

211,733

Provision for credit losses

2,396

4,157

4,987

4,172

818

15,712

9,826

Net interest income after provision for credit losses

59,691

57,144

54,809

53,527

54,956

225,171

201,907

Other operating income:

Mortgage banking income

1,186

958

744

597

913

3,485

3,388

Service charges on deposit accounts

2,423

2,330

2,124

2,147

2,251

9,024

8,656

Other service charges and fees

5,570

6,472

5,957

5,766

5,476

23,765

22,553

Income from fiduciary activities

1,529

1,547

1,501

1,624

1,430

6,201

5,761

Income from bank-owned life insurance

2,816

1,879

2,260

497

1,966

7,452

6,619

Net loss on sales of investment securities

—

(30

)

—

(9,934

)

(30

)

(9,934

)

Other

677

351

427

465

522

1,920

1,680

Total other operating income

14,201

13,507

13,013

11,096

2,624

51,817

38,723

Other operating expense:

Salaries and employee benefits

24,490

24,749

22,696

21,819

21,661

93,754

85,941

Net occupancy

4,432

4,598

4,253

4,392

4,192

17,675

18,001

Computer software

5,442

5,151

5,320

4,714

4,757

20,627

18,015

Legal and professional services

2,878

2,669

2,873

2,798

2,504

11,218

9,790

Equipment

825

867

950

1,082

904

3,724

3,881

Advertising

943

730

832

887

911

3,392

3,615

Communication

495

791

901

1,033

943

3,220

3,177

Other

6,175

7,454

6,121

5,347

8,305

25,097

30,171

Total other operating expense

45,680

47,009

43,946

42,072

44,177

178,707

172,591

Income before income taxes

28,212

23,642

23,876

22,551

13,403

98,281

68,039

Income tax expense

5,337

5,068

5,605

4,791

2,058

20,801

14,627

Net income

22,875

18,574

18,271

17,760

11,345

77,480

53,412

Per common share data:

Basic earnings per share

0.86

0.69

0.68

0.66

0.42

2.88

1.97

Diluted earnings per share

0.85

0.69

0.67

0.65

0.42

2.86

1.97

Cash dividends declared

0.28

0.27

0.26

1.09

1.04

Basic weighted average shares outstanding

26,687,551

26,968,163

26,988,169

27,087,154

27,065,047

26,931,761

27,057,329

Diluted weighted average shares outstanding

26,827,551

27,083,280

27,069,677

27,213,406

27,221,121

27,045,170

27,157,120

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

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

(Unaudited)

TABLE 4

Three Months Ended

December 31, 2025

September 30, 2025

December 31, 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

151,826

3.92

1,501

167,247

4.41

1,857

250,493

4.77

3,004

Investment securities:

Taxable

1,322,341

2.84

9,401

1,348,314

2.90

9,776

1,338,569

2.58

8,626

Tax-exempt [1]

136,530

2.58

881

138,470

2.59

898

140,503

2.60

915

Total investment securities

1,458,871

2.82

10,282

1,486,784

2.87

10,674

1,479,072

2.58

9,541

Loans, including loans held for sale

5,328,499

4.99

66,897

5,332,656

5.01

67,222

5,315,802

4.91

65,482

FHLB and FRB stock

25,600

5.96

382

25,066

6.30

395

6,929

7.23

125

Total interest-earning assets

6,964,796

4.52

79,062

7,011,753

4.55

80,148

7,052,296

4.42

78,152

Noninterest-earning assets

345,302

329,528

325,102

Total assets

7,310,098

7,341,281

7,377,398

LIABILITIES AND EQUITY

Interest-bearing liabilities:

Interest-bearing demand deposits

1,358,436

0.13

441

1,358,837

0.14

490

1,312,561

0.21

686

Savings and money market deposits

2,297,826

1.38

8,004

2,293,452

1.54

8,898

2,313,293

1.61

9,388

Time deposits up to $250,000

433,911

2.21

2,422

437,192

2.28

2,509

518,540

2.99

3,900

Time deposits over $250,000

571,240

3.18

4,577

586,251

3.32

4,901

605,920

3.93

5,981

Total interest-bearing deposits

4,661,413

1.31

15,444

4,675,732

1.43

16,798

4,750,314

1.67

19,955

Federal funds purchased and securities sold

—

5.57

—

FHLB advances and other short-term borrowings

—

5.04

—

Long-term debt

96,273

5.55

1,346

131,493

5.61

1,860

156,305

5.68

2,231

Total interest-bearing liabilities

4,757,686

1.40

16,790

4,807,225

1.54

18,658

4,906,623

1.80

22,186

Noninterest-bearing deposits

1,837,706

1,833,960

1,796,302

Other liabilities

120,956

123,565

132,338

Total liabilities

6,716,348

6,764,750

6,835,263

Total equity

593,750

576,531

542,135

Total liabilities and equity

7,310,098

7,341,281

7,377,398

Taxable-equivalent net interest income (non-GAAP)

62,272

61,490

55,966

Taxable-equivalent adjustment [1]

(185

)

(189

)

(192

)

Net interest income (GAAP)

62,087

61,301

55,774

Interest rate spread

3.12

3.01

2.62

Net interest margin (taxable-equivalent)

3.56

3.49

3.17

[1] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

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

(Unaudited)

TABLE 5

Year Ended

December 31, 2025

December 31, 2024

Average

(Dollars in thousands)

Balance

Yield/Rate

Interest

Balance

Yield/Rate

Interest

ASSETS

Interest-earning assets:

Interest-bearing deposits in other financial institutions

164,721

4.31

7,096

220,526

5.26

11,593

Investment securities:

Taxable

1,356,467

2.86

38,849

1,334,695

2.49

33,278

Tax-exempt [1]

138,415

2.58

3,572

141,688

2.26

3,199

Total investment securities

1,494,882

2.84

42,421

1,476,383

2.47

36,477

Loans, including loans held for sale

5,320,258

4.96

263,906

5,358,059

4.82

258,192

FHLB and FRB stock

23,948

6.22

1,489

6,896

7.38

509

Total interest-earning assets

7,003,809

4.50

314,912

7,061,864

4.34

306,771

Noninterest-earning assets

334,559

316,343

Total assets

7,338,368

7,378,207

LIABILITIES AND EQUITY

Interest-bearing liabilities:

Interest-bearing demand deposits

1,357,433

0.13

1,826

1,287,628

0.17

2,159

Savings and money market deposits

2,302,973

1.48

34,178

2,263,273

1.64

37,043

Time deposits up to $250,000

442,001

2.33

10,309

538,216

3.16

17,025

Time deposits over $250,000

591,162

3.35

19,823

687,404

4.23

29,059

Total interest-bearing deposits

4,693,569

1.41

66,136

4,776,521

1.79

85,286

Federal funds purchased and securities sold

—

5.57

—

FHLB advances and other short-term borrowings

—

5.58

Long-term debt

127,707

5.59

7,143

156,218

5.81

9,079

Total interest-bearing liabilities

4,821,276

1.52

73,279

4,932,757

1.91

94,366

Noninterest-bearing deposits

1,824,581

1,794,469

Other liabilities

123,502

129,973

Total liabilities

6,769,359

6,857,199

Total equity

569,009

521,008

Total liabilities and equity

7,338,368

7,378,207

Taxable-equivalent net interest income (non-GAAP)

241,633

212,405

Taxable-equivalent adjustment [1]

(750

)

(672

)

Net interest income (GAAP)

240,883

211,733

Interest rate spread

2.98

2.43

Net interest margin (taxable-equivalent)

3.45

3.01

[1] Interest income and resultant yield information for tax-exempt investment securities is expressed on a taxable-equivalent basis using a federal statutory tax rate of 21%.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Loans by Class

(Unaudited)

TABLE 6

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

(Dollars in thousands)

2025

2024

Commercial and industrial

594,592

608,814

608,130

634,620

606,936

Construction

213,191

217,610

190,008

160,092

145,211

Residential mortgage

1,839,191

1,839,535

1,851,690

1,870,239

1,892,520

Home equity

600,082

610,889

627,834

655,237

676,982

Commercial mortgage

1,594,433

1,613,187

1,540,523

1,552,439

1,500,680

Consumer

447,607

477,167

471,624

461,920

510,523

Total loans, net of deferred fees and costs

5,289,096

5,367,202

5,289,809

5,334,547

5,332,852

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Deposits by Category

(Unaudited)

TABLE 7

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

(Dollars in thousands)

2025

2024

Noninterest-bearing demand

1,891,198

1,903,614

1,938,226

1,854,241

1,888,937

Interest-bearing demand

1,388,107

1,340,725

1,336,620

1,368,519

1,338,719

Savings and money market

2,346,522

2,292,881

2,242,122

2,316,416

2,329,170

Time deposits up to $250,000

433,629

444,005

439,687

436,437

483,378

Core deposits

6,059,456

5,981,225

5,956,655

5,975,613

6,040,204

Other time deposits greater than $250,000

412,188

458,339

459,945

475,861

500,693

Government time deposits

138,120

128,389

144,574

103,114

Total time deposits greater than $250,000

550,308

596,459

588,334

620,435

603,807

Total deposits

6,609,764

6,577,684

6,544,989

6,596,048

6,644,011

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Nonperforming Assets and Accruing Loans 90+ Days Past Due

(Unaudited)

TABLE 8

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

(Dollars in thousands)

2025

2024

Nonaccrual loans:

Commercial and industrial

591

357

110

531

414

Residential mortgage

10,572

11,413

12,327

9,199

9,044

Home equity

2,608

2,119

1,889

746

952

Consumer

615

430

569

609

608

Total nonaccrual loans

14,386

14,319

14,895

11,085

11,018

Other real estate owned ("OREO")

—

Total nonperforming assets ("NPAs")

14,386

14,319

14,895

11,085

11,018

Accruing loans 90+ days past due:

Residential mortgage

664

1,159

1,625

—

323

Home equity

485

—

Consumer

403

349

418

670

373

Total accruing loans 90+ days past due

1,552

1,508

2,064

757

774

Total NPAs and accruing loans 90+ days past due

15,938

15,827

16,959

11,842

11,792

Ratio of total nonaccrual loans to total loans

0.27

0.28

0.21

Ratio of total NPAs to total assets

0.19

0.20

0.15

Ratio of total NPAs to total loans and OREO

0.27

0.28

0.21

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

0.30

0.29

0.32

0.22

Quarter-to-quarter changes in NPAs:

Balance at beginning of quarter

14,319

14,895

11,085

11,018

11,597

Additions

2,549

838

5,879

2,397

1,436

Reductions:

Payments

(397

)

(286

)

(585

)

(614

)

(763

)

Return to accrual status

(1,098

)

(821

)

(861

)

(558

)

(71

)

Charge-offs, valuation adjustments and other reductions

(987

)

(307

)

(623

)

(1,158

)

(1,181

)

Total reductions

(2,482

)

(1,414

)

(2,069

)

(2,330

)

(2,015

)

Balance at end of quarter

14,386

14,319

14,895

11,085

11,018

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Allowance for Credit Losses on Loans

(Unaudited)

TABLE 9

Three Months Ended

Year Ended

Dec 31,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

(Dollars in thousands)

2025

2024

2025

2024

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

Balance at beginning of period

60,393

59,611

60,469

59,182

61,647

59,182

63,934

Provision for credit losses on loans

1,685

3,440

3,810

3,905

1,353

12,840

10,962

Charge-offs:

Commercial and industrial

(678

)

(1,071

)

(2,858

)

(580

)

(1,113

)

(5,187

)

(2,977

)

Residential mortgage

—

(383

)

Consumer

(2,831

)

(2,824

)

(2,864

)

(2,977

)

(3,727

)

(11,496

)

(16,866

)

Total charge-offs

(3,509

)

(3,895

)

(5,722

)

(3,557

)

(4,840

)

(16,683

)

(20,226

)

Recoveries:

Commercial and industrial

266

204

195

171

158

836

536

Construction

—

Residential mortgage

Home equity

—

Consumer

767

1,016

840

755

853

3,378

3,934

Total recoveries

1,052

1,237

1,054

939

1,022

4,282

4,512

Net charge-offs

(2,457

)

(2,658

)

(4,668

)

(2,618

)

(3,818

)

(12,401

)

(15,714

)

Balance at end of period

59,621

60,393

59,611

60,469

59,182

59,621

59,182

Average loans, net of deferred fees and costs

5,328,499

5,332,656

5,307,946

5,311,610

5,315,802

5,320,258

5,358,059

Ratio of annualized net charge-offs to average loans

0.18

0.20

0.35

0.20

0.29

0.23

0.29

Ratio of ACL to total loans

1.13

1.11

1.13

1.11

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

TABLE 10

To supplement its consolidated financial information, the Company utilizes certain non-GAAP financial measures. These measures are not intended to be considered in isolation or as a substitute for comparable GAAP results. The Company believes these non-GAAP financial measures provide meaningful insight to investors and other stakeholders in understanding its financial performance and position, by excluding certain transactions that may be non-recurring, non-operational, or not indicative of ongoing results. The Company believes that these non-GAAP measures offer a useful perspective for evaluating performance trends over time and are intended to support period-to-period comparisons. The Company believes they are valuable tools for both investors and management in assessing historical results and forecasting future performance.

Non-GAAP financial measures may not be comparable to similarly entitled measures reported by other companies. The following reconciling adjustments from GAAP to non-GAAP adjusted financial measures are limited to: (1) net pre-tax expenses of $1.5 million related to the consolidation of the Company's former operations center into its main office in the three months ended September 30, 2025, (2) net pre-tax loss on sales of investment securities related to an investment portfolio repositioning of $9.9 million in the fourth quarter of 2024, and (3) pre-tax expenses of $3.1 million related to the evaluation and assessment of a strategic opportunity in the three months ended September 30, 2024.

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

Three Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

(dollars in thousands,

GAAP

Non-GAAP

GAAP

Non-GAAP

GAAP

Non-GAAP

except per share data)

Reported

Adjustment

Adjusted

Reported

Adjustment

Adjusted

Reported

Adjustment

Adjusted

Financial measures:

Net income

22,875

—

22,875

18,574

1,167

19,741

11,345

7,649

18,994

Diluted EPS

0.85

—

0.85

0.69

0.04

0.73

0.42

0.28

0.70

Efficiency ratio (non-GAAP)

59.88

—

59.88

62.84

(2.03

60.81

75.65

(11.00

64.65

ROA

1.25

—

1.25

1.01

0.07

1.08

0.62

0.41

1.03

ROE

15.41

—

15.41

12.89

0.78

13.67

8.37

5.45

13.82

As of period ended:

TCE ratio (non-GAAP)

8.00

0.01

8.01

7.92

0.02

7.94

7.21

0.12

7.33

Year Ended December 31, 2025

Year Ended December 31, 2024

(dollars in thousands,

GAAP

Non-GAAP

GAAP

Non-GAAP

except per share data)

Reported

Adjustment

Adjusted

Reported

Adjustment

Adjusted

Financial measures:

Net income

77,480

1,167

78,647

53,412

10,011

63,423

Diluted EPS

2.86

0.05

2.91

1.97

0.37

2.34

Efficiency ratio (non-GAAP)

61.05

(0.51

60.54

68.91

(3.81

65.10

ROA

1.06

0.01

1.07

0.72

0.14

0.86

ROE

13.62

0.19

13.81

10.25

1.85

12.10

As of December 31, 2025 and 2024:

TCE ratio (non-GAAP)

8.00

0.01

8.01

7.21

0.12

7.33

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

TABLE 10 (CONTINUED)

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

Three Months Ended

Year Ended

(dollars in thousands, except per share data)

Dec 31, 2025

Sep 30, 2025

Dec 31, 2024

Dec 31, 2025

Dec 31, 2024

GAAP net income

22,875

18,574

11,345

77,480

53,412

Add: Net loss related to an investment portfolio repositioning

—

9,934

—

9,934

Add: Expenses related to the consolidation of operations center

—

1,516

—

1,516

—

Add: Expenses related to a strategic opportunity

—

3,068

Non-GAAP pre-tax adjustments

—

1,516

9,934

1,516

13,002

Less: Income tax effect (assumes 23% ETR)

—

(349

)

(2,285

)

(349

)

(2,991

)

Non-GAAP adjustments, net of tax

—

1,167

7,649

1,167

10,011

Adjusted net income (non-GAAP)

22,875

19,741

18,994

78,647

63,423

Diluted weighted average shares outstanding

26,827,551

27,083,280

27,221,121

27,045,170

27,157,120

GAAP diluted EPS

0.85

0.69

0.42

2.86

1.97

Add: Non-GAAP adjustments, net of tax

—

0.04

0.28

0.05

0.37

Adjusted diluted EPS (non-GAAP)

0.85

0.73

0.70

2.91

2.34

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

TABLE 10 (CONTINUED)

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

Three Months Ended

Year Ended

(dollars in thousands)

Dec 31, 2025

Sep 30, 2025

Dec 31, 2024

Dec 31, 2025

Dec 31, 2024

Total other operating expense

45,680

47,009

44,177

178,707

172,591

Less: Expenses related to the consolidation of operations center

—

(1,516

)

—

(1,516

)

—

Less: Expenses related to a strategic opportunity

—

(3,068

)

Non-GAAP other operating expense adjustments

—

(1,516

)

—

(1,516

)

(3,068

)

Adjusted total other operating expense (non-GAAP)

45,680

45,493

44,177

177,191

169,523

Total other operating income

14,201

13,507

2,624

51,817

38,723

Add: Net loss related to an investment portfolio repositioning

—

9,934

—

9,934

Adjusted total other operating income (non-GAAP)

14,201

13,507

12,558

51,817

48,657

Net interest income

62,087

61,301

55,774

240,883

211,733

Total other operating income

14,201

13,507

2,624

51,817

38,723

Total revenue

76,288

74,808

58,398

292,700

250,456

Efficiency ratio (non-GAAP)

59.88

62.84

75.65

61.05

68.91

Less: Non-GAAP pre-tax adjustments

—

(2.03

(11.00

(0.51

(3.81

Adjusted efficiency ratio (non-GAAP)

59.88

60.81

64.65

60.54

65.10

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

TABLE 10 (CONTINUED)

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

Three Months Ended

Year Ended

(dollars in thousands)

Dec 31, 2025

Sep 30, 2025

Dec 31, 2024

Dec 31, 2025

Dec 31, 2024

Average assets

7,310,098

7,341,281

7,377,398

7,338,368

7,378,207

Add: Non-GAAP adjustments, net of tax

—

1,167

7,649

584

3,093

Adjusted average assets (non-GAAP)

7,310,098

7,342,448

7,385,047

7,338,952

7,381,300

ROA

1.25

1.01

0.62

1.06

0.72

Add: Non-GAAP adjustments, net of tax

—

0.07

0.41

0.01

0.14

Adjusted ROA (non-GAAP)

1.25

1.08

1.03

1.07

0.86

Average equity

593,750

576,531

542,135

569,009

521,008

Add: Non-GAAP adjustments, net of tax

—

1,167

7,649

584

3,093

Adjusted average equity (non-GAAP)

593,750

577,698

549,784

569,593

524,101

ROE

15.41

12.89

8.37

13.62

10.25

Add: Non-GAAP adjustments, net of tax

—

0.78

5.45

0.19

1.85

Adjusted ROE (non-GAAP)

15.41

13.67

13.82

13.81

12.10

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

(dollars in thousands)

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

Total equity

592,581

588,066

568,874

557,376

538,385

Less: Intangible assets

—

TCE

592,581

588,066

568,874

557,376

538,385

Add: Non-GAAP adjustments, net of tax

1,167

—

10,011

Adjusted TCE (non-GAAP)

593,748

589,233

568,874

557,376

548,396

Total assets

7,409,241

7,421,478

7,369,567

7,405,239

7,472,096

Less: Intangible assets

—

Tangible assets

7,409,241

7,421,478

7,369,567

7,405,239

7,472,096

Add: Non-GAAP adjustments, net of tax

1,167

—

10,011

Adjusted tangible assets (non-GAAP)

7,410,408

7,422,645

7,369,567

7,405,239

7,482,107

TCE ratio (non-GAAP)

8.00

7.92

7.72

7.53

7.21

Add: Non-GAAP adjustments, net of tax

0.01

0.02

—

0.12

Adjusted TCE ratio (non-GAAP)

8.01

7.94

7.72

7.53

7.33