Central Pacific Financial Reports First Quarter 2026 Earnings of $20.7 Million

Central Pacific Financial Reports First Quarter 2026 Earnings of $20.7 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 $20.7 million, or $0.78 per fully diluted earnings share ("EPS"), for the first quarter of 2026. This compares to net income of $22.9 million, or EPS of $0.85, in the prior quarter and $17.8 million, or EPS of $0.65, in the first quarter last year.

"We delivered strong net income in the first quarter, marked by balance sheet growth, healthy net interest margin, and disciplined expense management,” said Arnold Martines, Chairman, President and CEO. “We are proud to be named as Hawaii SBA lender of the year for the 17th time, reflecting our ongoing commitment to supporting small businesses in our community. I want to express my sincere appreciation to our employees and customers for their continued dedication and partnership."

Earnings Highlights

Net interest income for the first quarter of 2026 totaled $61.4 million, which decreased by $0.7 million, or 1.2% from the prior quarter, and increased by $3.7 million, or 6.3%, compared to the same quarter last year. Net interest margin ("NIM") for the first quarter of 2026 was 3.53%, a decrease of 3 basis points ("bp" or "bps") from the prior quarter, and an increase of 22 bps from the same quarter last year. The sequential quarter decrease in net interest income and NIM was primarily driven by lower average yields earned on loans, down 6 bps, and investment securities, down 5 bps, partially offset by a 6 bps decrease in average rates paid on interest-bearing deposits. The sequential quarter decrease in net interest income was also due to a $60.0 million decrease in average loans and two less days in the current quarter.

The Company recorded a provision for credit losses of $2.4 million in the first quarter of 2026, compared to a provision of $2.4 million in the prior quarter, and a provision of $4.2 million in the same quarter last year. The current quarter provision for credit losses included $2.7 million for credit losses on loans offset by a $0.3 million credit for off-balance sheet credit exposures. The decrease from the year ago quarter was primarily driven by lower loan balances and changes in the economic forecast used in our current expected credit losses model.

Other operating income for the first quarter of 2026 totaled $11.6 million, compared to $14.2 million in the prior quarter, and $11.1 million in the same quarter last year. The sequential quarter decrease was primarily due to a decrease in income from bank-owned life insurance of $2.4 million and lower mortgage banking income of $0.5 million, partially offset by income related to a debit card program contract extension consideration of $0.7 million (included in other income). The decrease in income from bank-owned life insurance was largely driven by $1.4 million in death benefits recognized in the prior quarter, combined with equity market volatility and the impact on corporate-owned life insurance ("COLI") policies used to hedge deferred compensation expense.

Other operating expense for the first quarter of 2026 totaled $43.7 million, compared to $45.7 million in the prior quarter, and $42.1 million in the same quarter last year. The decrease from the prior quarter was primarily attributable to lower salaries and employee benefits of $1.4 million due to lower incentive accruals and lower deferred compensation expense, along with a reduction in legal and professional services of $0.5 million.

The efficiency ratio was 59.87% in the first quarter of 2026, compared to 59.88% in the prior quarter and 61.16% in the same quarter last year.

The effective tax rate for the first quarter of 2026 was 23.0%, compared to 18.9% in the prior quarter, and 21.2% in the same quarter last year. The increase in the Company's effective tax rate was primarily attributable to additional tax credits recognized in the previous quarter and a decrease in tax-exempt income.

Balance Sheet Highlights

As of March 31, 2026, total assets were $7.50 billion, which increased by $86.1 million, or 1.2% from $7.41 billion at December 31, 2025, and an increase of $90.1 million, or 1.22% from $7.41 billion at March 31, 2025.

Total loans, net of deferred fees and costs, were $5.32 billion at March 31, 2026, which increased by $31.3 million, or 0.6% from $5.29 billion at December 31, 2025, and decreased by $14.2 million, or 0.3% from $5.33 billion at March 31, 2025. The average yield earned on loans during the first quarter of 2026 was 4.93%, compared to 4.99% in the prior quarter and 4.88% in the same quarter last year.

Total deposits were $6.70 billion at March 31, 2026, which increased by $89.6 million or 1.4% from $6.61 billion at December 31, 2025, and increased by $103.3 million, or 1.6% from $6.60 billion at March 31, 2025. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $6.13 billion at March 31, 2026. Core deposits increased by $74.9 million, or 1.2% from $6.06 billion at December 31, 2025, and increased by $158.7 million, or 2.7% from $5.98 billion at March 31, 2025. The average rate paid on total deposits during the first quarter of 2026 was 0.90%, compared to 0.94% in the prior quarter, and 1.08% in the same quarter last year.

Asset Quality

Nonperforming assets totaled $14.5 million, or 0.19% of total assets at March 31, 2026, compared to $14.4 million, or 0.19% of total assets at December 31, 2025 and $11.1 million, or 0.15% of total assets at March 31, 2025.

Net charge-offs in the first quarter of 2026 totaled $2.4 million, compared to net charge-offs of $2.5 million in the prior quarter, and net charge-offs of $2.6 million in the same quarter last year. On an annualized basis, net charge-offs as a percentage of average loans was 0.18% in the first quarter of 2026, compared to 0.18% in the prior quarter, and 0.20% in the same quarter last year.

The allowance for credit losses on loans was 1.13% of total loans as of March 31, 2026, and remained unchanged from 1.13% at December 31, 2025 and March 31, 2025.

Capital

Total shareholders' equity at March 31, 2026 was $593.9 million, compared to $592.6 million at December 31, 2025 and $557.4 million at March 31, 2025.

During the first quarter of 2026, the Company repurchased 321,396 shares of common stock at a total cost of $10.5 million, or an average price of $32.75 per share. As of March 31, 2026, $44.5 million remained available under the Company's share repurchase authorization.

The Company's regulatory capital ratios remained strong, with a leverage ratio of 9.7%, a Common Equity Tier 1 ratio of 12.6%, a Tier 1 risk-based capital ratio of 13.5%, and a total risk-based capital ratio of 14.7% at March 31, 2026.

On April 28, 2026, the Board of Directors declared a quarterly cash dividend of $0.29 per share. The dividend will be payable on June 15, 2026, to shareholders of record as of May 29, 2026.

Conference Call

The Company's management will host a conference call today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time) to discuss its first quarter of 2026 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 May 29, 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 $7.50 billion in assets as of March 31, 2026. 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, geopolitical instability, trade tensions, and other cost-cutting or fiscal initiatives; the adverse effects of bank failures on customer confidence, deposit behavior, liquidity, and regulatory responses; the effects of pandemics, epidemics, and other public health emergencies, including their impact on Hawaii's tourism and construction sectors and on our borrowers, customers, vendors and employees; supply chain disruptions, labor contract disputes, strikes; adverse trends in the real estate or construction industries, including rising inventory levels or declining property values; deterioration in borrowers' financial performance leading to increased loan delinquencies, asset quality issues, or loan losses; the impact of local, national, and international economic conditions and natural disasters (such as wildfires, volcanic eruptions, hurricanes, tsunamis, storms, floods, or earthquakes) on our markets and major industries within Hawaii; weakness in domestic economic conditions, including instability in the financial industry, deterioration in real estate markets, and declines in consumer or business confidence; revisions to estimates of reserve requirements under applicable regulatory and accounting standards; the impact of legislative and regulatory developments, including the Dodd-Frank Act, changing capital and consumer protection rules, and new regulations affecting our operations and competitiveness; the costs and effects of legal and regulatory proceedings, including actual or threatened litigation and the efforts of governmental and regulatory exams and orders, as well as the costs of ongoing or potential compliance efforts; the effect of accounting standard changes adopted by regulatory agencies, the PCAOB, or the FASB, and the cost and resources associated with implementation; changes in trade, monetary, or fiscal policy, including actions by the Federal Reserve; market volatility and monetary fluctuations, including the transition away from the LIBOR Index; declines in our market capitalization or the price of our common stock; the effects and cost of acquisitions, dispositions, or strategic transactions we may make or evaluate; political instability, acts of war or terrorism, or other geopolitical conflicts; shifts in consumer spending, borrowing, and savings behaviors; technological changes and developments; cybersecurity incidents, data privacy breaches, or fraud involving us or third-party vendors; deficiencies in internal control over financial reporting or disclosure controls and procedures, and our ability to remediate them; increased competition among financial institutions and other financial service providers; our ability to achieve efficiency ratio improvement goals; our ability to attract and retain key personnel; changes in our personnel, organization, compensation and benefit plans; and related reputational or regulatory exposures; and risks related to the United States fiscal debt, deficit, and budget uncertainties.

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

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

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Financial Highlights

(Unaudited)

TABLE 1

Three Months Ended

(Dollars in thousands,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

except for per share amounts)

2026

2025

CONDENSED INCOME STATEMENT

Net interest income

61,358

62,087

61,301

59,796

57,699

Provision for credit losses

2,353

2,396

4,157

4,987

4,172

Total other operating income

11,574

14,201

13,507

13,013

11,096

Total other operating expense

43,666

45,680

47,009

43,946

42,072

Income tax expense

6,188

5,337

5,068

5,605

4,791

Net income

20,725

22,875

18,574

18,271

17,760

Basic earnings per share

0.79

0.86

0.69

0.68

0.66

Diluted earnings per share

0.78

0.85

0.69

0.67

0.65

Dividends declared per share

0.29

0.28

0.27

PERFORMANCE RATIOS

Return on average assets (ROA) [1]

1.12

1.25

1.01

1.00

0.96

Return on average equity (ROE) [1]

13.90

15.41

12.89

13.04

Average equity to average assets

8.07

8.12

7.85

7.66

7.37

Efficiency ratio [2]

59.87

59.88

62.84

60.36

61.16

Net interest margin (NIM) [1]

3.53

3.56

3.49

3.44

3.31

Dividend payout ratio [3]

37.18

32.94

39.13

40.30

41.54

SELECTED AVERAGE BALANCES

Average loans, including loans held for sale

5,268,482

5,328,499

5,332,656

5,307,946

5,311,610

Average interest-earning assets

7,022,759

6,964,796

7,011,753

6,985,097

7,054,488

Average assets

7,396,084

7,310,098

7,341,281

7,314,144

7,388,783

Average deposits

6,592,361

6,499,119

6,509,692

6,503,463

6,561,100

Average interest-bearing liabilities

4,846,057

4,757,686

4,807,225

4,807,669

4,914,398

Average equity

596,524

593,750

576,531

560,248

544,888

[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,

2026

2025

REGULATORY CAPITAL RATIOS

Central Pacific Financial Corp.

Leverage ratio

9.7

9.8

9.7

9.6

9.4

Common equity tier 1 capital ratio

12.6

12.7

12.6

12.4

Tier 1 risk-based capital ratio

13.5

13.6

13.5

13.4

Total risk-based capital ratio

14.7

14.8

15.7

15.8

15.6

Central Pacific Bank

Leverage ratio

9.6

9.7

10.2

10.1

9.8

Common equity tier 1 capital ratio

13.4

13.5

14.1

14.0

Tier 1 risk-based capital ratio

13.4

13.5

14.1

14.0

Total risk-based capital ratio

14.6

14.7

15.3

15.2

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

(dollars in thousands, except for per share amounts)

2026

2025

BALANCE SHEET

Total loans, net of deferred fees and costs

5,320,349

5,289,096

5,367,202

5,289,809

5,334,547

Total assets

7,495,363

7,409,241

7,421,478

7,369,567

7,405,239

Total deposits

6,699,354

6,609,764

6,577,684

6,544,989

6,596,048

Long-term debt

76,547

131,527

131,466

131,405

Total equity

593,879

592,581

588,066

568,874

557,376

Tangible common equity to tangible assets [4]

7.92

8.00

7.92

7.72

7.53

ASSET QUALITY

Allowance for credit losses (ACL)

59,933

59,621

60,393

59,611

60,469

Nonaccrual loans

14,524

14,386

14,319

14,895

11,085

Non-performing assets (NPA)

14,524

14,386

14,319

14,895

11,085

Ratio of ACL to total loans

1.13

Ratio of NPA to total assets

0.19

0.20

0.15

PER SHARE OF COMMON STOCK OUTSTANDING

Book value per common share

22.74

22.47

21.86

21.08

20.60

Closing market price per common share

31.96

31.16

30.34

28.03

27.04

[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 9.

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)

2026

2025

ASSETS

Cash and due from financial institutions

88,880

88,200

102,859

110,935

106,670

Interest-bearing deposits in other financial institutions

317,716

290,453

207,034

206,035

170,226

Investment securities:

Debt securities available-for-sale, at fair value

779,156

748,212

758,683

765,213

780,379

Debt securities held-to-maturity, at amortized cost; fair value of: $486,018 at March 31, 2026, $495,845 at December 31, 2025, $500,859 at September 30, 2025, $499,833 at June 30, 2025, and $511,717 at March 31, 2025

554,548

562,391

570,886

580,476

589,688

Total investment securities

1,333,704

1,310,603

1,329,569

1,345,689

1,370,067

Loans held for sale

2,536

1,084

1,557

—

2,788

Loans, net of deferred fees and costs

5,320,349

5,289,096

5,367,202

5,289,809

5,334,547

Less: allowance for credit losses

(59,933

)

(59,621

)

(60,393

)

(59,611

)

(60,469

)

Loans, net of allowance for credit losses

5,260,416

5,229,475

5,306,809

5,230,198

5,274,078

Premises and equipment, net

99,942

100,620

100,992

103,657

103,490

Accrued interest receivable

24,320

23,559

25,232

23,518

24,743

Investment in unconsolidated entities

59,548

61,349

52,987

49,370

50,885

Mortgage servicing rights

8,520

8,672

8,459

8,436

8,418

Bank-owned life insurance

181,298

180,717

179,743

177,639

176,846

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

24,682

25,836

25,215

24,816

24,163

Right-of-use lease assets

24,320

24,822

25,570

30,693

29,829

Other assets

69,481

63,851

55,452

58,581

63,036

Total assets

7,495,363

7,409,241

7,421,478

7,369,567

7,405,239

LIABILITIES

Deposits:

Noninterest-bearing demand

1,897,593

1,891,198

1,903,614

1,938,226

1,854,241

Interest-bearing demand

1,428,323

1,388,107

1,340,725

1,336,620

1,368,519

Savings and money market

2,378,834

2,346,522

2,292,881

2,242,122

2,316,416

Time

994,604

983,937

1,040,464

1,028,021

1,056,872

Total deposits

6,699,354

6,609,764

6,577,684

6,544,989

6,596,048

Long-term debt, net of unamortized debt issuance costs

76,547

131,527

131,466

131,405

Lease liabilities

25,073

25,549

26,288

31,981

31,057

Accrued interest payable

6,433

7,068

8,604

8,755

8,757

Other liabilities

94,077

97,732

89,309

83,502

80,596

Total liabilities

6,901,484

6,816,660

6,833,412

6,800,693

6,847,863

EQUITY

Shareholders' equity:

Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at March 31, 2026, December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025

—

Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 26,115,229 at March 31, 2026, 26,374,967 at December 31, 2025, 26,903,512 at September 30, 2025, 26,981,436 at June 30, 2025, and 27,061,589 at March 31, 2025

370,633

381,158

397,479

399,823

402,400

Additional paid-in capital

106,501

107,308

106,675

106,033

104,849

Retained earnings

204,494

191,383

175,968

164,676

153,692

Accumulated other comprehensive loss

(87,749

)

(87,268

)

(92,056

)

(101,658

)

(103,565

)

Total equity

593,879

592,581

588,066

568,874

557,376

Total liabilities and equity

7,495,363

7,409,241

7,421,478

7,369,567

7,405,239

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)

2026

2025

Interest income:

Interest and fees on loans

64,323

66,897

67,222

65,668

64,119

Interest and dividends on investment securities:

Taxable investment securities

9,210

9,401

9,776

9,871

9,801

Tax-exempt investment securities

682

696

709

708

Interest on deposits in other financial institutions

2,500

1,501

1,857

1,484

2,254

Dividend income on FHLB and FRB stock

381

382

395

388

324

Total interest income

77,096

78,877

79,959

78,120

77,206

Interest expense:

Interest on deposits:

Interest-bearing demand

522

441

490

443

452

Savings and money market

7,502

8,004

8,898

8,414

8,862

Time

6,665

6,999

7,410

7,616

8,107

Interest on long-term debt

1,049

1,346

1,860

1,851

2,086

Total interest expense

15,738

16,790

18,658

18,324

19,507

Net interest income

61,358

62,087

61,301

59,796

57,699

Provision for credit losses

2,353

2,396

4,157

4,987

4,172

Net interest income after provision for credit losses

59,005

59,691

57,144

54,809

53,527

Other operating income:

Mortgage banking income

649

1,186

958

744

597

Service charges on deposit accounts

2,299

2,423

2,330

2,124

2,147

Other service charges and fees

5,789

5,570

6,472

5,957

5,766

Income from fiduciary activities

1,423

1,529

1,547

1,501

1,624

Income from bank-owned life insurance

399

2,816

1,879

2,260

497

Net loss on sales of investment securities

—

(30

)

—

Other

1,015

677

351

427

465

Total other operating income

11,574

14,201

13,507

13,013

11,096

Other operating expense:

Salaries and employee benefits

23,085

24,490

24,749

22,696

21,819

Net occupancy

4,322

4,432

4,598

4,253

4,392

Computer software

5,045

5,442

5,151

5,320

4,714

Legal and professional services

2,384

2,878

2,669

2,873

2,798

Equipment

807

825

867

950

1,082

Advertising

997

943

730

832

887

Communication

823

495

791

901

1,033

Other

6,203

6,175

7,454

6,121

5,347

Total other operating expense

43,666

45,680

47,009

43,946

42,072

Income before income taxes

26,913

28,212

23,642

23,876

22,551

Income tax expense

6,188

5,337

5,068

5,605

4,791

Net income

20,725

22,875

18,574

18,271

17,760

Per common share data:

Basic earnings per share

0.79

0.86

0.69

0.68

0.66

Diluted earnings per share

0.78

0.85

0.69

0.67

0.65

Cash dividends declared

0.29

0.28

0.27

Basic weighted average shares outstanding

26,277,749

26,687,551

26,968,163

26,988,169

27,087,154

Diluted weighted average shares outstanding

26,414,880

26,827,551

27,083,280

27,069,677

27,213,406

Note: Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

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

(Unaudited)

TABLE 4

Three Months Ended

March 31, 2026

December 31, 2025

March 31, 2025

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

274,885

3.69

2,500

151,826

3.92

1,501

206,108

4.44

2,254

Investment securities:

Taxable [1]

1,318,722

2.80

9,210

1,322,341

2.84

9,401

1,376,687

2.85

9,801

Tax-exempt [1] [3]

135,519

2.55

863

136,530

2.58

881

139,589

2.57

896

Total investment securities

1,454,241

2.77

10,073

1,458,871

2.82

10,282

1,516,276

2.82

10,697

Loans, including loans held for sale [2]

5,268,482

4.93

64,323

5,328,499

4.99

66,897

5,311,610

4.88

64,119

FHLB and FRB stock

25,151

6.07

381

25,600

5.96

382

20,494

6.32

324

Total interest-earning assets

7,022,759

4.44

77,277

6,964,796

4.52

79,062

7,054,488

4.43

77,394

Noninterest-earning assets

373,325

345,302

334,295

Total assets

7,396,084

7,310,098

7,388,783

LIABILITIES AND EQUITY

Interest-bearing liabilities:

Interest-bearing demand deposits

1,407,877

0.15

522

1,358,436

0.13

441

1,355,360

0.14

452

Savings and money market deposits

2,371,217

1.28

7,502

2,297,826

1.38

8,004

2,345,445

1.53

8,862

Time deposits up to $250,000

432,745

2.18

2,331

433,911

2.21

2,422

457,473

2.51

2,832

Time deposits over $250,000

557,671

3.15

4,334

571,240

3.18

4,577

603,919

3.54

5,275

Total interest-bearing deposits

4,769,510

1.25

14,689

4,661,413

1.31

15,444

4,762,197

1.48

17,421

Long-term debt

76,547

5.56

1,049

96,273

5.55

1,346

152,201

5.56

2,086

Total interest-bearing liabilities

4,846,057

1.32

15,738

4,757,686

1.40

16,790

4,914,398

1.61

19,507

Noninterest-bearing deposits

1,822,851

1,837,706

1,798,903

Other liabilities

130,652

120,956

130,594

Total liabilities

6,799,560

6,716,348

6,843,895

Total equity

596,524

593,750

544,888

Total liabilities and equity

7,396,084

7,310,098

7,388,783

Net interest income (taxable-equivalent)

61,539

62,272

57,887

Taxable-equivalent adjustment [3]

(181

)

(185

)

(188

)

Net interest income (GAAP)

61,358

62,087

57,699

Interest rate spread

3.12

2.82

Net interest margin (taxable-equivalent) [4]

3.53

3.56

3.31

[1] At amortized cost.

[2] Includes nonaccrual loans.

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

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

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Loans

(Unaudited)

TABLE 5

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

(Dollars in thousands)

2026

2025

Commercial and industrial

590,810

594,592

608,814

608,130

634,620

Construction

204,368

213,191

217,610

190,008

160,092

Residential mortgage

1,806,965

1,839,191

1,839,535

1,851,690

1,870,239

Home equity

582,380

600,082

610,889

627,834

655,237

Commercial mortgage

1,703,760

1,594,433

1,613,187

1,540,523

1,552,439

Consumer

432,066

447,607

477,167

471,624

461,920

Total loans, net of deferred fees and costs

5,320,349

5,289,096

5,367,202

5,289,809

5,334,547

Less: Allowance for credit losses

(59,933

)

(59,621

)

(60,393

)

(59,611

)

(60,469

)

Loans, net of allowance for credit losses

5,260,416

5,229,475

5,306,809

5,230,198

5,274,078

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Deposits

(Unaudited)

TABLE 6

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Mar 31,

(Dollars in thousands)

2026

2025

Noninterest-bearing demand

1,897,593

1,891,198

1,903,614

1,938,226

1,854,241

Interest-bearing demand

1,428,323

1,388,107

1,340,725

1,336,620

1,368,519

Savings and money market

2,378,834

2,346,522

2,292,881

2,242,122

2,316,416

Time deposits up to $250,000

429,564

433,629

444,005

439,687

436,437

Core deposits

6,134,314

6,059,456

5,981,225

5,956,655

5,975,613

Other time deposits greater than $250,000

431,013

412,188

458,339

459,945

475,861

Government time deposits

134,027

138,120

128,389

144,574

Total time deposits greater than $250,000

565,040

550,308

596,459

588,334

620,435

Total deposits

6,699,354

6,609,764

6,577,684

6,544,989

6,596,048

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)

2026

2025

Nonaccrual loans:

Commercial and industrial

490

591

357

110

531

Real estate:

Residential mortgage

10,518

10,572

11,413

12,327

9,199

Home equity

2,986

2,608

2,119

1,889

746

Consumer

530

615

430

569

609

Total nonaccrual loans

14,524

14,386

14,319

14,895

11,085

Other real estate owned ("OREO")

—

Total nonperforming assets ("NPAs")

14,524

14,386

14,319

14,895

11,085

Accruing loans 90+ days past due:

Real estate:

Residential mortgage

—

664

1,159

1,625

—

Home equity

—

485

—

Consumer

290

403

349

418

670

Total accruing loans 90+ days past due

290

1,552

1,508

2,064

757

Total NPAs and accruing loans 90+ days past due

14,814

15,938

15,827

16,959

11,842

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

0.28

0.30

0.29

0.32

0.22

Quarter-to-quarter changes in NPAs:

Balance at beginning of quarter

14,386

14,319

14,895

11,085

11,018

Additions

2,094

2,549

838

5,879

2,397

Reductions:

Payments

(284

)

(397

)

(286

)

(585

)

(614

)

Return to accrual status

(883

)

(1,098

)

(821

)

(861

)

(558

)

Charge-offs, valuation adjustments and other reductions

(789

)

(987

)

(307

)

(623

)

(1,158

)

Total reductions

(1,956

)

(2,482

)

(1,414

)

(2,069

)

(2,330

)

Balance at end of quarter

14,524

14,386

14,319

14,895

11,085

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)

2026

2025

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

Balance at beginning of period

59,621

60,393

59,611

60,469

59,182

Provision for credit losses on loans

2,724

1,685

3,440

3,810

3,905

Charge-offs:

Commercial and industrial

(1,056

)

(678

)

(1,071

)

(2,858

)

(580

)

Real estate:

Consumer

(2,301

)

(2,831

)

(2,824

)

(2,864

)

(2,977

)

Total charge-offs

(3,357

)

(3,509

)

(3,895

)

(5,722

)

(3,557

)

Recoveries:

Commercial and industrial

175

266

204

195

171

Real estate:

Construction

—

Residential mortgage

Home equity

Consumer

754

767

1,016

840

755

Total recoveries

945

1,052

1,237

1,054

939

Net charge-offs

(2,412

)

(2,457

)

(2,658

)

(4,668

)

(2,618

)

Balance at end of period

59,933

59,621

60,393

59,611

60,469

Average loans, net of deferred fees and costs

5,268,482

5,328,499

5,332,656

5,307,946

5,311,610

Ratio of annualized net charge-offs to average loans

0.18

0.20

0.35

0.20

Ratio of ACL to total loans

1.13

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

TABLE 9

To supplement its consolidated financial information, the Company utilizes certain non-GAAP financial measures. These measures are not intended to be considered in isolation or as a substitute for comparable GAAP results. The Company believes these non-GAAP financial measures provide meaningful insight to investors and other stakeholders in understanding its financial performance and position, by excluding certain transactions that may be non-recurring, non-operational, or not indicative of ongoing results. The Company believes that these non-GAAP measures offer a useful perspective for evaluating performance trends over time and are intended to support period-to-period comparisons. The Company believes they are valuable tools for both investors and management in assessing historical results and forecasting future performance. Non-GAAP financial measures may not be comparable to similarly entitled measures reported by other companies. The results for the three months ended March 31, 2026 were not materially impacted by items outside of the normal course of business.

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 for the periods presented.

Three Months Ended

(dollars in thousands)

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

GAAP net income

20,725

22,875

18,574

18,271

17,760

Add: Income tax expense

6,188

5,337

5,068

5,605

4,791

GAAP pre-tax income

26,913

28,212

23,642

23,876

22,551

Add: Provision for credit losses

2,353

2,396

4,157

4,987

4,172

Pre-provision net revenue ("PPNR") (non-GAAP)

29,266

30,608

27,799

28,863

26,723

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

TABLE 9 (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 for the periods indicated:

Three Months Ended

(dollars in thousands)

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Total other operating expense

43,666

45,680

47,009

43,946

42,072

Net interest income

61,358

62,087

61,301

59,796

57,699

Total other operating income

11,574

14,201

13,507

13,013

11,096

Total revenue

72,932

76,288

74,808

72,809

68,795

Efficiency ratio (non-GAAP)

59.87

59.88

62.84

60.36

61.16

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

(dollars in thousands)

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Total equity

593,879

592,581

588,066

568,874

557,376

Less: Intangible assets

—

TCE

593,879

592,581

588,066

568,874

557,376

Total assets

7,495,363

7,409,241

7,421,478

7,369,567

7,405,239

Less: Intangible assets

—

Tangible assets

7,495,363

7,409,241

7,421,478

7,369,567

7,405,239

TCE ratio (non-GAAP)

7.92

8.00

7.92

7.72

7.53