Central Pacific Financial Reports Third Quarter 2026 Earnings of $22.8 Million

Central Pacific Financial Reports Third Quarter 2026 Earnings of $22.8 Million HONOLULU--( BUSINESS WIRE)--Central Pacific Financial Corp. (NYSE: CPF) (the "Company"), parent company of Central Pacific Bank (the "Bank" or "CPB"), reported net income of $22.8 million, or $0.88 diluted earnings per share ("EPS"), for the third quarter of 2026. This compares to net income of $20.8 million, or diluted EPS of $0.80, in the prior quarter and $18.6 million, or diluted EPS of $0.69, in the same period 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 diluted EPS (non-GAAP) of $0.73.

“We delivered another quarter of strong financial performance, driven by net interest margin expansion, disciplined expense management, and solid asset quality," said Arnold Martines, Chairman, President and CEO. "We believe we are well positioned to serve our customers, support our communities, and deliver meaningful value to our shareholders.”

Earnings Highlights

Net interest income for the third quarter of 2026 totaled $64.5 million, which increased by $1.6 million, or 2.6%, from the prior quarter, and increased by $3.2 million, or 5.2%, compared to the same quarter last year. Net interest margin ("NIM") for the third quarter of 2026 was 3.62%, an increase of 5 basis points ("bp" or "bps") from the prior quarter, and an increase of 13 bps from the same quarter last year. The sequential quarter increase in net interest income and NIM was primarily driven by an increase in loan yields and higher average balances and yields earned on investment securities.

The Company recorded a provision for credit losses of $1.9 million in the third quarter of 2026, compared to a provision of $4.4 million in the prior quarter, and a provision of $4.2 million in the same quarter last year. The current quarter included a provision for loan losses of $1.9 million, while the reserve for off-balance sheet credit exposures remained flat. In the prior quarter there was an increase to the reserve for off-balance sheet credit exposures of $1.1 million.

Other operating income for the third quarter of 2026 totaled $12.4 million, compared to $14.6 million in the prior quarter, and $13.5 million in the same quarter last year. The sequential quarter decrease was primarily due to a $2.4 million decrease in income from bank-owned life insurance due to equity market volatility and the impact on corporate-owned life insurance policies.

Other operating expense for the third quarter of 2026 totaled $44.8 million, compared to $46.2 million in the prior quarter, and $47.0 million in the same quarter last year. The decrease from the prior quarter was primarily attributable to decreases in salaries and employee benefits of $1.2 million and other expense of $1.0 million, due to lower deferred compensation expenses. The lower deferred compensation expense was related to equity market performance.

The efficiency ratio was 58.27% in the third quarter of 2026, compared to 59.62% in the prior quarter and 62.84% in the same quarter last year. In the same quarter last year, the adjusted efficiency ratio (non-GAAP) was 60.81%, when excluding the $1.5 million in expenses related to the operations center consolidation.

The effective tax rate for the third quarter of 2026 was 24.5%, compared to 22.6% in the prior quarter, and 21.4% in the same quarter last year. The increase in the Company's effective tax rate was primarily attributable to an increase in pre-tax income and lower tax-exempt income.

Balance Sheet Highlights

As of September 30, 2026, total assets were $7.45 billion, which decreased by $51.5 million or 0.7%, from $7.50 billion at June 30, 2026, and increased $28.1 million, or 0.4%, from $7.42 billion at September 30, 2025.

Total loans, net of deferred fees and costs, were $5.31 billion at September 30, 2026, and remained relatively stable compared to June 30, 2026, and decreased by $54.1 million, or 1.0%, from $5.37 billion at September 30, 2025. The average yield earned on loans during the third quarter of 2026 was 5.01%, compared to 4.96% in the prior quarter and 5.01% in the same quarter last year.

Total deposits were $6.66 billion at September 30, 2026, which decreased by $31.9 million, or 0.5%, from $6.70 billion at June 30, 2026, and increased by $86.2 million, or 1.3%, from $6.58 billion at September 30, 2025. Core deposits, which include demand deposits, savings and money market deposits and time deposits up to $250,000, totaled $6.11 billion at September 30, 2026, generally consistent with $6.12 billion at June 30, 2026, and increased by $127.2 million, or 2.1%, from $5.98 billion at September 30, 2025. The average rate paid on total deposits during the third quarter of 2026 was 0.90%, consistent with 0.90% in the prior quarter, and decreased from 1.02% in the same quarter last year.

Asset Quality

Nonperforming assets totaled $14.0 million, or 0.19% of total assets at September 30, 2026, compared to $16.5 million, or 0.22% of total assets at June 30, 2026 and $14.3 million, or 0.19% of total assets at September 30, 2025.

Net charge-offs in the third quarter of 2026 totaled $2.7 million, or 0.20% of average loans on an annualized basis, consistent with the prior quarter and the same quarter last year.

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

Capital

Total shareholders' equity at September 30, 2026 was $581.4 million, compared to $596.3 million at June 30, 2026 and $588.1 million at September 30, 2025. The decrease in shareholders' equity of $14.9 million, or 2.5% was primarily attributed to a decline in Accumulated Other Comprehensive Income ("AOCI") resulting from a decrease in the fair value of the available-for-sale investment portfolio due to the rise in market interest rates.

During the third quarter of 2026, the Company repurchased 294,110 shares of common stock at a total cost of $11.2 million, or an average price of $38.18 per share. As of September 30, 2026, $22.0 million remained available under the Company's share repurchase authorization.

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

On October 27, 2026, the Board of Directors increased the quarterly cash dividend by 3.3% to $0.31 per share. The dividend will be payable on December 15, 2026, to shareholders of record as of November 30, 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 third quarter of 2026 financial results. Interested parties may listen to the conference by calling 1-833-461-5787 and entering the meeting ID: 104 617 134 or by registering for the webcast at the following link: https://events.q4inc.com/attendee/104617134 The Company's investor relations website, https://ir.cpb.bank, will also include a link to the webcast and a slide presentation.

A replay of the call will be available on the Company's investor relations website until October 28, 2027.

About Central Pacific Financial Corp.

Central Pacific Financial Corp. is a Hawaii-based bank holding company with approximately $7.45 billion in assets as of September 30, 2026. Its primary subsidiary, Central Pacific Bank, operates 27 branches and 56 ATMs in the State of Hawaii. Central Pacific Financial Corp. is listed on the New York Stock Exchange under the symbol "CPF." For additional information, please visit: https://cpb.bank.

Member FDIC

Equal Housing Lender

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 levels, credit losses, net interest margin, liquidity, and other financial items. These statements may also include statements of plans, objectives, and expectations of Central Pacific Financial Corp. (the "Company") or its management or Board of Directors, including those relating to business strategies, use of capital, products or services, technology initiatives, acquisitions, and regulatory developments or actions. In addition, such statements may address future economic performance and anticipated results from our business initiatives and strategic objectives, and statements regarding assumptions underlying or relating to any of the foregoing. Words such as "believe," "plan," "anticipate," "aim," "seek," "expect," "intend," "forecast," "hope," "target," "continue," "remain," "estimate," "will," "should," "may," "could," "would," and other similar expressions are intended to identify FLS, although not all forward-looking statements contain such identifying words.

While we believe that our FLS and the assumptions underlying them are reasonable, such statements are inherently subject to significant risks and uncertainties that are difficult to predict and are beyond our control. Actual results may differ materially from those expressed or implied by such FLS as a result of numerous factors, including, but are not limited to: the persistence or resurgence of current 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, fiscal policy changes, cost-cutting, and other governmental initiatives; disruptions in the economy, including the effects of government shutdown(s) and supply chain disruptions; labor contract disputes, and potential strikes impacting both the U.S. National and Hawaii economies; 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 economies 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 higher unemployment levels, instability in the financial industry, deterioration in the real estate markets, and declines in consumer or business confidence; revisions to estimates of reserve requirements under applicable regulatory and accounting standards; the adverse effects of bank failures on customer confidence, deposit behavior, liquidity, and regulatory responses; the adverse 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; the impact of legislative and regulatory developments, changing capital and consumer protection rules, and new regulations affecting our operations and competitiveness; the costs and effects of legal and regulatory proceedings, including actual or threatened litigation and the results of governmental and regulatory examinations and orders, as well as the costs of ongoing or potential compliance efforts; the effect of accounting standard changes adopted by regulatory agencies, the Securities and Exchange Commission ("SEC"), the Public Company Accounting Oversight Board ("PCAOB"), or the Financial Accounting Standards Board ("FASB"), and the cost and resources associated with implementation; changes in trade, tariff, monetary, or fiscal policies and laws, including actions by the Board of Governors of the Federal Reserve System; increased competition from banks, credit unions, fintech companies, nonbank lenders, and other financial service providers; market volatility and monetary fluctuations; declines in our market capitalization or changes in the price of the Company's common stock; the effects and cost of acquisitions, dispositions, strategic investments, business combinations, restructurings, or other strategic transactions we may pursue 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 our internal control over financial reporting or disclosure controls and procedures, and our ability to remediate them; our ability to achieve efficiency ratio improvement goals; changes in management, directors, key personnel, organizational structure, compensation programs, employee benefit plans, or our ability to attract and retain qualified personnel; risks related to the United States fiscal debt, deficit and budget uncertainties; and our ability to successfully manage the risks associated with any of the foregoing items.

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

Nine Months Ended

(Dollars in thousands,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

except for per share amounts)

2026

2025

2026

2025

CONDENSED INCOME STATEMENT

Net interest income

64,473

62,834

61,358

62,087

61,301

188,665

178,796

Provision for credit losses

1,892

4,382

2,353

2,396

4,157

8,627

13,316

Total other operating income

12,357

14,620

11,574

14,201

13,507

38,551

37,616

Total other operating expense

44,770

46,180

43,666

45,680

47,009

134,616

133,027

Income tax expense

7,392

6,070

6,188

5,337

5,068

19,650

15,464

Net income

22,776

20,822

20,725

22,875

18,574

64,323

54,605

Basic earnings per share

0.89

0.80

0.79

0.86

0.69

2.48

2.02

Diluted earnings per share

0.88

0.80

0.78

0.85

0.69

2.46

2.01

Dividends declared per share

0.30

0.29

0.28

0.27

0.88

0.81

PERFORMANCE RATIOS

Return on average assets (ROA) [1]

1.22

1.12

1.25

1.01

1.15

0.99

Return on average equity (ROE) [1]

15.28

13.94

13.90

15.41

12.89

14.37

12.99

Average equity to average assets

7.99

8.03

8.07

8.12

7.85

8.03

7.63

Efficiency ratio [2]

58.27

59.62

59.87

59.88

62.84

59.25

61.47

Net interest margin (NIM) [1]

3.62

3.57

3.53

3.56

3.49

3.57

3.41

Dividend payout ratio [3]

34.09

36.25

37.18

32.94

39.13

35.77

40.30

SELECTED AVERAGE BALANCES

Average loans, including loans held for sale

5,297,112

5,300,949

5,268,482

5,328,499

5,332,656

5,288,952

5,317,481

Average interest-earning assets

7,105,807

7,076,331

7,022,759

6,964,796

7,011,753

7,068,604

7,016,957

Average assets

7,463,644

7,433,822

7,396,084

7,310,098

7,341,281

7,431,431

7,347,895

Average deposits

6,663,050

6,630,910

6,592,361

6,499,119

6,509,692

6,629,032

6,524,563

Average interest-bearing liabilities

4,898,094

4,876,776

4,846,057

4,757,686

4,807,225

4,873,833

4,842,703

Average equity

596,147

597,299

596,524

593,750

576,531

596,655

560,671

[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). See Reconciliation of Non-GAAP Financial Measures in Table 10.

[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,

2026

2025

REGULATORY CAPITAL RATIOS

Central Pacific Financial Corp.

Leverage ratio

9.7

9.8

9.7

Common equity tier 1 capital ratio

12.7

12.6

12.7

12.6

Tier 1 risk-based capital ratio

13.6

13.5

13.6

13.5

Total risk-based capital ratio

14.8

14.7

14.8

15.7

Central Pacific Bank

Leverage ratio

9.6

9.7

10.2

Common equity tier 1 capital ratio

13.4

13.5

14.1

Tier 1 risk-based capital ratio

13.4

13.5

14.1

Total risk-based capital ratio

14.6

14.7

14.6

14.7

15.3

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(Dollars in thousands, except for per share amounts)

2026

2025

BALANCE SHEET

Total loans, net of deferred fees and costs

5,313,070

5,308,322

5,320,349

5,289,096

5,367,202

Total assets

7,449,610

7,501,060

7,495,363

7,409,241

7,421,478

Total deposits

6,663,862

6,695,754

6,699,354

6,609,764

6,577,684

Long-term debt

76,547

131,527

Total equity

581,437

596,331

593,879

592,581

588,066

Tangible common equity to tangible assets [4]

7.80

7.95

7.92

8.00

7.92

ASSET QUALITY

Allowance for credit losses (ACL)

59,841

60,581

59,933

59,621

60,393

Nonaccrual loans

13,037

15,622

14,524

14,386

14,319

Nonperforming assets (NPA)

14,010

16,546

14,524

14,386

14,319

Ratio of ACL to total loans

1.13

1.14

1.13

Ratio of NPA to total assets

0.19

0.22

0.19

PER SHARE OF COMMON STOCK OUTSTANDING

Book value per common share

22.79

23.11

22.74

22.47

21.86

Closing market price per common share

35.89

38.20

31.96

31.16

30.34

[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)

2026

2025

ASSETS

Cash and due from financial institutions

116,691

96,678

88,880

88,200

102,859

Interest-bearing deposits in other financial institutions

242,725

286,593

317,716

290,453

207,034

Investment securities:

Debt securities available-for-sale, at fair value

806,230

835,378

779,156

748,212

758,683

Debt securities held-to-maturity, at amortized cost; fair value of: $434,634 at September 30, 2026, $474,928 at June 30, 2026, $486,018 at March 31, 2026, $495,845 at December 31, 2025, and $500,859 at September 30, 2025

535,182

545,215

554,548

562,391

570,886

Total investment securities

1,341,412

1,380,593

1,333,704

1,310,603

1,329,569

Loans held for sale

777

2,364

2,536

1,084

1,557

Loans, net of deferred fees and costs

5,313,070

5,308,322

5,320,349

5,289,096

5,367,202

Less: allowance for credit losses

(59,841

)

(60,581

)

(59,933

)

(59,621

)

(60,393

)

Loans, net of allowance for credit losses

5,253,229

5,247,741

5,260,416

5,229,475

5,306,809

Premises and equipment, net

100,305

100,231

99,942

100,620

100,992

Accrued interest receivable

25,176

23,419

24,320

23,559

25,232

Investment in unconsolidated entities

56,051

57,738

59,548

61,349

52,987

Other real estate owned

973

924

—

Mortgage servicing rights

8,212

8,364

8,520

8,672

8,459

Bank-owned life insurance

183,444

185,134

181,298

180,717

179,743

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

24,818

24,744

24,682

25,836

25,215

Right-of-use lease assets

22,296

23,311

24,320

24,822

25,570

Other assets

73,501

63,226

69,481

63,851

55,452

Total assets

7,449,610

7,501,060

7,495,363

7,409,241

7,421,478

LIABILITIES

Deposits:

Noninterest-bearing demand

1,897,421

1,917,502

1,897,593

1,891,198

1,903,614

Interest-bearing demand

1,423,298

1,407,574

1,428,323

1,388,107

1,340,725

Savings and money market

2,398,449

2,376,831

2,378,834

2,346,522

2,292,881

Time

944,694

993,847

994,604

983,937

1,040,464

Total deposits

6,663,862

6,695,754

6,699,354

6,609,764

6,577,684

Long-term debt, net of unamortized debt issuance costs

76,547

131,527

Lease liabilities

23,045

24,063

25,073

25,549

26,288

Accrued interest payable

5,397

6,044

6,433

7,068

8,604

Other liabilities

99,322

102,321

94,077

97,732

89,309

Total liabilities

6,868,173

6,904,729

6,901,484

6,816,660

6,833,412

EQUITY

Shareholders' equity:

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

—

Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 25,513,202 at September 30, 2026, 25,806,418 at June 30, 2026, 26,115,229 at March 31, 2026, 26,374,967 at December 31, 2025, and 26,903,512 at September 30, 2025

348,135

359,364

370,633

381,158

397,479

Additional paid-in capital

108,239

107,534

106,501

107,308

106,675

Retained earnings

232,878

217,789

204,494

191,383

175,968

Accumulated other comprehensive loss

(107,815

)

(88,356

)

(87,749

)

(87,268

)

(92,056

)

Total equity

581,437

596,331

593,879

592,581

588,066

Total liabilities and equity

7,449,610

7,501,060

7,495,363

7,409,241

7,421,478

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)

2026

2025

2026

2025

Interest income:

Interest and fees on loans

66,695

65,553

64,323

66,897

67,222

196,571

197,009

Interest and dividends on investment securities:

Taxable investment securities

10,277

9,732

9,210

9,401

9,776

29,219

29,448

Tax-exempt investment securities

685

684

682

696

709

2,051

2,126

Interest on deposits in other financial institutions

2,558

2,331

2,500

1,501

1,857

7,389

5,595

Dividend income on FHLB and FRB stock

413

389

381

382

395

1,183

1,107

Total interest income

80,628

78,689

77,096

78,877

79,959

236,413

235,285

Interest expense:

Interest on deposits:

Interest-bearing demand

765

757

522

441

490

2,044

1,385

Savings and money market

8,009

7,554

7,502

8,004

8,898

23,065

26,174

Time

6,308

6,488

6,665

6,999

7,410

19,461

23,133

Interest on FHLB advances and other short-term borrowings

—

Interest on long-term debt

1,072

1,056

1,049

1,346

1,860

3,177

5,797

Total interest expense

16,155

15,855

15,738

16,790

18,658

47,748

56,489

Net interest income

64,473

62,834

61,358

62,087

61,301

188,665

178,796

Provision for credit losses

1,892

4,382

2,353

2,396

4,157

8,627

13,316

Net interest income after provision for credit losses

62,581

58,452

59,005

59,691

57,144

180,038

165,480

Other operating income:

Mortgage banking income

548

693

649

1,186

958

1,890

2,299

Service charges on deposit accounts

2,450

2,250

2,299

2,423

2,330

6,999

6,601

Other service charges and fees

6,516

6,330

5,789

5,570

6,472

18,635

18,195

Income from fiduciary activities

1,614

1,580

1,423

1,529

1,547

4,617

4,672

Income from bank-owned life insurance

584

2,999

399

2,816

1,879

3,982

4,636

Net loss on sales of investment securities

—

(30

)

—

(30

)

Other

645

768

1,015

677

351

2,428

1,243

Total other operating income

12,357

14,620

11,574

14,201

13,507

38,551

37,616

Other operating expense:

Salaries and employee benefits

24,148

25,372

23,085

24,490

24,749

72,605

69,264

Net occupancy

4,671

4,299

4,322

4,432

4,598

13,292

13,243

Computer software

5,025

4,952

5,045

5,442

5,151

15,022

15,185

Legal and professional services

2,825

2,607

2,384

2,878

2,669

7,816

8,340

Equipment

822

807

825

867

2,451

2,899

Advertising

813

762

997

943

730

2,572

2,449

Communication

983

840

823

495

791

2,646

2,725

Other

5,483

6,526

6,203

6,175

7,454

18,212

18,922

Total other operating expense

44,770

46,180

43,666

45,680

47,009

134,616

133,027

Income before income taxes

30,168

26,892

26,913

28,212

23,642

83,973

70,069

Income tax expense

7,392

6,070

6,188

5,337

5,068

19,650

15,464

Net income

22,776

20,822

20,725

22,875

18,574

64,323

54,605

Per common share data:

Basic earnings per share

0.89

0.80

0.79

0.86

0.69

2.48

2.02

Diluted earnings per share

0.88

0.80

0.78

0.85

0.69

2.46

2.01

Cash dividends declared

0.30

0.29

0.28

0.27

0.88

0.81

Basic weighted average shares outstanding

25,676,279

25,999,122

26,277,749

26,687,551

26,968,163

25,982,180

27,014,059

Diluted weighted average shares outstanding

25,817,417

26,109,241

26,414,880

26,827,551

27,083,280

26,111,724

27,118,824

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

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

(Unaudited)

TABLE 4

Three Months Ended

September 30, 2026

June 30, 2026

September 30, 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

272,554

3.72

2,558

253,598

3.69

2,331

167,247

4.41

1,857

Investment securities:

Taxable [1]

1,376,837

2.98

10,277

1,362,100

2.86

9,732

1,348,314

2.90

9,776

Tax-exempt [1] [3]

134,512

2.56

867

134,964

2.56

866

138,470

2.59

898

Total investment securities

1,511,349

2.94

11,144

1,497,064

2.83

10,598

1,486,784

2.87

10,674

Loans, including loans held for sale [2]

5,297,112

5.01

66,695

5,300,949

4.96

65,553

5,332,656

5.01

67,222

FHLB and FRB stock

24,792

6.66

413

24,720

6.28

389

25,066

6.30

395

Total interest-earning assets

7,105,807

4.52

80,810

7,076,331

4.47

78,871

7,011,753

4.55

80,148

Noninterest-earning assets

357,837

357,491

329,528

Total assets

7,463,644

7,433,822

7,341,281

LIABILITIES AND EQUITY

Interest-bearing liabilities:

Interest-bearing demand deposits

1,444,639

0.21

765

1,442,933

0.21

757

1,358,837

0.14

490

Savings and money market deposits

2,406,350

1.32

8,009

2,367,169

1.28

7,554

2,293,452

1.54

8,898

Time deposits up to $250,000

404,823

2.05

2,096

428,642

2.14

2,290

437,192

2.28

2,509

Time deposits over $250,000

565,681

2.95

4,212

561,485

3.00

4,198

586,251

3.32

4,901

Total interest-bearing deposits

4,821,493

1.24

15,082

4,800,229

1.24

14,799

4,675,732

1.43

16,798

FHLB advances and other short-term borrowings

4.20

—

Long-term debt

76,547

5.55

1,072

76,547

5.53

1,056

131,493

5.61

1,860

Total interest-bearing liabilities

4,898,094

1.31

16,155

4,876,776

1.30

15,855

4,807,225

1.54

18,658

Noninterest-bearing deposits

1,841,557

1,830,681

1,833,960

Other liabilities

127,846

129,066

123,565

Total liabilities

6,867,497

6,836,523

6,764,750

Total equity

596,147

597,299

576,531

Total liabilities and equity

7,463,644

7,433,822

7,341,281

Net interest income (taxable-equivalent)

64,655

63,016

61,490

Taxable-equivalent adjustment [3]

(182

)

(182

)

(189

)

Net interest income (GAAP)

64,473

62,834

61,301

Interest rate spread

3.21

3.17

3.01

Net interest margin (taxable-equivalent) [4]

3.62

3.57

3.49

[1] At amortized cost.

[2] Includes nonaccrual loans.

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

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

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

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

(Unaudited)

TABLE 5

Nine Months Ended

September 30, 2026

September 30, 2025

Average

(Dollars in thousands)

Balance

Yield/Rate

Interest

Balance

Yield/Rate

Interest

ASSETS

Interest-earning assets:

Interest-bearing deposits in other financial institutions

267,004

3.70

7,389

169,066

4.42

5,595

Investment securities:

Taxable [1]

1,352,766

2.88

29,219

1,367,968

2.87

29,448

Tax-exempt [1] [3]

134,995

2.56

2,596

139,050

2.58

2,691

Total investment securities

1,487,761

2.85

31,815

1,507,018

2.84

32,139

Loans, including loans held for sale [2]

5,288,952

4.97

196,571

5,317,481

4.95

197,009

FHLB and FRB stock

24,887

6.34

1,183

23,392

6.31

1,107

Total interest-earning assets

7,068,604

4.48

236,958

7,016,957

4.49

235,850

Noninterest-earning assets

362,827

330,938

Total assets

7,431,431

7,347,895

LIABILITIES AND EQUITY

Interest-bearing liabilities:

Interest-bearing demand deposits

1,431,951

0.19

2,044

1,357,095

0.14

1,385

Savings and money market deposits

2,381,708

1.29

23,065

2,304,708

1.52

26,174

Time deposits up to $250,000

421,967

2.13

6,717

444,726

2.37

7,887

Time deposits over $250,000

561,642

3.03

12,744

597,876

3.41

15,246

Total interest-bearing deposits

4,797,268

1.24

44,570

4,704,405

1.44

50,692

FHLB advances and other short-term borrowings

4.20

—

Long-term debt

76,547

5.55

3,177

138,298

5.60

5,797

Total interest-bearing liabilities

4,873,833

1.31

47,748

4,842,703

1.56

56,489

Noninterest-bearing deposits

1,831,764

1,820,158

Other liabilities

129,179

124,363

Total liabilities

6,834,776

6,787,224

Total equity

596,655

560,671

Total liabilities and equity

7,431,431

7,347,895

Net interest income (taxable-equivalent)

189,210

179,361

Taxable-equivalent adjustment [3]

(545

)

(565

)

Net interest income (GAAP)

188,665

178,796

Interest rate spread

3.17

2.93

Net interest margin (taxable-equivalent) [4]

3.57

3.41

[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%.

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Loans

(Unaudited)

TABLE 6

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(Dollars in thousands)

2026

2025

Commercial and industrial

578,574

590,404

590,810

594,592

608,814

Construction

217,144

211,007

204,368

213,191

217,610

Residential mortgage

1,802,348

1,815,342

1,806,965

1,839,191

1,839,535

Home equity

568,114

577,283

582,380

600,082

610,889

Commercial mortgage

1,713,014

1,686,361

1,703,760

1,594,433

1,613,187

Consumer

433,876

427,925

432,066

447,607

477,167

Total loans, net of deferred fees and costs

5,313,070

5,308,322

5,320,349

5,289,096

5,367,202

Less: Allowance for credit losses

(59,841

)

(60,581

)

(59,933

)

(59,621

)

(60,393

)

Loans, net of allowance for credit losses

5,253,229

5,247,741

5,260,416

5,229,475

5,306,809

Deposits

(Unaudited)

TABLE 7

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

(Dollars in thousands)

2026

2025

Noninterest-bearing demand

1,897,421

1,917,502

1,897,593

1,891,198

1,903,614

Interest-bearing demand

1,423,298

1,407,574

1,428,323

1,388,107

1,340,725

Savings and money market

2,398,449

2,376,831

2,378,834

2,346,522

2,292,881

Time deposits up to $250,000

389,305

421,811

429,564

433,629

444,005

Core deposits

6,108,473

6,123,718

6,134,314

6,059,456

5,981,225

Other time deposits greater than $250,000

438,230

441,059

431,013

412,188

458,339

Government time deposits

117,159

130,977

134,027

138,120

Total time deposits greater than $250,000

555,389

572,036

565,040

550,308

596,459

Total deposits

6,663,862

6,695,754

6,699,354

6,609,764

6,577,684

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)

2026

2025

Nonaccrual loans:

Commercial and industrial

138

192

490

591

357

Residential mortgage

9,620

9,268

10,518

10,572

11,413

Home equity

2,673

5,619

2,986

2,608

2,119

Consumer

606

543

530

615

430

Total nonaccrual loans

13,037

15,622

14,524

14,386

14,319

Other real estate owned ("OREO"):

Residential mortgage

973

924

—

Total OREO

973

924

—

Total nonperforming assets ("NPAs")

14,010

16,546

14,524

14,386

14,319

Accruing loans 90+ days past due:

Residential mortgage

—

664

1,159

Home equity

—

485

—

Consumer

521

286

290

403

349

Total accruing loans 90+ days past due

521

286

290

1,552

1,508

Total NPAs and accruing loans 90+ days past due

14,531

16,832

14,814

15,938

15,827

Ratio of total nonaccrual loans to total loans

0.25

0.29

0.27

Ratio of total NPAs to total assets

0.19

0.22

0.19

Ratio of total NPAs to total loans and OREO

0.26

0.31

0.27

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

0.27

0.32

0.28

0.30

0.29

Quarter-to-quarter changes in NPAs:

Balance at beginning of quarter

16,546

14,524

14,386

14,319

14,895

Additions

2,136

4,202

2,094

2,549

838

Reductions:

Payments

(663

)

(782

)

(284

)

(397

)

(286

)

Return to accrual status

(2,704

)

(16

)

(883

)

(1,098

)

(821

)

Charge-offs, valuation adjustments and other reductions

(1,305

)

(1,382

)

(789

)

(987

)

(307

)

Total reductions

(4,672

)

(2,180

)

(1,956

)

(2,482

)

(1,414

)

Balance at end of quarter

14,010

16,546

14,524

14,386

14,319

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)

2026

2025

2026

2025

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

Balance at beginning of period

60,581

59,933

59,621

60,393

59,611

59,621

59,182

Provision for credit losses on loans

1,929

3,304

2,724

1,685

3,440

7,957

11,155

Charge-offs:

Commercial and industrial

(885

)

(1,353

)

(1,056

)

(678

)

(1,071

)

(3,294

)

(4,509

)

Residential mortgage

—

(23

)

—

(23

)

—

Consumer

(2,666

)

(2,283

)

(2,301

)

(2,831

)

(2,824

)

(7,250

)

(8,665

)

Total charge-offs

(3,551

)

(3,659

)

(3,357

)

(3,509

)

(3,895

)

(10,567

)

(13,174

)

Recoveries:

Commercial and industrial

284

198

175

266

204

657

570

Construction

—

Residential mortgage

Home equity

Consumer

586

789

754

767

1,016

2,129

2,611

Total recoveries

882

1,003

945

1,052

1,237

2,830

3,230

Net charge-offs

(2,669

)

(2,656

)

(2,412

)

(2,457

)

(2,658

)

(7,737

)

(9,944

)

Balance at end of period

59,841

60,581

59,933

59,621

60,393

59,841

60,393

Average loans, net of deferred fees and costs

5,297,112

5,300,949

5,268,482

5,328,499

5,332,656

5,288,952

5,317,481

Ratio of annualized net charge-offs to average loans

0.20

0.18

0.20

0.25

Ratio of ACL to total loans

1.13

1.14

1.13

CENTRAL PACIFIC FINANCIAL CORP. AND SUBSIDIARIES

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

TABLE 10

To supplement its consolidated financial information, the Company utilizes certain non-GAAP financial measures. These measures are not intended to be considered in isolation or as a substitute for comparable GAAP results. The Company believes these non-GAAP financial measures provide meaningful insight to investors and other stakeholders in understanding its financial performance and position, by excluding certain transactions that may be non-recurring, non-operational, or not indicative of ongoing results. The Company also 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. In addition, 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 titled measures reported by other companies. The results for the three and nine months ended September 30, 2026 were not materially impacted by items outside of the normal course of business.

Non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. The following reconciling adjustments from GAAP to non-GAAP adjusted financial measures include a 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.

Management does not consider this transaction to be representative of the Company's core operating performance. The related income tax effect was calculated using an assumed effective tax rate of 23%.

Three Months Ended

September 30, 2026

September 30, 2025

(Dollars in thousands,

GAAP

Non-GAAP

GAAP

Non-GAAP

except per share data)

Reported

Adjustment

Adjusted

Reported

Adjustment

Adjusted

Financial measures:

Net income

22,776

—

22,776

18,574

1,167

19,741

Diluted earnings per share ("EPS")

0.88

—

0.88

0.69

0.04

0.73

Efficiency ratio (non-GAAP)

58.27

—

58.27

62.84

(2.03

60.81

Return on average assets ("ROA")

1.22

—

1.22

1.01

0.07

1.08

Return on average equity ("ROE")

15.28

—

15.28

12.89

0.78

13.67

As of September 30, 2026 and 2025:

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

7.80

—

7.80

7.92

0.02

7.94

Nine Months Ended

September 30, 2026

September 30, 2025

(Dollars in thousands,

GAAP

Non-GAAP

GAAP

Non-GAAP

except per share data)

Reported

Adjustment

Adjusted

Reported

Adjustment

Adjusted

Financial measures:

Net income

64,323

—

64,323

54,605

1,167

55,772

Diluted EPS

2.46

—

2.46

2.01

0.05

2.06

Efficiency ratio (non-GAAP)

59.25

—

59.25

61.47

(0.70

60.77

ROA

1.15

—

1.15

0.99

0.02

1.01

ROE

14.37

—

14.37

12.99

0.26

13.25

As of September 30, 2026 and 2025:

TCE ratio (non-GAAP)

7.80

—

7.80

7.92

0.02

7.94

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

Nine Months Ended

(Dollars in thousands, except per share data)

Sep 30, 2026

Sep 30, 2025

Sep 30, 2026

Sep 30, 2025

GAAP net income

22,776

18,574

64,323

54,605

Add: Expenses related to the consolidation of operations center

—

1,516

—

1,516

Non-GAAP pre-tax adjustments

—

1,516

—

1,516

Less: Income tax effect (assumes 23% ETR)

—

(349

)

—

(349

)

Non-GAAP adjustments, net of tax

—

1,167

—

1,167

Adjusted net income (non-GAAP)

22,776

19,741

64,323

55,772

Diluted weighted average shares outstanding

25,817,417

27,083,280

26,111,724

27,118,824

GAAP diluted EPS

0.88

0.69

2.46

2.01

Add: Non-GAAP adjustments, net of tax

—

0.04

—

0.05

Adjusted diluted EPS (non-GAAP)

0.88

0.73

2.46

2.06

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

Nine Months Ended

(Dollars in thousands)

Sep 30, 2026

Sep 30, 2025

Sep 30, 2026

Sep 30, 2025

Total other operating expense

44,770

47,009

134,616

133,027

Less: Expenses related to the consolidation of operations center

—

(1,516

)

—

(1,516

)

Non-GAAP other operating expense adjustments

—

(1,516

)

—

(1,516

)

Adjusted total other operating expense (non-GAAP)

44,770

45,493

134,616

131,511

Net interest income

64,473

61,301

188,665

178,796

Total other operating income

12,357

13,507

38,551

37,616

Total revenue

76,830

74,808

227,216

216,412

Efficiency ratio (non-GAAP)

58.27

62.84

59.25

61.47

Less: Non-GAAP pre-tax adjustments

—

(2.03

—

(0.70

Adjusted efficiency ratio (non-GAAP)

58.27

60.81

59.25

60.77

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)

Sep 30, 2026

Sep 30, 2025

Sep 30, 2026

Sep 30, 2025

Average assets

7,463,644

7,341,281

7,431,431

7,347,895

Add: Non-GAAP adjustments, net of tax

—

1,167

—

389

Adjusted average assets (non-GAAP)

7,463,644

7,342,448

7,431,431

7,348,284

ROA

1.22

1.01

1.15

0.99

Add: Non-GAAP adjustments, net of tax

—

0.07

—

0.02

Adjusted ROA (non-GAAP)

1.22

1.08

1.15

1.01

Average equity

596,147

576,531

596,655

560,671

Add: Non-GAAP adjustments, net of tax

—

1,167

—

389

Adjusted average equity (non-GAAP)

596,147

577,698

596,655

561,060

ROE

15.28

12.89

14.37

12.99

Add: Non-GAAP adjustments, net of tax

—

0.78

—

0.26

Adjusted ROE (non-GAAP)

15.28

13.67

14.37

13.25

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)

Sep 30, 2026

Jun 30, 2026

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Total equity

581,437

596,331

593,879

592,581

588,066

Less: Intangible assets

—

TCE

581,437

596,331

593,879

592,581

588,066

Add: Non-GAAP adjustments, net of tax

—

1,167

Adjusted TCE (non-GAAP)

581,437

596,331

593,879

593,748

589,233

Total assets

7,449,610

7,501,060

7,495,363

7,409,241

7,421,478

Less: Intangible assets

—

Tangible assets

7,449,610

7,501,060

7,495,363

7,409,241

7,421,478

Add: Non-GAAP adjustments, net of tax

—

1,167

Adjusted tangible assets (non-GAAP)

7,449,610

7,501,060

7,495,363

7,410,408

7,422,645

TCE ratio (non-GAAP)

7.80

7.95

7.92

8.00

7.92

Add: Non-GAAP adjustments, net of tax

—

0.01

0.02

Adjusted TCE ratio (non-GAAP)

7.80

7.95

7.92

8.01

7.94