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This article first appeared on GuruFocus.
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Net Income (Q4 2025): $22.9 million or $0.85 per diluted share.
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Net Income (Full Year 2025): $77.5 million or $2.86 per diluted share.
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Core Earnings Per Share Increase: 24% from the prior year.
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Return on Average Assets (Q4 2025): 1.25%.
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Return on Average Equity (Q4 2025): 15.41%.
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Net Interest Income (Q4 2025): $62.1 million, a 1.3% increase from the prior quarter.
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Net Interest Margin (Q4 2025): Expanded by 7 basis points to 3.56%.
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Total Core Deposits Growth (Q4 2025): Increased by $78 million.
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Average Rate Paid on Total Deposits (Q4 2025): Declined to 94 basis points from 102 basis points.
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Total Loan Portfolio Decline (Q4 2025): Decreased by $78 million.
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Weighted Average New Loan Yield (Q4 2025): 6.8%.
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Total Other Operating Income (Q4 2025): $14.2 million, up $0.7 million from last quarter.
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Total Other Operating Expenses (Q4 2025): $45.7 million, down $1.3 million from the previous quarter.
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Effective Tax Rate (Q4 2025): 18.9%.
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Share Repurchase (Q4 2025): Approximately 530,000 shares at a total cost of $16.3 million.
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Cash Dividend (Q1 2026): $0.29 per share, an increase of 3.6% from the prior quarter.
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Nonperforming Assets (Q4 2025): $14.4 million or 19 basis points of total assets.
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Provision Expense (Q4 2025): $2.4 million.
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Total Risk-Based Capital (Q4 2025): 14.8%.
Release Date: January 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Central Pacific Financial Corp (NYSE:CPF) was named one of America’s best regional banks for 2026, highlighting its strong franchise and customer trust.
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The company reported a 24% increase in core earnings per share from the prior year, demonstrating strong operating momentum.
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CPF successfully grew core deposits by $78 million in the fourth quarter, with a decline in the average rate paid on total deposits.
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The company expanded its international strategy through a strategic partnership with Korea Investment & Securities, enhancing its international reach.
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CPF’s net interest income rose by 1.3% in the fourth quarter, with a net interest margin expansion of 7 basis points to 3.56%.
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Total loan portfolio declined by $78 million in the fourth quarter due to large construction and commercial mortgage loan payoffs.
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The company experienced a $44 million decline in total loans for the full year 2025, driven by decreases in residential mortgage, home equity, and consumer portfolios.
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Provision expense for the quarter was $2.4 million, reflecting a need to add to the allowance and reserve for unfunded commitments.
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The company’s guidance for 2026 indicates only low single-digit percentage growth in net loans and deposits.
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There is a cautious outlook on loan growth due to delayed closings and a seasonally slower first quarter expected in 2026.
Q: Can you provide more details on the delay in new loan fundings and its impact on provisioning in the first half of the year? A: David Morimoto, Vice Chairman and Chief Operating Officer, explained that some loan closings were delayed to the first half of the year, with a heavier weighting towards the second quarter. These include both funded deals and construction projects, which will impact provisioning accordingly.
Q: What was the spot rate on deposit costs at the end of the year? A: Dayna Matsumoto, Executive VP and CFO, stated that the deposit spot rate at the end of the year was 89 basis points.
Q: Is the company planning to complete the share buyback in 2026? A: Dayna Matsumoto confirmed that the company plans to be active in the share buyback throughout 2026, leveraging strong earnings and capital levels to return capital that cannot be used for organic growth.
Q: How do you view the outlook for loan growth in Hawaii and the mix between Hawaii and the Mainland? A: David Morimoto noted that while the University of Hawaii Economic Research Organization (UHERO) upgraded its forecast, growth opportunities remain primarily in commercial areas. The balance between Hawaii and Mainland growth will depend on risk-return opportunities, with 2026 expected to be a stronger growth year than 2025.
Q: How is the competitive landscape for deposits on the islands, and what is driving core deposit growth? A: David Morimoto explained that core deposit growth is driven by both new customer acquisition and deepening relationships with existing customers. Initiatives such as disciplined calling efforts and a focus on customer primacy are expected to lead to stronger core deposit growth in 2026.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.