Central Pacific Financial Corp
NYSE:CPF
Central Pacific Financial Corp
Central Pacific Financial Corp. is a bank holding company, which engages in the provision of commercial banking services through its wholly owned subsidiary, Central Pacific Bank. The company is headquartered in Honolulu, Hawaii and currently employs 760 full-time employees. The Bank is a commercial bank, which offers a range of banking products and services, including accepting time and demand deposits and originating loans. The firm offers a range of banking services and products to businesses, professionals and individuals. Its loans include commercial loans, construction loans, commercial and residential mortgage loans and consumer loans. Its investment securities portfolio includes mortgage-backed securities (MBS), other debt securities and equity securities. Its MBS portfolio is comprised primarily of residential MBS issued by United States government entities and agencies. The company also offers wealth management products and services, such as non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation and planning services.
Central Pacific Financial Corp. is a bank holding company, which engages in the provision of commercial banking services through its wholly owned subsidiary, Central Pacific Bank. The company is headquartered in Honolulu, Hawaii and currently employs 760 full-time employees. The Bank is a commercial bank, which offers a range of banking products and services, including accepting time and demand deposits and originating loans. The firm offers a range of banking services and products to businesses, professionals and individuals. Its loans include commercial loans, construction loans, commercial and residential mortgage loans and consumer loans. Its investment securities portfolio includes mortgage-backed securities (MBS), other debt securities and equity securities. Its MBS portfolio is comprised primarily of residential MBS issued by United States government entities and agencies. The company also offers wealth management products and services, such as non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation and planning services.
Profitability: Central Pacific Financial delivered strong Q4 results, with net income rising to $22.9 million and EPS of $0.85, both up from the previous quarter.
Margin Expansion: Net interest margin improved by 7 basis points to 3.56% and net interest income rose by 1.3% quarter-over-quarter, driven by disciplined deposit cost management.
Deposit Growth: Core deposits grew by $78 million in Q4, with an ongoing focus on deepening relationships and strategic international partnerships.
Loan Portfolio: Total loans declined by $78 million in Q4 due to large payoffs and delayed fundings, but commercial and construction portfolios grew by 10% year-over-year.
Expense Control: Operating expenses fell by $1.3 million from last quarter, and the company continues to invest selectively in technology while maintaining expense discipline.
Capital Return: The Board increased the quarterly dividend by 3.6% and approved a new $55 million share repurchase authorization for 2026.
Guidance: Management expects low single-digit percentage loan and deposit growth, 4% to 6% net interest income growth, and modest NIM expansion in 2026.
Asset Quality: Credit metrics remain solid, with low nonperforming assets and criticized loans, and a prudent approach to risk and growth continues.
