Central Pacific Financial (CPF) investor relations material

Executive summary

• Net income for Q2 2026 was $20.8 million, or $0.80 per diluted share, with ROA at 1.12% and ROE at 13.94%, reflecting stable profitability and strong capital management.

• Net interest margin rose to 3.57%, up 4bps sequentially and 13bps year-over-year, driven by higher loan and securities balances.

• Recognized as Hawaii's top-ranked company by TIME and Forbes, and named Best Bank in Hawaii by Forbes, Newsweek, and TIME.

• Continued investment in talent, technology, automation, and data to drive future efficiencies.

• Board declared a Q3 cash dividend of $0.30 per share, a 3.4% increase from the prior quarter.

Financial highlights

• Net interest income was $62.8 million, up 2.4% sequentially and 5.1% year-over-year; net interest margin at 3.57%.

• Total revenue grew to $77 million in Q2 2026, a 13% increase from 4Q24.

• Efficiency ratio improved to 59.62%, down from 66% in 4Q24.

• Other operating income totaled $14.6 million, up from $11.6 million in Q1 2026, mainly due to BOLI income.

• Other operating expense was $46.2 million, up from $43.7 million in Q1 2026, driven by higher salaries and benefits.

Outlook and guidance

• Net interest margin expected to remain steady to slightly higher in the second half of the year.

• Full-year net interest income guidance is a 4%-6% increase over the prior year.

• Other operating expense expected to grow by 2.5%-3.5% for the full year, with forecast at the lower end.

• Loan and deposit growth anticipated in the low single-digit range for the full year.

• Capital priorities include sustaining a ~40% dividend payout ratio, funding accretive loan growth, and opportunistic share repurchases.