Central Pacific Financial (CPF) investor relations material

Executive summary

• Net income for Q1 2026 was $20.7 million ($0.78 per diluted share), up from $17.8 million in Q1 2025, with ROA at 1.12% and ROE at 13.90%, reflecting strong profitability and disciplined capital allocation.

• Loans grew by $31 million to $5.32 billion, mainly from commercial real estate, and deposits increased $90 million to $6.7 billion, with core deposits representing over 90%.

• Efficiency ratio improved to 59.87%, driven by operational excellence and process improvements.

• Named Hawaii SBA Lender of the Year for 2025 and recognized by Newsweek, Forbes, and Honolulu Star-Advertiser.

• Paid Q1 cash dividend of $0.29 per share and repurchased 321,396 shares for $10.5 million; $44.5 million remains under repurchase authorization.

Financial highlights

• Net interest income was $61.4 million, up 6.3% year-over-year; net interest margin was 3.53%.

• Total assets reached $7.50 billion, loans $5.32 billion, and deposits $6.70 billion as of March 31, 2026.

• Other operating income was $11.6 million, down sequentially due to lower BOLI income and market volatility.

• Other operating expense was $43.7 million, down from the prior quarter, mainly due to lower salaries and legal/professional fees.

• Allowance for credit losses on loans was $59.9 million, or 1.13% of total loans.

Outlook and guidance

• Projecting Q2 NIM of 3.50%-3.55% and full year net interest income to increase 4%-6% over prior year.

• Full year expense growth expected to be modest at 2.5%-3.5% from 2025 normalized.

• CET1 capital target set at 11-12% and TCE at 7.5-8.5%.

• Maintaining 2026 guidance for loan and deposit growth in the low single-digit percentage range.

• Management expects continued sensitivity to Hawaii’s economic conditions, especially real estate and tourism.