Central Pacific Financial (CPF) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $18.6 million ($0.69 per diluted share), with adjusted net income of $19.7 million ($0.73 per share) excluding $1.5 million in one-time consolidation costs.

• Net interest margin rose to 3.49%, up 5 bps sequentially and 42 bps year-over-year, with net interest income up 2.5% sequentially and 13.8% year-over-year.

• Loans and deposits both grew sequentially, with total loans at $5.37 billion and deposits at $6.64 billion as of September 30, 2025.

• Announced a strategic partnership with Kyoto Shinkin Bank to expand international reach and reinforce Hawaii-Japan business ties.

• Increased quarterly dividend to $0.28 per share and repurchased 78,000 shares for $2.3 million in Q3; $23 million remains authorized for repurchase.

Financial highlights

• Net interest income for Q3 2025 was $61.3 million; total other operating income was $13.5 million, and other operating expenses were $47.0 million, including $1.5 million in one-time costs.

• Efficiency ratio was 62.84% (60.81% adjusted); tangible common equity ratio was 7.92%.

• Total deposits reached $6.64 billion, with 29% non-interest bearing and core deposits representing 90.9% of total deposits.

• Loan portfolio yield improved to 5.01%, with 80% of loans secured by real estate.

• Allowance for credit losses on loans was $60.4 million (1.13% of total loans); nonperforming assets were $14.3 million (0.19% of total assets).

Outlook and guidance

• Full-year 2025 loan growth expected in the low single-digit percentage range; deposit growth for 2025 expected to be flat, with optimism for low single-digit growth in 2026.

• Fourth quarter net interest income guidance: $62–$63 million; net interest margin expected to increase by 5–10 bps.

• Other operating income guidance for Q4: $12–$13 million; operating expense guidance: $45–$46 million.

• Well positioned for a declining rate environment, with 29% of the loan portfolio and over 90% of CDs repricing within one year.

• Management expects continued pressure from economic headwinds, including a mild recession forecast for Hawaii and inflationary impacts.