Central Pacific Financial (CPF) Q4 2025 earnings summary

Executive summary

• Reported net income of $22.9M ($0.85/diluted share) for Q4 and $77.5M ($2.86/diluted share) for 2025, both up significantly year-over-year.

• Achieved 45% year-over-year growth in net income and EPS for 2025, with non-GAAP growth of 24%.

• Recognized as one of America's Best Regional Banks for 2026 and named to Newsweek's list for the fifth consecutive year.

• Efficiency ratio improved to 59.88% in Q4 and 61.05% for the year, reflecting better cost management.

• Expanded international strategy via partnership with Korea Investment & Securities to grow deposit opportunities.

Financial highlights

• Q4 net income was $22.9M ($0.85/diluted share), up from $18.6M ($0.69/diluted share) in prior quarter; full-year net income reached $77.5M ($2.86/diluted share).

• Net interest income for Q4 was $62.1M, up 1.3% sequentially and 11.3% year-over-year; NIM rose to 3.56% in Q4 and 3.45% for the year.

• Core deposits grew by $78M in Q4; average deposit rate paid declined to 0.94%.

• Total loan portfolio declined by $78M in Q4, with full-year loans down $44M due to consumer portfolio reductions.

• Efficiency ratio improved to 59.88% in Q4 from 68.91% in 2024.

Outlook and guidance

• Guiding to low single-digit % growth in net loans and deposits for 2026.

• Expecting 4%-6% increase in net interest income and 1%-2% growth in other operating income for 2026.

• Anticipate NIM expansion in 2026, but at a slower pace; Q1 NIM expected to expand 2-5 bps.

• Board authorized a new $55M share repurchase program for 2026 and increased the quarterly dividend by 3.6% to $0.29 per share.

• Operating expenses projected to rise 2.5%-3.5% in 2026.