$CPF

CENTRAL PACIFIC FINANCIAL CORP

CIK:0000701347|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest and dividend income:
Loans, including fees	$ 65,553	$ 65,668	$ 129,876	$ 129,787
Taxable investment securities	9,732	9,871	18,942	19,672
Tax-exempt investment securities	684	709	1,366	1,417
Deposits in other financial institutions	2,331	1,484	4,831	3,738
Dividend income on FRB and FHLB stock	389	388	770	712
Total interest income	78,689	78,120	155,785	155,326
Deposits:
Demand	757	443	1,279	895
Savings and money market	7,554	8,414	15,056	17,276
Time	6,488	7,616	13,153	15,723
Long-term debt	1,056	1,851	2,105	3,937
Total interest expense	15,855	18,324	31,593	37,831
Net interest income	62,834	59,796	124,192	117,495
Provision for credit losses	4,382	4,987	6,735	9,159
Net interest income after provision for credit losses	58,452	54,809	117,457	108,336
Other operating income:
Mortgage banking income	693	744	1,342	1,341
Service charges on deposit accounts	2,250	2,124	4,549	4,271
Other service charges and fees	6,330	5,957	12,119	11,723
Income from fiduciary activities	1,580	1,501	3,003	3,125
Income from bank-owned life insurance	2,999	2,260	3,398	2,757
Other	768	427	1,783	892
Total other operating income	14,620	13,013	26,194	24,109
Other operating expense:
Salaries and employee benefits	25,372	22,696	48,457	44,515
Net occupancy	4,299	4,253	8,621	8,645
Computer software	4,952	5,320	9,997	10,034
Legal and professional services	2,607	2,873	4,991	5,671
Equipment	822	950	1,629	2,032
Advertising	762	832	1,759	1,719
Communication	840	901	1,663	1,934
Other	6,526	6,121	12,729	11,468
Total other operating expense	46,180	43,946	89,846	86,018
Income before income taxes	26,892	23,876	53,805	46,427
Income tax expense	6,070	5,605	12,258	10,396
Net income	$ 20,822	$ 18,271	$ 41,547	$ 36,031
Per common share data:
Basic earnings per share (in dollars per share)	$ 0.80	$ 0.68	$ 1.59	$ 1.33
Diluted earnings per share (in dollars per share)	$ 0.80	$ 0.67	$ 1.58	$ 1.33
Basic weighted average shares outstanding (in shares)	25,999,122	26,988,169	26,137,665	27,037,388
Diluted weighted average shares outstanding (in shares)	26,109,241	27,069,677	26,261,252	27,139,969

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 41,547	$ 36,031
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	6,735	9,159
Depreciation and amortization of premises and equipment	3,449	3,563
Loss on disposal of premises and equipment	0	10
Non-cash lease expense	25	87
Cash flows from operating leases	(2,494)	(2,559)
Amortization of mortgage servicing rights	478	397
Net accretion of discount on investment securities	(718)	(543)
Share-based compensation	1,622	1,777
Net gain on sales of residential mortgage loans	(402)	(468)
Proceeds from sales of loans held for sale	18,944	37,653
Originations of loans held for sale	(19,992)	(31,523)
Equity in the earnings of unconsolidated entities	(39)	(33)
Distributions from unconsolidated entities	82	13
Net increase in cash surrender value of bank-owned life insurance	(3,399)	(2,757)
Deferred income tax	(783)	(3,238)
Net tax expense from share-based compensation	0	137
Net change in other assets and liabilities	16,172	7,805
Net cash provided by operating activities	61,227	55,511
Cash flows from investing activities:
Purchases of investment securities available-for-sale	(125,068)	(50,592)
Proceeds from maturities, prepayments and calls of investment securities available-for-sale	33,140	41,623
Proceeds from maturities, prepayments and calls of investment securities held-to-maturity	19,996	19,370
Loan payments, net	14,101	99,776
Purchases of loan portfolios	(39,319)	(65,463)
Purchases of bank-owned life insurance	(1,018)	(726)
Proceeds from bank-owned life insurance death benefits	0	2,060
Purchases of premises, equipment and land	(2,989)	(2,888)
Contributions to unconsolidated entities	(4,203)	(650)
Net redemption (purchases) of FRB and FHLB stock	1,092	(17,887)
Net cash (used in) provided by investing activities	(104,268)	24,623
Cash flows from financing activities:
Net increase (decrease) in deposits	85,990	(99,022)
Repayments of long-term debt	0	(25,000)
Cash dividends paid on common stock	(15,141)	(14,614)
Repurchases of common stock and other related costs	(21,794)	(4,671)
Common shares withheld to satisfy tax obligations related to share‑based compensation	(1,396)	(798)
Proceeds from sale of Visa Class B common stock	0	0
Net cash provided by (used in) financing activities	47,659	(144,105)
Net increase (decrease) in cash and cash equivalents	4,618	(63,971)
Cash and cash equivalents at beginning of period	378,653	380,941
Cash and cash equivalents at end of period	383,271	316,970
Cash paid during the period for:
Interest expense paid	30,569	39,127
Income taxes paid, net	3,652	2,222
Supplemental disclosure of non-cash information:
Net reclassification of loans to other real estate owned	924	0
Lease liabilities arising from obtaining right-of-use lease assets	499	1,888
Amortization of unrealized losses on investment securities transferred to held-to-maturity at fair value	$ 3,217	$ 3,325

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and due from financial institutions	$ 96,678	$ 88,200
Interest-bearing deposits in other financial institutions	286,593	290,453
Investment securities:
Debt securities available-for-sale, at fair value	835,378	748,212
Debt securities held-to-maturity, at amortized cost; fair value of: $474,928 as of June 30, 2026 and $495,845 as of December 31, 2025	545,215	562,391
Total investment securities	1,380,593	1,310,603
Loans held for sale	2,364	1,084
Loans	5,308,322	5,289,096
Allowance for credit losses	60,581	59,621
Loans, net of allowance for credit losses	5,247,741	5,229,475
Premises and equipment, net	100,231	100,620
Accrued interest receivable	23,419	23,559
Investment in unconsolidated entities	57,738	61,349
Other real estate owned	924	0
Mortgage servicing rights, net	8,364	8,672
Bank-owned life insurance	185,134	180,717
Federal Reserve Bank ("FRB") and Federal Home Loan Bank of Des Moines ("FHLB") stock	24,744	25,836
Right-of-use lease assets	23,311	24,822
Other assets	63,226	63,851
Total assets	7,501,060	7,409,241
Deposits:
Noninterest-bearing demand	1,917,502	1,891,198
Interest-bearing demand	1,407,574	1,388,107
Savings and money market	2,376,831	2,346,522
Time	993,847	983,937
Total deposits	6,695,754	6,609,764
Long-term debt	76,547	76,547
Lease liabilities	24,063	25,549
Accrued interest payable	6,044	7,068
Other liabilities	102,321	97,732
Total liabilities	6,904,729	6,816,660
Contingent liabilities and other commitments (see Note 18)
Equity:
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none as of June 30, 2026 and December 31, 2025	0	0
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 25,806,418 as of June 30, 2026 and 26,374,967 as of December 31, 2025	359,364	381,158
Additional paid-in capital	107,534	107,308
Retained earnings	217,789	191,383
Accumulated other comprehensive loss	(88,356)	(87,268)
Total equity	596,331	592,581
Total liabilities and equity	$ 7,501,060	$ 7,409,241