Central Pacific Financial Corp. (CPF), a Hawaii-based bank holding company, reported a net income of $77.5 million, or $2.86 per diluted share, for the fiscal year ending December 31, 2025. This represents a significant increase compared to the $53.4 million, or $1.97 per diluted share, reported in the previous fiscal year. The company's financial performance was positively influenced by higher average yields on loans and investment securities, coupled with lower average rates on interest-bearing deposits. However, the results were impacted by $1.5 million in pre-tax expenses related to the consolidation of the Company's former operations center into its main headquarters.
CPF's loan portfolio experienced a slight decline of 0.8%, amounting to $43.8 million, primarily due to run-off in the home equity, consumer, and residential mortgage loan portfolios. This was partially offset by growth in the commercial mortgage and construction loan segments. Total deposits also decreased by 0.5%, or $34.2 million, driven by the run-off of high-cost time deposits exceeding $250,000, while core deposits grew by 0.3%. The company's asset quality remained strong, with nonperforming assets representing 0.19% of total assets, totaling $14.4 million.
Strategically, CPF focused on markets and niche segments to drive growth and diversify its balance sheet. This included serving small businesses and homeowners in Hawaii, fostering partnerships with financial institutions in Japan and Korea, and expanding U.S. Mainland lending to manage interest rate risk. The company also emphasized the integration of wealth management services to cater to a broader spectrum of client needs. At the end of 2025, the company employed 763 individuals, with an average employee tenure of 9 years, highlighting its commitment to employee retention and development.
Looking ahead, CPF anticipates a period of moderation for Hawaii’s tourism sector, with total visitor arrivals by air expected to decline by approximately 1.3% in 2026. Correspondingly, visitor spending is forecast to decline by approximately 2.4% in 2026, as slower arrival volumes and easing pricing power outweigh recent gains in per‑visitor spending. The company also expects overall deposit rates to decline gradually, as maturing time deposits reprice. However, rates remain subject to shifts in inflation dynamics, labor market conditions, and economic data, and the Fed has signaled a cautious, data-dependent approach to further policy easing.
About CENTRAL PACIFIC FINANCIAL CORP
Central Pacific Financial Corp. is a Hawaii-based bank holding company whose principal subsidiary, Central Pacific Bank, offers full-service commercial banking. The bank provides deposit products, residential and commercial loans, construction financing, and fiduciary services primarily to individuals, businesses, and professionals in Hawaii. Its business model emphasizes local customer relationships, competitive pricing, and tailored services, operating through a network of branches and ATMs across the state.
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