Central Pacific Financial Corp. Reports $22.8 Million Net Income for Q3 2026

Central Pacific Financial Corp. reported a net income of $22.8 million, or $0.88 per diluted share, for the third quarter of 2026, marking an increase from $18.6 million, or $0.69 per diluted share, in the same period of 2025. For the nine months ending September 30, 2026, net income rose to $64.3 million, or $2.46 per diluted share, compared to $54.6 million, or $2.01 per diluted share, for the same period last year. The increase in profitability was attributed to a decrease in the provision for credit losses, which fell to $1.9 million from $4.2 million year-over-year, reflecting improved credit quality indicators and lower nonaccrual loan balances.

Total assets for Central Pacific Financial Corp. reached $7.45 billion as of September 30, 2026, a slight increase of $40.4 million, or 0.5%, from $7.41 billion at the end of 2025. This growth was primarily driven by a $30.8 million increase in investment securities and a $24 million rise in loans. The company's loan portfolio totaled $5.31 billion, with notable increases in commercial mortgage loans, while residential mortgage and home equity loans saw declines. The allowance for credit losses remained stable at $59.8 million, representing 1.13% of total loans.

In terms of operational developments, Central Pacific Financial Corp. maintained a strong deposit base, with total deposits amounting to $6.66 billion, up $54.1 million, or 0.8%, from the previous year. Core deposits, which include demand deposits, savings, and money market accounts, accounted for 91.7% of total deposits. The company also executed a share repurchase program, buying back 937,364 shares at a cost of $33 million during the nine months ended September 30, 2026, with $22 million remaining under the current repurchase plan.

Looking ahead, Central Pacific Financial Corp. anticipates continued growth driven by its strategic focus on expanding its loan portfolio, particularly in commercial and construction lending, while maintaining prudent risk management practices. The company remains vigilant regarding economic conditions, particularly in Hawaii, where its operations are concentrated. The management's outlook reflects confidence in the bank's ability to navigate potential challenges, including inflationary pressures and interest rate fluctuations, while capitalizing on opportunities for growth in both local and mainland markets.