Central Pacific Financial Corp. Reports $17.8 Million Net Income in Q1 2025

Central Pacific Financial Corp. reported a net income of $17.8 million, or $0.65 per diluted share, for the first quarter of 2025, marking a significant increase from the $12.9 million, or $0.48 per diluted share, recorded in the same period of 2024. The company's total interest income rose to $77.2 million, up from $74.4 million year-over-year, driven by higher yields on loans and investment securities. Net interest income also saw a notable increase, reaching $57.7 million compared to $50.2 million in the prior year, reflecting a net interest margin improvement to 3.31% from 2.83%.

In terms of financial position, total assets decreased slightly to $7.41 billion as of March 31, 2025, down from $7.47 billion at the end of 2024. This decline was primarily attributed to reductions in interest-bearing deposits and total deposits, which fell to $6.60 billion from $6.64 billion. The company’s loan portfolio remained stable, with total loans at $5.33 billion, a marginal increase from $5.33 billion at the end of the previous year. Notably, commercial and industrial loans increased by 4.6%, while consumer loans decreased by 9.5%.

Central Pacific Financial Corp. has also made strategic moves to enhance its market position. The company repurchased 77,316 shares of its common stock at a cost of $2.1 million under its newly authorized $30 million share repurchase plan. This plan, approved in January 2025, aims to return capital to shareholders while maintaining a strong capital position. As of March 31, 2025, the company’s total shareholders' equity increased to $557.4 million, up from $538.4 million at the end of 2024, bolstered by net income and comprehensive income.

Operationally, the company reported a provision for credit losses of $4.2 million, slightly higher than the $3.9 million recorded in the same quarter of the previous year. The allowance for credit losses on loans stood at $60.5 million, representing 1.13% of total loans. The company continues to focus on maintaining asset quality, with nonperforming assets totaling $11.1 million, consistent with the previous quarter. The company’s efficiency ratio improved to 61.16%, down from 66.05% a year earlier, indicating enhanced operational efficiency.

Looking ahead, Central Pacific Financial Corp. remains optimistic about its growth prospects, particularly in the context of Hawaii's economic recovery and the anticipated increase in visitor arrivals. The company is strategically positioned to capitalize on opportunities in the local market while managing risks associated with interest rate fluctuations and economic conditions. The management's focus on maintaining a strong capital base and effective asset-liability management will be crucial as the company navigates the evolving financial landscape.