Central Pacific Financial Corp. reported a net income of $20.7 million, or $0.78 per diluted share, for the first quarter of 2026, marking an increase from $17.8 million, or $0.65 per diluted share, in the same period of 2025. The company's net interest income rose to $61.4 million, up from $57.7 million year-over-year, driven by higher average yields on loans and a decrease in interest rates paid on deposits. The provision for credit losses decreased to $2.4 million from $4.2 million, reflecting a reduction in loan balances and adjustments in the economic forecast used for credit loss modeling.
Total assets increased to $7.50 billion as of March 31, 2026, up from $7.41 billion at the end of 2025. This growth was primarily attributed to increases in loans, interest-bearing deposits, and investment securities. The loan portfolio reached $5.32 billion, a slight increase from $5.29 billion, with notable growth in commercial mortgage loans, which rose by $109.3 million. However, residential mortgage and home equity loans saw declines of $32.2 million and $17.7 million, respectively. The company continues to pursue selective commercial and consumer loan opportunities on the U.S. Mainland to diversify its portfolio.
In terms of operational metrics, total deposits rose to $6.70 billion, an increase of $89.6 million from the previous quarter. Core deposits, which include demand deposits and savings accounts, represented 91.6% of total deposits. The average cost of total deposits decreased to 90 basis points from 108 basis points in the same quarter of 2025. The company also repurchased 321,396 shares of common stock at a cost of $10.5 million under its 2026 Repurchase Plan, with $44.5 million remaining available for future repurchases.
Looking ahead, Central Pacific Financial Corp. remains focused on maintaining a strong capital position, with total equity at $593.9 million as of March 31, 2026. The company’s capital ratios exceed regulatory requirements, positioning it well for future growth. However, management acknowledges potential risks from economic conditions, including inflation, interest rate fluctuations, and the ongoing recovery of the tourism sector in Hawaii, which could impact loan performance and overall financial results. The company continues to monitor these factors closely as it navigates its strategic objectives.
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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