Central Pacific Financial Corp. reported third‑quarter 2025 net income of $18.6 million, or $0.69 per diluted share, up 1.6% from the prior quarter and 39% from the same period a year earlier. Adjusted earnings, excluding a $1.5 million pre‑tax charge for operations‑center consolidation, were $19.7 million or $0.73 per share, slightly below the consensus estimate of $0.74 and below the revenue estimate of $62.0 million. Net interest income reached $61.3 million, a 2.5% sequential gain and a 13.8% year‑over‑year increase, while the net interest margin expanded to 3.49%, up 5 basis points from the prior quarter and 42 basis points from the same period last year.
Net interest income growth was driven by higher average loan yields of 5.01% and modest increases in investment‑security yields, reflecting a repricing of variable‑rate assets in a higher‑rate environment and the addition of new, higher‑yielding commercial loans. The bank’s efficiency ratio improved to 60.81% on an adjusted basis, supported by the projected $1 million annual savings from the operations‑center consolidation.
Credit quality remained solid. The provision for credit losses fell to $4.2 million from $5.0 million, and net charge‑offs were $2.7 million, a decline largely due to a full charge‑off of a commercial loan. The allowance for credit losses stood at 1.13% of total loans, unchanged from the prior quarter, while total non‑performing assets rose 23.4% year‑over‑year to $14.3 million, indicating a need for continued monitoring of credit risk exposure.
Capital deployment continued with the repurchase of 78,255 shares at an average price of $29.95, leaving $23 million under the share‑repurchase authorization. The board increased the quarterly dividend to $0.28 per share, payable December 15, 2025, and announced the full redemption of $55 million of 4.75% fixed‑to‑floating subordinated notes due 2030 on November 1, 2025.
The bank also confirmed a new partnership with Kyoto Shinkin Bank, signed on October 6, 2025, to deepen cross‑border business ties between Hawaii and Japan, targeting small‑to‑mid‑size customers and diversifying revenue streams beyond the local Hawaiian market.
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