Central Pacific Financial Corp. (CPF) has reported its fourth-quarter and full-year 2025 earnings, showcasing a strong performance across various financial metrics. Here are the key highlights from the report:
- Net income for the fourth quarter of 2025 was $22.9 million, a significant increase from the prior quarter's $18.6 million and the same quarter last year's $11.3 million.
- Return on average assets (ROA) was 1.25% for the quarter, up from 1.06% for the year.
- Return on average equity (ROE) stood at 15.41% for the quarter, an improvement from 13.62% for the year.
- The efficiency ratio improved to 59.88%, compared to 62.84% in the prior quarter and 61.05% for the year.
- Net interest margin (NIM) increased to 3.56%, up 7 basis points from the prior quarter and 3.45% for the year.
- Central Pacific Financial also repurchased 529,613 shares of common stock at a total cost of $16.3 million during the quarter and 788,261 shares at $23.3 million during the year.
In terms of earnings, net interest income for the fourth quarter of 2025 totaled $62.1 million, up by $0.8 million from the prior quarter and $6.3 million from the same quarter last year. The company also recorded a provision for credit losses of $2.4 million in the fourth quarter of 2025, compared to $4.2 million in the prior quarter and $0.8 million in the same quarter last year.
On the balance sheet side, total assets were $7.41 billion as of December 31, 2025, which decreased by $12.2 million from September 30, 2025. Total loans, net of deferred fees and costs, were $5.29 billion at December 31, 2025, a decrease of $78.1 million from September 30, 2025.
In terms of capital, total shareholders' equity at December 31, 2025, was $592.6 million, compared to $588.1 million at September 30, 2025, and $538.4 million at December 31, 2024. The company's regulatory capital ratios remained strong, with a leverage ratio of 9.8%, a common equity tier 1 ratio of 12.7%, a tier 1 risk-based capital ratio of 13.6%, and a total risk-based capital ratio of 14.8% at December 31, 2025.
The board of directors also authorized a new share repurchase program of $55 million for 2026 and increased the quarterly cash dividend by 3.6% to $0.29 per share.
As a result of these announcements, the company's shares have moved -1.45% on the market, and are now trading at a price of $31.85. For more information, read the company's full 8-K submission here.
