Q1 Net Income $20.7M, Loans Up to $5.3B, CPF Guides Flat Q2 NIM
Central Pacific Financial delivered Q1 net income of $20.7M with EPS $0.78 and ROE 13.9%, while loans rose $31M to $5.3B and deposits climbed $90M to $6.7B alongside a 3.53% net interest margin. CPF declared a $0.29 dividend, repurchased 321k shares and forecast flat Q2 NIM.
1. Q1 Financial Results
Central Pacific Financial reported net income of $20.7 million in Q1, generating EPS of $0.78 and a 13.9% return on equity. The bank grew its loan portfolio by $31 million to $5.3 billion and increased deposits by $90 million to $6.7 billion.
2. Net Interest Margin and Guidance
CPF maintained a net interest margin of 3.53% in Q1, down slightly due to Fed rate cuts. Management expects Q2 NIM to hold between 3.50% and 3.55%, citing competitive pressures on spreads and opportunities from back‐book repricing.
3. Capital Return and Recognition
The company declared a second‐quarter cash dividend of $0.29 per share and repurchased approximately 321,000 shares, mirroring prior capital return levels. CPF earned the Hawaii‐US SBA Lender of the Year award for 2025 for the 17th time, underscoring its community banking leadership.
4. Expense Outlook and Credit Quality
Total other operating expenses were $43.7 million, with forecasts for higher costs through the year. An uptick in criticized loans from one commercial relationship did not signal systemic issues, and CPF affirmed strong credit quality and robust capital ratios.