Central Pacific Financial Corp. (NYSE: CPF), the parent company of Central Pacific Bank, reported net income of $22.8 million, or $0.88 per diluted share, for the third quarter of 2026. This figure represents an increase from the prior quarter's net income of $20.8 million ($0.80 per diluted share) and compares to $18.6 million ($0.69 per diluted share) in the same period last year.
The company reported net interest income of $64.5 million for the quarter, a 2.6% increase from the prior quarter and a 5.2% increase compared to the same quarter last year. This growth was accompanied by a net interest margin of 3.62%, an increase of 5 basis points from the prior quarter and 13 basis points from the same period last year. The increase in net interest income and margin was driven by higher loan yields and increased average balances and yields on investment securities.
On the expense side, other operating income totaled $12.4 million, while other operating expenses were $44.8 million. The company recorded a provision for credit losses of $1.9 million. The efficiency ratio improved to 58.27% from 59.62% in the prior quarter. Total assets as of September 30, 2026, were $7.45 billion, while total loans stood at $5.31 billion. Total deposits were $6.66 billion, with core deposits totaling $6.11 billion.
Nonperforming assets were $14.0 million, or 0.19% of total assets. The allowance for credit losses on loans was 1.13% of total loans. The company repurchased 294,110 shares of common stock at a total cost of $11.2 million during the quarter. As of September 30, 2026, the company’s regulatory capital ratios remained strong, with a Common Equity Tier 1 ratio of 12.7% and a total risk-based capital ratio of 14.8%.
In a separate announcement, the Board of Directors declared a fourth quarter cash dividend of $0.31 per share, an increase of 3.3% from the prior quarter. The dividend is payable on December 15, 2026, to shareholders of record as of November 30, 2026.
