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- **Record Recognition**: Named top regional bank for 2026, reflecting 77% 3-year shareholder return.
- **Strong Financials**: Q4 net income $22.9M (+24% YoY core EPS), NIM 3.56% with 7bps expansion.
- **Growth Strategy**: 2026 loan/deposit growth guided at low single digits, focusing on commercial and construction.
- **Capital Action**: $55M buyback authorization, 3.6% dividend increase to $0.29/share.
- **Risk Management**: Stable credit metrics (NPA 19bps, criticized loans 135bps), 14.8% capital ratio.


**【CEO Summary Section】**
- Named one of America's best regional banks for 2026, reflecting strong franchise and customer trust.
- Q4 2025 net income of $22.9M ($0.85 EPS), up 24% YoY in core EPS. Full year net income $77.5M ($2.86 EPS).
- Strategic partnership with Korea Investment & Securities to expand international deposit opportunities.
- 3-year total shareholder return of 77% (7% annualized), driven by share price growth and dividends.
- Hawaii's construction and military sectors offsetting macroeconomic challenges.

**【COO Financial Performance】**
- Q4 core deposits grew $78M (29% noninterest-bearing), with deposit rate decline to 94bps.
- Loan portfolio declined $78M due to large payoffs and delayed fundings; full year loans down $44M.
- 2026 guidance: low single-digit net loan and deposit growth, with focus on commercial and construction.
- Weighted average new loan yield 6.8%, vs. 4.99% portfolio yield.

**【CFO Financial Highlights】**
- Q4 net interest income $62.1M (+1.3%), NIM 3.56% (+7bps). Full year 2026 NIM expected to expand 4-6%.
- Other operating income $14.2M, up 5% YoY. Total expenses down $1.3M Q/Q due to cost control.
- Share repurchases $16.3M in Q4, $23.3M full year. New $55M buyback authorization for 2026.
- Dividend increased 3.6% to $0.29/share. CET1 target 11-12%.

**【CRO Credit Performance】**
- Q4 net charge-offs 18bps, NPA 19bps of assets, criticized loans 135bps. Provision expense $2.4M.
- Strong capital position (14.8% risk-based) supports prudent loan growth.

**【Q&A Highlights】**
- **Loan Growth Timing**: Delayed closings (~$250M) to shift to Q2 2026, with 2026 originations targeting $300M+.
- **Deposit Beta**: 30% cycle-to-date, expected 25-30% for 2026. Spot rate 89bps at year-end.
- **Expense Management**: 2.5-3.5% YoY growth in operating expenses, investing in sales tech and data platforms.
- **Deposit Competition**: 13% market share in Hawaii, focusing on customer primacy and new client acquisition.
- **Capital Allocation**: Flexible buyback plan, prioritizing organic growth and dividend increases.


Central Pacific Financial Corp. (CPF) Q4 2025 Earnings Call Transcript

- **Strong Financial Performance**: Q3 net income $19.7M (adjusted), ROA 1.01%, NIM 3.49% with 5bps expansion.
- **Strategic Growth**: $77M Hawaii loan growth, $33M deposit expansion, new Kyoto Shinkin Bank partnership.
- **Margin Expansion**: New loan yields 6.9%, Q4 NIM guidance +5-10bps as rate cuts benefit deposits.
- **Capital Discipline**: $23M buyback authorization, dividend +3.7%, CET1 11.5% above target range.
- **Credit Resilience**: NPA ratio 19bps, SNC portfolio stable at $526M, large credits secured and performing.

**【CEO Opening Remarks】**
- Reported strong Q3 results with net income of $19.7 million (adjusted) and ROA of 1.01%, driven by disciplined growth and margin expansion.
- Highlighted strategic partnership with Kyoto Shinkin Bank to enhance cross-border business opportunities, particularly for SMEs.
- Emphasized operational efficiency through consolidation of operations center, expected to yield $1 million annual savings.
- Maintained focus on 4 priorities: customer-centric product development, team strength, balance sheet resilience, and prudent growth.

**【COO (David Morimoto) Loan & Deposit Update】**
- Hawaii loan growth offset by runoff in residential mortgage and HELOC portfolios; Mainland loan growth led by industrial and multifamily CRE.
- Total loans increased $77 million (Hawaii) and $33 million (Mainland), with pipeline supporting low single-digit 2025 growth.
- Deposit growth of $33 million to $6.6 billion, with focus on 2026 low single-digit expansion via Japan and Korea initiatives.

**【CFO (Dayna Matsumoto) Financial Highlights】**
- Net interest income up 2.5% to $61.3M, NIM expanded 5bps to 3.49% due to higher loan yields (6.9% new loan pricing).
- Q4 NII guidance $62-63M, with NIM +5-10bps as rate cuts benefit deposit costs.
- Operating expenses up $3.1M due to $1.5M one-time office consolidation costs and $2.1M incentive accruals.
- Capital deployment prioritizes loan growth, share buybacks ($23M remaining), and dividend ($0.28/Q4, +3.7%).

**【CRO (Ralph Mesick) Credit Performance】**
- Strong asset quality with NPA ratio 19bps, down 1bps Q/Q; provision expense $4.2M stable vs prior quarter.
- SNC portfolio at $526M, with Mainland CRE ($190M) and syndicated loans ($144M) showing stability.
- Special mention/classified loans flat at $34.3M and $62.1M, with large credits secured and performing.

**【Q&A Highlights】**
- **Hawaii Loan Growth**: Pipeline healthy but timing-dependent; expect 2026 balance between Hawaii/Mainland.
- **Expense Trends**: Incentive accruals ($1.5M/Q3) and tech investments driving efficiency ratio target of 55%.
- **Deposit Strategy**: Focus on Japan/Korea expansion; 2026 deposit growth guided at low single-digits.
- **Capital Management**: CET1 11.5% above target range; prioritize loan growth over buybacks but remain flexible.
- **Japan Partnership**: Kyoto Shinkin Bank to facilitate trade and investment between Hawaii/Kyoto regions.


Central Pacific Financial Corp. (CPF) Q3 2025 Earnings Call Transcript

- **Market Leadership**: 4th straight Forbes 'Best Bank in Hawaii' recognition; Hawaii economy resilient with tourism up 24.3% vs 2019, unemployment 2.8%.
- **Financial Strength**: Q2 net income $18.3M, NIM expands to 3.44% (vs 3.31% last quarter), efficiency ratio 60.36%.
- **Growth Momentum**: Loan pipeline booked $50M+ in early Q3; new loan yields 7.2% vs 4.96% portfolio average.
- **Credit Stability**: Net charge-offs 35bps (one-off $4.7M loss); NPA 20bps, well-collateralized performing loans.
- **Cost Management**: Deposit cost 1.02%; CD roll-off savings to drive margin expansion; $1M annual savings from operations center exit.

**【CEO Opening Remarks】**
- Received 'Best Bank in Hawaii' by Forbes for 4th consecutive year.
- Hawaii economy resilient: tourism up 2.8% YoY (visitor spending +24.3% vs 2019), unemployment 2.8% (vs national 4.1%).
- Real estate: single-family home prices +0.4% to $1.13M median; sales volumes dip 2.1% for single-family, 6% for condos.

**【CEO Market Update】**
- Construction activity strong ($14B in 2024), driven by infrastructure and housing projects.
- Domestic tourism growth outpaces slow Japanese visitor recovery.
- Housing supply improving with new developments.

**【CFO Financial Highlights】**
- Q2 net income: $18.3M ($0.67 EPS), ROA 1.00%, ROE 13.04%.
- NIM expands 13bps to 3.44% (loan yield +8bps, deposit cost -6bps to 1.02%).
- Other income: $13.0M (+$1.9M from BOLI gains); expenses: $43.9M (+$1.9M from deferred comp/computer costs).
- Share buybacks: 103K shares ($2.6M); $25.3M repurchase authorization remaining.

**【COO Growth Strategy】**
- 2025 loan/deposit growth target: low single digits.
- Q2 loan portfolio: $5.29B (growth in construction/consumer, decline elsewhere); pipeline strong with early Q3 closings.
- Deposit mix shift: +noninterest-bearing DDA; Japan/Korea initiatives gaining traction.
- Mainland SNC portfolio: $403M ($152M C&I).

**【Q&A Highlights】**
- **Loan Growth**: Q2 pipeline booked in Q3, driving 2025H2 revenue lift; new loan yield 7.2% vs 4.96% portfolio avg.
- **Deposit Cost**: CD roll-off ($430M Q3, $350M Q4) at 3.6% vs 3.4% new rate; beta 42% cycle-to-date.
- **Credit Quality**: Net charge-offs 35bps (one-off $4.7M C&I loss); NPA 20bps (residential mortgage/HELOC).
- **Expense Run Rate**: $43.5-44.5M/Q (excl. one-time items); investing in tech, facilities, talent.
- **Operations Center Exit**: $2-2.5M write-off Q4; $1M annual savings starting 2026.

Central Pacific Financial Corp. (CPF) Q2 2025 Earnings Call Transcript

- **Record Q1 Performance**: 3.31% NIM (up 14bps), $17.8M net income, and 61.2% efficiency ratio.
- **Loan Growth Resurgence**: $1.7B sequential increase, driven by Hawaii Commercial Mortgage and Mainland Construction.
- **Hawaii Market Strength**: Construction +20.3% YoY, visitor spending +6.3%, and unemployment at 2.9%.
- **Capital Flexibility**: $4.2M in buybacks YTD, with plans to continue amid market volatility.
- **Risk Management**: 15bps NPA ratio, 1.13% ACL, and stress-tested capital buffer of 15.6%.


**【CEO Opening Remarks】**
- Announced leadership changes: David Morimoto as COO and Dayna Matsumoto as CFO.
- Q1 2025 results: Solid NIM expansion (3.31%), strong capital liquidity, and asset quality.
- Hawaii market outlook: Construction growth (+20.3% YoY), tourism recovery (visitor spending +6.3%), and low unemployment (2.9%).

**【COO (David Morimoto) - Loan Growth Update】**
- Q1 loan portfolio increased by $1.7B sequentially, driven by Hawaii Commercial Mortgage (+$1.2B) and Mainland Construction Lending.
- 2025 loan growth guidance: Low to mid-single-digit expansion focused on C&I, commercial mortgage, and construction.
- Deposit trends: Total deposits down $48M QoQ, but average non-time deposits up $78M.

**【CFO (Dayna Matsumoto) - Financial Highlights】**
- Net income: $17.8M ($0.65/diluted share), ROA 0.96%, ROE 13.04%.
- NIM expansion: +14bps QoQ to 3.31%, driven by lower funding costs (1.08%) and higher investment yields.
- Expense management: Efficiency ratio 61.2%, lowest since Q4 2022.
- Share buybacks: $2.1M in Q1 and $2.1M YTD, with plans to continue repurchases.

**【CRO (Ralph Mesick) - Asset Quality】**
- Net charge-offs: $2.6M (20bps annualized), down 9bps QoQ.
- Non-performing assets: $11.1M (15bps of total assets), stable QoQ.
- Allowance for loan losses: $60.5M (1.13% of loans), up 2bps due to macroeconomic conservatism.

**【Q&A Key Takeaways】**
1. **Loan Growth Strategy**: Focus on C&I, commercial mortgage, and construction; cautious optimism amid macro uncertainty.
2. **Deposit Competition**: Rational pricing environment; expect gradual cost decline if Fed holds rates.
3. **Margin Outlook**: 4-7bps expansion in Q2, with potential further benefit from Fed cuts.
4. **Capital Allocation**: Dividends (40% payout ratio), organic growth, and share buybacks prioritized.


Central Pacific Financial (CPF)-23 Apr 25-2025 Q1 Earnings call transcript

- **Q4 2024 Financials**: Adjusted net income of $19M ($0.70/share), driven by NIM expansion to 3.17%. 
- **2025 Growth Outlook**: Loan pipeline up 25%, targeting C&amp;I/CRE net growth. 
- **Cost Efficiency**: Deposit cost down 11bps to 1.21%, OE ratio target 42.5-43.5%. 
- **Credit Resilience**: Net charge-offs at 29bps, strong capital cushion (15.4% risk-based). 
- **Shareholder Returns**: Dividend +3.8%, $30M buyback authorization.

**【CEO Opening Remarks】**
- Q4 2024 net income: $11.3M ($0.42/diluted share), impacted by $9.9M loss from investment portfolio repositioning. Adjusted net income: $19M ($0.70/diluted share). Full year 2024 net income: $53.4M ($1.97/diluted share). 
- Hawaii market outlook: Construction sector growth (+$13B annualized vs $11.8B prior year), tourism recovery (Nov 2024 visitor arrivals +5.3%), and resilient real estate market (Oahu median home price +5.8% YoY). 
- 2025 growth drivers: Loan pipeline expansion, deposit cost management, and strategic investment repositioning. 

**【CFO Financial Highlights】**
- Net interest income (NII): $55.8M (+$1.9M QoQ), net interest margin (NIM): 3.17% (+10bps QoQ). 
- Deposit growth: $61M total, $74.2M core deposits, $50.9M demand deposits. Total cost of deposits: 1.21% (-11bps QoQ). 
- Operating expenses: $44.2M (includes $1.4M intangible asset impairment). Adjusted other operating income: $12.5M. 
- Dividend increase: $0.27/share (+3.8%), new $30M share repurchase authorization. 

**【Credit & Risk Update】**
- Net charge-offs: $3.8M (29bps annualized), nonperforming assets: $11M (15bps of total assets). 
- Allowance for credit losses: $59.2M (1.11% of loans). Risk-based capital: 15.4%. 
- No loan exposure to Southern California wildfire-affected areas. 

**【Q&A Key Takeaways】**
- **Loan Growth**: C&amp;I and CRE segments driving 2025 net growth, pipeline up 25% QoQ. 
- **Deposit Strategy**: Core deposit growth (+$74.2M) offset by reduced government CE reliance. 
- **Expense Management**: Targeting 42.5-43.5% OE ratio, aiming for positive operating leverage. 
- **Credit Quality**: Consumer charge-offs trend lower, NPAs well-secured by residential real estate. 
- **Capital Allocation**: Dividend payout ratio ~40%, remaining capital for growth, M&amp;A, and share buybacks.

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