What factors drove the changes in Central Pacific Financial's revenue and profit?

What guidance did Central Pacific Financial's management provide for the next earnings period?

What is Central Pacific Financial's latest dividend and current dividend yield?

What is Central Pacific Financial's gross profit margin?

Did Central Pacific Financial beat or miss consensus estimates last quarter?

What is the revenue and EPS growth rate for Central Pacific Financial year over year?

What were the key takeaways from Central Pacific Financial's earnings call?

What does Central Pacific Financial do and what are its main business segments?

- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CPF

CPF fundamentals

You can ask Aime