Central Pacific Financial (US:CPF)2025-10-29 11:32Financial Performance - Net income for Q3 2025 was $18.6 million, or $0.69 per diluted share, compared to $18.3 million, or $0.67 in the prior quarter, and $13.3 million, or $0.49 in the same quarter last year[2]. - Adjusted net income (non-GAAP) for Q3 2025 was $19.7 million, or $0.73 per diluted share, excluding $1.5 million in pre-tax expenses related to operations center consolidation[4]. - Net income for Q3 2025 reached $18,574,000, reflecting a slight increase from $18,271,000 in Q2 2025 and a significant rise of 39.5% compared to $13,305,000 in Q3 2024[31]. - Basic earnings per share for Q3 2025 was $0.69, up from $0.68 in Q2 2025 and $0.49 in Q3 2024, marking a year-over-year increase of 40.8%[31]. - GAAP net income for Q3 2025 was $18,574,000, up from $13,305,000 in Q3 2024, representing a 39.5% increase[50]. - Adjusted net income (non-GAAP) for Q3 2025 was $19,741,000, compared to $15,667,000 in Q3 2024, reflecting a 25.5% growth[50]. Asset and Loan Growth - Total loans reached $5.37 billion, an increase of $77.4 million, or 1.5% from the prior quarter[4][12]. - Total loans, net of deferred fees and costs, increased to $5,367,202,000 in Q3 2025 from $5,289,809,000 in Q2 2025[35]. - Total assets as of September 30, 2025, were $7,421,478,000, a slight increase from $7,369,567,000 in Q2 2025[35]. - Total loans, net of allowance for credit losses, were $5,306,809 thousand, an increase from $5,230,198 thousand in the previous quarter[40]. - Commercial and industrial loans in Hawaii increased to $464,797 thousand from $455,372 thousand in the previous quarter[40]. - Residential mortgage loans totaled $1,839,535 thousand, a decrease from $1,851,690 thousand in the previous quarter[40]. Deposit and Equity Changes - Total deposits were $6.58 billion, up $32.7 million, or 0.5% from the prior quarter[4][13]. - Total deposits reached $6,577,684 thousand, an increase from $6,544,989 thousand at the end of the previous quarter, marking a growth of 0.5%[36]. - Total shareholders' equity increased to $588.1 million, up from $568.9 million in the prior quarter[17]. - Total equity rose to $588,066 thousand, compared to $568,874 thousand at June 30, 2025, indicating a 3.4% increase[36]. - Total equity as of September 30, 2025, was $588,066,000, an increase from $543,725,000 as of September 30, 2024[53]. Efficiency and Profitability Ratios - The efficiency ratio was 62.84%, compared to 60.36% in the prior quarter; adjusted efficiency ratio (non-GAAP) was 60.81%[9]. - The efficiency ratio (non-GAAP) improved to 62.84% for the three months ended September 30, 2025, compared to 70.12% in the same period last year[48]. - Return on average assets (ROA) for Q3 2025 was 1.01%, slightly up from 1.00% in Q2 2025, demonstrating effective asset utilization[31]. - Return on average assets (ROA) was 1.01% for the three months ended September 30, 2025, up from 0.72% in the same period last year[48]. - Return on average equity (ROE) increased to 12.89% for the three months ended September 30, 2025, compared to 10.02% in the same period last year[48]. - Adjusted ROA (non-GAAP) for Q3 2025 was 1.08%, up from 0.85% in Q3 2024, showing improved asset utilization[52]. - Adjusted ROE (non-GAAP) for Q3 2025 was 13.67%, compared to 11.75% in Q3 2024, indicating stronger returns on equity[52]. Credit Quality and Loss Provisions - The provision for credit losses was $4.2 million, down from $5.0 million in the prior quarter, reflecting lower net charge-offs[6]. - The allowance for credit losses was $60,393 thousand, slightly up from $59,611 thousand in the previous quarter, indicating a 1.3% increase[36]. - Total nonperforming assets (NPAs) stood at $15,827 thousand, down from $16,959 thousand in the previous quarter, indicating improved asset quality[42]. - The ratio of total nonaccrual loans to total loans was 0.27% as of September 30, 2025, compared to 0.28% in the previous quarter[42]. - Provision for credit losses in Q3 2025 was $4,157,000, a decrease from $4,987,000 in Q2 2025, showing a reduction of 16.66%[37]. - Total charge-offs for the three months ended September 30, 2025, were $3,895 thousand, a decrease from $5,722 thousand in the previous quarter[43]. Dividend Information - The Board of Directors approved a quarterly cash dividend increase to $0.28 per share, representing a 3.7% increase from the previous quarter[20]. - The dividend declared per share was $0.27 for Q3 2025, consistent with the previous quarter and reflecting a stable dividend policy[31]. - Cash dividends declared in Q3 2025 remained steady at $0.27, consistent with Q2 2025[37].