Central Pacific Financial (US:CPF) Yahoo Finance·2026-01-29 01:40Financial Performance - Net interest income increased by 1.3% from the prior quarter to $62.1 million, with net interest margin expanding by 7 basis points to 3.56% due to reduced deposit costs and stable loan yields [1] - For the full year 2025, net income was reported at $77.5 million, or $2.86 per diluted share, with adjusted non-GAAP net income at $78.6 million, reflecting a 24% increase over 2024 [3] - The company reported net income of $22.9 million for Q4, or $0.85 per diluted share, compared to $18.6 million, or $0.69 per diluted share, in the prior quarter [4][7] Capital Management - The bank repurchased 788,000 shares in 2025 and raised the quarterly dividend to $0.29, with an authorization for up to $55 million in buybacks for 2026 [6][19] - Total risk-based capital was reported at 14.8%, with capital priorities focused on supporting organic loan growth, dividends, and share repurchases [21] Loan and Deposit Trends - Total core deposits grew by $78 million during the quarter, while total loans declined by $78 million, attributed to large payoffs and delays in new fundings [10][11] - The company expects low single-digit percentage growth in net loans and deposits for 2026, with a consistent loan pipeline and a focus on the core Hawaii market [15] Credit Quality - Credit quality indicators remained stable, with net charge-offs at $2.5 million and non-performing assets at $14.4 million [20] - The provision expense for the quarter was $2.4 million, reflecting improvements in asset quality and a favorable macroeconomic forecast [20] Strategic Outlook - Management guided for a 4% to 6% increase in net interest income for 2026, with expectations for net interest margin expansion at a slower pace than in 2025 [8] - The company signed a strategic partnership with Korea Investment & Securities to expand its international strategy and create new deposit opportunities [24]