- Central Pacific Financial Corp. (CPF, Financial) reported a net income of $17.8 million for Q1 2025, with earnings per diluted share at $0.65.
- The company experienced a net interest margin increase to 3.31%, a rise of 14 basis points from the previous quarter.
- The CPF Board declared a quarterly cash dividend of $0.27 per share, payable on June 16, 2025.
Central Pacific Financial Corp. (CPF), the parent company of Central Pacific Bank, announced its financial results for the first quarter of 2025, reporting a net income of $17.8 million or $0.65 per diluted share. This is a significant increase from the previous quarter’s net income of $11.3 million or $0.42 per diluted share. The improvement was primarily due to growth in net interest income and margin, as well as a reduction in other operating expenses.
CPF’s net interest income for Q1 2025 was $57.7 million, reflecting an increase of $1.9 million, which is a 3.5% rise from the last quarter. Furthermore, the net interest margin improved to 3.31% from 3.17%, driven by a decline in average rates paid on interest-bearing deposits and a higher yield on investment securities.
The company’s total deposits decreased by $48.0 million to $6.60 billion during the first quarter. Core deposits also saw a reduction of $64.6 million, bringing the total to $5.98 billion. Despite the decrease in deposits, CPF's asset quality remained strong, with nonperforming assets totaling $11.1 million or 0.15% of total assets.
Additionally, CPF's efficiency ratio improved to 61.16%, a significant enhancement compared to 75.65% in the previous quarter. The improvement in efficiency was attributed to the absence of the pre-tax loss related to an investment portfolio repositioning recorded in the previous quarter.
The Board of Directors of CPF approved a quarterly cash dividend of $0.27 per share, which will be payable on June 16, 2025, to shareholders of record as of May 30, 2025.
Arnold Martines, Chairman, President, and Chief Executive Officer, stated, "Our first quarter financial results were solid and continue to trend favorably. Through our balance sheet optimization and strong focus on meeting the needs of our customers, we were successful in continuing to meaningfully grow net interest income and net interest margin."
