Central Pacific Financial Corp. (CPF) reported first‑quarter 2026 results that surpassed expectations, delivering a net income of $20.7 million and earnings per share of $0.78 on a fully diluted basis. Net interest income rose to $61.4 million, up 6.4 % from $57.7 million a year earlier, while total revenue—net interest income plus other operating income—amounted to $72.9 million, a 4.8 % increase from the $69.8 million reported in Q1 2025. The bank’s net interest margin expanded to 3.53 %, up 22 basis points from 3.31 % in Q1 2025, but slipped 3 basis points from 3.56 % in Q4 2025.
The year‑over‑year comparison shows that CPF’s net income grew 16.5 % to $20.7 million, and EPS climbed 20 % to $0.78 from $0.65 in Q1 2025. Revenue growth was driven by a 5.2 % rise in net interest income and a modest 2.1 % increase in other operating income, offsetting a slight decline in loan interest earnings due to lower average yields. Net interest margin improvement was largely attributable to higher loan rates and a reduction in deposit costs, while the sequential dip reflected a modest decline in average yields on the bank’s loan and investment portfolios.
Balance‑sheet growth continued as loans increased to $5.32 billion, up 3.4 % from $5.15 billion in Q1 2025, and deposits rose to $6.70 billion, a 2.8 % gain. Capital ratios remained robust, and the bank declared a quarterly cash dividend of $0.29 per share while repurchasing $10.5 million of stock, underscoring its commitment to shareholder returns.
Arnold Martines, Chairman, President and CEO, said, “We delivered strong net income in the first quarter, marked by balance sheet growth, healthy net interest margin, and disciplined expense management.” He added, “We are proud to be named as Hawaii SBA lender of the year for the 17th time, reflecting our ongoing commitment to supporting small businesses in our community. I want to express my sincere appreciation to our employees and customers for their continued dedication and partnership.”
Analysts responded positively to the earnings beat. A “Hold” rating with a $37.00 price target was issued by one analyst, while another gave an average “Buy” rating with a 12‑month price target of $37, projecting an 8.16 % increase. The consensus estimate for EPS was $0.74, so the $0.78 reported by CPF represented a 5.4 % beat, reinforcing confidence in the bank’s earnings quality and margin outlook.
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