Central Pacific Financial Corp (CPF) Q2 2025 Earnings Call Highlights: Strong Net Interest ...
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 26 2025
0mins
Should l Buy CPF?
Source: Yahoo Finance
Financial Performance: Central Pacific Financial Corp reported a net income of $18.3 million with a 3.6% increase in net interest income and an expanded net interest margin of 3.44%, despite a slight decline in total deposits and an increase in nonperforming assets.
Market Outlook: The bank anticipates low single-digit loan growth for the year, focusing on maintaining customer relationships to enhance deposit growth while managing operating expenses through investments in technology and personnel.
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Analyst Views on CPF
Wall Street analysts forecast CPF stock price to rise
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 33.940
Low
34.00
Averages
35.50
High
37.00
Current: 33.940
Low
34.00
Averages
35.50
High
37.00
About CPF
Central Pacific Financial Corp. is the bank holding company of Central Pacific Bank (the Bank). The Bank is engaged in offering traditional deposit and lending products and services to consumer and business customers, such as accepting demand, money market, savings and time deposits, originating loans, including commercial loans, construction loans, commercial real estate loans, residential mortgage loans, and consumer loans and fiduciary and investment management services. Its investment securities portfolio includes mortgage-backed securities (MBS), other debt securities and equity securities. Its MBS portfolio comprises residential MBS issued by United States government entities and agencies. It offers wealth management products and services, such as non-deposit investment products, annuities, investment management, asset custody and general consultation and planning services. It has approximately 27 bank branches and 55 ATMs located throughout the State of Hawaii.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Forward Yield: The forward yield of 3.66% not only provides shareholders with a stable cash return but also has the potential to attract more income-seeking investors, thereby strengthening market competitiveness.
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- Improved Efficiency Ratio: The efficiency ratio improved to 59.88%, down from 62.84% in the previous quarter, indicating enhanced operational efficiency that contributes to overall profitability.
See More
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- Interest Income Increase: The net interest income for Q4 reached $62.1 million, up 1.3% quarter-over-quarter and 11.3% year-over-year, primarily driven by a decrease in interest expenses, further enhancing the company's profitability.
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See More
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- Return on Assets Improvement: The return on average assets (ROA) rose to 1.25% in Q4, up from 1.01% in the prior quarter, reflecting effective asset management and profitability strategies.
- Shareholder Return Initiatives: The Board of Directors authorized a new $55 million share repurchase program for 2026 and increased the quarterly cash dividend by 3.6% to $0.29 per share, demonstrating a commitment to shareholder returns and confidence in future growth.
- Efficiency Ratio Enhancement: The efficiency ratio improved to 59.88% in Q4 2025, down from 62.84% in the previous quarter, indicating positive progress in cost control and operational efficiency enhancements.
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Finance Conferences in Florida: Wall Street executives are gathering in southeast Florida for a series of finance industry conferences this week.
Activist Hedge Fund's Role: A small activist hedge fund known for advocating changes at U.S. banks is becoming more assertive during this event.
See More
HoldCo Asset Management Unveils New Presentation at UBS Conference
- Asset Management Scale: HoldCo Asset Management manages approximately $2.8 billion in regulatory assets, showcasing its strength and influence in the financial services sector, indicating its significant position within the industry.
- Activist Shareholder Campaigns: The firm has launched five public activist campaigns targeting banks such as KeyCorp and Comerica, demonstrating its proactive role in driving corporate governance and management changes, which is expected to impact upcoming shareholder meetings.
- Soft Activism Engagements: Additionally, HoldCo has engaged in behind-the-scenes 'soft activism' dialogues with four banks, reflecting its diversified strategy to promote industry change through constructive discussions aimed at achieving substantive improvements.
- Management Changes: Co-founders of HoldCo noted that over the past six months, management teams and boards have made significant changes due to their initiatives, indicating the effectiveness of their shareholder activism and potentially reducing the need for future proxy contests, thereby enhancing investor confidence.
See More
Central Pacific Financial Announces Dividend Increase
- Quarterly Dividend Increase: Central Pacific Financial declares a quarterly dividend of $0.29 per share, reflecting a 3.6% increase from the previous $0.28, indicating sustained profitability and enhancing investor confidence.
- Forward Yield: The forward yield of 3.66% not only provides shareholders with a stable cash return but also has the potential to attract more income-seeking investors, thereby strengthening market competitiveness.
- Earnings Beat Expectations: The company reports a non-GAAP EPS of $0.85, beating expectations by $0.12, with revenue of $76.29 million exceeding forecasts by $0.86 million, showcasing strong market performance and promising growth potential.
- Shareholder Return Plan: The dividend will be payable on March 16, with a record date of February 27 and an ex-dividend date also on February 27, ensuring timely returns for shareholders and further solidifying the relationship between the company and its investors.
See More
Central Pacific Financial Q4 Earnings Beat Expectations
- Earnings Beat: Central Pacific Financial reported a Q4 Non-GAAP EPS of $0.85, exceeding expectations by $0.12, indicating strong profitability growth.
- Significant Revenue Growth: The company achieved revenue of $76.29 million in Q4, a 30.7% year-over-year increase, surpassing market expectations by $0.86 million, reflecting robust business expansion and demand.
- Increased Shareholder Returns: The Board authorized a new $55 million share repurchase program and raised the quarterly cash dividend by 3.6% to $0.29 per share, demonstrating confidence in future cash flows and commitment to shareholders.
- Improved Efficiency Ratio: The efficiency ratio improved to 59.88%, down from 62.84% in the previous quarter, indicating enhanced operational efficiency that contributes to overall profitability.
See More
Central Pacific Financial Reports Strong Q4 2025 Earnings
- Net Income Growth: Central Pacific Financial reported a net income of $22.9 million for Q4 2025, translating to an EPS of $0.85, which represents a 23.5% increase from the previous quarter, reflecting successful financial management and boosting shareholder confidence.
- Interest Income Increase: The net interest income for Q4 reached $62.1 million, up 1.3% quarter-over-quarter and 11.3% year-over-year, primarily driven by a decrease in interest expenses, further enhancing the company's profitability.
- Asset Quality Improvement: Nonperforming assets totaled $14.4 million, or 0.19% of total assets, slightly up from 0.15% a year ago, indicating stable asset quality and effective risk management practices within the company.
- Increased Shareholder Returns: The company repurchased 529,613 shares of common stock at a total cost of $16.3 million in 2025 and declared a quarterly cash dividend of $0.29, a 3.6% increase from the previous quarter, demonstrating a strong commitment to returning value to shareholders.
See More
Central Pacific Financial Corp. Reports Strong Q4 and Full Year 2025 Results
- Net Income Growth: Central Pacific Financial Corp. reported a net income of $22.9 million for Q4 2025, translating to $0.85 per diluted share, a significant increase from $18.6 million and $0.69 in the previous quarter, indicating sustained improvement in profitability.
- Return on Assets Improvement: The return on average assets (ROA) rose to 1.25% in Q4, up from 1.01% in the prior quarter, reflecting effective asset management and profitability strategies.
- Shareholder Return Initiatives: The Board of Directors authorized a new $55 million share repurchase program for 2026 and increased the quarterly cash dividend by 3.6% to $0.29 per share, demonstrating a commitment to shareholder returns and confidence in future growth.
- Efficiency Ratio Enhancement: The efficiency ratio improved to 59.88% in Q4 2025, down from 62.84% in the previous quarter, indicating positive progress in cost control and operational efficiency enhancements.
See More
