Central Pacific Financial Q4 profit rises on lower loan-loss provisions

Overview

• Hawaii-based bank holding company's Q4 net income rose to $22.9 mln, EPS at $0.85

• Net interest margin for Q4 improved to 3.56%

• Company authorized $55 mln share repurchase program for 2026

• Increased quarterly cash dividend by 3.6% to $0.29 per share

Outlook

• Central Pacific Financial authorized a $55 mln share repurchase program for 2026

Result Drivers

• NET INTEREST MARGIN - Increase in net interest margin driven by decrease in average rates paid on interest-bearing deposits

• CREDIT LOSS PROVISION - Decrease in provision for credit losses due to decline in loan balances and improved macro-economic forecast

• OTHER OPERATING INCOME - Increase largely driven by income from bank-owned life insurance related to a death benefit

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Central Pacific Financial Corp is $35.50, about 12% above its January 27 closing price of $31.69

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw4Fl2mla

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