Central Pacific Financial (NYSE:CPF) reported a sharp rise in fourth-quarter profitability, capping a record fiscal year for the Hawaii-based lender.
The parent company of Central Pacific Bank posted net income of $22.9 million, or $0.85 per share, more than doubling the $11.3 million reported in the same period a year ago as it successfully navigated a shifting interest rate environment.
The bank’s performance was bolstered by a widening net interest margin (NIM), which climbed to 3.56% in the fourth quarter, up 7 basis points from the prior period.
For the full year 2025, Central Pacific earned $77.5 million, or $2.86 per share, a substantial jump from the $53.4 million reported in 2024.
The results were driven by strong loan yields and a disciplined approach to deposit costs that allowed the bank to maintain its competitive edge in the island market.
The lender also highlighted a major improvement in operational efficiency, with its efficiency ratio dropping to 59.88% in the final quarter.
This leaner structure helped propel the return on average equity (ROE) to 15.41%, compared to roughly 8.4% in the year-ago quarter.
Flush with capital, Central Pacific is aggressively returning value to its investors.
The Board of Directors authorized a new $55 million share repurchase program for 2026, replacing the previous plan.
Additionally, the bank raised its quarterly cash dividend by 3.6% to $0.29 per share, payable on March 16.
During the fourth quarter alone, the company spent $16.3 million to buy back over half a million shares at an average price of $30.82.