Q2 2026 Central Pacific Financial Corp Earnings Call Transcript
Key Points
- Central Pacific Financial Corp (CPF) reported a strong second-quarter with net income of $20.8 million, marking a 19% increase from the previous year.
- The company maintained a stable core funding base and expanded its net interest margin by 4 basis points to 3.57%.
- CPF was recognized as the highest-ranked company in Hawaii on America's Best Companies 2026 list by TIME Magazine and as the Best-In-State Bank in Hawaii by Forbes for the third consecutive year.
- The company continues to invest in talent and technology, including automation and data, to support future operating efficiencies.
- Hawaii's economy remains resilient with low unemployment at 2.5% and steady visitor industry, contributing to CPF's stable operating environment.
- Loan growth was relatively flat in the second-quarter, impacted by several loan closings moving to the third-quarter and expected CRE loan payoffs.
- Criticized loans increased to 234 basis points of total loans, driven by a small number of Hawaii-based credits.
- Total other operating expenses increased by $2.5 million, primarily due to higher salaries and employee benefits.
- The company expects its other operating expenses to grow by 2.5% to 3.5% for the full year, which could impact profitability.
- CPF's balance sheet sensitivity is relatively neutral to slightly asset-sensitive, limiting the potential benefits from a Fed rate hike.
Thank you. Good afternoon, ladies, and gentlemen. Thank you for standing by and welcome to the Central Pacific Financial Corp. second-quarter 2026 earnings call.
(Operator Instructions)
This call is being recorded and will be available for replay shortly after its completion on the company's website at www.cpb.bank. I'd like to turn the call over to the speaker, to Mr. Jayrald Rabago, Senior Strategic Financial Officer.
Thank you, Erica, and thank you all for joining us today as we review Central Pacific Financial Corp.'s financial results for the second-quarter of 2026.
Joining me this morning are Arnold Martines, Chairman, President, and Chief Executive Officer; David Morimoto, Vice Chair and Chief Operating Officer; Ralph Mesick, Vice Chair; and Dayna Matsumoto, Executive Vice President and Chief Financial Officer.
Before we begin, I would like to remind everyone that a copy of
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