EQUITY

12 Months Ended

Dec. 31, 2025

Equity [Abstract]

EQUITY

11. EQUITY

As a Hawaii state-chartered bank, Central Pacific Bank may only pay dividends to the extent it has Statutory Retained Earnings, as defined under Hawaii banking law, which differs from GAAP retained earnings. As of December 31, 2025 and 2024, the Bank had Statutory Retained Earnings of $234.7 million and $196.8 million, respectively.

Dividends are subject to the discretion of the Board of Directors and may be restricted by federal and Hawaii state laws, regulatory guidance from the FRB, and covenants set forth in various agreements the Company is a party to, including covenants set forth in our junior subordinated debentures and subordinated notes. There is no assurance that dividends will continue at the current rate, or at all.

The Company repurchases shares of its common stock when it believes such repurchases are in the best interests of the Company.

In January 2024, the Company’s Board of Directors authorized a new share repurchase program (the "2024 Repurchase Plan"), allowing.the Company to repurchase up to $20.0 million of its common stock in open market or privately negotiated transactions. The 2024 Repurchase Plan replaced and superseded in its entirety the share repurchase plan previously approved by the Board of Directors, which had $23.4 million in remaining repurchase authority. The Company's 2024 Repurchase Plan was subject to a one-year expiration.

In the year ended December 31, 2024, 49,960 shares of common stock, at a cost of $0.9 million, were repurchased under the Company's share repurchase programs.

In January 2025, the Company’s Board of Directors authorized a new share repurchase program (the "2025 Repurchase Plan"), allowing,the Company to repurchase up to $30.0 million of its common stock in open market or privately negotiated transactions. The 2025 Repurchase Plan replaced and superseded in its entirety the 2024 Repurchase Plan, which had $19.1 million in remaining repurchase authority.

In the year ended December 31, 2025, a total of 788,261 shares of common stock, at a cost of $23.3 million, were repurchased under the Company's share repurchase program. A total of $6.7 million remained available for repurchase under the Company's 2025 Repurchase Plan at December 31, 2025.