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PARENT COMPANY AND REGULATORY RESTRICTIONS
 12 Months Ended
Dec. 31, 2025
Condensed Financial Information Disclosure [Abstract]  
PARENT COMPANY AND REGULATORY RESTRICTIONS
23. PARENT COMPANY AND REGULATORY RESTRICTIONS
 
The retained earnings of the parent company, Central Pacific Financial Corp., included $250.5 million and $288.4 million of equity in undistributed losses of Central Pacific Bank as of December 31, 2025 and 2024.

The Company and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can result in regulatory action.

Prompt corrective action regulations provide five classifications: well-capitalized, adequately capitalized, under-capitalized, significantly under-capitalized, and critically under-capitalized. These classifications do not represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If under-capitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The Bank was categorized as "well-capitalized" and maintained the required capital conservation buffer under the regulatory framework for prompt corrective action as of December 31, 2025 and 2024. Management is not aware of any conditions or events since those dates that would have changed the institution's capital category.
The following table presents the actual and required capital and capital ratios for the Company and the Bank, along with the minimum capital adequacy requirements applicable generally to all financial institutions as of the dates indicated.

ActualMinimum required for
capital adequacy purposes		Minimum required to
be well-capitalized
(Dollars in thousands)AmountRatioAmount
Ratio (1)
AmountRatio
Central Pacific Financial Corp.      
As of December 31, 2025      
Tier 1 capital to avg. assets (leverage ratio)$729,850 9.8 %$297,858 4.0 %N/AN/A
Common equity tier 1 ("CET1") capital to risk-weighted assets679,850 12.7 241,149 4.5 N/AN/A
Tier 1 capital to risk-weighted assets729,850 13.6 321,531 6.0 N/AN/A
Total capital to risk-weighted assets794,911 14.8 428,708 8.0 N/AN/A
As of December 31, 2024      
Tier 1 capital to avg. assets (leverage ratio)704,045 9.3 301,967 4.0 N/AN/A
CET1 capital to risk-weighted assets654,045 12.3 239,366 4.5 N/AN/A
Tier 1 capital to risk-weighted assets704,045 13.2 319,155 6.0 N/AN/A
Total capital to risk-weighted assets820,796 15.4 425,540 8.0 N/AN/A
Central Pacific Bank      
As of December 31, 2025      
Tier 1 capital to avg. assets (leverage ratio)$720,980 9.7 %$297,503 4.0 %$371,879 5.0 %
CET1 capital to risk-weighted assets720,980 13.5 240,630 4.5 347,577 6.5 
Tier 1 capital to risk-weighted assets720,980 13.5 320,840 6.0 427,787 8.0 
Total capital to risk-weighted assets786,041 14.7 427,787 8.0 534,734 10.0 
As of December 31, 2024      
Tier 1 capital to avg. assets (leverage ratio)731,155 9.7 301,410 4.0 376,763 5.0 
CET1 capital to risk-weighted assets731,155 13.8 238,814 4.5 344,953 6.5 
Tier 1 capital to risk-weighted assets731,155 13.8 318,419 6.0 424,558 8.0 
Total capital to risk-weighted assets792,906 14.9 424,558 8.0 530,698 10.0 
(1) Under the Basel III Capital Rules, the Company and the Bank must also maintain a 2.5% Capital Conservation Buffer ("CCB") to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. The CCB is calculated as a ratio of CET1 capital to risk-weighted assets, and effectively increases the required minimum risk-based capital ratios.
Condensed financial statements of the parent company are as follows:

CENTRAL PACIFIC FINANCIAL CORP.
CONDENSED BALANCE SHEETS

 December 31,
(Dollars in thousands)20252024
Assets  
Cash and due from financial institutions$5,528 $23,021 
Investment in subsidiary bank633,711 615,441 
Other assets12,137 13,425 
Total assets$651,376 $651,887 
Liabilities and Equity  
Long-term debt$51,547 $106,345 
Other liabilities7,248 7,157 
Total liabilities58,795 113,502 
Equity:  
Preferred stock, no par value, authorized 1,000,000 shares; issued and outstanding: none at December 31, 2025 and 2024
— — 
Common stock, no par value, authorized 185,000,000 shares; issued and outstanding: 26,374,967 and 27,065,570 shares at December 31, 2025 and 2024, respectively
381,158 404,494 
Additional paid-in capital107,308 105,054 
Retained earnings191,383 143,259 
Accumulated other comprehensive loss(87,268)(114,422)
Total equity592,581 538,385 
Total liabilities and equity$651,376 $651,887 
CENTRAL PACIFIC FINANCIAL CORP.
CONDENSED STATEMENTS OF INCOME

 Year Ended December 31,
(Dollars in thousands)202520242023
Income:   
Dividends from subsidiary bank$94,359 $38,183 $42,540 
Interest income:   
Interest income from subsidiary bank3 3 3 
Other income118 224 122 
Total income94,480 38,410 42,665 
Expense:   
Interest expense on long-term debt5,883 6,883 6,762 
Other expenses4,878 10,221 3,250 
Total expenses10,761 17,104 10,012 
Income before income taxes and equity in undistributed income of subsidiaries83,719 21,306 32,653 
Income tax benefit(2,645)(4,440)(2,620)
Income before equity in undistributed income of subsidiaries86,364 25,746 35,273 
Equity in undistributed income of subsidiary bank(8,884)27,666 23,396 
Net income$77,480 $53,412 $58,669 
CENTRAL PACIFIC FINANCIAL CORP.
CONDENSED STATEMENTS OF CASH FLOWS

 Year Ended December 31,
(Dollars in thousands)202520242023
Cash flows from operating activities:   
Net income$77,480 $53,412 $58,669 
Adjustments to reconcile net income to net cash provided by operating activities:   
Deferred income tax expense (benefit)372 155 32 
Equity in undistributed income of subsidiary bank8,884 (27,666)(23,396)
Share-based compensation expense2,254 2,072 1,636 
Net change in other assets and liabilities595 1,897 (1,543)
Net cash provided by operating activities89,585 29,870 35,398 
Cash flows from investing activities:   
Distributions from unconsolidated entities864 — 495 
Contributions to unconsolidated entities(250)180 — 
Net cash provided by investing activities614 180 495 
Cash flows from financing activities:   
Repayments of long-term debt(55,000)— — 
Repurchases of common stock(23,336)(945)(2,632)
Cash dividends paid on common stock(29,356)(28,143)(28,117)
Net cash used in financing activities(107,692)(29,088)(30,749)
Net increase (decrease) in cash and cash equivalents(17,493)962 5,144 
Cash and cash equivalents at beginning of year23,021 22,059 16,915 
Cash and cash equivalents at end of year$5,528 $23,021 $22,059